Election's Effect on Wall Street

" Well if voters. Really are rejecting government spending is that something Wall Street will cheer Ron let's get some analysis of that for actual Merck of Merck and investments -- what do you think."

" When the good one good news that's coming out of the the elections is that it seems pretty clear that next here we might get some gridlock in congress and that's always good because. When you have gridlocked as less spending possible -- the bigger issue however is that the only thing that politicians debate about is the discretionary spending part. I'm Dave do real problem with is with the entitlement payments Social Security Medicare Medicaid and obviously if you reform healthcare double that sit on top of it. Which means that struck Chile we have deficits that we can't deal with right now that's what we see in the dollar that's by gold -- so much and and I don't think Dade usage of that and be addressed any time soon inflation. Is the easiest way out because then you'd just promise people something without actually paying it because the purchasing power of the dollars that you're promising to people is going to be eroded."

" Well even though the Fed kept interest rates the same practically zero free money. They did throw a bone to inflation hawks by saying that they finished whether treasury repurchase of 300 billion dollars they're cutting back on their purchases of Fannie and Freddie bonds. So they're trying to take convinced that there's some kind of fiscal conservative as in the -- I I take -- you don't buy."

" Now that they're trying to buy time -- the inflation as a function of inflationary expectations and those are driven by the credibility of the Federal Reserve. The only thing the Federal Reserve has said in its in its statement is that we look even -- it and interest rates low as long as you guys trust us. I'm when we see inflation pop -- and indicate -- sad reminder when we can't do anything about it anymore. Then we'll stop worrying about it and that's precisely what they will do and -- assessment because they want inflation they want home prices to go up. If there what could tighten now if they if they made their conforming loans go up to 26% on -- yet. That was crippled housing markets they warned inflation into the system they want home prices to go higher up. They want the dollar to below what could boost the economy all things that -- strictly against the -- that don't -- but that's what they want but they're never going to say it out right. -- America always good to be with you today thank estimates are really my opinion thanks axle let's bring."