Greenspan Bullish: Uh Oh

This could be really, really bad.  The man who warned against stocks with nearly four unbelievable full years of bull bull BULL lying ahead has perhaps rung the bell at the top (LINK).

Greenspan: No 'Irrational Exuberance' in Stocks Now

That's a bad enough headline to stop here.  But let's not...

Greenspan said in a " Squawk Box " interview that stocks by historical standards are "significantly undervalued" even considering the recent moves higher. He added that the payroll tax increase didn't dent spending because of rising asset prices.

OK.  Meanwhile, at end-January prices, Jeremy Grantham's model had as its central tendency that US stocks were priced to slightly lag anticipated 2.2% annual price inflation every year (on average) for the next seven years.  But that was at lower prices.  

Grantham has a better track record than the Maestro.  But of course prior success doesn't guarantee future results, etc.  So we shall see.

Larry Kudlow Gets It Right: Monetary Policy Over Easy Needs to Come Off the Griddle

King Dollar claptrap aside, I actually just found a Larry Kudlow article which I like! Will wonders never cease:
Obamacon Doves vs. Hard-Money Heartland Hawks. Here's a nice thought:

My own view is that we need a dose of what I call cowboy monetarism. By that, I mean the Fed should surprise Wall Street traders with unexpected policy restraint in order to keep them from taking excessive risks in their financial dealings. Like the cowboys of the Old West, who would act in their own defense at a moment's notice, the Fed should not be afraid to pull the trigger on some small restraining moves now to prevent new financial bubbles and an outbreak of inflation down the road.

Not that cowboys are/were really unpredictable, but the thought is good. The old (younger) Greenspan of the 1990's really shook them up with large interest rate moves down and up following the 1990 recession. Gentle Ben can do it again.

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