Larry Kudlow sees upturn

"Meanwhile, important forward-looking economic indicators suggest we have seen the bottom — believe it or not.

First and foremost, stocks bottomed in late November and are about 15 percent higher today. Raw commodity indexes have bottomed. 10-year Treasury rates have bottomed and yields today are about 50 basis points higher. Oil prices have bottomed. And the dollar bottomed many months ago. Plus, the Fed’s monetary-base expansion has produced about a $550 billion increase in the M2 money supply, which could start raising the economy as early as this spring.

If the turnover rate of money — that is, velocity — moves back to its 10-year average, then we could all be surprised by a substantial economic rebound starting this spring or summer.

I’m not even gonna mention the goofy stimulus package in Congress, because it’s not gonna stimulate much of anything except a zillion Democratic political-interest groups. This package is completely porked up with massive social spending and other political targets — none of which will create any jobs or growth. It’s just a massive resource transfer."

http://corner.nationalreview.com/