Kudlow schools the White House on the necessity of saving and investment, while the administration prefers to hand out money

The great flaw in the thinking of the Democrats is that they are ignorant of the economic power of saving and investment. Saving is a good thing. Stocks, bonds, bank deposits, money market funds, commercial paper, venture capital, private equity, real estate partnerships -- all that saving is channeled into business investment. And whether that capital goes into new startups or small businesses or large firms, it finances the kind of new investment in plants and equipment and software and buildings that ultimately creates jobs and family incomes. And that, in turn, spurs consumption.

But pulling out just one dollar from the private sector and rechanneling it through the government as a transfer to someone else creates nothing. At best, it's a safety net. At worst, it may damage private-business activity and actually reduce employment.

Without saving, there can be no investment. And without investment, there can be no enhanced productivity, which is the ultimate source of long-term prosperity

Kudlow sees signs of V-shaped recovery

Sometimes you have to take out your political lenses and look at the actual statistics to get a true picture of the health of the American economy. Right now, those statistics are saying a modest cyclical rebound following a very deep downturn could actually be turning into a full-fledged, V-shaped, recovery boom between now and year-end.

I'm aiming this thought especially at many of my conservative friends who seem to be trashing the improving economic outlook -- largely, it would appear, to discredit the Obama administration.

Don't do it folks. It's a mistake. The numbers are the numbers. And prosperity is a welcome development for a nation that has suffered mightily.

Obama crams down some contracts, not others

"...has anybody asked Team Obama why it is more than willing to break mortgage contracts with a bankruptcy-judge cram-down, but won't cram-down compensation agreements for AIG, despite the fact that the U.S. government owns the company? Kind of odd, don't you think?

The Wall Street Journal editors get it right when they ask: Who's in charge and what's the game plan? The whole AIG story is an outrage.

What's more, AIG is acting as a conduit for taxpayer money that is being sent to dozens of derivative counterparties, including foreign banks and American banks like Goldman Sachs. If we're going to bail out all these other firms, why not bail them out in full taxpayer view? Why is the money being laundered furtively through AIG? And where exactly is the end game for AIG? How are the taxpayers going to be repaid?"

http://www.realclearpolitics.com/articles/2009/03/the_aig_outrage.html