Larry Kudlow says that the economy is about to really take off.

Tom Daschle is "very disappointed."

From his lips to God's ear.

No offense Rand, but I lack faith in the great Kudlow. I mean even a stopped clock is right twice a day, but Kudlow's got his work cut out. First, the GDP growth of the last couple of years has been pretty much due to home buyers, increased government spending, and maybe a wee bit of statistical creativity. Home buyers can't be counted on for much longer particularly since the interest rates are apparently going to rise in the next six months or so. The US is carrying a government deficit between 500 and 600 billion USD this year. We're doing ok in Afghanistan and Iraq, but we're not out of the woods on those places and the occupation is a bit pricy.

There's the great hidden liabilities of the US economy. There's a good chance that they won't nail us this time, ie, maybe Kudlow is lucky this time, but when are we going to control Social Security or Medicare. How are we going to deal with the corporate pension funds? Will we need to bail out Fannie Mae and Freddie Mac?

Now Kudlow tells us to expect fairly high economic growth because we have a short term rise in the stock market, and a recent rise in commodity prices across the board. But should we spin it as start of yet unseen large economic growth and "reflation" rather than "inflation" with little economic growth? Growth in earnings is a good sign, but if the companies are so optimistic about their future, then why is corporate insider selling dominating buying?