“Speaking of Goldilocks and fairytales, the biggest fairytale of all that was being told early in the year is that Americans are using their homes like ATMs. And when home prices flatten, or start declining, consumer spending is gonna go in the tank.
And I should remind you that there were some economists on your show earlier in the year who swore up and down we’d be in recession by the second quarter. What happened? We had 3.8 percent GDP growth in the second quarter, 3.9 in the third quarter. By the way, that’s gonna get revised up to something like five percent. And today you see evidence that the American consumer is not dead.
Larry, you don’t bet against the U.S. consumer. It’s very hard to kill an economy that’s based in services, because demand for services just grows steadily. And that’s why I’m really doubtful about this bear case on the economy.” -Fritz Meyer, senior market strategist at AIM Investments, on CNBC’s Kudlow & Company last night.