Passesdoing better today session. All major averages gaining and not only that, but building on the gains out of the gate this morning. Similar to what we saw yesterday where stocks had a choppy morning. Then they were up and stayed up at roughly the same level. Take a look. Ive looked at the s p 500 over the past three days. Gaine looking at a 4. 73 over that time. This is the first since december. We have not been having when he as far as this year. When i talk about the groups doing better today, we are talking about cyclical groups, economically sensitive groups. ,e have got materials particularly industrials and tech. That is the theme we have been seeing over the past several sections. Citigroup, bank of america, jp morgan. You could have taken any of the charts and they would have looked very similar to what were seeing today. I am looking at priceline, a rocket today. What is going on . Julie priceline is the biggest contributor to gains, up by 12 . The company came with earnin
of that industry and of the solvency of much of the american middle class, and the consequences, the effects that we see in the federal budget are largely a consequence, no the a cause, of that phenomenon. tax revenues fall, unemployment insurance payments go up. other kinds of stabilizing payments go up. we are much better off, actually, for having a large federal government, federal budget that can stabilize the economy in this situation than we would be if we didn t have it. we didn t have it in the 1930s and the our output fell by about a third. the overall decline was much less this time around and that was because incomes were substantially stiblized by the fiscal actions of the government. wow. we ve got a lot of food for thought there, doctor. you ve defined the crux of the contrast between the two sides of this dais. and i realize i ve run out of time. thank you, chairman, very much. i yield back. thank you. i now recognized gentleman from arizona mr. schweikar
and i think that s good. well, could current fed action and even dr. galbraith s opinion, could the current fed balance sheet, the mechanics there, could it also be leading to a bond bubble right now? if we start to move towards more normalized interest rates, have we created so much paper that ma may move rates when we start to move? i don t think is has to. i think the fed can get its balance sheet down quickly. it s always much easier for the fed to be less accommodative than more. and i m not i m not worried about this astonishing balance sheet. it s very big, but right now the reason to worry would be to that we had general inflation, and we don t. dr. galbraith? i think it would be very hard for you may have to hit your mike. i think it would be very hard for the federal reserve to raise interest rates rapidly, and i don t think it s likely to do so. is there a situation one way to interpret your question, ask whether there is a situation in which th