skin in the game for the still gives me about a 13 1/2 times multiple on the stock market, jim, which is pretty attractive. the yield would be 7%. i mean, heck, treasury bonds yield 3%. corporate bonds yield 570. therefore, aren't stocks still attractive? well, larry, yes. if things get better. but the world economy is not getting better.especially in america. the only people that are better off in america are the people that are getting the money that the government is throwing out the window. the overall situation in the u.s. is not better, for the rest of us the debt is staggering. we've got serious problems facing us. how about a nice debt ceiling limitation deal?let's say $400 -- $400 billion, $500 billion ceiling. isn't that debt ceiling stuff overrated? i'm taking that out of the stock market equation. larry, $400 billion, $500 billion spending cut is nothing.our deficit is a trillion and a half dollars. that's not going to solve our problems. the debt still goes up by $1 trillion a year. we've got to start someplace. all i'm looking for is a little bit of hope here. a little bit of optimism this evening. by all means. but getting deeper in debt by $1 trillion a year is not optimism as far as i'm concerned. it ain't perfect. but there's talk about tax reform. we're going to get to that later in the show. let me ask you about another thing. m-2, a good measure of the money supply, is suddenly growing the last two or three months at about 8% a year, and cni loans, business loans are suddenly growing at 11% a year over the past three months. is it possible, jimmy, that all that money put into the banking system might now come out on theother side finally, more loans, more money supply, maybe betteractivity? is that possible? anything is possible. what you're saying is it's just going to sit in the bank treasury and keep it in the vaults and do nothing with it? if that's the case, the economy's not going to get much stronger. maybe it's circulating in the economy, finally at long last. larry, if the m-2 numbers are going up, you better buy some silver. you better buy some rice. you better buy some real goods. because inflation's going to continue to get worse.everybody watching your show, larry, knows that there's inflation in the land. protect yourself. what about china, what about india, what about brazil? last round, jim rogers. well, they're all threecutting back and deservedly so. they're cutting interest rates.they're trying to do something about inflation. america says there is no inflation. how can you possibly believe those guys in washington when they say there's no inflation. and everybody else in the world knows there is. jim rogers, hang on a second. we finally got bob dole out of the hurricane. he's the vice chair forfundamental equities. is bob dole really here? where is he? on the phone. bob dole, i'll take you any way you can get you, in person, on the phone, by snail mail, by whatever source. i'm trying to make the case that the correction is coming to an end. i'm trading my bear stripes for a more positive market outlook. what are you thinking, bob, am i in the game here or not? i think maybe a little early in terms of time, larry. but in price i think you're not far away.i think we need some resolution to how much the slowdown in theeconomy is a temporary factor. japan disruption, china slowing,and how much is related to an actual slowdown in final demand. i think it's more of the former and we will have a bigup. it will make another jobs report or two. bob, what's going to cause the economy to pick up in a quarter or two? we're going to have autoproduction once the japanese supply line and production issues slow down, that's going to add as much as a point, some saying a point and a half to the gdp, as that comes to an abrupt halt. so we will get some improvement in the economy. we'll not get a robust economy, we'll go back to kind of where we were. two and a half, three if we're fortunate. not 1.8 like in the first quarter. robert, i think it's a jobless recovery. i'm not optimistic about that. in terms of what will drive the economy, or i'm sorry, what will drive the stock market for it, bob, what about pristine balance sheets, phenomenal cash flows that companies have, and even if i take 5%, 6%, 7%, i go from $100 a share down to $93 a share, i still have a fairlycheap multiple in the stock market of about 13 1/2 times earnings.why isn't that a good investment really across the board? i think valuation absolutely gives you a sense of risk reward. i'm not sure it tells you when to buy or sell stocks. i agree, we just need someconfidence, so corporations put some of that cash to work. as you know, corporate america generated a half trillion dollars of surplus free cash flow last year, and that's sitting on the balance sheets.so if we can unleash some of that, some confidence, we will have increases in dividends, shares, buybacks. i think that will will take a little more time. would you invest all your money in jimmy rogers'commodities play? he's been selling me commodities tonight.would you invest all your money there? look, global growth is stillhappening. and i think commodities are the beneficiary of that.again, like equities, i think it's going to take a little more time before people have confidence to go back in. but we've not seen a high for commodities in this cycle in my view. see, he agrees with you, jim rogers. i just want to poke a little bit at your thesis. what if the dollar goes up rather than down, james? larry, even if the dollar goes up, we have shortages of everything developing. larry, the inventories of food are the lowest in recorded history. the average age of farmers in america is 58 years old, larry. in ten years they're going to be 68 and not producing very much. we have serious shortages facing us in agriculture. go home and buy some rice. i'm going to buy some rice. i'm going to buy some oil.no, i'm not going to buy oil. we're producing more oil and gasthrough shale more than ever before. bob doll sort of endures mycorrection is nearly over. we'll see. thanks to both of you. coming up on kudlow, good
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