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Here’s an outline of what we will be talking about on Cavuto on Business this morning @ 10:30am EST:

Question: Would hiking rates sooner be better for market and economy than a bunch of 1/4 point hikes spread out over the next year? Why?

My Answer: The Fed is trying to make up for “bungling” the rate tightening cycle of 1999-2000. Last time, they failed to communicate their intentions clearly: they raised from a neutral bias, they cut rates from a tightening bias, they went a 1/4 point one meeting, a 1/2 the next – it was just a mess. And, it roiled the markets, exacerbating the 2000 crash.

This time, the Fed very specifically telegraphed their intentions: Sure, they could have – and probably should have — hiked rates sooner.

Greenspan is a wiley politician — he’s very conscious of the last time there was a President named Bush in the White House: He cut rates too slowly, and then got blamed for Bush (41) Senior’s defeat — the last thing he wants to do in this election year is get blamed for the defeat of another President named Bush.

So yes, he probably erred on the side of waiting too long; He should have done the first 1/4 point raise two meetings ago . . .

ON THE SPOT: Name a trend you think will have an impact on the markets or economy going forward

My Prediction: In the 4th Q of this year, Honda will introduce the 2005 Accord hybrid — the first full size, 5 passenger hybrid to hit the US market.

I’m a muscle car fan, and I look at hybrids like the Toyota Prius or even the Honda Impulse as small niche toys for “Greens” — not real transportation.

This car changes all that, and Honda’s approach is brilliant: They are positioning this mainstream 5 passenger sedan hybrid as a premium option –like leather seats. But its not about good gas mileage (31 city, and 38-40 highway) it actually has MORE HORSEPOWER and BETTER PERFORMANCE than the regular Accord V-6.

Honda has figured out how to mass produced this technology and make it invisible — no trunk full of batteries or loss of usable space.

While Hydrogen is still decades away, this is going “mainstream” — Detroit is 2 years behind Honda, and this will drag them kicking and screaming into hybrid technology.

AND, anything that lessens our dependence on Middle Eastern oil is good for national security.

Toyota’s Volta — a concept sports car with 400 HP, 0-60 in 4 seconds — is something else we may see down the road. Hybrid technology has ben banned from F1 racing.

Category: Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Cavuto on Business”

  1. Bill says:

    Finally ….a face to place with the blog !! Saw you today on Cavuto . No, you didn’t get a chance to get much in , you were right . All the hollering those people do at each other !! Man !! But glad to see who I am reading . Enjoy Chi-town. Happy 4th !! Bill K.

  2. M1EK says:

    Honda INSIGHT.

    And I’m surprised to see you lump the two together. Pretty much everybody (even the greenatics) puts the Insight in the “green toy” category with the original Prius, while the Civic Hybrid and new Prius are a lot more like regular cars. (Our ’04 Prius accelerates tolerably well even when compared to the Eclipse GS-T I replaced it with(!))

  3. BILL ARNOLD says:

    This might not be the correct place to respond to todays guest, but it was not on the screen long enough. Neil, why do you give people like Professor Branzhaf time on your show. He is unashamedly elitist. He also never answered your questions, but you let him slide. It was pure DECEIT when he said the salads are worse than a doubel chesseburger. You asked him which salads. His answer: “all those salads..when you order one of those salads WITH AN ORDER OF FRIES you might as well be eating a double cheeseburger. That was his answer and you did not call him on it. I am of above average intelligence, but I, like the other Fox employee’s he interviewed, have no idea how much fat is in anything McDonald offers. That was his reasoning, but GUESS WHAT, that’s because I don’t care! On the other hand my wife, when she is dieting, will say “Yes, we can go to McDonalds, but all I can have is ‘such and such’. It has only 4 grams of fat, etc. My point is obvious and his point is too: He thinks everyone needs taking care of. I believ it makes people like him feel important, but ir sickens me. He has already ruined McDonalds. I grew up in the 70′s and the Mcd. french fry’s were wonderful, then.
    Thanks for nothing Professor. And Neil, next time PLEASE DON’T SOFTBALL THESE IDIOTS.
    Bill Arnold

  4. BILL ARNOLD says:

    This might not be the correct place to respond to todays guest, but it was not on the screen long enough. Neil, why do you give people like Professor Branzhaf time on your show. He is unashamedly elitist. He also never answered your questions, but you let him slide. It was pure DECEIT when he said the salads are worse than a doubel chesseburger. You asked him which salads. His answer: “all those salads..when you order one of those salads WITH AN ORDER OF FRIES you might as well be eating a double cheeseburger. That was his answer and you did not call him on it. I am of above average intelligence, but I, like the other Fox employee’s he interviewed, have no idea how much fat is in anything McDonald offers. That was his reasoning, but GUESS WHAT, that’s because I don’t care! On the other hand my wife, when she is dieting, will say “Yes, we can go to McDonalds, but all I can have is ‘such and such’. It has only 4 grams of fat, etc. My point is obvious and his point is too: He thinks everyone needs taking care of. I believ it makes people like him feel important, but ir sickens me. He has already ruined McDonalds. I grew up in the 70′s and the Mcd. french fry’s were wonderful, then.
    Thanks for nothing Professor. And Neil, next time PLEASE DON’T SOFTBALL THESE IDIOTS.
    Bill Arnold