they don't have to watch the volker rule related to treasury or securities or large municipalities.o they do get a benefit. they also get preferential treatment in terms of the way the government hands business out over time. but, again, we don't think european banks are in great shape. yet, there are eight european banks that are primary dealers. only seven american banks. 14 all together are foreign banks. >> i need some investment wisdom. i was reading your notes and you're optimistic about the stock market. >> extremely so. i really believe in the seasonality of the stock market. taking stock prices back to 1888 there is a seasonal thrust. after world war ii the biggest event is that the fed always provides seasonal easing at this time of year. >> right. >> because we have the holiday season coming. >> even with the so-called fiscal cliff and all the political uncertainty you're a buyer of stocks. >> absolutely. >> all right. how high will the dow go, dick bove? >> we suggest the s&p will get to 1555. >> that's a big number. way past where we were in 2007. way past. >> that's 10

volker figured that out in the early 80s, brought inflation down to 4 or 5%. alan greenspan completed the job in the 1990s, tightening the money supply. and the key episode is instructive for now. in 1994 we were coming out of a recession, early 1990s. people talked about jobless recovery. the recession was relatively shallow but it was a jobless recovery and people were worried about choking off growth. he raised interest rates starting in 1994, even though inflation wasn't rising. and he did that because inflation was at 1 or 2%. the fed wanted to keep it there. that cemented our credibility, cemented the commitment the head it made to keeping inflation low and stable. since then there had been a couple scares where people thought inflation, we were going to let inflation rise. we will to sort of raise rates to nip that expectation in the bud. that credibility is paying off for us now. >> rose: while we are doing this economic primer let's ask this, what is fiscal policy. >> fiscal policy is what is taxing and spending and the like. >> rose: the budgetary pr

when things finally get better they want the world to look back and say, oh, see, it was reagan and volkerber nananke and rom or obama. they want to go down in history as the person that saved us. the fed keeps pushing on the pedal. part of this is a political legacy they want. it really has nothing to do with the economy as a whole. >> art hogan, would you be a buyer or a seller now? >> in the marketplace i would be a buyer, but i wouldn't do it until after the month of september. i think we have gotten to this point in time where stocks are fairly valued. they are two multiple terms lower than last time. to brian's point last time we were two multiple points higher. stocks are fairly valued. we have to get through jackson hole. we certainly have to get through an ecb meeting that's the most important piece of the puzzle. the ecb being much more important than the next fomc meeting. after the ecb we have a clear path to higher markets toward the end of the year. >> we have a lot of election risk, too. that's risk for another day. thank you. art hogan and brian westbury. up next on kudlow,

. >> there is real fear of dodd/frank and the volker rule and also crucially worries about taxes andis a clear divide between obama and romney and the truth is also if you are a wall street millionaire, your taxes will be significantly higher if obama is re-elected. that is a real personal reason to support romney. >> i want to take a look at the top donor groups for the president. the president has a lot more than just hollywood on his side. take a look at the top five contributors. microsoft, university of california, dla piper, google and harvard university. how do you read this? what's your read on that in terms of individuals of those institutions giving to the president? >> i think we do have to remember romney is outraising obama. this is significant. if you look at the super pacs, it's a bigger deal. they're not on equal footing. that is significant because incumbents usually outraise challengers. i think the people backing obama, it's hollywood, it's technology and it's what you might call the liberal intellectual class. people who really socially identify with the president

during the early reagan administration when the fair chairman paul volker was trying to wring inflationt of the economy, which led to the 10% unemployment, and then of course come in the last two years. unemployment throughout history was recognized as a very serious, debilitating aspect of american life. but it really wasn't until the 1930s and 40s that the federal government explicitly started to claim serious responsibility for addressing the problem. first through deal programs and things like the employment act of 1986. it commended the federal government to ensuring maximum employment. the broad index that we use is misleading in several ways, as many of you know, because it doesn't account for things like discouraged jobseekers, underemployment, ms. employment. but there are other things that we need to use to interrogate a little bit. there is a national index, which in the current economy, there are parts of this country that have depression levels that face unemployment and other areas that are actually prosperous. you might think of it differently, called unemployment frequen

volker braun is a very serious concern that we have with the nigerian government. in nigeria you have the domestic dynamics that are underway in terms of north and south and boca grande and sanaa has been the domestic phenomenon. when it talks about what constitutes terrorism -- national terrorism -- just like aqap has an insurgency against the yemeni government, boca hair on could be considered against the nigerian government. as well as the offshoot. they have a far end up progress in their sights. they continue to go after them. the government throughout has learned that these organizations have the potential to expand at a rapid pace. .. that has a domestic political agenda, but also was said by a number of underlying conditions that need to be accosted discrimination or perceived inequities, they are able to recruit, the teenagers in africa are attracted and pulled into organizations. 10 or $20, you know, it's something to attract a person to sign on with a terrorist organization. in 15, 16 years old don't know any better. we really have to tackle again, the c

during the early reagan administration when the fair chairman paul volker was trying to wring inflationout of the economy, which led to the 10% unemployment, and then of course come in the last two years. unemployment throughout history was recognized as a very serious, debilitating aspect of american life. but it really wasn't until the 1930s and 40s that the federal government explicitly started to claim serious responsibility for addressing the problem. first through deal programs and things like the employment act of 1986. it commended the federal government to ensuring maximum employment. the broad index that we use is misleading in several ways, as many of you know, because it doesn't account for things like discouraged jobseekers, underemployment, ms. employment. but there are other things that we need to use to interrogate a little bit. there is a national index, which in the current economy, there are parts of this country that have depression levels that face unemployment and other areas that are actually prosperous. you might think of it differently, called unemployment frequ

during the early reagan administration when the far chairman paul volker was trying to wring inflation out of th economy, which led to the 10% unemployment, and then of course come in the last two years. unemployment throughout history was recognized as a very serious, debilitating aspect of american life. but it reay wa't until the 1930s and 40s that the federal government explicitly started to claim serious responsibility for addressing the prblem. first through deal programs and things like the employment act of 1986. it commended the federal government to ensuring maximum employment. the broad index that we use is misleading in several ways, as many of you know, because it doesn't account for things like discouraged jobseekers, underemployment, ms. employment. but there are other things that weneed to use to interrogate a little bit. there is a national index, which in the current economy, there are parts of this country that have depression levels that face unemployment and other areas that are actually prosperous. you might think of it differently, called unemployment frequency.