Leaving my rose colored glasses OFF, our economy and equity markets don't need ALL of the good stuff to happen to do well. All that is needed is the avoidance of even more regulation and a somewhat saner corporate tax policy. Now let me pop those rose colored glasses back on and add one thing that you didn't mention that would be the holy grail to our country....and in any other circumstance just as impossible to find:
IF (granted, a big if, but not impossible) our Federal government started spending LESS than the income to our Treasury AND interest rates were a couple percentage points higher. We could buy long US debt on the open market at less than face value, and start to reduce our national debt. We could still continue to auction 10 year and shorter Treasuries as to not freak out the market too much, but do so at a pace that no longer squeezes out corporate debt.
There is no other administration I could conceive of where this would even be a faint possibility. If this happened...grab the reigns tight and hold on for the ride of a lifetime. Roaring '20's would be the Roaring 2K's.
No, I'm NOT betting on this, but very interesting, no?
interesting yes. JD, I need time to think about it. The Bernakie Twist, our buying of our own debt ("monetized") when we were downgraded have to all undone to get back to a normal traditional yield curve. Perhaps a rise in rates might help it get "normal" but the whipsaw of buying back all the debt during Porkulus, I don't have a clue as to how, not to mention the flood of sales and a slew of deep discounted bonds and the carrying cost of the higher rates. Buying below face, and essentially going to a "STRIP" as the status quo, I am ok with that.