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When I was sitting there in the little studio I use in San Diego, doing Larry Kudlow’s show on CNBC, all that kept going through my mind was Ethel Merman singing, “Ev-uh-rything’s com-ing up ro-ses…”

The high point, for me, was when Don Luskin, frustrated with my use of the word “maybe,” asked me what I really think will happen in the future, and I told him something like, “Unlike you, Don, I wasn’t blessed with the gift of a crystal ball.”

Don’s a smart, VERY opinionated guy who was chatting up gold years ago when everybody else, including Cramer, thought he was a crackpot. A lot of people think he still is, as they do me. As is the case with all of us who have strong opinions, he eventually will be proven right.

But the bullishness, at this stage, for some, has hit the giddy stage as if everything that just happened, and continues to happen, doesn’t matter.

As one reader with a sense of history wrote:

All you had to say was what would have happened if you’d listened to the market/economy bulls in October 1930. The Dow was 164 having declined 52% from the July 1929 high of 343.

Sounds like a good time to be bullish right?

Problem is it took almost six years for you to get even (July of 1936) and in the interim you would have watched your Dow investment decline by 74% (to 43 in July of 1932).

These blind bulls are crazy. They make it sound like bank earnings are irrelevant. Who do you think put money in the hands of the consumer and businesses to create the business EPS growth? Problem is that the bank implosion wont impact the businesses that quickly as many still have decent liquidity and few are paying of their Auction Rate Securities.

You are right that the consumer is toast and if the bulls think eliminating their access to credit is OK wait till they find out that banks are now taking away unused credit lines. That should shake them up a bit.

I want to know from the bulls who is going to replace the $600 billion in liquidity provided by sub prime loans last year. The answer should be really good.”

Bulls? The floor is yours….

Source: Market Bulls: Everything's Coming Up Roses?