Kudlow Says He “Likes” Cramer’s “War Bonds” Plan, Promises He’ll “Mention It” To Trump

Appearing on CNBC once again Monday morning, Larry Kudlow tried to throw more fuel on Monday’s market rally by insisting that the outbreak in the US was finally slowing, while defending the administration by insisting that “no one could have expected” the virus’s exponential spread (though about a dozen Zero Hedge articles published during the months of January and February would suggest otherwise).

Toward the end of the interview, Kudlow’s former TV co-host Jim Cramer asked if the administration would consider his plan to issue coronavirus “war bonds”, a scheme the CNBC host has been pushing every chance he gets for weeks.

But for the first time, on Monday, Kudlow seemed to indicate that Cramer’s idea was being taken semi-seriously by the White House. Kudlow responded that he “liked the idea” and promised Cramer that he would raise it with President Trump, offering a glimpse behind the curtain to an audience that got to see a little on-air lobbying.

“This is a time, it seems to me, to sell bonds in order to raise money for the war effort, in this the pandemic effort,” Kudlow said. “I’m all for it.”

Already, the US government, via the nation’s biggest banks, has issued about $38 billion worth of loans to small businesses as of Monday morning (far short of the tens, if not hundreds, of billions in loans that have already been requested, as we explained earlier).

But as Congress kicks around a potential fourth coronavirus relief bill, we suspect we’ll be hearing more about what might be in it over the coming week or so.

Following Kudlow, Former Fed Chairwoman Janet Yellen confirmed that she believes war bonds would be “an appropriate approach” as long as its done in a way so that the interest burden will be “manageable” for years to come.

Though while Yellen projected that the true unemployment rate in the US is already well into double-digit territory, and that the recovery might take longer than we’d ideally like, Kudlow insisted that the dynamic US economy would rebound within 4 to 8 weeks.