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A vintage advertisement calling people to buy US government bonds to help war efforts is displayed at the Museum of American Finance in New York. - 


JEREMY HOBSON: Now to a piece of legislation that'll be signed this afternoon here in the U.S. The tax cut package that passed the House last night.

Chris Low is Chief Economist at FTN Financial and he joins us live. Good morning Chris.

CHRIS LOW: Good morning

HOBSON: So the tax cuts passed. A lot of people are calling this a new round of stimulus. Meanwhile, a new survey is out that says investors are the most bullish they've been since the fall of '07. Is this beginning of a new boom?

LOW: You know, it's when we see this big bullish numbers in surveys that we, analysts, get nervous. We acutally saw exactly the same thing in November with bonds. People were so excited about the Fed's bond purchase program they were all bullish. Since them we've had the biggest sell off in the bond market in about 10 years. The problem is when something goes wrong, it's really ugly when they all rush for the exit at the same time.

HOBSON: Well, what is the worry that you're seeing? What evil could lurk on the horizon?

LOW: I think what maybe one of the biggest threats is the European soveregn crisis. It hasn't gone away, in fact Moody's just downgraded Irish debt five notches last night, and the Germans have blocked an affective expansion of the rescue package.

HOBSON: So that European debt crisis could rear it's ugly head for us again. Chris Low, chief economist at FTN Financial, thanks and have a great weekend.

LOW: Thanks, you too.