Immigration puzzle. Trump swears, but so what? Many presidents do. Not racism, but frustration . Durbin wants visa lottery, Trump doesn't. Terrorist killed 8 and injured 8 in NYC from Visa Lottery. Trump wants merit program, not equal diversity. DACA must be accompanied by wall/barrier/drones/policing/window. $18b. Merit, not family chain. Can there be bi-partisan deal? Dems rather talk about racism than immigration. Ryan: " Very unhelpful...very unfortunate."

Remarkable stock market continues. Wall St raising growth & profit forecasts. Higher real rates & correction? 3% RGDP, 15% profits, big capex, stronger consumer. Wall St analysts crediting Trump. Dudley & Kaplan fear overheating. Demand-siders. Dudley never understood supply-side incentives to raise econ potential to grow. Where's inflation? Watch gold, dollar, Breakevens, TIPS. Energy push temporary.

Mainstream media wrong: corps already paying higher wages. Much more to come from investment boom.3 straight 3% growth quarters first time since Bush tax cuts 2005\. WalMart big wage hike. Toyota plant in Alabama.

Davos good idea for Trump. World central stage to promote econ growth. Tax & regulatory rollback. Infrastructure. Immigration. Foreign policy triumphs. Along w/ 55 minute immigration meeting in Cabinet Room, shows world how capable he is. Like Reagan G-7 in 1981-83\. Bannon & Wolff wrong.

Medicaid work requirements completely right.

New IRS w/holding schedules, w/ brackets & marginal rates. States want charitable deductions to replace SALT deduction. Legal? Municipality v. state? Why not just cut state taxes?

Lower taxes reduce deficits, not raise them.

Trump on NAFTA. Rather negotiate, but will pull out. Bad for biz & market. $71b trade gap w/ Mexico. $17n w/ Canada. So what?