tv The Kudlow Report CNBC July 7, 2009 7:00pm-8:00pm EDT
tonight on the klolo port. are stococksndnd the e ecomymy kiking turn for t the rse. $20 oil. that's xx cut t tha could save amica. anyy n imulus has help siness for a chchan. ititusinesses atatreree j, t welfare sspeing. steve forbes wghgh . senatoror jimemint in south calina on economic freedom. sarah palin h hashe charisma to revive conservatisism and economics and roger stone weighs in andhehe pope isight aboutt thnene for ethics in capitalism. faststenouou st elts, everybody, "the kudlow w poport begins right n now
gogoodvening, evevyoyone m larrykudlow. lcome back to "the kudlow port" where weelieve free mamark capapitisis is s th best path to prosperity and it's businesses, notwewelfe paymymen ththat createjobs. let's go to topic a toghgh arare ocks in theececony taking a a rn for th worsrs do we n nee a n new stimulus pl fr washington?n? we, , rst, rolll ba the clock to last june's j job report o thursdsd.. the june jobs report, it w a babad popo, stocksave been down4%inince ththenand hehe's's reononhy, take a look at t thi chart, plunging wages, private hours wkeked cononnunue frfreellll, urly wages have flattened,d,hihis is a n nty report, as you can see. jo losses are still substantial. itit's bad combination.. i'm always trying to bebe a optimist.. this worries me. it suggegess a later ancoconoc recoveve.. herere's novel thought forhe
niuses inwashington, help business for a changege stop taxing ovoverasororrate profititdodo n hike ee m minum wage, backoff p and trade. dodo n nationalize healthth car ststop the titrustsold o o phone compananie farms, google, aiairleses a multltinioiols. andd 6 to 12 mthth prorollax holiday. th w wld make it cheaperer t hihireewew workers.. then a coorore taxcut, imimdiate cashin for expenses and investment write-off.. in other words, c c the t taxost hiring, investing and doing bubusiss because it i i businesses that c cree the j js and the incomes for milies ththrohout america. if yo are still rrrrie about e houousi story o o bananktoxic assets, howow about a a capital ins tax hoholiy?y? eses a abobody in washington t yy t worldldeally works? iscacall ienenti. n nee more off them for
business. and investstor and families.. alririt. we're gogointoto get t t this stimulus queststn.n. and hear from t the great s sve forbes in just aa few moments.. rst, a reportnn today's lousy stock market, whwhic is reflecting new econonomi jitterr cnbc's matt nessto h has the fu report. >hahank whwhil waiting fororalality a slow bleed what we'e're dealing with. ththe w is down 7%7% or 650 pos in the past four weeks,closing day at itsts lest level sinince mamay1s1st. key losers iluludeindustrials, energy and disturbingly, technonogygy. on the flip ide, h heah h ca and in particular, hmomo weree very stronon today a as were regionon banks on an early bet atat writedownsayay become wreups in the thirdrr fourth quarter.r. of notettayay, discocove fifinaial fell % after
anannocing pnsnso iueue about 10 more stock. warehousers sheded 7%7% aftfter slhihi itits dividend 80 it might become a a wreathasas well thexchange sckcks we e al down. the trading commissions is momoldg a plan that would reririctnergy trtrerers. lastly, onee to watch, mipopor, the l lee scicien tool and eqeqpmpmenmaker ringng on re than two times the average daily lume as growing health carere coanans are t the markrk's's rlings. back to you. >> thanks very mu,, matt. th question iss ee stocks andd the econonomy takininaa turn fo eeworse? serious s diicict question. we have stete forbes,reredent anand ceo forbes andcompany, thor of ""wewer,ambibiti,, glory," greaeatewew book andimi campmp of macroorortfio adsosors new job t tit d we haveve
soonone om wealth capital management.. wel talk about the s stilulu stuff ler. want to ask you, in your lititimewill washington d.c.c. help businesses.s. on the supply sisi,,it is busisineeses tt c cree jobs,s, incomes and ecocomimic recovere. i t thi allhihis talk of c cap d trade, a a this talk a aut nationalizing health care,e, n on thehe fntnt page of t thewal strereetouourn," a n uncecessy antitrustst assasaul n america'a'leleadg cocoanies, th s stu is b with capitalal b,b,s it not? >>t is. we'll get someme growth in thee second half. the question has ways been hohow gorous will it be? the stock k maetet wt upinin mah h cause of the prospect an reality of getting ridff ma t t market or modififngngit. wewe nd another round of good news a a. und of goooo news woud be the federal r resveve foreswswrsrs buying g govnmnmt securititieso o we have a a s s anand abable dollar, the h administratitionoeoesomething
go o on x front insteadadff pupuing on more taxes. you mentioneddapap a a trade. november this woululd get the market m movggnd economy mong. they don't't et. it thehenlnly reason t the wi t it eventually y is pureololits whenen tyy rlilize theyill face oblilionon jt as the republicans d in 0606 and 8.8. >> steve forbrbes let meme challengngyoyou on t ts f sry, feds have toto h hav an exit ststtegy or tmuch money sulyly normally, ii agree whh you 1,000%. it's interesting g me, the moneneryry base, fed balance eeeet, of a crtion, since dember, base growth has slowed a crawl.l. only 2%atat an annuaualrate. that i is sisiee december. oaoade money sometimes tesss whether money iseing put to work in t economy. m2inincejanuary h hasslsled to only above 4%. is it possiblbl t the stock mar is worried t the fed is exiting
liquidity t too soon, t tooast bebefo recovover occurs. is that possible? >> sure, it'spossible. ee lance sheet has shrunk since decembeber and the federa reserve has bn i inaerertely tightening.. we're getting t best of bototh world, infnftitionnd deatation. the fefe doesn't hato buy trtrsuries to get quidityy in th market. they should have focused o o cocoumer creredi small siness, buying packages of credit carar cucuries and car loans, mortgagege backed secururits,s, fed keptrorosing to do ttt but dididn.. thfed took rifle otot approach, thattould be good for the markets. inineaead,hey put money in treasuries and the marketsonon puputt toorork b bause they ha their own problems. a and what these moneysupply
problems mean -- >> hehey were gng to buy treasusueses b focus on thehe rt of the marketorking susuch a as securiritititi, that would be all to the good. instead, w we have drift. >>imimaul son, yourere the bull onight, god b ble yy.. i ntnto be bl, god knows,s, i wawanttoto b an opmimist nce thehursday junune jobs report, whichhasasicly starng, atat's s-t-a-n-n- pastt tenseof totostink, welostbobout plus on the inindes. we a are seeing a a lolocaon, w t lecamp, the supremeo bear.. werere seeing defensive scks susu as consumer staples, cornflakakesndnd kloggs and gegeral mills as marrow ntntiod. they'ree gettttinouou ofcyclica ocks, out of e ecomicecovery stocks. atat ds that mean, jim paulson? >> one thing to keeee i inind,
nothingg moves in a ststigight ne, not economic reports or relativeveririceerformance. i i thkk there's still more reports comomgg out of wall stet andain street t tha susuggt t we turned a corner an sugggges w wre recovering. even though lalast fririy'y's unemployment report,t, 10100,00 light on jobs expected. we haha 6,000 leses than previv months and it isisn' likikelto e peated. > tt't's bullish. 5050,0obs from u ule sam is llllh. we had 11itith ,000 drop in household income. that's a leading ininditor. as i said, s-t-a-n-k. unemploymentomomesdodown continuiuinglalaim down inn the stst two weeks,layoff anannocements wayffff in recent wewes. a lot o of reports, sm reports still risingng, capital g goo orders coming backup.
ththvavast number reports are suesesng we turned a coer. mamaets run in ilill. iikike the fact we have a dominance of dodot. >> d domance of doubt. >> dominance of doubt. > that's a n nic t tn of a phrase. i like that. domiminaee of dot. how w do youomomince ofdoubt? whwh sectorsrsrere you buying right now t tomrow morning, where is jail auauln n gog? i thinink is timeto get refreshed withasasic materiris. >> oh, bacack to the cyclicalal >> there's a a lot of earnrnin leverage here. wiwithhehese compapaesesthat whwhiteded dn their operating sisis. if they get any w dand -- >> jim with t thenewjob. yoyou ard paulsen ta about the mimince he likes. you a the dominant doubter on this program. i want to domimitete yr doubt a littlele meeby ggggesng banks
are hololngng up reaeall well w isis miminicorrection,, whh positive steep upwardslope, ev a banker can make money borrowing at zerorondlending at 6%, what aboutt y youominance of dodoub >> to borrow at zero andenen at 6%, you h hee to lend dd lding is down. therere'aa dominance of d dbbou there, the p poly not a aeded a consnsums,s, n aimed at housing and not aimed credidill of icich e still contractingng. you forgot one off the statistis frfrom f fday's job numbers. the averageworkweek was down, even thoughh factories operatin at lesess anan 70%, they're s s putting people t to workeses during thehe week. that's bad. i lookatat the charts t the market, they lookk negativeve, d and shohoulrsrs on e.s&p 500 and i look at earnings outlook f these comomninies and exexpeati, wewe setting osesees up r big disappointment. e youidding meme coumer discretitiony y 93% i in ththisourth quarter in th
enenroronmt with consumer crerei down a s sinings rates up. tatails got pound2ed chchs. homeuilders pounded %.%. technololo g got pounded, nasda got poundeded,toto indndex -- >> ere's no relationship. i'm trying to creatat a big theme for pple watctcngng this ogram. the e gg theme is investors are runningwaway from theroro growth economic sensititive cyclilill recovery shares,hat they're ruruining away fromom. bebefo i i go back, steve for. jim ululso what will yousasa a enenis developipi.. you ththin this i is eaear term short run trtren i wantto putthiswawage proxy chart on the screen. isishart has my kesesnonockgg i an ptimist. i anted the mustata seeds of lik idyty, better financialal spspres,s,ll that isut there. the trouble is my seeds an't grgring. look a at ththis falling hours worked times level wage, nonoineaea. atat i one ugly y moererf da
chart, mr.r. pplslsen that iss dominance ofofdodot.t. whatill you do withthat. > core consumer pricece infln and wawagenfnflaon almost alwaws clclinat the e ef a cession into the rst year or more intooheececery. ththfafact both are dog g at nw is not necessaririly irregular. we do h he falling was. that is b bad for th c csusumet it's also o ve g goofor businesses andnd adds ev more o their profit leveragege overall combined with strong prododtitivi which seseemo be good for stocks rather t tha b. > h mhh is t tss big term mp ins busineneeses. >> i it'nono good for businenea rising wagee rara. inanan admininisttiti giving t ststf-f-ar to small buneness now, we willaise ththe mininumu wagege rara. >> comee on, ji what's wrg?g? thth g gres time to jack uphe minimum wage to9.9.5.
teenage ununemoyoyme, i t tnknk african-amameranan teenage unemployment must be close to 30%.%. what clever idea foror washinin, steve foeses. whwhnvnvts is? thth must be harvard, yalale a inceton. on washington d.c. couldld c co up with aanan, with 30%, i'm guessing t teege afriricaamamican unemployment ge, they will actually rsese theminimum ge. this iss stupidest thing have ev h hrd in the h hisry of the planet eear. >> llar,, ththishole thingng shs peoplele c i iorore rea. t ts i franklin roosevelt reaction airy ufufof ideashahat should have be disisededit if notinin the 30s,970s. obobam proromid d freshsh art jujust going withh old ststuf t ananspend, regulate orore, anantiust, all the thingsthth sl rorowt ththeyavav't learned anything in 70 ars. >> y youndnd iave to talk to m.m. i had dinnerr w wit him with conservative pundits athe will house, smart, rsosonae y.y.
wee haveve t pay hima calal gigivess 0, 40 minutes with h, i believe we can talk himnto pro-grgrow policies, do y you believe e that, eve? sesee w o optisisc i snoom i hope so. eoeolo is tough toovercome and larry summers is a real theologist on this. i i wl workonon thatat, m m se apappotete tatask gegentmeme stay where you are. much mee cing, the ia of 20 t oil, is that innurur future? it a real possibility. if t tt were to happen, that's at i call a reall tax cut and could s see america drill d dri drill,l, yore watching the kudlow reportt a tryry to ercome all obstacles, pleasese stayayitith . much more totonit.t. ththsame tools the pros ususe,iu
a didisclilinetrader. e your order gets s exutut, even when you'u'reususy. d d wi trailing stops to h helyoyo lolo in profits and d mimimizeisk, yoyou n be confident in y yr r sttegy, nono mter which way the e rkrketoves. findnd o w whyore and more actiti t trars e e tuing to fidelity for r a ararteway to trade onlinin trade like a pro.. trade . mr. evans? this is nini from onstar. i ve received an a aomomat signal you've been in a frontnt-e crash. do you need hehe? ? yeyeah
phil is predicting. phil's beenround a ng time with a grereat rerepution. he willl join us tomorrow eveveng.g. talk abouout a possible tax cut. my gd frfrie, boone pickensns does n n agree w wit $20.. he o onhe other si. take a looook at boone p picnsn earlier today. >> you look a a the minister o engygyor the ssau, he say, we ha to he 75 by the end of theyeyear i wtt two weeks and say, it wiwi be 75 by ee end the year.. what a pricicons. >> a alligight erere'boone, who is betting on the saudud arabab oil sheikhh rr than berlija, tellss me he is long oichlt i understand. we're ba withteve forbebe jim leleca and paulsen. jim lecamp,rorom the gat state texas, you have toread this thing. i i ho you saw it. he is s sayg forigigtrtrait
monthshs oil ss beenen rning t llion higher than global dendnd a day.. isis ithe largest and longest ood of supply ihave seen in 30 years followiwingenergy. itss a huge rprplu hiss bicic pointisis their stota is going to be -- storagag ctst wiwill be way too h hig prices fall,hehetuff loaoadi o onhe hihigh seasasas to be so. whatatoo you think o that? thisiss s aotential game chchanr.r. the mere t thohththis is out there isis so fascinating. i i ienend to t tmpet ts. i ink oil -- pepeop were bettingg o big economic growth, i don't ththinititas there, there is antidollar speculati, i'm n n a agastst speculatororp the mamark liquiditity. whatbobout 20? hell's's bells,hahat about 40,,j lecamp. i think you're r rig if you okok a 40nsnste of 20.0.
general thee s is correct, there's a lot more supply t tha mand. demand is c conacting ststil you have supppp in pililine on sh, , sstoge, points t to lowerrrices. here's what coumers needs t know, when the economyturns, ririg unun are down 40 to 50 %. chcha a isoing around t world buyingng sosours at record pac. when the global ecocomymy tutur that wll turn on a shortatage very quicicy.y. >> some people say, thoughgh eve forbes, even though d demdd is fallilingececau of the world'sshshak onomy, production is fallingalso. evyysingle thinghahatcocos out of washington d.c. i antioil,ntntirineries and antitiilill ill ill. lecamp mayayave inint. >> i losost you, arar. >> lecamamp m have a pntnt ododucon is being cut back, evev nod ifou can heaea me,
because eveverhihingoming out of washingtonon i ti-drill dririll drdril evytytng. theyey he e oicompanies,anant to tax theirproof ffs,s, don't waw new refineneri built.t. thatat'shahaworries me aut the oil storieies t t futures maet out ur, fe, x, ten years, noproductiti,, that can offset thehe l lac of dand and orage problemem beberlgeger tal about. >> that's trtrue longg term but ort term, i do tnknk oil prices wililome down,ou nti meioiod weaker economy, lotsts out there and morereraramacally with natatur g g a huge aunun developing, e eececiay early llll. in the futurur i think t tre will be politicic c chaes arting next year, i i think the markets willealize that and that will put pssure on washiningt t t get some productionon, t t st offsfsrere no just withth shale,utut also nuclear popowe thth's's a long term tthi. theyeyeeoing very slow on thth..
what rescues thehe tngs is not thee arguments we mee is public opinion and plic opinionss startiti t to rn the right way. >> intererestggstory out o o washington, team o oba i is backing off the government insurance nationanalid d heth care p pn.n. you had a gg lllly today, quite ininteststin the insurance ststoc n n a, cigna, u unid alal were up 5 5o 7%. th goes t what eve forbes isissaying. the p popar outctcry against another government insusuraee entitlement plan on top the ct that mededarare and medicaid are bankrupt,, thatt m m have swayed team o oba to back off. would you buyiying hlth care?? i knowouou'r into clilil ca, but thisisis a special niche play,y, espspecllll these insusure.. >> i wouldn'n't much, larry, i'd be underweighght atatrerea. it's been mewhat pular of late and a ni moveveecently here.. i thihink that steaea did
character o the grorohh eararnis of those companies,,umumbe e, they're atigh risk whatoeoe ultimately comomeowow on healtl care as f far ass policy. number two, i i thinkthey've ben bid up f for that steady e edd character and iththin thatilil palecocoared to the cyclicical lelevege some oththarkets have. ii ree, you think the calls i the last couplple d dss for anor policy stimulus is neeeede i think that's beururtf to t t ovoverl l ock market. wowoul likeoo seseehe government calaldo, and let ee policy out t trere work. more spending, , rere boowowin more pressure on debt marketet moreiscal nynympmamaa, in thehe anseseas y y al help foror business we have notot hrd frommhis groupp down t the, , anhing comimi out lllle negative f fstocks, is that what you're saying. >>yeah. we don't't lkkstimulus,ee have plenty of stimulus, we lack th patience tolet it work. we lack the right kind ofof
stimulus,, this is the wrongngin of stimulul,, that's thee prob, ththiss garbage, thihis n'n't imimus, the nonon-imulus ststimus, that's the oboble have. jim lecamp hon the wa out, exxoxo gloloered oday, chevron got obbered today, enengy got clobbered today, we'll leave t teco s setethi el.. ththisououlde the gigiing of aa baba story, let's sayay oil doe gown to5050 and ,, w wil these complelex tngs g get slammed. if we are setting upp for retest of aaow or higher low, i think atat's where y you opportununits s ar going to b bn ee longer tter dodon'know if that's six months from now or eighthtonths omom now. i love naturaral resources and emerging markekets for the ngn tete. for the e shtt tete,,agree, i ththk k th will g slammed cause we'relooking at maetet correction. ththe ta is poiointg g to furth akakne that will disappoint a lot ofofpeopop. . >> jim paulsenonon t way out. tech h has been hammered sincehe
jorererts came ouout. youu giving up on tech, you're si sickically cam si cyclical growth bubuye w wha about techch >> i like tech. one thing missingng is lg term investment by corporations and think we w wl see that go into ntinuouslying the nextxt recovery. iononnue toike chch. >> steve forbes, ieeping you on t the f fro burnerer bause you're coming bk k to talkbobout the rightt kind of stimulus a a onong type. coratulations, jim lecamp o on e new posisiti.. totomoowow ening, we willl talk tor.r. $ $il hielf. he w wl l be here t to talkabout this humumonusus callll $20 a barrell is what you calal gagame changer. i willll tll y,, it ght be very badad fornenerg stocks b mighght gat forhehe economy dd aot of oer stocks as well. ming up, t"the k kudw w port" is b biggogornment threaeatengn the e market's free market syst.
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>hehe said heididt want to t a name on itutut he doesn't't haveve big disagreememenwiwith you. in brief, senator demint, good to see you aiain,sir. >> good to see you ain. >> what't'sthe statete of econo frdodoinmemeri inyoyour judgment. > wn the government ownss an controrols l lar part your economic syemem, that i socialalis you can look at t alalthcare, yu can look atedatatn, eeney, transporortaonon in almlmos eve ea, the federalovoverent is intrudude nini some wwayauauto busisissss,bailoutut, atatev to concerned. pepeop a a over theountry have been asking me w wt they canano to stop this gwtwt of governmentntspending. >>reret we still - -- i understand theheintrusiveness, dodon'lili it any more than you do, , ar't'te stilla f fee market cocomy, in your judgment? really, when youetet right down to, ca and adade won't pa, nationalized health carere i never going toto pass, those gu
wouldndn d dea do a anoerer gmg takeover, would thth? or am being naive? reallylyararen we still a free market economom y you just wantt be a moror perfect freearket economy? wewe'rnot looking for prececti. savivi freedom actually shows those parts of our ececomomy at are ststil freeee terprise, telecommmmunatatns and retata,, ether that be food and clclhes, you look at ee government's side, l loo at what's h hpepene to education, health care, again,n, it's t vernmenthahat' kept us from developing our ownenengy t thass really messed uouou transpsptatati grid. the problems i our country, t t a lge degree can bebe traced back to b badovernment licy.. the f fre eererise rtrt is working but once t t g govnmnme trude is in any sectotor the eentntprise systetemoesn't work very well. in your book, youu nenest? do youu implplatate george w w.,
my friend, i supporteded h f for while a lolo w whi basically, bubut e e st year or two, h his the guy who saiaid we havetoto suspend frfree market capipililm in order to sasavet.t. i inink that was one lousy ea, jim. >> a aee with u. i go after b bh and the repupuicicanand democrats. i say the pupublans tually betrayayedhehe tst of the amicic peoplele, didn't carrrr theananr of free enenteririse and freedodoovover all, we n neo not only get our mesessaback, we need t to act like peoplee w belilievininthose principles o freedom. >> what about sarah lili let'ss go there. ii want toee i if you get sqrming here, ha at the backk ofof yr neck,ss's a freree enterpriseser, r rd her speech, e's for free eerprise, she's fofo fiscalestraint and limitatitionyoyo going t to back sarah palin,n, dsnsn'the have the right story here. >>he has spoken outor thehe principlesesff freedom dd lilimid government. i've been vyy s spoporte of he i hope she'llstein the national stage. i pe t thass why sesigned asovoverr ofalaska, s so she
could work more around the cotry. she standsds ptttt tall when itt comes t t speaking o out for f enenteririse >> you're e ining ry h hest ouout at unlike a l lot of washington f fkk nitpicking her to death almost a bad as thohose small tnened peopleinin alaska. don't know if your bookgoes inreregious orpiritual elememtsts, pe benedicict ii ce out witithnencyclicicaltoday, what does thehe pope and adam smh h ha incommon?n? i belilievthth believe inethics and pipilism. ththeopope sd thecocomy needs ethics to funcncti rrectly, ethics whichss pplpl centered.. if ii thinkthat sounds familiar a few centuries ago, yo hero and mmin am smith ihis eat bobook "t"they of mal sentiment"t" sdd a eeee market econonomrequires etc and m mal
at the center. we have had lot o of crooks inn fifinae, a lotf crooks in ininduryry, you go back the lal teyearsrs bebern madoff is the lastst. we've alalsoadad crooks in washingtonon, urur friend a and mimi, mark sanford, i so painful, hehe'smade a dn fool of hielelf becauseouou'r not susuppededo cheat onon yourself and not suosos to t tel pack of es. what a abo w wha the p pop is sayingng? when we talk about eeee mararke capipitasmsmwe talk aututrorowt andprospereritenatoremint, whwhdon't we talkababou the need for ethics d m mor center, just as pope bedidict did and great chururchan am smithdidi a uple hundred years ago. >larry, t ttt idea of judeo ririian values iss in t the boo "saving freedodom" and i is the pnciples that keke our free enterpriseystem w wk.k. our r gornrnnt i is not only
socializing oureconomics but our culture and t tining s s seselalari all areas of o o cietyhihich means thohose underlying valalueanand princips are being removed. ithihink that's whwh y youee seeingisseingration of ethicss and characteter an iegegty n on in the mararke but all o our ececony. you can't throw ouout the j durings eoeo christian v valss exct it to work. > i am a c catlic convert, t i i got isis right, onef the 10 commandndmes s is t tuu shal not stealal. did get t atat right. > i think youotot that right >> there'ss a a lesson in that. how w s sha not eaeal. we needd t talk about that more. people o on inin seet are so grgry these ethihica and m mall oversteps. anayaysenator demint,t, got to gegeout, producersrsrere screamg at me. i hope u selll a millionooooks and come backk the kudlow rerepo" " al soon. >>ththanyou, larry.
> > coming back to wall street, we deal a little money politics. the latest on presididenobama's trip to ru sharkslulus he can't escape itit tatalk of yet ananotr r imulus packakagess ramping up, even in moscow. evevforbes willl rrejn o discususonon, etcscsnd morals t theenenr of free maet capitallism. it is called plpleadon't break the law,w, just as iororta as economic growth. i'm kudlow. we'll be right back. oof!
i i ho he has that insurance. a! yoyou alallyeed it these days. how comeme? well if you'rere ht t d can't work it paysys y c cas.. yeah to o lplp wh everyday bills like gas, the mortrtgege.. ....nd groceries. it's like insusuraee likefor daily living.ege.. .....wt's it called? it's like insusuraee likefor dailyuhhhhhg.ege.. aflaaac!!!!!! oheaea that's it! aflac. we've gogot u u der our wing. a-a-a-a-lalac!
a a icick recap on t ns, the stocks and ou economy taking a turn f the worst. ththe ww lt 161 points.s. techie nasasq q wahammered. techchosost almost 2%. bottom l linit wawa't'tthat much fufun. esesent obama spent another day in ruiaia knee-deep in fororei policy and so got a chchan t t respondto hisvivice president joeeiden who acknowledged sundaday, think, team obama mimisrd thepopoor economomy dd rising unemploymen rate, chiefefwawaington correspondndtt john hararwo jois with the detaiails >> hey, larry, e enn when he's
ababro,, presidentnt omama cann cape the economy, stlljob on in russia, he met againin with rurussn n president,t, d dtry m dede - -- d ed def and prime e minister s sal madimirputin. jojoe dedensaid it w was bigger than anyone thought. >> we haven't alwlway gotten the numbers s ghght t i think t t generaraovoverew isright. wewewent through a an economimi tsunami thahat wass r woe than anything we've gone touou ncnce the "great depressision even eayy on, thihi wedid t s see thefull mamagnudud of whwhatas going to happen. does that meanwewe need a a second stitimuss on top of t th $78787ililli stimuluss passed eaeaieier is year? laura tyson thinks so, t
former clintoton advisor,heheaid we ouould be plplanngngor a contingency basis for r a coco round ofof stimulus. is pfoformg close to expectations butut n i titingng. i have tootell yo after talking to o offiaia in the ite house and trtrsusury there is not much appetetee within th adadmistration or the congrgrs forururing that,, e espially among dococra concernedbobout th image t tha they are acquiring ofof spending more moy than the gerernmt has a and eling this record deficit. so,, larry, they tnk the outltloofofor a second stimuluss very cloudytt best. . >> i think y youee right. laura soson,ho is a friend, she wants more spenendi,, ihihik that's nunu. isis tre any chance,john, i know i w wil lose thisis onone, there any chancee ty would do somemethg g fobusiness, makak te cocost hiring new workers a lilele cheaper atat t mamain, mae suspend the payroll t fofor x ntnt? >> i donon'tnonow about paolol taxsuspension. i talked to the r replican ononomtrereected on bo sides earlier today, said it's
too soon to say wheheerer we ne onone tt there a are various st e government could takef neneceararthink inning the range ofof$400 million, if necessary >>hank you. cocong up,alalk of y yet anothe imimul is raing upwhwhher thwhwhithouse likeses i it or n. sasay if you ntnt to stimulate do ithehe rightht waway, cut ta mamaket't's sier for b busesess toreate jjs.s. you can'tt hee a j jobithout a business. still to come t thi veveni, alaska gogornrnor sarah palin pushes bacacn the spspotght! listen to this. can you i imane yourself running for president? i don't knowhahat the futurur holds, can't predict what the next fisish run's going too loo like, , mu l les wwhas going t happppenn n a couple ars. bumymy focus is on my sste, still, and it always wi be, and my family and at is be for th, what isest for them is to notot run f re-e-eleioio >> all r rig.. i say take your show on the road, rah, you avave got whattt takes. the only perersoin the
republican party orr conserervavevewho can fill a haha w wit20,000 pepeop.. wewe'ltalk about i i later with memed political consultantntoger stone.e. bubulet's checknn with l lar first. > i'mtill on hopee i havav a colelef new numbersoror them to look at tononig and we w wll discscusrere estate,icicha jackson and this. is obamama the most antibususin presesidt t in cades. guess where i wiwill come out o that one?e? >> you don't w wtt me to c comn on t thaone. thatat'soooo easy. you keep upheheududlooptimism. i i a little worrieied. dennis neal, watchchthth show a the top off t ho,, "the e dldlow report," we willll bight baback stay with h .. lots more work to o do (announcer) th i inine generations
anan even sixteenths wrench o ovehehe? rereou go. elelev s steenths... (announcerer from designing some of e e rld's cleanest and most fuel-efefcicien jet engines... to building g mo wind turbines than anyone inin e country... anks! nono pblblem cacar surance companyth in thehe nioio bubut,t't's t like we're kickininbabacknow, h hav' a cuppa tea. gegeckvovo: kes lots of sweat b bece that big. geckcko : : ourse, geckos don't teteray sweat... it's just nonot r r thg... gecko vo: ...butut ioo wo. gegecko vo: that's'shyhy geico is consistentlyork eq. rated excellent or betteter terms of financial strtrenh.h. geo o : second rule: 'specially if itit m mard eg"the gecko." coco o on ople.
kn t thaconnectivity is ouout aching further, faererhan anyone else.e. together, we'r're lplpg to shape the exexchgigingorld. nyse eururont.t.owering the exchanangi w wor. less talk stimulus instead of 5500 barry bonds ofelelfa payments thahat veveone otothi, why not h hp b busess to h hel create jobs to lplp families, working falies. fofor rere smumulang cocoerersaon we havee myyaye plantutu a ahd economist and our eaeat frieiend eve forbebes i stililwiwithus.
okay. i i he my fririen laura tyson bbbbin bombs from singapore,e, e ne another stimulus package, t t shwants more spending. when ishihi washingtoton crowd, aka teteam obama going to wise an r reaze binesses create bs, not transfer spending? larry, o economy is like trapeze titist we've left the bar, we'rere okokg at recovery and wondnderg g whher thetitimus wi give u us enough momentum to get too covery. just don't't k kno because thi reression is soevere it't' disrupted all theinin of forereststs can make fr t st. but we doo need aononngency plan, just l lee all businesses have a contingency plan in case thth upturn doesnsn't come.. but, to me, what we d don n nd is moreeemporary stimululus wh w we need is a p pernene sosoluonon t help our economy crcrea more - -- >> how about across t t boboar -- how aboutlolowe tax tes across th board, that's a a neneought. hohow about a steve f fbebeslat
tax? erere'a new thought. > trerere greathings we canan do on the tax side. i i so think i it' important we look at those parts off governmeme spding that ee try investmtmtsts in ourur mpetitiveness. wee e en ridining theconomy from ssssau their ininstments - -- government nees to ake, totoo. >> what's nassau? was that a cheap shot for global investing? oh, nassauau. that's a new e.e. i got t to go to steve fbebe on atat one. that is too juicy fofor me to ps byby. we ju heard a little protectioni precectiism, anti-investment.. here's a factoid i gotot fmm my pal acea economisist, tnk ran theongressional budget office. we already had two. bushsh h $170 bililonon,iriraly al transfer spending. amama'got 00 billionon. on top ththat we've tt 4 billion budget supplemental,, im not even t talng about $700 bibilln for the banks and $1 trillion foror t t fed andononef
itit's worked whenrere we g goio rediscover supplyyide t taxate incecente e fo businesses? >>s s u know, larry, that's l it's abt, prices, price work, price onisisk tataki,, pre e ofeing successful. should h hav lelenenedrom ronanald reagan, john k ken dir nonoto mention thehe 2020s, w you l low e pricee of thohose gogoodhihinglike risk taking, you get more of them. ineaeaof this czy spending which didn'n't w wor in japan, didn't workn n th'3'30sor '70s, why nott d do ied and true, reduduceororpote tax rates, recece psonal incncee tax rates gaerktss strong anan stable dollll, , to s sto all this cra reregutitionnd the economy wilil come ba?? how abt a capapit gains tax hoholiy.y. that's what r rerert mendel wans you can s spe into oblivion,, i ain't gonna work! we heepent over a tririllnn andages and incomeere falling and jobs are falling, whehen are you going g toalall is and wave the white flag o o suender,
kay.y. >> larry, y youeaiaintg me toto box i ion't belelggin. i'i'm ghght with you, w weeed incentiviveso o eate jobs. anydditional stimumuluwewe give has to bee matched by rededtiti g gernment spending. >> oh,, no >> i wantoo makeurure we don't throw w outhth babyitith the bah water. we still needovovnment investmentntnn & . >> thahat' aitittl -- - steve forbes, somomodody, you, steve forbes, you nene t to run again for presesenent d campapaig a ao ee meritits ofbusinessss new business,, small bubuneness those aree t t gines ofrorowt for thth country, i i we sentntyve e em, steve,,his economy will take of like a rocket. rit t now, itit p putring like a japanese stimulus program. >>hahat'right. itit'sust uunlshed the genius to the ameririnn people. ronald reagagangogot itit. why cacan'oboba do it there's no patents inpolitics, if he wants t t survivive politically, he's g got to be reading ronanald reagan. .
>> i have my work. wel see summerss f fst and thehn you and are goingtoto see esident obama and w we' going to telel mr.bama that k plantus is now moving onthe supply side. thank you ever s so much bototh you, i appreciate it. > > coming , palin'slalan and a repepubcacan inside rogerstst sasays pin is the most valuable commodity y psisintial cacandatate n have. there she s,s, sarah pan. she cacan ckck a hahall the waw nobody else can in conservative repupublanan ppolics. kukuow report straight ahehead mr. evans? this is nini from onstar. i ve received an a aomomat signal you've been in a frontnt-e crash. do you need hehe? ? yeyeah i' c ctact emergency rvrvicyou okay? with you. yeah.
>> u u han'tinished the job, s som w wou y.y. >> you'reotot listening to ,, m m t cocoining e statete ununtls dollars and w wasdd titime >> you're not listetengng to me andrea ititchl. i adad palinin speech, i thought ititasas serer let's talk t to donald stone wh workeds s sider forerepuican presidentsrom richchar nono president t shsh. what iss it about republicans yiyi to devevound eat thehe owown. this womanan w wan to d do the t this womanan w wan to d do the t thing, she c c energize ee titireparty. what is going o on here?? >> in fact, there's s noining ft what is going o on here?? for her accomomplh h as
gogornor. yohahavehese l lawits and etcs complaints s omomhese garden v varty left wingnututs viviuauall paralyzing h her gogovement. the e ysysf accomplishment wh oil prices were h hig andd was pros sperring g ar behindheher governor. nonow,here's nothing lefeftas governor oththhan deliver b news, painful cuts andayay even taxincreases. iisee n notng to b bnd i go staying in thihis job. this frees hero move anothehestage, in all hhesesty >> gege she cake on obama.a. ee can take on obama. the ae's ththeo, thenlnl seible theoeo, , i think cee from a a libebel,l, people are bemoaning, t the liberal media s bemoaning the palin busisine,, cacaus now newtiningrh won't be the key person, sarahah pal ll be the key peon and she can eectively take onon obama li nobody e eee can. li nobody e eee can. i think that is potentially true. cacaus of theonslaught fromom the le,, the unreremianan cacaus of theonslaught fromom beating she has taken fromhe
smug elitist dia, a a some o o her own rookie rorors she does have some rehahabitatati to d i a arg in my piece, that i in media likehis one w whi she can control her content and demonstratatnenew issues creati a nupe l linm by annining t t my and starar power shehe h h and drawing power, s,s, then you have a a real candidate.e. twtwo years here, a lifetime. kaka r rov and other conservatives s ee devouriring ththeiyoyounby attackingpalin. a quickieie. >> conventioionawisdodohey don't undedersndndt. e's an ooutdeder. if shehe runs aaovovent candidae not a party candndide.e. >> i thinknk yo areright, righ on the moneyike you a alwss are, roger ste. we h hoptoto see mee of ouou. coming up more on "the kudlow rert" tomorrow at 11:00, i'll bebe othe phone with trtris a a