tv The Kudlow Report CNBC September 25, 2012 7:00pm-8:00pm EDT
do obama's gaffes go unpunished. the kudlow report is moments away. >> the bears won. but i don't think it was convincing. i'm calling it a five or six if we were bowling and using the replacement refs to figure out what the score was. see you tomorrow. larry, what do you have for us? >> good evening. everyone this is the kudlow report tonight. replacement referees in the nfl fans, players and politicians say this has to end take a listen. >> did you guys watch that game last night? >> i mean, give me a break.
it is time to get the real refs and you know what, it remains me of president obama and the economy. if you can't get it right it is time to get out. >> the league is being put to the test of whether the nfl shield is truly bullet proof or will the $10 billion brand take a big hit and whether the ref's union to blame. fran tarkenton joins me to tell me what is going on. police clash with protesters and fire rubber bullets into the crowd. the protests seem to worry investors here as stocks slid late in the day the dow well 101 points. media jumped all over romney's remark. you hear very little when his
opponent makes the gaff. is obama giving him a free ride? ann coulter is going to weigh in. the candidates are laying out their vision of the economy and the world. >> good evening. >> good evening, larry, foreign policy took front stage in the national campaign today as both candidates were in new york today making their arguments around the world starting with president obama addressing the general assembly today. >> there are no words that excuse the killing of innocence. there is no video that justifies an attack on an embassy. there is no slander that provides an excuse for people to burn a restaurant or cause death and destruction in pakistan.
>> meanwhile, mitt romney was over at the clinton initiative where he talked about how he would handle foreign policy. he said he would handle the way the united states handles foreign aid. >> a temporary aid package can give the economy a boost and employ people for a time but it can't sustain a economy for a long-term. it can't pull the cart. at some point the money runs out. both candidates for president appearing before former clinton. making a joke there. solary, a big day of foreign policy in new york today. >> i saw a bit of this. mit romney's idea that he want to leverage u.s. aid through
private corporations to underdeveloped countries. but we already have the xm bank. a lot of people see that as more corporate welfare. was mitt romney giving us more corporate welfare? >> what he wants to have is a more sophisticated partnership. he doesn't want to be writing checks to the foreign governments. he wants a more sophisticated interplay. that was where he was going with this. but he cited the initiative as the model that he would like to pursue. he said what bill clinton has done is a model for how far rin policy can go. many thanks. >> let's get right to our guests. retired four star general. general mccaffery, can i get
your take on something, iran saying they have a big missile test and is this bs or is it real? >> i think they are trying to project eemense military power. i do think they have the batteries to close down the gulf for any kind of confrontation. military force is not the option in the gulf. >> but you could surmise that they were taking this test. because ahmadinejad was talking on the news yesterday.
normally they would show us pictures. i'm skeptical, did anything happen at all or is this off the radar screen, nothing, zero? >> they have constructed a m missile industry and a lot of it was the russian defecting scientist. this is a third tier military power. >> let me ask you this, once again, president obama today at the un blamed the famous video for the awful killings in libya and around the middle east. but he still talked about the video. three paragraphs worth. sir, down the we know already from our counter terrorism experts that the video was not a
problem and these were terrorist acts and preplanned? haven't we established that as a fact? >> well, look, you know, i actually listened to his speech i thought he probably came down where he needed to be. he was forceful and the right to blast christianity. i thought this speech was strong. at the end of the day the jihadists have capitalized on these and other issues. it is threatening and troublesome. the situation in egypt and yemen and iran afghanistan and other places. it is troubling, you are right. >> i have some breaking news thank you sir for helping us as
always. wells fargo, the latest major american bank to have this problem for the next ten days. a group called the cyber fighters say they planned to attack the wells fargo web today. >> all right we are going to go back to general mccaffery. i heard senator lieberman talking about this. that there was cyber hacking going on. here we have this announcement that suggests cyber hacking into wells fargo. do you think this is part of their game? >> the threat to our existence is weapons of mass destruction. we are under attack hundreds of thousands of attacks a day on the economic system.
we have to spend more money and get smarter and make more effort and protect systems and computers. do you think they would use this to go on the offense? >> no question. we have clearly the chinese and others build the capability during the event of all out war to use cyber warfare. we are probably the best in the world at it as well. this is deterrence. most nations are going to be reluctant to pick up the cyber warfare tool. >> appreciate it. coming up folks, nfl fans fuming over last night's feeiiasco. fran tarkenton is going to join
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last night the game ended on a controversial call to put it mildly. this by the nfl's replacement referees. for some, it is the last straw who believe the game of football is going to be ruined by this. good evening brian. >> what a story larry. and it is something that has transferred into a political story. the last play of the game look at it. looks like green bay intercepted the pass to end the game. one referee said seattle walks away with a shocking win. >> they are locked out right now and the ones who blew that call
are replacements. today the story has not gonna way. the league put out a statement and the players released what it told it's players we are actively reviewing any and all actions to protect you, and you is the player. president obama tweeted nfl fans on both sides of the aisle hope the refs lock out ends soon. >> give me a break. it is time to get the real refs. and do you know what it remamin me of president obama and the economy. if you can't get it right it is time to get out. >> the nfl does not want to support a pension and it wants to increase competition among the referees to perform better. these are classic labor issues in 2012.
>> let's get to tonight's very special guest here now is hall-of-fame quarterback fran tarkenton. he took his team to the 73, 74 and 76 super bowls but you also played for the new york giants. i'm a fan. wonderful to see you fran, we know what the problem is, in your judgement, what is the solution? >> it is a terrible problem. they made a terrible mistake but they blew two pass interference calls against green bay that never should have happened. they should have changed the play. we play 16 games in a year. you play 162 baseball games. a loss is a devastating thing. the nfl messed up in betting and getting the right referees. there are plenty of referees to
do this. what the referees are doing, they shouldn't be doing that. because, they want to keep the plan. corporations cannot do that anymore. the only people that can do that, they can put them in a 401 k plan. they don't want commission gadel to fire them for lack of performance. why would they not want that condition? >> you know, just on that union kind, you raised the issues. i did a little bit of homework. the average pay is 149,000. they are proposing to jump up to 189,000 by 2018. all expenses are paid and it is a part-time job. it is $750 bucks per damegame.
if the nfl takes your advice and gets better trained refs they will get a better business decision. >> the nfl made good business decisions and they don't want to make a sloppy business decision and put us in the debt that they are in there. >> fran, brian shackman here, as a former player, maybe the union wasn't what it quite what it is today. do you think they are trying to end this dispute? >> no. the player's union, we are not guarant guaranteed playing time then or now. these referees have no power. people are not buying these tickets and watching television to see referees. they want to see the players and see the coaches coach well. the referees are just a
necessary evil. >> fran, you hate to say it, but there is a school of thought that say the ratings are sky rocketing. i'll give you the last call. i prefer to see good football. >> i want to see good pro football but i don't want to see the union guys to put the gun to the head of the nfl. they need to clean it up and they can and i believe they will. >> many, many thanks to fran tarkenton and brian. >> coming up. cut backs and tax hikes. nearly 1,000 police forced to block parliament in madrid. we'll have full details. but none of this is scaring off ken he'dner. he is bullish on america. and we'll hear from him in a
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sorry there was a snafoo with getting to the studio. >> no problem. >> the state department people acknowledged that this was a counter terrorism problem why is the president hanging onto this video? >> he was an able man and his family and friends deserve our sympathy and support. what he doesn't deserve is stone walling by the white house to devert and deny. it was terrorism and it was planned. we had the comment and the house congre congressman rogers talk about this. there is a narrative that is out of touch with reality. this was a terrorist act and it
was preplanned. just by happenstance it was on september 11th that these things happened? >> we had homeland security peeppeep peter king on the show. it is a falsehood. are you suggesting that president obama is also perpetrating the falsehood? >> i don't know what it is. the president obama strategy throughout the middle esast is
mess. we have iran on the verge of a nuclear breakout. we have 25,000 people killed in syria and 20 embassies surrounded four of which were breached and a black al qaeda flag raised. >> i'm sorry we are out of time because of this. let me ask you this, do you think that president obama's speech today was tough enough. did he spend the right signals? is. >> no. >> no, he never used the word terrorism. he talked about iran and the peace process the same way he did in 2009. it is a band-aid to get beyond the next days. he should be meeting to advance our interests.
>> thank you very much, sir appreciate it. onto the next one. police clash with protesters in spain. thousands rally. cnbc's own michele caruso-cabrera joins us live. >> today it was madrid. we saw thousands of protesters in madrid trying to surround the parliament there. clashes with police. they beat them and shot them with rubber bullets as well. this went on into the evening in madrid. the reason they are out protesting today. on thursday there will be a new budget announced in spain. it will have cuts announced in salaries. instead, it will say you are not
going to be indexed to inflation more. all kinds of things to try to deal with the deficit problem and these protesters are unhappy with the cuts that have happened. they don't want to see more of them on thursday. they need to do something. back to you. >> who are these people in the streets? >> that is a good question. most protests that you see in europe are orchestrated by the unions. this was more about younger people being out there. this was not organized by the unions even though they have been activity with protests in madrid as well. they have unemployment that is extremely high. >> live from madrid, spain. none of this seems to be scaring off veteran money manager, ken
contributed to the sell-off today. the dow dropped down to over 100 points. ken, great to have you. let me just have you, does it throw a monkey wrench into your optimistic monkey view? >> no. i think they are all agreed on a program to have more them doing the os teterity they are doing, they are going to support the ability of these countries to stay in the euro joazone. >> very interesting, as you know quite well, the federal housing authority released it's home prices today. median home sales are up about 10.5% year on year. how does this home price
improvement go into your al algorhythms for your stock view? >> i think it is going to p provide major strength. >> it hurt consumer confidence a lot. i think it is going to be a major positive influence on consumer confidence. the home building industry which is operating about a third of its peak is operating below household formation and repla replacement leads. it has to grow a lot. the result of that is, i think they are going to have trouble catching up and home prices are going to catch up. >> it looks like a nexus. you have the home price improvement that you describe. and you have the stock price
improvement and you have improvement in consumer confidence. is this a change? is this whole 2012ing a game change year? >> i think the home building change is a game changer? it has been absent and now it has arrived. i know there are forces that we have to worry about. and the budget crisis and the cut backs in spending and tax increases. but we have a very powerful influence at work here and one that has been the powerful force. >> i want to come back to the washington story. ken, what is your favorite investments now and your
strategy. but i wouldn't pick them right now for the best stocks. i think retailers and i think the big banks because in new york city which are so lahated, but you have a better stock market and a better out look for our economy and banks like citigroup that our power houses and financial leaders. and i think general fear about the world and the economy and uncertain uncertainty. >> we reported in break that apparently there is more terrorist cyber hacking. as you know there was speculation about jp morgan. does that bother you? how does that affect a veteran pro like yourself? >> you have to believe in the
ability of our country to defend itself against the attacks? it could happen anywhere. you have to believe that we are doing a lot and we are smarter than our adversaries. >> let's go to the election. you have a 50-50 race. >> it looks like a tossup for president. the house will stay in republican hands but no one can be sure. >> how does the risk affect your strategy. i think the sentiment is that obama is probably going to win. i have been pleasantly surprised to see how the stock market has been in the polls. i think if the election were here today obama would win.
but, so that basically if romney starts to do better i think that is good news for the stock market. by hook or by crook do you think the hook will be solved? even congress doesn't want a recession. i don't care about the composition of congress. they know that a $450 billion tax hike will doom us. do you assume that they are going to get through the fiscal cliff without falling off it? >> i would say this though, i think there is enough strength from the home building and the rising house price impact on the economy, that if we do go over, that i think we will avoid a negative consequence and bear in mind that the open-ended
decision by the fed to go to qe 3. i think he will be there with a lot of stimulus if we do go over it. i suspect that we will make a deal. the noise level is high that the intensions to come to people they don't want to admit it. they want to fight with the other side. >> thank you so much for your out look. business economists and a new survey say that governments should not cut spending. budget cuts are like tax cuts. but we will debate next up on the kudlow report. want to try to crack it? yeah, that's the way to do it!
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new survey out shows that business economists believe the government should avoid spending cuts in 2013. after all, president obama's failed spending policies have produced this anemic economy in the first place. but enough from me. art laffer, and a former adviser to former president ronald reagan. i thought you and milton friedman told me that the tax burden is in fact the rate of spending.
why are these economists saying it is not true? >> who knows. you are right government spending is taxation. pure and simple. it doesn't recreate resources it takes them from one group and gives them to another. every time we have had massive government spending we have had a problem in the economy. it is true. in 2007, 2008 when the crash occurred those were the biggest periods of government spending increase. as you may have seen my piece on 34 countries, those that have the biggest spending plans have the biggest declines. and the same thing happened after world war ii as you know. we had massive spending cuts from 44 to 46. and the economy boomed as never before. >> so here is the thing. this is the national association of business economists.
this is not the worker's socialist union. and look, these guys are coming out, they are coming out with two points that i have made on the show. they are in the midst of the n econo economy. these are guys who are in the business community and they say two things on the show. they say in the short-term we need more fiscal stimulus to bring down the unemployment rate and they need spending cuts on the other. you had 90% of respondents saying that there had to be a combination. >> have you heard an economy being taxed into prosperity? that doesn't make sense. i mean actually, the government is not going to create the prosp prosperity. it is the private sector that
will do it. here is the thing. art and i will in tro tal total agreement when unemployment is at 5% we are like peas in a pod. but when the economy goes south, that is when this makes sense. >> no, but why do you stray from the correct answer when the economy is in bad shape? you should stick to your answer. clinton cut government spending by more than the next four presidents in u.s. history. >> we are not going to settle this. so i have to relegate my answer. >> the national association of business economists. this is not a radical group.
they are out there in the economy and we need growth. look at the markets. why is it that every time we have something, the markets get a big bump. they want growth. >> look, i think the markets have gone up in the last few years because of profits. i'm not going to give the fed credit. >> it gets bumme s dumber. these people 2014 they want to jack up taxes. they agree with jarod bern teen. i love him. he is a great human being. but for them to go with him and follow him down the path of jacking up taxes is beyond my scope of understanding.
>> we didn't talk about their support of the volka rule and the too big to fail. >> in some sense i may agree with jarod on one thing here. i would like to see more taxes but i don't want to see tax rates higher. but i want to employ more peemt. so i want to follow simpson bowles and broaden that base. >> that is good. we can end on a note of agreement here. >> that is a great plan. that had $600 billion of stimulus in the first year. by the way, you guys are with these folks on the broaden the base, lower the rate. >> i got to get out. al is talking to me about a
consumed income tax. which is an interesting proposition. thank you very much. you shoulden list as a business economist. and art it is great to see you. coming up, we are going to be graced by the presence of ann coulter. she is going to tell us why the main stream media is going to turn a blind eye to the president's recent gaffes. that is up next. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice. go national. go like a pro.
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it was a crude and d disgusting video. >> there are going to be dumps in the road. in a lot of these places. the one organizing principle has been islam. the lesson i have learned is that you can't change washington from the inside. you can only change it from the outside. >> isn't that what you campaigned on in 2008? >> seems like the main stream media has turned a blind eye on the recent gaffes. ann coulter, latest book "mugged" is available now. and there it is a total picture. first of all, what is he talking about a bump on the road.
we had a famous ambassador all killed by a terrorist. >> if jimmy carter said that they might report it. but they won't report it because he is black. the first hundred years they won't treat them like humans and the second hundred years they won't treat them like adults. >> he will give them something to work with now and then with travon martin and henry who wis gates. >> remember geraldine ferraro said that he wouldn't be in the position he is in if he wasn't black. but when she says it, all hell
breaks lose. and she said the same thing about jesse jackson when she was m mondale's vice presidential candidate. she said millions of people disagree with her. >> you are saying that obama leaves the door open for it. i think he is making big mistakes. they are all a bunch of liberal d dem crates. for example, the guy is at the un today. we know from the counter terrorist expert that this was a terrorist planned attack.
why does he go out there and blame it on a video? >> he called it a falsehood. why is obama continuing this falsehood? >> he can say whatever he wants to and all the media will talk about is how sexy he is on "the view". >> you would not get this kid glove treatment with jimmy carter. and lucky, new yorkers learned their lesson the second time around. they voted for giuliani and look at how the city has changed. it has always been a disaster. and you feel that is the issue right now among the major media? >> i mean they should be guilty because they are democrats and the history of civil rights are black people and republicans fighting democrats. >> can we stop there? yoo my limited history is that
it is the republican party going back to reconstruction that tried to lead the way for black representation in congress and later on the clock turns. >> for five minutes. >> and then it is the 60s and the the 70s with the crazy southern democrats. >> it is so awful. they pass the 14th and 15th amendment and throughout the 20s and 30s and 40s. every republican platform included calls for anti-lynching ledgislation which was consistently blocked by the democrats. right after brown versus the board of education, they ran a segregationist on their ticket. and who pushes through the civil rights laws, all the way through
until finally in the mid '60s. lbj switches to opposing the civil rights laws. and they cared about the blacks for five minutes and then they mores onto talking about rights for girls that want to have abortions. they have dumped the blacks and moved onto larger voting blocks now. >> i am. he comes out with 47% remark and his own party is beating him over the head. my pal bill christy killing the guy. were they too hard on him? >> he was talking to donors he it was a secret tape he was making an obvious point. he was saying they are rejecting me so i might as well not waste
my time campaigning to them. that doesn't mean that when you become president -- obviously, ronald reagan's policies did more for poor people and lower middle-class people than certainly the policies of obama? >> can romney win? >> yes. >> 23 million unemployed. >> why are our conservative brothers and sisters so panicky. i agree with you. we have to see the debates. i didn't think the convention was very good. >> i loved it. >> i was there and i covered it. finally this week he is talking about tax cuts and take-home pay. >> he has to talk about obamacare and obama care. >> i have a type of romney today. watch this for a second.
we'll get your response. >> thank you mr. president,. it is an honor to be here this morning and i appreciate your kind words and that introduction is touching. if there is one thing we have learned in this election season by the way, it is that a few words from bill clinton can do a man a lot of good. [ applause ] >> all i got to do now is wait a couple of days for that bounce to happen so. >> in all honesty, okay how can he not be likeable. that was a nice thing to say, clever. maybe somebody gave it to him. >> i think he is very likeable. he is a square. >> hip has nearly wrecked the country. let's try square. >> obama is a little too hip you think? >> oh yes. the world is exploding the unemployment rate so many
people. i know so many people that have gone out of business because of obamacare. >> ann coulter. latest book out today? >> out today. >> "mugged". the book is out today. there is a picture of the book. go out and buy it everybody. you are going to come on the radio. >> that is it for tonight's tv show. thank you for watching. more on that later in the week. [ man ] not only that, the silverado's powertrain warranty is 40,000 miles more than ford. and this workhorse gives you the power of a v8 with the highway fuel economy of a v6. incredible! right? an amazing test drive. i agree.
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