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tv   The Kudlow Report  CNBC  July 10, 2013 7:00pm-8:01pm EDT

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long-term investing. no, no, no, it's not a way to be able to say i don't have to care. you should care even more. there's a bull market somewhere, i promise to try to will see yo! and good evening, everybody. or good afternoon if you're out west. this is "the kudlow report." i am brian sullivan. don't worry, larry will be back tomorrow night. and i quote, monetary policy for the foreseeable future is what is needed, end quote. that's what ben bernanke said a few hours ago in a speech. after what was a flat day for the major markets, are traders reading this right and does the fed even matter anymore? the big action was in the oil market. crude oil in the $106 a barrel
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level and staying there. that's pushing gas higher, which sounds bad but it could be a good sign and we will, of course, tell you why. if you want real excitement, you've come to the right show. we're going to be joined by the former manhattan madam that helped bring down the then governor eliot spitzer. "the kudlow report" starts right now. as you can tell, folks, we've got a lot to cover. we begin with the cat and mouse game better known as the federal reserve. ben bernanke just finished a speech in boston where some investors think he backed off his tapering timeline. others don't see it here. take a listen.
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>> highly accommodated monetary policy for the foreseeable future is what is needed in the u.s. economy. >> but futures did shoot up during the speech. there's your look right now indicating what seems to be a higher open at the open. today's release of the minutes revealed half of the fed heads believed it would be appropriate to end their asset purchases, better known as qe, later this year. crude oil settling higher than 106 bucks a barrel. joining us to talk about all of it, john here on the set tonight, zach, and carol roth, former investment banker and author of "the entrepreneur equation." i don't know how larry does it but when i'm doing the show, it's ladies first. there seems to be confusion about what the fed is going to do. >> it's funny, you call this a cat and mouse game. i call it a cat and cat game.
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there are no mice here. the fed is being looking at the market and seeing what the reactions are. they say it's all dependent on the economy getting better. i'm looking at the same numbers, the economy doesn't look so great. if you look at the jobs numbers, we had certainly a lot of increase that we were pebltexpe but a lot of that was trading full-time jobs for part-time jobs. >> it seems to me, zach, there may be mice but there ares are men, of which you are one. welcome. >> that's good. that's good. >> what do you think bernanke's trying to accomplish? does he feel like they have miscommunicated completely? >> first of all, the cold war that we've all become prompted at watching, we're trying to figure out what the governors of the federal reserve are doing and they are both fruitless
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attempting in that the nature of the beast is to speak ee lipstick clee, to speak with capacity. >> which you are doing right now. >> i am. >> what you do think the federal reserve is trying to say? >> they are not doing anything new. i think that is the most important thing. whatever happens, it's not like they are going to increase their qe purchases and lost in this whole thing is we're in a static period. the markets will eventually contract to that. they will do this as the data determines it. >> let's bring in somebody who is clearly smarter than us, which is john writing. help me help our viewers. >> brian, i think it's this. i think the fed was surprised and you can see it in the minutes at the degree of backup in bond yields that has taken place after the fed said it was
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going to, in all likelihood, start reducing its purchases later in the year. so the fed thinks we're easing at a slower rate. the market sees the beginning of slowing the pace of easing as tightening. the fed is trying to stay on message and saying, yes, it's going to be appropriate. the fed is extending its balance sheet for the next part of next year. so it's still easing but at a slower rate. when it begins to taper, the market sees that the beginning of tightening. that's what the fed is trying to remind people, it's still going to be buying but at a slower pace and not raising rates for a long time. >> john, what i think you just said is the most important thing out there and it bears repeating, which is tapering is not tightening. what will be the impact of tapering? >> well, we've had the impact of the anticipation of tapering and that was about three-quarters of a percentage point on the ten-year yield.
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we hit 2.75% in the wake of the jobs report. and the minutes were clear, if the labor market gets better, the majority of people will support tapering. i think the next big move is when the fed starts to ratchet back its purchases and even though hiking rates is late 2013, early to middle 2015, the market is going to start to anticipate it. the feds have repressed interest rates. it didn't make sense as we were a couple of months ago to have real interest rates at minus .75 and the market is doing what it is doing. so the real yield on bonds was an artificial price and it's beginning to free up. just beginning to free up. it's got a long way to go. >> tapering, tightens, the band has to come off. do they rip the band off fast or make it slow and painful? at the end of the day, the
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band-aid is eventually coming off and that's what the market is seeing and reacting to. that being said, i think it's a good thing. i think the market should be able to stand on fundamentals and not fun money and i think the time is now. >> let's change gears. everybody is freaking out about the rise in the housing prices. they say it's going to ruin the economy. i say it's not. gas is supposed to jump 20 cents a gallon in the next week. it's going to be a big jump and will it hurt the u.s. economy? >> every time someone has talked about the rising price of oil, every $10 rise is this much less in consumer spending, one, you can't prove any of this because these are too complicated. there are too many variables that the price of oil led to anything. and do people drive less because the oil price goes more? automobiles have become more efficient. they are going to continue to be more efficient.
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and so we've been in that $4 price per gallon. the price of gasoline is the only thing that people relate to as remained remarkably stable even with some volatility. don't see it having any effect whatsoever. >> john, what do you think? >> i agree. if you look at july and august last year, we saw 14% increase in crude oil prices. if you're going to compare year-over-year, this rise in crude oil is not going to be felt. i actually think there's probably a geopolitical move, that the move coincided with the demonstrations and then the overthrow of the egyptian government. and i wouldn't be surprised if we've got a little bit of geopolitical element embedded in this price rise that gets embedded in the next few months. >> john, don't you agree, that
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as we become a net exporter of petroleum, we need to be priced more to brent crude in europe and some say that's why in part we're moving up. >> oh, i'm not entirely convinced of that because, on the other hand, we're a nation that depends more and more on natural gas rather than oil which is trading extremely low relative to the price of crude oil and that's where we're going to get our energy supplies from. as a nation, as we gravitate towards using more natural gas and exporting crude oil, that to me is a win-win situation. >> but you have to remember on main street nobody cares about geopolitical anything. it's what is happening in my pocketbook. they are seeing it in inflation, gas, food, and people are struggling out there and i think it will have an impact, especially when you go from $3.50 a gallon up to 4. you're going to see a big change. >> i agree, kind of. $100 a barrel of oil is not what
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it used to be. carol, john, zach, thank you very much. appreciate it. on deck, they may not have come in first but nebraska, north dakota, did extremely well for top states of businesses. the governors of both of those states are going to join us. and later, house republicans may soon put immigration reform on the back burner because eric cantor and the rest of the gop have a new goal. postpone the new individual mandate in obama care. meantime, don't forget the kudlow credow. free market capitalism is the best way to prosperity. "the kudlow report" is coming back. uh-oh! guess what day it is?? guess what day it is!
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if you're in business in a blue state, you might want to sit up and take note. according to the 2013 survey, the top five states for business are all, in fact, red. and, in fact, 13 of the top 15 states have republican governors at the helm. and this year was a bit of a shocker. the mt. rushmore state, south dakota jumped to the top spot for business.
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that's a rock climb up from number seven where they were a year ago and two other states saw a boost in their rankings. north dakota and nebraska jumping two spots to number three and four respectively. we are joined by governor david heineman by nebraska and governor jack dalrymple from north dakota. i can understand people say, north dakota is doing well because they've got oil and gas. you guys have a little bit. you're not an oil and gas economy yet you have the lowest unemployment rate in the united states. what is your advice to states like maybe new york, mississippi, illinois that are 8.5 to 9%? >> here's what i would share with you, brian. we believe in two fundamental financial principles. we don't spend money we don't have and we lowered taxes on
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businesses and individuals at every opportunity and that's really been a great success for us. we've greatly diversified our economy from originally agricultural to insurance and technology, finance, transportation and we're just trying to do the best job we can every single day. >> you know, it's interesting listening in a high-tax state on the east coast. how does nebraska pay for services or is it just everybody anarchy funding for themselves in omaha? >> we prioritize our spending. the two most important priorities, since i've been governor, education and jobs. we want to make sure we give our young people the best education we can give them and then we want to create jobs to keep them right here in nebraska and i kept those priorities foremost in my mind every time we develop a budget, every time we focus on tax relief, we try to create a
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better environment for private sector growth in our economy. >> jack dalrymple of north dakota, you have a problem that many people would love to have, how are we going to fill up these positions. >> you know, actually, i first of all want to agree with everything dave heineman said. we're doing the same things in north dakota. actually, north dakota is the lowest at 2.8%. >> i just wanted to see if you were paying attention, governor. that's my excuse for being wrong. >> i don't want that to slip by. we're in a great position and people are coming in to our state, filling some great jobs and these are not just low-end jobs. our personal income per capita
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has doubled in north dakota in the last ten years and there's a whole lot more behind it than just oil and gas. that's kind of the conventional wisdom out there. but really we're firing on all cylinders here. >> indeed you are. because i stand corrected, you're at 3.2% but nebraska has hardly slumped at 3.8%. what do you do to manage that growth? you've got to kind of build cities out of nothing. >> well, there is a boom going on out in western north dakota. there's no question about it. our state has committed to keeping up with the infrastructure necessary to let that happen and it is a big commitment. we are sending billions of dollars into western north dakota and roads and highways and law enforcement and all of the things that you need to do. but the production coming out of
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our state really is remarkable. and we've gone from being down the list quite a ways to being the number two oil-producing state in the country. >> dave of nebraska, how do you keep the plan going? what is your plan for the next few years? what can do you? >> first of all, i want to graduate jack on that low unemployment rate. i'm still trying to catch up to him. >> you've been catching up, dave. congratulations on that. but we're still a little bit ahead. >> you're still a little bit ahead of me. we're focused on additional tax relief. we eliminated the alternative minimum tax and expanded the net operating loss provisions for small businesses so they can carry losses forward. for 20 years now instead of just five. we're undertaking a major discussion to significantly reform our income tax system in the next legislation session in
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january of 2014. so it's really about fiscal discipline, continue to control your spending and lower taxes whenever you can. >> and so dave heineman, i'm going to challenge you on this. jack dalrymle's maximum income rate is 3.99 on over $80,000 a year. are you going to lower or eliminate the state income tax of nebraska, kind of pull a texas, if you will? >> if i had my preference, we would completely eliminate the income tax. i think we have an opportunity for that. but at the very least i'd like to lower it. i'd love us to get down to a 3% if we can't get all the way to zero. >> what about you, jack dalrymle? a number of stay have already do done it. >> you know, i think we could do it but so far we feel like it's
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another tax type and we are interested in some balance in our tax system out here but we've been lowering all the taxes. we've been lowering property taxes and basically lowering systematically individual income taxes and corporate income taxes. so part of this secret, you know, is to have low taxes and then have plenty of fiscal discipline and then invest in infrastructure. that's where our money is going. we're investing in the long-term fu future of our state. >> governor, gentlemen, thank you both for joining us tonight on "the kudlow report." take care. >> thanks a lot. meantime, big developments in the boston marathon bombing case and the zimmerman trial. bertha coombs will get you updated on those stories and more, next. ♪
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things got a little bit weird today at the george zimmerman trial in florida. bertha coombs is joining us with that story and other headlines topping your stories tonight. bertha? >> good evening, brian. here's an image from the trial today. defense attorney mark o'mara on the floor beating the dummy's head into the ground. the prosecution introduced the witness to show zimmerman wouldn't have been able to reach for his gun if trayvon martin had been on top of him.
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o'mara tried to show that the injuries in back of zimmerman's head could have been caused by him being slammed against the cement. dzhokhar tsarnaev pled not guilty today. he had supporters there saying that he was framed. walmart will increase minimum wage 50% to $12.50 an hour. walmart has three other stores under construction which it may walk away from. major leaguers caught up in the bio genesis scandal. that includes alex rodriguez, ryan braun. a doctor claims to have provided them with performance-enhancing
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drugs. they will announce the suspension after next week's all-star game. that's too bad, isn't it? >> it's tainted a game and then you look at the tour de france. you have to rebuild the trust. i'm interested in the walmart story. is there some belief that walmart could walk away from three partially built buildings? >> it's hard to believe, isn't it? >> i think you continue the construction and open the stores. >> that's what you would think. >> whether or not they can be profrt tabl profitable, don't know. but the public relations hit may be more damaging. >> it's in the same instance of when you had these large restaurant chains saying they were going to cut back on hours in order to avoid the aca, affordable care act, what some people call the obama care rules. that really caused a tremendous backlash and you're also talking about the people who are
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working -- who work for you are often very much like your customers. your customers are very much like them. >> henry ford model, right? >> you have to have people that can afford the product that you're selling. >> right. if they are working class and think they deserve a higher wage, that walmart would take a stance against it. >> well said, bertha. thank you. it seems like everyone is making the economic case for immigration reform and that makes sense when you talk about relaxing the rules for the so-called brainiacs, the college educated. we'll have the latest on that. and the gop push to delay the individual obama care mandate. those stories and more coming up when "the kudlow report" returns. ♪
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welcome back to "the kudlow report," everybody. i'm brian sullivan. you have now successfully survived the first 30 minutes of the show. here's what's ahead. you can still hear the ads on the radio and see them on tv, telling you that municipal bonds are 100% safe. tell that to the bond holders
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for the city of detroit. they are facing a major haircut and they are not alone. could muni bonds losing that safe reputation for good make it more expensive for your city to buy? and the same former madam who helped bring down governor eli eliot spitzer is now running against him. first, immigration reform. is it on the ropes? the white house admitting that getting a bill through congress is always an uphill battle. here now is ace political reporter and cnbc contributor, robert costa, jose hopes to join us and syndicated talk radio show doc thompson as well. before we get to immigration, bob, you've got something to share with us on obama care?
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>> house majority leader eric cantor told his colleagues that they are going to try to repeal the individual mandate. they think they can make a real case on the individual mandate because the administration is not trying to stop the employer mandate from being implemented. >> that's incredible. how much money are they going to waste? >> they keep trying to repeal obama care. it's over and over. you can really roll your eyes at it and say it's just political messaging but because there's an employer mandate, they are trying to come up with a political response and their response is to stop the individual mandate and take it up with the senate for a vote. >> i understand that a lot of people don't like the obama care or the individual mandate. the reality is, it's the law of the land, doc. >> absolutely. >> anybody, regardless of what they believe understands this, there's only so many hours in the day. whenever congress is, working on that, they are not working on something else. >> did you see the numbers? i think it was 75 million, if i remember, is what they are saying they've wasted trying to
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repeal it all those times. my question is, why does it cost almost $2 million each time they have a vote to repeal something or pass a legislation? $2 million every time? seems a little pricey. >> there's a lot of politics involved with this. think about this. part of the politics is if the senate agrees to stop the individual mandate, maybe the house gop will agree on an immigration bill. >> why are they related, though? i understand politics, you have to tie a bridge in because you want to sneak it through. why can't they be done separate and distinct because they are separate and distinct issues? >> that's a great question. they think because the administration is stopping the implementation of the employer mandate, they were wondering, for instance, on immigration whether the administration will implement border security provisions. they are trying to put the heat on the administration to come through and follow through with the policy as tax the
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administration on the obama care. >> it's not just the implementation of the obama care and employer mandate. it's three distinct pieces of legislation or issues when it comes to immigration in general. it's the illegals that are here, it's the legal immigration and border patrol and protection. what they need to do is separate those. they can pass those, recraft the legal immigration policy. the only reason they've grouped these together is to try to hide amnesty behind it. >> part of the reason there's a com comprehensive bill in the senate, the house is trying to split immigration. i wonder, can anything but a comprehensive bill pass this congress? >> what do you mean, that's the only reason it can pass the senate. it's because they are saying they want comprehensive immigration reform, to my point, to hide amnesty. >> well, look, past the legalization that was part of that senate bill is going to be part of a house bill.
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the republicans are very resistant to having a path to legalization. to get anything through a democratic senate, you're going to have to have legalization. >> has anybody noticed that the number of immigrants crossing from mexico to the united states has gone from about 500,000 five years ago to 100,000? the economy of mexico is doing so well that mexico just surpassed as being the world's most obese nation. that's true. hardly anybody is sneaking across the border anymore because of the good work of the border patrol but it seems like we are arguing about things that were important five years ago to me, maybe larry, getting the path to citizenship, millions of americans living in this country not only afraid but also not paying income taxes. right? they are paying sales taxes on what they buy but not income taxes, not health care. how do we get that resolved? you've got to figure out a way to integrate them in the economy so they are also participating members of the taxation system
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on the federal and state level you disagree? >> i disagree. >> you've got to get rid of them. >> where are they going? >> that's impossible. >> you're buying into the narrative when it came to the george bush amnesty plan that we can't kick them up. why can't you round them up? financially? we spend $4 billion each and every day to incarcerate 35,000 felons. $35,000 a day. >> how much do you think it would cost to pick people up and -- >> it's not going to happen. >> buy them a plane ticket. >> i've got to tell you, it's completely wrong. these people -- many of them -- >> why is it wrong? >> many of these people have been here for generations, busting their butt because they are trying for a better life is why. if i lived in one of those
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states strived with drug violence, you're damn right i would try to be getting a better life. i'm lucky to be born here. >> i want a better life so i'm going to come in your house and maybe live in your living room. is that all right? >> bob, what do you think? we clearly don't agree on this. >> when you talk to republicans in congress, they say only the most conservative members of the republican party are trying to get away from this path to legalization. but the way i see this playing out in congress, it's going to be a border security bill that comes out and the senate is going to have to consider the conservative options on border security and perhaps a path to legalization that is blessed by people like paul ryan that has been pushing for more a conservative approach. that's what's going to happen this fall. >> guys, we now are joined by jose. jose, i don't know if you heard doc and i had a heated discussion.
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>> i did. >> i grew up in los angeles. my schools growing up were pretty much 50% hispanic. i saw a lot of families struggling. they were not members of the society because they were not legal but they were trying to make a living. how do we integrate them into society, not as a freebie, so they pay taxes, not just as sales taxes. >> i'm in miami, florida, as i step out the studio, you see all of the small thriving businesses in this community, all of the people that come here for a better way of life and that's what makes this country so special, the fact that it doesn't matter who you are, what your last name is, you work hard and you can make it. a lot of families come here to lead a better life for their children. the notion that they collect benefits or take something that doesn't belong to them, that's wrong. the truth is, whether it's legal, illegal, they try to find a way to get here, they look for the hopes and aspirations that they can only fill in america. >> i can't wait to get my check for $20,000 for my wife and
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$20,000 for my mother-in-law, both of which immigrated here legally and it cost them about $20,000 each when the whole process is said and done. who is going to pay that back? what about those people that had to pay the money to do it right as opposed to the people that just came across the border because they wanted a better way of life. >> on the financial argument, though -- >> let's jose answer. >> the reality is it's easy to go on tv and say things will illegal immigration or legal immigration. there's a system that is broken. laws that haven't been changed since 1950. a lot of people that come here come with a visa. they come here with a visa as tourism and the system is so bad that they overstay that visa. i think we need to fix that, first and foremost. the illegal immigration is something that needs to be addressed at a national level and there's an economic
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implication to that and that's why you have so many businesses that use agricultural communities that say we need this labor force. >> okay, jose, let's find maybe a common ground. i'll agree with doc in one sense. my family has been a couple hundred years, whatever, my family who has died in war, building up, paying taxes for generation, would you support a path to immigration, jose, that would also include some sort of a payment, if you will? >> and i think if i'm not mistaken, the senate bill has that. it does have a payment that needs to be paid and a process that can take up to 15 years, in some cases, and who knows what's going to come out of the house. most hispanics say they want that fairness, those waiting in line or nonhispanic immigrants, they want to make sure those waiting in line, that they do have their place in line and that the folks who are now -- >> if it was -- i'm talking to doc. you're more a hard-liner on
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this. would you say you can basically buy your citizenship? >> if they were willing to truly do it but the bill he mentioned, the gang of ochoa bill, it allows loopholes so they don't have to pay it. >> he's back to johnson now. >> when they say people are going to have to pay their back taxes, they are not. when business owners are behind this, the reason they are behind it, this offers amnesty to the businesses that have hired illegals all these years and wipes out any retirement that they have to backpay payroll taxes. >> what is amnesty is the system that we have today. it's a broken system. and the reality is that something has to be done. what i would say to people who are opposed to this process as a whole, what is the alternative? what do you propose as a construction solution to fix this problem? and that's what we're not seeing
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from folks criticizing this issue. they have a lot of complaints and comments that they can make about it but nothing constructive that's being proposed. i would love to see that. i think a healthy debate is ultimately going to get us a solution to this problem. >> i think we just had one. by the way, thank you. jose, bob, doc, stick around. we're going at it about something else. >> it's been a pleasure. thank you very much. >> thanks a lot. well, if you watch a lot of cnbc, and we certainly hope you do, you've probably seen this ad. >> a state, a city, an authority can afford to borrow and repay from the fruits of its productivity gains and economic growth. and the record of municipal bonds for keeping that promise is considered second only to the united states government bonds. >> wow. but is that true? detroit is close to handing its bond holders a major haircut. some other cities and states are
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how many times have you heard an ad like this? >> even with conventional wisdom, guarantees are few and far between. but when you invest in knew miss pal bonds assured by assured guaranty, every dime is guaranteed. >> tell that to the people who have invested in the city of detroit. the city is $19 billion in debt and may be the largest ever bankruptcy which means big losses for bond holders. detroit is just an alogory for so many other places, stockton, california, rhode island, jefferson county, alabama. here at the manhattan institute, we continue with doc thompson. you and i have talked a lot about this. if municipal bonds -- i know
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people say, screw the bond holders. if they are worked over on this, what's the borrowing costs going to be for other in-trouble cities like chicago, l.a., and more? >> this time it's different for this reason, the costs that are bringing down cities like detroit are retirement costs. those are contracts. so you have people who have been warning bondholders for some time now saying -- this is not like new york in the '70s where they were overspending on programs, let's cut the programs. these are pension costs. those are contracts. >> detroit and chicago have largely become pension plans that people that live there. >> yes. yes. >> 100 billion in underfunded pensions. >> l.a., too. >> absolutely. >> this is going to shake out badly. and i believe chicago -- and i love the city, my wife is from there -- chicago is not far from
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there. >> they have right now more revenues but they have the same problem looming down the road. the mayor of chicago romney emanuel said if we don't fix this problem, no one is going to want to buy a house here. businesses are not going to want to locate here. he raised the "b" word, bankruptcy, and the los angeles times wrote about it. they are not funding their liabilities and what is happening around the country, until there's a crisis, these places are not confronting that. >> and you talked to the pension funds, right, doc, and they believe it's a great conspiracy where money is swirled over here and they are trying to turn the screw on them. you might be that a little bit but 100 billion in underfunded liabilities? >> detroit's costs are 38% of its budget. i used to live in detroit. the metro area, anyway. it's a disaster. you're right. going forward, this is not
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something that you can clean up in the next couple of years. each one of these cities, it's not just, you know, like we said detroit or stockton, california. it's coming to more and more. who is going to invest in those cities? how do you bring more money in? whether it's manufacturing, retail -- >> everybody hates the bond market until they need money, right? you hear people -- especially on the left side say, the bond market. they bash it. what did james carville say? you need them. i tell you what, here's a note to america. if you don't care, don't borrow money. if you don't want to be subjected to interest rates, the bond market, and the fed, don't borrow anything. >> first of all -- >> live off the financial grid. >> municipalities and states love the bond market. they do not hate the bond market. >> people do. >> i don't know who the people are. >> individuals. >> the other point you into he had to understand is there are two forms of borrowing that have been going on in the state and local government for the last 20 years. one is borrowing through bonds.
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the other is borrowing through pension funds. 29 states underfunded their pensions the last time that this was studied. in other words, what they are doing is they are running deficits by not adequately every year funding their pensions. it's a form of deficit funding. and that is building up on this side. >> the other problem is, too, these people were promised something. i understand government workers. i'm the first one to criticize them for getting sweetheart deals. but if they were promised something, they should be made hold as well. a lot of them took less money in favor of pensions and less stuff down the road. ultimately we know who is to blame. the politicians who didn't want to go to the taxpayers and say we've got to pay these people more now. >> part of it -- >> we've got to go, steven. i don't know the guy and i don't have a stake in the book, but read it. it came out a while ago. i finished it in three days f you want to read about the
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ultimate functionality, money for firehouses that didn't exist, people not paying taxes because they have no services but there's no services because they are not paying taxes. that's the toilet bowl of a city finances. i don't know charlie. seems like an interesting guy. i'd like to meet him some day. steven, doc thompson, thank you. eliot spitzer cannot hide from his past. kristin davis steer yous about the job or is this getting personal? she's here. there she is. we're going to ask her. i'll be nice. i would say my car. probably the car. cause as you get older you start breaking down. i love my car. i want to take care of it. i have a bad wheel - i must say. my car is running quite well. keep your car healthy with the works. $29.95 or less after $10 mail-in rebate at your participating ford dealer. so you gotta take care of yourself? yes you do. you gotta take care of your baby? oh yeah!
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former new york governor eliot spitzer speaking out on "squawk box" about his run for new york city comptroller. listen to what he said cnbc this morning. >> whether there will be redemption is something that the voters and public will determine. throughout my career i have deferred to the public. the jury rendered a verdict i respected, even if we might have agreed or disagreed. as attorney general, as governor, the general will render verdict and will be comfortable with whatever the case may be. >> one of his challengers for that job, though, is the madam who forced his resignation but she also has a long running at accounting and used to be a senior vp at a hedge fund.
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kristin, welcome. a lot of people think this is a stunt by you. is it? >> a serious campaign. i was nominated by the libertarian party in april and we filed in june. i've been in this race -- he actually jumped into my race making it the circus and becoming candidate date number nine. >> so spitzer joined the race knowing you were in the race? >> right. >> it's a weak opponent. the republican is an unknown. he could use his money to challenge my petition for knocking me off the ballot and silencing me forever and walk into this office. >> spitzer is saying that he's healed. you're rolling your eyes. >> he's a career criminal. he broke the man act by transporting a girl five states.
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you know, he is as a long career of not servicing the public, servicing his own needs. and so why -- >> part of those were in part business with an industry that you used to be involved in. >> yes. and he has a point. everyone deserves redemption. however, he was attorney general. >> because you're asking for the same redemption. >> yes, but i committed a crime and served my time. i forfeited everything that i owned and paid my debt to society. he, as attorney general, prosecuted agencies while he was using them and then in 2007 made it a felony for a man to get caught using a prostitute and he's never been held accountable to any of his actions. why should we trust him with our money? >> a lot of people don't understand the role of the comptroller. we just talked about pension funds. it's the accountant for the city. >> it's protecting the city and
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taxpayers' money. >> should we trust you? this is a lot of money we're talking about. it's people's lives. >> i don't think people understand about me my background is finance. i spent ten years as senior vice president of a hedge fund. i can find a penny in 10,000 transactions. i spent my entire career in the private sector. we're looking at scott strin ger who has no financial or management experience and eliot spitzer who also has no private experience. he doesn't answer a question and doesn't give us the truth. he goes out there and says whatever he wants. >> to wrap it up, i'll give you 20 seconds to tell people why they should look past your past. >> they should look past my past because i paid my debt to society, i've served my time, i've dedicated myself to a nonprofit called we stop
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trafficking and i care about new york. the other two are career politicians and that's what led us to $2.2 billion deficit. >> and you did that in about 21 seconds. so you are good with numbers and time. kristin, thank you very much for joining us. >> thank you for having me. take care. ♪ [ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this all-new cadillac xts for around $399 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year. hooking up the country whelping business run ♪
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>> beyond the las vegas strip, there's the shadowy underworld of illegal gambling. >> everybody's doing it. no one wants to talk about it. let's regulate it. >> but in this underground economy, fortunes are on the line... >> the gambling world is set up for suckers to lose. >> ...and lives hang in the balance. >> all of these crimes that are used to intimidate people, to bring them into line, to punish them occur as a result of attempts to try to keep the money flowing.


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