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tv   The Kudlow Report  CNBC  July 12, 2012 7:00pm-8:00pm EDT

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our winner and his beautiful family came all the way from the heart of cramerica. to the rest of you out there, keep the hash tags coming! let's get to 1 million! we do not like a lot of the market. it is the worst of times for a lot but there's a lot of best. i promise to try to find it right here for you on "mad money." i'm jim cramer and i will see you tomorrow! hey, larry, what do you have for us? >> i think you are right. the investors won't be happy until the economy shows new signs of life and that might not happen for months. our top story developing by the
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minute. an obama top official alleges on the record that mitt romney may be a felon for criminally misleading the s.e.c. this desperate over-the-top extends from this baseless "boston globe" article, disproven by private investigators. we're all over this fast-moving story. also this evening i am sick and tired of stories like this one in the "new york times" saying mitt romney isn't tough enough or strong enough to take on obama or beat him. remember this, folks, romney took out newt gingrich with two brutal slam downs in the florida debates, and then he took out santorum. we'll discuss how mitt romney is the most underrated politician since ronald reagan. and the dow closes down again today, six days in a row, 31 points. coming back from triple-digits drops but investors aren't happy with the economy. and the new york fed out with a
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study saying if it weren't for federal reserve stimulus, markets would be 50% lower. to that i say nonsense! profits are the mother's milk of stock, not a bunch of phony money. but first up tonight, a key member of president obama's reelection team drops an over-the-top bain bombshell on an open press call. take a listen. >> either mitt romney through his own words and his own signature was misrepresenting his position at bain to the s.e.c., which is a felony, or he was misrepresenting his position at bain to the american people to avoid responsibility for some of the consequences of his investment. >> all right. you heard that right, felony. let's talk to cnbc contributor robert costa. i would use the word "obama utter desperation." how do you read this? >> this is part of the obama
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campaign's focus on bain capital, especially since the last jobs report, which was dismal. you see stephanie cutter going back to bain, going back to the s.e.c. records. romney's story is he left bain in 1999 to run the olympics. but according to reports today, he stayed on some of the records because the firm was restructuring, giving the partnership over to new people. >> it takes you several years to unwind. we'll talk about that technical stuff in a minute. political question, had is roberta carmel? she is the one who put them up there, a democratic fund-raiser, former s.e.c. chairperson now teaching at brooklyn law school. she leaked this s.e.c. stuff. >> the mood in boston is the
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article, the obama campaign response is soaked in politics, very political. matt rhodes is calling on obama to apologize for calling the gop nominee a felon. this is a very heated story. think is only going to heat up this summer as the obama campaign zeros in on bain capital. >> as the employment numbers drop, unemployment goes up, the economy gets worse and they get more desperate. thank you, buddy. we have with us howard dean, tony fratto, former bush press secretary. if they threw all that stuff at you and questioned your medical credentials, wouldn't you be furious at that? >> let's decide what they nearly did they. they didn't say mitt romney was a felon. they said misrepresenting yourself to the s.e.c. is a felony. mitt romney signed papers that were filed with the s.e.c. in 2002, three years after he said
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he left bain that, said he was the ceo and the chairman. and was 100% owner of bain. that's what it said in the s.e.c. filing. it seems to me a reasonable person would suspect the ceo was running the company. we know he was the ceo and not running the company. >> in name only. >> it's a hard case to make here. >> read the prospectus. >> it took him three years to unwind. >> why did he california himself the ceo? >> he didn't call himself anything. he had no operational responsibility. as the sole shareholder of the company, you literally cannot unwind the documents. >> he doesn't have to be the ceo. >> he stepped down. that's not what it said in the s.e.c. >> that is the s.e.c.'s fault. it's not romney's fault.
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he's said this before. glen kessler of "the washington post," the pinocchio fact checker guy says this is a lot of huey, says this is a lot of huey, fortune magazine says this is a lot of huey. how are they going to make this charge stick? >> one half of the charge that was he lied and he was actively involved. now we know that's not true. now we're down to that he misrepresented himself. if you read the prospectus of these various funds, it says right there in black and white mitt romney is not running these funds, he is not one of the investment managers, they couldn't be any clearer, nothing was misrepresented. so what's left? not really very much. >> can i just read one technical thing before you go? this is the from "the washington post," glen kessler, who is very good, he's the pinocchio fact checker guy. >> what's the date on the story? >> today. >> lying to the s.e.c. is
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absurd. it takes three years to dig out from the ownership position but he was not an operational decision-maker and romney told that to the s.e.c., romney testified as much to the s.e.c. and signed it to the s.e.c. there's nothing new here. >> one thing we can be absolutely certain of is nobody in the obama campaign has any experience with filing papers with the s.e.c. their removal of dealing with the s.e.c. is firmly established they don't understand these issues. i have a problem with the reporter on this story. it takes about two hours of a little bit of reporting to get to the real facts on this and how the s.e.c. really works, on how these documents work, on how you unwind ownership in private equity. that's all it takes and, you know, but the obama campaign goes over the top with their charge based on an erroneous story.
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>> and this is christopher rowen of the "boston globe." never once did they go through the technicalities of unwinding your position to the s.e.c. never once did they say that roberta carmel -- this is the one that bothers me -- a former s.e.c. member, an active democratic fund-raiser, she's the one that give them the story. they never mentioned her or her status as a democratic fund-raiser and that is bad journalism. >> if that is true, that is bad journalism. but what the romney campaign said is she's a carter democrat. when you start attacking people who gave you the story, that means you don't have enough to attack the story and that's worrisome. >> but it all there in the s.e.c. filings. there's nothing new here. >> larry, let me get back to the core issue here. i don't think mitt romney is probably a felon but it is a felony to lie to the s.e.c., which cutter correctly said and why did he identify himself as the chief executive officer and get $100,000 out of bain
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capital? >> let's get to the real core issue is that we get a bad jobs report and we get the obama campaign talking about some papers at bain 15 years ago. we get another bad jobs report and we get the obama campaign talking about paperwork at bain 15 years ago. what they're not talking about are those bad jobs report. >> one more bad jobs report and they're going to have him behind the madoff scream. >> let me write that down. just a minute. >> here's the other thing, does anybody in the country care about this? >> they sure as hell do. >> he is running even with obama in every poll. on the economy he continues to run ahead of obama. and do you really believe -- i want to ask you, howard dean, physician, what, you were a physician? >> i am. i was. >> still are a physician. do you think that people want someone to clean up the books of this country, someone with financial and business
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expertise? and don't you think that mitt romney's time has come? >> no. >> no matter how much dirt is thrown at him? >> this is not dirt. >> this is total dirt. >> it's vapor. >> this is the character issue. and people fundamentally don't believe mitt romney cares about ordinary middle-class people. >> how do you know that? >> because there's a gallop poll that shows that six months ago. >> that's so thin. i've seen other polls that shows romney does connect with other people. i've seen polls that show people respect him for his business experience and most of all i've seen polls that show people like successful business people in this country. we don't hate wealth in this country. we like wealth. >> we're an aspirational country. >> absolutely. we don't like people who don't portray the truth.
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>> now they're trying to paint mitt romney as a felon, as a crook, as a liar. i think that image is not going to stick. >> he has a cayman islands investments and swiss bank account. not a good thing. >> so do american million pension fund who is invested in bain capital. >> they're not running for president and he is. >> they're trying to run for president. i got to get out of here. this is just about s.e.c. filing, there is nothing new here. did is an act of desperation. thank you, howard dean, jimmy and tony fratto. coming up, you heard a lot of our market pros say buy america. we're going to show you why. it's called big returns. and later, our ailing economy has the fed on high alert. do we really need another shot of monetary stimulus? you heard alan greenspan tell me last night no. we're going to ask our distinguished panel of former fed big wigs whether greenspan is right or wrong. don't forget, folks, free market capitalism is the best path to
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prosperity. it does require the rule of law. even the s.e.c. has to abide by it. i'm kudlow. we'll be right back. ♪ ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream solutionism. the new optimism.™ high schools in six states enrolled in the national math and science initiative... ...which helped students and teachers get better results in ap courses. together, they raised ap test scores 138%.
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all right, go team usa.
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the olympic game's opening ceremonies just around the corner. team usa will be sporting red, white and blue uniforms designed by ralph lauren but it turns out the uniforms were made in china, which made a lot of of people very unhappy, including senator harry reid. >> i think the olympic committee should be very ashamed, put the piles in a uniform, bury them and start all over again. >> the olympic team said the team is grateful for the support of their sponsors but didn't address the claim itself. >> we keep putting our eyes on europe. what about great american companies at home? now is the time to make money by buying america. brian shactman joins us with the details. >> i think the ralph lauren
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blazers are going for $600, too. along with our great research stuff, we found 122 companies from the s&p 500 and ranked them according to performance. classic defensives like domestic defensive and tobacco, near the top. housing? dominant. three of the top five names came from the sector. you see lennar, horton, pultegroup all up 10 points or better. and financials are a great place for comparisons here, folks. wells fargo up 20%. although deutsche bank is obviously a foreign bank, it's
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lost 40% while yielding less than wells fargo. all this could be confirmed tomorrow when wells fargo reports earnings before the bell. expect 81 cents a share on 21 billion in revenue. a lot of these are looking backward but a lot of people think this thesis will work moving forward as well. >> all right. it's possible. thanks to cnbc's brian shactman. our hunt for yield continues. let's do stock market work. we bring in zane brown and host of "sports money." michael, i don't disagree with these specific american companies but the market is behaving badly and has been for many months basically because the economy stinks. what's your take? >> i think you summed it up very well. the jobs report has been terrible. confidence among ceos i think was at a three-year low. we saw that come out. manufacturing surveys have been bad. and then we see a huge tax increase coming. it's going to be focused on the
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most successful small businesses. think about that, a tax increase on the people creating the jobs. i think that is really one of the things holding the stock market back right now, larry. it's very cheap but the uncertainty and tax coming ahead. >> to me as an old guy who started out in bonds many years ago, a 1.5% ten-year treasury tells me the economy stinks. that's the only way you get rates that low. >> it tells you some parts of commit stinks. it may be people looking globally saying i'm frightened in what's going on in basket case europe, i'm not sure what's going to happen in china that, could be a hard landing. where do i go to be safe and they bid up the price and pull down the yield of treasury securities. >> but if the u.s. economy were growing the way i want it to grou, which is 4% or 5%, if we
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had different policies, better investment, there's a hiring freeze going on, if these things would turn around, you know darn well long-term interest rates would go up several hundred basis points and that would be a a good thing. you'd be 34, 5% on ten-year treasury and that would be great for the stocks and commit. >> that is true. it would suggest we have much more economic strength than we seem to have this year and for what the prospects are going forward. you say we hope that can happen but we have paralysis in washington that seems to prevent that from unfolding any time soon. >> you were talking about the tax story. obama unveils his tax plan. upper income people get tax hikes. investors really get hosed between the obama plan and obama care, dividends back to 40, 45%. what happens if that stuff doesn't go through? >> huge rally. larry, look at what happened with bill clinton. he actually lowered the capital
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gains rate from president reagan's time, from 26% to 20%. why can't president obama take a page out of bill clinton? that would unfreeze this tremendous, tremendous freeze we have on risk capital now. there's plenty of liquidity, plenty of money in the economy. there's no risk taking. >> what is your favorite investment? >> high yield bonds. while you're waiting for political paralysis to that you -- >> what do you get? what kind of yield? >> over 7%. >> and you're okay with the credits? >> absolutely. they're profitable companies. if you don't have 2% growth and only have 1% growth, they're still going to have plenty of money to pay off their interest payments. >> very interesting. thanks to both of you. up next, banks, libor, investigation, it's a heady brew of headlines when we come back.
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>> the general economy in the united states has been more or less flat. it's not heading downward but it's not growing at the rate that it was. >> we face the most predictable economic crisis in history. >> these deficits are like a cancer and overtime they will destroy the country from within. >> i was just listening to the panel on cnbc and bowles thinks we're going over the cliff. there's so much indecision about where the future's going. ♪ [ male announcer ] it started long ago.
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libor, financial fraud, senators demanding investigations. it's the financial servicpalooz tonight. >> senators from both parties calling for investigation of libor and financial fraud. they want topic line -- they
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want attorney general holder and financial regulators to crank up investigations and look at al ghags u.s. and foreign bank regulators may have known about the wrong doing for years. the new york fed is expected to release its report tomorrow on who knew what when about libor. and republican senators charles grassley wants to know what the fdc did when red flags were raised about the brokerage and its estimated losses of $2 billion. >> executives of bracing for a bad week next week starting on tuesday with the senate investigation subcommittee holding a hearing on money laundering activities that allegedly took place at the bank. we don't know the details of those allegations just yet but the committee will be releasing a new report and those
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allegations are expected to be damaging to hsbc. also, we're expecting a separate settlement from the department of justice. it cou one of the allegations we're told is whether or not hsbc's mexico subsidiary was involved in apparent money laundering that may have allowed mexican drug cartels to send money to the united states. that's one of the issues investigators are looking at here. >> thank you, eamon. >> we'll learn more about the size of the london whale's trading loss as the firm reports earnings tomorrow. ceo jamie dimon promised that. >> and there are tilmes you nee a cup of coffee. >> it would be one of the
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saddest days of a person's life when they lose a loved one. we're trying to make their experience -- make them as comfortable as possible. >> larry, he's hoping, i guess, that some people will stop by just for starbucks in addition to those coming to pay their respects. it kind of morbid to me. >> i don't know. if you caffeinate them, they might go to heaven faster. >> good night, larry. >> the slumping economy has the fed on high alert. last night's guess alan greenspan specifically warned me against fed stimulus. our panel of big wigs are going to square off and debate stimulus or not, caffeinated or decaf? this is the first car that i've been totally in love with
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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, i am sick and tired of the "new york times" and others saying mitt romney can't close the deal, he's not tough enough, he's not strong
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enough, he's not determined enough to fight barack obama. i say that's utter nonsense and he's the most underrated politician since ronald reagan. our political panel is going to debate that whole proposition. washington may still be waging its war on the wealthy, but a more poll out says americans might be more accepting of the rich. we'll have the details. but first up, there's been so much talk of fed stimulus, it's front page news everywhere, it's topic a for investors and now a truly unbelievable report from the fed, this is the new york federal reserve bank suggests that stocks might be 50% lower without fed pump priming. oh, my god. also today federal reserve bank of san francisco president john williams said the economy has lost momentum. all right. my special guest last evening was former fed chair alan greenspan. he made headlines here opposing
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stimulus saying it hasn't worked up till now and it may not work in the future. >> i've stayed away from commenting on fed policy. i will say this, however, that the data do show that the expansion of assets has had very little impact on the economy for an important reason, that we've created a major increase in the asset side of the federal balance sheet and a very large trillion and a half increase in excess reserves but there is no evidence that any of those reserves, which were essentially deposits at the 12 central reserve -- 12 reserve banks by depository institutions, namely commercial banks. and they're not relending it. unless and until those reserves get into the marketplace it, has no effect. can you collapse the whole
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system now without any really significant impact and i think the fed's aware of that. >> right. i mean, he couldn't have said it better. putting no money in, it's just sitting on deposit at the fed. it's not being used, it's not being used for loan. why do any more of it? in fact, why don't we do less of it? i want to hear what our guests have to say. lee hoskins, dan greenhouse, chief global strategist. rick, isn't greenspan right, it sitting there, nobody's using it, it's not been loaned out, the whole thing is a scam, why do any more of it? >> i couldn't disagree more with alan greenspan on this. there is a lot of research. he's right a lot of this has ended up as deposits in the
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federal reserve system but you look at what has happened to asset reserve prices, long-term interest rates, evidence it has had an impact on stock prices. the question is how big. has it been able to overcome the other problems we have in the economy? absolutely not but this has been something that has been effective and indeed it was one of the important things that helped keep us from getting into a much deeper recession -- >> i know the argument we would have been worse but the money is still lying fallow at the fed, it has not been put to work. >> let me add one thing on this. the issue is not quantity, it prices. research shows quite clearly is that asset price has been affected in a way that's expansionary for the country and that's key. >> larry, that's not provable. that is not provable. >> there's nothing provable in economics. that's what we do for a living.
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>> he cannot make that statement. all he's saying is that we pumped up asset prices and that's not the job of the fed. the job of the fed is to hit its target for inflation. it wisely chose not to choose to have an employment target. it doesn't have an employment target for a good reason. they don't control employment. >> larry kirks ju, can i jump ir one quick second? i'm going to make had hadlines and say alan greenspan has no idea what he's talking about. when he says can you drain all the excess reserves with no impact on the larger economy, i wonder if anybody from 1935, 1935, 1936 is alive today to point out that's exactly what happened in 1936. >> but the money is not being used. the fed has put the money in, it's lying fallow at the reserve
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banks. dan greenhaus, the economy is growing at the slowest pace in modern times. jobs and gdp growth, despite all this fed pump priming, they're taking credit for the stock market, as is rick mishkin, has done nothing for the economy, for the economy and ordinary people. >> i don't want to take credit for the stock market but i want to emphasize when you look at the way monetary policy works, the way it works is by affecting the asset price. in particular, it affects interest rates. that's the key way it works. the research shows it did have an impact in this way. now, has it been enough to overcome the problems of the economy? absolutely not. we're sitting with a deleveraging process that's brutal for the economy. we have crazy politician who is may send us over a fiscal cliff and creating uncertainty so people aren't investing as much as they should. these are big problems.
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the fed is doing what it can do. it's dealing with a lot of headwinds because of not only bad behavior in the u.s. look at the european politicians and they've created. but if you look at quantities too much -- >> fred's pointed out why it doesn't work right now. he pointed out all the issues. why should we keep running an experiment of qe 1, qe2, maybe qe3, twist 1, twist 2, zero interest rates since 2008 and trying to repeat that experiment -- >> what's the alternative? >> do a greenspan? >> normalize interest rates. allow the market to work. turn around long-term interest rates, it allocates resources over time. you're not allowing the markets to do their jobs. >> let me get in here. >> and savers and retirees have been hurt very badly by this cheap money policy. >> they always get hurt by low interest rate ps. >> i don't want them to always
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get hurt. they're part of america, too. >> but the way to get it back up in the long run is to get the economy moving again. >> you keep telling me that but this is the worst recovery in modern times. dan greenhaus. >> but this is the worst economic crisis we've had in 70 years. >> i thought profits are the mother's fill being of stocks, dan greenhaus. now it's the new york fed that's saying it the fed that drives up stocks. i don't believe that. we've had rallies, we've had declines. i thought profits drove the economy, i thought entrepreneurship drove the economy. now the fed is sell us they can willy-nilly print all this out the thin air and assets prices go up and where's the evidence of that? this is just the fed covering its own keyeser. >> clearly earnings and profits have doubled since the bottom. far be it for me to be the eternal defender of the federal
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reserve, but largely speaking i just -- i don't know what the alternative is. and i understand there's a lot of people out theresaying, well, raise interest rates and you'll spur borrowing, you'll steepen the curve. but that doesn't happen in a vacuum. if you're still in the lee laugh r -- deleveraging environment -- >> you can't do anything about the federal reserve. those issues are there. >> it cannot solve all the problems of the economy. that's absolutely clear. by the way, nobody is sitting here saying the federal reserve is what raised stock prices by the amount that they've risen. the key thing is companies do have to make profits. the key point here is when you have expansionary monetary policy, it has an effect on the economy. it is a way of getting the economy moving and it is key that you don't want inflation to fall. the first has been incredibly
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patient in not allowing -- >> what about after tax incentives? what about rewards for entrepreneurs and business creators? >> i heard you. >> what about stopping overregulation? fiscal barriers. you just can't create money out of thin air like the new york fed has on its web site and say whoop-de-do, stock prices are going to go. why don't they drive stocks to 20,000? if it that easy, just pump all that money in. >> it isn't that easy. that's the point. the real economy does respond to real factors. bad public policies do very much hurt. that's a serious problem that we have basically all this uncertainty because of no willing no to deal with fiscal -- it can just do the best it can do.
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>> the fed should first of all do no harm. if it does another round of qe, it doing harm to capital allocation and this economy. >> we're going to leave it there, dan greenhaus, fredrik mishkin. tim geithner will be my special guest next wednesday, july 18th. up next tonight, occupy this. class warfare does not work. a new poll shows even more americans today believe the wealthy deserve their money. our high net worth reporter robert frank coming up next. matters. pioneers in outsourcing us jobs supports tax breaks overseas. insourcing. industry and favors bring jobs home. it matters. this message.
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all right. let's go now to cnbc's kayla tausche. she joins us with breaking news on google. what do you have for us? >> we just sat down on the record with google's executive chairman who made comments about larry page, the co-ceo. larry's been out, he lost his voice. highs not at sun valley because it's a very public speaking event but schmidt said he'd been in the office since monday, he's not expected to miss any other public meetings in the future.
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that is something we about update for you going forward. the other comment he's made were on the fiscal cliff. he said the existence of something like a cliff is merely causing spookiness to go into the economy. it spooks investors and he called it a disaster, the behavior in washington and a failure to reach a solution all this time is just unacceptable and is a real, real detriment to american business. we'll have the full extended comments from schmidt tomorrow on "squawk box." that's the latest from sun valley. >> thanks, kayla tausche. i think he got that completely right. now, as we head toward the election, much of the rhetoric dealing with wealth has a populous feel to it. you'd be surprised about how americans really feel about the wealthy. >> you said it earlier, the americans are aspirational, they admire the wealthy. judging from the headlines, you'd think that the wealthy were losing. in fact a new poll shows
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americans may not be buying all this class warfare. a survey from globescan found that 58% of americans say the rich deserve their wealth. that's higher than it was in 2008 before the crisis and the bailouts and occupiers. it's also among the highest in the world, ranked just below australia and canada. if you look at a gallop poll, number of americans who want inequality to be fixed has declined since 1998. most think inequality is an acceptable part of our economic system. the number of people who think the wealthy should pay more taxes has fall i don't know in recent years the president of pew research said i" people don't necessarily want to take money from the wealthy, they just want a better chance to get rich themselves". that's an idea that both party could better understand right now. >> i think that people should get the opportunity model. they want opportunities and all
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this class warfare stuff would dissipate. you only see this in bad times. as the economy improves, people want to work, they're happy everyone succeeds and they want to climb the ladder. that's been my take. >> they want a fair shot and a level playing field. if there's any discontent about wall street and the wealthy,it that there are different rules as opposed to just hating wealth. >> we're seeing some interesting things on the real estate side. the high end real estate market has been a bright spot in our economy but there's a growing fear luxury -- brokers tell me they're getting a flood of calls from wealthy clients who want to sell their homes fast in case taxes go up next year. if the bush tax cuts expire, catch gains goes from 20% from 15%. i talked to a broker in miami, the cat gains bill for that house is around $4 million. if he'd waited till next year
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and tabses went up, that tax bill would be around $6 million. so by selling now, he saves $2 million in taxes. brokers told me clients are willing to take a lower sale price to get a deal done now. the result is that inventories could rise, price could fall and that could snuff out the recovery in our market. we had a of course taxes are just one concern for the wealthy. brokers worry the fiscal cliff may create a mappings cliff and that's been a pretty spot in our economy that's caused by a slump with all the fiscal earn certainty. >> if you include the taxes on
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obama care, it could take tax gains up to -- >> many thanks to robert frank. up nextin people on the left and those on the -- our panel is standing by ready to face off, can romney really do it? tdd# 1-800-345-2550 let's talk about fees. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee.
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a, b, c. a always, b, b, c closing. always be closing. always be closing. always be closing! >> that of course was alec baldwin from the cult 90s movie but it's also the message mitt romney is hearing from some in the gop. the "new york times" reported today some conservatives are concerned that he isn't tough enough to close the deal in november. of course it's only july. i say enough is enough. remember it was mitt romney who took out newt gingrich and held off the santorum primary surge. i believe romney could be the most underrated politician and is the most conservative standard bearer since ronald reagan. he went to the naacp, something
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president obama didn't even do. we getting this news alert into cnbc. the drudge report is saying that condoleezza rice, former secretary of state, has emerged as a front-runner for vice president. want to talk to our guests about that. we have former season fran mayor willie brown and former new york congressman rick lazio. mayor brown, you heard my little sermon on mitt romney. but i want to ask you what do you think as condoleezza rice as vice president for mitt romney? >> her candidacy would scare democrats to death. we would really be concerned. she's a fabulous prn, a fabulous candidate in my opinion, a good campaigner. she would be formidable and it may be just what mr. romney needs to be the kind of candidate that you tried to describe in your earlier comment. >> rick lazio, you heard willie brown. what do you think about the conde rice candidacy?
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>> i'm glad he likes conde rice, i do too. she's an incredible person. mitt romney is going to emphasize competency, the ability to take the helm, if necessary, and a skill set that complements his. >> willie brown, you gave her good reviews. up said democrats would be worried. what's the biggest problem for democrats if conde rice were on the ticket? >> democrats have a big problem whether she's on the ticket or not, the incredible amount of money that's going to be handled by people like karl rove and the koch brothers and others in those super pacs, they're going to outspend democrats probably 2 or 3-1. that's going to be really tough. if you add to it some unique flavor, some real talented person like condoleezza rice, you really do begin to have a
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real, real problem. >> rick lazio, just a question, though. i know conde rice, i respect conde rice enormously. but of course she worked in the bush administration for eight years. she was part of the iraq war, the afghanistan war. are those potential problems in your judgment, rick? >> i don't think they're going to be problems. i think she's an articulate, smart woman who can holder own. she's plenty tough. i think she's established. she understands how government works. i think she's an incredibly competent person. just to go back to the mayor's comments about money. barack obama outspent john mccain 3-1. this is going to be a campaign that's competitive, mitt romney is going to defend himself and need what he raided to az. at the end this is going to be about the economy, about the future of america, about which
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candidate has a pro growth message and which is trying to mask his record by attacking the other candidate. >> mr. brown, why didn't president obama go to the naacp convention? mitt romney went and took the hit and took the boos. obama a didn't go and took joe biden. >> i assume that mr. obama must have had an awesome reason for not attending the naacp. and i, for one, would not have advised him to go any other place other than thenana convention. i think one would have to acknowledge that romney going there, not expecting to get any vote but consistently deliver his message does demonstrate a a wilgness to join the issue whatever it might be. i'm just hopeful, as mr. jealous
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said yesterday, who heads the naacp, they gave him a pass. would i keep my mouth shut and have obama front and center, just as he was with the latino, just as he has been with the gays and after all, the nba was the first organize to step out there and say, it's okay on same sex marriages. if for another other reason. >> he was on this show last night talking about that. >> newt gingrich had his chance. romney took him out in florida. obama sends punches at romney, romney shoots right back. where is this coming from that romney's not tough enough? >> these are restless republicans in some cases. but if you look at mitt romney, who is plenty tough enough to go to the olympics, cut down, turn things around.
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it was plenty tough enough in massachusetts to lower taxes with 85% of the legislature being democrat. >> i got to jump out. i'm sorry. >> he's tough enough. >> mayor willie brown, thank you. congressman rick lazio, appreciate it. just getting word into nbc, moody's down graded my volt is the best vehicle i've ever driven. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up.
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