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tv   The Journal Editorial Report  FOX News  November 5, 2011 11:00am-11:30am PDT

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>> this week on the journal editorial report. the sexual harassment allegations against herman cain and his campaign shifting response. does he have what it takes to go the distance. plus, as world leaders scramble to contain the european debt crisis, we'll have a u.s. investors guide to the rocky road ahead and the new obama care mandate has catholic groups up in arms. could it cost the president a key voting block in 2012? >> welcome to the journal editorial report. i'm paul gigot. first up this week, can herman cain's candidacy survive?
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his campaign is reeling from allegations of sexual harassment from as many as three former employees, offering a haphazard response to the story and accusing a rival of being behind the leak. despite that, a poll taken this week after the scandal broke shows cain leading the pack with 26% of likely primary voters. joining us this week, wall street columnist and deputy editor, red stevens and editorial board members, dorothy and jason. dorothy, with the accusations and the responses, what have we learned about herman cain's candidacy this week? >> we've learned that it's fallen to its rediktable point and stick with the campaign and run, as we say by the seat of your pants and the response by the seat of your pants. this wasn't what was required in the situation and we got a certain amount of loss of his usual affable cheery nature. that's not surprising.
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he has a lot of fire and intimacy and that's what ignited audiences and i wouldn't have expected him to be deeply diplomatic, but let me say, this was not a good outcome, the explanations were not good. and the inconsistencies perhaps predictable, but there's a kind of rip roaring hostility which you can understand. he's being accused. >> and only in the world of espn political critics does this seem to resonate and you just saw the poll numbers and cain remains on top and a lot to do with his personality and so far the vagueness of the accusations and people understand the sexual harassment claims can be serious and many of them can also be frivolous. until we have some idea of who the accusers are, what the credibility of the accusation really is, i think that voters are, g.o.p. voters are going to give him the benefit of the doubt. this exists as one of the classic washington attacks coming from god knows where, and leaving a candidate in the
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positions of trying to sort out accusations that he or she may not understand. >> i don't know how long he'll continue to get the benefit of the doubt. you're right about the vagueness of the claims and the specifics of the accusations and here is what we know from this week's events. we know that man running for president on the business experience is not adept at crisis management and for people who are already stuck back at the policy expertise doesn't help matters. >> we do know, that as far as the legitimacy of the story, there are settlements. often made as kind of a routine matter when these calls are made, cost of doing business, let's get it behind us. nonetheless, having been formally done, the settlements, you knew as a candidate they were going to come out eventually. shouldn't you be prepared for that? >> and there are two issues, one of which is the competence of the campaign, whether these guys are running it as, you
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know, as jason said-- >> on that point what do you think? >> as a business, what do you think. >> not particularly well, is that what we're rating as a president. obama ran a confident campaign and didn't tell us what kind of president he was. >> there's one thing you have to take into account. the nature of the vociforous support that herman cain has enjoyed. i think even if these were highly specific charges and women were trotted out. it would be a very large volume of voters saying we don't care. we don't believe this, this is a malevolent charge. you feel in your bones a kind of perverse, we don't care about this. this is our job. >> paul: yet, you're saying you care. you're saying it reflects upon how you think he would perform as president. >> yes, i do think that. >> paul: why? >> well, i think because it is a completely, kind of comustion going on there, out of control. but you know, you could get over that kind of nonmanagement. this is a very difficult time for anybody to have this
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thrown in his face. what i'm talking about is the push for herman cain that's particularly passionate. kind of perverse in insistence that there's no ills attached to him as well. >> and one of the reasons a lot of like a longer primary process and because it gives voters the chance to vet the candidates and how they respond to setbacks and controversy and so forth. herman cain is failing that test and failing badly and it could be fatal. >> if you knew that this existed. why wouldn't you preemptively get this out. inevidentbly in modern politics, this is what happens. every story comes out and you're unt withering scrutiny and what would they say if he got the nomination and this story came out after labor day when he's already the nominee. >> the comparison is often made to george w. bush's ddy story that came out days before the november 2000 election. >> really hurt bush. >>, but that allegation was
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true, that's the difference. we don't know whether these allegations are true, but we do know that there were settlements so we know that that story would have come out regardless. >> look, i think that a lot of people who support cain want to move away from a certain kind of business as usual politics for everything in strategy and let's assume for a moment that cain is innocent of the charges, they were frivolous allegations that the national restaurant association simply settled as a course of doing business. perhaps, a very human reaction is, there's no truth to the story, so why do i want to get a story out, that isn't really there to begin with. that's a perfectly normal thing to do. >> he has been an ecstatic high in a very real and infectious way and you don't think about that. did john edwards think what might happen if he actually won the nomination and this child emerged in the world? >> that's a little different circumstance. very briefly. >> this is reinforcing the notion this is not a serious
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candidacy, he doesn't have the infrastructure in place and again, that's not going to help him and it's going to test the g.o.p. voters sticking with him in the polls. >> that's a different subject. as world leaders come to salvage a greece rescue plan, has the debt crisis already reached american shores? [ male announcer ] cranberry juice? wake up! ♪ that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition.
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>> the political and economic turmoil in greece and europe's debt woes took center stage at the g-20 summit in cannes, france where president obama and other world leaders meant to head off the global financial meltdown, what can the u.s. to do to keep the euro zone crisis from spilling over to american shores or has it already. we're back with bret stevens and wall street journal columnist dan henninger and mary anastasia o'grady.
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and in response to debt and gene greece, a tiny economy relative to others, what the u.s. stake in this euro crisis? >> you know, paul, i think you have to divide it between the financial sector and the real economy. he think in terms of the financial sector, probably, the u.s. is not in a lot of danger, because, i think there's been a lot of advanced warning, even with moan market funds, you know. >> paul: who had invested in the debt of european banks. >> they were looking for yields, there was higher yields there. >> they've pulled back there. >> what about the inner bank market, where banks obviously lend to other banks? >> i think there is some risk there, but as i say, i think that the warning signals are out there so they've had a chance to-- it's not a surprise for them. but i think on the real economy is where the risk for the u.s. comes. we had a banker into thewall wall street journal yesterday talking how the midwest is still a strong manufacturing area and europe is a very
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important market for the u.s. and for sure, the european economy is going to go into a recession and we don't know how sharp, but i think it's pretty clear that they'll have a recession. >> paul: dan. >> on that point exactly. i'd like to turn this around. i think the united states has a lot to answer for amidst this crisis, specifically the obama administration. europe is on the brink of going into another recession, we have just come out of a recession and our growth rate should be a lot higher than 2%. it should be 4 or 5%, coming out of a recession. >> we're more vulnerable to a european recession than we should be? >> we're not only vulnerable, but asking the greeks to propose an austerity package going into another recession, yes, they should do this, but it's hard to ask the europeans to do the right thing when there's virtually no growth in the world economy. >> historically when the word major economic crisis elsewhere in the world, you could count on a strong america as an engine of global growth. that's just what happens
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during t during the asian crisis. now they're looking at the currency zone at precisely the moment when the united states had years of anemic growth and looks like years to come. >> what about the company mf global, which was run by former governor of new jersey, john corzine, former goldman sachs executive, former senator of the united states from new jersey, and declared bankruptcy this week having bet on european sovereign debt. >> a broker dealer and suddenly decides we're going to be with it, hip-hop and go into european debt, exploded. when you get crisis like this, don't you get the surprises here or there and couldn't we see more of those. >> and risk management could have been part of governor corzine's portfolio. part of the problem i think is intellectual. there's a view that it's greece, portugal, small european economies that have been most at risk during this european crisis. what we've been learning
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clearly the last six months, that it's spain, italy third largest economy in the euro zone and germany is the only country that undertook pro growth reforms in the last decade and maybe the only standing in europe and what should we want to happen, dan, in europe? what would be the best outcome for the united states? >> i think theoretically the best outcome for the united states would be if they found a way to salvage the euro. the euro zone theoretically, as an integrated economic zone is a good idea and if we had growth in the world, between the united states, europe, and asia, those zones of growth, with the common currency for europe isn't a good idea. >> why isn't it. >> because it creates more efficiency in the way they do business simply the way we do in the united states. >> and don't have to worry about currency risk? >> but the creation of the euro was supposed to discipline economies like greece and spain and italy and
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that's why investment banks thought investing in sovereign debt was the sure thing. that's the problem. the euro has not in fact imposed that discipline on this country. >> and the most depressing aspect of this. europeans are talking about larger bailouts and haircut schemes for things and not talking about the growth. world bank came out with a survey of doing business and easier to do business in yemen than in greece. >> yet, every time we get a bailout report, mary, the u.s. stock market seems to go up and they're saying we seem to like bailouts in europe, in the united states. >> well, i think the stock market is responding, we just want this problem to go away, but i think, every time you see that bailout, you have a kind of a bump in the stock market and most analyst saying, look, until they-- the creditors take the hit, take the hair cut, accept the fact that they put money in a place where they're not going to get it back and europe recapitalizes its banks, you're not going to really be able to move forward. >> paul: so what's the main lesson here, briefly of the
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euro crisis for the united states? >> for the united states, the main lesson, we have to be a leader in the world and i think that the idea of austerity and keynesian checks, whether in the u.s. or in europe, is not, is not going to lead us out of these kinds-- >> don't become a slow growth entitlement state. that's the lesson. when we come back, president obama's catholic problem. two recent administration decisions church leaders and some former supporters in revolt. will it cost him the support of a key constituency in 2012? i habe a cohd. yeah, i toog nyguil bud i'm stild stubbed up. [ male announcer ] truth is, nyquil doesn't un-stuff your nose. really? [ male announcer ] alka-seltzer plus liquid gels
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>> well, he won 54% of the catholic vote in 2008, but it might not be so easy for president obama this time around. the battle is brewing between
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catholic groups and the administration over a proposed health and human services mandates that will require all private health insurance plans in the united states to cover contraception and sterilization in violation of church teaching. the religious exemption clause to the mandate is so neuroly written that catholic colleges and hospitals and social services organizations will not qualify, forcing some to drop college altogether. and we're back with dan and dorothy, joining us william mcguerin, wall street journal columnist, explain this. >> it's what you said. a rule that goes into effect next august requiring all employers, not just targeted at religious groups, to provide contraception and sterilization services and in at least one disputed case, drugs that may cause abortion. >> paul: but i thought this was all settled, bart stupak,
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from the upper peninsula of michigan, i'm not voting unless this is settled. >> in that case, in the obama care, a lot of debate and a lot of people, catholics sided with president obama and a lot of people that supported him last time are complaining. not a lot of dispute. sister carol keenan, one of the famous enabouts for obamacare. >> she was there at the signing. and leaded to classic unintended, and hospitals and agencies cutting insurance coverage. >> and what about the catholics charities and what they can do abroad. >> the catholic bishops, they've had for a long time the charter to go and help women who have been victims of sexual trafficking, essentially. and they have been acclaimed, essentially as-- >> very effective. >> yes, very effective and suddenly in comes that typically reputable source of
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reason, a.c.l.u., filed suit and suddenly the government withdrew the contract on these grounds and gave it to someone else. and-- >> because, because they said that catholics could not refer people for contraception and would not refer them-- >> and abortion. and so this was the only thing required to help these women, to save these women, and so, there we are. they have this double shot now, the universities and this. >> paul: dan, can i put-- you've followed this usual for years. >> yes, i have and the catholic bishops and the church and the state. let me play the devil's advocate here for a second. a spokesman for hhs after this decision to demote the bishops over the human traffic funding said, you know, since the mid 1990's the cat athletics groups, 880 million dollars from the federal government, nearly a billion dollar. >> paul: wow. >> over that period the
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catholic church has really gotten in bed with the federal government so as bill says, when they pass obama care, the catholic church is right there cheering for it. look you sign up for 800 million dollars and they're going to call the tune and what's going to happen at a point like this, you're going to have to support their abortion policies or you're out of the game. >> it's their point, bill. >> further to dan i'd say,s this the problem with obama care from the beginning not just that it had abortion provisions, it's based on force, forcing people to buy insurance, forcing people to provide services that they regard as immoral and so forth. it's based on force and now people are finding their ox being gored. >> paul: so who is right here? are the catholics really-- >> i think they're right. and to require these free associations and free institutions to provide this coverage, that they regard as immoral. i think president obama is not going to let this drop in august before a presidential election. people expect that they will expand the exemption for
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religious institutions, however, i'd like to see sister keenan and father jenkins also stick up for individuals and insurers who also have objections and who also may be forced into things that they don't want. i mean, it shouldn't just be for catholic institutions. >> paul: dorothy. >> i can only say this this whole thing has a bright side for me, i finally see resurgence of opposition from the catholic church to all of this, and which, by the way, is remarkably rare. when you see this kind of suppression of rights. >> paul: i can't remember them being-- the bishops being this angry-- >> spokeswoman called it the abc rule at hhs, anyone, but catholics. they've never spoken that frankly before in their lives. >> once president obama steps in and exempts them and takes the problem away from them, they'll go silent and these dilutional catholics will vote for obama again in 2012 and then in 2013 you can bet that hammer will come down. >> this cynicism is uncalled
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for, dan. >> when you equate social justice with government action, that's the fundamental mistake. >> yes. >> we have to take one more break, when we come back our hits and misses of the week. congratulations. congralations. today, the city of charlotte can use verizon technology to inspire binesses to conserve energy and monitor costs. making communities greener... congratulations. ... and buildings as valuable to the bottom line... whoa ! ... as the people inside them. congratulations. because when you add verizon to your company, you don't just add, you multiply. ♪ discover something new... verizon.
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>> time now for hits and misses of the week. jason, first to you. >> this is a hit for the people of colorado who voted this week to reject higher sales taxes and higher income taxes and in favor of school of choice, for low income families. colorado is a swing state that president obama won in 2008 and the white house cannot be happy with these results as he prepares for the election next year. >> paul: mary. >> a hit for the captain roana, the 54-year-old peelt pilot for the polish airliner, had did a perfect landing on the tarmac. it was a perfect landing, but far from certain outcome although the plane were designed for these kind of emergency landings, the
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captain's skill was what gave us 231 passengers who walked away unscratched ebill. >> a miss to the students at harvard who walked out on an introductory economics course taught by mancue. professor mancue started in the bush administration ap makes him an enemy of the people, by definition and the irony he was discussing income inequality and even the harvard crimson editorialized calling these students, showing they showed ignorance and a lack of self-awareness. the fraction of the student that left, the lesson, they're the ones that really need to be in at that classroom and learn a little more. >> paul: and the question is, how is it that greg mankiw could get tenure at harvard in the first place? when you've lost the crimson you've lost america. >> remember if you have your own hit armis send it to


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