tv CNBC Reports CNBC September 16, 2009 8:00pm-9:00pm EDT
8:00 pm
r pocket. sprint. the now network. deaf, hard-of-hearing, and people with speech disabilities access www.sprintrelay.com. rupbeat rock sprint. the now network. ♪ so i could hear myself myseas a ringtone ♪hone ♪ ♪ who knew the store would go and check my credit score ♪ ♪ now all they let me have is this dinosaur ♪ ♪ hello hello hello can anybody hear me? ♪ ♪ i know i know i know i shoulda gone to ♪ ♪ free credit report dot com! ♪ that's where i shoulda gone! coulda got my knowledge on! ♪ ♪ vo: free credit score and report with enrollment in triple advantage. shopping for insurance aun health care services, deregulation for those services, most especially insurance across state lines. those principles of free market capitalism will grow the private
8:01 pm
health care sector and solve many of or problems. i don't want to crowd doctors and nurses out. that would be a disaster. you know what, if the government does crowd them out, folks are going to be too sick around here and around the country to work, produce, invest, and grow this great economy. i am so worried about a health care takeover. i am larry kudlow. this is "the kudlow report." let me turn the baton over to dennis kneale. what are you cooking up? i'm dennis kneal ena'm selling the hope. we're 218 point ace way from reembracing 10,000 for the first time in a year. think about it. dow 10,000, i'll take it. wouldn't that be nice? whatever happened to the september swoon? the selloff that typically comes every september. stocks usually fall 1.5% this month. but so far they're up 7% since
8:02 pm
september 1. 7%, why the heck not? the news is encouraging, guys. inflation, nonexistent and better than expected results for industrial production. but something is more important, guys. it's emotion. we simply feel better. and if we feel better, thing will get better as a result. not the other way around. the first number is $350 billion. money markets are like storing cash in your mattress. and since march, $350 billion has flowed out. second number, $2 trillion. more than that. that's the increase in the total value of the s&p 500 since march. so that $350 billion helped sparked $2 trillion in higher
8:03 pm
value. and guess what? now for the third number, $3.5 trillion. we still have, guys, $3.5 trillion sitting idle in money market funds. so imagine the impact if another $350 billion, a mere 10% of that total there were taken out of money markets and put into stocks. it could make for another leg on what turns out to be a bull market, not just a bear trap rally. joining us for much of the show tonight is a member of the ayn rand institute. he'll talk about personal responsibility versus government control and why hollywood may be knocking on his door. that's coming up. but first, health care is supposed to be a pill that would take care of every american, but the debate has divided this country and left it in critical condition. today, max baucus and his gang of six made up of three democrats and three republicans
8:04 pm
released a plan they claim will bring bipartisan support. the plan doesn't have the public option that president obama has so clearly sought. and baucus's plan would cost still $858 billion over ten years. so below that $1 trillion mark there. everyone would be required, though, to have health insurance or they would have to pay a penalty. insurance companies wouldn't be allowed to cancel people after they get sick. that sounds nice. but the early indication is this bill is a no-go. two democrats are here to talk about it. good evening, gentlemen. congressman weiner, first off, do you support the bill that was unveiled today? >> i don't because it fails on cost containment and choice. you know, you can tell the insurance companies they're going to have also these new customers, but unless you do something to curb health care
8:05 pm
inflation it's going to bankrupt health care and make the exchanges unaffordable for the uninsh uninsured. you need to have some element of competition, which is a single-payer plan like medicare for all americans. >> a single play payer plan that would basically put all of the private insurers out of business entirely. i got you. do you support the bill today? >> no, i'm not. i think anthony is right. the core problem is insurance companies really don't have to compete against each other for the business of the american people. >> i apologize for interrupting. why is that? i thought it was setting up exchanges and now instead of buying only from an insurance plan in my state i could go across state lines, no? >> well, no. i don't think there will be effective competition under a senator baucus bill. it leaves the present insurance ologopolies in place.
8:06 pm
senator baucus does nothing to fix that. >> let me just ask for one clarification. you, someone who gets insurance from cnbc, your employer provides it. you are not going to be able to go into this public exchange. for about 200 million americans they're not going to be able to. that's why the president says most people that have their own insurance are going to remain unchanged. this is only for people who are uninsured or work for small businesses. >> are you saying that's bad? if cnbc covered me why would i want to? ? >> the problem is, you don't have a choice. if your employer says you have blue cross or you have aetna. you don't have a choice to walk away from that plan. you can't go to market forces to have someone compete for your business. >> can i ask you a question? would you agree then because what anthony said is right, the
8:07 pm
use of the phrase government takeover of health care is false. >> who asaid i agree with what anthony said. >> can you tell us where he's wrong? >> i think the idea of a single government pay system -- >> neets whthat's what he said. no, no. >> didn't he say we wants a single-payer system. >> he did say that but he says the bill before the house doesn't do that. he says if you work for cnbc you get to keep your benefits. is it a government takeover of health care or not? >> i don't understand, gentlemen. >> have you read the bill? have you read the bill? >> congress hasn't even read the bill. >> we have. have you? >> i've read the highlights. >> okay. you should read it. >> any government insurance program is going to drive out private insurance. the idea that somehow you have competition by including the government program that it's going to be subsidized and be
8:08 pm
able to drive the competitors out of the market. >> let the congressman speak. >> it shows you don't understand how the bill works. it does not provide a government choice for you. only for those people trying to shop on their own for insurance because they're not uninsured. >> what's wrong with that? >> hear me out. we all know the market works, if you're walmart, they can negotiate for lower prices. the individual is powerless to do that. the government opts is only going to be available as a choice for those people not insured. it's not going to provide any competition for your employer at all. the president does not support my idea of medicare for all
8:09 pm
americans. few you think single payer is not effective, why do my republican friends thump their chest about how they would like to save medicare. >> the reason i think single-payer government is not effective because we have that for medicare. a $38 trillion deficit over the next 75 kbrierpts's going to spend $38 trillion more than it pays in taxes. how can that be an effective system? >> here's the problem. all health care has a problem. medicare expenditures go up at a slower rate despite the fact that they represent people over 65. private insurance is actually running much more in the red except they're pocketing profit and charging us. there's not a question of whether we need to get cos under control. the baucus plan does not. >> ask people who are on
8:10 pm
medicare, how many of them would give it up? >> it's free. who would give something free even if it's inefficient? >> it's not free. they pay premiums, they pay co-pays. they pay deductibles. it's not free. ask them if they would give it up. >> and it as a 4% overhead as opposed to 30% overhead profit your insurance company is taking. >> i really think what we needed most of all in this country, though, gentlemen, was to cover the one third of the 46 million who actually do want insurance was didn't afford it but don't qualify for government aid. now you want to to be able to undermine my own employer. >> where do you get this figure that only 1/3 want to be insured? >> one of your distinguished members came on this show and said one third actually can't get it. one third can afford it and won't buy it because they don't
8:11 pm
want it. >> who -- >> i have dozens of get against you think you're winning this debate because i can't remember. >> oh, okay. >> a lot of this debate is of half made up, mostly made up and totally made up. >> i'll send the tape to your office and then you can apologiapo apologi apologize. >> just because you're not making it up doesn't mean it's not wrong. >> everyone has a different point of view. >> i'm saying some things are made up. you just quoted something that's made up. that's the problem with this debate. >> how do you know i quoted something that's made up. i quoted a congressman who came on the show and said it. >> you quoted something that's wrong. >> why don't we get back to the issues. >> why don't we get back to the facts. you made a representation that's not so. >> do you believe in mandatory health insurance and i should be fined up to $3,800 if i don't have it? >> i believe every american
8:12 pm
should be covered for health care. >> should it be mandatory. >> hold on. let me finish my thought. you should be required to get health care because your failure to do so passes the bill along to me. you don't have the right to pass the bill along to me. that's what happens when an uninsured person gets hit bay car. >> 60% of bankruptcies every year are because of medical costs. so the person who is not insured goes bankrupt, they pay a heavy price, too. >> that's right. except the problem we have right now, the uninsured are getting health care. make no mistake about that. they're just getting it in the least efficient way possible, meaning passing along the cost to you, and me. you can make individual choices as long as it doesn't impact my pocketbook. that's why everybody has to be covered just like everyone has to have automobile insurance. >> i don't think they should get health insurance if they can't pay for it. it used to be in america that hospitals had charitable funds.
8:13 pm
>> it used to be in america where people couldn't pay their doctor bills when they retired. >> that cost was not passed on then. >> who pays it? who pays it? the bill fairy? who do you think pays it? retax says and redistribution of health for people who are not responsible enough to buy health insurance. >> there are three fewer hospitals in my borough because of uninsured -- >> 50% on all dollars spent on health care are spent by government. >> please, let the congressman speak. >> here's what i want you to do. i want you to show us the independent source you have that says 2/3 of the uninsured people in this country don't want health care. was it a public opinion survey, was it a study, who said that. i'm really curious.
8:14 pm
>> you're so happy to have one little thing to grab on to. >> watching cnbc, i wish it was one. >> do you think they should be penalized if they don't get it? >> the government is going to tell them no, no, no you need to buy an insurance policy. you're a bad person for spending it on education or starting a business. >> let me ask you something, if someone hits you with their car and they're uni insured, they have to get a new fender and pay for it. but what if you're injured? the other person's responsibility costs you money. i have three fewer hospitals in my home borough of queens because people come in uninsured. they pass along the bill to the federal -- the state and local government. they pay a portion and some of it they have to eat. that's what we're doing. we're providing -- >> can i respond? >> the bill fairy pays that too? we're trying to provide people with coverage so they don't go into hospital emergency rooms
8:15 pm
and stand in front of you and your family when they should be getting check-ups. >> i followed health care for a long time. the reason you lack three hospitals in your district is because they didn't do a good enough job of managing their costs and their expenses and they weren't well run -- >> they're required to recover the uninsured. >> they put themselves out of business. >> i let you guys talk, and i know you're in congress but i really wish i could get in this point. when you get in your car, you pose a risk to me. the state forces you to have inshuns. but me inside my body with my health, i'm not posing a risk to you. >> what did you do to get hit bay car if you're uninsured? >> why should i be forced to buy insurance? >> you don't depend on redistribution of wealth forcing people to help you out. >> you get brought to my hospital that i pay taxes for.
8:16 pm
>> we need to fix that. >> the insurers have no choice. >> we need to change the law to prevent hospitals -- >> the hospital has no choice but to patch that person up, as it should be. if you got brought in there, they have to patch you up. it's just wrong what you're saying. >> you know what, i think the most important thing to know from this debate it's healthy to keep the channels open. i appreciate the congressmen taking the time to come here. . i thank the gentlemen for coming on here and we hope you come again. >> we would like that. >> we're still pushing through? this bill is a bitter bill. let's bring in the "real deal squad." who do we got here tonight? julie rucinski, the most
8:17 pm
stunning note of the day is even you don't like the bill out today. >> a bunch of other democrats who think this bill mandates that you get health care but does very little to help you get it. i'm a strong believer that you need a public option or at least a public option trigger which is something olympia snowe, a republican actually agrees with as well. or she said she did. >> so you don't like it because it doesn't go far enough? >> correct. >> you want it to do even more. >> jack, do you not like it because it goes too far? >> absolutely. i'll make you a prediction. he will not be the nominee of the democratic party in 2012. you already have howard dean. hillary clinton will jump in. anyway, i don't know what kind of freedom existed in stalin's russia in 1950, but i doubt you had anything like the bill that comes out today. it man das dates the types of
8:18 pm
plans insurance companies can sell, the costs. it puts out colors as to what the they're going to be called. this is the most un-american thing i've ever read in my life. this is ghastly. >> nancy, what do you think? >> without the public option. the far left is single-payer. without the public option what we're really saying is let the private insurers kpeelt for the uninsured. that's what's happening now. that's the free market. it's like saying let's pass a law to allow animals to mate. it's not working. >> do we need to do that? >> you don't really. what you need to have -- like transportation, some people drive cadillacs, some people take the amtrak and some people have to take the bus. >> it amazes me, when you look at the level of regulation in this -- >> let me get noel in here, jack. she's better looking than he is.
8:19 pm
>> thanks. let me ask you this. is there no other way to create competition other than trying to do these nonprofit health care opens? that's a sneaky way to an avenue of pushing through a public option. can we not go across state lines and open up competition that way. >> doesn't this bill do that? >> no, it opens up for the internet. and you can get price quotes in your own area. >> the same people that didn't want to go across country lines to get cheaper prescription drugs are the same people that are now talking about going across state lines to get insurance. anthony -- >> you keep bringing up -- >> anthony weiner made a very good point. >> what you're saying when you want people to be able to import drugs, you want them to drive across the border to canada where they control drug place pryces and that's evil and buy drugs that are controlled and kept lower and come back into new york and undercut the drug prices here where it's a free
8:20 pm
market. so even draw the two things together is simply -- >> some states regulate -- if i may answer. some states regulate insurance more than others. frankly the facilitate of new jersey, for example, mandates -- the state of new jersey mandates that you have a 48-hour mandatory waiting period after you have a -- give birth to a baby. others don't. >> that means stop talking now, guys. i have an alert that fires off in my head. we're trying to discourage all talking at once on this show. thank you very much. like a rising phoenix, the markets are on a run. how's that for mixing my metaphors? and we're closing in on 10,000. it could be just one good trading day away.
8:21 pm
with cialis for daily use... a clinically proven, low-dose tablet for erectile dysfunction you take every day so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. (announcer) 36-hour cialis. or cialis for daily use. ask your doctor about cialis today, so when the moment is right, you can be ready.
8:23 pm
8:24 pm
45% of those surveyed said they would consider closing their practice or retiring early if this bill is passed. kind of interesting, isn't it? there's talk on the hill of banning insurers of barring customers for pre-existing conditions. what do you say about that? i think it would be disastrous? >> well, you have to do it in conjunction with universal coverage. if you have universal coverage there's really no reason to be turning people down because they have a pre-existing condition. if you have universal coverage, everybody is in the system, everybody is paying in, and the people who get sick draw during the periods they're sick. >> if you mandate and force every american to get coverage. is that what you mean by universal coverage? >> that's right. >> not that we offer them the chance to get it, we force them. do you think that's going to happen?
8:25 pm
let's say it doesn't happen but because it looks good they pass a ban on insurers. tell us about the impact of that. i'll wait till i get cancer and then i'll go get insurance. that's really not insurance, is it? >> you're right. it really wouldn't be practical to have a system where people can just come in, you know, go down, find out they're sick and come in and the doc says i'm sick and i should get some insurance to pay for this. insurers have a right to protect themselves for that. but you could set up a program where you have high-risk pools. you could have a program you have high-risk pop pooles. people are sick, go to those plans, get their coverage, and themn't be -- they wouldn't become a burden to any particular insurer. it would be shared. >> basically, the congressional budget office said the republican option that competes
8:26 pm
with insurance plans, 10 million, 11 million go into it. lewin group is owned by united health care. of course they're going to say that. they say our research is independent. they don't tell whaus we're allowed to say, first of all. but now that you're looking at this baucus bill today, what is your latest number for how many people might go into a public option plan if one ends up getting offered. >> the baucus plan doesn't have it. but in the original house bill, a public plan was given a huge price advantage over private insurance industry. in the most recent bill, the price advantage has been eliminated. instead of covering 100 million, it would cover perhaps 20 million people. most are low income people buying insurance. >> which is still a pretty big hit to the system. >> all right, thank you. appreciate it.
8:27 pm
switching gears here, guys, new york state attorney general andrew cuomo is stepping up his probe into bank of america's acquisition of merrill lynch and the disclosure is there, too. he's issued subpoenas to at least five members of the bank of america board of directors. tom curran is a partner at pikar and abramson, a law firm, and a former securities fraud prosecutor. tell me what you think of this. i've got to tell you, i don't understand what andrew cuomo's stake in this fight is at all. >> well, if you were cynical and i guess you are, you might say he's contemplating a run for higher office, but there's a lot of back and forth here. basically, bank of america said we can't do anything wrong. there's nothing wrong with our disclosures. no terrell omissions. there has been the assertion of the attorney-client privilege. there's been some complaints to the perceived obstruction that
8:28 pm
prevents by the attorney general's office. this is their latest round in their efforts to get around that. they want to talk to the directors and one of them said, unidentified source said we want to know what they knew when they knew it. but if they knew it in the context of the rendering of legal advice, i suspect that louis lyman is going to assert the attorney-client privilege again. bank of america is in a very bad way, but they're basically saying the business rule govrjed -- that's what we did, we followed it. we made appropriate disclosures and the 20/20 hindsight going on, which hopefully for all of us is not a forecast of the new regulatory environment. the 20/20 hindsight is decidedly unfair. >> i can't help but feel this is a matter best left to the sec, which regulates federal disclosure. why the state attorney general. >> i think you're right, he has political ambitions. what interests me is why aren't we still looking at paulson and
8:29 pm
bernanke's role here. they're the ones that told bank of america, don't disclose. they were afraid the deal would break up and it would have these implications for the markets. so bank of america was put into this position, was forced into this position by people holding its throat tight. and yet we're going after bank of america. we should be investigating the role the government played in forcing bank of america to lie to its shareholders. and that to me is real serious. >> bank of america doesn't even say that. louis lyman said when chairman lewis brought that up to the fed and secretary paulson, that happened after the issue of the proxy statement and they made
8:30 pm
their decision based on the sbrets of the shareholders. that's not really an issue here, at least from bank of america's standpoint. >> you know, when the governor is about to invest a huge amount of money and when this is a deal they really want to get involved in, you know, the business judgment is sure they're going to use that as a backup, but force was used here to get bank of america to do something they really didn't want to do. >> bank of america -- >> when you're running a company and any government official asks you to do something you think is wrong, glow some courage and tell the government no. we've got to wrap anyway. i'm leaving it there. thank you very much, tom. next up, gold. and the role it really plays in our economy. also tonigh we're back in two minutes. th could someone toss me
8:33 pm
eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines... to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem! >> gold is on fire, baby. it hit a record high of $1,039 a ounce. it's driven by two entirely contradicting views of the global economy. one group sees the global economy rebounding, so inflation runs out of control. so they're going to buy gold as a hedge. another group, though, they
8:34 pm
believe the economy will crack and collapse all over again and they're buying gold, too. although not everyone is high on gold. let's flash back to a guest we had on our show. >> gold is pretty much a useless thing. to me, intrinsically, gold isn't useful for a lot of things. i think it has to head lower. i think that there's a bubble in gold. that's rishi arang back with own of the longest soul pachs. >> rishi has the hub rus to believe that 5,000 years of the clum la tif consciousness of the mankind should be wiped out because he doesn't understand
8:35 pm
gold is rare, and perfect store of value and it's also virtually indestructible. and mankind has searched for a place for their wealth. and i would like to ask rishi if he's fortunate enough to come up with some savings, where would he put it in an environment when the real interest rates are negative. >> wow. so where can i start with that load? so basically, plenty of savings. it's mostly invested in pure alpha strategies. made money lastee, making money this year. haven't had a losing year. >> how long have you been investing for? >> 13 years. >> for 13 years. >> and you want to wipe out 5,000 years of history. >> a lot of things that are 5,000 years old are really stupid. >> can i finish far second. slavery existed for thousands of years. people have put their children into work in coal mines for
8:36 pm
thousands of years. people have done really stupid things. there's something called evolution. >> talk about this alpha stuff. try to make a cogent argument. >> are you tell meg that john nader -- >> if the government is making real interest rates negative and if you put your money in the safest asset of all sovereign debt and the treasury is yielding 3.4% yet inflation is higher than that, are you going to put money in the mattress? the ten-year treasury or are you going to listen to me and 5,000 years of human history that says you will always maintain your purchasing power by owning gold? >> i tend to listen to smart people so maybe i wouldn't really listen to you. john maider kahnes is the person that used the term that it's a barbarous relic. >> what is the dollar telling you? what is the foreign exchange, the foreign exchange on the
8:37 pm
planet telling you about the purchasing power of our dollar? >> you do understand that gold is rallying against all of the other currencies. >> absolutely. you're making my point. >> what it's telling me that short-term rallies happen. >> gold has rallied for the last ten years. >> let him finish, go ahead. >> so what i was trying to say when i came on on friday two weeks ago, i also said i would not want to stand in the way of the short-term rally. in the long run i see very little value in gold. and over long periods it has ebbs and flows. >> if i may step in and separate the combatants we need to bring in a couple of other bulls here. michael farr, you're here with us. michael pinto talks about gold and how valuable it is. adjusted for inflation it's down 50% from the high. where are you on this gold thing? >> i think gold is probably a pretty good hedge if we're going
8:38 pm
to have runaway inflation. we a doubling of the monetary base in the past 18 months. sooner or later inflation bites. i don't see it anytime soon but gold has been a good hedge and it's always a safe haven. i don't think you make a lot of money but you tend to protect money in gold. >> stocks or gold at this point? >> in our ridgeworth large cap gold fund, we have an overweight in metal stocks. we do like it. from an asset allocation standpoint, we know the overall year over year inflation numbers are negative, but we think that momentum is going to shift as we go into 2010. >> this big run-up in gold we're seeing now, is it because the global economy is getting better or because it's going into the tank? >> i think it's because people are just looking for ways to get some return on their money. and gold has been traditionally a place people run to.
8:39 pm
my trouble with gold would be that given the headlines of the past year, i don't understand how gold isn't at 2,000 an ounce like inflation basis it was in the '90s. >> since 1971, it's increased about 9% a year on a compounded rate. gold has been an excellent store of value. and i would ask rishi, if he's ever read a history book. doesn't look like he's read much at all, what fiat currency has existed -- maybe he should have put his money in reich marks. what does he prefer more than the sanctity and preferred asset class for all these mill lynn yeah, all these investors have found safety gold. >> i would say food is an interesting store of value. arable land is a good source of land. >> so you're going to divide up your arable land when you want
8:40 pm
to buy something at the grocery store. >> you're going to divide your land if you want to buy food? >> in the run for the hills scenario, gold is useless. >> why is gold going up? because the world is ending or because the world is recovering? >> gold as an asset class is being treated just like a commodity in terms of -- >> gold is being treated just as if it were stocks and oil. >> it's just a place to park money. >> when retail manages are looking for a place to park money. it's being bid up by folks. i don't think it has anything to do with people going to the grocery store to use gold to buy groceries. >> michael farr, talking to a
8:41 pm
money manager today, he said stocks are up. gold is up, commodities are up. at some point, everything has to be down. >> yeah, doesn't it? and let's wait. but boy, you're on the wrong side of the trend if you're fighting this trend, you're losing money right now, dennis. gold is up and it's doing well. there's still almost $4 trillion in money market accounts. there's a ton of cash out there. the stim slus sitting still. but some of it is starting to move. we're buying every dip that hits. so stocks are going up. everything is going up. but we're 19 times earnings now. nothing looks cheap. >> we've only got 20 seconds. quick one-word answers here. suddenly boom, i found $10,000 cash, where would i invest it tomorrow across all the different asset classes? >> health care and tech. >> commodities and gold stocks in particular. >> tech stocks. >> good for you. alan gayle? >> tech, energy and materials. >> okay.
8:42 pm
ken? >> i tell you what, isle go against the crowd and say large cap, real mega caps have really lagged behind and they're going to have their day. >> industrials. >> guys, one thing i want to say that bothers me -- and understand, i sell the hope and i am a bull, but we have 5 out of 6 said equities and stocks and that instantly makes me feel like i've got to swim in the other direction. too many people are liking stocks now. >> nobody said the u.s. dollar did that? >> no, no one did. you have a point there. the dollar is self-healing, michael. >> tell the chinese that. they would love to hear about the self-healing currency. >> thanks very much, still a lot more ahead tonight on "cnbc reports." angelina jolie, brad pitt and yvonaron brook?
8:43 pm
also dennis's "hero of capitalism." see who tops the list. hey, it's great to see you're back after that accident. well...i couldn't have gotten by without aflac! is that different from health insurance? well yeah... ...aflac pays you cash to help with the bills that health insurance doesn't cover. really? well, if you're hurt and can't work, who's going to help pay for gas? ..the mortgage, all kinds of expenses? aflacc it's the protection you need to stay ahead of the game... exactly! aflac. we've got you under our wing. aflac, aflac, aflac... aflac, aflac, aflac
8:46 pm
♪ i need a hero >> you want to hear about someone who believes in something and stands up for what is right. a hero when everything seems dark and alarming. a hero who was able to hold on to hope in the most hopeless of times. and suddenly it was obvious. tonight's hero of capitalism is the individual investor. i mean, come on, guys. give yourself a hand. look at the numbers. stocks are up 58% from their march lows. investors are feeling the hope again, despite going through the scariest economic collapse, the worst market downturn since the great depression. we still got a long way to go to get back to where we were and we
8:47 pm
still have a lot of obstacles in our way, but the american investor has stuck with it. but he and she is coming alive. and that requires one impressive mix of hope and fearlessness. next up, angelina jolie, brad pitt and yaron brooke. no punch line. but it could result in a hollywood blockbuster. goodwrench... we roll out the blue carpet for drivers of these great gm brands. we can do the small things, the big things, just about everything... right inside your gm dealership.
8:48 pm
find out more at goodwrench.com. so many arthritis pain relievers -- i just want fewer pills and relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!? taking 8 pills a day... and if i take it for 10 days -- that's 80 pills. just 2 aleve can last all day. perfect. choose aleve and you can be taking four times... fewer pills than extra strength tylenol. just 2 aleve have the strength to relieve arthritis pain all day.
8:49 pm
8:50 pm
gm drivers.. it's goodwrench & go time. three great services: all in one place. all at one time. all for one price for most gm vehicles. but it's only for a limited time. at participating gm dealers. a. >> author and philosopher ayn rabd has some fay nous fans. among them, brad pitt and angelina jolie. they bought the rights to "atlas shrug." i'm looking forward to seeing what happens. another rand fan is here with us tonight. steven moore of ""the wall street journal."" and he says the current
8:51 pm
politicians are handling the problems similar to what rand parodied in 1957. he runs the ayn rand institute. would you go see this brangelina movie? >> i would a movie that -- that didn't work out, that deal. what i hope is any movie sells the book. you talk about heroes of capitalism. this book is about the heroes of capitalism and businessman. it is about, you know -- them being heroic not just from the economic sphere but being moral and ethical heroes. only book in history to portray them like that. and what we can hope is a movie never will capture whole book. go read the book. what the movie will do is sell books. that will be great. >> stephen, seems like all we hear about today is villains, capital its. >> many true. i wrote in my piece about this, about rand that became like the biggest piece in "the wall street journal" the last six months about how we are
8:52 pm
reliving -- but my last line of that piece was, you know, i'm not so sure we need to make a movie out of this because we are living it right now in real life in washington. what we have done in washington is really punish the small business entrepreneur. and that's the person that's really celebrated in this novel and it is too often we view small businessmen in washington and almost atm machines to pay for all these grandiose government programs. >> have we really punished the small businessmen? we are down on wall street. and business. but small business, too? >> absolutely. i mean, all the plans coming down the pike from cap and trade to health care are going to punish all of us and in particular, entrepreneurs. let's not forget because i'm pro-business. it does not lobby business. but -- big business, small business, really succeeded. and every small businessman wants to be big business. when they go to congress groveling and those are the
8:53 pm
villains. the villains are the businessmen who use government save us in order to advance. the heroes, small businessmen and large businessmen, are the ones that do it themselves. >> what's interesting, it is so amazing how everything we have done in this crisis is so much like what happened in the book. because what happened in the book is the economy started crumbling and had a financial crisis and the government created one program after another. bailouts and stimulus plans. every bailout in the stimulus plan made the economy worse and worse. there is a wonderful part in the book where the, you know, the hero of the book, finally come to the entrepreneur ask they say what can we do to turn the economy around? he says, fire all the bureaucrats. >> sounds like good advice. thank you very much. see you. brad pitt and angelina jolie and brooke in the same sentence.
8:54 pm
annouto get out of asks,those tubs? time man: when we want. man: when we're in the mood. woman: it's our choice. announcer: today, guys with erectile dysfunction can be ready with another dosing option from cialis. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment is right. so relax and take your time. man: tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure.
8:55 pm
don't drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury seek immediate medical help for an erection lasting more than 4 hours. man: if you have any sudden decrease or loss in hearing or vision stop taking cialis and call your doctor right away. announcer: today you have options, 36-hour cialis or cialis for daily use. ask your doctor about cialis today
8:56 pm
you can feel the hope rising. we are feeling better, all of us out there. the fear is fading. economic numbers keep getting better. layoffs are beginning to ease up. for weeks now, brazen correction in stocks, yes, sir, 58% since the lows of march and still no sell-off. and then this morning, i get an e-mail that is enough to scare
8:57 pm
you. the headline, quote, man-made disaster. market crash on thursday, september 17th, 1100 edt. comes from a guy claiming to be an economist in tel aviv. this market crash has purposes. it offers advice on security procedures. it is a shrewd method because it plays on fears all of us have. is the worst really over? are regulators better equipped now to handle my collapse? and can we really believe in this rebound? i have one answer for all four questions, guys. yes. yes, the work is over. wall street on the mend. regulators are better prepared and we can believe in this rebound. and how do i know? i don't want to guess. but you have to believe fear, great depression september the market down way below where it should have been, i think.
8:58 pm
and fear of another crash could stop the bunt market from rising from as high as it should. you have to believe. you have to know no matter what, we are going to be okay. we have been through more severe market turmoil than most investors ever faced and we survived it. we learned from it. and now it is time to profit from it. i'm dennis kneale. thanks for being with us. that's all for us tonight. "cnbc reports" back tomorrow. could someone toss me an eleven sixteenths wrench over here? here you go. eleven sixteenths... (announcer) from designing some of the world's cleanest and most fuel-efficient jet engines...
8:59 pm
to building more wind turbines than anyone in the country... the people of ge are working together... creating innovation today for america's tomorrow. thanks! no problem! here you go. whoa! that's some serious insurance. ding-ding-ding! ding! ding! fun fact -- progressive is the number-one truck insurer. yeah, great service at the right price. and nowadays, my business depends on it. do you have anything like that for my car?
291 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on