money." i'm jim cramer. see you tomorrow. -- monday. hey, larry, what do you have for us? jimmy, we are getting breaking news on the apple samsung verdict. jon fortt is inside the courtroom. stay tuned. we're going to bring you the verdict as it comes in. good evening, everyone. i'm larry kudlow. this is "the kudlow report." the other top story tonight, just days before mitt romney takes to the stage in tampa, a desperate attempt by the liberal media and the obama campaign to paint romney as a birther after this remark. >> no one's ever asked to see my birth certificate. they know this is the place where we were born and raised. >> he has since said he meant it as a joke, but it is a rather pointed joke, isn't it? here's what he told me back in april 2011. >> i think the citizenship test has been passed.

i believe the president was born in the united states. >> all right. so the obama attack dog team will do just about anything to keep attention away from 8.2% unemployment, a fiscal cliff that will lead to a recession and 2 million more jobs lost. we exposed the broken promises on growth deficits and entitlement reform. that's going to be a key republican message at the convention. also this evening, mitt romney embraced his private equity turnaround experience in a widely read oped in the wall street journal. he could have gone further saying there are two bankrupt companies -- usa government, inc. and usa economy inc. i'm going to use my turnaround experience. that's what he could have said. and is the white house putting the finishing touches on a secret second term agenda? tax increases, bigger spending, cap and trade, nationalized obama care? plus accommodating iran, russia

and who knows what else? also this evening, markets were up 101 points for the day. they were down, however, 117 for the week. it looks like it's all about the fed and that more stimulus is on the way. we begin tonight with a close eye on tropical storm isaac. it could rain on the gop parade. the storm is intensified. some florida counties have already declared a state of emergency. the executive producer for the gop convention. should the show go on despite the weather? >> the show goes on. we are optimistic that the weather will have rain, but florida is accustomed to rain. we are going ahead as if nothing else will happen here except the convention. >> what happens as you run this thing? do you have to move pieces around? we'll have the romney nomination

vote on monday, i guess. is that because of the weather? >> negative. that's been in the plan all along. the official proceedings and the folks from the campaign have been meeting extensively about the program. and us from the production side, we joined them. we participate in the conversation. it's always been the plan to have monday be the day that mitt romney's name is put in nomination. we'll see how it goes. >> let me ask you one more. what's going to make this the must see convention? what's going to make this get 40 to 50 million people who have got to watch ryan and romney? how do you stage this? >> what the folks did at the rnc and the committee on arrangements which overseas the convention and the campaign is they asked to have it as a fresh approach. they brought in a news producer, me. and a team of people i have assembled as a cross section from news and entertainment as well as political types. we are going to try to make this

an interesting and exciting adventure. for those that have seen the podium that's been designed it's a break from tradition. it's embracing new technology and we all have to remember the social media is a strong element in this political campaign. this gives us all the tools to make it as interesting and possible -- as possible not only for the delegates in the hall but also for the viewers or the bloggers or whatever at home. >> all right. will you take care of me? i will be waterlogged. will you take care of me? come to the cnbc sky box. uh need help. >> you don't have to worry. i have been living here since april. we made it through tropical storm debby. folks are resilient. we're going to be ready to go. >> many thanks for your time. next week i will be breaking out my cnbc poncho and coming to you live from the republican national convention in tampa, florida. one of the key mess saages of t convention will be promises

president obama made to the american people and then broke. there are many of them. let's take a look at just a few. first up, he promised 4% growth right here. but it's only 2% growth. second, we have had 2% growth in the jobs front. we were promised 5.5% unemployment. look what we actually got. 8.3%. out's closer to 15% when you measure it properly. let me go through the list. promise. 50% reduction in debt. reality, trillion dollar deficits four years in a row after mocking george bush. finally, promised entitlement reform. the reality is nothing happened. more government dpen den di, not entitlement reform. let's keep the promises where they are. let me bring in special guest jim gillmore, former republican national committee chair, former virginia governor. he knows a thing or two about

this. let me just begin. i'm assuming that all the speakers or many of them, at least many the first couple of days before paul ryan and mitt romney will go through a litany that's not unlike this. start me off. 2% growth was supposed to be 4% growth. what happened? >> well, we didn't put any policies in place to create growth, larry. i'm look forward to seeing the hurricane poncho. but we haven't done anything to create growth in this country. we know what you need to do. you've got to cut taxes in appropriate ways. you've got to make sure the middle class can get jobs, that people coming out of college can find careers and put those policies in place. it's almost like they are waiting for the turn or something. >> governor, what stopped the job creation? this is the worst economic recovery and the worst job creation in modern history going back to 1947. that, according to the joint

economic committee. you've got here they predicted that here by 2012 we'd have less than 6% unemployment. the reality is 8.3%. when you measure the marginal and discouraged people it's 15%. was it obamacare that stopped the hiring? was it the threat of taxes that stopped the hiring? after three and a half years you would think we'd have a lower unemployment rate. >> it's because there is a lack of confidence in the future. people out there that want to invest money are sure the taxes will be increased. that's the only litany we have heard out of the democrats for the last four years. you've got to increase faxes. we all know if you do you reduce investment. if you reduce investment you reduce employment. instead of getting the appropriate growth, and it ought to be 4%, we are lagging at 2% or less. we republicans think we have some programs that can be put into place that can turn this around. we don't think americans ought to wait any longer.

out's time for a change. >> what about fiscal policy? mr. obama mocked george w. bush during the 2008 campaign for the credit card to china and for the immorality of large budget deficit. the reality is obama has laid on over $5 trillion in new debt. trillion dollar deficits. four years in a row. you can blame the first one, maybe the first two on the after effects of the recession. not the second two. where has he gone wrong? is this just excessive spending and we are paying for it now? >> yes. excessive spending. if you don't have the revenue coming in and you're not going to put policies in place to bring new revenue in you've got to control spending. they have been doing business as usual. it's the same old, same old. that's why it's time for a change. uh think the republicans and mitt romney will bring a change and barack obama, i think, is determined to do it the same old way. keep spending the same old way.

that leads to tax increases and that means less investment and more unemployment and less growth. that's not the future we republicans want. we think we can bring a positive change. >> last one. we were supposed to have entitlement reform. when mr. obama ran he talked about entitlement reform. in the first year he talked about it. instead we have obamacare, new entitlement. what happened here is more government dependency. half the households in this country now are dependent upon government transfer payments. an extraordinary statistic, social security disability insurance, 3.6 million people -- a record number increase -- have gone in there. that's unemployed people. if you put it back in uh you would have 10 or 11% unemployment. what happened? we are becoming a nation of government dependency instead of solving the debt bomb of entitlements going bankrupt. >> i personally don't think the

answer is to hurt anybody or reduce benefits or this kind of thing. you can slow the rate of growth. but the most important thing is to get more people working and have jobs and opportunities and bring money into the system. then you're going to be in a better position than we are in now. right now, if you just keep doing things the same old way and putting more people on the dependency programs then we are going to end up where we are. the goal is to get people independent and people who can be independent. the best way is growth, jobs, innovation, investment and excitement in the economy. >> governor gillmore, am i right in assuming we are going to hear this theme of broken promises, certainly the first couple of days of the tampa convention? am i right about that? >> well, of course you are. the president said if he didn't fix the economy in the first three years or get things moving in the right direction he ought not be put back into office. we are here toeep that promise. >> thank you very much.

you have been seeing the banners at that time bottom of the screen for the past few minutes. we have breaking news coming in to cnbc. apple has won a patent infringement lawsuit against samsung. cnbc's brian shactman is at the breaking news desk. what can you tell snus. >> -- us? >> this is a huge story. samsung versus apple. counter suits for patent infringements. there were 33 jury questions. found samsung violated some apple patents. awarded apple more than a billion dollars. apple asked for two and a half billion. still a lot of money. the stock is up a little more than 1% now. we have jon fortt in there listening to the 33 questions. when he comes out he'll have more details. back to you. >> thank you very much, brian. we'll wait for jon fortt. coming up, ben bernanke says the fed has more stimulus tools ready and stocks soar triple digits despite terrible capital goods report. doug cote of ing could not be

more bullish. later in the show, president obama's secret second term agenda. we're going to outline the president's uh true intentions if he's voted back into the white house. hint, higher taxes and more spending. don't forget, free market capitalism is the best path to prosperity. this is going to be a choice election. and a quick programming note, next week i will be coming to you live from the republican national convention in tampa, florida. soggy or dry, i will be there. tonight, "the kudlow report," we are coming back. there are a lot of warning lights and sounds vying for your attention. so we invented a warning you can feel.

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stocks rallied triple digits on the buzz of the bernanke and the ecb, both taking further action. here now is doug cote, chief market strategist with ing investment management and don luskin of trend macro who wrote "better to be bearish" on the national review online website. mr. cote, i want to put up a chart of core capital goods orders which have been slumping badly for many months. if we can get that chart up on

the full screen. there it is. they are slumping badly. capital goods, the heart of the economy. the heart of hiring. the heart of private sector growth. doug, how can you be so bullish when you see a chart like that? >> please. this market has redefined climb a wall of worry. why? global worth has been mispriced to armageddon. fundamentals continue to march forward. the durable goods data point was one number that was pretty good. you've got to look at corporate profits, manufacturing, housing, retail, sales. it's all combined. fundamentals continue to march forward. this market has compelling value and it's going to also march forward. >> all right. let me go to my pal don. you want a bearish position until the election. why? >> it's more complex than that, larry. it's that right now we are in

the romney-ryan rally. the move in stocks off the bottom of the year started the day scott walker won his recall election by a landslide which is a signal. romney has picked romney as his running mate. highest quality thinker in the republican party but he turned it into a referendum on capitalism. here's the problem. if stocks keep going up on the

hopes that romney-ryan will win, the very fact that stocks go up might create enough economic confidence to re-elect obama. now that's a paradox that stocks are going to find hard to price. we could be in a world where it would be better for the stock market to crash, shatter economic confidence so voters would elect romney and ryan to straighten things out making stocks go up. here's the paradox. stocks go up, they elect obama, obama makes stocks go down. stocks go down, that elects romney. it makes stocks go up. complex picture. markets have a hard time figuring this out. we are in a nervous, edgy trading change until the trading change until the election. it's up 11.25 points, 1.7%. apple, very favorable verdict regarding samsung. doug, you heard don luskin on the election risk or lack thereof. what is your response? >> that's a lot of trust in politicians' ability to drive the market forward. i thought markets were driven -- >> excuse me. you didn't hear a word i said. i'm talking about the market driving politics. the theory of reflexivity where the stock market influences the real world. economics elect presidents. it's the economy, stupid. if people start feeling

confident they can elect obama. face it. that's a fact. >> hang on. the stock market could be the tie breaker. >> doug, you're an optimist between now and the end of the year. in effect, even using don's model may elect obama. >> but then i like divided government. divided government is the best way. again, i think there is way too much emphasis on the election. what i'm trying to do is get investors into this market. we are in the fourth year of a bull market. not just in equities but bonds as well. a well diversified global portfolio would have put you around 11% for the past three years versus 1% of cash on the sidelines. please, accept normal volatility, global risk, elections, europe, china, normal volatility. get in, participate in the market. it will rally. >> what's your favorite investment for us this evening? >> i like mid caps, global reits and global bonds.

>> don, this is something that troubles me. today's action, let's put the election aside. capital goods orders, nondefense, et cetera they are tanking. >> horrible. >> they have been looking bad. the market then rallies big time, whatever. 90 points, a hundred. on the bet that the federal reserve is going to come in with easy money because the economy is so lousy. you know, don, that strikes me as a lousy reason to buy stocks. >> it is lousy. what's going to happen, larry, it's a 50/50 about whether obama wins. if he does he'll think he has a mandate and go into the debate about the fiscal cliff at year-end absolutely hardened. he said he's going to veto any extension of the bush tax cuts for the top 5% of taxpayers. if he takes that position, we deadlock and fall off the fiscal cliff that's instant recession. don't say, oh, it will turn out fine. we're in a four-year bull market. it will be fine. it won't necessarily all be

fine. there is a 50% chance obama gets elected and within that a 50% chance he becomes a hard liner on taxes jointly that's a 25% chance we wake up on january 1, 2013 in a recession. that's not a fat tale. that's morbidly obese. >> if the fiscal cliff happen it's a problem. >> i appreciate you both. we have a lot of breaking news from this apple business. i appreciate you coming on. don, i will see you on radio tomorrow. doug, thank you very much. don, likewise. we have been telling you about the breaking news coming in to cnbc. apple stock much higher after winning a massive patent infringement lawsuit against samsung. cnbc's jon fortt was in the courtroom in san jose as the verdict was brought, read and so forth. let's go to jon. good evening. what can you tell us? >> good evening, larry. it's not a total victory for apple. but it is close.

the jury says apple is due more than a billion dollars in damages for multiple violations where samsung copied apple's designs of hardware and software. there are some exceptions. the jury found that the ipad design is not completely protectable by apple legally. but in phones, across much of samsung's line of phones as of just a year ago, violations have been found and this is on the higher end in terms of damages that have ever been awarded in history. this will be appealed. samsung was already talking about getting their papers ready to get filed on appeal. we saw it with oracle sap a few months ago. expect the number to be taken down. what's important is when a junl appellate panel hears the case

the findings of fact the jury submits, the facts will not change. they can apply the law differently, take down the award but the facts don't change. that means that for this market, the smartphone and tablet market, all of apple's rivals are on notice they need to be careful about how they design phones not to get too close. that's particularly important as we get ready to see amazon launch hardware, nokia and apple, of course, we expect to see it launch hardware with two different announcements. >> what does this do to sam sung? to the company, the corporation? >> in terms of dollar amount, a billion dollars is not a lot to samsung. they churn that out very quickly in terms of the number of phones and other appliances they sell. what this does is put samsung's brand in an interesting spot. they have been trying to get the branding message out that they are inventive, they do create designs.

expect that to ramp up and this was just the first battle. >> jon fortt, thank you very much. coming up, a congressional approved agency strips lance armstrong of his record seven tour de france wins for cheating. the cyclist has thrown in the towel. he's the victim of a witch hunt. next we explain what's going to happen next. ♪

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so lance armstrong has announced he will no longer fight accusations that he -- during his cycling career. for more on this story joining me now is the co-host of cnbc's sports biz game on.

erin, thank you very much. armstrong is calling this an unconstitutional witch hunt. your thoughts? >> he is. i think he feels like he's being gone after. i think a lot of people see him as a hero. so, you know, it's a question of what's right to do in sports and then there is a moral question. you know, he's given back a lot. he's a cancer survivor. he's inspired. his foundation is very successful. the big question here is what is it going to do to the foundation and his legacy that so many people like. >> not everybody agrees with the decision. >> yep. >> the international cycling union, for example, doesn't agree with the decision. what does that mean? >> well, you know, lance rejected the idea his reputation on being a fighter, you know, fighting cancer. fighting for other people who are fighting for their lives and yet he's not going to stand up and fight anymore when it comes to going on trial. he says it's a witch hunt. i'm tired. it's taken a toll on me, on my family, on my career. enough already. >> can he still make a buck? he'll give up the medals. can he still use this great franchise and brand he built up? >> i think he can. i think his brand will suffer as any athlete suffers when they go through that. this is severe.

he's inspired so many people. not everyone will leave his side. people want to believe he's a hero. i think his foundation which to date over the 15 years it's been in existence has raised $470 million. that's not going to continue. uh i think it will suffer a little bit. >> thank you very much. we appreciate it. erin is co-host of cnbc's sports biz game on. watch it on the nbc sports channel. thank you. we appreciate it. coming up, president obama's secret second term agenda. well, guess what. higher taxes, more spending, nationalized medicine. accommodating thugs in iran, russia, syria, and china. is it outrage or am i being too tough? that's next up. [ male announcer ] when a major hospital

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welcome back. in this half hour, mitt romney embraces his turn around and private equity experience saying when trouble arises run right to it, not from it before the problem gets worse. unfortunately president obama is running away from the fiscal

cliff. and is the china economy a global disaster in the making? front page new york times reports massive piles of unsold inventory goods and when the correction comes it could be devastating for china and the world. first up, so far this election cycle it appears president obama has been tall on mitt romney attacks but short on second term agenda proposals. or has he? take a listen. >> this is my last election. after my election i have more flexibility. >> i understand. >> what does that mean? more flexibility? today, british daily the independent reports that the obama administration is pushing greece to delay a potential exit from the euro zone until after november 6. if all that weren't bad enough his economic agenda at home could be higher taxes and

spending, worse regulation, nationalizing health care. why no mention of this on the campaign trail? he never says much of anything. we have keith boykin, jim pethakoukous. i want to start with the report that the president and his people are asking the european union to postpone. is obama doing that? >> i think this administration will take whatever measures are necessary to make sure the guy holding up his hand in january is barack obama. financial crisis swept them into power. uh think they think the financial crisis in europe will sweep it out of power.

>> i don't think he has much clout. what's your take, keith? >> more clout than the previous president did in europe. the actual thing is that america is doing relatively well compared to europe. in spite of all the economic turmoil going on, our unemployment rate is lower than it is in europe. the gdp is higher than it is in europe. if you look at britain they are in a double dip recession. we have actually managed to avoid it because of president obama's policy. people will look to us and expect leadership from the president. >> larry, i didn't think i would live to see the day. the standard of which we judge u.s. economic performance was france. >> jimmy, how high are taxes going in the second obama administration if there is one? >> i think this president's number one priority is to get rid of the bush tax cuts which is why he said he's only willing to extend -- we know he wants to get rid of higher ones but only

wants to extend the middle ones for a year. he would be delighted to let the tax cuts expire at the end of the year. get the rates back up to where they were and use the extra money for -- i don't know -- spending on clean energy or what have you. that's the number one priority, getting rid of tax cuts and reversing -- continuing the path to reverse the past 30 years of pro market lower tax deregulatory policiepolicies. >> of course. obama is waiting to force his socialist anti-gun, anti-america agenda on us as soon as he's elected for president even though he didn't do it for the first four years. the president wants to cut tax rates from middle income americans and ask those at the top to pay their fair share. i don't know es whooi that's a radical idea. >> how can you call for permanently extending the middle class tax cuts? >> he wants the same tax rates we had under bill clinton. >> no, he wants higher taxes than that. higher taxes than that.

he wants the obama taxes. >> the top tax rate he's proposing is 39.6%. you know that. >> no. he doesn't want to go back to the tax codes. he wants the rate to 45% and a 4% investment tax. he'll tack it on top. >> let me go to keith. a lot of people are expanding the epa, environmental protection agency, to stop the fracking and so forth, to expand the national labor relations board and unionize all the new health care workers coming to obama care. do you think obama won't force the agencies and have them make policy to run this economy?

do you think so? >> the wall street journal has verified it. bill clinton will be speaking at the democrat yuck national convention in charlotte. he'll make the case for why president obama is following along in the same policies he advocated. [ laughter ] >> yes, he will. thirdly, you mentioned larry the wall street journal portion op-ed from mitt romney today. if you see a problem you have to run to it. that's the opposite of what mitt romney has been doing. he's been running away from bain, his tax returns, the todd akin story. he comes out with birther nonsense because he wants to talk about anything other than the reality of why his campaign is failing. >> is there anything stranger than having bill clinton introduce barack obama? in speech after speech barack obama has ripped the '90s and

'80s as being an era of inequality. everything other than the tax hikes the thinks were a huge mistake. >> i think he'll give a great speech about bill clinton. >> no, no. it will be the -- >> he's closer to barack obama than to george bush and mitt romney. >> bill clinton may mention barack obama's name once or twice but it will be about clinton. it always is. thank you very much. coming up on kudlow, a screaming headline in today's new york times shows china's economic problems are mounting. that could mean massive problems for the u.s. here and we're goeng to talk to expert peter navarro, author of "death by china." this is a nasty story. stocks aren't looking at it and they should. china, wow. ♪

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recession than anyone imagines with bad consequences for the world economy including the usa. so here now we welcome back peter navarro, business professor from the university of california irvine, author of death by china which is premiering as a movie documentary tonight. congratulations. you know, peter, on this china story, keith bradsher of the new york times has consistently reported that china's growth is vastly lower than the official communist party says. here he comes with a story about the glut and overhang stopping hiring, stopping production and which if the bubble bursts all hell could break loose. >> what we have to be careful of and fear -- china's strategy is if they can build it they can export it. now they will start dumping here in america below cost.

that will put more of the manufacturers out of business, making it harder for our manufacturers to export to china. >> what happens here? give me a for instance. i agree with what you said. is it possible that the chinese economy as bradsher of the new york times suggested, is actually growing when you look at electricity, production and other things as little as 2% or 3%. not wall street's % or 8% and the inventory glut? if there is one thing that drives recessions it's inventory sell-off, peter. >> it's more like they were growing at 6% but building inventories, larry. if the crash is going to be harder, the problem they face is they are an export-dependent economy and they sucked the blood out of the european and u.s. economies so our consumers can't float their economy. so it will be the butterfly effect on steroids. when china goes down they will take down the commodity areas, russia and so on. >> what happens to the usa? >> well, the usa will see

dumping here in the u.s. more. we have already had huge problems with that with things like steel. we'll see more as china tries to dump inventories here to put more domestic manufacturers out of business. we won't be able to export to china. we'll have slower growth as will china. i'm worried about this global deceleration. first the u.s. and europe. china, australia, canada, russia, brazil. if you look at brazil which was a miracle two years ago the gdp chart is a downhill slope now. >> so the stock market in china has been flagging this for a long time. in a terrible bear market. and they have really stopped exporting. i'm looking at stocks, exports, at the reports from the new york times. this guy bradsher is a hell of a reporter. this cannot have a happy ending. >> the other shoe to drop is the real estate bubble. i don't know if you saw the clip on the real estate bubble in vietnam and they started locking

up the rich people. they have the same thing going on in china in the residential and commercial market. we'll see the real estate bubble collapse. it will be much worse than here because it was such a cowboy revolution over there in the housing market. >> we'll leave it there. good luck, peter. >> thanks. >> good luck on the premiere of the movie. up next, mitt romney's headline-making op-ed saying he can fix america the same way he successful fixed companies. so what took him so long to embrace his proud past in private equity? we'll explain it when we come back. road trip buddy. let's put some music on.

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during the aahn for all event.

so apple stock continues to climb. stock is up almost $12 after it wins a patent infringement lawsuit against samsung. let's check in with our pal, jon fortt in san jose. jon, what are the implications to the other tablet and phone makers? fl. >> for the tablet makers, implications are less clear. apple didn't win on all counts as far as protecting the ipad design. for phone makers this is a sweeping decision. so many of samsung designs were found to be in violation. they will have to trade carefully when apple comes out with the new phone not to get too close. for google in the user interface, apple's home screen was found to be iconic in the sense that samsung violated by getting too close. google will have to be perfect

the android os doesn't look too much like iphone. 18 years after apple lost a similar suit to microsoft they have won this time. >> we appreciate it. so today mitt romney got in front of all the criticism and defended his record at bain capital telling folks he's a turnaround guy. he'll use his business experience to turn around the usa. i say that's what we need. let's ask jimmy williams. mark simone, talk show radio host and guy benson from townhall.com. mark, i'm sure you read this thing. did romney make the case that the turnaround experience can be applied to this bankrupt company called usa government, inc.? >> made the case but a mild case. from the beginning he didn't explain bain. it's a fascinating story. 78 companies turned around. there were two losses there. what's more kas fast nating is

bain consulting. the best consulting firm in the world. became the best business consultant on earth. such a star that's why they financed him in his company. he needs to tell his story in detail. >> he didn't talk about those things. he didn't defend making money there and his oub business success. he defended the management style. but didn't go where you wanted him to go. >> the steel mill was closing when bain came in. they kept it alive for ten years, turned it around for years. it only went when the whole american steel industry went. >> jimmy, i want to go to you on this. here's what he says. when trouble arises, when you see a problem, run toward it before the problem gets worse. where is president obama on the tax and spending cliff that will put us into a recession? he is not running toward it. he's running away from it. that's a big problem.

>> he ran away with it. last august, one year ago we were having the exact same conversation. congress was doing nothing about what was happening except sending us closer and closer and, by the way, the white house was playing along with it to the fiscal cliff. all of the sudden i remember, oh, we have a grand deal. here comes sequestration. what is that? massive across the board cuts. they stopped it for one year. now what's happening? everybody is like, oh, i didn't mean that. i didn't want that. >> there is buyer's remorse on the spending cuts. >> both sides of the aisle. >> but the house has already passed. this is what interests me. the house republicans have already passed an extension of all the bush tax cuts. >> right. >> the senate has already passed an extension up to 250,000 dollars. okay? so both houses have in this rare instance actually got something done.

where is obama to bring them to the oval office and make a deal to find common ground? romney is saying when you see a problem, go solve it. what i see from obama is when you see a problem, run away. >> you're right. i think this is one of the biggest indictments you will see against the president this coming week at the republican national convention. looking at some of the speeches governor chris christie has given through the last couple of years, one in particular comes to mind at the reagan library. he really went after obama's leadership or lack thereof. i think that was a preview of what we'll see in the keynote tuesday night. they will hammer again and again. it will come back to the president's proposal or the way he presented himself in 2008. i will bring everyone together. he's done exactly the opposite. >> do you think though -- let me ask a question regarding romney's own piece here. did romney make the case that he, the turnaround guy, can turn

around this bankrupt company, usa government, inc. and this bankrupt economy called the u.s. economy? in other words, he starts out saying about the turnaround stuff which is great, go for it. he lists brookstone, bright horizon, steel dynamics. >> seven. >> seven companies. >> that's good. i like it. why didn't he go further and apply it to both the government and economy? i felt he and his speech writers should have had a more well developed analysis. >> i like -- first of all, i'm not going to bash private equity. in the past i have represented blackstone and -- i didn't blast it when it began about bain capital from the obama campaign. the problem with it is running a small company, or medium-sized company whether out's staples, a sfeel mill or whatever is different from running the federal government. running the commonwealth of massachusetts is different from running 50 states with myriad different problems. believe me in a $16 trillion

deficit. that's a different issue. does he have the basis by running a company well? yes, he does. >> he has the skill set. >> yes. by the way, bill clinton never ran a company. reagan never ran a company. >> reagan ran a gigantic state. >> yeah. >> what was his business experience? >> reagan ran a large labor union, too. >> some point to past presidents. romney ran 75 businesses. he can turn around anything, any time, anywhere. this convention next week he'll have america's ears. that's the last chance to tell his story. >> 40 million to 50 million people with l watch it. >> he has to make the case that i have solved problems r. obama talks about problems and he's great at talking about it. >> he's basically saying he prefers entrepreneurs to government. he'd lower tax rates, replace obama care, roll back regulations. is that going to be what he says

next thursday at the convention? >> yeah. it's going to be contrasts and then a very positive message about what his philosophy is. i think that's what people have been waiting, sitting on the sidelines saying, what's he going to roll up his sleeves and get into this and talk about bain cap al and bear hug it. i think the romney campaign is fortunate. they have had 120 million dollars spent against them over the summer. a lot in negative ads. a lot of inaccurate ads still trying to hang onto the bain capital thing and twist it. they have survived. >> the polls are evening up now. real quick, mark. likeability. i was talking to laura ingram about it today. what does romney have to do? i think he's terrific. whatever. >> you want a likable president. in the '90s you needed that. in the times of crisis you went for the sober, austere guy, fdr. this is what you need now.

>> thank you. jimmy williams, mark simone and guy benson. we appreciate it. i'll be braving the storm and coming to you live from the republican national convention in tampa, florida all next week. i will have my parkas, green jacket, wellies and duck shoes. that's it for tonight's show. thanks for watching. see you monday from tampa. waterlogged or not. ♪ ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free.

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