and i promise to find it for you on "mad money." i'm jim cramer and i will see you tomorrow. hey, larry, lots of action at the rnc. what's lined up for the show tonight? >> all right, jimmy. the "the kudlow report" live from tampa at the center of politics. i'm larry kudlow. this is a special edition coming to you from the republican national convention in tampa. we'll be here all week bringing you the sights and sounds, themes and visions as well as one on one with all the key players. right off the top we'll be joined by oklahoma governor mary fallon and p former presidential candidate herman cain, scott walker and that's just the beginning. the start of the convention delayed by tropical storm isaac which continues to churn in the gulf of mexico. cnbc's own michigan caruso-cabrera anchored the story. good evening. >> good evening. tropical storm isaac stole the show at the republican

convention and it is now making a direct hit for the gulf coast, namely new orleans. this on the 7th anniversary of hurricane katrina which caused billions in damage, killed 1800 people and is still being felt today. we have a team of reporters to cover it. we'll have the latest. back to you, larry. >> many thanks. now back to the gop national convention. to get the latest on today's events who else but cnbc's own john harwood on the floor of the convention. good evening. >> good evening. tropical storm isaac did delay the action at this republican convention but it's certainly not going to stop it. the show is going to go on. it's quiet on the floor now. we are standing amid some of the key delegations here near the podium. you have a lot of wood panelling to soften up mitt romney and

make him more appealing to american voters. we did have action this afternoon at the convention. it did convene though despite isaac -- and i have to caution viewers the action was intense. here are the highlights. >> it is my privilege to proclaim the 2012 republican national convention in session and called to order. [ cheers and applause ] >> republican national convention stands in recess subject to the call of the chair. >> the real thing starts, larry, tomorrow, when we begin the heavy speaker program with the headliners that republicans have lined up. anne romney, designed to soften mitt romney's image. chris christie, governor of new jersey. on wednesday you've got condoleezza rice, the former secretary of state, paul ryan, the vice presidential running mate. cleanup night on thursday. you have marco rubio, the star freshman senator from florida and you've got mitt romney, of course, delivering the acceptance speech, the one

essential element of the convention. all of the messages will be aimed at about eight swing states with 95 electoral votes to motivate the base and also reach some of the undecided voters. >> many thanks to cnbc's john harwood. let us bring in our guest. republican governor mary fallon who is scheduled to give a primetime address tomorrow evening and former republican presidential candidate businessman herman cain. governor, uh want to talk to you about tax reform and your speech. i can't help myself. does mitt romney need to be softened up? does he have a pleasantness problem? is this media beltway gossip stuff right? >> i don't know what he was talking about. i think governor romney is a personable man, a man that's a family man. he demonstrated that. he's easy to talk to. very pleasant. i think he really appeals to the american voters. i think you will see it this

week as they tell his story to the american public and talk about his leadership skills, his vision for america. >> did you see him flipping pancakes on tv? he had nice wrist action. i think his wife anne was horrified but he was perfect. if that isn't a nice guy, what is? flipping pancakes! >> absolutely. >> you're not troubled about that. >> no. >> herman cain, i don't know if i should ask the same question. >> please. >> does he have a pleasantness problem? >> governor romney gets a bad rap. when i was a presidential candidate, one of the most likable candidates was governor romney. it's just all of this stuff about trying to paint him as not being warm. he was one of the most likable candidates on stage when i was participating in those debates. it is a bad rap. >> you're supporting him. >> yes. >> you have a truth squad. you and bernie marcus, one of

the founders of home depot. >> yes. >> tell me about the truth squad. >> we begin the truth tour in september. 30 cities in 30 days, three events a day. in the morning we'll meet with people of faith and black leaders in the community. the noon event will meet with ceos and business people to encourage them to share information with their employees and the evening will be on a college campus with college or university students. we're calling it the truth tour because unfortunately the truth is not getting out there about economic freedom and free enterprise the way it should. >> can i say romney is really not a felon the way he said he was? can i say he didn't have anything to do with the tragic death of the woman with cancer? is that the kind of truth squad stuff you're going after? >> yes. the kind of stuff we'll share with people and the national debt is for real. this debt clock at the convention is no stunt. it will hit $16 trillion before

the week is over with. the fact that the economy is not growing. it is growing at less than 2%. on and on. we want people to understand the facts and they will make the decisions. that's what the truth tour is about. >> governor fallin, you have been known as a tax reformer in oklahoma. you are still working at flattening the tax code. i want to ask two questions. number one, insofar as your talk tomorrow, what vision, what message will you have? do you believe that the romney-ryan ticket has enough tough pro growth tax reform to connect with the unemployed and the middle class and everybody else in this country? >> absolutely. i am thrilled with the ticket. in fact, governor romney has a great vision for america. he's outlined what his vision is. he'll keep our taxes low, reduce taxes, focus on the deficit, the debt. he'll be a great job creator. he's talking about creating is it million new -- 12 million new jobs in america.

congressman ryan is a great budget hawk. he understands the federal budget. he talked about getting en ti entitlement spending under control. >> is there a doubt as a successful politician. house member, governor, lord knows you will climb to other things. is there any doubt paul ryan wasn't a good choice? >> he was a fantastic choice. if you think about just what herman was talking about, $15 trillion in debt. we are in trouble. president obama is talking about raising taxes. whether it's obamacare, the bush tax cuts expiring, sequestration. there are so many things over the next couple of months that could really slow down our economy even further when we already have 23 million people unemployed. >> 9-9-9, a stroke of genius for

taxes and marketing. do you believe that governor romney and house member ryan have a strong enough growth message -- not austerity but growth. this election is about the economy and jobs. no other issue is remotely close. have they gotten it done or is it yet to be done and communicated at this convention? >> they have a great start with what they have already laid out in terms of across the board tax cuts, reducing capital gains, et cetera. that's a great start. as you know i have a reputation for being bold. i don't think they have done enough yet. but i have met with governor romney personally several times. i am encouraging him and representative ryan to change the narrative. that is let's talk about tax code replacement. you don't have to specify whether you like a flat tax, fair tax or 9-9-9. i would be happy with either one. let's get the american public to talk in terms of replacing the

tax code. that would be more aggressive. >> how about cutting the tax rates? >> yes. >>le cut the tax rates across the board. >> yes. >> great idea. jack kemp, ronald reagan, we all know it. they have to remind people. it isn't just rich people. it's across the board. >> all americans. >> who are in trouble now. >> exactly. that's what the romney-ryan plan is. they need to push the message home more. >> hit it really hard. >> absolutely. >> thank you very much. governor mary fallin and herman cain. back to today's other big story. michelle caruso-cabrera at cnbc headquarters with the latest on tropical storm isaac. >> it looks like you will be spared the brunt of the storm in tampa. tropical storm isaac is barrelling to the northern gulf of mexico. the weather channel has the

latest. greg? >> thanks. right now isaac continues to move northwestward slowly across the northern gulf of mexico. it will be making land fall tomorrow morning. the latest advisory from the national hurricane center, winds were 70 miles per hour as of 5:00 eastern, 4:00 central. the pressure is now 981 milliba millibars. that's low for a 70 miles per hour storm. the winds will come up. later advisories tonight. it is moving northwest at 12 miles per hour. here are the expected impacts. we expectle people along the northern gulf coast to complete preparations today for isaac's impacts beginning to be felt late tonight. here is the official forecast from the hurricane center. by tomorrow morning, 7:00, it will likely still be offshore, the southeastern tip of louisiana, but not by much. it is expected to be a 90 miles an hour category one storm. no travel expected tomorrow. it will move slowly inland.

this will be a long duration event. likely moving through southeastern louisiana tomorrow morning. expect a long issue with this storm. back to you. >> thank you. p back to you, larry. >> thanks, michelle. coming up, big banks aren't so sure they love the romney/ryan ticket because governor romney has occasionally been critical of too big to fail. we're going to talk to rock dale security's financial strategist next up. later on, the founder and ceo of newsmax, one of the largest, most respected conservative news media organizations. he has a lot to say on the ticket. don't forget. free market capitalism is the best path to prosperity. i hope right here at the tampa republican convention to hear talk about free market kamtlism. uh i'm larry kudlow. stay with us.

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>> announcer: this is a special edition of "the kudlow report." live from the republican national convention in tampa, florida. here now is larry kudlow. >> all right.

let's do some stock market work. it's a flat day on wall street. investors are working on egg shells ahead of bernanke's speech this week. dow dropped 33 points. nasdaq off three. s&p 500 fell one. not much of nothing. we are in tampa, hometown of one of our favorite guests so we had to have him join us here. noted bank analyst of rock dale security, dick bovay. let me get your take. mitt romney on banking. how do you feel about it? >> disappointed. i think he's not come out to say, look, we have wonderful big banks that are successful. we should be supporting them. in other words, banks like wells fargo make more money than ibm or ge or walmart. citigroup, the people think is a weak and failing bank makes more money than coca-cola or pfizer or google. jpmorgan makes more money than all the other companies i mentioned. >> i hear you on this.

i think one of mitt's problems too big to fail bothers them. then there is a subset that says too big to manage. i think out's too big to fail and they are worried about community banks that can and will fail all the time. >> see, the problem is the community bank model doesn't work. it's amazing, but every day for the last 27 years. has gone out of existence. the model clearly doesn't work. why do we keep wanting to bring it back. something that just doesn't work? on the other hand, the big banks have got to fund the u.s. debt. we have 16 trillion in debt and the net effect is we aring asking foreign banks to raise the money for that debt. there are 21 primary dealers. 14 of them are foreign banks. >> do they get advantages, those

primary dealers? i think some of your grassroots tea party republicans worry that the fed buying up the federal debt, doing open market transactions with all the big banks on wall street, the big banks really are the beneficiaries and the little guy gets screwed. >> the big banks. the primary dealers definitely got a benefit. one of the big benefits is that the dodd frank act says they are specifically excluded from the volker rule. they don't have to watch the volker rule related to treasury or securities or large municipalities. so they do get a benefit. they also get preferential treatment in terms of the way the government hands business out over time. but, again, we don't think european banks are in great shape. yet, there are eight european banks that are primary dealers. only seven american banks. 14 all together are foreign banks. >> i need some investment wisdom. i was reading your notes and you're optimistic about the stock market. >> extremely so.

i really believe in the seasonality of the stock market. taking stock prices back to 1888 there is a seasonal thrust. after world war ii the biggest event is that the fed always provides seasonal easing at this time of year. >> right. >> because we have the holiday season coming. >> even with the so-called fiscal cliff and all the political uncertainty you're a buyer of stocks. >> absolutely. >> all right. how high will the dow go, dick bove? >> we suggest the s&p will get to 1555. >> that's a big number. way past where we were in 2007. way past. >> that's 10% growth from the current level. >> all right. >> it's doable. >> an optimistic dick bove from tampa, florida. next up, conservative powerhouse chris ruddy, founder and ceo of news max. an old friend with a thing or two to say about the romney-ryan ticket. i'm larry kudlow at the rnc

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hurt or help the romney gop ticket? >> uh i think it's knewle tral or hurts. it hurts in the sense that we are looking for middle voters now. we are in a desperate battle. 5% of the country, maybe 7% tops are undecided. medicare. ryan had a strong position on medicare, one that i think is a principal position. the voters are not happy and satisfied with his solutions on this. >> does that hurt him in florida? take it down in florida? >> i don't know if it takes the ticket. it will put florida where romney had florida sewn up. it's in jeopardy. >> there was a poll out today and independents and likely voters actually showed a preference for ryan's second plan. not keeping medicare, but the idea of a choice -- half a dozen insurance policy choices and give him so-called premium

support subsidies. there was a poll that said people like it. >> i think the middle voters, not base voters, conservatives like you and i. we love ryan. he stands for something we love. middle voters want incremental change. they are afraid of ideological change. that's why i think bill clinton, you know, there's been a big re-evaluation of clinton on the right. voters are looking for that type of dynamic leadership which obama hasn't provided. i think mitt romney has this opportunity to come in and say remember the days in the 90s when clinton, the republicans and newt worked together and we had a transformational change. >> this is romney the deal maker, the transition guy, the turnaround guy. as you say, not unlike clinton. >> romney was governor of massachusetts. he has the ability to work with the democratic legislature

there. significant initiatives passed. obama has nothing. mitt romney needs to tell us what he's going to do in the next four years. >> he hasn't made the connection. people say that. the case against obama is clear. high unemployment, low growth. you made it yourself very succinctly. the question is why do the polls not yet show a tremendous flocking to mitt romney to solve that problem and is that going to be his biggest absolute number one priority when he speaks on thursday? >> people really want to change from obama. but they want to change to something positive. i think there's been a horrible messaging from the republican side. we have been talking about the birth certificate issue, medicare. what about jobs? what about what mitt romney is going to do to trance form the

economy? people like obama on a personal level. polls show it. i think they can learn to like mitt romney. but he has to open up not just on a personal level but a policy level about how he wants to bring change to america. the change that obama didn't bring. >> the change in the economy. the change a in jobs. the change in our bankrupt finances. >> he's not closing the deal. paul ryan is seen as a budget cruncher. they used to joke he's a data guy. data guys don't win votes. >> they used to call me a data guy. >> that's why you like paul ryan so much. >> numbers are important. >> they are very important. >> people want truth-telling. >> study after study, toefr reagan years, back in the '70s, people like politicians they like. we have to get this -- there was a full page ad in the tampa bay tribune. did you see it? >> no. >> the obama campaign attacking

romney for sending jobs overseas. they are painting him as an elitist. he has to show he's for the aspirational sense of the middle class. >> do you think he'll get it done on thursday night? there could be 40, 60 million people or more watching the speech. >> this is a hugely defining transformational period, this convention. he can pivot and really focus on what his promise of the future is and how barack obama failed in the past four years. >> it's there for the taking. >> absolutely. >> we appreciate it very much. outspoken, very good. up next, an update on the dreaded isaac. our own brian shactman is live in new orleans. plus, scott walker of wisconsin made the trip to tampa and joins me here live next. i'm larry kudlow. please stay with us. i don't spend money on gasoline.

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>> announcer: kwo"the kudlow report" continues live from the republican national convention. here's larry kudlow. >> welcome back to "the kudlow report" live from the republican national convention in tampa, florida.

i'm larry kudlow. in this half hour, wisconsin governor scott walker is our very special guest. if there is one issue prominent at this convention it is entitlement reform and truth-telling of the potential bankruptcy of the entire country. do you know what? truth-telling worked in wisconsin. question, can it work nationwide? also this evening, virginia governor bob mcdonnell, head of the platform committee. is it focused more on jobs and the economy or on social issues like the todd akin mess? we'll go inside what the committee is thinking and reveal what they are going to announce tomorrow. first up it's quiet behind me because tropical storm isaac put a hold on the convention. if you are watching in hd, you will see we have the live radar loop in the little box in the right side of the screen. let's get an update on the storm and all the technology i just talked about with cnbc's own michelle caruso-cabrera back at global headquarters.

>> tropical storm isaac expected to become hurricane isaac by tomorrow and possibly in its sights an area all too familiar with storms -- new orleans. brian shactman has details. >> it is gathering strength and headed right for us. depending on the tides, storm surge is the big issue now. we landed this afternoon and it was an exodus out of new orleans in terms of traffic. our producer went to walmart for provisions and a lot of shelves looked like this. completely empty. in terms of oil drilling and refining the storm's path goes over a lot of operations. many of which have been shut down. at least 1.3 million barrels per day of gas. gas futures are touching a five-month high today. 80%, a million or so barrels a day. those changes announced

venezuela give it a short term price volatility. as for the long term potential here it depends on what the storm does. of course scott and myself are all a over this story starting at 6:00 a.m. tomorrow morning. >> you mentioned the empty shechls. we learned a lot of people didn't leave with hurricane katrina. is that the case this time around? >> people are leaving. i talked to folks in empire, louisiana, which is affected by the gulf spill. i talked to a guy's mom. she said, i ain't leaving because i don't believe it's going to be a big deal. she said the reason her son left is his wife didn't want to be around. some are sticking with businesses, hotels and restaurants. more people are getting out. they are annoyed but want to be safe. >> thank you, brian. stay safe. larry? >> many thanks to michelle and brian shactman. this just in to the convention headquarters. an exclusive from the hill.

51% of likely voters say the issue most important to them in this presidential election, jobs and the economy. fiscal issues in second at 29%. social issues trailed the pack with only 13%. 72 hours from now mitt romney takes the stage behind me in the biggest speech of his life. it's one that could decide the presidency. cnbc contributor robert costa has sat down numerous times with the governor and his top sources inside the romney camp. good evening. all right. the most important speech in mitt's life. i've got to ask. what's his message? where will he begin in your view? >> great question. one of the fascinating things is political conventions are usually about the candidate's biography. this speech for romney won't be about bain capital, his career. it will be about the economy. he's focused on jobs and growth. he's listening to the kudlow message.

>> i'm all for the kudlow message of jobs and growth. i am aware of the reports and some of the polls that governor romney has what some call a like ability problem. i was impressed he was flipping pancakes and had nice wrist action. i was impressed he wore a nice button down shirt from costco. but if he doesn't go through the biography and his self-made rise to the top is he missing something, not telling 60 million people who may be watching who he is? >> one of the strat jis said mitt romney's speech is about his economic vision, but the speech to watch is tomorrow, tuesday. ann romney will go up to try to personalize mitt romney. there are 13 screens all framed with wood trying to bring a personal side, a warmth to mitt romney he doesn't often convey. romney strategists are leaving

it to ann and the five sons to convey who their father is. >> will the governors take the same approach or will they stay on the hard issues of economy and jobs? >> hard issues of economy and jobs. you will see the governor talk about his days at bain. he'll bring in people who know him as a lay pass and talk about faith. >> many thanks. joining me now for an exclusive interview is governor scott walker from wisconsin. welcome back. i believe you turned that state around. you are speaking tomorrow? >> i am. >> tell me your message. this linebackerability stuff as well as the economy and jobs. how do you balance it to mitt romney's best advantage and yours? >> he has to tell a little bit. to the extent he talks about who he is, his wife says, he has to

show it will lead to better things for the economy, the budget and jobs. in our state, that's how i won my second election with obviously not just republicans but independent and discerning democrats. i think mitt romney can win. particularly now that paul ryan is on the ticket he can win not just in wisconsin, but virginia and throughout the midwest. >> that's a key point. you are a truth teller of the difficulties with health care and salaries and more. it worked. people like a truth teller. can it work nationwide? if you tell the folks how bad the medicare situation is, how difficult social is. if you level with them about the lack of employment does truth telling work in a national election? >> i think it does.

the battleground states in the midwest like iowa, michigan, ohio, pennsylvania, states where people want to hear the truth. where they are independent or sometimes voted for republicans or democrats. think about paul ryan's congressional district. barack obama carried it four years ago. there are a good number of swing voters who elected bill clinton. the economy is not better and the budget isn't balanced like it was under clinton. they need to admit they made a mistake. >> i was at dinner last night with michael barone. he's got his ipad. i think it was around dessert. he's got the ipad and comes across a michigan poll from inside michigan showed romney and obama dead heat even. that blew me away. >> who would have thought it a

year ago? >> i wouldn't have thought it 90 days ago. is this a case of truth telling? b, is paul ryan is guy? i know mitt romney has family history in michigan, but is ryan the guy to work the whole mid western area? >> yes. it's even bigger than his mid western roots. i think the most important thing about mitt romney's pick paul ryan is not what it says about paul ryan but what it says about mitt romney. you heard talk about the resumé. the private sector experience, turning the olympics around. creating more jobs. those are great things. that says to voters he has the skills and experience to be president. when he picked paul ryan, what he told me and not just the base but swing voters as well, this is a guy with the courage and passion not just to become the president but to be an exceptional president. >> why does it -- story in the front page of the new york times, why is it he's not closing the deal among white

middle class workers -- blue collar workers, reagan democrats, clinton democrats. he's taking a harsher turn on his rhetoric. why do you think that is? >> crazy as it sounds i don't think they know him yet. we talk about politics all the time. i think this week the speeches you will hear tomorrow through thursday give him an excellent platform. most importantly in my states and other battleground states we need to see him. the more he comes back to blue collar working class areas where paul ryan grew up to green bay, kenosha, michigan and other states, the more -- >> what does he have to say? you are a fiscal expert of some renown. you are regarded as a political genius by people. your second recall election was a bigger margin than the first. >> right. >> now, where should mitt romney start? where should the thrust be in the speech on thursday? >> it's simple. the argument is who do you

want -- where do you want your politician to stand? with big government special interests or hardworking taxpayers? mitt romney and paul ryan have a plan to stand with the hardworking taxpayers of the country. the more they point out what the difference is, if you don't look at the facts the president seems like a likeable decent guy. you realize the people he's hurting most are horde working taxpayers of the country. the more we point it out the better off we will be. >> governor scott walker of wisconsin, a revolutionary himself. coming up, the head of the republican platform committee, our friend governor bob mcdonnell of virginia. he's my exclusive guest coming up next. i'm larry kudlow. stay with us. right here in tampa at the gop convention. [ male announcer ] it's a golden opportunity

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this is the pursuit of perfection. >> announcer: this is a special edition of "the kudlow report" live from the republican national convention in tampa, florida. here now is larry kudlow. >> all right. welcome back to "the kudlow report." let's bring in our special guest. joining us now virginia republican governor bob mcdonnell, chair of the republican platform committee. can i just go through this poll from the hill.com? >> sure. >> 5 a 1% of the people think jobs and the economy, number one issue. next, 29%, government spending and deficits. third, 13% social issues. the press has been talking about social issues and abortion and this crazy missouri story. what is the real emphasis on the republican platform going to be? >> it's 90% about getting the greatest country on earth back

to work and out of debt. the first section is all about jobs and the economy and embracing the tax policies on regulation taxation, litigation that are going to get our country back to work. trade, energy. major sections on agriculture, government reform that we've got to do if we are going to do something about spending entitlements. >> i know you can't lay out the blueprint. that's a legislative function. is the 20% across the board tax cut, 25% corporate tax rate from 35%. in other words some of the key romney growth measures on taxes, is that explicitly in the platform? >> this is a 50-page platform on 250 issue. it's the big principles. we say heavy we have to cut the corp. t rat income tax. it's the highest in the world. it's killing us for jobs here and an incentive to ship jobs offshore. we talk about tax reform and

lowers the rates to promote economic development. fundamental difference between us and the democrats. >> i spoke to my pals at cnbc, some of the stock jockeys that come an at 5:00. thaw want to know about the gold standard. there is a gold commission. >> yes. >> is it making it through and is there follow through on that? >> same that ronald reagan promoted: there is a legitimate question. i talked to rand paul. we had 30,000 incorporated. talked with lots of people. one thing the paul folks were worried about is the stability of the federal reserve. doing it in a way that's not compromising the independence of the fed but also having the same commission reagan proposed to look at how to stabilize the currency and don't have a paper currency so far devalued that it

makes no sense anymore. we'll at least look at the issues. >> i'm obliged to ask -- and by the way, i'm a gold guy, myself. let me move on. story in the paper over the weekend that mitt romney has not made the sale on the economy to the white middle class workers. very important story written by a good reporter. here's what people are saying. in fact, if obama had some more time, he could get the job done and that team romney has heard it. they have seen it in the polls. they want to be tougher and stronger. if obama had more time he could get the economic job done. what's your take? what's your thought? what are you going to say about that? >> my view is he's out of time. it's been three and a half years. 8% unemployment for 24 months. no guts from this president to lead on entitlement reform. you know you can't balance the

budget and get our country back on track without that. in virginia, swing state, both candidates say got to win virginia. romney went from eight down five months ago to now a couple polls have him up. i see the best grassroots operation in to years. now that independents are keying in on jobs, the economy and energy. >> timing is everything. >> absolutely. if the congressional budget office says we'll have a tax cliff that's going to cause a recession and this country, in my opinion, cannot take another recession. >> no. >> we cannot take another recession now for domestic and international reasons. how is it that president obama isn't home in the white house meeting with republicans and democrats. seriously. how can a responsible president -- i don't care which political party not be trying to hammer out something that would save a recession?

i tell you what. bill clinton could do that sort of thing. i will use a democrat. reagan could do that. how is it that obama, with his own -- the whole bipartisan, nonpartisan cbo says we'll have a recession. how can they not sit down together in washington and stop this? >> one, he's more interested in getting re-elected. two, he's said he thinks the economic policies are working. more spending, more bailouts, more stimulus. three, i don't really think they know what to do. this is a president that doesn't celebrate the success of the free enterprise system. you heard what he said in virginia. if you have a small business and you're successful, you didn't build it. somebody else made that happen. you will hear that more from me and others. i don't think they know what to do. that's why we need a new president. >> that's a sad tale but your conclusion is right. governor bob mcdonnell of virginia. good luck on your speech. >> thanks. >> the latest on tropical storm sigh sack throwing a monkey

wrench into plans to show case mitt romney perhaps. plus the esteemed republican strategist steve schmidt talks about paul ryan, mitt romney's message and can the gop get the job done? he's next on kudlow. this country was built by working people. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪

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welcome back to "the kudlow report" live from tampa on the site of the to 2012 republican national convention. today's other big story, we

return to cnbc's michelle caruso-cabrera at cnbc headquarters with the latest on tropical storm isaac. >> hi, larry. the latest update from the national hurricane center is expected at the top of the hour. however, those reports have been coming out early so we'll keep an eye out for the next few minutes. what we know now until the report comes out, the storm is intensifying and is expected to strengthen into a category one hurricane around 2:00 a.m. eastern time. landfall predicted over a wide swath. anywhere from the florida panhandle to the texas border. brian shactman and scott cohen will be on the ground in new orleans starting at 6:00 a.m. on "squawk box" tomorrow morning. you won't miss a thing. back to you. >> thanks, michelle. now, back to the convention and our next special guest. here is veteran republican strategist steve schmidt, now public affairs vice chair and former 2008 mccain presidential campaign senior adviser. steve, thank you for this on a

grey great evening. look, i know you're not bashful. i know you don't hold back. i want to ask you the first question. is paul ryan a help or a hindrance to a republican victory in november. >> well, i think he's a help, larry. he was a great pick. if you look at what's happened in the race since paul ryan was picked, coming back from his european trip, mitt romney on the clear politics polling average had gone down almost 5 points. the clear politics average today is a one-point race. paul ryan represents generational change. he's an honest person leveling with the american people that there are trillions of dollars of promises that this country has no capacity to pay to meet its obligations to the american people. everybody in washington knows that's the case. paul ryan is one of a handful of people who have been honest about it and communicating directly to the american people about it. it's a great choice, an

indication that mitt romney beginning with this week will define his campaign for the fall on an agenda about economic growth. >> a lot of people have been critical. there was a big new york times story over the weekend. he's not making the deal. he doesn't close the deal. so-called white middle class voters aren't sure about him. some people say obama should get a couple more years, another term. he can get the job done. what's missing, in your opinion, from the romney message? what's missing that needs to be there to close the deal? >> mitt romney will have to do a couple of things this week. he has to define for the american people who he is. it's the obama campaign that has had the control over mitt romney's biography. that's not good. but in a speech that will be watched by 40, 50 million americans, mitt romney will have a chance to tell the american people directly who he is. it's not the cartoon version we have seen from the obama

campaign. the second thing he needs to do, what is the plan to turn the country around to get the country back on track? if you look at the polls, larry, they show the american people have reached a definitive conclusion about president obama's handling of the economy. they don't like it. they don't support it. it's not coming back. >> they are not 100% sure, steve. >> right. >> you are one of the smartest strategists, but they are not 100% sure that mr. romney is the alternative. >> over the days ahead we have three 90-minute presidential debates and a convention speech. over those important few hours of the campaign, the most important hours mitt romney has to seal the deal. he's going to have to come to a moment in the campaign where he pass it is president and doesn't look back if he's going to win. if the election were tomorrow, president obama would be re-elected. mitt romney has plenty of time to close the deal through these debates, through the convention speech to make a case to the american people that he's the

man with the plan. >> persuade people he's a turnaround guy who understands the problem and that his biography supports his policy. i think you've got to go both ways. steve, you are the best of the best. thanks. >> thanks, larry. >> all of our great guests, you honor us. we'll be back from day one of the republican national convention tomorrow. congressman jeff henserling and ron paul among our guests. i'm larry kudlow. my volt is the best vehicle i've ever driven. i bought the car because of its efficiency. i bought the car because i could eliminate gas from my budget. i don't spend money on gasoline. it's been 4,000 miles since my last trip to the gas station. it's pretty great. i get a bunch of kids waving at me... giving me the thumbs up.

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