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tv   The Kudlow Report  CNBC  October 18, 2012 7:00pm-8:00pm EDT

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for every $7 they bring in $11 is spent. our average borrowing to keep government afloat is running 50% and on top of all that, a big story in the "washington post" today, a pet lent and -- this is not a fiscal cliff, it is a recession that will totally demoralize our country. paul ryan took questions from the crowd. ryan focused mainly on the economy but also accused the president of using a sea of negativity. >> president obama is not telling you what his second temple plan would be.
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>> he's not saying that he would do anything new. all he's offering is four more years of the same. >> robert costa, this is interesting, ryan attacking obama. is this going to be a big theme in the last 18, 19 days? >> it definitely will be, larry. talking to romney advisors, this is their closing strategy. coming out of the first two presidential debates they see a big opening on polity and on vision. if it turns out that the president doesn't have a good vision for -- >> it's partly a referendum on the economy and it's pointing out what romney's plan is, 20%
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across the board tax cut, but what romney's doing now is that the president could earn on rom hi he he he doesn't have a tax plan, romney wants to point out out to the voters. >> obama does have a tax plan, he wants to raise taxes on small business owners, raise taxes on business and raise taxes on entrepreneurs and raise taxes. >> the obama job plan is sitting in congress, it's inactive, nothing's happening on that front, the president's just going to let these tax cuts expire, so this really comes down to the ideological choice for voters as an alternative or is it more of the same. >> obama -- even if he loses, he wants to raise tax rates on the
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upper income and he's willing to let all taxes go up north to get that. now mitt romney is a leader. mitt romney is a deal maker. do you think romney will say you're going to foster a recession with your attitude on this fiscal cliff? >> look at the attitude on the campaign trail, romney has a debt clock behind him, he's with boehner all the time, he wants to talk about the debt. >> i don't want to talk about debt, i want to talk about growth, growth, growth. paul ryan says the president wants us to have four more years of the same, can we afford it? the numbers out from the congressional research service, they show that federal and state governments combined have spent $1.03 trillion on welfare. it's a 32% increase in federal
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spending on welfare just since fiscal year 2008. we need to talk about this. i'm now joined by john berenstein, and douglas eken who's president of the american action forum. >> this kind of numbers, it bankrupting the government, it's ruining the work ethic of the country and they're trying to buy the election, just like fdr, spend and spend. buy and buy. >> first of all, let's be clear, when you say welfare, a lot of people probably think of cash benefits to poor people. that's actually a tiny piece of this. what we're talking about is over the course of the recession, medicaid spending which is health care for poor people and
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middle class spending went off a lot. low income spending is a shared gdp that did this analysis, was very clear on this, it's been 1.5% outside of health care since the mid 70s until now. in the great recession, it did go up, you're absolutely right. i don't buy it. >> outside of medicate, it's going up, it not going down. >> they have expanded the eligibility for food stamps and welfare. that's point number one, we are ruining the american work ethic and number three one suspects that the administration wants to buy this election and get all
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these people to vote for obama? >> there are some serious problems with these programs and during this period, for example, the state started sending out $1 checks. because if you got on that program, you automatically got more food stamp money. we saw an increase of $145 million on this program. that's a 26% increase, that really is a testament, number one as jared said, a terrible economy and a lot of people suffering in that regard. >> it's been a long time since the recession was going and we're still spending a lot of money. and these programs need to be fixed. we need to have a social safety net. no one disagrees with that. we have trillion dollar deficits, we're not targeting these programs effectively. argument you can't say let's ignore part of it. we do everything in cash
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benefits, we do health, we do food. >> i absolutely agree that we have to do something about the continuous rise in health care costs that outpaced grk dp every year. we are in full agreement on that. the fact is that they grow more slowly in medicaid than they do in medicare and more slowly in medicare than they do in the private sector. if you look at the low income outside of health care, 1.5% of gdp and they're going down once they get out of the recession. >> they are sending out mail flyers on that. >> this is as old as the hills. >> jared, my friend, your
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unemployment rate is coming down. >> this is a good time for you to brag about this. i'm here to say that the key reason is the obama administration has expanded the eligibili eligibility, the bush administration was good at this the too. republicans will not pear this down, we are bankrupt in government doing this. we're ruining the work ethic for the government and i do suspect, this is an fdr argument, tax and tax, spend and spend. i believe that team obama really believes that these welfare recipients are real bying to go for him. >> i want to agree with you on a couple of things, but what i really do want to talk about is if it's growing at 26% since 2008. we haven't seen gdp grow 26% in
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2008. and the motion they can always dial back and say oh, we have a health care cost problem. look, four years, and we're after the health care problem. it's time to do something different. these programs are really broken. >> here's an agreement i would like to make to both of you. if the food sample rolls don't seriously come down, i'm going to be on this set complaining as loudly as you guys. >> the safety net really did kick in. >> hack on a second, jared. i got to get out and i appreciate your concession, i appreciate your monitoring food stamps. medicaid which used to be poor people low income is increasingly becoming a middle class entitlement.
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i still think team obama believes all those people are going to vote for them. great set, thanks very much. let's turn to a scary story on wall street. google's stock goes into free fall, possibly taking your 401(k) with it. a proposed tax that's creating a firestorm in obama's hometown. chicago may actually take bullets to firearms to curb began murders. free market capitalism does not mean humongous welfare payments which undermine the work ethic of this country.
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the earnings themselves were way sub par and that sent the stock into a tail spin, remember, google is the second most widely held stock in 401 ) 401(k). he says we're still in a world
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that's not safe do you fret at all about the -- i don't care about the r.r. donnelly fat finger thing, but google did report lousy earnings and lousy sales and microsoft reported lousy earnings and lousy sales. >> these are companies that are at the very edge of ways to manager -- and when you've got a world that's barely growing at all, the only way companies can survive is with cost cutting. that takes his toll in poor job growth and eventually in poor earnings. we cannot live in a world like we are now.
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>> and there's a lot of talk about lousy p.c. sales and microsoft folds into that much more than google. but we have had a tremendous rise in tech stocks, dois that ride over? >> i think we're getting near the exhaustion phase of this recovery. the problem with properties now is not that we don't have them, but they're not growing. i would suggest that you change your slogan to the mother's milk of profit growth. year to year process on a year to year basis. they should be up 5%, 6%, 10%. that's a healthy recovery for corporate america. we're getting into the exhaustion phase. and at the tail end, when the fiscal cliff hits, the process
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of getting to that compromise will be so hellacious that's what's left of the fragile reed of confidence is going to be shattered and we're going to have a terrible first stay of earnings. >> obama's economic growth message, his tax cuts are getting out of there. hamilton of entrepreneurs, a lot of animal spirits are ready to really fly if they get a guy in there who is pro business. now the market won't know this until it knows this until the election is over, i grant you that. but i also think that all this tax hikes gets blown away with a romney victory and we're talking corporate tax cuts, that's got to be good. >> larry, you're all for it. you made a statement with the word if in it, if he's elected.
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and everything you said after if, i'm with you. the problem is, yeah, there's some polls he's surging in. he we're going to have an election, we're going to find out if it's obama, i'm scare for this economy, i'm scared for this country and i'm just worried that that's the way it's going to turn out. investors should prepare, have a plan. >> i think on the other side, if president obama is re-elected. we're going to see tax cuts on earners -- tax hikes, a complete opposite scenario which will take this economy down. >> all the bush era tax rates,
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not just the healthiest, we are looking at going back into another great recession four years later, when we spend all our bullets for getting out of a recession four years ago, we don't got no more bullets, if that happens, we'll be dead. >> your basic point is the election is it, you just have to wait until the election. >> coming up on kudlow, the murder rate is sky high in obama's hometown in chicago. they're kicking around another crazy solution, this time taxing bullets and taxing firearms.
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chicago's record murder rate. that's probably not right. it's the people, it's the gang bangers who are doing it. the individuals, the windy city has had 409 homicide this year, that's up 46% from the same time four years ago. compare that to new york city's homicide rate. what's chicago's problem? and what's its supposed solution? they're talking about taxing guns? here's a republican strategist lenny mcallister. first of all the tax on bullets and handguns will do nothing to stop the murders among the gang bangers? am i just dreaming this up? >> this is one of the most ridiculous things i have ever heard of. it's another example of an ivory tower highbrow solution.
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this is a lot of time what you see from people that are often removed, oftentimes the very far left, progressive. the high tower legislator that -- it's not surprising, too. >> first of all, to the ammo and the guns are being bought illegally on the streets anyway. >> exactly. >> law abiding shopkeepers selling this stuff had nothing to do with it. let get that straight. >> i want to ask you, because you used to live in chicago. it's people who use gun that are killing each other. is this about drugs? are these about racial gangs? why is this happening because it's not happening in many other cities including my own, new york city. >> if you have conditions, larry, where people can't get jobs, there's poor education, poor ememployment and few
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opportunities and that's basically in a generational type of cycle. you're only going to have certain options there. and chicago is one of the leading capitols in the united states that has the types of gangs and organizations. these are not kids running around shooting people, these are organizations that are making millions of dollars and they are fighting for turf. >> what you're describing is this underground economy. i don't think it has a thing to do with the chicago economy. i think these people are inside this underground -- what is it that they want? is it guns they want? buy are they shooting each other? here in new york, rudy giuliani put it up on computers and found
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out the worse places and put the cops out there. >> you have apathy. you have these type of approaches that are supposed to solve the same old types of problems. number two, you have to have an increase of economic opportunities, better education, you can't have the chicago's teachers unions strangling the types of educational avenues that you have for these students, you got to allow them to have more educational opportunities, more business opportunities which will allow them to go from the underground economy to the real economy and move forward from there. >> everybody wants to connect this to chicago. obama never ran -- you talk about schooling, you're right because there are cultural issues here. do these gang bangers, do they go to school at all? you just had a school strike in
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chicago, do they even go to school? >> a lot of these kids do not go to school. a lot of these things are not touching them, we have to get them into the followed and if you're going to talk about taxing and spending money dampbtd kinds of economic policies, you don't go -- >> thank you for that. i just think you're going to have more cops on the beat in those neighborhoods with these advanced policing methods, we had the same problems in new york city years ago and rudy giuliani and a bunch of smart guys solved it. if you're killing somebody, you feed to be in jail for life or whatever, that's the real problem. it ain't the guns, it ain't the bullets, it's the people who are doing this. >> our pet lent president, all
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he want tots do is raise taxes on the wealthy, even if it means that there's a recession gun at his head. former house majority leader dick armey is going to sound off next. we do not need another big recession of big tax hikes. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios
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welcome back to the kudlow report. i'm larry kudlow. in 24 half hour all president obama is talking about now is binders and papers. what is wrong if mitt romney recruited more and more women for his administration, at one point, half of the senior advisors were women. you saw him last night bringing down financial institutionses, we're going to tell you how iran may be behind a good number of these attacks against our financial institutions, first up in this half hour to "the washington post," front page this morning, obama ready to vito a fiscal cliff solution if
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there isn't a tax hike for the rich. this on a day where ceos implored the white house that would take the fiscal cliff off the table. >> good evening, larry, some of the most powerful ceos on wall street joining forces today to send a message to washington, sending a letter to the president of the united states and to lawmakers on capitol hill earning a bipartisan solution on the fiscal cliff. this was a letter sent by the nastional brian moynihan of bank of america and john stump of
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wells fargo and company. interestingly enough, you'll see how fast warren actually moves here. you'll see the new ceo at citigroup. delay're just saying that washington needs to come together and get this done. >> here's the real problem, a lent obama bum -- he's willing to risk a 400 cnbc contributor,
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former white house contributor. by the way clinton knew how to make a deal. and house majority leader dick armey is part of the deal of that era. dick armey, the economics are very hard. he's willing to raise all of the taxes just to get the upper income people.
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>> he's very, very poorly schooled only economics, finance or anything that results in job creation. and he it's damned if he's not going to have his way no matter what the consequences, he's a really scary person. >> there is a recession gun to his head. just to get his own little way of raising taxes on successful earners and small business, he is going to allow the entire bush tax cuts to go down the drain. and give this a $50 billion tax hi hike. >> it was paul rye-and-and the house republicans who voted for
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exactly the -- guess what, what they voted for is the law. now what the president is doing is precisely what bill clinton would do in this situation. he was handed leverage by the republican in the house. he's saying look, i have a balanced plan, it's something akin to what's been supported by overwhelming majorities in the u.s. population. and larry, here's the leverage. the leverage that the republicans handed president obama is if congress does what it does best, then we get the reset. so the president's going to put this plan forward and americans will react positively to it. >> dick armey, look, obama has already signed one version of this tax cut. what i see is an election year
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petulence on the part of president obama. i think that's why he's going to lose this general election. >> absolutely right. and, david, bless your heart, you and i both know that president clinton would have been and was at the table respectfully negotiating with a sense of knowledge and understanding of the depth of the budget and where the massages could be made. the only impediment to the project and the one that he always had to be fighting off, is the vice president on his left always trying to pull him back when he tried to get to a good place. this president clinton knew how to sit at the table and work things out. he would not have been off in distant places and being celebrated by hollywood stars when he had work to do. and bless his heart, he did the work.
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>> i honor the fact that he was willing to come to work and do his job. >> why won't obama come to work and do his job? this is important, david. dick armey and i are doing a similar thing, dick armey rolled up his sleeves and did his job and made some very good deals after 1994 that really benefits the economy. i don't see anything remotely like that from president obama. you hear all throughout washington, david, he doesn't even talk to democratic committee chairman much less republican. he's completely isolated, but the stakes for another american recession are very high, david, we can't afford another recession. >> i talked to my boss and he was more ger louse than president obama but then again -- there was a long negotiation
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and it was paul ryan who voted against bowles simpson. this time one way or the other the american people will have spoken in a few weeks and we'll know where the public stands. you already have republicans in the house saying that if president obama, we're going to have to peel off because that's what the people want. that's what this election is all about. so there will be a mandate one way or the other. dick armey, i give you the last word. is tax reform dead if obama is re-elected? and will it just take -- we have to wait until mitt romney comes in. >> it's not dead. i'm sorry, david, i thought he directed the question at me. yeah, i'm afraid it is. you have to understand president obama struggles every day with his limitations, his vision is
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very constricted, he has no training, no experience, no imagination and worst of all, he has no willingness to consider a point of view that comes from outside his very, very seques r sequestered upbringing and experience, he just doesn't have the creativity to get beyond himself. >> got the leave it there. >> coming up on kudlow, the u.s. economy is the next big target for terrorism. the attempted bombing of the new york federal reserve, one example a string of cyber attacks on banks. and now ahmadinejad remains a debt laden country and he can't go on for long. ericans are alwao work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first.
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so is the u.s. economy and its big banks new targets for terror? yesterday's attempted bombing of the new york federal reserve, a string of cyber attacks on the banks and today iranian president ahmadinejad predicts the onfall of the u.s.
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i want to talk to our friend john batchner. here's my basic question, is there some kind of tactical change by al qaeda and the radicals and maybe ahmadinejad and these who back him, is that they're going after, internally, in the u.s., going after our economy, and going after our banks, is that what they're going to do? >> they're very cockey, they believe they can push the united states around tell the region that iran is the power, not the u.s. >> what gives them the confidence that they can push the u.s. around. where do they get that notion? >> the president of the united states since 2009 has pushed aside all of our relationships in the region, iraq, afghanistan, israel, in order to get a -- with iran, iran knows
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that the president is dependent on that deal if it's happening in order to very much make himself a success as president. whether he wins or not. whether he wins or not, he's looking for a peace deal. >> let's come back to the states, peter king on this show last night said that ahmadinejad has never been stronger domestically here as well as overseas. do you think we're going to get bombings and cyber attacks, as you know, 9/11, hitting the world trade center was in fact hitting a target of the financial -- >> al qaeda follows up it victories. >> and so this kid who tried to bomb the federal reserve bank, you think there's more of that come ing. they're called lone wolf operations, we have seen it
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before, it's common place. al qaeda believes it is winning and therefore it invites this kind of rascal behavior. >> and is somebody pulling strings from abroad to domestic al qaeda cells here at home? >> i followed peter king on this, i think we're vigilant, we're a hard target, anything is possible, larry. they killed an ambassador, they did that in the face of our extremely good military, so they can do anything if they're lucky. >> next up, obama's political side show, you know this guy's stuck on big birds and now binders full of women. it ain't going to work and our political analysts are going talk about that next. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america.
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. gallup's daily tracking moll of likely voters now has mitt romney up 78 percentage points. what's the president worrieded about? last week it was big bird, this week it's now binders. take a listen to this. >> he started talking about binders. oh. >> somebody's finally getting tough on big bird. >> binders. >> he's getting tough on "sesame street." >> we don't need a binder. >> so let's talk about this, we
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got karen finney, former dnc communications director. kate obenshane, and erin klein, weekly columnist of wmd and author of fool me twice. kate, let me just go to you, mitt romney is governor of massachusetts, so they put together binders, they go out and recruit the best talented women they can find, put them in the administration, half of the senior staff or more were women. what exactly is wrong with it? >> there's nothing wrong with it, in fact it was pretty admirable. in fact mitt romney had more women in his office than any other governor in the country. really they're trying to scare women yet again because the 15-point lead -- they have got
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to try to villagize mitt romney and try to make him a woman hater. and romney's out there talking about the issues. >> you know what your real problem, karen? men. romney is running way ahead with men. >> white men. >> white men, white voters in general, he's running massively ahead. >> larry, in case you hadn't noticed we're actually a majority-minority country these days so there might not be enough white men for romney to win this election. this is part of the problem that romney has. i just came back from missouri and kansas. if even conservative women were grousing about the term binders.
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it's not about terms. >> they were in binders, you know what a binders are? >> it's the fact that mitt rom fwhi thinks that the american people are stupid enough to think that those phrases are -- >> he never asked -- >> hang on. >> let's bring in erin klein, i guarantee you most voters of both sexes did not know what binders means. the second thing that occurs to me, get your take on this, this was all a good distraction. >> it's a distraction, but it's also a multipronged assault of several tactics going on at once. it's divide and conquer. we're talking about class warfare of the wealthy, the 99%
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versus the 1%. because obama is trying to distract the public, he does not want the public to be talking about obama care. he doesn't want the public to be talking about his first term stimulus. >> what you don't seem to understand is the more you tell women it's in their heads this war against women, the more you actually lose them. you have women in battle ground states, overwhelmingly saying that access to contraception and abortion is a top issue for them above economy. >> hang on one second. >> let me get kate back in here, what the polling data show, is really romney doesn't have a gender gap problem, he did but that has narrowed. i'm reading the great conservative newspaper reporting this called "the washington
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post," they're saying, yes, the guy -- you can show me 100 polls, right now your guy is losing in almost every poll. kate obenshane if you're watching the debate and mitt romney says we went out to recruit women at the highest levels of my massachusetts administration, i still don't know what is wrong with that. >> that story isn't true. if r he actually lied to the american people adventuriduring debate on that. >> kate, they recruit men too. if mr. romney becomes president, as i reckon he l he's going to look for financial experts, he's going to have policy experts and they're going to go out and recruit people. so what's so wrong with
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recruiting people? >> he went out there and said that he wanted -- >> this is what you do, you talk over us because we have points to make. barack obama overplayed his war on women hand, stephany cutter, his deputy campaign manager said we don't care what's been happening over the last four years. he said vote like your lady parts depend on it. conservatives think they're going to vote because one body part tells them to. >> karen finney, you can respond. >> two things, number one the organization that romney wept to when he was governor has actually come out with a statement and it turns out the story is not actually true, under pressure, both he and the other candidate, the democrat in
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the race signed a pledge from this organization promising that they would do this. >> he did it, he went out and honored the obligation. >> erin klein, i appeal to you. i have been through this election process, years and years ago under ronald reagan. it was penn james in those days, they had notebooks and binders full of names for different positions, for ambassadors, for financial people and the treasurynd office of management and budget where i wound up. they needed people with different skills on energy, on science and physics, what is wrong with filling out binders and having an affirmative outreach. what's wrong with that, erin? >> a pollster who has consulted with the obama administration, she did polling that if obama report this is war on women, it
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might just work. this is a progressive strategy through and through from start to finish. >> thank you very much. nice, calm discussion tonight. that's it for this evening's show, thanks for watching. i fall back on free market capitalism, if your name shows up in a binder, get the job, take the job. i don't have any problem where it. i'll be back tomorrow night. mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires?
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your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer. [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts...
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♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. to compete on the global stage. what we need are people prepared for the careers of our new economy. by 2025 we could have 20 million jobs without enough college graduates to fill them.
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that's why at devry university, we're teaming up with companies like cisco to help make sure everyone's ready with the know how we need for a new tomorrow. [ male announcer ] make sure america's ready. make sure you're ready. at devry.edu/knowhow. ♪ a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in california alone, it is the number one crop. >> and there's at least 13 gardens within a mile radius of our home. >> thirteen gardens right around your house? >> mmm-hmm. >> yes. >> wow! >> thousands of growers, millions of users, and a market in the billions. >> how much money was coming in to your marijuana smuggling operations every year? >> about 50 million. >> it's a multi-billion dollar business rife with guns, gangs, and plenty of money. i'm trish regan. join me for an unprecedented look inside america's marijuana industry.

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