peter fischer, head of blackrock's fixed income group and a former senior executive. served as undersake of the treasury. as always, welcome to "the kudlow report." we appreciate it. i want to talk policy. the federal reserve has created $2 trillion some odd in money. the federal government has spent at least a trillion on one thing or another. according to the joint economic committee this is the worst recover are you in mo attorney times going back to 1947. unprecedented stimulus, lousy growth. what happened is th? >> it was the end of a bull run in credit creation. we got over exuberant with credit creation. when you squeeze back on the financial system it's a slow recovery. that's part of it. i agree. i think the stimulus was misspent. i didn't think about it at the time. i tell you what a shovel ready project is. it's a project a governor never bothered to fund. they had it on the books but it didn't have the pay-off for anyone to fund. out's a good idea in principle but didn't work in practice. there are a lot of things that have to go wrong to get a recovery th

blackrock was engaged in a firefight and went down in rugged terrain. the taliban says they shut it down. >> he very much wanted to be a seal. that is a little deeper. he wanted to serve his country. >> his father planted the seeds of that tree when he was 4 years old. in middle school, he joined the sea cadets and carved the his ambitions and the bottom of a dresser drawer. >> he carved the is going to complete buds. he would find inspirational quotes or right things to himself so that he saw them in the morning when he got dressed. >> he would do the job to the best of visibility and the he would be able to insure all the other operators were prepared and ready to do their jobs to the best of their ability. he would coach them and push them to be the best they could be and be the role model they aspire to be. >> see is defined as a determined individual. he is survived by his parents, a sister, and his wife. his seal teammates issued a statement saying he was a consummate professional, who embodied what is to be a warrior. >> baltimore city police say

. >> he was on a special operations mission when his blackrock -- the blackrock was engaged in a firefight and went down in rugged terrain. the taliban claims a shot it down. the cause of the crash remains under investigation. >> his dream was to be a seal. he wanted to serve his country. >> his father planted the seeds of his dream when he was 4 years old. in middle school, he joined the sea cadets and at 12, he carved his ambitions on the bottom of a dresser drawer. >> he said he was going to complete buds. he would find inspirational quotes and right things to himself. >> he would do the job and do it to the best of his ability. that he would it be able to ensure all the other operators were prepared and ready to do their job to the best of their ability. he would coach them and pushed them to be the best they could be and be the role model they would aspire to be. >> he is called by family and friends a determined individual. he is survived by his parents, a sister and his wife. his seal teammates issued a statement saying he was a consummate professional, a man who embodied what is to

the senior adviser at blackrock. >> bob, why don't you think the fed is going to announce a big stimulus program tomorrow? >> i think, susie that stimulus programs of the size qe 1, qe 2, and potentially qe 3 are for emergencies. and while we have a slow economy, it's hardly an emergency like existed before. so i think they're going to need more time to see more slowdown if we're going to see qe 3. they may do things around the edges and extend the time frame, but i don't think the fireworks are coming out. >> you heard the report from erica, that consumers are saving more, spending less, and a sub par news about a jobs report that comes out friday, and what does the fed need so that they feel it's an emergency. >> our economy has been dproing one and a half to two percent, and that's nlts a record, but it's not so slow that profits are reversing where the fed is going to come out and do something more significant. >> and home prices are increasing, that's a good thing. >> susie: so there's expectations that the fed does something. but if the fed doesing in, could we prepare for a market

i heard by the way is that traders are telling me larry fink was down on the trading floor -- >> blackrock. >> buy the weakness on the draghi comments on the market because he thinks it's a very big deal. >> so blackrock was bullish? >> while the market was selling it off as a huge disappointment. he was like no, it's a big deal many it's a big change of policy. so he's apparently a believer in that. that's my understanding. >> let's also mention, i mean the best that i can remember, larry fink has been bullish on stocks for a while. i mean he has made that call even on cnbc. at times that it was, it was the time to go into equities and go into equities heavily. now that was several months ago. i don't remember what the interim is. but the point is that he saw opportunity yesterday where others were a little more bearish. >> here's the question that needs to be put on the floor here. for every trader, every investor out there. do you buy or do you sell sovereign weakness? there are guys who are retired today, because they bet against the notion of sovereign default. now that was not the ri

he's russ koesterich, ishares investment strategist at blackrock and author of "the ten trillion dollar gamble." >> most investors have resigned themselves to another year or two of sluggish growth. there's little to suggest that the markets anticipate another one to two decades in the slow lane. yet, this could be what the future holds. the problem is the federal debt. if present conditions hold, publicly traded federal debt will hit 90% of g.d.p. by 2022, and exceed 109%, the previous all time high, by 2026. history shows debt levels that high can reduce long-term economic growth rates by one third, and the drag on growth can last two decades or more. these realities will become clear during the next presidential term. if the next administration cant start making a dent in the nations fiscal position, investors may need to reconsider the long-term argument for u.s. stocks or at least demand a bigger discount before committing new capital. from the fiscal cliff to the federal governments long-term solvency, the markets are unlikely to permit endless procrastination. ultimately, if the

our guest host bob doll, senior adviser to blackrock. checking u.s. did a calculation, we were up like 12% from december 31st, and then in june we went back to basically unchanged. now we're -- >> up again. >> -- we're up, but we're up 12% so my 30% forecast, i need a lot of good things to happen. >> you were right, it just came in two different, if you add them together. >> or back to the lows pre-2012. i want a calendar 30% and you are no help. >> i'm sorry. muddle through, grind higher. >> oh, we got 12%, this is, after ten years we're almost even. this is great, get out. >> no, no, not get out. >> find a few stocks but it's already up so much that we don't deserve any better than this? >> buy them last october and buy them in june, when that's all you can get out of the economy. >> that's all we can get. >> that's all you can get. you give me a better economy and cleaned up europe and i'll do you 30. >> the s&p was like eight years ago? >> quite some time, back to -- >> this is what we get in this great country and you don't want any more? >> oh i

mike burke questions can blackrock, the former ohio secretary of state, about the disputed 2004 elections. >> my answer is this. ohio, examined by ohio newspapers and election authorities, had a good election, a clean election -- not a perfect election, the good and fair. >> but the question arises -- >> that is my answer. >> is really court clears 23- year-old -- these record clears anyone responsible for the death of rachel corrie. we will speak with her mother cindy. all of that and more coming up. peace report. i'm amy goodman. tropical storm isaac is heading through the gulf of mexico, threatening to batter the gulf coast. federal officials expect the storm to develop into a category 1 hurricane, and make landfall on wednesday. the storm will mark the most serious test of new orleans rebuild levees in the seven years since hurricane katrina. u.s. government scientists have disclosed the sea ice in the arctic ocean has melted to its smallest size ever, potentially signaling that the worst-case scenario of global warming is becoming a reality. the national snow and ice data center and

that is why blackrock technical institute -- -- we need to encourage. >> brad lichtenstein, can you respond he espouses and what is saving janesville now? >> i want to point out quickly, it was a federal earmarked grant, not stimulus funds that paid for cindy's school. in that clip, i am trying to get paul to be little more nuanced about the situation on the ground for people who are experiencing job loss, yet he describes it as a kind of choice. but a lot of the workers who were laid off, 11,000 dislocated workers and people affected in janesville. >> we have to leave it there.

. >> larry fink of blackrock in there yesterday on the floor of the stock exchange telling the guys to buy the weakness. it changes from a day-to-day basis. you know that as well as anybody else. people look at the 250-plus move on the dow and feel better. >> thank you very much. back to you, sue. >> thank you. >>> what does the jobs report showing 163,000 new jobs but a higher unemployment rate mean for the prospect of a move by the fed? the global market strategist and steve liesman is here, as well. joe, let me get your reaction to it. the unemployment rate ticked up a little bit but the street better than what it expected on a week where we had mixed economic news on so many fronts. where does this put the fed? >> i think the movement in the unemployment rate certainly a step in the wrong direction but if you look at the private sector payrolls, it reinforces the fact that the labor market is healing but maybe not a fast enough pace we'd like to see. so if you think about what the fed's going to do, ultimately nothing really changed. i think expectations are still building, they're

chief investment strategist for blackrock ishares business. russ, thanks for being with us.us why september is historically so poor. >> september is an interesting month. investors often look at the calendar. it is a normal thing to do but the truth is very few months demonstrate a bias ha holds up over time. september is the exception. not just in the u.s. but globally. typically what happens in september, you do see weakness more than any other month, particularly in years when the market's down going into september the way it was in 2011. so the good news for this year is that while there is a negative bias to the month, it may not be as bad as a year like 2011 which tends to the worst if you go into september with the market already at a loss. tracy: okay. so we're going in with a market somewhat up, you're saying not so bad. >> yeah. tracy: last year, september, dow down 6%. you're saying might not be that bad this year except we have this doomsday, september 12th. all the big events happening, right? >> tremendous amount of headline risk. that is the other thing for in

. $32 billion for blackrock, also lead portfolio manager of high-yield bond fund. what the heck is going on? >> well, i mean, as the world is deleveraging right now, it's leading to low growth and then you have central bank policy around the world that is really keeping the front end very, very low. many investors globally are looking at low curves, low yields -- >> how long does this last? is this like a -- my question ultimately is, when equities all of a sudden look like they're doing better, if that happens, you're a little run here may not -- may end quicker than we think. no? >> fundamentals are driving tacticals. you look at today's economic environment and you have global deleveraging. look at central bank response to that, deflationary pressures of the private sector deleveraging are being met with monetary stimulus. have you low yields but very flat growth. when you look at risk premiums in high yield market you're talking about getting 7% or 8% above a 70 basis point five-year treasury. >> what do you like right now? if you could buy anything, what would

so whether it be blackrock, dimensional or vanguard, they're going to hold those shares, because they're them unless the stock comes out of the index. >>> getting over to rick in chicago for some of his reaction on everything we've seen today from the data to what's going on in europe, rick? >> well you know, i think the data -- it's hard for me to get excited about it. but it's also you know, better than i was looking for on jobs, even on ism, nonmanufacturing, i think this week, the big numbers in my mind are back-to-back negatives on manufacturing. not because it's the biggest part of the economy, but because it always seems to be the canary in the coal mine. it seems to give us a good indication what comes ahead. i remember when the koolaid was flowing big on the earlier programs, manufacturing really started pop early and it gave you a clue that gdp pop, they just weren't sustained. i take exception with an interpretation, simon is absolutely right, ira harris and i have talked about it, ten-year minus two-year spread in spain, look at it, let's put it up there, crew. if you look at