we will drill down with our panel, jerry boyer, rob and joe. somebody has to explain to me, the state is going to extend credit to small business, how can i pony up? and kudlow 101, why i am concerned the fed has deflated the money supply and in turn deflated the stock market rally and deflation trade for commodities and energy and selling treasury bonds. a lot of hedge funds have lost a lot of money in the last month because they bet wrong on momentum. "the kudlow report" has momentum. we'll be right back to cover it all. get ready, folks, sign up, small business loans, you to, too, can get the ta.a.r.p. money for you backya backyard. nnouncer) this is nine genations of the world's most revered luxu sedan this is a history of ove 50,000 crash-tested cars. this is the world record for longevity and endurance. and one he most technologicalladnced automobiles on the planet. is is the 9th generation-class. this is mercedes-benz. you cod buy 300 bottles water. or just on brita filter. ( drop plinks ) brita-- better for the envirme and your wallet.

we have bob frolick, clinton hardy and jerry boyer. i want to get your very quick reaction, quentin, you first, what's your take as you heard gary and other reports. >> if it goes down, at least they're declaring something small enough to fail, excuse me. goldman sachs, yeah them, they did privatize their losses, socialize their losses and privatize all their gains and speculated like crazy once again. i'm not happy to see that going on. they registered as a commercial bank. i'd like to see banks act like banks again and not fevered speculation, i'm interest in banks earning more than goldman and accountability. if cit goes down without disturbing the broader economy, that's fine with me. >> jerry boyer, i am all for letting them go under, absolutely, 100%, they should never be too big to fail, they do not have systemic risk, i am a supporter of sheila bair's analysis. >> you want them to have access to the discount window. >> in the short run, i'd like to see a backstop to ease them into the federal reserve ask discount, keep them afl

jerry boyer, who's right and who's wrong?>> by the way, i would stay away from anything that government's going to try to fix. i would be concerned about pharmaceutical companies. i think we have -- i don't think we have 35% ahead of us, but i think we've got better than the kind of doom and gloom scenario that was just laid out there. look, we don't have revenues plunging in the teens for companies across the board.. we have some bad performers for whom revenues are plunging in the teens. larry, you and i spent basically the first half of this year making one fundamental argument. that if retail sales fall a little and commodity prices and payroll and interest fall a lot, that revenues, down a little, expenses down a lot means increasing profits. and that's exactly what the profit reports that are coming out now show. >> actually, i agree with that.. by the way, let me just put -- i think we have these charts. unemployment claims, such an important leading indicator of jobs and consumer spending and income. there it is. the

syndicated columnist, jerry boyer and dan fits pzpatrick an ned riley of riley asset management.ust want to follow-up, i can't help myself. i will throw this to dan fitzpatrick. i don't know if you ever read the "new york post," this guy running ut, george david is his name, is embroiled in the most incredible. everyday in the "new york post," he gets a full page or two, the ex-wife a swedish model, girlfriends around, flying here and flying there, how the hell can this guy run a company? i want to rant a little about george david, i've been waiting for people to pull the plug on him. they report ut like this was a normal ceo. it's not. >> i wouldn't want him running my company but i'd like to be invited to his christmas parties. >> yeah, they're fabulous. >> i'm getting a dennis kozlowski moment here. i can't speak to his ability to run the company. way out of my league. a publicly trade company, why do you need a problem like that? there has to be a ton of people just as qualified to run my company. i wouldn't want my ceo on the front page of the paper everyday. >> i'm surprise

will try to explain us to and his bride, alison, and joe is a little more bullish than usual and jerry boyer is waiting in the wings. i think is there plenty of time, we go to 11 to 1200 on s&p in 2010, as our two technicians suggested, heck, gee whiz, pullbacks or not, i say investors, you ought to get in. that's my view, we'll save it later on. come back to "the kudlow report," straight ahead. 7g b. >>> a quick update on something outside the stock market. there was a hearing on r regulatory financial reform. we have hampton pearson with us. did anything come out of this? i heard them arguing with each other basically. >> for all the high minded rhetoric about the need for financial reform after the greatest financial crisis since the "great depression," what we got today, larry, was raw wounds and good old-fashioned washington turf war exposed, something washington really understands. you have the treasury secretary, tim geithner drawing his lines in the sand saying the fed should be the uber regulator as far as systemic risk and you have to have a brand-new financial protection agency t