john rutledge in beijing is also chairman of rutledge capital.o have you on the show today to follow on your friend stephen roach talked about on the top of the show meaning that the slowdown and the concerns about it are overrated. do you agree? >> yeah. i think so. nice to be with you. you know, western investors decided that china's going to crash and burn about once every three months and then the number comes out and convinces them otherwise. this is one of those times. china is slowing but not crashing and the stocks down today. i'm a buyer. >> let's talk about that, right. mr. roach talked about when's happening, boots on the ground. talk about what you're doing as an investor related to what's happening in china. seen the materials stocks pull back today, concerns from the miners whether it's the names which are both in the portfolio. >> sure. absolutely. well, you know, investing directly in to china is very risky because the institutions are so weak with audits, financial statements and the like so i like it through bank shots through m

again, this is people like john rutledge and john dickenson and roger sherman brought this stuff up. we don't want the federal court system killing the state courts. that was a real fear. and so often times you hear, well, the supreme court is the final arbiter of everything, but that wasn't so clear in the founding generation, and they weren't necessarily sold on that. they weren't necessarily certain about what they could do about it, but the idea the supreme court was the final arbiter of every legal decision was not set in stone in 1787 and 1788. and be coupled -- and coupled with the fact that you have the bill of rights. we often talk about the bill of rights. the bill of rights were restricting clauses as the preamble to them said, so these were restricting on the federal power. and the most important of the bill of rights was, actually, the tenth amendment. people don't realize that. it was number one coming out of the state ratifying conventions when we said we want a bill of rights, you have to give it to us, we won't ratify. so they were promised a bill of rights so they'd

on the halftime report last week john rutledge of rutledge capital told us the pull-back was a buying opportunity. >> western investors decided that china is going to crash and burn about once every three months. and then a number comes out and convinces them otherwise. this is one of those times. china is slowing, but not crashing. and the stocks are all down today. so i'm a buyer. >> how about it, rutledge buying any of those dips. you see the industrials today. china growth fears overblown, overrated. so says not only steven roach, but mr. rutledge. >> i'll say i don't see a hard landing, but what do i know. things can change very quickly. a lot of this data is coming from official sources. what i would say is that this area has not been acting that well. there are some stand-out names by caterpillar that do look good. but in the main, i don't want to have a portfolio that's heavily overweight things like iron ore or industrial machinery. i don't see the excitement happening there. and there are areas that are acting really well. technology, health care. way not he can if a size wh

john rutledge, another important founding father he would later serve on the supreme court held to win the war of independence and said no. this constitution will not work in south carolina we need to modify. that is what happened. it is called a miracle because nobody was sure if it would get out of philadelphia to begin with. it appeared the constitution would die before the summer of 1787. a story you hear large states against small states. dickinson and sherman and rutledge came from small states. medicine from a large state. but what type of government would rehab? so today we have a federal government. the founding generation did not call it that coming out of philadelphia. masonry one to a federal government to use madison wanted national. there is a difference. federal is general and only had general-purpose this basically everything else was left to the states themselves. and national government put all power in the central authority. when you talk about general verses federal. you still hear the term that we are a nation. the founding generation and say it is a general govern

john rutledge, of course, would later serve on the supreme court. he basically helped win the american war for independence in south carolina from the saddle of governor. so a very important individual. and he said, no, this constitution that you've written, mr. madison, is not going to work in south carolina. we need to modify this thing. so that's what happens in philadelphia. in fact, one historian has called it the miracle in philadelphia because no one was even sure if it was going to get out of philadelphia to begin with. there were so many different ideas floating around that it appeared that the constitution was going to die before the middle of the summer of 1787. and the story that you often hear about that constitution is simple. it's the large states against the small states. the people i just listed -- dickenson, sherman and rutledge -- all came from small states. madison, of course, is from a very large state. but that's not the real issue. the real issue was what type of government were we going to have. was it going to be a national

john rutledge, thank you. peter, and steven. coming up on "kudlow" another case of obama overreach.his is different than the trade story. the irs is demanding a fee, a tax for what they call licensed tax preparers. it's nothing more than an irs shakedown. it can hurt businesses, especially small ones. it also hurts the economy. this one is not a good obama story. i'm can youed loy. we'll be right back. 3q we always hear about jobs leaving america. here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where y

john rutledge of south carolina. another very important founding father. of course later seven the supreme court. the american worker independence from the saddle of governor of very important individual. this constitution that you've written is not going to work in south carolina. the need to modify. that's what happened in philadelphia. the miracle in philadelphia because no one was even sure of this would get out of philadelphia to begin with. so many different ideas and opinions floating around in philadelphia. it appeared that the constitution was going to die before the middle of the summer of 1787. and the story that you often hear about that constitution is simple. the large spaces is the small space. dickenson, sherman, ann rutledge all came from small states. madison, of course, from a very large state. but that's not the real issue. the real issue was what type of government or we going to have, in national government or federal government we had a federal government. did all that. did in college that panetta philadelphia. people like dickenson

john rutledge was on and he said exactly the same thing. . that everybody getting all excited about, oh, my god, there's only 7.5% or 8 respect growth in china, don't worry about china. china is better than you think. these are the guys who have their boots on the ground. >> it's a fair point. i just think at a point when industrialized nations are largely deleveraging, they have debt problem, their demographics are changing, it's the chinas of the world that have been powering things forward. >>> let's move on. bank of america rolling out a pilot program that will offer rentals as a foreclosure alternative. the customer will be able to lease their home for up to three years at or below the rental market rate. the mortgage to lease program will only be available to fewer than 1 thurks b of a customers, they'll be selected by the bank in test har kets in arizona, nevada and this morning. an invitation only program. >> it's odd, though. you get rid of your mortgage debt, you walk away, it's not like walking away and having that drag after you,

but steven and john both say the fears about what's happening in china absolutely are overdone. rutledgedding to his stock, cortes adding to shorts. that's the battleground. >> thank you very much. we've been reporting about the recent surge in treasury yields, but what do they mean for you and for business? kelly evans is here with a look at that. >> want to put this in context for people. >> exactly. for those who don't remember the double digit moves we've seen in the past. >> right. when .10% is a huge move. when we look at the benchmark 10-year treasury note, that's one mortgage rates are keyed off and everyone focuses on for a gauge of what's happening. we've seen that move from under % to over 2% in the context of that moving by about .03%. this move is what has helped spur talk and moves among people that the long 30-year rally in bonds is coming to a close and rates are only headed higher from here. we have them now of course seeing an immediate reaction, when the 10-year moves you see a repricing from mortgage rates to auto loans, so many products across the economy are variabl