YOU ARE OPENING UP TO MORE TAX
CUTS AND ALL THE REST OF IT.
OKAY.
WE HAVE GOT OUR FRIEND TO THE
SHOW, LARRY KUDLOW.
HE IS NOW MIC’ED UP.
LET’S GO.
LARRY, THANKS FOR BEING WITH US.
ALWAYS A PLEASURE, SIR.
LET’S START WITH THE STIMULUS
PLAN.
WE ARE ALL OVER THE PLACE THIS
MORNING.
WE ARE GETTING REALLY CONFUSING
SIGNALS.
CAN YOU TELL US THE RIGHT STATUS
OF THE NEGOTIATIONS RIGHT NOW?
>> YEAH, I CAN TELL YOU WHAT’S
UP TODAY HERE AT THE WHITE
HOUSE.
THE PRESIDENT HAS JUST RECENTLY
MET WITH CHIEF OF STAFF MARK
MEADOWS AND TREASURY SECRETARY
STEVEN MNUCHIN.
MR. MNUCHIN EXPECTS TO BE
SPEAKING WITH SPEAKER PELOSI
SHORTLY THIS AFTERNOON.
THE PRESIDENT HAS APPROVED A
REVISED PACKAGE.
HE HAS APPROVED A REVISED
PACKAGE.
HE WOULD LIKE TO DO A DEAL.
STUART: THAT’S FASCINATING.
A REVISED PACKAGE.
HE WANTS TO DO A DEAL.
YOU HAVE ANY IDEA ON WHAT THAT
PACKAGE WOULD INCLUDE?
IS IT --
>> NO, IT WILL BE -- IT WILL BE
RELATIVELY BROAD-BASED BUT I
CAN’T GO THROUGH DETAILS,
STUART.
THAT’S GOING TO BE HASHED OUT IN
THE DISCUSSIONS.
BUT AGAIN, LET ME REPEAT, IN A
VERY RECENT MEETING IN THE OVAL,
WITH MARK MEADOWS AND STEVE
MNUCHIN, THE PRESIDENT APPROVED
THE PACKAGE.
IT’S A REVISED PACKAGE.
MNUCHIN WILL BE TALKING --
TREASURY SECRETARY MNUCHIN WILL
BE TALKING TO MS PELOSI THIS
AFTERNOON AND THE PRESIDENT HAS
SAID I WOULD LIKE TO DO A DEAL.
STUART: YOU JUST MOVED THE
MARKET, AS YOU PROBABLY KNEW YOU
WOULD.
WE WERE UP 130 LITERALLY 20
SECONDS AGO.
NOW WE’RE UP 140, GOING UP FROM
THERE.
CAN I ASK ONE MORE QUESTION
ABOUT THE STIMULUS.
DOES THE WHITE HOUSE AND YOU AND
SECRETARY MNUCHIN, YOU
ABSOLUTELY SAY NO WAY THAT YOU
WILL ALLOW THE BAILOUT OF
DEMOCRAT STATES?
IS THAT ABSOLUTELY OFF THE
TABLE?
>> STUART, I JUST CAN’T GET INTO
ANY DETAILS LIKE THAT.
IT’S NEVER BEEN A TOTALLY PURIST
POSITION.
IT WAS JUST A QUESTION OF WHERE
THAT MONEY WOULD GO AND HOW
EFFICIENTLY AND SMART THAT MONEY
MIGHT BE AND WHAT THE SUMS ARE,
BUT I CAN’T POSSIBLY GO INTO ANY
SPECIFICS.
BELIEVE ME, SECRETARY MNUCHIN
WHO IS AWFULLY GOOD AT THIS WILL
BE DISCUSSING WITH SPEAKER
PELOSI FOR THE FINAL TOUCHES AND
DETAILS.
BUT I THINK THE KEY POINT IS THE
PRESIDENT HAS APPROVED THE
PACKAGE AND QUOTE, HE WANTS TO
DO A DEAL.
STUART: GOT IT.
WE WILL LEAVE IT AT THAT.
LET’S MOVE ON TO SOMETHING ELSE.
YOU WERE ON THE SHOW EARLIER,
YOU HAVE BEEN ON SEVERAL TIMES,
YOU PREDICTED THAT THE FOURTH
QUARTER OF THE YEAR WOULD SHOW I
THINK YOU SAID 20% ECONOMIC
GROWTH.
25%, 30% IN THE THIRD QUARTER.
WE ARE NOW IN THE FOURTH
QUARTER.
YOU SEE 20% GROWTH.
YOU STILL SEE THAT KIND OF RAPID
GROWTH FOR THE QUARTER WE’RE NOW
IN?
>> YEAH.
I LIKE WHAT I SEE, STUART, I
MUST SAY.
NOW, OUR VIEW FOR THE WHOLE
SECOND HALF WAS, YOU KNOW, 20%
PLUS, WE WOULD BE THRILLED BUT
I’M JUST WATCHING AS I’M SURE
YOU ARE, YOU KNOW, ATLANTA FED
GDP AND THAT MODEL IS AT 35%.
SOME OF THE WALL STREET FIRMS,
TOO.
THAT WILL SPILL OVER.
WE ARE GOING TO GET A LOT OF
MOMENTUM GOING INTO Q4.
HERE’S WHY.
RETAIL SALES, STRONG.
CONSUMERS, STRONG.
AUTOS ARE SO STRONG, STUART,
AUTO SALES ARE RISING SO RAPIDLY
THAT THE CAR MAKERS ARE PROBABLY
GOING TO HAVE TO GO INTO EXTRA
SHIFTS IN ORDER TO INCREASE
INVENTORY TO MEET THE DEMAND,
ADDED PRODUCTION.
THAT MEANS MORE WORKERS CALLED
BACK, MORE OVERTIME FOR THE
AMERICAN MIDDLE CLASS BLUE
COLLAR WORK FORCE, AND THAT’S
GOING TO TRICKLE THROUGH TO
FAMILY INCOME, RIGHT?
WAGES EQUALS FAMILY INCOME.
LOOKING AT THE LEVELS, THE END
OF THE THIRD QUARTER, SEPTEMBER,
WE’RE JUMPING OFF INTO OCTOBER.
IT’S A VERY SIGNIFICANT MOVE.
I WANT TO ALSO SAY FEDERAL
RESERVE STIMULUS CONTINUES AND
LET’S NOT FORGET, M2 MONEY
SUPPLY IS GROWING AT 24% YEAR ON
YEAR PLUS THEIR LENDING FACILITY
AND LET’S NOT FORGET ALSO, I
THOUGHT GENERALLY WALL STREET
MISSED THE STORY ON JOBS,
FRANKLY, BECAUSE EXCEPTING FOR
THE PROBLEM, SEASONAL ADJUSTMENT
FOR EDUCATION, THE KIDS DIDN’T
ALL GO BACK TO SCHOOL THIS YEAR,
PRIVATE JOBS ARE 877,000 PLUS
REVISION SO YOU ARE AT 900,000
PLUS WITH A 7.9 UNEMPLOYMENT
RATE.
WE SAW PRETTY GOOD NUMBERS ON
THE REPORT SO I JUST LIKE WHAT I
SEE.
I THINK, NOW, LOOK, I THINK THIS
PACKAGE IS GOING TO INCLUDE WHAT
OUR WHITE HOUSE ASKS HAVE BEEN
WITH RESPECT TO AIRLINE
ASSISTANCE, TO SMALL BUSINESS
PPP ASSISTANCE, PROBABLY, I
CAN’T SWEAR TO THIS, THERE WILL
BE SOME BACKUP FOR UNEMPLOYMENT
ASSISTANCE.
EXACTLY THE THINGS THAT I’VE
ARGUED WILL HELP THE RECOVERY.
OKAY?
IT’S LIKE TAKING OUT AN
INSURANCE CONTRACT.
STUART: OKAY.
LARRY, I’M SORRY WE’RE OUT OF
TIME.
I WILL LEAVE IT WITH THIS.
THE PRESIDENT HAS APPROVED A
REVISED PACKAGE.
HE SAYS HE WANTS TO DO A DEAL.
AND THAT DEAL WILL INCLUDE THE
AIRLINES, PPP, HELP FOR SMALL
BUSINESS.
THAT’S WHAT HE SAID?
>> I RECKON SO AND AGAIN,
SECRETARY MNUCHIN WILL BE
SPEAKING WITH SPEAKER PELOSI
TODAY HOPEFULLY TO PUT THE FINAL
TOUCHES ON THIS, BUT I THINK WE
ARE MOVING IN THE RIGHT
DIRECTION.
THE GAP IS NARROWING.
THE BID AND THE OFFER, IF YOU
WILL, HAS NARROWED SIGNIFICANTLY
AND THEREFORE, IN WALL STREET
TERMS, THERE MAY BE A TRADE FOR