tv The Kudlow Report CNBC May 4, 2010 7:00pm-8:00pm EDT
gulf oil spill and we'll have the latest on the times square bombing terror suspects. remember, a safe country is a big tax cut for all of us. fasten your seatbelts, everybody, a special edition of the "kudlow report" begins right now. i'm larry kudlow. welcome back to the "kudlow report" where we believe free market capitalism is still the best path to prosperity. let's get right to our cnbc team coverage on today's market selloff. we have bob pisani, scott wapner, rick santelli, and bertha coombs from new york. let's go to robert pisani, what you can tell us in summary? >> the important thing is it was allows city day for people who have been arguing that the u.s. was decoupling from the rest of the world. we had been outperforming until
recently. but look at the way we performed compared to the rest of the world. we were down 2.3% on the s&p 500, but the rest of the world had a pretty tough time of it overall. spain was down 5.4%, brazil was down 3.4%. right across the board it was a pretty ugly day. about the line is we're doing bad, but the rest of the world is a lot worse. european banks had a horrible day and it wasn't grees oig,s it was the concerns about spain, although the spanish prime minister said it was utter madness all stupid speculation. nonetheless look what thoops some of the big banks. how about the u.s. markets? right here remember financial reform is going on right now. they will be voting on some amendments, maybe even in the next few hours. bottom line is the stocks that were down the most weren't the ones who would be affected by this the most. it was the regional banks. they're the ones that had the big run-up and that's the character of this market. it's the stocks that have had the biggest run up that was sold the most. you're basically puking things out, if i can use that word.
transports hit a new high yesterday. they were up 135 points. exact opposite happened today. all 20 were down and the ones that were down the most like overseas ship building, delta and norfolk southern were the ones that were the biggest gainers yesterday. it's enough to pull a day trader's hair out at this point. the retailers, same situation yesterday. great day for the big names like abercrombie and coach. today, all those big names were down 3% or 4%. same situation with the home builders. another high beta group. yesterday all of them down 3% to 4% today. tough to make money on a daily basis. >> stay with me, bob. we'll head over to the nasdaq. scott wapner joins us with the details. you all got hit the hardest on a percentage basis. >> a tremendous selloff. the biggest for the nasdaq since february 4th. the nasdaq now down about 4% from those mid april highs. and it was a broad based selloff
across every major sector of technology. take a look at some of the big cap names, for example. as we run through some of those names that a lot of investors watching your program hold in their portfolios. apple was down pretty big today, microsoft. ebay was one of the hardest hit big cap and widely held technology stocks. but yahoo! and cisco were down, as well. take a look at the chip stocks, too, because the semicondtor index was weak throughout the session today. right from the get-go. and you saw it show up in names like qualcomm and sandisk and especially intel getting hit hard, as well. by just about 3% or so. let's end on a positive note. thought every single stock that traded here was down. nutrisystem, beat on the earnings. the stock got an upgrade and did close the session sharply higher. interest to go see how technology fairs in tomorrow's session after such a big selloff.to go see how technology fairs in tomorrow's session
after such a big selloff. >> let's go rick santelli from chicago. currencies, all the rest of that good stuff, interest rates in europe, what can you tell us, my friend? >> it's so fascinating. for those of us that are always worried about deficits to see the flight of safety effects push boones below 3%, push the ten year toward 360. it really is an issue of safety, but it's also an issue of bad behavior to some extent. but we'll get to that in a minute. let's look at that euro right now as it's trading. it's trading at 129, well below 130. we're looking at about mid april of last year before you found the last violation of this extent under 130. we're talking about treasuries. you know, we saw that there was a flight to safety, but developing. one of the reasons we're well off 4%. but when you add in all the people trying to get out, you
add a second wave of treasury buyers. it made the difference and that is the tightest, the most compressed tens to twos it's been since december and it underscores that strange dynamic about how you run the one security trying to be safe from another and we all know when it's warm in the kitchen in europe, it's hard to put out a grease fire. >> oh, i like that. commodities tumbled today. bertha coombs joins us with the gory details. >> we had the crb end at a five week low today. that euro tumbling today making the king dollar even stronger and that made dollar denominated can commodities putting them under pressure. oil saw its biggest tumble today, over 4% in one day since february 4th. the interesting thing is people are concentrating on the problems in the euros, but if you look at the difference
between crude and wti, brent still holds a premium and part of the reason this pull back only underscoring the issues that we have here with regard to big stockpiles of crude that keep rising. especially at curbing oklahoma where the crude is delivered. and this afternoon from the industry, the american petroleum institute, we got a weekly inventory report that once again surprise to the upside with a bigger than expected build on crude and in particular bigger than expected build on gasoline which was a real weak point today. more than 1.8 million barrels. doesn't always jive with the eia numbers that we'll get tomorrow, but certainly setting a bearish tone. gold early in the day was a safe haven. in fact, hit hing a five month high. but at the end of the day, it was basically the best of the worst also pulling back and copper ending the day, as well,
off more than 4%. one of its worst declines in an awful long time. >> rick santelli, can i go back to you? spanish long term bonds. 115 basis points above german up from 97 basis points yesterday. but with all of this comparison between spain and greece, i don't see it. greek spreads are 650 basis points up from 545 yesterday. spanish paper is only around 4%. greek pain ser 9.5%. is it really fair on a yield basis, on a spread basis which measures credit risks, is it really fair to throw spain into the proverbial greek basket? >> no, with an asterisk. the problem is if we're looking at pure fundamentals, the answer is definitely no. however, two things. rate of change. we see that their bonds indeed are moving up in yield, but think back to the summer of '08, whether it was lehman's chairman
protesting that none of this was real, we don't know what's real, but more importantly, it isn't the fundamentals. would he moved beyond that. it's this contagion, this loss of confidence. and it's hard to put it back. i don't agree with bailouts, but if you're going to do the wrong medicine, do it really fast. at least in the u.s., they did that. i don't agree with it, but europe did the worst of everything. i don't know that they can go back in time. this will be a tough one to put back in the bottle and the loss of confidence will deteriorate portugal and spain in the eyes of credit market investors. >> bob pisani, i'll come back to you. this is maybe a stupid question but was there any nongreece, nonspain discussion on the floor of the exchange from other issues? >> sure. factory orders are improving and we're waitg for retail sales out on thursday. we saw ann taylor saying their sales were well above
expectations. they're expecting their earnings to be substantially above expectations. so fairly good things for april retail sales. and remember, that doesn't qulu what was going on with easter. that was mostly in march.economic news has been definitely marching in favor of the bulls. but right now, i think rick's right, this contagion issue. i agree with what you're saying on greece and spain. if you look at spain, 55% of their debt is related to their gdp. >> greece is going 150%. >> 125% right now. and we're 85%. so it doesn't make sense from a fundamental point of view why spain would be under this kind of pressure. >> spain has better credit story there than the united states does. >> absolutely. >> i'll show you charts later, europe's manufacturing index, rising quite smartly. not greece, but the rest of europe. scott wapner, you mentioned how the index dropped like a stone. i want to ask you, nasdaq got
hit the hardest. is nasdaq going to lead us down? that's that's an unfair question to you, but is the chatter that it will lead us down having led us up during this great rally? >> it's great point. nasdaq was up some 40 something percent in 2009. it's hit in 2010. a lot of their earnings commentary has been positive, yet technology is a place where investors are taken profits off the table in almost any scenario that gave them a reason to, whether fear or economic concerns. let me take a stab at what bob and rick were talking about. you mentioned spain being put together with greece. i say no, not yet. the problem is it's caused people to move away from risk assets. and you've seen that move into the dollar today and that's one of the reasons why you saw the commodity stocks selloffs go badly. >> let me go to bertha on that.
you're last but by far never least. with respect to the strong dollar that several people have already mentioned, what eat sentiment about commodities? how bearish are we going to get on commodities? >> the feeling is here as the dollar continues to get stronger that right now finally the bears have their way. there have been lot of people that argued that the fundamentals haven't supported the price rise.other thing is we were already down before we saw that led down on the euro because we got troubling signs out of china. and let's not forget commodities also under pressure, the miners because of that tax in australia. >> that's a great point. that's got to knock down copper and all those. that's hitting rio ti nchnto anl those great companies. i've seen a lot of dumb things, but that has to be one of the dumbest things in the history of the earth. why knock down your pebest
producers? it's the strength of australia. supplying caommodities to schi 2345 na. >> that's where the money is, larry. >> i got get out of here. you're all terrific. thank you very much. now we'll have some fun parsing through all this with real live opinions. we are joined thousand by syndicated radio host and famed commentator lou dobbs who helped create larry kudlow once upon a time. that is the ever living truth. former reagan economicist adviser john rutledge, lee your gene munson and steve grasso will be with us in a moment. lee minuunson, how catastrophic this story? >> i think the real story is not spain. i think we said earlier about 50% debt to gdp versus 120 in
pain. i think that the real enemy right how is germany. germany is rattling the saber. i think they make it very clear that they are the largest economy in europe. i think that they feel a little bit disturbed about the security of their currency. i think when you look at the history of this country, they have not acted too well when their currency is in threats. i think we have to watch germany. i think american investors especially do not understand the power that this economy wields. it's one of the top three economic powers on the plan either. i'll be interested seeing friday about some of the voting happening over there. i don't think that they really want to bail out anybody. they'll have to deal with greece. i think the spain stuff is just saber rattling. i don't think 18 bips going up on government bonds in spain mean as hill of beans. >> lou dobbs, welcome back to the program. you're always welcome here. but the germans don't like debt and they don't like inflation. it's very interesting. the most -- >> and they don't like an interference. >> they don't like pressure,
right. they don't like any pressure. now, they're going to have to vote, the parliament with vote on friday on the greek -- let's put spain aside. the greek bailout. roughly $150 billion. most of that is european union. i think about $40 billion of it is the imf. let me get your take. will germany play ball and ratify this agreement? because angela mar kell who faces re-election sunday, she's saying yes to the bailout when she talks to the financial times and "wall street journal," but say nothing to the bailout when she goes out on the campaign trail. how about l. ththis play out? >> it will be more important to the civility of the zone is the way in which the greek people respond, the greek political p. if they continue to resist any type of discipline as they are
right now, then we'll see a more profound reaction, i believe, than if angela merkel holds forth on let's bring back the deutsche mark. >> public sector unions are in the treats calling general strikes. will that anger the greek parliament? >> there's know question. that conflict will be there. but if it is clear that the unions have the ability to resist imf discipline, then all bets are on. >> so john rutledge, take it from there. the greeks don't like any of this -- the germans don't like any of this. if the european union and the imf gives degrees $140 billion, $150 billion, and the unions are calling general strikes, what does that do to the credibility of this package? and is that part of the issue that plagued markets today? quite apart from spain. just the greek piece.
>> well, today it was a day of ironies. greece is the size of louisiana. it has the population of the los angeles metropolitan area and the gdp of ohio. that's the core of what's going on today. they're 2% of eu's gdp and they're broke. they're broke and the government is corrupt. no way that we'll take the amount of money that's been put in this thing and change greece. >> john, i have a thought. in the light of your excellent analysis, why don't they privatize and sell the par that non? just sell off the islands thp that may be the only solution. people think i'm kidding, but i'm not. they got asset, sell them. >> i think it's a great idea, but why sell the parthenon when
some idiot will give you $12,000 each just for free? this is a welfare bailout nothing else. but in addition to the ironies of the day, pigg all have dead to gdp ratios less than germany, france and bell sgrum agium andn the united states. and greece is 108% today, but the u.s. will be 200% within cbo's projections. so i think what we see today is a little bit of a wake-up call that investors around the world are start to go recognize that the promises governments have made to their people are not going to be capable of being met and are going to be repudiated either directly through default or through the inflation default which is the second mechanism. >> hang on. hold that. we'll come back later. i want to get steve grass oo in real question.
we have degreegreece, spain, ge elections. they have to vote on the imf bailout deal on friday. that's up in the air. i believe that's part of it. the spanish story, i don't know. i'm less sympathetic. i think the markets are overreacting to spain. but you tell me. contagion, imf bail outs, how does it impact the u.s. market? >> marty feldstein hit it right on the head when he said it's about greece, and even though $150 billion, they'll be back in a couple of years. so forget the contagion, greece is not going away. y there's been a lot of damage done very quickly. and you see the markets reacting with sell signals. >> we'll take a quick break. stay right where you are. much more to discuss. lou dobbs, i'm with you. i think the germany p pical story is absolutely central to this thing. coming off is today's selloff just a healthy market correction
some stay with me, we'll have much more. there's lot of good news on the v shape recovery including capital x spending that was off the charts. and by the way, there's substantial evidence that europe is having a manufacturing recovery even though no would be wants one wants to talk about it. you're watching cnbc respect first in business worldwide.
welcome back. after today's global stock market selloff, including 220 something points here in the dow jones. of course all the jitters are about debt deflation, contagion, greece spilling over into spain, will germany ratify an imf bailout for greece on friday. but i want to add to this, we still have a recovery theme in the united states. let us not get it too pessimistic. sober minded, yes. worries, yes. threats, yes. i'm not here particularly to persuade, but i want to walk through some interesting numbers.
we had a gang busters report on business cap x spending and capital goods. it's your basic business investment spending. and what you've got here is the proverbial v shaped recovery. we had an increase of 4.5% in this month alone. orders up 14% year on year. and i want to hit the next one. these are the shipments which directly go into gross domestic product. here, too, although the v is not quite as pronounced, it is still significant. these shipments up 2.3%. and off it a strong start in june. business is profitable and business is investing and that will be spelling better jobs. how much better on unemployment? i don't know. but it's going to be spelling a better story. now, let me go to the next. just to remind you, the day tod
we had out yesterday, it was a blowout number and you can see the v is taking shape there. so let us not forget that there are strong positive economics statistics. how long will this last? there are tax and regulatory threats coming into play in 2011. bank reform may do more harm than good. i can't answer all those political issues. all i'll say is right here in the now. now, let me go to the next one. all right. is this the one i want you to pay attention to because there is so much pessimism today. and in recent days. about europe. and, yes, the greek story is a miserable story, but i want to read from you a dow jones market watch release. manufacturing output, in april, across a 16 nation zone expanded at its fastest clip in ten years, driven by a record performance in germany and austria, although greece showed a contraction. this was released on monday.
april rose to 57.6 from 56.6 in march. i believe this index is up six or seven consecutive months. if has if not a v certainly a strong view. degrees oig was the only one to show a contraction. but in this report, which is just like our ism, germany led, austria led. output also rose in france, ireland, the netherlands, italy and, get this, spain. so let us not be too unrealistic that the whole world is falling apart. it may not be the case. let me go back it my distinguisheded panel. lieu jobs, john rutledge, lee munson and steve grasso. am i bark up the wrong tree here? there is positive news coming out of europe and a hell of a lot of positive news coming out of the united states. i understand the sentiment and the confidence has turned down. but what about those european numbers? >> you know, i'm encouraged by
the european numbers and i think the boss line is people have to look at the correction day as something -- we lad a mild correction today. i think you have to look at it as an opportunity. you have things like iron ore that is not privilege to the tax, but you look at a company down almost 20% in its highs from last month and you can buy it under $30 a share and then you start looking at the oil sector being we might have inventory mums that are off, but we'll start using that. the manufacturing numbers being over 60 right now is extremely encouraging. i think that there it are other areas that you can play with a little bit of beta like the dry shipping index. we have to look at the basic essentials. those are things that sold off, that don't have the political risk of the banks. i think that investors need to put on their buying hats and this is not the end of the world. >> are you going buy tomorrow, lee? >> we bought a lot today and i'll tell you the things that i'm specifically looking to buy right now, i'm looking at increased holds in dry bulk
shipping. could i buy more of the banks. but i really have my eye on the energy sector and parts of the commodity sector. mostly iron ore right now. >> with a strong dollar, now, i know it's partly from the weak euro. many would argue the dollar is not strong, it's just a terrible euro, but the dollar is rising against the japanese yen. how well can the commodities do, gold, oil, cop, et cetera? i think that's an important point. >> i think this australia mining tax really took the bid out of the market yesterday. but i agree with the previous guest. i think a lot of these things are overdone the same way they were overdone to the up side. but let's not for get we broke the 1180 level.get we broke the 1180 level.
when you say are you buying tomorrow, the key is in february when we came off, we trailedded right down to it that 150 moving average. it's around 1120 in the s&p. so we have work to do. that's another 50 handles. >> we finished above the 50 day moving average. we finished above the 50 day moving average. some people think that's a very important indicator. >> do you think sentiment is so bad we'll go to 1125? >> i don't think -- you have to remember the markets are six months ahead. we didn't think health care was going to pass. banking reform, 80% of the people don't want it. now we have a reason it hate big oil companies. so who will be hiring? engine i business. >> there are some positives in
the american economy. so when you weigh all this, how do you see it? >> i think, one, swhee have a lot more people besides larry kudlow pointing at the numbers, showing what's happening in this economy. >> thank you. >> and commend you for doing it because a lot of attention needs to be focused on what's happening with the real economy. unfortunately what is happening to the dollar, to the euro, and to the euro zone ishappening wi. unfortunately what is happening to the dollar, to the euro, and to the euro zone is a revulñrñrn at risk that is mounting almost daily. we're look at debt levels that market after market is saying we're not even going to -- h we're not going to bother with intermediate steps. whether the ten year note to 8.8%, add another 4% in the course of a day, i mean, these are very specific stories for markets and something we are to pay attention to within the context of markets. what we have happening in this country, parts of europe are
doing extremely well, too. but the markets right now are just being crushed by an overwhelming overhang of debt. >> let's not forget that the markets in europe have had a very good run just as we've had. >> who can complain. >> john rutledge, how do we evaluate spain? their prime minister came out today and lashed out at the media and lashed out at everybody else and he shouldn't have done that because the stock market just plunged right up and his bond sold off, but he doesn't think spain should be in the same basket as greece and at least in some of the number, i'm inclined to agree. but on the other hand, my knowledge of spain is probably much less than a basket. what you can tell me about the spanish story? >> spain's debt is only 00% of gdp which is half of what belgium's is temperature on the mor . so the moral of the store is it things went down where there are markets that are thin and open to capital flows.
the commodities got nailed along with these smaller european markets. that tells you that investors are fritsenned. as you say, the fundamentals for cash flows are actually very good and getting better. gdp is rising. we have recovery in both places. >> profits are rising. there is good stuff in this story. >> but here's some facts for you. the chinese debt to gdp is 18%. russia is 7%. brazil is 47%. and all of those gdps are rising at a rapid rate. so in this sense, the fundamentals outside are stronger in the debt markets than they are inside. >> john rutledge, as a chi thna expert, they have tightened their reserve requirements for i think a third time. is that weighing on the markets? their purchasing manufacturers manufacturing index was only down slightly. what about the chinese credit
tightening? is that an influence on the u.s. and the world markets? >> poll instruments in china are very blunt and their capital markets are not very deep. there's a huge hot real estate market right now.markets are no. there's a huge hot real estate market right now. but they're very concerned at the top about employment issues because there are almost 200 million my grant oig construction workers in the city s . you're seeing them do it through administrative measures like increases down payment requirements rather than moving an interest rate which would hit a bunch of other things. today employment in china is much more sensitive to capital spending, fixed investment, than it is to the swings in export. >> let's cap this, john. hang s shanghai down 13.5%. would you buy china stocks right
now? give us some investment advice, please. >> not in the middle of this risk meltdown. within the mix next 14 day, absolutely. because the growth is the one story that will not go away. >> and steve grasso, i wasn't clear. are you a buyer or a seller right now? give us some investment advice. . >> i'm a trard, but i'd be buying the miners being the gold miners. and i'd also being buying consumer discretionary, consumer staples because i think guys are rotating out of things that they're unsure about and they're moving back here. how long can it last? i don't know. but i'd be buying consumer names still. >> and lee, you want to play from the long side. what's your favorite investment? >> right now i like ox dental petroleum, iron ore and valet and i'd probably stick to commodities. i also like steve's idea about the gold miners. we trade the actual physical through gld, so i like oil and i like iron or eflt.
and probably remember that spain sls 800,000 unsold units. they have a construction problem and they'll be buying up that inventory and i don't think it will be as grimace we start seeing some of these luxury condos get picked up. >> spain was one of the early leaders in the house bubble, was it not? >> absolutely. >> i'm almost sure that spain -- i remember hearing the spain story and i'm sure shy have paid a lot more attention to it at the time. >> it's huge. >> or course they were. but as we just heard, there's an enormous amount of capital that flowed from the rich european countries into spain and portugal to buy summer home, second home, vacation homes, that is not a bubble. it's a redistribution of wealth. >> and will they buy the greek islands, the parthenon? >> if it's for sale, absolutely. >> asset privatization, that's what margaret thatcher said. it can work in greece. gentlemen, thank you.
lou dobbs will hang out with me. we have so much more work to do. by the way, asian markets, i have to say i get a little check here. just about flat. the kospi down slightly. nikkei is up 1.2% according to that news alert. so maybe the worst is over. coming up, we are going to give you an update on the times square bomb plot. i say being safe from terror is a huge tax cut. god bless ray kelly and the new york police department and the fbi, they have nailed this guy. we're also i think going to give you an update on the gulf oil spill. you're watching a special edition of the kudlow oig report. we'll dig into the u.s. economy. is the dollar going to remain strong and will we ever hear from the federal reserve and will they keep handing out free mother? i'm cuddly. we'll be right back. >> i believe free market capitalism is the best path to
breaking news. an arrest was made late last night in conjunction with the failed times square terror attack. jonathan dietz joins us with the details. >> reporter: the latest information is that the suspect according to the fbi has admitted his role in placing that vehicle in times square to set off the explosion and not only that, he admits traveling
to pakistan for bomb training. so now the question is who else may have helped him set off this bombing plot if anybody else was involved. investigator s we've spoken wit said there does not appear to be anybody at this early stage inside the u.s. who is connected to this case. that part of the investigation continues. but it's the overseas connections that are now getting a real hard look inside pakistan to see who did this man meet with oversee there soverseas t training. they've rounded up numerous others, but investigators say here in the u.s., there's no evidence that they know of that kektss the people over there directly to the plot here in times square. so the suspect is talking, he continues to give up information. he was read his rights. he's still talking and providing information. that in part is some of the reason why we think he did not make a court appearance today. we expect to see him in court
sometime tomorrow as this investigation continues. they did search his home in bridgeport, connecticut. and inside that home and garage, they found what we're told is bomb-making materials. and cases, like fertilizer bags and fireworks, that seem to match the very ingredients and materials that were in that car bomb left in times square. >> jonathan, bomb training in pack stab sounds an awful lot like the london and scotland problems. didn't we learn that they were all bomb trained in pakistan? >> the problems there and don't look so far away. we have the zazi subway terror plot and the exact same thing happeneded with najibullah zazi. he admitted it and came back here to allegedly carry on the an attack on the new york subway trains. >> and are we talking al qaeda, taliban, both? >> it's a movement. it is both. what is most concerning to
investigators is you have some of these extremist groups that were not al qaeda, that were not believed to have the reach to come here and hit us. now it appears you've got u.s. citizens with ties in pakistan going back there for the training and then coming back here to try carry out attacks. fortunately the training wasn't that good. that device not very so he f physical sophisticated. but if it had gone off, deny dozens if not hundreds could have been killed or injured. thank you very much for the update. coming up here, another all-star pan toll talk stocks, the which i. we'll refocus on the united states, but maybe do some german politics. we have james altucher, jim lacamp, lauren lacapra, and lou dobbs. will the market open down tomorrow and follow through or will we get some stabilization? i think japan is stable to higher.
with global ramifications from greece to spain, to the new york stock exchanges to the chicago trading pits. joining us for more discussion, jim lacamp, james altucher, lauren la capra and lou dobbs is still here. not on the market, but on this global debt revolt which has to be part of this jit ater right now. >> no one seems to be focusing on the fact that we're talking about markets about pushed back on debt. we'll see what evolves over the course of the next few days or weeks, but it's clear that investors are scared to death of debt. they are now risk averse. those two are working against each other in the markets. and i personally, i can't imagine the markets tomorrow being anything but weak given what is happening with those two very fundamental, perhaps the
most fundamental elements of any market, that is fear and aversion to debt. >> is the global debt revolt driving gold? it's held up pretty darn well. is gold a currency substitute, is gold a debt revolt currency substitute? >> it absolutely is. and lou is right. one of the key things, one of the key drivers that we have to watch for moving forward is whether gold becomes the safe haven instead of treasuries. the minute that happens, you'll want to take a lot of risk off the table because that says that investors are scared to death of all this debt. keep in mind what we're doing with greece is we're solving debt with more debt. and investors are seeing that, the global bond vigilantes are in full force. as soon as they attack us and our bonds, that we'll have issues. >> having said all that, james altucher, we'll all come back in a minute, but i want to get in you here. i put some things up on the chalkboard. we had a blowout number of durable goods and cap x today
after a blowout number of the isms yesterday. and we had kind of a blowout number for the european manufacturing index yesterday. your thought, mr. altucher, on today's selloff. >> the u.s. economic picture, and even the european picture, remains intact. the economy, it's not a v recovery, it's a check mark recovery. we're actually going back stronger than we were before this recession. i'm koonld of tirind of tired o debt now. this is now 2008. this is not 1982 where we had huge exposure to latin america and still we were up 50%off the next two years. >> you disagree with what lou dobbs is saying about the world debt revolt joined by jim lacamp? >> i do disagree. i think this economy is fine. the markets need to start ignoring the european debt because we -- >> it's a global a disagreement
with his disagreement? >> i think it will be resolved in domtomorrow's markets. >> lauren, we'll give you a vot votes. who is right here? >> i think mr. altucher is correct in terms of where the market's going to go eventually. it's just a question of when that will happen. >> hang on, we'll bring you back. we'll give you the lead in the next segment, i promise. everyone has much more work to do. how whether till the markets op tomorrow? i'm larry kudlow. a special edition of the kudlow on report oig. please stay with us.
lauren, i cut you off. we don't have a lot of time, but you're playing this from the bull's side. is that what your advice is? >> i would say so. you need to buy when everyone else is afraid and selling. so you should look for good opportunities in the market. you be uncertainty is driving everything and eventually the eu will provide certainty, there will be certainty on financial reform, it's just a question of when that will happen. >> and jim that camlacamp, in's
certainty about the v shaped recovery. >> that's a precursor to jobs. but at the same time, we're seeing junk spreads start to move higher. we're starting to see credit spreads deteriorate. >> not much. sglu can't tell me look how great our sx poeexporters are d we're not going worry about what's happening overseas. >> jim altucher, go ahead. real quick. >> economy is doing great right now. china, which had some weakness today, is actually dependent on our consumer, which is back stronger than ever. >> watch the volatility. >> good way to end. thank you, everybody. coming up, my last word.
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