A Little Bit of Freedom Relinquished is a Lot

Tumblr CEO David Karp joined the gang on CNBC's Squawk Box on Tuesday morning for a discussion on Net Neutrality.  It was an eye opening interview to be sure.  Take a listen:



Karp is nothing short of a moron, and it is mind boggling he has obtained the level of success he has.  What he knows about economics and freedom you could put in a thimble. Even though Andrew Ross Sorkin made valiant effort to bail out Karp, he firmly established himself as ill-equipped for such discussion.

I can assure you, as both Becky Quick and Joe Kernen pointed out, that companies are not going to spend money when they are assured of no return on investment, unless as Karp pontificated, we are in "new world" of socialism and "deals" with no return on investment leading promptly to bankruptcy.

In addition, Karp, no doubt inadvertently, noted how a "blessed a handful of partners" (crony capitalism) will do deals to present the next emerging platform.  Without a return on investment, perhaps Karp envisions the taxpayers funding these operations.

Meanwhile, Glenn Beck spoke with somebody, who even as an Obama supporter, understands the subject and the potential future role the legislation will play in the marketplace in Dallas Mavericks owner Mark Cuban.  Take a listen to the bleak picture Cuban foresees:



Although the particulars of the regulation are being hidden from the American people, who will have to learn about the horrors of it after it is passed, Net Neutrality is being shopped as regulating the allowance of everyone to get full bandwidth at even costs, fixing a problem that is not currently broken.

Net Neutrality, while allowing the government regulatory oversight it currently does not have and a taxation mechanism for a starving beast in the federal government, is actually a hidden vehicle to silence political opponents. With Net Neutrality, economic control by government will expand and freedom will retract, and a widespread assault on freedom of speech, something once upon a time we fought to the death to preserve, will commence.

NOTE: In the spirit of full disclosure, I am a longtime shareholder of both AT&T (T:NYSE) and Level 3 Communications (LVLT:NASDAQ).

Promoting Prosperity Path

 

Larry Kudlow
Photo Totalpic.com

Last Friday, CNBC announced The Kudlow Report, hosted by Larry Kudlow, will end its run this month after over a decade of producing top notch analysis of the financial markets in its 7PM EST time slot.

CNBC president Mark Hoffman said "Larry expressed his love of the network and personal pride in what had been accomplished on his program over the years but now wanted to slow down just a bit."

I certainly hope Hoffman was being truthful when discussing the end of The Kudlow Report, as Kudlow well deserves the opportunity to exit on his own terms.

Ratings at CNBC have been in freefall, and although shows on all networks discussing financial topics are in decline (have folks just thrown in the towel?), CNBC is on the wrong side of the relative strength in this matter.

The dismal ratings are no fault of Kudlow, whose show and analysis are tops on the network.  There are other outstanding individual hosts and reporters on the network, most notably Joe Kernen, Bill Griffeth and Rick Santelli, so the decline really has nothing to do with the talent on board.

Unlike Hoffman, I know why the decline at CNBC has been deeper.  It comes from what can only be a dictation from the news division of parent company NBC to season the broadcasts with a left leaning agenda mindlessly supportive of President Obama and his agenda, with global climate change a prime example.

Those of us in disagreement with Obama who have been longtime viewers of the network, have grown tired of being relentlessly "nudged" on the progressive agenda.  Each night on The Kudlow Report, we have to get a dose of John Harwood on Capitol Hill, who may win the Obama ass-kisser of the decade award.  His blatantly bias, and incorrect, observations detract from the insightful analysis Kudlow, with guests from both sides, presents.

If indeed Kudlow is being forced out, it will be yet another mistake by CNBC and we can all witness the 7PM time slot ratings continue in decline.  I suspect, if she were so inclined, this would be a golden opportunity for Maria Bartiromo, newly hired away from CNBC by FOX Business Network, to own the time slot from a financial perspective.

Rather than worry about the inside baseball at CNBC, I know that I will really miss joining Kudlow for analysis of the activities of the day, political and financial. As a former associate director of the Office of Management and Budget in the Reagan administration and chief economist at Bear Stearns, Kudlow was very knowledgeable and a true professional all the way around.

If Kudlow was shoved out, I hope to perhaps see him turn up over at The Blaze. If not, I hope Larry enjoys the extra time with his family and hitting balls out on the tennis court. 

Although Kudlow's tenure at CNBC has produced many memorable moments and exchanges, if we remember Larry for one thing, perhaps it will be his spot on mantra that "FREE MARKET CAPITALISM IS THE BEST PATH TO PROSPERITY.

Don't you forget it.  All the best Larry!

Pushing A String

Unfortunately, we have an extremely serious economic problem that is a massive ball and chain on the ankle of American commerce. In addition, President Obama not only knows this and is not informing you, but he is complicit in orchestrating it.

The markets are currently rigged, with the politicians in charge, most notably President Obama and Massachusetts Senatorial candidate Elizabeth Warren and advocate for the creation of Consumer Financial Protection Bureau, running at the mouth about how we need further market regulation.

Of course, under Obama's crony capitalism, we are not enforcing current laws when it comes to the financial markets and are allowing thieves to abscond with billions. See former New Jersey Governor, and Democratic bundler for Obama, Jon Corzine, of MF Global.

Although they say they are not, the FED is monetizing the debt, punishing savers. Banks are flush in cash, and are not lending. They sense something bad coming, and do not want risk extended in the upcoming environment.

Doug Dachille of First Principles Capital Management joins Joe Kernan on CNBC's Squawk Box to discuss QE3, the mortgage market and price distortion. Take a listen:




The FED should raise rates immediately and effort to strengthen the dollar, and quit pushing a string of failing central planning programs.  As Reagan said, government is not the solution to the problem; government is the problem.

With a Romney victory, the FED will promptly effort to pull back the extension of capital within the market, puncturing the propped up market averages. At this point, real value will be learned, improper market manipulation by The FED should cease with Bernake being fired and risk can be measured adequately.

We might have DOW 8000, but it will be real and we will have a solid basis to operate from. This will be much better than the crony capitalism and market manipulation we are currently dealing with.

Ranting and Raving

It can be storngly argued the epic rant by Rick Santelli on CNBC ignited the course of events which esatblished the TEA Party. Count me among those who with afection label Santelli the Father of the Tea Party movement. You remember the rant heard round the world?



Fast forward to the events of toady, most specifically the implosion of the Eurozone, where bailouts of insolvent countries are leading the imminent demise of the Euro. Nigel Farage has rivaled Santelli in voicing several stellar rants fortelling the demise on the Eurpoean Parliment.

Finally, Santelli gets an opportunity to visit with Farage about the status of the Eurozone. Two greats ranting and raving about the truth of the horrendous economic status of the world, but unfortunately,
is anybody listening?

 

CNBC had veered very left in recent years, which is most disappointing. However, a few sound thinkers remain in Santelli, Joe Kernen and Lawrence Kudlow.  You can count on Santelli for the real story, and certainly, as we have posted about numerous times, Farage is the top voice on the concerns of the Eurozone you should be hearing.

A crash is coming, as the bailouts have not worked, and will not work. As Farage so eloquently points out, technocrats rivaling one another in incompetence are in charge. What could go wrong, market manipulation? Theft? The loss of integrity in the markets?

Jail The Looters

In the aftermath of the greatest financial crisis in a half century, progressives who seek additional governmental control jumped at the chance to increase financial regulatory instruments. Never let a crisis go to waste, you will recall.

Charged with crafting such policy were two Congressional members, both of whom should be investigated for their role in the collapse, Senator Barney Frank, D:MA and Congressman Chris Dodd, D:CT. Exactly what our corrupt government needed, inmates running the asylum.

With the Democrats holding super majorities in both Houses, the Dodd-Frank Bill became law. The basic purpose of the law is to prohibit fraud and chicanery in the financial system.

Someone forgot to tell former New Jersey Governor Jon Corzine, who was recently under consideration by the Obama administration as a potential successor to Treasury Secretary Timothy Geithner. After losing the governors race, Corzine, a Democrat, became Chairman of MF Global, and under his leadership, the company has filed for bankruptcy and is the subject of an FBI investigation. In short, the money is missing.

Bart Chilton, CFTC Commissioner who is on the circuit promoting his new book Ponzimonium, chats with The Squawk Box Crew; Becky Quick, Andrew Ross Sorkin and Joe Kernen, and guest host Mario Gabelli, on the recent increase of Ponzi Schemes and the goings on at MF Global. Take a listen:

The situation over at MF Global is very troubling and funds cannot be properly accounted for. Many investors appear out a lot of money, including Trends Research founder Gerald Celente, whose gold has seemingly turned to dust. The company cannot make investors whole, and Chilton says it is "suspicious as heck".

It should noted that existing regulatory agencies and the new far reaching Dodd-Frank bill, a job killing beast smothering business, failed miserably to prohibit Corzine and this group from crashing to bankruptcy, allegedly for the misappropriation of funds.

Remember in "Its A Wonderful Life" when the money went missing. George Bailey, upset with Uncle Billy, angrily quipped 'someone is going to jail, and it ain't gonna me me". Well, back in the day, folks did go to Sing Sing when money went missing.

It will be interesting to see, provided the allegations result in malfeasance and charges, if Democrat darling Corzine is prosecuted to the fullest extent of the law. You know how George Bailey would feel about it, but good guys are not winning these days.

Regulations Eroding Economic Lifeline: Credit

While many of our citizens remain unaware, a slow creep of regulatory instruments are eroding the lifeline of our economy; credit. If you are working hard to make ends meet and catch bits and pieces of newscasts from national and local news outlets in the mainstream media, you likely have no knowledge of how serious this issue is.

Rahm Emanuel, former Chief of Staff of President Obama said the administration should never let a crisis go to waste. They took advantage of the fear in the aftermath of the banking crisis to power grab much of your liberty when it comes to your finances, likely without your understanding of the "small print."

It has been three years since Lehman Brothers collapsed, and although many of the experts say Uncle Sams balance sheet is improved and the worst is behind us, I don't buy it. Neither does Home Depot founder Bernie Marcus, who joins Mary Thompson, David Faber and Joe Kernen for a frank discussion on CNBC's Sqauwk Box this morning. Take a listen:



The experts are almost always wrong. Discredited economist Paul Krugman and social economic pontificator Jared Bernstein coupled with comments such as "The housing crisis is contained" and "Pass the stimulus and unemployment will not exceed 8%" come to mind.

Bernie Marcus is not wrong, and listening to him will get you more saving, more doing.

With a new wave of foreclosures coming, property owners will be seeking opportunities for refinancing among banks, but the big banks are not able to extend the necessary credit due to strict regulations. These banks can borrow from the FED at zero and lend to the public at 5%, and a banker can have a fine career in banking doing that. But this lending is not taking place, and the alternative option of small banks is being crushed by Dodd-Frank, which quite simply is killing small banks. Regulations have wrecked the residential appraisal industry, spearheaded by The Architect of Ruin, Andrew Cuomo. These regualtions allow the government to pick winners and losers as well, which raises costs and handicaps the entrepreneur.

The markets have been up this week, and given all the horrendous economic news this week, such as an unexpected rise in jobless claims, inflation and sobering news on poverty, you may wonder why. Euro Tarp! You got it, the FED is essentially bailing out Europe, which can be equated to QE3, a new installment of quantitative easing on a global scale. A socialist European dream! Of Course, I am quite sure this will fix the problem with the PIGS? Well, it won't work!

The economy is in crisis, and we are far from out of the woods. Uncle Sam is a major event way from taking a substantial leg down, and the FED is short on tools to fight the problem due the poor crony capitalism decisions made under Obama and Bernanke. Could the crisis in Europe be such an event? If so, will global governance, all for our benefit no doubt, claim more of our liberty in creating a global banking system, which could lead to a dollar collapse?

The big banks continue to get bailed out while the small banks are being killed off by excessive regulation, crippling the credit line for consumers, who are on life support. Collusion between the administration and the FED is extremely alarming, contributing to the unnecessary extension of the economic crisis we are in.

All these goings on are the antithesis of what should be taking place, and strongly appear to be orchestrated. These are critically troubling times, and our country as we know it could hang in the balance. As I pray we make it to November 2012, we must hold our freedoms dear, protect our sovereignty and remember that free market capitalism is indeed the best path to prosperity.

Squawker Silenced

Certainly saddened today to learn of the passing of CNBC's Mark Haines, the veteran co-host of Squawk Box and later Squawk on the Street.

Haines was a straight shooter and I spent most every morning over the last 15 years or so listening to his interviews and analysis along with David Faber and Joe Kernen. I always loved the "briefcase indicator" in attempting to gauge the direction of the FED on interest rates based on the volume of Chairman Alan Greenspan's briefcase. Fun times.

Haines also did a masterful job on September 11, 2001, bringing us the dreadful events of that morning all the while knowing many former guests and current friends were in peril.

There is an abundance of talent over at CNBC, but from the beginning Haines was a centerpiece. Along with much of the street and viewers across the globe, I will miss his smart elect remarks and pinpoint interviews.

Stop Spending

Every weekday morning while wrestling my bowl of cinnamon flavored oatmeal, I am monitoring the financial markets with the gang on CNBC's Squawk Box, sick twisted freak that I am. There have been some historic moments on Squawk, most notably with Rick Santelli's shout heard round the world , and the discussion today was along those same lines as America has a choice to make. Take a listen:



Although Joe Kernen and Rick Santelli have fun slapping Steve Liesman around, the choice America has economically is between the Keynesian economic theory regrading the issue of governmental stimulus in the marketplace (Obama) versus the supply side theories of very limited governmental intervention by lowering costs of production and helping to lift the entrepreneurial spirit of free market capitalism, which then trickles down benefiting everyone (Reagan).

New York Times economist Paul Krugman is in the forefront of those promoting the Keynesian theories, and recently wrote that due to a failure to spend enough, the United States is preparing to enter a third depression. Investors Business Daily takes him to task on that thought.

One of my readers alerted me to a piece blaming George W. Bush for all the deficits we are now experiencing. While the Bush administration did expand the deficit, due primarily to events in the aftermath of September 11, 2001, it is the current policies of governmental interference, in the form of increased regulation and taxation, the assault on small businesses across the fruited plain and the uncertainty of the playing field going forward that has hindered investment, placed meaningful growth in a stranglehold and exponentially bloated the federal deficit. In fact, the governmental stimulus in the public sector further crowds out private investment, where most of the jobs are created.

Explaining the poor decisions the current administration is making is Robert Mundell and Art Laffer, who joined CNBC's Larry Kudlow recently for a frank discussion.

The Obama administration has engaged in a level of governmental stimulus never before seen, and our economy has little if anything to show for it. Foreign countries that engage in this type of socialist activities have run out of other peoples money, causing the civil unrest we have witnessed. Uncle Sam will be dealing with these same issues if we don't change course quickly.

There are a few politicians emerging that understand the severity of the issue, including New Jersey Governor Chris Christie (R) and Wisconsin Representative Paul Ryan (R). For our economy to improve, outside of a sweeping change in November, the government should do just as Rick Santelli suggested, and that is to stop spending immediately.

Christie Signals Return to Prosperity

In his first interview since being elected as Governor of New Jersey, Chris Christie (R) joins Carl Quintinia, Becky Quick, Melissa Lee and Darden Restaurant CEO Clarence Otis on CNBC's Squawk Box to kick around the state of New Jersey, which is a snapshot of where our nation is likely heading.

CNBC, which has been editorially leaning left of late and paying for it with the recent departures of Bill Griffith and Senior Reporter Charles Gasparino, seemed ready to take on Christie, but he absolutely leveled all comers. Right leaning anchor Joe Keren was unfortunately on vacation.

The mandate that got Christie elected in this heavily Democrat leaning state, formerly led by Goldman Sachs disciple John Corzine (D), is to pull Jersey out of fiscal ruin on a platform of reform. Included in the reform is heavily cutting entitlements, reforming the entire retirement system and curtailing the unions, whose interference creates inefficient markets.

Take a listen to the discussion:




Gov. Christie is right on target. The time is now for the entitlement programs, which are draining the US coffers, to be immediately scaled back in major fashion and most should be eliminated over time. Excessive governmental regulation and intervention in the marketplace must minimized. The government does not create wealth, the private sector does, but the government can take it away and does in New Jersey, who is among the highest taxed states in the union. The result of this high taxation is residents moving out of the sate in high numbers, which limits economic growth which destroys wealth.

The economic principles necessary to solve these problems are easy to understand and implement, which is the path Christie signaled he is going to take. This is in contrast to our federal government, whose leaders are either economic imbeciles or are knowingly crashing the system. My money is unfortunately on the latter.

Consumer Under Attack

Meredith Whitney, CEO of the Meredith Whitney Advisory Group, joined CNBC's Joe Kernen and the gang of Squawk Box for a frank discussion on the plight of the consumer. Listening to Obama, you may think things are getting better. Whitney, who accurately predicted the collapse, informs you otherwise, and why. Take a listen:



The current administration is doing everything wrong, most notably attacking small business and the attempted implementation of historically huge entitlement programs, and if the electorate does not stand up strong almost immediately, then in about 9 months it will be too late.

I quite agree with Whitney and am anticipating a high level of pressure on the S&P shortly after the new year. For evidence, review the action in the financials, and remember, as Whitney pointed out, banks can borrow at almost 0% and lend at approximately 5%, but are not lending. Do they know something you don't? Not anymore.

CNBC's Santelli Has Had Enough

While much of America drinks their morning coffee while keeping an eye on ABC's Good Morning America or The Today Show on NBC, as an investor I am listening to Squawk Box on CNBC while keeping an eye on the lovely Alexis Glick on FOX Business Money For Breakfast.

This morning, CNBC anchors Becky Quick, Carl Quintinilla and Joe Kernen were joined by billionaire investor Wilbur Ross of WL Ross & Co. and Jason Roney of Sharmac Capital. Joining the discussion from his daily perch at the Chicago Board of Trade was CNBC's Rick Santelli. The group was discussing the governments plan to save the economy and things quickly got out of hand, as Santelli blasted the Obama Administration's mortgage plan.

Kernen, a big fan of The Gipper, gives Santelli the rope to firebomb Obama. This is just great!



America is at a crossroads, and it is imperative that you take a page from Santelli's book and make sure your voice is heard. The ship is sinking, but most are just drinking up listening to the sounds of the band. Here is an avenue where you can join me and make your voice heard!

God Bless America, and thanks to Rick Santelli for speaking out!

BAHL's Babes: Alexis Glick

After biding time at CNBC and over at the Today Show on NBC, FOX Business Channel wisely hired Alexis Glick as Vice President of Business News and Anchor of Money For Breakfast aired each weekday on FBC.

Prior to entering the television world, she was an executive director and ran floor operations at the NYSE for Morgan Stanley. She is a graduate of Columbia University, a mother of three sons, a real estate investor owning several properties and a former basketball star at the high school level or so I read. This is most impressive!

Regrettably, she does seem to be onboard the Obama express, and given her level of education and accomplishment, that is puzzling.

Anyhow, I may be listening to Kernen and gang at CNBC in the morning, but I am watching Money For Breakfast with Alexis Glick.