John McCain

larri kudlow __PUNCT__ host __PUNCT__ senat_john john_mccain __PUNCT__ welcom back to kudlow __PUNCT__ compani __PUNCT__ sir __PUNCT__

senat_john john_mccain __PUNCT__ thank you __PUNCT__ larri __PUNCT__

it nice to be back __PUNCT__

kudlow __PUNCT__ let me begin __PUNCT__ in your speech todai __PUNCT__ and also in recent speech __PUNCT__ you realli blast corpor greed and reckless corpor conduct __PUNCT__

it sound a littl bit like the busi attack by senat_clinton and senat_obama __PUNCT__

can you tell us __PUNCT__ what do you mean by these critic __PUNCT__ what ar you drive at __PUNCT__ mccain __PUNCT__ i drive at the peopl who get compens which is not approv of by the stockhold __PUNCT__ even a nonbind fashion __PUNCT__

i talk about peopl like mr __PUNCT__ cayn __PUNCT__ who the dai __PUNCT__ right around the time the govern took over bear_stearn __PUNCT__ or bail out __PUNCT__ excus me __PUNCT__ bail __PUNCT__ bear stearn __PUNCT__ who went to the market and got __MONEY__ a share rather than __MONEY__ a share __PUNCT__

i talk about peopl that when their corpor ha loss __PUNCT__ that thei ar reward with exorbitantli high pai_packag __PUNCT__

and it give wall_street a bad name __PUNCT__ larri __PUNCT__

and that __PUNCT__ and that pure and simpl __PUNCT__

i do not believ in govern_intervent __PUNCT__ i do not believ in govern_control __PUNCT__ i do not believ that __PUNCT__

but i do believ we should take step to increas transpar and also sharehold input into the compens of ceo __PUNCT__

after all __PUNCT__ that who the ceo work for __PUNCT__

and i also think ceo and chairmen should have __PUNCT__ be differ peopl __PUNCT__

kudlow __PUNCT__ ok __PUNCT__

well __PUNCT__ do you support the sai on pai bill __PUNCT__ that a kei_point __PUNCT__

and would you make that mandatori __PUNCT__ mccain __PUNCT__ in a nonbind __PUNCT__

i would __PUNCT__ i believ in sai on pai __PUNCT__

i believ that aflac is __PUNCT__ supposedli on __DATE__ thei go to vote on that __PUNCT__

i don't think that stock __PUNCT__ sharehold should be prevent from voic their opinion on it __PUNCT__ but i do not believ it should be bind __PUNCT__

i think nonbind is just fine __PUNCT__

i think that send enough of a signal to corpor_execut __PUNCT__

kudlow __PUNCT__ when you ar critic these corpor __PUNCT__ i mean __PUNCT__ there __NUM___million_american work for corpor __PUNCT__ in rough number __PUNCT__

compani ar the on who creat_job in america __PUNCT__ thei the on who realli gener the famili_incom __PUNCT__ and of cours compani need capit_invest __PUNCT__

do you ever worri that you send a veri tough anti __PUNCT__ busi messag to the firm __PUNCT__ to the work_forc and to investor __PUNCT__ mccain __PUNCT__ larri __PUNCT__ in all due respect __PUNCT__ don't you think that when corpor_execut take exorbit pai_packag that ar not justifi by the __PUNCT__ by the perform of the corpor that thei have stewardship of and million of __PUNCT__ and __NUM__ american in the last short_period of time have lost their job __PUNCT__ that that give corpor_america a bad name and then increas the influenc of those who ar basic anti __PUNCT__ busi __PUNCT__ don't you think that is also on of the __PUNCT__ on of the spillov here __PUNCT__ we expect corpor america to be transpar __PUNCT__ honest __PUNCT__ account __PUNCT__ and i don't care how much execut compens is as long as it justifi by corpor perform __PUNCT__

and you know and i know there ar mani of them that that not the case __PUNCT__

not the major __PUNCT__ but there enough of them that it give wall_street and corpor_america a bad name __PUNCT__ the strength and basi of america_economi __PUNCT__

you and i ar not in that much disagr __PUNCT__

but just like there ar bad politician that __PUNCT__ who need to be punish __PUNCT__ there ar bad corpor_execut and corpor greed that ha to be check __PUNCT__ as well __PUNCT__

kudlow __PUNCT__ why __PUNCT__ in the case of jame cayn __PUNCT__ i mean __PUNCT__ i don't want to get too deep into thi __PUNCT__

mccain __PUNCT__ yeah __PUNCT__

kudlow __PUNCT__ __URL__ neither of us ar secur analyst __PUNCT__

mccain __PUNCT__ yeah __PUNCT__

yeah __PUNCT__

yeah __PUNCT__

kudlow __PUNCT__ but he didn't do anyth that broke the law __PUNCT__

he work there for __NUM___year __PUNCT__

mccain __PUNCT__ of cours not __PUNCT__

kudlow __PUNCT__ he collect stock over that whole period of time __PUNCT__

and you yourself support the jpmorgan/bear stearn deal __PUNCT__

so i not sure where the issu is here __PUNCT__ becaus he didn't do anyth illeg __PUNCT__

mccain __PUNCT__ yeah __PUNCT__

well __PUNCT__ when a politician get corpor contribut and then write an earmark for that corpor __PUNCT__ which is not compet or ani other virtu that i know of __PUNCT__ that not illeg __PUNCT__ either __PUNCT__

ok __PUNCT__ but it ain't right __PUNCT__

i sai that there ar corpor_execut __PUNCT__ i sorri to wast our __PUNCT__ i mean __PUNCT__ to spend so much of our time togeth on thi particular issu __PUNCT__ becaus we not that much in disagr __PUNCT__

i want account and transpar __PUNCT__ and i know that you do __PUNCT__ too __PUNCT__

and there ar bad corpor head just as there have been bad politician and there have been bad everyth __PUNCT__ unfortun __PUNCT__ in america __PUNCT__

and transpar and account to sharehold is the best wai to check it __PUNCT__

and you and i ar not in that much of disagr of it __PUNCT__

kudlow __PUNCT__ yeah __PUNCT__

mccain __PUNCT__ but i cring when i hear __PUNCT__ when i hear my constitu sai __PUNCT__ wait __PUNCT__ i just lost my job and that corpor_ceo just cash in x __PUNCT__ ok __PUNCT__ kudlow __PUNCT__ all right __PUNCT__

so as someon onc said __PUNCT__ let us move on __PUNCT__ sir __PUNCT__

recent __PUNCT__

mccain __PUNCT__ ok __PUNCT__ sure __PUNCT__

kudlow __PUNCT__ recent __PUNCT__ you talk __PUNCT__ you said pretti clearli that the us economi is in recess __PUNCT__

in term of your speech todai __PUNCT__ can you tick off your major recoveri point __PUNCT__ mccain __PUNCT__ bring spend __PUNCT__ obvious __PUNCT__ under control __PUNCT__

that is veri obviou __PUNCT__

have a balanc_budget __PUNCT__

reduc corpor_tax from __NUM__ to __NUM__ __PUNCT__

allow expens in the first year of new equip __PUNCT__

job retrain and educ_program that work __PUNCT__ that give us qualifi worker into the work_forc __PUNCT__

let have a ga tax holidai and mayb just give everydai american some relief thi summer __PUNCT__

becom __PUNCT__ make it a nation_prioriti to __PUNCT__ for energi_independ __PUNCT__

we send __PUNCT__ as you know __PUNCT__ __MONEY___billion a year __PUNCT__ half of our trade_deficit __PUNCT__ to countri that don't like us veri much __PUNCT__ and some of that monei end up in the hand of terrorist_organ __PUNCT__

we __PUNCT__ spend and spend and spend __PUNCT__

in other word __PUNCT__ we need to have a year paus __PUNCT__ a year paus on discretionari_spend __PUNCT__ except for veteran and defens __PUNCT__

and let scrutin everi agenc of govern __PUNCT__

you could __PUNCT__ and by the wai __PUNCT__ how do you pai for it __PUNCT__ just the __MONEY___billion in pork barrel project that parent sign __PUNCT__ the presid_sign into law the last two year __PUNCT__ plu the __NUM___billion in pork barrel project that ar alreadi in the pipelin __PUNCT__

and let get the spend under control so that we can give american real and meaning tax_relief __PUNCT__ which thei need __PUNCT__ becaus __PUNCT__ and we cannot make the tax __PUNCT__ present tax_cut __PUNCT__ we can't repeal the present tax cut and we have to take a __PUNCT__ mani other measur __PUNCT__

but i would argu with you that if we go to realli restor our confid and trust __PUNCT__ we cannot increas the tax_burden on american_famili and busi __PUNCT__

it is not tax that ar insuffici __PUNCT__ it spend that out of control __PUNCT__

and on of the area i would go after first and hardest is defens acquisit __PUNCT__

kudlow __PUNCT__ on the corpor_tax __PUNCT__ on the corpor tax_cut __PUNCT__

mccain __PUNCT__ yeah __PUNCT__

kudlow __PUNCT__ __URL__ you talk about pretti much all year __PUNCT__ in order to help financ it __PUNCT__ you mention you want to close some loophol in corpor_welfar __PUNCT__

would you rais the __PUNCT__ unintellig __PUNCT__ __URL__ tax on buyout fund and privat_partnership as a mean of financ your reduct in the corpor_tax tax_rate overal __PUNCT__ mccain __PUNCT__ no __PUNCT__

i would __PUNCT__ no __PUNCT__

but i tell you what __PUNCT__ i would elimin ethanol subsidi __PUNCT__

i would elimin the tariff on import ethanol __PUNCT__

i think our market is be veri badli distort as far as food_price ar concern __PUNCT__

i know you know food price skyrocket __NUM__ percent in a veri short_period of time __PUNCT__

that becaus we distort the market __PUNCT__

i for biofuel __PUNCT__ i for all that stuff __PUNCT__ but let let the market plai __PUNCT__

let not subsid ethanol or ani other altern form of energi __PUNCT__

let go ahead and take awai the import __PUNCT__

let elimin sugar protect __PUNCT__

my god __PUNCT__ it amaz __PUNCT__ still __PUNCT__ the power of some of the section of agricultur in america __PUNCT__

and let elimin loophol that ar special target __PUNCT__ rifl __PUNCT__ shot to specif industri and __PUNCT__ both agricultur and busi __PUNCT__ and let let them all compet __PUNCT__

kudlow __PUNCT__ come back to thi summer ga tax holidai that you unveil in your speech todai __PUNCT__

it a pretti interest point __PUNCT__

i don't think anybodi talk about anyth like that __PUNCT__

let me just ask you __PUNCT__ though __PUNCT__ you been veri tough on the issu of carbon_emiss __PUNCT__ for exampl __PUNCT__

now __PUNCT__ if you waiv the ga tax __PUNCT__

mccain __PUNCT__ yeah __PUNCT__

kudlow __PUNCT__ __URL__ motorist __PUNCT__ isn't that go to actual spur gasolin consumpt and increas carbon emiss __PUNCT__ mccain __PUNCT__ look __PUNCT__ i love to tell you that would happen __PUNCT__

we talk about __NUM___cent a gallon for regular fuel and __NUM__ percent __PUNCT__ __NUM__ cent for diesel __PUNCT__

i not sure that it stimul it __PUNCT__

i think it eas the burden __PUNCT__

the peopl that drive the furthest in america ar the lowest incom_peopl __PUNCT__

you spent enough time in washington __PUNCT__ dc __PUNCT__ to know that the wealthiest live in georgetown and can almost walk to work __PUNCT__ the least wealthi live the furthest awai and drive mani __PUNCT__ mani mile __PUNCT__

i think that there __PUNCT__ that it is a disproportion burden on low_incom incom_american that don't have access to mass transport __PUNCT__ that have to go a long wai to work __PUNCT__

but i like to see american get some relief thi summer and mayb feel a littl better __PUNCT__

that __PUNCT__ and i think it be a nice thing to do __PUNCT__ a good_thing to do __PUNCT__ includ suspend further purchas of oil __PUNCT__ of ga and oil for __PUNCT__ of oil for the strateg petroleum reserv __PUNCT__

kudlow __PUNCT__ well __PUNCT__ some peopl have look at thi propos thi morn __PUNCT__ which i said is a novel propos __PUNCT__ and thei said __PUNCT__ well __PUNCT__ ok __PUNCT__ but __PUNCT__

mccain __PUNCT__ mm __PUNCT__ hmm __PUNCT__

kudlow __PUNCT__ __URL__ thi go to provid __PUNCT__ ultim __PUNCT__ more revenu for saudi_arabia and opec __PUNCT__ which is the revers of what you have argu for in the past __PUNCT__ mccain __PUNCT__ no __PUNCT__ i don't __PUNCT__ look __PUNCT__ i do not believ that we can continu our effort to altern fuel and altern_energi energi_sourc __PUNCT__ includ nuclear __PUNCT__ which is vital __PUNCT__ and still give american a littl bit of relief and let them afford a vacat thi summer __PUNCT__

so all i can tell you is i like to give american some relief and it will have littl or no impact of ani kind on our overal effort that we must mount to becom energi_independ __PUNCT__ and that ha to do with a lot of altern_energi __PUNCT__ again __PUNCT__ and i emphas nuclear __PUNCT__

kudlow __PUNCT__ all right __PUNCT__

a month_ago on the hous and the mortgag issu __PUNCT__ you gave a strong speech and you said on of your core_principl __PUNCT__ it is not the duti of govern to bail out and reward those who act irrespons __PUNCT__

mccain __PUNCT__ yep __PUNCT__

kudlow __PUNCT__ last week in brooklyn __PUNCT__ new york __PUNCT__ you unveil your home plan __PUNCT__

mccain __PUNCT__ mm __PUNCT__ hmm __PUNCT__

kudlow __PUNCT__ __URL__ is essenti a widespread fha assist_program not unlik what obama and hillari ar sai __PUNCT__

why the switch __PUNCT__ mccain __PUNCT__ well __PUNCT__ actual __PUNCT__ i said that we should not reward peopl who have __PUNCT__ who have act in an unscrupul fashion __PUNCT__ and thi doesn't __PUNCT__ thi is target at as mani as __NUM__ homeown who had a legitim home_mortgag __PUNCT__ thei __PUNCT__ it their primari resid and all the __PUNCT__ all of a sudden thei find themselv unabl to make the payment __PUNCT__

these peopl ar not the on i wa talk about then __PUNCT__

there ha been no switch __PUNCT__

i said at that time i want to help peopl who need the help __PUNCT__ who ar deserv of it __PUNCT__

and these peopl ar deserv of it __PUNCT__ who ar in their primari resid __PUNCT__ who ar elig to have a mortgag that thei can afford __PUNCT__

and it in the lender interest as well as the borrow interest __PUNCT__ otherwis __PUNCT__ that home becom vacant __PUNCT__

and in the event __PUNCT__ by the wai __PUNCT__ in the event of sale of that home __PUNCT__ over time with appreci __PUNCT__ on third would go to the lender __PUNCT__ on third to the fha and on third to the homeown __PUNCT__

so i think it a __PUNCT__ it a veri badli need relief to honest __PUNCT__ legitim __PUNCT__ home __PUNCT__ own american who find themselv trap in thi terribl problem of own __PUNCT__ of realiz __PUNCT__ not be abl to realiz the american_dream __PUNCT__

kudlow __PUNCT__ doe your version of thi differ from the democrat version __PUNCT__ mccain __PUNCT__ i haven't read their version __PUNCT__ but from what i understand their is veri massiv and veri expens __PUNCT__

but i haven't read their __PUNCT__

kudlow __PUNCT__ would you consid __PUNCT__ by the wai __PUNCT__ roll_back the commun reinvest_act __PUNCT__ which a lot of peopl sai trigger thi __PUNCT__ mandat bank and other lender to make substandard loan in the first place __PUNCT__ and the creator of the subprim_mortgag back in the middl __PUNCT__ 90 __PUNCT__ is it time to take a look at the commun reinvest_act __PUNCT__ mccain __PUNCT__ absolut __PUNCT__ larri __PUNCT__

there were peopl who predict that the commun reinvest act might lead to reckless and unsound lend_practic just to sort of fill a __PUNCT__ you know __PUNCT__ a amount of __PUNCT__ i don't like to us the word __PUNCT__ quota __PUNCT__ but certain percentag of a __PUNCT__ of a home __PUNCT__ of the bank_lend lend_practic __PUNCT__

ye __PUNCT__ it ha to be re __PUNCT__ examin __PUNCT__ it ha to be judg by it effect __PUNCT__ and we need to find out how thi particular system affect the overal insolv of the subprim lend issu __PUNCT__

and i think it __PUNCT__ i not sai it need to be repeal __PUNCT__ but it certainli need to be re __PUNCT__ examin and what it effect have been __PUNCT__

and we be abl to figur that out __PUNCT__

kudlow __PUNCT__ just on last on __PUNCT__ sir __PUNCT__

thi morn wholesal inflat report for the month of march __PUNCT__ headlin inflat __PUNCT__ __NUM__ percent year on year __PUNCT__

consum_price __PUNCT__ as you know __PUNCT__ up __NUM__ percent __PUNCT__ probabl on the wai to __NUM__ percent __PUNCT__

former fed_chairman paul volcker the other dai in new york said we ar in a dollar crisi __PUNCT__

would you support or would you recommend a fed/treasury/g7 action to defend the dollar and to strengthen the dollar as a wai of hold down these inflationari pressur __PUNCT__ mccain __PUNCT__ i certainli would give it everi consider __PUNCT__ but you and i both know that a weak dollar is a symptom of fundament_problem __PUNCT__ such as our trade_deficit __PUNCT__ half of it be account for by our need to import foreign_oil __PUNCT__ our debt to the __PUNCT__ to the chines __PUNCT__ the spend practic __PUNCT__ our continu burgeon out of control behavior in washington which then ha given us an unsound economi __PUNCT__ reflect in the weaken dollar __PUNCT__

the best wai we can __PUNCT__ in my view __PUNCT__ to strengthen the dollar over time __PUNCT__ let have free_trade __PUNCT__ let exchang good and servic with everi nation in the world __PUNCT__ let have __PUNCT__ reduc our deficit __PUNCT__ let lower_tax __PUNCT__ let give the american_peopl a sound basi for economi and hope and optim for the futur __PUNCT__

and i confid __PUNCT__ i am confid that the fundament of our economi ar strong and we will recov and america will be stronger over time __PUNCT__

but right now __PUNCT__ we ar face veri seriou challeng __PUNCT__

i see you talk about them everi singl_dai __PUNCT__

kudlow __PUNCT__ senat_john john_mccain __PUNCT__ thank you __PUNCT__ sir __PUNCT__ for come back on kudlow __PUNCT__ compani __PUNCT__

we appreci it veri much __PUNCT__

mccain __PUNCT__ thank you __PUNCT__ larri __PUNCT__