Media Appearance: Kudlow & Company (2/27/07)



Back in the studio tonite, at 5:00
– 5:45pm

The topics will include China, the global sell off, and the US market correction, the soon to be revised downwards GDP, and Q4 earnings.

The full show is on the Markets, and include a stellar collection of panelists: Herb Greenberg, Arthur Laffer, John Rutledge, Quentin Hardy, Robert Hormats, Lakshman Achuthan, Gary Shilling.

When I saw the futures this AM, I tagged the producer — something I never do — and said I’ve been Larry’s whipping boy everytime there is a 100 point rally. Howabout some payback?

We will be going over some of the details of this.

UPDATE: February 27, 2007 10:59pm

Kudlow starts the show with the famous J.P. Morgan quote: Prices will fluctuate. I respond that we haven’t seen much volatility, and prices have only moved in one direction for the past 8 months.

Larry corrects me, emphasizing the word "fluctuate." 

My response:

"We got fluctuated pretty good today,"  thus ending my TV career . .

What's been said:

Discussions found on the web:
  1. KirkH commented on Feb 27

    Ahhh, sweet, we all knew this day was coming, you should wear sweater with a bear eating Goldilox on it.

  2. Robert Coté commented on Feb 27

    Why on a day like this would allow the likes of Larry Kudlow to appear on your Barry Ritholtz Show?

  3. gunthestops commented on Feb 27

    Give Kudlow hell, he is one of the biggest morons on CNBC!!!

  4. Kevin Rooney commented on Feb 27

    Enjoy the payback. You have really earned it.

  5. jj commented on Feb 27

    give ’em hell , they should eat some crow

    as for me , I covered 1/3 of my shorts and will do so again tomorrow …. with that , I shorted out-of-the money puts vs. the remaining shorts with the VIX spikes (VIX rallied from 12 to 19 ) to cover those remaining positions …
    crossing my fingers as usual, but this is usually a good trade even if the timing is wrong

    still net long on a beta-adjusted basis , but only 42%

  6. snarly commented on Feb 27

    It seems like only yesterday you were asking how long since a 2% correction.

  7. Jdamon commented on Feb 27

    This wasn’t a correction, this was a bloodbath!

  8. yc32 commented on Feb 27

    Just a few weeks ago, Chinese stock market had a 25% loss in couple of days. Nothing happened elsewhere. Now, all of sudden, China becomes forward indicator, go figure.

  9. ilsm commented on Feb 27

    400 points is not a sell off.

  10. Sponge Todd Square Pants commented on Feb 27


    What the heck? You got bumped in favor of Art Laffer? Does Art have naked pictures of Larry with a room full of coke and teen hookers? Erin Burnett is, pound for pound ,the sexiest woman in the main stream media.

  11. Fred commented on Feb 27

    When you see this type of spike in the VXO and huge volume selling, you HAVE to get a “line in the water”. These fear spirals are a gift. And yes, congrats to the perma bears, you got a chance to either get back to even or book a profit. Take it.

  12. FredB commented on Feb 27

    The bears are eating bagels with Goldilox. Thanks for that image, Kirk!

  13. Robert Coté commented on Feb 27

    Art Laffer says “There’s nothing in the money supply that suggests inflation.” He repeated no inflation several times and Kudlow made the point of repeating the money supply claim. Mr. R, could you please, please run a post discussing this?

  14. erik commented on Feb 27


    i laughed out of my seat watching your eyebrows react to the pearls of wisdom ms. burnett kept spewing. you guys have to be going out of your minds sharing space with that clown.

    by far the funniest television i’ve seen in quite some time.

  15. jagmohan swain commented on Feb 27

    “This wasn’t a correction, this was a bloodbath!”.And funny thing is it’s not over yet.It certainly not over.1987 selloff of 500 points came after the market was already down over 12%.Here we are up 20% without a correction.1987 all over again with plenty of room to go.the worse part 1987 was a speculative excess, this one is happening ’cause we have an economic malaise.In 1987 the
    business cycle was in full bull swing that had started in 1982 and lasted 18 years.This one when the business cycle in full down swing only been postponed by Fed mismanagement aka Housing bubble.See where we stand today and how glaringly diffrent it is from 1987.That was a financial collapse, this one will lead to an economic collapse.
    It pays well to listen to such astute economic observer such as Paul volcker, Marc faber, Peter Schiff, Bill Fleckenstein , Jim rogers and Barry ofcourse.

  16. Brooklynite commented on Feb 27

    So what happens tomorrow? I’ve been on the edge of my seat all day. And I’m not playing the market; just watching from the sidelines.

    I’m thinking we’ve got another bloodbath tomorrow.

  17. Jdamon commented on Feb 27

    Actually, since August of 2006 it HASN’T paid to listen to the above mentioned. However, that doesn’t mean now is not a good time to listen. My ears are perking up a bit after today.

  18. jagmohan swain commented on Feb 27

    Certainly it hasn’t but that didn’t make them wrong either.When there is a disconnect between mainstreet and wall street, wall street will follow mainstreet but only with a timelag.

  19. MarkTX commented on Feb 27

    I don’t have to watch K&C to know what they are going to say…

    Cramer at TSCM say it all here…

    Man is that whining, crying wolf, the blame game and/or just a disgrace to write a column like that!


    WHAT a CROCK!!!!

    Cheers to all,
    (we did survive now didn’t we).

  20. Mr. Beach commented on Feb 27

    IMHO, tomorrow depends on the action overnight in Shanghai & Bombay.

    1) The Bombay index did not crater overnight. Based on the loss today in Indian ADRs trading in NY, I think Bombay traders are going to wake up to some substantial volatility.

    2) What will retail investors in Shanghai do? Earlier this year, the WSJ ran a piece about China recording 50K new brokerage accounts a day. Seems a lot like the dotcom bubble days. I think more than a few are going to panic. So I suspect we’ll see more red in Shanghai.

    IMHO, if both Shanghai & Bombay have a greater than 7% drop overnight, we’re going right into another volatile session.

    For those that do not know, you can easily track foreign exchanges on Yahoo here:

  21. Bob A commented on Feb 27

    Well Barry may disagree… but Art Laffer and Larry Kudlow get PAID to ALWAYS be positive. They are highly paid salesmen for the keep your money in the market industry. They will NEVER tell you not to keep your money in the market. They like their jobs. They get paid a LOT of money to sell you on keeping your money in the market. Like most good salespeople they convince themselves they really BELIEVE what they’re telling you. So honestly I think it’s hopelessly naive to expect any sort of objective commentary from either of them.

  22. Eclectic commented on Feb 27

    Sounds like a little group of 13-year-old boys, and one of ’em finally managed to get up the courage to buy a pack of rubbers, and they’re all down in the woods now figurin’ out who to screw with ’em.

  23. VJ commented on Feb 27

    Well, it didn’t take the Goldilocks crowd long. They’re saying this is a BUYING OPPORTUNITY !!!

    There’s this bridge in Brooklyn I can put on eBay….

  24. Eclectic commented on Feb 27

    By the time the buy-side media gets through, this’ll look like the last change to get in on Moses doin’ the IPO on dirt.

  25. fish commented on Feb 27

    Sponge Todd and MAS, stuttering AMEN !!

    I’m hoping for further meltdown tomorrow, just so I can see her grace the K&C airwaves.

  26. S commented on Feb 27

    wow…Nikkei futures down 650 points

  27. Eclectic commented on Feb 27

    I am sorry my friends, but I hav e to shaaare thiss witty youall.
    .imamm sistittin herre laiffffin my asss offf kickin;’g back ‘ese whiskeees and ditee coeks!@QW!

  28. vdk commented on Feb 27

    wow, Quentin Hardy was embarrassing on this show…..quote (and I am paraphrasing)….”this correction will make the market stronger….” is it me, or WTF?

  29. Eclectic commented on Feb 27

    Barry, you do have the best financial blog anywhere, as said by The Greatest Story Never Told, for several reasons:

    -Nobody links better.
    -Nobody is near so tolerant as you are, sometimes to your own detriment.
    -Nobody allows the access you do.
    -Nobody is as analytical.

    The only problem I see is that you from time-to-time need a nap and a cookie, and then everything is okay.

    Thanks… from all of us.

  30. Eclectic commented on Feb 27

    Let me add that there is no better place for a reasonable 60-year-old, one who is contemplating his or her financial future, to come for original, independent, careful, responsible commentary than right here.

    Hat’s off… and I tell it to few.

  31. KirkH commented on Feb 27

    I agree Eclectic, and there’s also no better place for an irrational 28 year old trying to figure out how the world works.

    And watch the NIKKEI take a beating live here. Doesn’t look good for tomorrow.

  32. Scott Patterson commented on Feb 27

    The sudden, sharp decline by the Dow Jones Industrial Average shortly before 3 p.m. Eastern time today was triggered by a tabulation delay by Dow Jones data systems, which calculates the average. There was a temporary lag in calculation of the 30 large-stock average due to a surge in order flows as the market continued to tumble in afternoon trading, much like a clogged pipe. Just before 3 p.m., Dow Jones Indexes switched over to a backup system to calculate the average, which nearly instantly registered the huge move.

    The glitch wasn’t the cause of the decline, but it did cause the drop to register far more quickly than it otherwise would have. Other indexes fell at the same time, but more gradually. Some traders noticed a discrepancy between futures contracts tied to the Dow industrials and the index, which directly tracks the stocks. Usually, the futures contracts closely track the overall average.”

  33. S Pearman commented on Feb 27

    I am 22; I don’t have any investments but I am interested in economics generally, I read this site regularly.

  34. eightnine2718281828mu5 commented on Feb 27

    Here’s what I find ineresting; we have a bunch of trades being executed that drive the dow down 540 points, and apparently in real-time these trades were happening in an orderly fashion with both buyers and sellers fully aware of the prices they’re paying.

    Then lo and behold, the dow calculation catches up to reality, and like magic, the market bounces off the 3:00 bottom.

    It’s almost like someone out there doesn’t like to see the dow drop sharply, but if individual stocks drop, it’s just hunky dory.

  35. CDizzle commented on Feb 27

    To build on 89’s piece…

    Gee…I wonder if the same glitch would EVER happen in a rally of equal magnitude.

    That’s rhetorical…

    Question: in a slow and steady uptrend such as we’ve experienced in recent times, where is the “solid” support? Based on my limited TA knowledge, there isn’t much…as far as the major indices are concerned anyway…

  36. vdk commented on Feb 27

    so, early in the trading day in asia we have the following…

    Hang Seng – Down 3.5%
    Nikkei – Down 3.7%
    Straits Times – Down 5.3%
    Seoul Composite – Down 3.2%
    KLSE (Malaysia) – Down 5.8%

    China is essentially flat right now….

    What, me worry?……

  37. Mr. Beach commented on Feb 27

    Why would China be so flat tonight? Do they have volume lockdowns? Is the market being purposefully slowed down?

  38. V L commented on Feb 27

    “Why would China be so flat tonight? Do they have volume lockdowns? Is the market being purposefully slowed down?”

    Chinese communist government has issued a warning. The sellers are considered as the enemies of the people of China; therefore, anyone who sells will be tortured and killed.

  39. Clark Kent commented on Feb 27

    If you havnen’t experienced a gift like this in the past, may I suggest that you judiciousiously spend some money tomorrow morning, and then tomorrow afternoon, on your fav’s. This is a rare correction….take advantage of this fear.

    Cark Kent…keeping it real.

  40. V L commented on Feb 27

    Japan industrial output logs biggest fall in 3 yrs

  41. ac commented on Feb 27

    Hot money from hedge funds being pulled from the emerging zoom markets to cover losses in US sub-prime and yen trades. Gold down due to sales to raise cash. Look out below. A 5% margin increase requirement for Chinese stock purchasers explains nothing.

  42. Eclectic commented on Feb 27

    Clark Kent,

    Unless you have a kryptonite suppository, you may have a case of the red ass tomorrow about this time.

  43. dave commented on Feb 27

    did Art Laffer really say “there are no major signs of any weakness in the U.S. economy”?

  44. V L commented on Feb 27

    Clark Kent,

    Did you also recommend buying during the first day of the market crash in 2000?

    Don’t you want to see GDP numbers in am and the effects of the margin calls?
    You are obviously having the agenda. What is your real name?
    Are you Jim Cramer?

  45. VennData commented on Feb 27

    How does John Rutledge know that no on in China is using non-standard methods to obtain cash to throw into the Shangahi market; that’s doubled in eighteen months? Does he have all the pawn shop data?

    That’s why “those guys” hate the New York Times, because they publish stuff that slips up the touts talking their book so they get it caught in their zipper.

    I’m no China basher, but Rutledge is a freakin’ Vichy.

    AND…. I did love the callers onto Mad Money tonight:

    CALLER1: A subdued post-China-booyah, Jim…

    CALLER2: A boo-hoo-yah Jim….

  46. V L commented on Feb 27

    Because of his Washington connections, the Chinese government pays John Rutledge; in return, he promotes their interests in the US.
    He is a paid puppet, just ignore his lies.

  47. jagmohan swain commented on Feb 28

    People are getting all worked up about a mere 4% sell off day.In 1987 we had a sell off over 20%
    in a day after the market had already corrected over 20% in 2 months.Do the Hedgies have a stomach for that?The thing that’s gonna make it worse this time are fundies.In 1987 when market crashed 20% you could look 2 years further down the line at strong economic fundamentals as an investor and start buying.Now in year 2007 when you look even 1 year down the line there
    is a significant recession led by housing market and steep debt levels baring it’s teeth at you .How confident a long term investor can be to buy at this point? So my point here is if a strong underlying economic conditions couldn’t save the market from selling off 20% in a day and 20% in 2 months before that would you bet against similar correction not happening now when the mainstreet fundies are so far off from walstreet expectations ( read hallucinations ).Hedgies are going to lose their pants as this is no Nasdaq bubble and there are no retail investors to unload their stuff on.Watch the hedgies feeding on each others corpse in next couple of weeks.

  48. MarkM commented on Feb 28

    Wow Eclectic, were you, Robin Williams and Jonathan Winters in the same room there for a moment?

  49. Eclectic commented on Feb 28


    Yeah, but I had Williams and Winters tied and gagged through the whole thing.

    I tell ya, that pair!… Jonathan Winters and Robin Williams doin the ad-libs!… and doin’ schtik and the voices through gags!… It is not to be believed unless you could see and hear it!

    And Williams!… He is quite the Houdini, I must say. It was all I could do to keep at’boy tied.

    Thanks for the implied praise. You’re invited to my Noble Prize for Economics ceremony… ought to take about, hmmm, maybe 8-10 years.

    That’s about how long it’ll take for my theoretical musings on failed monetary policy to get recognized for the unique and exemplary manner in which they describe it.

    Or, depending on what follows on to yesterday’s market activity… I might be able to speed up the Noble a couple of years.

  50. Bob A commented on Feb 28

    That was a great show dude. Later, on another show Kudlow appeared on a Hollywood squares type screen with five others and when he launched into his ‘I believe blah blah blah’ thing they all rolled their eyes, shook their heads and thank goodness Erin or whoever it was just cut him off.
    In a perfect world we would be allowed to banish both Larry Kudlow and Suze Orman together to a desert island for an indeterminate period of time.

  51. Rick commented on Feb 28

    ilsm i agree with your erin assessment, however she “lost” me when she said today that “no one ever made money on gold.”

    HOWEVER, even though I find most pumpers including females on CNBC useless I need to make a point about Becky Quick. She stood in on “Fast Money” for D.R. a few weeks ago and showed-off that hot ‘lil body of hers for a change.

    The top is already in Barry, note the tick-up in CDO market and options action. Yen has bottomed! Time to catch the falling cash raining down from above!

    Curious to hear about any Japanese stocks you like (e.g. MTU?).

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