HE TALKED ABOUT THE ECONOMY. LET’S TAKE A LISTEN.

LET’S TAKE A LISTEN. >> I JUST THINK EVERYBODY,

>> I JUST THINK EVERYBODY, WHETHER YOU’RE AN INVESTOR OR

WHETHER YOU’RE AN INVESTOR OR WHETHER YOU’RE, YOU KNOW,

WHETHER YOU’RE, YOU KNOW, ORDINARY MAIN STREET PERSON,

ORDINARY MAIN STREET PERSON, PEOPLE SHOULD NOT OVERREACT.

PEOPLE SHOULD NOT OVERREACT. THAT’S THE IMPORTANT THING.

THAT’S THE IMPORTANT THING. THE MARKET HAS SHORT-RUN

THE MARKET HAS SHORT-RUN CORRECTION.

CORRECTION. AND I GUESS IT’S 10 OR 11% OR

AND I GUESS IT’S 10 OR 11% OR SOMETHING.

SOMETHING. WE’VE BEEN THROUGH THIS MANY,

WE’VE BEEN THROUGH THIS MANY, MANY TIMES BEFORE.

MANY TIMES BEFORE. AND I DON’T THINK EVEN THOUGH

AND I DON’T THINK EVEN THOUGH IT’S A FRONT PAGE STORY AND

IT’S A FRONT PAGE STORY AND NOBODY LIKES TO SEE THEIR ASSET

NOBODY LIKES TO SEE THEIR ASSET VALUES GO DOWN, I JUST DON’T

VALUES GO DOWN, I JUST DON’T THINK AT THIS POINT IT’S GOING

THINK AT THIS POINT IT’S GOING TO HAVE MUCH OF AN IMPACT.

TO HAVE MUCH OF AN IMPACT. >> SO, STEPH, TRUTH SQUAD THAT

>> SO, STEPH, TRUTH SQUAD THAT FOR US.

FOR US. IS THAT JUST WHITE HOUSE HAPPY

IS THAT JUST WHITE HOUSE HAPPY TALK OR IS KUDLOW ONTO SOMETHING

TALK OR IS KUDLOW ONTO SOMETHING HERE?

HERE? >>.

>>. >> LISTEN, LARRY KUDLOW ISN’T

>> LISTEN, LARRY KUDLOW ISN’T NECESSARILY WRONG.

NECESSARILY WRONG. FROM A NUMBERS PERSPECTIVE,

FROM A NUMBERS PERSPECTIVE, THEY’RE VERY SIMILAR.

THEY’RE VERY SIMILAR. WHEN THE MARKET DROPPED DURING

WHEN THE MARKET DROPPED DURING THE FINANCIAL CRISIS, UNDERLYING

THE FINANCIAL CRISIS, UNDERLYING FUNDAMENTALS WERE DISASTROUS.

FUNDAMENTALS WERE DISASTROUS. RIGHT NOW WE DON’T KNOW THE

RIGHT NOW WE DON’T KNOW THE RISKS ASSOCIATED WITH THE

RISKS ASSOCIATED WITH THE CORONAVIRUS AND HOW YOU WOULD

CORONAVIRUS AND HOW YOU WOULD NORMALLY SAY NO NEWS IS GOOD

NORMALLY SAY NO NEWS IS GOOD NEWS.

NEWS. IN THIS CASE, NO NEWS HAS PEOPLE

IN THIS CASE, NO NEWS HAS PEOPLE MORE AND MORE CONCERNED.

MORE AND MORE CONCERNED. TWO DAYS AGO WHEN WE FIRST HEARD

TWO DAYS AGO WHEN WE FIRST HEARD FROM THE WHITE HOUSE, YES, THEY

FROM THE WHITE HOUSE, YES, THEY WERE CAUGHT FLAT-FOOTED.

WERE CAUGHT FLAT-FOOTED. YOU HAD A LOT OF PEOPLE NOT IN

YOU HAD A LOT OF PEOPLE NOT IN ROLES TO ADDRESS THESE KINDS OF

ROLES TO ADDRESS THESE KINDS OF THINGS.

THINGS. REMEMBER, TOM BOSSART USED TO BE

REMEMBER, TOM BOSSART USED TO BE THE HOMELAND SECURITY ADVISER.

THE HOMELAND SECURITY ADVISER. WHEN WE SAW JOHN BOLTON TAKE

WHEN WE SAW JOHN BOLTON TAKE OVER, HE WASN’T REPLACED.

OVER, HE WASN’T REPLACED. THE WHITE HOUSE WAS FLAT-FOOTED

THE WHITE HOUSE WAS FLAT-FOOTED A FEW DAYS AGO.

A FEW DAYS AGO. THE LACK OF INFORMATION FROM THE

THE LACK OF INFORMATION FROM THE WHITE HOUSE FOR THE LAST FEW

WHITE HOUSE FOR THE LAST FEW DAYS HAS SENT THE MARKETS DOWN

DAYS HAS SENT THE MARKETS DOWN BUT ALSO IT HAS CAUSED

BUT ALSO IT HAS CAUSED GOVERNMENTS AND COMPANIES TO

GOVERNMENTS AND COMPANIES TO CHANGE THEIR BEHAVIOR.

CHANGE THEIR BEHAVIOR. SO GOLDMAN SACHS ISN’T WRONG

SO GOLDMAN SACHS ISN’T WRONG WHEN THEY’RE DROPPING THEIR

WHEN THEY’RE DROPPING THEIR FORECAST FOR GROWTH AND TIM COOK

FORECAST FOR GROWTH AND TIM COOK FROM APPLE ISN’T WRONG WHEN HE

FROM APPLE ISN’T WRONG WHEN HE IS SOMEWHAT OPTIMISTIC.

IS SOMEWHAT OPTIMISTIC. BOTH CAN BE TRUE.

BOTH CAN BE TRUE. THIS ECONOMY HAS BEEN GROWING

THIS ECONOMY HAS BEEN GROWING BECAUSE OF CONSUMER SPENDING AND

BECAUSE OF CONSUMER SPENDING AND SUDDENLY IF CONSUMERS ARE ALL

SUDDENLY IF CONSUMERS ARE ALL GOING TO CHANGE OUR BEHAVIOR

GOING TO CHANGE OUR BEHAVIOR BECAUSE OF THE PERRECAUTIONS WE’

BECAUSE OF THE PERRECAUTIONS WE’ TAKING, THEN THE ECONOMY WILL

TAKING, THEN THE ECONOMY WILL DROP.

DROP. THERE’S SO MANY UNKNOWNS, SO

THERE’S SO MANY UNKNOWNS, SO IT’S NOT FAIR TO SAY THINGS ARE

IT’S NOT FAIR TO SAY THINGS ARE DISASTROUSLY IN THE RED AND

DISASTROUSLY IN THE RED AND THEY’RE GOING TO STAY THERE.

THEY’RE GOING TO STAY THERE. THEY COULD TURN GREEN.

THEY COULD TURN GREEN. >> YEAH.

>> YEAH. GENE SPERLING, I WANT TO GET YOU

GENE SPERLING, I WANT TO GET YOU TO WEIGH IN ON KUDLOW’S COMMENTS

TO WEIGH IN ON KUDLOW’S COMMENTS THERE.

THERE. >> WELL, I COULDN’T DISAGREE

>> WELL, I COULDN’T DISAGREE WITH THE APPROACH THAT THEY ARE

WITH THE APPROACH THAT THEY ARE TAKING MORE.

TAKING MORE. THIS IS A SERIOUS ISSUE AND I

THIS IS A SERIOUS ISSUE AND I THINK WHEN YOU’RE IN GOVERNMENT,

THINK WHEN YOU’RE IN GOVERNMENT, THE BEST THING YOU CAN DO IS TO

THE BEST THING YOU CAN DO IS TO ACTUALLY FOCUS ON THE REAL

ACTUALLY FOCUS ON THE REAL PROBLEM, TO LOOK LIKE YOU HAVE

PROBLEM, TO LOOK LIKE YOU HAVE 100% LASER FOCUS ON PREPARATION,

100% LASER FOCUS ON PREPARATION, ON THE ACTUAL, ON THE GROUND

ON THE ACTUAL, ON THE GROUND THINGS THAT WILL MAKE THE UNITED

THINGS THAT WILL MAKE THE UNITED STATES BETTER PREPARED AND SHOW

STATES BETTER PREPARED AND SHOW THAT WE’RE BEING SERIOUS.

THAT WE’RE BEING SERIOUS. THIS IS NOT IRRATIONAL BEHAVIOR

THIS IS NOT IRRATIONAL BEHAVIOR BY THE MARKET.

BY THE MARKET. THEY ARE LOOKING AT A DRAMATIC

THEY ARE LOOKING AT A DRAMATIC FALL IN TOURISM AND TRAVEL, ONE,

FALL IN TOURISM AND TRAVEL, ONE, TWO, THEY ARE LOOKING AT A

TWO, THEY ARE LOOKING AT A DRAMATIC DISRUPTION OF THE

DRAMATIC DISRUPTION OF THE GLOBAL SUPPLY CHAIN THAT GOES

GLOBAL SUPPLY CHAIN THAT GOES BEYOND THE WUHAN REGION AT A

BEYOND THE WUHAN REGION AT A TIME WHEN MANUFACTURING WAS NEAR

TIME WHEN MANUFACTURING WAS NEAR DEPRESSION AND WHEN GLOBAL

DEPRESSION AND WHEN GLOBAL INVENTORIES ARE LOW AND

INVENTORIES ARE LOW AND MANUFACTURING OPERATES IN JUST

MANUFACTURING OPERATES IN JUST IN TIME MANUFACTURING, MEANING A

IN TIME MANUFACTURING, MEANING A DISRUPTION IN THE SUPPLY CHAIN

DISRUPTION IN THE SUPPLY CHAIN COULD BE PARTICULARLY HARMFUL.

COULD BE PARTICULARLY HARMFUL. AND TO GO FURTHER ON WHAT

AND TO GO FURTHER ON WHAT STEPHANIE SAID, RIGHT NOW WHEN

STEPHANIE SAID, RIGHT NOW WHEN YOU’VE LOOKED AT THE U.S.

YOU’VE LOOKED AT THE U.S. ECONOMY, THE THING THAT HAS MADE

ECONOMY, THE THING THAT HAS MADE YOU FEEL MORE POSITIVE WAS THAT

YOU FEEL MORE POSITIVE WAS THAT THE CONSUMER HAD REMAINED

THE CONSUMER HAD REMAINED STRONG.

STRONG. NOW SUDDENLY YOU HAVE THIS

NOW SUDDENLY YOU HAVE THIS DRAMATIC "X" FACTOR THAT WE SEE

DRAMATIC "X" FACTOR THAT WE SEE PLAYING OUT EVERY DAY, THAT

PLAYING OUT EVERY DAY, THAT EVERY CONSUMER WE KNOW IN OUR

EVERY CONSUMER WE KNOW IN OUR LIVES IS THINKING ABOUT

LIVES IS THINKING ABOUT ADJUSTING THEIR BEHAVIOR, EVERY

ADJUSTING THEIR BEHAVIOR, EVERY COMPANY IS PULLING BACK.

COMPANY IS PULLING BACK. THAT IS REAL.

THAT IS REAL. IT’S NOT JUST A MARKET

IT’S NOT JUST A MARKET PSYCHOLOGY KIND OF CHALLENGE, IT

PSYCHOLOGY KIND OF CHALLENGE, IT IS ABOUT PEOPLE LOOKING AT THE

IS ABOUT PEOPLE LOOKING AT THE ECONOMY AND THE BEST THING THAT

ECONOMY AND THE BEST THING THAT LARRY KUDLOW AND THE

LARRY KUDLOW AND THE ADMINISTRATION CAN DO IS SOMEHOW

ADMINISTRATION CAN DO IS SOMEHOW WE’RE NOT ABOUT TALKING UP THE

WE’RE NOT ABOUT TALKING UP THE MARKET, WE’RE NOT ABOUT

MARKET, WE’RE NOT ABOUT ECONOMICS.

ECONOMICS. WE’RE SERIOUS AND TO LOOK MORE

WE’RE SERIOUS AND TO LOOK MORE LIKE A CLOWN SHOW THAT LOOKS

LIKE A CLOWN SHOW THAT LOOKS LIKE IT IS, YOU KNOW, WORRIED

LIKE IT IS, YOU KNOW, WORRIED ABOUT THE POLITICAL SPIN OF THE

ABOUT THE POLITICAL SPIN OF THE MOMENT OR TRYING TO TALK UP THE

MOMENT OR TRYING TO TALK UP THE MARKET OR TELL CONSUMERS TO BUY

MARKET OR TELL CONSUMERS TO BUY THE DIP BEFORE THE MARKET GOES

THE DIP BEFORE THE MARKET GOES DOWN ANOTHER 10%, NOT ONLY

DOWN ANOTHER 10%, NOT ONLY DOESN’T PROVIDE THAT CONFIDENCE,

DOESN’T PROVIDE THAT CONFIDENCE, IT ACTUALLY MAKES THE UNITED

IT ACTUALLY MAKES THE UNITED STATES GOVERNMENT LOOK LIKE

STATES GOVERNMENT LOOK LIKE THEY’RE NOT ON THE JOB AND THAT