Sen Kerry on CNBC now. n/t

[globalvillage]

[globalvillage]

1. Did anyone watch this?

When Larry Kudlow said during the interview today “My favorite Massachusetts Senator was Kennedy.” Sen. Kerry, in typical diplomatic fashion, refrained from retorting that his favorite economic commentator is either Kaletsky or the late Louis Rukeyser. Interesting for a change to hear a discussion with the new Chairman of the Senate Committee on Small Business about business. Not your typical Hardball or Scarborough questions.
Needless to say, Kudlow didn’t mention the pronoun.
The discussion, as most do these days, began with Iraq. Kudlow started by asking the Senator about the meeting today with Tony Blair. Sen. Kerry said Blair was clear that ‘the potential for disaster is unacceptable’, that we need to transfer responsibility and come to a political resolution, and that he is in favor of looking into discussions with Iran and Syria.
They discussed timetables for withdrawal, how McCain is ‘dead wrong’ in regard to troop levels, and that the real issue is motivation, and that adding more troops won’t do anything to help with that. Sen. Kerry said he disagrees with the ISG in regard to embedding troops and the lack of a firm timeline. Consistent with his previous statements, he stressed that the solution in Iraq is political, and that the fundamental political issues must be resolved.
Kudlow asked what happens if when we leave and Iran moves in how that solves Shi’a/Sunni issues. Sen. Kerry doesn’t believe that will happen and that more importantly, you can’t allow it to get there. The way you avoid that is through diplomacy between the neighbors.
On to domestic economic issues, Kudlow asked about the stock market, and why it’s been good this year, while during the Vietnam era it wasn’t. Sen. Kerry said there are a lot of people happy with the basic economic outlook. The key is to begin moving toward a stronger position in the entire ME. If the new congress is responsible in respect to fiscal issues, he doesn’t see any reason for the market not to get even stronger.
They discussed Sarbanes-Oxley. Sen. Kerry favors easing regulations, particularly for small businesses, but doing it the right way. Compliance, but in a way that relieves some of the strain on small businesses.
The Senator was asked about raising the top tax rate back to 39%. His answer was yes, but not above that. Just retract the cut. He spoke about what the country needs to do with healthcare, infrastructure and IT. Sounds like he wants to both have these things and actually pay for them.
Kudlow asked about free trade, Sen. Kerry says we need ‘sensible’ trade agreements.

In the post interview analysis, Arthur Laffer says he thought the interview was exceptional and agreed with most of what JK said, although he disagreed with him on the top tax rate. No surprise there.

Not much new to us, but a different perspective than most of the shows.

[ProSense]

2. Missed it, but thanks for the great recap! n/t

[fedupinBushcountry]

3. Video is up now

http://www.cnbc.com/id/15840232?video=151217476&play=1

Thanks so much for the recap. I am watching now.

[TayTay]

4. outstanding recap

Thanks!

[blm]

5. Can you recap that in GDP? I missed it and I'd bet others did, too.

In fact, someone got the info wrong on the taxcuts - they thought Kudlow said Kerry was against raising taxes, when I was pretty certain that Kerry was for rolling back the taxcuts but not going further.

[wisteria]

6. Thanks for posting.

I got a chance to watch the interview and you are right, it was good to hear him talk about something other than Iraq. What a knowledgeable man.

[ginnyinWI]

7. wow it's just hitting me again--the Dems are majority now!

Otherwise he wouldn't be on a program like this, being asked serious questions. :)

[JI7]

8. it's just weird

the media likes to talk about what a joke it is at the thought of Kerry running for President.

but when discussing serious issues from foreign policy to economics, and i mean real discussion with details, they talk to him.

i was just thinking at the weirdness of it. isn't this the type of discussion they should be having with those who think are major Presidential contenders, not the guy they consider to be a joke.

i like it when people know things and can really discuss them. i mean have actual conversations about it. not throw out some emptly one liners. to give credit, Bill Clinton is also able to do this and it's what has always impressed me about Clinton rather than the superficial stuff.

and it also got me thinking that it would be a good thing if people got to see Kerry like this more. there is no way they could view him as some kind of a joke. at the worst they will think he is lacking in joke telling . but they most likely would see him as a guy who gets the issues, knows what he is talking about and can fix the problems.

[karynnj]

9. That intelligent, knowledgeable, problem solving Kerry

is the Kerry who the country saw in the first debate (and at his convention - for those who watched). The coverage at other times was superficial. This is why Kerry gained so much from the first debate. Seen without the silly media filter, he was exactly what was needed as a President.

[ginnyinWI]

10. my husband was just asking me

what the Dems are likely to do to taxes and how they might influence the stock market, etc. Now I have the perfect clip for him to watch. This clip gave me a reason to trust Kerry even more.

[JI7]

12. you don't even have to say anything

you just have to let people see it. at the worst they will say they disagree with him. but i don't see how anyone can see him discuss these things and say he doesn't understand the issues and knows what he is talking about.

in fact trying to make Kerry into a joke could be one of the worst attacks against him since it's so easy to refute just by watching and listening to him.

[JI7]

11. so it's just Kerry being Kerry

forget all the crap about having to be likable or regular guy. in fact his likables were higher than Bush based on those who watched the first debate. he didn't have to make any jokes, they saaw him as the guy who can fix the problems. this is what matters in the end.

and if you look at Giuliani and McCain they are seen in the same way. Giuliani is seen as the "hero of 9/11. his popularity has nothing to do with them liking him. in fact he is one of the most unlikable guy sout there. but he is seen as a guy who can do the right thing in national security situations.

John McCain's popularity is based on him being seen as doing the right thing and working with others to get things done. he is viewed as an independent who will put aside partisan differences to do the right thing.

the image of Giuliani and McCain that i described is based on the media and mostly a lie for those who know the truth about them. but the image of Kerry is based on reality as most americans saw in that first debate.

[TayTay]

13. Sarbanes-Oxley: Just some wonky info

I feel the need, now that the Birthday Party is out of the way, to go learn something wonky. You have to put up with that impulse. Mea culpa.

Sen. Kerry mentioned some reforms that he wants to put into place for the Sarbanes-Oxley regulations that will give small businesses a break from the expense and time that are needed to comply with this. So, I just wanted to put some stuff here to begin to put some of that into persepctive. (Hey, there is this Chairmanship coming up in Jan. And if I actually learn some of this and can talk about some of it without sounding like an absolute idiot, I might get a cookie!)

What is Sarbanes-Oxley:
http://en.wikipedia.org/wiki/Sarbanes-Oxley_Act

The Sarbanes–Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, and WorldCom (recently MCI and currently now part of Verizon Businesses). These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D–Md.) and Representative Michael G. Oxley (R–Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Some believe the legislation was necessary and useful, others believe it does more economic damage than it prevents, and yet others observe how essentially modest the Act is compared to the heavy rhetoric accompanying it.

Is there pending legislation out there to deal with Small Business and Sarbanes-Oxley?

(Oooh, I'm so glad I asked myself that one. I deserve a cookie!)

Why Sen. Kerry filed a bill on Sept. 21, 2006: http://thomas.loc.gov/cgi-bin/query/z?c109:S.3919.IS:
from the Congressional Record:

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - September 21, 2006)

--- By Mr. KERRY:

S. 3919. A bill to assist small business concerns in complying with the Sarbanes-Oxley Act of 2002; to the Committee on Small Business and Entrepreneurship.

Mr. KERRY. Mr. President, in order for the United States to continue to stand for the fairest, most transparent and efficient financial markets in the world, I believe we must provide assistance to America's small public companies in their efforts to comply with the Sarbanes-Oxley Act.

Just a few years ago, the trust and confidence of the American people in their financial markets was dangerously eroded by the emergence of serious accounting irregularities by some companies and possible fraudulent actions by corporations like WorldCom, Inc., Enron, Arthur Andersen and others. The shocking malfeasance by these businesses and accounting firms put a strain on the growth of our economy. The misconduct by a few senior executives has cost the jobs of thousands of hard-working Americans. The lack of faith in our financial markets contributed to an overall decline in stock values and has caused grave losses to individual investors and pension funds.

By all accounts, Sarbanes-Oxley has been effective in bringing accountability to corporate governance, auditing, and financial reporting for public companies. The dark days of the Enron scandal have given way to a new corporate culture that embraces responsibility and transparency, and for this we have Sarbanes-Oxley to thank. Sarbanes-Oxley has helped restore confidence in our capital markets and helped improve our nation's future economic growth.

However, with compliance also comes cost. And while the cost of complying with the law is small enough to be absorbed by larger corporations, smaller public companies, particularly small minority public companies, have been disproportionately affected by these costs. Small business is the engine of economic growth in our Nation. Almost 60 percent of Americans are employed by small businesses. Small business growth has been critical in developing the high wage jobs for America's future.

Unfortunately, an April 2006 report to the Senate Committee on Small Business and Entrepreneurship by the United States Government Accountability Office (GAO) found that small public firms are incurring much higher audit fees and increased costs in complying with the Sarbanes-Oxley Act.

The report finds that of the 2,263 public firms with market capitalization of less than $75 million, just 66 have fully implemented Section 404 of the law that requires firms to construct formal internal control frameworks and filed internal control reports. These 66 firms reported paying $1.14 in audit fees per $100 of revenue, compared to just $.13 per $100 for firms with greater than $1 billion in market capitalization. I believe we must take action to help small

companies comply with the regulatory burdens of the Sarbanes-Oxley Act.
In addition to the costs associated with internal controls, 81 percent of small firms responding to the GAO survey said they brought in outside consultants to comply with the Act. Nearly half of the small firms reported ``opportunity costs'' related to complying with the regulatory burden placed on them by the Sarbanes-Oxley Act such as deferring or canceling operational improvements, and more than one-third of respondents were forced to defer or cancel information technology investments. Too many small firms simply do not have the resources and expertise necessary to implement the formal internal control frameworks required by Section 404, and as a result, they are disadvantaged compared to larger firms that are absorbing these costs.

The U.S. Securities and Exchange Commission has provided a lengthy compliance period for small businesses to comply with the Sarbanes-Oxley regulations and is attempting to develop additional methods to ease the regulatory burden. However, I believe additional efforts are needed.

In order to assist these firms with the increased costs of implementation and help our small businesses keep our economy moving forward, I am introducing the Small Business Sarbanes-Oxley Compliance Assistance Act of 2006. The bill would authorize the U.S. Small Business Administration to award grants to small public companies and small business concerns to help lessen the burden of these costs. If Congress is asking these small firms to bear the burden of cost for compliance with Sarbanes-Oxley, the least we can do is chip in and help pay for it. My legislation authorizes $5 million to be awarded annually through 2011.

My legislation also creates a task force, assembled by the SBA Chief Counsel for Advocacy, and comprising of representatives from the SEC and other appropriate bank regulatory agencies, to report semi-annually on how to assist small public companies in complying with Sarbanes-Oxley. My hope is that this task force will continually find new ways to lift the regulatory burden on small businesses attempting to comply with the law. Each report of the task force will be required to evaluate upgrades or alternatives to the SEC's Electronic Data Gathering Analysis Retrieval System so that companies might submit filings to the SEC without the need for third party intervention. The task force will also report on the potential to reduce inefficiencies related to SEC filings; the feasibility of synchronizing filing requirements for substantially similar small firms; whether the SEC and bank regulatory agencies should commit additional resources to aiding small public firms with filing requirements; whether the SEC needs to publish guidance on reporting and legal requirements aimed at assisting smaller public firms; and the feasibility of extending incorporation by reference privileges to other Government filings containing equivalent information.

This legislation will help some but not all of the thousands of small firms that are public or hope to become public. As more information becomes available, I am hopeful that the task force will provide ideas on how the SEC can help more of the small, non-accelerated filers implement the Sarbanes-Oxley regulations. We must do all we can to insure that small firms can demonstrate that transparency and accountability in the private sector is thriving without having to incur such a burdensome cost. This legislation is supported by the National Black Chamber of Commerce as well as Small Business Majority. I ask all my colleagues to support this legislation.

What happened to that bill in the 109th (Weasel) Congress?

It died in committee and awaits resurrection in the 110th (Democratic) Congress in Jan. Call me crazy, but maybe if the Chairman of Small Business likes it, it just might get a hearing or two.
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:s.03919:

More to come: There are statements on Sen. Kerry's Senate website about this legislation and the effect he hopes it will have on lifting onerous restrictions on small business. Good stuff! This stuff really matters to a whole lot of people.

[blm]

14. It does matter to alot of people, and that's why it needs GD attention. heh ;)

.

[TayTay]

15. It did get this blm. I am backdating some info on this

It deserves a heck of a lot of attention in GD and elsewhere on the web. This should be re-introduced in the 110th Congress.

Believe me, it will get some love and attention. Right now, I am getting wonky with it. (I think there might be a speech in Jan that deals with just this kind of thing. As SBA and Economics and Jobs and so forth are 'not my thing' I have to start to ramp up on it. I have but started. (Yeah, that statement scares me too! TayTay unleashed. The Full Wonky. Run and hide.)

This is part of a much more comprehensive set of ideas that impact SBA, helath care, tax code and so forth. It is just starting to dawn on me that I have died and gone to wonk heaven. Congress can actually do something about this stuff, because of the Democratic turnover. It needs preparation so that we are ready for this change-over.