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Posted: December 31, 2009 01:31 PM

Arianna Calls Out Kudlow For Dow '50,000' Prediction, Urges People To Ditch Bailed Out Banks (VIDEO)

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Arianna was on CNBC's "The Call" today to discuss the Move Your Money campaign. Host Larry Kudlow challenged the idea of switching money from big banks to community banks. Arianna countered that she's not sure why anyone is still listening to Kudlow, given his previous predictions that have turned out to be wildly off-base, including his statement in 1999, "By 2020, the Dow index will reach 50,000, and the 10,000 benchmark will be reduced to a small blip on a large screen."

Kudlow repeatedly denied ever having made that prediction, actually claiming that it was Jim Glassman who had. But in the second segment, Arianna read Kudlow's direct quote from his March 18, 1999 Wall Street Journal article back to him.

Seeking Alpha has more.

WATCH: Part 1
WATCH: Part 2

Here is Kudlow's full statement:

The dominant event of the late 20th century is the bull-market prosperity of the 1980s and 1990s. This was caused largely by a shift back to free-market economics, a reduction in the role of the state and an expansion of personal liberty. At the turn of a new century, taking the right road will extend the long cycle of wealth creation and technological advance for decades to come. By 2020 the Dow index will reach 50,000, and the 10,000 benchmark will be reduced to a small blip on a large screen.
 
Arianna was on CNBC's "The Call" today to discuss the Move Your Money campaign. Host Larry Kudlow challenged the idea of switching money from big banks to community banks. Arianna countered that she'...
Arianna was on CNBC's "The Call" today to discuss the Move Your Money campaign. Host Larry Kudlow challenged the idea of switching money from big banks to community banks. Arianna countered that she'...
 
 
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02:46 PM on 01/21/2010
ARIANNA IS TOO YOUNG TO REMEMBER,BUT... DURING/FOLLOWING .WORLD WAR 11...THE BIG ONE...THE U.S. DEALT WITH THE ECONOMIC REALITIES AND POTENTIAL HAZZARDS WITH AN EXCESS PROFITS TAX...AS I RECALL IT FORCLOSED ON A BLIZZARD OF POTENTIAL PROBLEMS AS WELL AS PLAIN AND FANCY SCULDUGERY...WORTH THINKING ABOUT NOW!
12:51 PM on 01/14/2010
TO MOVE FUNDS OUT OF BIG BANKS IS AN ETHICAL AND COMMON SENSE MOVE...BUT PERHAPS IT IS TIME TO MOVE SOME OUT OF THE COUNTRY.
01:20 PM on 01/04/2010
repugs and their selective memory and rewrites of history can't even fool themselves anymore.
10:09 AM on 01/04/2010
Economics, as a predictive tool, ranks slightly above long range weather forecasting and significantly below Voodoo.
holyghostie
Spiritus est qui vivificat
11:20 PM on 01/03/2010
Ask your cable operators to dump CNBC and Fox Business and get BLOOMBERG. Bloomberg is a much better Financial Cable channel with less schilling than CNBC.
02:39 PM on 01/03/2010
I find it absolutely baffling that a complete and utter refusal to change your mind regardless of the evidence can ever be seen as a positive thing. It's not flip-flopping to change your mind in the face of overwhelming evidence: it's just good sense.
10:22 PM on 01/03/2010
My sentiments exactly.
04:12 PM on 01/04/2010
i think that is what they call insanity
01:15 PM on 01/03/2010
Larry Kudlow is the WORST! I heard him, as late as the summer of 2008, saying, on air, that "we" were all overreacting and that the economy was strong and that everything would be just fine. I was AMAZED that he did not get FIRED! Especially when the world economy started to tank shortly AFTER he said that - and HE"S supposed to be some kind of expert!!!!! He should have been one of the hundreds of thousands of unemployed - his firing FOR CAUSE, rather than poor economy.

I also find it hilarious that all the while calling Obama's actions wrong-headed, stupid, whatever - that CNBC's so-called "experts" would be lined up on screen, Brady Bunch style, ALL YELLING THEIR HEADS OFF AT EACH OTHER, because none of these "experts" could agree on what should be done! Even NOW, although thoroughly convinced that Obama was wrong, they STILL don't have ANY agreement on what should have been done. Except keep government out of business. but, thanks to the crooks among their cronies in the biz, that ship has sailed. Government MUST regulate business, because the big guys are just too crooked to even marginally control themselves. Kudlow must be going bonkers over even the thought of that. Dump him - let him go to Fox, where he can more effectively talk to himself. No one takes him seriously anymore ( I turn the TV off when he comes on) and at FOX business, no one is watching.
07:43 PM on 01/03/2010
CNBC has become the mouthpiece of the "pocket pickers" who call themselves "stock pickers." Name one alert they posted about the economy that has come TRUE!!!
01:03 PM on 01/14/2010
RIGHT ON TARGET...WOULD SEEM TO DEMONSTRATE UNFORSEEN CONSEQUENCES.OF THE FIRST AMENDMENT...MIGHT HAVE GIVEN THE FOUNDERS PAUSE!
outnow
Ban the bomb
01:11 PM on 01/03/2010
If Wall Street doesn't serve Main Street and the real economy, we should get rid of it.
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Kassandra
Your micro-bio is empty
11:43 AM on 01/03/2010
Get the suckers back into the market and collapse it again in an echo bubble
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HUFFPOST SUPER USER
bill123456
11:07 AM on 01/03/2010
I have to watch CNBC for 8 hrs a day...I see no reason to listen to LK...listening to him you be bankrupt many times over...

...he even called himself "fair and balanced" on CNBC....

...he is auditioning for a job on FOX. and he will fit just right ....
.
10:54 AM on 01/03/2010
I use technical analysis and more analysts should study share price trends in my opinion.

In early 2007 I warned of an impending stockmarket crash.

I confirmed a bottom by April 2009.

In mid 2009 I warned of an impending USD rally.

The uptrend since March 2009 has been a bear market rally contained within a much larger bear cycle that started in 2000.

More analysis:
http://www.zerohedge.com/forum/market-outlook-0
10:37 AM on 01/03/2010
I thought Kudlow's best part was accusing Arianna of flip-fopping from conservative to liberal and said, "I am a conservative and don't flip-flop". Like he is driving his car in the wrong lane and sees a bus coming but refuses to change lanes, or to flip-flop. Splat.

It is obvious that the bank change campign has the big boys on Wall Street plenty worried.
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10:03 AM on 01/03/2010
On one hand Larry says he doesn't support the "to big to fail business"motto. Then on the other hand Larry seems overly against the notion to have the people remove thier money from the" to big to fail" banks.Then on one foot Larry says "Let the free market decide" Then on the other foot he seems to imply that the people should not engage in "the free market"and not move thier money from the "to big to fail banks".Do you want to revise you initial statemen Larry? "I don't have any skin in this" For some one who does not have any "skin" in this you sure did go on the offence about people who want to enage themselves in tthe free market and do something about the looting of Americas treasury.
08:57 PM on 01/02/2010
First, I completely agree with Arianna's astute conclusion of empowerment; individual citizens need to take individual actions to revive the economy - that is the core message. Second, CNBC is not a trustworthy source of financial information and objective analysis (Often referred to as the network of 'Corporate Shills'). As a commentator for CNBC, Larry Kudlow is employed by the largest corporation in the world (GE) with extensive financial interests in a number of related businesses (Real Estate, commercial lending, etc..), therefore, Kudlow's logic is influenced and largely biased in favor of his employer, investors and corporations that choose to advertise on CNBC. For Kudlow/CNBC to agree with such a message would be a direct conflict of interest to the profit margin. It is time for a REAL business network that has an interest in actual business rather than politics.
07:51 PM on 01/02/2010
I heard Fox Business Channel has poor ratings, and may get canceled. The whole channel!
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HUFFPOST SUPER USER
Changeizgood
09:17 PM on 01/02/2010
Who are these soothsayers and false predictors. They are the same ones who said like Johnny McGrumpy: "THE FUNDAMENTALS OF OUR ECONOMY ARE JUST FINE.

Still listening to these MONEYCHANGERS?

NOT!

Blue Tsunami of Change is Revving up for the long haul this election. ONLY 12 seats on Dem side and 30 seats on the rethug side that need replacing. How about some INdependents and Green Party candidates?

WE know it's not just about majority party, but American party of unity and democracy. WE need adults in both HOUSES, that don't lie or take bribes from corporations. Progressives, Independents, and Greens apply. The party of NO, can handle their own crooks. If they don't then they have nothing to complain about when their party status quo hypocrits, crooks and liars, keep obstructing the people's protections from Wall St and morgage fraudsters and healthcare.
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Chopin
Multiply the truth. Speak truth through power.
11:38 PM on 01/02/2010
Conventional wisdom says Dems would shrink in one or both House + Senate in 2010.
What change-oriented people should focus on in 2010 is how to BREAK THE CYCLE of low expectations + conventional thinking. In past 8years, Republicans have created yawning political void the size of the Grand Canyon. By one timid misstep after another, corporatist Democrats are ceding that void steadily to a POLITICAL VACUUM. Who are going to fill that vacuum? What are they going to offer to people to earn the right to fill that vacuum? That's the question progressive Democrats, Independents, + firstimers must focus on like laser beam.

First necessary thing to do is discard all old assumptions, precepts + vocabulary. Start with defining a clear vision that vast majority of people would say,

"Ahaaaa, that's it! WHY NOT?"

Nevermind million things that have gone wrong a million times in the past, like the proverbial unsolvable "Gordian knot". Spellout things so crystalclear, so fundamentally obviously true, that people cannot ignore or misunderstand them.

In psychology that's "paradyme shift" --- suddenly jump from seeing picture in one way to seeing it in completely different unexpected way.

In politics that's "transformational change" --- total systemic change of all rules, discard dead weight of low expectations, cynicism + apathy. The political puss must be cleansed before transformational change can succeed. To fill political social vacuum, third party must be credible force for change. EVERYBODY among 299million middleworkingclass Americans have to put their best thinking caps on, think