Staying Safe in a Tough Economy
KING: Welcome back. We're talking about President Obama's road trip this week. Here's what we heard at a town hall meeting in California.</s>OBAMA: Somebody was saying the other -- today, I think -- that I shouldn't be on Leno.</s>OBAMA: I can't -- I can't handle that and the economy at the same time.</s>KING: James, how does he remain so popular? I mean, he's inherited all this kind of thing -- criticism left and right, the economy falling apart...</s>CARVILLE: Because people...</s>KING: ...and he stays on top.</s>CARVILLE: People see through the absurdity of all of this. The idea that he shouldn't be doing the basketball brackets -- you know, Franklin Roosevelt listened to horse racing in the White House in the middle of the Depression. Frankly, I'd feel better if I knew he put a bet on a couple of them. I mean all of this pontificating and you can't do this and that. I mean people see right through that. Jay Leno's leaving television. He's been on there 17 years. He's a popular guy. The president is in the largest state in the United States. I mean he's out being -- doing things that a president does. He's talking about his agenda, he's talking about his programs. He's trying to inform people. I think this whole -- you know, all of his critics just need to lighten up about 50 percent here...</s>KING: All right. He's not...</s>CARVILLE: ...and quit worrying about basketball brackets.</s>KING: He's not leaving, he's switching time slots and going to an earlier time slot. Tucker, does...</s>CARVILLE: Well, I understand. But "The Tonight Show" he's leaving.</s>KING: Yes. Tucker, does it drive you a little nuts, as a critic, to see his popularity ratings?</s>CARLSON: No, not really. I think he's a really appealing guy. I've always thought that. I followed the campaign for two years and I thought he had a very winning personality. I still think that. I think I'll always think that. I'm just -- the thing that bothers me is how little attention is paid to his policies. It's not that he can't go on "Leno" and do a lot of stuff. He can. He absolutely -- he's done more than any president in the first two months in American history. And the central idea is, at a time that we have no money, we're going to spend -- deficit spend another $9.5 trillion. Now, maybe that's a great idea. Maybe it's deranged. I think it's deranged. But we should be debating that. He's done a lot. He's an activist. Let's debate what he's doing. And you've heard virtually no debate it. And that really bothers me.</s>KING: We're going to get into some specifics economic wise as we go along. But one more thing we want to show you and then we'll get a comment from Stephanie. Obama has taken a hit from Duke's basketball coach, Mr. Krzyzewski, over an ESPN White House appearance making picks. Watch. (</s>BEGIN VIDEO CLIP, COURTESY ESPN) OBAMA: This is a tough one. I still think that Duke, a lot of skilled perimeter players, they just don't have the muscle in the center.</s>UNIDENTIFIED MALE: Right. DeJuan Blair...</s>OBAMA: I think Blair...</s>OBAMA: Blair is going to eat them up.</s>MIKE KRYZYZEWSKI, COACH, DUKE BASKETBALL TEAM: Somebody said that you know, we're not in President Obama's final four, you know? And as much as I respect what he's doing, really, you know, the economy is something that he should focus on, you know, probably more than the brackets.</s>KING: Is that a point, Stephanie?</s>MILLER: I think he was kidding. But, you know, I think James...</s>KING: You think Krzyzewski was kidding or the president?</s>MILLER: I think he was being light-hearted, Krzyzewski. But I mean, you know, look, which is it? They're saying oh, he's going to -- he's having parties, he's going on "The Tonight Show," get to work. And then they say he's doing too much. Which is it? Is he doing too much work or is he playing too much? You know, as the president said the other day, you know, the American family doesn't have the choice of going, oh, am I going to deal with my kid's education or health care or whatever -- or the mortgage? They have to deal with all of it and so does he.</s>KING: Amy, in fact, he did inherit most of this, did he not?</s>HOLMES: Well, he did. He inherited an economic meltdown that was long in the making, as we know, as he explained on "Jay Leno," the subprime crisis and then it -- you know, being collateralized and all of -- and all of that business. But getting back to, actually, his popularity ratings, I think something that's been a little bit misunderstood conventional wisdom here is that he actually does not have higher approvals than George Bush did at precisely this time in his presidency, in his first term, after losing the popular vote to Al Gore. So I think this is really more a tribute to the American people, that they're willing to give our president the time to succeed and they're willing to wait and see. But, you know, the clock is ticking and Barack Obama needs to, I think, be pulling us together.</s>KING: James, the approach of being -- all the press conferences, doing a lot of things, while that appears busy, isn't -- doesn't it appear to say I'm focused on too many things at one time?</s>CARVILLE: Just focus on the banking crisis and the housing crisis. Unfortunately, there's a collapse in demand. There's a war in Iraq. There's a war in Afghanistan. North Korea is doing all kinds of things. There's a crisis in health care. And you just don't get to pick and choose, when you're president of the United States, particularly at a time like this. And he's a busy man. And Tucker is right, it's not, certainly, a lack of doing things. And maybe somebody has a better idea how to create some demand in this economy. But most economists think what he's doing is actually a pretty good idea. But he doesn't get a chance...</s>CARVILLE: He doesn't -- well, again, we could -- we could debate. I don't know how to tell you this, Tucker, there's no demand out there.</s>CARLSON: But the idea that...</s>CARVILLE: ...business demand is collapsing.</s>CARLSON: ...most economists agree...</s>CARVILLE: The consumer demand is...</s>CARLSON: ...with -- with...</s>CARVILLE: That's correct.</s>CARLSON: ...pumping up the deficit by over $5 trillion...</s>CARVILLE: That -- that -- that...</s>CARLSON: ...in this budget?</s>CARVILLE: That is correct. That is correct.</s>CARLSON: I don't know who these most economists are.</s>CARVILLE: That is...</s>CARLSON: I don't know what economists you're having dinner with.</s>CARVILLE: Well, maybe you need to go out and look and see. There's not much demand in this economy. The idea is that they're trying to stimulate it. Now, you can argue about that or you can argue about his housing plan, but he actually has one. Or you can argue what he's doing in banking, but he's actually doing something.</s>CARLSON: Now, what's the...</s>CARVILLE: You can argue...</s>CARLSON: ...what's the banking plan?</s>MILLER: Tucker...</s>CARVILLE: ...Middle East policy. He's actually doing something.</s>MILLER: Tucker...</s>CARLSON: What's the banking plan?</s>MILLER: ...I always wanted to respond...</s>KING: One at a time.</s>MILLER: I always wanted to know...</s>KING: One at a time.</s>MILLER: Tucker, I always want to know from you guys. You're the party...</s>CARLSON: Right.</s>MILLER: ...that handed us a $1.3 trillion deficit. How do you suggest we get out of this?</s>CARLSON: The Libertarian Party did that?</s>MILLER: It's not like the president...</s>CARLSON: I don't think so, Stephanie.</s>MILLER: It's not like the president came in itching to spend money. How would you get us out of this?</s>CARLSON: OK. Let me...</s>MILLER: And if...</s>CARLSON: Let me just say...</s>HOLMES: But hold on. If you think the deficit is a bad idea, then why would you be supporting a budget that he estimates is $3.6...</s>CARLSON: Right.</s>HOLMES: ...but we now find out from the CBO is an additional $2 trillion? To criticize your predecessor for creating a deficit and then blowing it up many times, that just doesn't make sense.</s>CARLSON: You're not going to get me to defend Bush.</s>MILLER: Because like James says, economists on both sides of the aisle say that that's what we need to do to...</s>CARLSON: Let me just make a small point...</s>KING: One at a time.</s>CARLSON: ...a very small</s>KING: Tucker, go ahead.</s>KING: Tucker, go ahead.</s>CARLSON: These new...</s>KING: Yes, sir?</s>CARLSON: The Congressional Budget Office numbers, which came out today, by law -- they have to come out -- they're going to change the debate. This is something that just a month ago, the Obama people didn't know about -- $2.3 trillion in additional deficit spending. They didn't even know. It was their budget. This is going to change -- you will see Democrats on Capitol Hill say, whoa, whoa, whoa, hold on. This is too much. This is scary.</s>HOLMES: They're already doing that.</s>CARLSON: Next week is going to be very different from this week, I promise.</s>KING: And we promise that we'll be back with more right after this. Don't go away.