Business

Home Depot Co-Founder Unloads on Obama: ‘He Needs a Sentiment Transplant’

Ken Langone is a famous venture capitalist, philanthropist, a former director of the New York Stock Exchange, and the co-founder of Home Depot.

Recently, he was on the Fox Business  show “Your World with Neil Cavuto” and he had a few words of advice for the Obama administration.

The interview began with a question: could a favorable shift in the economy be the “wind” at the president’s back?

Ken Langone didn’t think so. He claims that it’s not just the markets (i.e. S&P and the DOW) that need to improve — unemployment has to be addressed.

Cavuto clarified his original question: Could the improvement in the markets also improve the prospects for unemployed Americans?

“I think the surge in regulations these last three years has dramatically changed the underlying structure of job creation in America. Look at Wall Street! Look at the banks! They are laying off left and right,” Langone said.

“Bonuses are way down,” Cavuto said replied.

“Yeah, because the profits are way down! Goldman Sachs lost money in the last quarter,” Langone said.

Cavuto continued: “I talked to your buddy Bernie Marcus [founder of Home Depot] not too long ago, if he could do or you guys could do—”

“We couldn’t do it,” Langone interrupted.

“—today what you did with Home Depot when you got it going—”

“We couldn’t do it,” Langone flatly declared.

But what is so different about today’s environment that the co-founder of Home Depot doesn’t think that he would be able to repeat his success?

Langone gave an example.

“We believe that every single person that worked with us—no one worked for us, they were our associates—should own stock directly or indirectly. Options today you must expense. So when we started the company and we had 2 stores and then 4 stores, those people who got those options we would have had to immediately expense them at the Black–Scholes [a financial model that is used to determine the fair price of options] at about 40 percent,” Langone explained.

“Guess what? You would never have earning. And it was foolish because if the options expired out of the money, the expense we booked never really happened!” he added

Watch the interview:

Nevertheless, even after explaining how modern-era regulations tend to prohibit businesses from making their options profitable, Cavuto wasn’t buying it.

“You would have found another way to make it work and you guys, and Steve Jobs, and Bill Gates,” Cavuto said. “The one common theme is, in a very tough environment, you guys made it work,”

“You’re asking me if we could do it again,” Langone said later in the interview. “We could probably have succeeded, but not on the scale that we did.”

Cavuto decided it was time to steer the interview back in the direction of the opening question: what does the president have to do to improve unemployment?

“Tell me two things that Ken Langone says he has to do right now,” Cavuto said.

“He needs a sentiment transplant,” Langone replied after some thought. “He needs to go from looking at business as ‘fat cats’ and saying ‘this is what brought America to the party.’”

“I will tell you right now: the biggest threat to our democracy, in my mind, is unemployment,” Langone added.

Langone believes that President Obama must address unemployment and refrain from characterizing businesses as being greedy profit mongers. Perhaps if he does those things, then he will be able to address the “income inequality” issue.

And what does Langone think about that?

“Whoever it is that talks about ‘the widening gap between the rich and the poor,’ the reason is not that we worked harder or smarter and made more money, the reason is that we’re not bringing education into the lower [level],” Langone said.

“I am where I am today because my parents were adamant about my having a quality education and I went to a public school out in Long Island. I had great teachers, and I learned, and I was eligible for college.”

Empowered by a good education, Langone claims that “It wasn’t hard for me to jump into the mainstream.”

“But you see their point about that chasm?” Cavuto asked. “And the one way to close it is to tax guys like you more. To narrow it.”

“You could tax 100 percent and it won’t move the needle,” Langone replied.

If simply taxing the wealthy and reallocating their capital won’t fix the “income inequality” in the U.S., what will?

“The biggest barrier to closing that gap [between the rich and poor] [is] the quality of teaching the public schools. There is a direct correlation. Look and see the performance of these kids and look at the economy,” Langone said.

Judging by the overall inability of the OWS protesters–many of them with college degrees–to coherently form a mission statement or a list of goals, Langone might be correct in his assessment of modern education.

Comments (21)

  • wwolfwp
    Posted on June 11, 2012 at 12:58am

    Come on guys give him a break, he’s “evolving”. What is the evolutionary ladder for ******? Do they become pretty butterflys?

    Report Post »  
  • Tex Expatriate
    Posted on November 9, 2011 at 5:01pm

    Obama does not need a sentiment implant. He needs a brain transplant. In every respect he’s a minor edition of Adolph Hitler, Benito Mussolini, Vladimir Lenin, Josef Stalin, or Pol Pot. If power were estended to him, many of us would soon be in concentration camps or gas ovens.

    Report Post »  
  • Magsmeds
    Posted on November 9, 2011 at 3:36pm

    If you want to succeed at making money today… you need to work within the system. http://wp.me/p1N2Bf-2B

    Report Post »  
  • ZAB
    Posted on November 9, 2011 at 3:34pm

    A good education can be had by all. Parents’ are the main catalyst to develop the desire for learning and the discipline to do what it takes. And maybe most importantly, to help their children ignore anything or anyone who isn’t part of the effort.

    Yeah, I know a lot of parents are pathetic, however any child will find they have mentors all around them if the display a desire to get ahead.

    Report Post » ZAB  
  • One Man Progressive Wrecking Crew
    Posted on November 9, 2011 at 3:28pm

    “‘He Needs a Sentiment Transplant’” That and a frontal lobotomy.

    Report Post » One Man Progressive Wrecking Crew  
  • Mikev5
    Posted on November 9, 2011 at 2:19pm

    The big problem is BIG Government they have their fingers in everything and all it does is muckup the works it’s not how to change our school system for the betterment of our children it’s how can we get more power to do as we please when we please it’s a massive power base for the politicians and nothing more teaching is just a small portion of what it’s for.

    It seems like every Teacher is now a politician not a teacher when did that happen they are a massive power base and nothing more.

    Report Post » Mikev5  
  • alwayshappy
    Posted on November 9, 2011 at 1:01pm

    This man is right on point! I agree with everything he said! He‘s a business man and he knows what’s going on. Sadly, the White House isn’t listening. But do they ever?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    Report Post »  
  • trench99
    Posted on November 9, 2011 at 10:54am

    50 years ago if you were a “single mother” chances are you were widowed, & chances are you really were doing it all on your own. Today these “single mothers” receive child support & get every other weekend off. My grandmother worked her a$$ off to provide for her kids, she was a single mother, she worked days, took sewing jobs, and other odd jobs. No child support or govt handout. My mother divorced, worked full time ( Grandma watched us kids ) & part time wnds, no child support. Someone once asked why she wasn’t going for support she answered “I left for a reason, he can’t take care of himself, why ruin his life when I am capable of providing for my kids” ( they divorced after the death of their first born & he was not coping well ). I always admired both of these women, for their strength, courage, and fortitude. Determination sometimes will get you further than education God willing.

    Report Post »  
  • GERATMO
    Posted on November 9, 2011 at 9:20am

    We need more of the 1% to speak up. The occupiers are fighting you so you need to fight back.

    Report Post » GERATMO  
    • robert
      Posted on November 9, 2011 at 12:44pm

      “The biggest barrier to closing that gap [between the rich and poor] [is] the quality of teaching the public schools. ”

      But how can the quality of teaching be improved, when teachers are being “given” their certification because of affirmative action? Testing in New Jersey a while back revealed 35% of the teachers there couldn’t pass courses on the high school level, yet they couldn‘t be replaced due to the teachers’ union.

      As long as we are giving away accreditation there will be a large number of below average teachers. But, on the other hand, how can “good” teachers improve learning throughout the system when a good portion of students are just not able to learn on an “average” level?

      America has become a third rate country due to multiculturalism, and that is an unequiovocal fact.

      Pat Buchanan lays this out, but doesn’t say so, however, I know he draws the same conclusion that many people do, which is, simply, the trend is irreversible.

      Like Rome America is destroying itself, bogged down by seditionists and do-gooderism.

      The countries of the future are those who are almost 100% homogeneous, like China, Japan and Korea.

      Report Post »  
  • BIBLESnGUNS
    Posted on November 9, 2011 at 8:45am

    If I had money, and believe me….I don’t, why would I be willing to invest it in the economic climate that we are currently enjoying?? I have worked hard to have the things I have, and I appreciate living in a country where you can enjoy the fruits of your labor. These protestors wany to enjoy the fruits of everyone else‘s labor and shouldn’t have to be responsible to provide for themselves or their families.
    The lack of personal responsibility will be the downfall of us all. BOOO HOOO, I don’t have a million dollar home and expensive cars, etc., etc. GET OFF YOUR LAZY BACKSIDE, and make something of yourself. I may not have a lot, but it is mine. Try to take it….you won’t like what happens……

    Report Post »  
  • jskol
    Posted on November 9, 2011 at 8:44am

    Cavuto is a jerk, if you do not get Fox Business, don’t. Beck is correct when he speaks about the press. Fox News has lost it’s purpose and soul. Can not tell the difference between Fox and CNN, Soon they will be like MSNBC. Roger Ailes, what happened to you?????? Sold out to the inside the beltway crowd.

    Report Post »  
  • cemerius
    Posted on November 9, 2011 at 8:21am

    Reading Writing and Arithmetic!!! Throw the social design propagandists OUT!!! What’s that “more money for the schools because the children are starving”? This BS needs to stop and Teacher Merit base pay needs to be mandated from ALL the 50 states!

    Report Post » cemerius  
    • ItsMsBtch2U
      Posted on November 14, 2011 at 3:53pm

      YES!!!!

      I home school in an alleged “AAA” school district…the final straw for me?…”your son didn’t answer the way I wanted him to”….[answer given when confronted about my son's answer to a question that asked for his opinion]

      Report Post »  
  • grudgywoof
    Posted on November 9, 2011 at 7:26am

    I love people like this guy…..he’s the 1% and he worked his rear end off to get there. This is America and there are plenty of countries you can go to were totalitarian government can repress you…….so go there and get out of my country so called 99%.

    Report Post » grudgywoof  
  • gmoneytx
    Posted on November 9, 2011 at 7:15am

    I kinda agree, but with a twist…

    The USA needs a President Transplant!

    Report Post » gmoneytx  
  • TennesseeVolunteer
    Posted on November 9, 2011 at 6:59am

    If you took a photo of teachers 50 years ago and compared it to public school teachers today, you would see a completely different group.
    If you compared the courses of 50 years ago, you would see all kinds of politically correct courses that teach nothing other than entitlement etc.
    If you compare the kinds of jobs 50 years ago compared to today, you would see millions of non profits that are on the public teat that accomplish almost nothing.
    50 years ago, being a single Mother was considered bad, now it is held up as desirable ….almost.
    50 years ago, how many more families went to Church every Sunday?
    50 years ago, there was no EPA, no Dept. of Energy, no Dept. of Uneducation, no Fannie Mae or Freddie Mac.

    Report Post »  
    • cemerius
      Posted on November 9, 2011 at 8:19am

      The progressive steam roll is in full affect! Dept of Energy and Dept of Education need to be KICKED out of the Federal level yesterday!

      Report Post » cemerius  
  • dnewton
    Posted on November 9, 2011 at 1:23am

    A sentiment transplant would not be trusted nor would it be believed until Obama was able to explain his loss of faith in the Keynesian stimulus. Some economist think that the Bush tax cut was a Keynesian-type stimulus. That would make the era of Keynesian stimulus even longer than Obama’s presidency, nearly a decade with little or no difference in the economy. The Fannie Mae, Freddie Mac debacle was also a stimulus and we have been inflating the education bubble for decades with no consistent response from the economy except to make tuition higher and performance lower. If Obama had a sentiment change, I would suspect that James Carville was giving advice based on inspiration after watching a rerun of “Mars Attacks.”

    Report Post »  
  • Founding Father2
    Posted on November 9, 2011 at 1:10am

    This guy endorsed Romney last Saturday. Now he is all over attacking Obama: http://www.americanparchment.com/archive/2011/nov/nov_6_2011.html

    That same day he attacked the Occupiers.

    Report Post »  
  • spreadcommonsensenot pc
    Posted on November 9, 2011 at 12:37am

    What-the…..sentiment transplant?
    obama is a kenyan transplant…..sentiment is out of his realm

    Report Post »  

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