'Things Happen': Larry Kudlow Shrugs Off Threat of Sears Bankruptcy
*By Jim Roberts*
One of the nation’s oldest and most iconic retailers, Sears, is on the brink of bankruptcy, and President Trump’s chief economic adviser, Larry Kudlow, has two words: “Things happen.”
In a brief interview Q&A Friday with Cheddar’s J.D. Durkin on the White House lawn, Kudlow seemed to shrug at the company’s dire financial straits, suggesting that it was the natural course of business evolution.
“Sears has been in trouble for a while,” he said. “Things happen; they change. New companies come in and take out the older companies.”
He then went on to cite the work of 20th century economist, Joseph Schumpeter, who developed the theory known as “gales of creative destruction.” In Schumpeter's vision, entrepreneurial innovation was a disruptive force that [sustained economic growth](https://en.wikipedia.org/wiki/Creative_destruction), even though it led to the collapse of established companies.
Kudlow joked in the interview, “I commune with him,” referring to the economist who died in 1950. “In fact, I spoke with him just a couple of weeks ago to make sure that we were doing it right. And he heartily approves.”
When Kudlow was first asked about Sears, he said he preferred to focus on the macro-economy. “Consumer spending and retails sales are doing terrific,” he said. “Business investments are doing terrific. Wages, real disposable income, fatter paychecks, doing just terrific. That’s the stuff that I want to focus on.”
The company, which owns the Sears and Kmart brands, faces a Monday deadline to pay back [$134 million](https://www.cnn.com/2018/10/12/business/sears-bankruptcy/index.html) in debt. In the last five days, the company’s stock has fallen 50 percent to 35 cents a share.
Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke
Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
