{"id":31859,"date":"2011-05-19T02:40:21","date_gmt":"2011-05-19T02:40:21","guid":{"rendered":""},"modified":"2011-05-19T02:40:21","modified_gmt":"2011-05-19T02:40:21","slug":"hotel_ceo_blasts_mccarthyism_of_obama_s_class_warfare_rhetoric","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2011\/05\/19\/hotel_ceo_blasts_mccarthyism_of_obama_s_class_warfare_rhetoric\/","title":{"rendered":"Hotel CEO Blasts “McCarthyism” of Obama\u2019s Class Warfare Rhetoric"},"content":{"rendered":"
\n

RUSH: Squawk on the Street this morning, CNBC, cohost, the Street Sweetie, Erin Burnett interviewing Laurence Geller, the president, CEO of Strategic Hotels and Resorts, and the Street Sweetie said, ‘You own some of those hotels where you get those conferences, or you used to, in lovely, warm locations, whether it\u2019s Arizona, Mexico, Southern California. Has that business dried up?\u2019<\/p>\n

GELLER: The hyperbole and rhetoric was notched up to gigantic levels during this recent political debate season. The bookings of our meetings have cut down drastically. We\u2019ve lost an awful lot of major businesses, and it\u2019s not just those receiving government bailouts that are affected, but there\u2019s a general fear of criticism by people not only making the bookings but people attending these conferences so it\u2019s really got out of hand because the meetings and conference business is absolutely essentially to this nation. We lost 200,000 jobs last year. We thought if things went the same way we\u2019d lose 240,000. This year, since the hyperbole got ratcheted up to these levels, we\u2019re on track to lose 350, 400,000 jobs. The ripple through the economy is gigantic, lodging and tourism is the third largest retail business in the country.<\/p>\n

RUSH: Now, I know what some of you people are thinking. ‘Well, Rush, who goes to these conferences? It\u2019s the rich and the semi-rich and the people that can take time-out to go to Vegas or Mexico or Florida, wherever they\u2019re going to these five-star resorts.\u2019 Yeah, like the United Auto Workers and the AFL-CIO. But here\u2019s the thing, and I\u2019m going to say this until I\u2019m blue in the face. The people that do these meetings are stopping because they are afraid of criticism from the president of the United States. The president of the United States personally is shutting down a large part of the travel and leisure industry in this country, purely on the basis of class envy. But who is really getting hurt? Aside from the hotel owners, who works at hotels? Who works in the travel and leisure business? It\u2019s the very little guy, quote, unquote, that the Obama administration claims to stand for. The very little guy. If there are no guests arriving, if there are no conferences being held, if there\u2019s no food being prepared and consumed, if there are no hotel rooms being occupied, then there\u2019s no work for the maids and there\u2019s no work for the kitchen personnel, there\u2019s no work for any of the staff in the hotel. <\/p>\n

But we all get caught up here in the notion, ‘Well, these people, they shouldn\u2019t be partying in a recession, it\u2019s bad form.\u2019 I think it\u2019s just the opposite. I think it\u2019s inspirational. I think it can be motivational. Now, this is where my critics are going to say, ‘I can\u2019t believe how out of touch Rush is.\u2019 What needs to happen in this country is examples of economic activity flourishing like Daniel Henninger wrote about in the Wall Street Journal. We need to see evidence of the idea of a thriving, free market, of a thriving capitalist market. Instead, we see just the exact opposite. While all this is happening, Obama\u2019s out there saying he cares about health care, so his approval numbers are going up, while he and he alone — well, he\u2019s getting some help from Barney Frank and John Kerry, but the Democrat Party, let\u2019s say, are personally assaulting the travel and leisure business, except when they are engaging in the travel and leisure or their big supporters, the AFL-CIO are engaging. So the Street Sweetie then said, ‘Mr. Geller, do you believe that this is something coming out of the White House? Is it bipartisan on Capitol Hill? Who are the people that are pointing the fingers at your industry?\u2019<\/p>\n

GELLER: If you listen to the committee hearings, I think it\u2019s unfortunate, it\u2019s almost the lemming factor, one starts and then the other has to show they\u2019re more strident and stringent, and as you go around the committee, I don\u2019t know whether it\u2019s bipartisan or not. I can\u2019t say it\u2019s the White House or Congress. All I can say is the pernicious effect is pretty devastating. It\u2019s almost, a colleague of mine was complaining this week, it\u2019s almost McCarthyism directed against the hotel and travel industry. This is so silly, because it\u2019s the lubrication of business in these big meetings, these small meetings, convention communication, and the fear factor has got out of control. The fear of being criticized.<\/p>\n

RUSH: Not just the fear of being criticized, the fear of being targeted, Mr. Geller, not just the fear of being criticized. It\u2019s the fear of being targeted by a government official, be it Senator Kerry, be it Congressman Frank, or be it the president of the United States is out there saying, (doing Obama impression) ‘You\u2019re not going to go to Las Vegas, not going to fly on any corporate jet, not while I\u2019m here, not with this going on.\u2019 So it has a rippling negative effect throughout the economy. Coming up sometime this month in Charlotte, North Carolina, there\u2019s a golf tournament, a major PGA Tour event. It\u2019s always been known as the Wachovia Open, or whatever they called it, Wachovia, the bank. Well, as you know, Wachovia was purchased by Wells Fargo. They\u2019re going to do the tournament. The way golf tournaments work, is that the sponsor, in this case Wachovia, would put up all the prize money and other costs, the PGA would do their things, charity would get some of the proceeds from ticket sales and all of this, and it was a win-win for everybody. <\/p>\n

What\u2019s happened now is that the Wells Fargo CEO has said, ‘Well, we\u2019ll put three million into this this year, but we\u2019re not going to put our name on it. Since there is no Wachovia, can\u2019t be a Wachovia Open, we\u2019re not going to call it the Wells Fargo Open, so I don\u2019t know what they\u2019re going to call this thing, the Charlotte Open, I have no idea. I haven\u2019t kept up that much with it. All I know is that Wells Fargo doesn\u2019t want their name on this because of what happened to Northern Trust with the LA Open, which used to be the Nissan Open that Nissan pulled out. The PGA Tour is always running around trying to find new sponsors for things, because that\u2019s where the prize money comes from. That\u2019s who pays the pros when they win or finish in the money in these tournaments. I\u2019m sure they\u2019re going to reduce the partying and what goes on at these things anyway. You know, a friend of mine, an acquaintance of mine is a former chairman of AT&amp;T. You know, AT&amp;T sponsors what used to be the old Crosby, the AT&amp;T Pebble Beach National Pro-Am , and I once asked this guy, ‘What do you really get out of this? I don\u2019t know what it costs you, but I mean do you — because it says the AT&amp;T Pebble Beach — do you have a bunch of people signing up for AT&amp;T services from the public? How does this work? <\/p>\n

He said, ‘You\u2019re looking at it the wrong way. Our marketing budget every year is hundreds of millions. This thing cost us 20. This is where we entertain our customers; this is where we thank \u2019em; this is where we appreciate them for being part of what we do; this is where we wine and dine our best customers. We\u2019re not so much using this to generate new, although we do, but it\u2019s normal business.\u2019 Now that\u2019s not even going on. People are afraid to even thank their best customers. Now, believe me, he told me the total marketing budget for AT&amp;T when he was there, and the 20 million — maybe 15, the percentage of that whole marketing budget spent on that golf tournament is zilch, it\u2019s infinitesimal, but it\u2019s where they thank everybody, and let people come out, hobnob with the pros. Pebble Beach is a beautiful place to go, it\u2019s a week-long tournament, all these services are out there. It\u2019s a great time for people to go. <\/p>\n

But now that\u2019s under assault, thanking your customers, trying to keep your customers, trying to grow your customer base. That\u2019s what Mr. Geller is talking about. That\u2019s why a lot of these things take place. But today we\u2019re being told this is just a bunch of Roman excess, it\u2019s just a bunch of irresponsible people coming out there and having a giant party at a five-star place while the rest of the country is starving and can\u2019t find a house and can\u2019t find a job and all this sort of thing, and it\u2019s an all-out assault on capitalism, there is an all-out assault on free markets, but because Obama says he cares about health care, his approval numbers skyrocket right up while the private sector crumbles bit by bit in front of our eyes. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Springfield, Ohio, hi, Jeff. You\u2019re up next on Open Line Friday. Hi.<\/p>\n

CALLER: Rush, it\u2019s an honor. Hey, listen, your discussion about the damage to the travel and leisure, you\u2019re exactly right. I\u2019ll tell you something else: it actually started way back with the signing of Sarbanes-Oxley.<\/p>\n

RUSH: Oh, yeah.<\/p>\n

CALLER: I\u2019m not kidding you, you know, we would have a major event for our customers for exactly what you\u2019re talking about — to say, ‘Thank you for your business, your loyalty,\u2019 whatever — and we\u2019d fly \u2019em down on those company jets to a golf event, a PGA event. And we\u2019d put \u2019em up there for a couple nights, take them to the tournament. We could not give away badges to publicly traded large companies. If they wanted to come, they\u2019d have to take a vacation day (which nobody did). They\u2019d have to pay for their lodging. They\u2019d have to fly; they won\u2019t fly on our jet. They\u2019d have to fly on a regular airline. It was ridiculous. We would bring customers to our manufacturing facilities or our corporate headquarters, you know, to see how the products are made and what they\u2019re buying to meet our executives. And they would literally want us to invoice for any food and any expenses we picked up on their behalf.<\/p>\n

RUSH: I know. I know. That\u2019s all because of Sarbanes-Oxley, which… What gave us Sarbanes-Oxley? Do you remember, Mr. Snerdley? (interruption) That\u2019s right. Enron gave us Sarbanes-Oxley. Fannie Mae and Freddie Mac, Barney Frank, Chris Dodd, are Enron times a hundred, if not more. That\u2019s a great call, Jeff in Springfield, Ohio. Thanks much.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Squawk on the Street this morning, CNBC, cohost, the Street Sweetie, Erin Burnett interviewing Laurence Geller, the president, CEO of Strategic Hotels and Resorts, and the Street Sweetie said, ‘You own some of those hotels where you get those conferences, or you used to, in lovely, warm locations, whether it\u2019s Arizona, Mexico, Southern California. 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