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ERIC SCHATZKER, BLOOMBERG TV: Everybody knows by now that you wrote to the President back in November. Your letter was widely circulated and in it, I think it’s fair to say, Lee, that you accused him of polarizing the nation by fomenting what you described as “class warfare between the haves and the have nots.” What I’d like to know, are you any more encouraged today by the tone of debate in American politics than you were back then?

LEON COOPERMAN, CEO, OMEGA ADVISORS: Not really. Not really. Let me just say this. I’m probably the most apolitical guy you know. I’ve not been involved in politics. Most of my financial resources, that I give back to the society, are given through non-profits - you know, inner city programs, health programs, etcetera - and I was motivated to write mainly because of the rhetoric - his dialog. You know, if the President had simply said that we’re in a very difficult economic environment and all of us have to do more, particularly those that can afford to do more, I never would have written that because I agree with that. I’m prepared to pay more in taxes, but it’s the class warfare that he’s invoked that really set me off - the attacking of wealthy people, the attacking of the energy industry. Very interesting, after the debt ceiling was raised he also threw in the private aviation industry for a source of attack. Now, I’ll just tell you that the manufacturers of aircraft, I think next to motion pictures, are one of the largest exporters of goods in the country. Their labor force is largely unionized, which is his constituency. Warren Buffett, who he’s a big fan of, has an airplane which he calls “The Indispensable,” so why would you want to attack an industry that creates a lot of employment for your constituency.

So, it really - I can understand the problems he’s facing. I just don’t understand the dialog. He’s got to be inclusive, bring people together. Maybe as we approach the election he’ll soften his dialog, but I think he’s revealed himself for what he is. He’s anti-business. He’s anti- wealth, and it’s a different philosophical viewpoint. I came across a quote that - with your permission - I’ve got to put on my spectacles - I’m - I won’t say blind, but I can’t see much without them, but basically - I’d like to read you something which I think very much summarizes the essence of my letter but in a much more articulate manner and it says, “You cannot help the poor by destroying the rich. You cannot strengthen the weak by weakening the strong. You cannot bring about prosperity by discouraging thrift. You cannot lift a wage earner up by pulling the wage payer down. You cannot further the brotherhood of man by inciting class hatred. You cannot build character and courage by taking away peoples’ initiative and independence. You cannot help people permanently by doing for them what they could and should do for themselves.”

And, this is the essence of my view, that I think the President was heading down a non-productive path and this class warfare never has a good end to it and so this is what incited me to write. I’ve heard from so many people around the world. I’ve gotten easily 500 emails and/or letters - 99.9% supportive. I’ve not heard from anybody in the administration or certainly the President. That doesn’t bother me. He’s busy doing other things, but I think we’re heading for a national referendum in this country and it’s very complex because you know almost half the country is on some form of public assistance and they probably are supportive of the President’s programs and the other half wants it the way it used to be. You know, reward for individual initiative, a meritocracy, etcetera, and I’m not a politician. I’m not politically oriented. I’m pretty sour on the whole political system but it’s probably the best one out there but, anyway, that’s kind of how I see things. I haven’t changed my view and I don’t think the President has changed his view.

ERIK SCHATZKER: Lee, when you say we’re headed for a national referendum, a referendum on exactly what?

COOPERMAN: Well, we’re going to head - whether we’re heading the way of Europe, a socialist state, or whether we’re going to be like America was where, like I said, there’s a reward for initial initiative, exceptionalism - I don’t want to sound like I’m waving a flag, but I am waving a flag. You know, I’m a perfect example. I had a very, very, very heavy dose of luck but I started in the tenements in the South Bronx, had a public school education. I went to public school. I went to public high school. I went to public college. I started my career at Goldman Sachs after getting an MBA at Columbia and I started with virtually nothing in the bank, actually negative net worth, and I became very wealthy, very successful. I have this moral imperative of giving back to the system, which I think most people who have achieved great wealth have that view. I don’t think I’m exceptional or different than anybody else and so I’m for the old way. Work hard, the harder you work the luckier you get, etcetera, etcetera. And, I think the President seems to be of a different orientation.

ERIK SCHATZKER: But -

COOPERMAN: He creates this impression -

ERIK SCHATZKER: So, as a self -

COOPERMAN: He creates this impression.

ERIK SCHATZKER: I was just going to say, Lee, as a self- made man - as the prototypical, if you will, self-made made - you just described your career history, you couldn’t be more self made. Do you agree, though, with some of the people who side with the President that the conditions in America today don’t allow for the same kind of social mobility that you enjoyed as a young man?

COOPERMAN: We have to correct that, but do you correct that by attacking the wealthy, or taxing the wealthy out of existence. And he basically makes the point - I find humorous. Nobody uses numbers. You know, I’m a numbers person. Nobody uses numbers. He says that the wealthy have to pay their fair share. What is their fair share? I have no problem with that. I’m for progressive income tax structure. What is the fair share? You know, right now the max-end tax at the federal level is 35% - it’s heading to, I think, 3.96%. You have a payroll tax. You have a Social Security tax. You have state income taxes, and then whatever you hold onto at the end of the road, you have a 55% inheritance tax. So, the notion that wealthy don’t pay their taxes is ridiculous.

Link to remainder of the transcript:

http://www.bloomberg.com/news/2012-02-22/cooperman-shuns-treasuries-favors-stocks-transcript-.html

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