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tv   The Kudlow Report  CNBC  November 8, 2013 7:00pm-8:01pm EST

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i'm dedicating to those who served proudly in the pacific in world war ii. to the brave men and women who put their lives on the line every day, there's always a bull market see you monday! so much for a shutdown slowdown. job growth posting a surprising strong jump in october, signaling an expanding economy. but with unemployment at 7.3% and inflation at less than 1%, i really don't believe that the fed is going to rein in bond buying for many, many months. but we'll debate that proposition later in the show. plus, now he's sorry? five weeks into the obama care debacle and in an exclusive nbc interview yesterday, the president had this message for the millions who received insurance plan pink slips. was he sincere?
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you be the judge. >> i am sorry that they are finding themselves in this situation based on assurances they got from me. >> today, president obama changed the subject from obama care to the economy. interestingly, he had a good section on corporate tax reform. you know what? i love it. but will he really push for it? and is the republican party in better shape than you think? following chris christie's commanding blue state victory, a series of polls shows the gop could be poised for more big wins in 2014. all that and more coming up on "the kudlow report" beginning right now. good evening, everyone. i'm larry kudlow. this is "the kudlow report." we are live here, 7:00 p.m. eastern, 4:00 p.m. pacific. first up tonight, president obama talking up the economy in new orleans today in an attempt, i think, to shift the focus away
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from his administration's botched obama care rollout. nbc's kristen welker joins us now. from the white house with all the details. kristen, thank you very much. good evening. what did you learn? >> reporter: larry, i think you hit it right on the head. the president trying to change the conversation today away from health care back to the economy. he was speaking at the port of new orleans, one of the biggest ports in the world. he talked about the importance of investing in infrastructure projects as a way to create jobs, talked about the importance of fixing roads, dredging ports and he also touted those job numbers that you were talking about at the top of your show, the fact that 204,000 jobs were created during the month of october, despite the government shutdown. but of course he couldn't help but to veer toward the subject of health care, the rocky rollout and particularly the glitches that continue to plague the health care website. take a listen to what he had to say. >> i promise you, nobody's been
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more frustrated -- i wanted to go in and fix it myself. but i don't write code. >> reporter: so we can also tell you that president obama not only complained about the glitches over his health care website but as you know, that promise he made to americans, if you like your health care plan, you can keep your plan, as we've been discussing, he apologized yesterday during that exclusive interview with chuck todd. now the challenge for the white house is to figure out a fix. president obama saying that he wants to come up with some type of fix. we understand it would be an administrative fix. i've been talking to folks here at the white house on capitol hill. we know there were some meetings back and forth on that point today. they haven't figured out how they're going to make that happen. but we know the white house would like to allow folks who like their health care plans to keep it for at least a year. that's what the goal is right now. that's what they're aiming for. but as you know, the criticism continues to mount, not only
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from republicans but also from democrats, a lot of them who are facing tough reelection battles, urging the white house, the administration to extend the enrollment deadline for a year. one of those, senator mary landrieu from louisiana. she traveled with president obama back to her home state today. she didn't attend the event. but she is facing a tough reelection battles. >> kristen, let me ask you this, something you just said. i don't think i've heard this before. you're saying that president obama and the white house will accept a one-year delay on these insurance contracts? that would be a major concession because that's in some of the bills -- democratic bills up on the hill. in fact, that's in gene shahe shaheen's bill and may be in mary landrieu's part. you think he'll take a delay -- >> reporter: not a delay on the insurance contracts but a way to somehow fix that loophole where those millions of americans who are getting letters saying that their plans are going to have to
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shift to a new plan, that they will be able to keep their old plans. and at the very least, not have their premiums increased. because as you know, that's where a lot of the frustration and anger is coming from when you talk to average americans. they say, they don't want to pay more for service that is they don't need. it wouldn't be to delay the enrollment or anything like that. but rather to allow those millions of americans who are frustrated right now to keep their plans or at least not see their premiums increase. >> great, many thanks. nbc's kristen welker, we appreciate it. it appears the government shutdown didn't really slow our economic recovery. labor department announcing today u.s. payrolls jumped by 204,000 last job, far above wall street expectations. and the department also revised the prior two months about 60,000 higher. my quick take? more americans are working. that is very good news. however, even 200,000 new jobs a month is still going to take about five years to get the u.s.
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back to prerecession unemployment levels, at least according to some analysis. so it's a long steep climb. joining us to talk about it, former chief economist jared bernstein and elaine chow. this is a pretty good report, didn't you think? >> i think we're always glad when there's positive job growth and creation numbers. what is really distressing is that, number one, the unemployment rate ticked upward from 7.2% to 7.3%. and the labor participation rate dropped .4%. this means that conditions are still softer than what we would like and that a lot of workers are still very discouraged and they've left the workforce. >> but, you know, let me make one point. i know a lot of republicans are making the point you made, the participation rate. you are factually absolutely
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right. let me go to jared on this. jared, i'm going to defend the numbers because the participation rate comes out of the household survey. and the household survey counted the furloughs differently. and i think it was completely screwed up. fell by other 700,000. doesn't make any sense at all. 450,000 were the furlough issue. i mean, elaine is right about the participation rate. but for this particular month, jared, i wouldn't even look at the household numbers. the payroll numbers advance really tells the story. how about that? i'm defending your position. >> you're both right. and the key number you said there, larry, was over 700,000. i don't think anyone and i include secretary chao here believes the labor force dropped by over 700,000 last month. that's anomalous. i looked at the nonseasonally adjusted data. i think four times has the labor
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force fallen in october in the nsa data going all the way back to 1960. that was very anomalous. should be discounted the way you said. but secretary chao is right. it has been a declining trend and that is a source of concern. >> i think the labor participation rate, regardless when you're talking about 72.8% 63.4%, this is very low. basically the years 2001 to 2009, the labor participation rate was about 67%. over a workforce of about 150 million people, those four percentage points mean a great deal. >> for people at home watching, nonfarm payrolls up 204,000. private payrolls up 212,000. talking about the labor participation rate, fair enough. i agree that's been a flaw in
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the story. >> it's very low, regardless of which number you're talking about. >> the question is what to do about it. what to do about it. i want to hear both of you on this. this is a vexing issue. and i don't think the administration has really addressed this issue. maybe jason ferman will. but they haven't yet. secretary, what would you do to get the participation rate up? >> you are exactly right in talking about why labor -- why the labor participation rate is so low and why job creation hasn't occurred. we've had one of the most painful recessions we've seen in recent years. generally in the past when there's been a steep decline in our economy, the bounceback has been very sharp. that hasn't occurred in this cycle. there are real reasons for it. i think the government is regulating much too much. it's imposing a great deal of uncertainty, new taxes and also new regulations on struggling businesses. 66% of the net new jobs being created these days are being
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created by small businesses. if they're being faced with the specter of increased taxes, greater uncertainty, they're going to hold back. that's what we're seeing. >> jared, you're not all that enthralled with the labor market story either, are you? >> i'm more thralled than secretary chao is. but i have some issues as well. it's very incorrect for the secretary to say that job creation hasn't happened yet. of course it's happened. it hasn't happened quickly enough. and by the way, i consider 204,000 to be a pretty decent pop in the payrolls for october. that's a big upside surprise. so let's not be too critical of the job creation we've seen thus far. but you're both right that it has to happen more quickly. now, my view is that any sort of taxing and regulation won't help you. what we need to do is boost demand and right now fiscal drag is what's hurting the job market. that's just not my keynesian
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view. >> the fed is injecting $85 billion every month -- >> that keeps interest rates low. >> and clearly that's not helping -- it's not helping as much as it should. >> that keeps the interest rate low. that sets the table. we have a lot of capital out there and we have low interest rates. but absent more on the demand side, it's like the table's set but nobody's coming into the restaurant. >> let me go back to elaine's point about smaller businesses and the threats from taxes and regulations. you may not agree, but if you look at this thing, businesses -- they can be large businesses or small businesses. business is very profitable. and yet it's stitting on its hands, not making the five to ten-year commitments for new infrastructure, new factories, new warehouses. this is something alan greenspan brought to my attention two weeks ago. it's that business investment missing from this recovery. >> agreed.
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>> that would create the jobs and the participation rate and the employment population -- >> if the after-tax profits are as strong as you say they are -- and you're absolutely right -- how can you blame the tax system for that? it's not a tax problem. it's a demand-side problem. there's not enough return on investment kinds of projects out there to bring the capital off the sidelines. >> i don't know, though. elaine, money is cheap. interest rates are rock bottom. these companies have cash, they can borrow more cash. labor is cheap. i hate to say that. but the wage rates are very low in this expansion. elaine, i would say normally with cheap labor and cheap money, this would be an ideal time for businesses to make longer-term investments. what's going on here? >> the employer community does not have confidence going forward. they're seeing all these uncertain signs in the immediate future and they're not investing because they don't have the confidence. >> that's what greenspan said.
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he said there are too many issues out there, whether they're entitlements and deficits and taxes and regulations. he feared that that was holding business back. anyway, more to be revealed. jobs did go up this past month and the last two month were upwardly revised. jared bernstein, thank you. elaine chao, thank you. coming up, president obama's non-apology apology. the pink slip insurance cancellations are growing larger every day. and the question is, what's the president to do about this catastrophic obama care problem? we'll discuss it with our free market friday panel. but first up, the dow rallying to an all-time high. gold tanks. perfect pro-growth signal. nonetheless, unemployment still high. the inflation rate virtually nil. i expect the empress of doves will not slow down bond-buying purchases for many months to come. don't worry about the federal reserve. and the best path to prosperity
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is through free market capitalism. let's get those businesses cranking up. the more they invest, the more jobs we'll create. i'm kudlow. we'll be right back. my mantra? family first. but with less energy, moodiness, and a low sex drive, i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk
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welcome back to "the kudlow report." i'm seema mody with this market wrap. today's upbeat jobs report sent stocks soaring.
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the dow closing at a brand-new record high adding 168 points. the nasdaq up 62. and the s&p 500 gaining 24. take a look at the u.s. dollar hitting a two-month high. same goes for the ten-year yield closing at 2.75%. but gold battered by tapering fears. hitting the lowest level in three weeks. gold settled down nearly 2%. >> seema mody, thank you very much. great combination, rising stocks, falling gold, i kind of love that. i think today's strong job numbers is a case of good news actually meaning good news. good news is good for america. frankly i'm not worried about the fed at all. but others may disagree. let's turn to our investors. we welcome back phil orlando, larry glazer and andrew busch. andy busch, let me begin with becay good news was good news. unemployment is high.
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inflation is nil. and i don't see the fed taking any major actions for many months to come. what's your take on that? >> yeah, i think you're right on that. the market is ebbing and flowing on when they think the tapering will occur. but the number today was really good. along with the increase in the previous months, this is -- i hate to use this word but it really is a goldilocks situation. 200,000 jobs, great. we saw interest rates move up, which isn't necessarily the worst thing. but stocks rallied at the same time. and, larry, as you know, that's the way things used to work with the markets. >> right. >> it shows economic growth underneath that. >> absolutely! absolutely! >> 2.8% gdp this week is a good story, too. >> not one person in 1,000 except for you, andy busch, and your anchor here, your humble reporter, understands why raising interest rates can be a
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very good thing. i want to go to that. i'm going to go to larry glazer. you take a look at the tables today. the ten-year bond which closed at 2.75% was up 15 basis points. then i looked at the real interest rate, the so-called inflation index t.i.p.s. rate. that went up by an identical amount, 15 basis points. which was not an inflation driven issue. this was a real yield rising because the real economy and real growth looks like it's getting better as andy busch so brilliantly put it. the gdp was stronger yesterday, but jobs are stronger today. so i don't worry about it. i think it's fine, it's healthy. in the old days, you used to have 3%, 4% interest rates. what do you think? >> i'm not worried about the fed at all. the market's going to do the work for the fed as we saw today. when i saw that jobs data this morning, i was so excited. i was so excited not because it was great data, better than we expected, perhaps.
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i was excited because maybe, just maybe the fed could look at that data and janet yellen could stand up and so, we don't need it. enough is enough. this economy can stand on its own two feet. maybe we look at the consumer sentiment data and say the sentiment would be better if the fed wasn't tapering. maybe this is where it's leading and that joy left my system as the day went on and the reality set in that that's not going to happen. but you know what? there's a lot of positives. they could keep the market going. the least of which is sentiment is awesome, right, and fund flows are awesome. but i would worry about some of the negatives as well. it's not too early to look to 2014, look at some of the cautionary tales. >> but you know what? i think the whole world, phil orlando, wants to invest in the united states. i think the capital flows are coming here. when i see the gold price going down and when i see the dollar going up and when i see real interest rates going up, i say this is good, this is a very
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good combination. this is, pardon the phrase, extremely bullish. what's your take? >> we agree, larry. if you look at the progression of gross domestic product over the last three or four quarters, fourth quarter a year ago, we were marginal, 1 .%. we printed a number yesterday for the third quarter, 2.8%. we think those numbers are going to have a three handle looking out to next year. stocks up 165% here over the last 4 1/2 years, are not done. all we've done is take the multiple on stocks from 11 times to 15 times earnings, given the benign inflation and interest rate environment that we have right now, we could very easily see that multiple continue to grind up to about 18 times earnings over the next couple of years. so i think investors are absolutely right to be looking at u.s. stocks longer term. >> andy busch, i don't want to obsess about the fed but people in the market do. i don't think you're going to have what i would call tight
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money, where the short-term rate is going up and the fed taking cash out of the economy. i don't think, andy, you're going to have tight money until late 2016 or 2017. i think that's what this fed -- this fed wants to see about five or six straight months of 200,000 jobs per month, andy busch. i think they're going to wait and wait and wait. what's your take on this? everyone obsesses the fed is going to come in and burst the bubble. i don't see the bubble but i'm not worried about the fed. >> yeah, i would say you're right on that. i think certainly with janet yellen at the head of the fed, you're not going to have any aggressive tapering. that's off the table. but i would say this. this is what's interesting about the fed. clearly quantitative easing is not working as much as they thought it would, on our third round here. it really gets at the heart of what these job numbers are telling you. they're still at pretty low levels. why aren't we creating jobs? that's a really important point to get at.
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unfortunately jared bernstein didn't really get to this. i think it's important that the secretary did. that's what i want to get at. small businesses are the -- small business growing rapidly, these are the job creators in the united states. between 1978 and 2005, they created about 100% of the new jobs. so if you want to look at job creation, help these guys and you were dead on when you said reduce regulation. help these entrepreneurs create more jobs. >> there's not enough confidence. larry glazer, investment advice, friday night, what do you want to do here? >> first of all, if it was so good, where would the capital investment be? you'd see it in there. with the market up roughly 20%, you'd expect to see things full throttle. given where we are, one thing i would avoid, homebuilders, you're going to see a lot of supply hit the market in the spring. i'm very concerned about that.
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the higher interest rate scenario, however you get there is probably not a good thing for that market. there's a lot of hot money. i would be incredibly cautious on the momentum names. the quality of some of the names you're seeing going through a correction on a technical level right now, the teslas, facebooks, those companies look very vulnerable. it is a lot of ipo supply. that's cautionary. plenty good areas, industrial s industrialses industrialsesindustrialse, cyclicals. very good for multinationals. >> phil orlando, same thing from you. you probably saw it, the story in "the wall street journal," the cyclicals, industrials, raw material commodities, tech and so-called consumer discretionary, consumer cyclicals, all of them are surprising on the upside for profits in the third quarter by a large amount. and secondly, their stock market performance has been terrific. now, do you stay with those cyclicals? that infers that economic growth in the usa and around the world
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is going to get better. do you buy that and do you stay with the cyclicals? >> absolutely. we're right there, larry. that's a call we made back in the spring. sell the defensives, load up on the cyclicals, based upon the improvement in the domestic economy, back half of this year and into next year, europe's coming out of recession, abenomics is working in japan. the demand for u.s. multinationals selling their products and services abroad are going to have a very good year next year. that suggests you've got to stay long the cyclicals here. >> very optimistic panel on a friday night. phil orlando, larry glazer and andy busch, thank you, gentlemen. up next, the biggest storm to ever make landfall hitting the philippines. we'll get an update on the typhoon next on "the kudlow report." vo: two years of grad school. 20 years with the company. thousands of presentations.
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the most powerful storm to ever make landfall hit the philippines today. seema mody joins us now with all the details. good evening. >> good evening, larry. typhoon haiyan has weakened considerably but it did plenty of damage at its height. the typhoon killed at least four people after making landfall on the island of samar in the central philippines and 750,000 people in the storm's path evacuated. perhaps the only silver lining is that damage was limited because the typhoon blew through the philippines so quickly.
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but some parts of the country remain cut off from communication. it's believed that the death toll will rise as reports come in from those hard-hit areas. while haiyan is no longer classified as a super typhoon, the system is still generated winds of about 145 miles per hour. that's equivalent to a category 4 hurricane. typhoon haiyan is now on a path to denong, a major resort destination an vietnam's coast. the storm expected to make landfall there on sunday morning u.s. time. >> more pain ahead. >> could be. >> seema mody, thank you very much. up next on "kudlow," president obama hitting the road to sell his so-called economic plan. i reckon he wants to change the subject from obama care to rising jobs. we'll be right back to debate the whole proposition.
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welcome back to "the kudlow report." president obama in new orleans today steering attention toward the american economy. but what everyone is still talking about is the obama interview conducted by nbc news chief white house correspondent chuck todd where the president gave a kind of non-apology apology for the failures of obama care, mainly the millions of americans losing their
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current insurance plans thanks to the new law. >> i am sorry that they are finding themselves in this situation based on assurances they got from me. we've got to work hard to make sure that they know we hear them and that we're going to do everything we can to deal with folks who find themselves in a tough position as a consequence of this. >> weighing in on all this, cnbc's john harwood joins us from washington, d.c. john, good evening. okay, so i want to ask you, did he make an apology? that's my first question. and my second question related to the first question, what exactly was he telling us? i saw that piece so many times last night. what's he trying to say? >> it's a good question, larry. it was a sort of apology. but it was an apology that was not really responsive to the issue at hand. he said he was sorry that people were in a position because of assurances from him. but really no consumer did
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anything because of obama's assurances, maybe some legislators did when they voted for the law. but what has caused people to have their plans canceled is the fundamental purpose of the law itself, the law aimed on purpose to shake up the individual market by raising standards and pulling in people who may have had plans that were inexpensive maybe because they were younger and affluent and healthy because they need those people in the exchanges in order to make it work for other people to get benefits under the law. >> chiefly, the young healthies are supposed to finance the older sick people. >> yes. >> you know, the democrats in the senate particularly are in a tizzy about all this. they're worried about reelection. and the public at large is sort of up in arms. the polls are running badly against the president. so i guess my question is, what do you think he's going to do?
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what can he do? >> i don't think there's much he can do. larry, i've been trying all day to talk to policy people in the white house, on the hill, democrat and republican in industry. and nobody can quite figure out what the president could actually do. and i think you really put your finger on it a moment ago when you talked about democrats in a tizzy on the hill. i think that was the real audience for the president's interview. he was trying to calm down some of those democrats and say, look, i'm trying to address this anger that you're hearing from your constituents. because the thing is, when he says he's going to fix the situation of people whose rates have gone up, well, how do you do that? one, you could give them some subsidies. that makes the law more expensive. if you don't give them subsidies, you can say, well, somehow through regulation and conversations with the insurance industry, we can let you keep those less expensive, more barebones plans than the ones that obama care says are sufficient. the problem is if you do that,
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then you don't have the money in the exchanges to pay for the older, sicker people who are coming in who maybe had a pre-existing condition. >> exactly. >> it doesn't really add up. larry, we're at the 25th anniversary of when george h.w. bush got elected president. i remember when he once criticized ronald reagan by saying it's voodoo economics. i think the idea of a fix for these people is voodoo health care policy. we'll see what they come up with. they haven't been willing or able to give an answer just yet. >> real quickly, since you have been making the phone calls and stuff today, i'm not hearing anybody in the white house -- i did not hear sebelius today indicate sympathy for a delay of any kind, whether it's a delay of penalties or a delay of the enrollment. and that's what you've got. you've got several bills, as you well know, from democratic senators that would one way or another delay. i don't think the white house wants delay, in which case, i don't know what the hell they're going to do. >> i think delay is absolutely
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positively the last refuge. i don't think they want to do it. i think they'll do whatever they can to avoid delay because we're so far down the road. the insurance regulators in the states have gone ahead with these plans in some of the states that run their own exchanges. it would be extremely difficult and chaotic for the insurance market to delay now. so i think the administration really has to put all the lead they've got on the target to try to fix these exchanges, make it work for january. >> thank you, john hoar harwood, we appreciate it very much. here with me now, emily us theman, jennifer stefano and jim pethokoukis. emily, i have to go to you here. the heat is on obama like never before. it's coming from every direction. as john harwood and i were trying to parse through it, what is he going to do here? what is he going to do?
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>> i think he made a lot of good points talking about the audience for who obama was speaking to. there are a lot of people in congress hearing from their constituents. that's a very emotional issue for a lot of people. when they're getting letters that their plans are canceled, they're not sure what are the options -- no one can argue with the fact that going into the exchange has been difficult due to the website problems. that's very clear. and hopefully will become much more accessible by the end of the month. >> i'm beyond that. they're going to find some 9-year-old nephews to fix the computer glitches. that's the only people that can solve computer issues, my 9-year-old nephews. in particular, the political heat you must know is m cooing from the cancellations. and there's no let-up in this, unless they change the grandfather laws and the rules and the regulations and delay it, you're going to go all the way through 2014. once you get through the individual market which could
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hit, i don't know, up to 8 million, you're going to hit the employer-driven market. that's the problem he's got. has he solved that? >> he needs to be working with every party, every possible good idea needs to be on the table. the fact that we're starting to see bills coming from both sides of the aisle is a good thing. this has been a very difficult situation to be working on. this is a big change. any big change is always going to have -- it's always going to be fixes as you go on with it. and there's been total gridlock in congress when it's been going through. i think the fact that we're starting to work together toward changes is a good thing. >> jim pethokoukis, similar question. you've got a lot of democratic senate bills in the hopper. senator shaheen of new hampshire, senator landrieu of louisiana, et cetera, joe manchin has another one from west virginia. they all delay one way or another -- either they delay the grandfathering process with the insurance companies or they delay the penalties or they delay the enrollment date.
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so far the white house is stonewalling. sebelius did it again today. they won't have any part of it. is that and will that break up? >> the economics is barely hanging together if everything went fine. if you start delaying things and start messing with those pools, the president is going to need more money and he's not going to get it. the real problem is that -- they promised it wasn't going to be a big change. the president promised there wasn't going to be a big change for millions of americans and there is. and that's a loss of credibility. bring all the guys from google and oracle, you can't put that credibility back together. that's what threatens his agenda. >> the wrong people are going to enroll, meaning the elderly and the sick and the preconditions and all that. and the younger people are not going to enroll. and if you give it all a year, that means the cash flow that the insurance companies need and the cash flow that obama care needs is not going to be there
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to finance this. >> listen, already i think it was highly unlikely that they were going to get the amount of young people, the young healthies, young invincibles to get into this program because of the mandate. but i think they felt -- between obama care's aura and the organizing, they were going to get these young people because he has a special bond with young people. special bond versus the money, guess what's going to win out? the money. >> that's actually not what we're seeing. the states that are releasing their numbers of who is signing up and going to the website, it is consistently about a third people that are 18 to 29. even when you poll age group by age group, it has the highest favorability of any -- >> emily, i've heard different numbers. there was a big "wall street journal" piece on that it was the 50 and over that were the big signatures. >> emily can get her share. but if you don't get a total number of people into it, you
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still have a problem. >> jennifer, let me go to you. what are republicans going to do? sometimes in politics and elsewhere, if your enemy wants to hang himself, you give him plenty of rope. are they going to get into this act, too? >> let them hang themselves -- i think the right thing to do is for a number of years republicans and people like me have been out talking about the policy aspect. unfortunately sometimes too much we talk in the aggregate. what you have now is obama care is law. and now the public policy debate is over and the real-life situation is coming home to roost. what i think the most important thing for those of us out in the public policy debate and for the republicans to do is allow people to speak for themselves. let the people who are finding failure under this law who are losing their insurance, even people with pre-existing conditions like in california who are going onto the exchange, signing up only to find the best hospitals and the best specialists are not allowed under their plans. what you're seeing is even the
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so-called promises that are coming true are actually hurting people because they can't get into the best health care available. >> i understand. but real quick, fred upton in the house, chairman of the energy and commerce committee, has co-sponsored the bill senator ron johnson in the senate where if you like your insurance you can keep it. there's a democratic version by mary landrieu. in your opinion, could that bill pass and what would obama do? would he sign it? >> fundamentally, i don't think because the problem would not be solved. most of them know that. these are bills put forth to give some kind of idea. but the fact is that obama care has completely rearranged the way health care is going to be delivered in this country. people are already suffering under it and it's not been fully implemented and affected. >> we'll see. emily, jennifer and jimmy, don't go anyplace. up next on "kudlow," we'll
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get you updated on some of the biggest headlines of the day, including urban legend about william shatner debunked on cnbc this morning. seema mody will explain it all next up. americans take care of business. they always have. they always will. that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach.
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welcome back to "the kudlow report." i'm seema mody with this news alert. we wanted to start with a look at the homebuilders because this sector was hit hard today. lennar, pulte, toll brothers just some of the examples. people got worried about fed tapering and the yield on the ten-year shot up instantly. the hoshares of priceline up bi today after a strong earnings report last night. but the interesting thing we found out, william shatner does not have $600 million of price lin stock. the ceo shooting down that urban legend on cnbc today. shatner did get paid in company stock but sold it for less than the $1,000 a share it trades at now. news out of iran, new hopes a deal could be reached to slow down iran its efforts to build a nuclear weapon. in return, sanctions against iran could be lifted getting iranian oil onto the world
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market. if that happens, experts say we can expect a big drop in the price of oil. today oil settling around $94 a barrel. larry? >> interesting point, with or without iran, it's interesting that over the last, i don't know, six or so months, gasoline prices in the usa, nationwide, basically have gone from just under $4 to something around $3 a gallon. that's a huge tax cut for the economy. >> absolutely, especially ahead of the holiday shopping season. >> seema mody, thank you very much. up next on "kudlow," was chris christie's commanding blue state victory an anomaly or are more big gop wins coming? the highly respected pew research center says the party is in better shape than you think. and it's because of pro-growth policies like what texas governor rick perry is promoting in this new ad. >> today, almost 2 million people will need a job just to get us back to where we were before the obama administration. many are so discouraged, they
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aren't even looking. they go uncounted. but places like nevada, texas and florida are leading the way in job growth. why? pro-growth and pro-free enterprise policies are putting people to work, something we need more of in washington. th
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republicans took a big political hit for the government shutdown, no question. but the gop just might be in better shape than you think. this from andrew kohut showing
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when it comes to handling the economy, republicans are winning big-time. a majority favor the gop over democrats 44-37. and among independents who really decide elections, the gop comes out ahead with a stunning 46-30 lead over the democrats, stunning. our panel is back. i had no idea when i saw these numbers. and i don't know what the gop has done to deserve this. but those are big numbers. >> they are but i don't think we get to those once we get to elections. the republicans still really are feeling so much of the turmoil that brought us to the government shutdown of feeling being drawn from the far right. when you look at the political committees, they're setting up super pacs to try to combat primaries from the far right. business republicans had very little say when it came to the
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government shutdown. >> civil wars. >> total civil wars. >> i was doing this with hugh hewitt last night on the show. if the so-called establishment republicans go after the tea party, i think they're nuts. they're absolutely nuts. among other things, the gop, like the democrats, need to be a big tent. so i was spawned politically l ronald reagan who was a big tent guy. you're one of the tea party -- are you going to war with the establishment? >> no, i'm going to war with people who are against freedom. and generally i think this is -- we are so not used to seeing on the left this vigorous intellectual debate that we all think it's a bad thing. actually i think it's a good thing. you want to see within a party vigorous intellectual disagreement and an ability to move ideas forward. what i think the republicans would do and be smart is embrace those people. we can learn from the left that they embrace their natural allies. embrace the heart and the movement and begin to utilize
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that to advance things forward. i think frankly i do agree that the numbers of the republicans being up among independents on the economy and in general, they were that way before the election. >> jimmy, talk to me about these economic numbers. does the republican party deserve it in your opinion? are they going to stay on top of it? are they going to have a growth message in 2014? how do you see it? >> as just mentioned, romney did great. he did great in the exit polls in the election. they trusted him on the economy and his managerial abilities. they just didn't like him. they felt like he didn't understand them. those sorts of issues, i think obama outscored him by 80 to 20. if there was a high-profile republican who had a common touch and ability to talk to the common person, really had a very emotional -- wait, there is a guy, his name is chris christie. just won by 20 points. and there are some republicans saying he's disqualified. for what? he's not perfect on guns?
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rubio, he's disqualified because he wants immigration reform. i hope there is that debate. right now, i'm not seeing it. i'm seeing a lot of conservatives and tea party people saying, because these guys aren't perfect on the issues, they don't qualify. >> can i say what i see the positive as? the idea that right now finally we no longer have to talk about public policy and our ideas about obama care or the economy in aggregate terms. we're seeing real-life -- >> but republican dos need to talk about policy. there are huge differences about government, entitlement, taxes. if you think we're on the same page on policy -- i don't see it. >> the gop -- republicans, in my opinion, have to have a growth message. there are a lot of legs to that growth message. including immigration reform which i favor. emily, in this poll, remarkable poll from kohut today, managing
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government, republicans have the lead, 42-39. overall 49-43, the democrats have a six-point lead. that's where the democrats were in 2009 before they got blown out in 2010. what are you going to do about this? >> we also said in 2009 that the gubernatorial elections, the new jersey and virginia, would be a total bellwether for how the midterm elections went. if we look at that, it is a bellwether. >> by a cat's whisker. >> but i think there is a lot of room for republicans to really gain on is taking out lgtb issues, take it off the issues. those and equality issues are actually a huge decider of even showing up to vote for young people. and they become almost single issue voters in a lot of races on this issue. >> here's my advice for democrats, don't propose the base expansion, the u.s. welfare
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state and then -- >> this being the new liberal entitlement state dream that they put -- and the whole thing is self-destructive. emily, jennifer, jim, thank you very much. that's it for tonight's show. go and read that op-ed by kohut of pew. it's revealing. i'm larry kudlow. see you on monday. jackie: there are plenty of things i prefer to do on my own. but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. see who does good work and compare costs.
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>> narrator: in this episode of "american greed: the fugitives," a brazen cyber-crime ring rewrites the rules of bank robbery. >> they know your password, they know your user i.d., and they're on your computer. >> narrator: they hack into companies' bank accounts, then use college students as mules to move the money out of the country. >> you can call it by a lot of different names, but this is organized crime. >> narrator: and when investigators begin to move in, one alleged schemer is believed to take the scam elsewhere. >> he fled along with two other female mules, and he went straight to las vegas. >> narrator: and later... in rural oregon, a self-professed financial wizard


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