fantastically bullish for stocks and the economy. t"the kudlow report" is moments away. >> don't miss the bit from yours truly, my take on obama's all out of salt on big oil today. stay in tuned. a lot of fishers trying to call it just like we had this morning in best buy, trying to call it. so many best stocks. why are you messing with that in are you getting around the hot ipos? let me know if you get shares. i'm jim cramer. see you tomorrow! hey, larry, nice rebound today. what are you checking out? >> all rate, buddy. the president bashing oil companies. completely unhealthy for our future prosperity. our top story tonight, the president just back from his open mic tour in treea doesn't mention word one about obamacare. instead gets into a bash oil

report. let's listen. >> i think it's curious that some folks in congress were the first to belittle new sourcers of energy are the ones fighting the hard toast maintain give aways for the oil companies. >> as though any of that is going to bring down gas prices. national average once again climbed a penny. but natural gas slides it a ten-year low and crowd oil also plunges today. so tonight we ask, is the left's attack on traders and investors a complete tactic of diversion. and why hasn't president obama said anything about obamacare? well ask senator mifrp mcconnell bho who joins us for an interview. i remain an optimist. we begin this evening with president obama trying to deflect sagging poll numbers by using his rose garden pulpit to rail on big oil.

cnbc chief washington correspondent john har wood squloins us with details. good evening, john. >> good evening. i'm not sure anyone needed reminders that this will be at the center of the campaign. we got one in the rose garden when republicans were using budget votes to bash him on the hill. walked out on the rose garden. tried too publicize to rip into oil company profits and rip into republicans for not joining him in taking away the industry's tax breaks. >> it's not as if these companies can't stand on their own. last year, the three biggest u.s. oil companies took home more than $80 billion in profits. exxon pocketed nearly $4.7 million every hour. and when the price of oil goes up prices at the pump go up, and so do the company's profits. >> here is voters sentiment the president was trying to capitalize on.

look at this bloomberg poll. when you ask who is to blame for eye ohio pricees. two thirds say oil companies and middle east nations. much more than the president. other on the other hand, republicanes have a come back. look at the numbers from the new york times. does the president have substantial ability to do something about high gas prices? majority say yes. of course that's the response from republicans from the speaker, from all of the republican leadership. which is it? you take away tax hikes the president want to do. it would end up even higher. >> as famously say sed with be there you go again. this sounds like more of the same from president obama. >> right any $4 billion of your tax dollars goes straight to the oil industry. it's inexcusable. how do they deserve another $4 billion from taxpayers and subcy dies. >> on top of the money they get from you at the gas station every time you fill up, they

want some of your tax dollars as well. >> it's outrageous. >> does anybody think that they need help? that they don't have enough incentive to drill for oil? >> does that make any sense? >> no. >> i just want it make sure. i didn't think it was a wise use of your tax dollars. >> my quick rebuttable. first of all, new technology. at current prices we have recoverable oil reserve eats 1.4 trillion barreles. that 60 times president's obama's number. we are on the verge of north american energy independence with fossil fuel supplyes a we will need for decades to come. and the question is subsidies, oil, natural gas and coal, receiving 64 cents. wind power industries get 56.29 per megawatt hour. that's right, 100 times the

subsidies. the case is made that while the president is talking about tax subsidies he is really talking about depreciation write-offes. oil companies are eligible for only 6% deduction. most manufacturers get 9%. depreciation is important for business investment. in my book everybody should have a hundred percent write-offs. regarding oil companies paying they're fair share, their effective tax rate is 41% as of 2010. one of the highest taxed industries in america. according to the tax foundation between 1981 and 2008, oil and gas companies sent more tax dollars to washington and state capitols than they earned in profits for shareholders. that is a fact. now if you ask me all these tax preferences for all industries should be apolished. just cut corporate tax rates. slash them. but bashing oil and gas is

unsupported demagoguery rhode island. let's bring in our guest, bart shelton, commissioner of commodities future trading commission and our pal rick san telly. bart? >> i say president obama is wrong on his facts. i think the country needs more fossil fuel drilling and pipe lines if we are going to be prosperous. i don't understand the president's constant bashing of oil and gas. >> well, you're right that we need energy sources larry, as we have talk about a bunch of times. but i do have sympathy for cutting $4 billion when the three largest oil companies are getting $80 billion in profits. the thing that concerns me and we have talked about it before is that there is also speculation going on there and it's excessive speculation. we need speculation in markets but i think that's also pushing the price of oil and gas up beyond what normal supply and demand would merit. >> bart, i want it get rick in on the speculation.

but i want to say, yes, oil companies are profitable. yes, natural gas companies are profitable. but they pay a fortune in taxes. i heard you echo the obama line. they pay more in federal and state taxes than they even make in profits for shareholders. those are facts. they have over 40% tax rate. what do you want out of them? this is supposed to be free market capitalism. >> so you know, they are only going to bring in 76 billion in profit if we do way with the 4 billion? is that really trouble you that they will only get 76 billion in profits instead of 80? >> no, it troubles me that they are being singled out. that's what troubles me. rick, you can respond on that point or bart wants speculators. i don't know if he wants them done away with but he blames speculators. >> part of it, not all of it -- >> what's your take on that. speculators, traders, investors, rick? >> when i see the s&p move up and ben bernanke smile, i don't see speculators et going yelled

at with regard to what they are trading in equities. when i see the gray markets up move up and down and see that 1.5% actually take delivery rb who the rest is taking the market? i don't see that singled out. when you look at countries like china before they were involved in markets, there were shortages of scarce resources. the market allocates well. i know that bart thinks speculation is a problem and has quoted many studies like the goldman study. are you aware of that goldman study bart? >> yeah. for every million barrels of speculative long it adds 8 to 10 cents per barrel. if you ex traf late that. it paens means we are paying 26 per barrel. it means there are executive speculation now. we have gone from 60% of speculators in the oil market to 85% in just in the last few years.

obviously that has a lifting all boats affect like the tide. >> bart, bart, let me -- i like all those facts. now let me give you my take on it. first of all, in the 85%, i want back and use cftc data on your own website. you included the swap steelers in that 85%. the real number is speculators, 48% swap dealers close to 37%. swap dealers are in the cftc ae backyard. you haven't regulated them. you let them get away with being considered hedgers. but that otc mark, sub prime, commodity or oil, that market needs to be dealt with. and that goldman study you just quoted, we phone found that independent authors of that study actually addressed you directly. let's show it on the screen.

commissioner chilton says this is speculation. we disagree. in our view this is the mechanism in which the oil market becomes better informed and reaches consensus on issues, such as improving economy. outlook on demand and increasing tensions in iran. regarding crude oil. i think what you consider speculation, is the market trying to grapple with all of the issues. if there was no market, my guess is, oil would be much higher. i think the argument is speculations probably lower prices. who do have you aldate scarce resources, bart? barney frank? >> yeah. bart chilton, obviously, speculators, traders and investors can sell just as much as they can buy. >> look at natural gas. >> that's right. took the words right out of my mouth. plunge of natural gas prices. by the way, we see a nice sell off. they don't agree with study in your work and rick issues a challenge on your own super

vision. >> i'm happy to have the opportunity to respond, larry. two things. i agree with you a hundred%. >> so what are we doing about it? >> same we did with mf. >> hey, do me a solid, give me just a minute here. >> all right. >> it seems to me, that we need to -- that swaps are also part of the price discovery. that's why that 85% is there. with regard to the goldman study, i have met with them many times. there's no disagreement on what they said. i didn't make this up. this is from goldman. and here is the difference. it may not make for great tv. but speculation's a good thing. we agree. >> right. >> i'm saying there a different type of speculators. i call them massive passives. because they are the likes of mention funds and they stay in the market and go long. for every long massive passive, there are 12 that bant to go long and one that wants to go short in the market. >> in those circumstances, here

is what i don't understand. we unfortunately don't have enough time to pursue this. but bart, if everybody wants it go long, why are the prices falling? natural gas is a perfect ind kiter. supplieses are booming and prices are falling. therefore, traders investors are selling because they are taking and processing the information. that's what a free market economy does. >> my tip of the hat is maybe they listen to your show and they thought they peak pepd but in reality, these are longer term trend. if somebody said, can you predict it is higher or lower tomorrow, i guess i have 50% chance of being right. >> i got it, jim. >> before you jump though, real quick. before you jump swb 12-1 passive? there is no research that backs it up. i just looked at a chart of the index position versus the price of wtio oil going back far year, and there's no correlation. >> look at our website. >> i did. that's why i got my -- >> we would love to have both of

you guys. i think crude oil prices are peaked and i think gas at the pump will peak too. that's my surprise. thank you very much. now, folk as we have been reporting, natural gas plunged almost 6% to ten-year low. president doesn't do any favors by slamming down oil companies but aiming for natural gas companies as well. energy information administration says natural gas output at highest in history in january. natural gas is the untapped resource that will power this economy if we let it. my pal jim cramer agrees. what you got? >> larry, listen up, the president demonizes the oil companies. hey, i get that. forget the fact we're in a moment where we can drill our way closer to energy independence for this continent and the president royces not all petro product are created fall.

this is so low because we have way too much and it is land locked because of the difficulties exporting it. it can be used to the debt trim of oil for the trucking market that burns one quarter of what we import. do you want the price to go down? you don't have to drill wrb drill, drill, you just have it use, use, use. it is simply not true we can't bring down the price of oil. it's not true. a real competitor, liquefied natural gas, would destroy the pricing structure and bring down gasoline's cost. if you actually wanted that to happen, would you know this fact. the president makes it a pint every time it t.o. say that the -- it refuses to acknowledge the fact and it is a fact. if these alternatives do not work for surface vehicles. that's what is burning all of the oil. but not ak acknowledging the difference.

there is less energy security, fewer jobs, terrible balance of payments and dirtier skies. how is that good? how? i can't figure it. all just to prove a point that fossil fuels, of all kind are bad with. larry, it is so, so wrong. so, so wrong. lawrence back to you. >> jimmy cramer, you are so, so right. i enjoyed that rift very much. sfoks themselves closed mixed today. i think this is a healthy correction but don't write the market off for hear ensakes. i remain optimistic especially about falling off and natural gas prices. so is it time to invest in america and buy stocks? i'm still saying yes. we are joined at powerhouse panel next up. ent to doer fet, free market capitali capitalism, including the energy sector. including fossil fuels and their

prices. always the best bath to prosperity. "the kudlow report" coming up. this is an rc robotic claw. my high school science teacher made me what i am today. our science teacher helped us build it. ♪ now i'm a geologist at chevron, and i get to help science teachers. it has four servo motors and a wireless microcontroller. over the last three years we've put nearly 100 million dollars into american education. that's thousands of kids learning to love science. ♪ isn't that cool? and that's pretty cool. ♪ ortho weed b gon max. with a new continuous spray wand. so you can kill invading weeds down to the root. without harming your lawn. guaranteed.

ortho weed b gon max. welcome to the world leader in derivatives.

welcome to superderivatives. take a look at this photo. to make the point on natural

gas, take a look. he took this picture, see this? farl gas 2.65 a gallon pl while regular gas, 4.79 a gallon. what does that tell you? it may tell you everything. welcome back, everybody. question is, is now the right time to get bullish on america? my next guest sees encouraging indicators in the housing market and car industry that he thinks the boost the entire economy. we welcome you back to capital growth management. ken, you know, reading your, you're a contrairian on housing and home building. that's a key point, tell us why. >> house be starts are about the half the rate of formation. they've been there for years. orders for new homes are up 50% in the last six months. a lot in the last two months. and basically i think that housing starts are going to have a dramatic upside surprise in the next year.

this is because even though affordability is at 25-year high, housing starts only started to reflect it because of the perception of declining prices. in the last month or two, that changed. in many markets housing prices are going up. there are developments in some areas. you are seeing houses a bit above the asking price. this is going to change the perception about housing prices. and unleash tremendous pient up demand. >> home builders stocks are up more than 30% year to date. i guess you have participated in that. the question is, ken, how much of the good news you're talking about is in those stocks and do you go to other sectors? >> that's a fair point. i think some of the sectors that depend on housing stocks have less of a build-up in the price. but, having said that, a year or two from now, i think the housing stocks will be considerably above where they are right now. what people don't realize is

this industry is a lot of the capacity taken out of this industry and a lot of the workers went back to mexico. and they aren't allowed back in. there is going to be tough for home builders in general to meet demands. there are markets like vegas that may stay tough. but in the markets where you couldn't build as much as you wanted to during the boom, it is a tight situation. >> your basic play, as i understand it, you say held cell bond. you say, sell gold. and buy stocks. is that correct? >> right. >> i'm a contrairian. if you look up until the last week, seeing big redemptiones and domestic funds aeb and big guys ever bonds. i think the strength in the u.s. economy driven by autos and housing, traditional drivers of growth in our economy will cause this economy to grow much faster than people think. as a result the feds will abandon a zero interest rate policy. you will see interest rates go up a hundred to 200 basis

points. most people will lose a lot of money. when you see stocks go will up and bonds going down, this great swing from into bonds and out of stocks will reverse. h is like 1982 when bonds have been bad for 20 years np this case, stocks have been poor for 11 years. basically when the trend changes, this a secular turning point. and the problem with gold is, if you can't get any return on your cash, gold gets more interesting. >> right. >> and gold going down, is often associated with stocks going up. >> you want it put your money in the more productive asset. in the gold in the '80s and '90s, ken, stocks up, gold is down. anyway, ken, i got to get out. i appreciate your contrary view and your optimism. let me bring in now additional investors. we got, powerhouse people from more stock market work.

do doug, you heard ken. you has an awfully good track record, what's your take on his optimistic scenario? >> i'll approach it two two ways. first of all, i'm less age elling on equities than kid the mad bomber heebner is. and kenny is one of the investment icons and one of my idols. my problem is, people are -- the bulls are saying that if you look at stocks and you look at bonds, now i have a huge position on bonds so i a gree with that. he thinks equities are the best house in a bad neighborhood. but every real estate agent will tell you, never buy the best house if a bad neighborhood. >> he also thinks houses are a good thing to buy. >> yeah, i think -- i agree with him on housing. although, i see a durable

multiyear expansion in housing production but it's going to be slow in the beginning. if you speak to people like the ceo of tul brothers he will say he is having his best spring selling season in five years. in the last two years business faultered in late february, early march. that has not happened this year. in fact he has pricing power, raised prices in close to 30% of his community. and if you look at areas in the country that were inundated by foreclosures like where i live in florida, there is a renaissance and even in phoenix arizona. >> this is great. >> but it'll happen slowly. slowly but very durable. >> this is essentially what ken is saying. let me go to you on that, on top of this optimism we are hearing, i want to throw in the plunge of natural gas prices. and improves almost every industry inside the economy and improves spending power by consumers.

are we underestimating by the collapse of natural gas prices? >> i think we have heard that housing is pretty important. changing of manufacturing moving back it america from other places, helped by natural gas. we have wireless devices, smart devices, which we need to build out for p. on ton of that, this energy growth boom you put that together and have you an interesting economy. >> even crude oil is giving ground. my forecast in the last couple weeks is if the trend in crude continues, it'll hit price eats the pump. buying a blow up in iran, we may see a peak in retail gas prices. this strikes me as almost wildly bullish for stocks. >> it is wildly bullish. i think the general concern we have is we might get a little bit too ahead of our skis here. and we haven't had much snow.

so the idea here is, for example, citigroup index has been rolling over. we see mild winter factors bring some of the seasonals forward and there will be pay back on that. we are seeing small things. that suggest yeah, maybe we will get a little correction. i want to buy into that correction, not clas the market. >> yeah, doug kass, i think you playes this correction but corrections can be healthy, doug. i want it ask you, are you back buying stocks given the fundamentals were he talking about. >> 2340 no. i think it is premature. first, happy passover to my friend tabias. >> i will see you for the holiday if you want me up. >> i would love to. i missed you last year. i'm concerned that we face the monetary cliff at the end of june when qe is concluded. i'm afraid that we face a fiscal cliff at the end of the year. higher marginal taxes. lower government spending. then we have this election.

you dedicated a lot to obama in the first segment. my concern is that it is increasingly likely that democrats. regain the presidency, which is not marketed business friendly. that republicans will regain the house and possibly when the senate and that's gridlock that we don't need. we have to address our fiscal em balances. every minute that we waste. the deficit expands and expands. >> you're right about not doing the entitlement reform this that kind of mixed gridlock. but i want to know, the possibilities of the line-up you just suggested, republicans take the senate and the house, i'm not so sure obama's re-elected but that's your view. i think that they will prevent the bush tax cuts from being reversed. i just don't think they will take the risk on the economy. bernanke doesn't want them to take the risk on the economy.

i agree with the physical risk on taxes. i just don't think it'll happen. >> as wise man once said, we shall see. >> we will leave it there. thank you very much. coming up, senate republican leader mitch mcconnell joins us for an exclusive interview. maybe he can tell us why the president comes back from the open mic tour in korea and the first thing he did z is talk about bashing and taxing oil. later on the show, president bush 41 makes a big endorsement. who is he talking about in take a listen. >> i do think it is time for party to get behind governor romney and he reminded me kenny rogers, knows time when it hold them and time when to told them. i think it is time for people to get behind this good man. >> all right, senator mcconnell. we'll be right back half this short message.

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korea and the first thing he does is launches a kind of tax and bash on oil and fossil fuel companies in the rose garden. what is up with that? what's your take on that? >> every time the gas prices go up, the president says we need to raise taxes on energy companies which would make the price of gas go even higher. it doesn't make any sense at all. it doesn't pass the smell test. it is completely laughable. americans ever suffering from pain at the pump, of $4 a gallon gasoline. and the president says, we ought to raise taxes on producers. it doesn't pass, as i said, the smell test but that's what they do, when prices go up, take off after gas and oil companies. >> do you anticipate that would pass in the he is nsenate? it didn't get enough votes to pass. by the way, as we talked about earlier in shot web oil

companies pay among the highest tax rates of any company in america. >> you're correct. in fact, somebody told me the other day that revenue off of oil companies alone provides about 10% of the federal budget. so it is not like they are getting away with anything. look, there were at least three democrats who voted with us. against the proposal. so there is buy pardian opposition to raising taxes on oil companies. not because, you know, we're here to defend oil companies. but they are already paying an enormous amount of revenue. we don't want the gas or price of gas at the pump to go up even higher and the congressional research service which is certainly an objective group says that if you raise taxes on oil companies you send the price of gas at the pump up. that's the last thing we need right now. >> so i'm surprised, maybe you are too, that when he came back, he didn't talk about the great discussion of obamacare in the supreme court. and i want it ask you, why is it

he is talking about that? and you yourself, what do you take away from the three days of hearings on the supremes and obamacare? >> well, first, the reason that president is not talking about the two-year anniversary of obamacare or supreme court review of the constitutionality of the case is because it is deeply unpopular with the american people. so i think his view is the less said about it, the better. predicting what supreme court is going to do, is a pretty hazardous thing to engage in. let me just say this. if the court decides that it's constitutional for the federal government through the commerce laws to order us to buy a product that we don't want it buy, because it might raise the cost of healthcare for someone else, if we don't buy health insurance, then could the federal government consistent with the commerce clause order us to eat carrots or quick smoking or to lose weight? is there anything the president -- the federal

government could not do in name of health care cost? i think it is safe it say that if it th is not uncons fusional then you can force get the laws. it doesn't mean anything at all. it is a relic in the past. p it is still an awful law. there are plenty of bad laws that are passed that are not uncons fusional tp even if it is not found unconstitutional, it should be repealed. >> the president's own budget didn't get a single vote when that vote came up in the house. i guess the question is, will anything happen in senate regarding the paul ryan budget. i recon you support it, but does it go any place? >> we will have a vote on the house passed budget. we also will have a vote on the obama budget. i offered it myself last year. they didn't want to.

it went down 97-0 in senate. i will offer it again this year. i don't anticipate any of our democratic friends will. we have two other members very active on budget matters. senator of pennsylvania and senator from my state. they have both developed budget alternatives. we will probably, larry, vote on all of them. but the senate democratic majority hasn't passed a budget in a you this days, and i doubt they will thissier. >> as you know, senator rubio just enforced romney. papa bush endorsed him. jeb bush endorsed him. firstly, do you intend to endorse mitt romney? >> my view so far is that the republican primary voters didn't need particular advice from myself. i think i will say this. this nomination is essentially over. . and i think we will be better to

rally behind the certain nomination and take the case of president obama to the american people. >> if you came out with an endorsements would that help rally the party? would it help bring closure to this and start focussing on what will happen in november? >> i think more and more members will be embracing our almost certain nominee and i think this matter is going to be wrapped up in a matter of weeks. >> when will you come out publicly for it? >> i'll let you know. >> i thought maybe would you break the story. anyway, senator mitch mcconnell, senate leader from kentucky. as always, sir, we appreciate it. >> thank you, larry. coming up, president obama got a huge slap in the face. his budget was u nan lousily rejected by the house. he couldn't get even one democrat it vote for him. what's is mean when his own party gives him a no confidence vote? right back after this. ♪

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president obama's budget overwhelmingly rejected by both sides of the aisle and 414-0 vote, not one democrat voted for the obama budget. on the flip side the house did pass rye and budget 228-191.

effectively i think a no confidence vote on obama and his policyes. let's talk. we have former chief columnist for vice president joe biden and americans of prosperity, i got to go to you first, the obama budget was offered by republican from the budget committee. that's the way it works. no democratic votes. are they running way in running away from the tax of the rich? >> no. >> running away interest tax cut? are they running away from president obama's whole philosophy? >> not in the slightest, larry. let me ask you and phil a question. i don't even need to ask, because i know you guys are always honest. did you look at the budget that the republicans offered that they called the president's budget? if you didn't, that's okay. let me tell but it. 40 pages of numberes with no policy in there at all. this is not what the president's budget. >> that what a budget policy is. >> wait, phil, phil, phil.

you're patently incorrect. certainly paul ryan he resolution wasn't like that. this was not the president's budget. now the super committee this is the house democrat, was very much like the budget the president just produced. they have some changes. they don't take the president's budget. they never do. neither side does. they make some of their own changes. >> but the point is the exact policy proposal that the president had. took the numbers from them. offered it for up or down vote. the truth is obama finally made good on the campaign promise to be a uniter. against his ideas, 2 trillion in tax hikes on energy, tax gains and charitable contributions. >> that's not the president's budget. >> they weren't willing to defend it. weren't able to defend it. >> it is this kind of budget theatrics, play acting, that has the country in the hold that

it's in. >> jir o>> everybody knows we no have a balanced approach to a fiscal situation. >> i understand. but look -- >> the president -- >> hang on. let me get a word in. >> it never achiefs balance. contemplates deficit forever. that's true. that the official score, never achieves balance. >> phil, let me get a word in. last year, the president's budget was offered by mitch mcconnell. he was just on this show. >> i saw it. >> 97-0. this year offered in the house and it lost 14 '0414-0. essentially were well known. the policies are well noun. what i'm trying to get at, is are they running from the key bullet in his budget? that's what i'm trying to get it. >> that's a fair question. >> i think it is more important than just the numbers. >> i agree, a fair question,

larry. let's look at the budget that the democrats, including on the democrat side, i raise him because he is the one arguing with the republicans last night about this, let's look at that budget. that budget is almost a twin of the one the president offered a few weeks ago. some of the differences, the house democrats put in more -- they pull back some medicaid cuts. they have some of their own tweaks. you know, larry, and phil you ought to know this too, for decades, no body of congress adopted a president's budget. they take it and frame their own around it. >> well, phil, the republicans in the house passed paul ryan he bunlets. very controversial. senator mcconnell told us he would get a take in the senate. what is your take on the budget, phil? >> it's not as ambitious from last year's version, frankly. he compromised on the firms to alut option of stay in

tradition. the bottom line is it starts the process of fixing these long-term obligations. he blocked grant's pled cade. and he does achieve balance depending on whether he used dynamic or scattus score. he can do it quickly with a pro growth tax reform that is needed. >> he blows a massive hole in a federal budget by cutting taxes way beyond bush. >> if you think there's no growth effect from pro growth tax reform you might think that's true. iept skeptical of that. >> gentlemen, i got get out. i appreciate it. i think the ryan budget will pick up a couple democratic votes in is the senate. >> it will get more than obama's zero. >> i'll take that bet. >> we'll figure the wager out. next up, sticky business when texas governor rick perry and governor's of iowa and

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it's called lean finally textured beef, but we all know it as pink slime. today three governors got a taste of it, sort of. good evening, kayla. >> good evening. nebraska lieutenant governor rick shee hee and lieutenant government nor michaels visited the operating plant in nebraska. they are looking at the low-cost beef additive but none of the politicians tasted the so-called pink slime. man attempt to carry explosive materials on to a plane. 29-year-old joseph pick low was caught with fireworks by airport security in philadelphia this morning. he was detained. told authority he forgot the materials were in his backpack. the u.s. postal service hopes to entice 150,000 employees to

require. there is a $5.1 billion loss last year. the lottery jackpot jumped from 476 to $540 million in one day. people around the country are lining up for a clans at the biggest jk pot in the world. i know, i have my ticket larry. numbers are drawn tomorrow night. best buy admitsity business model is not working. it showed a loss, 50 store closures and hundreds of layoffs. can this company findity footing? we find out in a cnbc documentary, best buy, the big box bites back. kayla, we appreciate it. next up, mitt romney scorees a big enforcement. president bush 41. take a listen. >> i do think it is time for the party to get behind governor romney and he remind he me after kenny rogers song.

time when to hole them and time when to hold them. i think it is time for everybody to get behind this good man. >> romney also got popular senator mark why rubio to endor endorse. but a secret hotel meeting with newt gingrich that has everyone buzzing. what is romney after? what does newt want? what happened in that meeting. all next on kudlow. how's it going, gentlemen? what's up, man? gas prices keep going up. crazy, man. but seeing how i saved hundreds on car insurance with progressive, this tank's on me. we getting a whole free tank of gas. the dude from the progressive commercial, man, he just filled up our tank for us. appreciate it. take care. fill it up? free tank of gas. man, switch to progressive, dog. they doing a lot of good out here, man. tell him the messenger sent you. and on small business saturday bothey remind a nations of the benefits of shopping small.

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. >> take his endorse many and the race is over. >> now, the drama on the republican primary trail is right out of film ides of march. reports after secret meeting between newt and mitt. video of money man, there he is, saying gingrich is at the end of his line. the news of two big news endorsement, papa bush and marco rubio, now officially for romney. do we know how this story will end? we may know. we have robert costa, the national review, along with newt gingrich supporters, and rick tyler. so rick, in the meeting with newt and mitt. he offered a cabinet offer. didn't offer to repay his debt. what came out of that meeting? >> i have no idea.

i'm sure newt accepted the meeting, but i'm sure it was short. because mitt has nothing to offer newt. from vp, second, ambassadorship. mitt is not in the position to offer anything. >> don't you think it is not important what newt is doing, but what he want. mitt was probably smart to reach out to gingrich. >> sure. >> rm rm knee doesnromney doesn want that kind of chaos. i was with romney in georgetown on wednesday. he is not going negative on santorum and he want it play a role in this party. mitt romney is in the spot. >> newt is going to play a role in the party. that's the whole point. this is george w. baush's party. it is not newt gingrich's party. newt came out of nowhere.

ne >> he doesn't want to be a spoiler, right, rick? >> newt doesn't want to be a bringer. wen't it bring the party back to the party that used to went on conservative principles. >> the problem for gingrich, even if he want it change the party and make it a big campaign, he may not have the money or any momentum. he has it make a decision before august whether it is right to stay in the race as a candidate. >> seriously, the money machine has been stopped. so i wreckon that will have a tough impact on your ad. >> right. >> at what point does newt take elder statesman role, talk on the issues as robert costa says, but essential i withdraw from the race. >> fe withdrawes from the race, it is over 500 in the district. people aren't talking about balanced budget. newt gingrich has it stay in the race because he is the only guy wh talks about issues in an

energy policy and the only guy who can beat barack obama. sew will bring that to the convention. and there may be a shake-up at the convention, we'll see. i hope so. >> gentlemen, have to leave it there. thanks very much. that's it for this evening's's show. i think mitt rm knee is in a commanding position. you probably agree with me. let's get on to the november rate.

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