we will have to pay close attention to them all the time. let's not forget the market has gotten too hot for me. noion is one is going to fight that. i will see you tomorrow. breaking news, twitter report. a government shutdown disaster. they'll negotiate and house speaker john boehner is facing a possible vote for conservatives.

there's a challenge that has iv in america in universal disgust. and he's bashing the white house on syria. >> breaking news for an initial public offering. good evening. >> good evening, larry. they're tweeting. we've confidentially submitted on the ipo.

there's $1 billion in annual revenue. they come out no later than 21 days before it begins. twitter will be the latest social media company joining linked-in. their rival facebook. there's adebayor revenue. all of these stocks are trading well above. >> and when do we get all of the information. >> it's across the board. >> they check the ipos.

goldman sachs will be the lead underwriter. >> bank of america and credit suis suisse. fully listed on the f 1 when they filed. they don't have to do that. they don't have to state a lot of the financials. >> it's very important. the new piece of legislation that came out. the jobs act. jump start our business startups.

now, kayla, i'm a guy who likes information and transparency. let me ask you if you have any sense. when will investors get all the information about the financials for twitter? when's that happen? >> that will happen three weeks before the company goes on its road show which is where it will meet investors face to face in different cities, new york, silicon valley, chicago maybe, baltimore, d.c. area maybe. so three weeks before that. so that investors actually have time to digest that. here's what's important. between now and then they basically have an open door policy with the fcc. this is something that facebook didn't have the benefit of. they had over $1 billion in revenue. at the time it had over 5 billion employees. that was raised to 2,000 shareholders with the passage of the job act. twitter was in the sweet spot. what it means is it can present an s 1. and say this doesn't sound right. you need to fix this, without the scrutiny of investors.

when facebook went public february 2nd, beginning of february. >> all hell broke loose. >> all hell broke loose. we criticized every single thing and then when we saw the changes, we criticized it. >> for those of us who have reported through the financial catastrophe through the last four or five years, i don't know much about twitter, i tweet, but i do know a lot about transparency. that's something investors should have. that's why i'm a little bit skeptical. you believe their revenues are what, twitters? >> roughly $600 million. i'm not saying that justifies what its valuation is, which is roughly $10 billion. bankers expect this it will go public at evaluation but not far north of that $10 billion valuati valuation. i'm not saying it's justified but we roughly know those are the financials. we can go back and forth as far as what defines a user, what exactly the metrics are that

investors will need to look at this idea. that's what they're talking to them about. i think it has the benefit of time. they can get real time commentary from the sec. if you're a company like facebook you're sometimes waiting six weeks to get comments back. >> he'd like to have real time commentary from investors because i think the fcc is a bunch of dopey doughs. seema, let me ask you that. facebook has had a great comeback. this is after the disaster. one of the houses has targeted $50. morgan stanley has targeted facebook. linked-in has soared to almost $250 a share from its $45 offering price. yelp is up 325% since march 2012 ipa. groupon didn't make it. big rally among the social media. >> initially there was a certain level around the concept of social media. thanks to facebook, linked-in,

other companies coming on the market, a lot of people are becoming comfortable with the idea of social media. they have the staats to back them up. verizon mobile ad revenue. that's very important. >> i have to leave it there. thank you very much. seema mody, kayla tash shi, we approach it. >> fire raging in the storm battered town of seaside heights. that's a town ravaged by last fall's superstorm sandy. they're reporting that 80%, 80% of the boardwalk has already been destroyed. we're going to go live to the shore a little later this hour. switching gears now. all of a sudden government shutdown looks closer and closer. the deadline, as you know, is september 30th. a republican push to defund or delay obama care is at the heart of the latest budget standoff. you know what, right now it's republican versus republican rather than the gop versus the dems.

let's talk. here is politico reporter jonathan strong from the national review. thank you, jonathan. i don't really get this because it's kind of a moving target. first some of this was going to be defunded through the cr or it was going to be defunded through the debt ceiling. they don't have a quorum majority inside the gop. tell us what's happening. >> good evening. it's a very fluid situation on capitol hill. majority leader eric cantor introduced his proposal to force a vote on obama care. it provoked a revolt a among the conservatives who are now coalescing around their own plan to try to force a one-year delay of obama care through this government funding bill. tom graves and jim jordan are spearheading this push. you have two different factions breaking out within the house gop. >> i don't want to get too technical, tom, because we don't have enough time or whatever. i tried to convince senator cruz of this. i'm an old reagan green eye

shade. i worked at the office of management and budget. you cannot use the cr, congressional resolution, you cannot use a continuing resolution to change entitlements. you just can't do it. the cr is about discretionary spending, nonentitlement spending, and the obama care has a lot of entitlements in it that's why i don't know why this argument is still ranging. here's what i know. i want to get your take on it. if the gop continues with this division and this defunding business, they're going to get into a hell of a lot of political trouble and the clock is ticking towards september 30th. >> when i talked to these guys i interviewed jordan and tom graves earlier this afternoon. they're less concerned about the vehicle and more concerned about starting the drum beat of delaying obama care and i think you could see this become the message through the cr and then get extended to the debt ceiling. it's very fluid in terms of what precise mechanism there's going to be, but i think that here's a

case for why delay of obama care may be conceivable. the republicans are very concerned about those subsidies starting to go out to millions of americans which they feel could make it impossible to ever retract. the democrats, on the other hand, are very concerned about all the implementation difficulties. delay is somewhere in between that gets both sides something that they want and it's not [ applause likely but it is possible. >> jonathan, last question. why not delay the individual mandate, make it real simple? in other words, we've already delayed the businessman date. you probably know this. the labor unions are going nuts, all right, with anti-obama care resolutions in the aflcio. the white house is trying to call them to lobby and it didn't work. labor doesn't want it. big business doesn't want it. individuals don't want it. the exchanges aren't set up yet. why not just delay the

individual mandate to balance the businessman date? >> even the hard liner guys, they'll say to you in prime conversations that they're okay with that. i think that comes as the secondary. that's the concession point. you start out with the big ask and then you end up getting that. >> jonathan strong, national review. we appreciate it very much. the question is, can the gop leadership get their party on the same page or will the riffs over obama care shut down the government altogether. here is former chief economies jared bernstein and jim from the american enterprise institute. both cnbc contributors. jared, you must love this. >> i don't love this. particularly with the debt ceiling, the economy remains too fragile. we've had 100 bases point spike in the last two months. once you start screwing around with the debt ceiling more so than the continuing resolution, you're really talking about taking aim at an economy that's

trying to recover. so i like nothing about this. i will say one thing, it is not totally clear to me that the way out of this means resolving the republican family squabbles. the way out of this is for john boehner to increase the debt ceiling with a bunch of democrats. i'm not saying you can swallow that. >> there's not going to be a clean bill. there might be a clean cr, maybe. there's not going to be a clean debt bill. jim, the reason i thought jared might like this is this is all republican fighting. >> i do like that part. >> i figured you would. jimmy, i think if the gop is not careful, they'll get themselves into a lot of hot water. >> listen, if some day they want to actually repeal and replace obama care, what they need to do is to win the senate and win the presidency. whatever they do now, that needs to be the long-term goal. how does this set up up for

this. having some fiasco, a shutdown, even wers, debt ceiling, the markets are going crazy does not help them win the senate in 2014. perhaps the solution to this really is to combine the continuing resolution and the debt ceiling. you solve a debt ceiling and if obama care is part of it, then i think de facto you solve the continuing resolution and the government shutdown problem. even though in a way there's no way it should ever go for delaying the mandate or delaying the subsidies. republicans think they might go for that if it means delaying the sequester. democrats hate that sequester. >> now that's just where i was going. i'll go to jared on that. there is a potential deal here. let's say for example as jimmy's suggesting, you delay the individual mandate or maybe you delay all of obama care. i think the individual mandate is the one that could be delayed and that's part of the deal which i probably wouldn't like

that would get rid of the sequester. a lot of republicans want to get rid of the sequester. a lot of republicans need more money for the military or so they say. is there a deal for the sequester or delay the obama care? >> no. i disagree with jonathan. everything is possible, but i think if you delay the individual mandate, very different than the business side mandate. you're essentially saying there's nothing going to happen with this bill for a year because you really can't do it without the individual mandate and i just guarantee you the white house isn't going to go there. sure they don't like the sequester, but at this point i hate to tell you, everybody believes that the sequester is going to be part of the continuing resolution. >> right. >> i love that. >> i don't like that either. >> i love that. >> we don't have time to do much else. >> i love that. i think that's exactly right. i think the debt ceiling should be raised and spending should be cut to offset it. jim, 350 economists back janet

yellen for fed head. i've never seen anything like this fighting. they put up a list. you have allen blinder, christina rome, you have all kinds of famous economists, male and female. 350 backing janet yellen. what do you make of this, jim p. >> now we know there are 350 economists that barack obama doesn't really care what their opinion is. he really doesn't. listen, economists and chiefs of this administration is barack obama. he apparently has his heart dead set on larry summers. he's no quantity, no surprises. the friends of larry are very powerful in his administration. they'll ignore the 350 economist list. >> dead set for larry summers? >> people talk about this like it's a done deal. we really don't know. it's like they've already seen the smoke coming out of the

chimney in the vatican. if it doesn't work out that way, i agree with jimmy. there's one person who matters here, and it's barack obama. i will say that i don't think barack obama will send larry summers up if he doesn't think he can get him out of the banking committee onto the floor of the senate so that's kind of where the inside baseball is. >> three democratic senators, three democratic senators have already said they will not vote for summers. that's a lot of senators in a committee setting. >> that means he needs some republicans. we don't know. >> he's not going to get them. i don't know. we'll see. jared bernstein, jimmy, thank you, gentlemen, we appreciate tnchts thank you, larry. the unions were for obama care before they were against it. key union leaders are calling for the laws to be repealed, kind of like republicans. later in the show we have new bombshell evidence in the irs conservative target scandal. lois learner doesn't seem to be able to tell the difference between right and wrong and she'd better get some more lawyers and, folks, don't forget free market capitalism is the

best path to prosperity. let's keep that spending. let's keep a lid on that spending. that's part of premarket capital. i'm kudlow. we'll be right back.

big labor doing an about

face on obama care. get this, the aflcio which is america's largest union and an early backer of the health care overhaul passed a resolution demanding an obama care fix. the teamsters, long shoreman, united teachers union and others are all calling for changes to the president's signature achievement. just 18 days until the obama care exchanges are supposed to kick in, unions have come to realize that it will drive up the cost of their union sponsored health plan and force some to give up their union coverage altogether. justin wilkin is here from the union center facts. welcome back, justin. if you had to boil it down. trump has really gone to the war path. they'll pass this resolution. what's the biggest single beef that you're hearing from the labor crowd. >> you know, this has been a long time coming and we have seen this going on quietly. the fact that labor is coming out as loud and as vocal as they

are coming against the proposal, you know, it takes a lot of gujs to come up with tens of -- health care, they're losing it. to a certain extent unions have been their own worst enemy for the last five decades. they keep going into competition with the federal government. that's exactly what's going on here. they can't compete against the subsidies through obama care. they want an exemption. >> because -- let me just go. they can't compete with the subsidies because they're going to lose subsidies in this bill. they're going to lose the old taft hartley labor management subsidy. that is incredibly important, secondly, the unions have added some subsidies on their own. nobody co-pays anymore or never any co-pay. that's the thing. they're all going to have to go into the exchanges. they all have to pay much more and they don't like that one bit. that's my understanding. >> you know, union leaders have

never been known for their business prowess because the only thing they're good at is spending other people's money. we were warning about this kind of problem with the president's health care bins bill well before it was passed. i think frankly representative pelosi is eating her words about having to pass the bill to see what's in it. the union should have seen this coming. it's shocking that they didn't. the difficulty here is that they're pushing for what they call a fix, a technical fix. according to the congressional research service this problem cannot be solved without having the bill redebated on the floor of congress, passed through both chambers and sent back to president obama. i can tell you right now, i don't see that happening. >> right. >> in the end, the unions are being selfish here. >> either they get a waiver -- because there are entitlement issues in this. that brings up budget reconciliation issues. you're exactly right. they have to go to the floor. look, last one. if you're a union worker and the union delivers you a great health care package for you and your wife and your kids, that's

pretty cool, but if the union doesn't deliver a great health care package and instead uses your dues to finance some far left wing person to run for mayor in new york city, what the hell do you need the unions for? isn't that part of this, too? >> i think there are a lot of union members looking at their paychecks saying why do i have to pay union dues? frankly, everything else that the unions used to do from job place safety, anti-discrimination, wage and hour, those are all handled by the federal government. unions have basically put themselves out of business because they have nothing left they can fight for. >> extraordinary story. you're right, they should have seen it coming but they didn't bother to read the fine print. justin wilkin, thanks. look at this massive fire hitting seaside, new jersey. this is one of the hardest hit towns from hurricane sandy. we have a live report from the

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breaking news on the new jersey shore tonight. a terrible fire that's still reeling from pier here in.

most of it was destroyed by superstorm sandy. what was left has been consumed by fire. we're pretty much told all of the seaside park boardwalk has been destroyed. the fire has spread. it's spread a total of six blocks and it's destroyed some of the block that was rebuilt after sandy. they have torn up a newly built portion of the boardwalk that was recently built to save parts

of the boardwalk that were rebuilt. we know that at least 30 businesses, possibly more than that, have been destroyed or severely damaged by this fire. many of them just rebuilt in time to reopen for this past summer and now they have been consumed by fire. we are also told some firefighters have suffered some minor injuries as a result of this massive blaze on the jersey shore this evening, larry. part of the shore that was decimated by sandy now being consumed by this inferno. >> ted, just one quick question. i know the boardwalk's being ripped apart, stores are being ripped apart, that's bad enough, but has the fire spread or is there danger that the fire will spread to residential areas, to homes, to people? >> reporter: as of right now -- >> all right. i think we lost him. >> -- we know that they did -- they did touch off a fire at a condo complex about eight blocks

away off the boardwalk, eight blocks from where the fire originally started, so it is a possibility. and we -- you know, as the winds continue to whip, the embers continue to blow throughout the community. those firefighters are doing their best to try to get the upper hand on these flames. they're taking water from the barn na get bay to spray on that fire. >> ted greenberg, wcau, thank you very, very much. we appreciate it. up next, vladimir putin already in the driver's seat trying to set the global strategy to disarm syria. now publishes a crafty and cynical "new york times" op ed piece today. they basically argue the u.s. is not exceptional and the u.s. must not ever take military action against syria. just how the white house responds to this. how's this going to play out? we'll discuss it all next up. has it's ups and downs.

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russian president vladimir putin makes a crafty plea to prevent the u.s. from taking any military action in syria. this in an op ed piece in today's "new york times." cnbc's chief international

correspondent michelle cabrerra joins us. >> it was extraordinary, belligerent, very in your face. here are some points he makes in the op ed in "the new york times." first he says the world should use the u.n. process in sir yeah strikes will cause more casualties and more extremism. he still maintains it was the rebels who used the gas. then in a real insult at the end he rejected the notion of american exceptionalism saying the following, making reference to president obama's speech, he said, i would rather disagree with the case he made on american exceptionalism. it is extremely dangerous to encourage people to see themselves as exceptional whatever the motivation. all of this is particularly rich, larry, coming from a guy as he invokes the u.n. is the very person who continuously thwarts it as well. in the '90s he wrote an op ed justifying his actions in chechnya. in the end he said god made us

equal which i find extraordinary because that's the basic idea of the founding of america and our founding fathers. >> you know, it was 1999, you are dead right. he wrote "the new york times" op ed piece i sue it on news max piece. this is a pretty crafty thing. michelle, stay with me. there's a lot going on here. here's how white house press secretary jay carney responded to putin's op ed today. >> the fact is that russia offers a stark contrast that demonstrates why america is exceptional. unlike russia, the united states stands up for democratic values and human rights in our observe k own country and around the world. we believe that our society is advanced when children cannot be gassed by a dictator. >> america should be making the case that it is exceptional. this is a distraction? there's a lot to this. let's bring in georgetown

university professor, georcharl cupton. charles, one of the messages of this in your face as michelle called it, one of the messages here, i think is, america, you are not exceptional. you must play by the rules, and the rules in the united nations are going to be rigd so there will be no military action in syria which means russia protects assad and it means russia protects its own investments. i think he wants to stop military action. what's your take? >> i think that's just about right. we know that putin has made a profession of trying to trip up washington and he is deliberately in a very bald way trying to take advantage of the tough time that obama has been having with congress when it comes to the use of force. and the bottom line, michelle just said this, this is not a country that should be tooting its horn about the rule of law because when it comes to oppressing its own opposition,

when it comes to invading and leaving troops in georgia, when it comes to the slaughter committed in chechnya, russia is not a knight in shining armor. i think this is pretty not just cynical but a misleading op ed that putin published today. >> michelle, i would have felt a lot better with the jay carney response if they had talked about military action still being on the table. so far as i know, secretary of state kerry said that in geneva today but not the white house today. in other words, we can't just lay down in front of putin. putin doesn't want us to take any military action in our self-interest and humanitarian interest and international law, we can't just lay down in front of that. >> well, i would say two things. i think it is the threat of force that finally got syria to acknowledge that it has chemical weapons, that got us to this discussion. so the threat of force does work. once you remove the threat of force, you have removed leverage but at the same time you can't

have senator kerry we can still strike when it's pretty darn clear, larry, we're never going to strike. the people don't have the will. congress doesn't have the will. the president doesn't with the will so why try to fake it? >> i think you are right on target right now, at least this whole thing just baffles me, charles. i've never seen anything bungled quite as much as this. can i just raise some other issues from putin's op ed or whatever, the fact of the matter is this is going to go on for weeks and weeks and months and months. general mccalf fri was on last night and he's been involved in chemical wear fair for a long time. he said identifying it, securing it, getting the investigators in there safely and then bringing this stuff back will take a year. in other words, just the operational part is going to take a year. so when michelle says no military action, i suspect she's right. >> i think that's probably right, but the bottom line is that the white house doesn't really have a need or a reason to get into a shouting match with putin because for better or

for worse, and probably for worse, the ball is in his court right now. he's the one who's going to go to the syrians, he's going to sort of say this is what our plan is. i don't think it's a serious plan for some of the reasons you just talked about, the logistics. how do you get these weapons under control in the middle of a civil war. you know, there is one kind of hail mary scenario out there, and that is that this diplomatic push through putin and assad, you might be able to get the iranians on board because there were reports today that putin is going to talk to the new iranian president perhaps up at the u.n. general assembly might be able to get a cease fire, you might be able to get a political solution, but right now all of that looks pretty farfetched. >> you know, michelle, back to this exceptionalism stuff, which really does burn me up and i know it does you, too, it was the united states constitutional democracy, it was the united states political and economic

freedom that defeated the soviet union which killed over a period of 70 years how many people, 25 million, 35 million people from stalin on down? >> yes. >> i mean, that's why we're an exceptional country. we believe in freedom and we are humanitarian and we believe in the law. i'd like to see one of these fellas in the white house, you know, maybe the president -- >> articulate that. >> that's right. maybe "the new york times" will print that rebuttal. >> remind them that we are the first nation in the world based on the idea of freedom and everyone being equal, the very last line of vladimir putin's op ed is the vision of our founding fathers in the united states. it's why we exist. before this every nation had been based on ethnicity, monarchies, religions, wars, etc. this was based on an idea based on religious freedom, political freedom and economic freedom. unique at the time in the world.

inspired revolutions at the time. the french revolution, by the way, didn't go very well the first time around. that spread across europe because of us. >> charles, last one to you. a strong america makes for a safer world, okay? that's my view. that's the view of a lot of people. a strong america makes for a safer world. we have a strong america now? >> we have an america that's going through a tough time politically and economically. that is showing itself in terms of a turning inward in congress and among the american people. are we retreating? is this the beginning of a neoisolationism, i doubt it, but there's no question that there's a moment when we need others to help step up to the plate. unfortunately, i don't think that's what russia's doing. i think that they are trying to needle their way into this situation to protect their proxy, assad, who is basically a slaughterer. the bottom line is we're living through a period of

international history in which countries, including the united states, aren't stepping up to the plate like they have in the past because we're trying to fix the problems at home. >> we'll leave it there. thank you. charles, appreciate it. michelle, thank you ever so much. now, the winning streak for the dow and the s&p ended its day, but the real action was in the gold market where there was a huge selloff. the question is why are investors so sour on the precious metals all of a sudden? we're going to look at your money next up on kudlow. she's always had a playful side. and you love her for it. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently.

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protect your family... and launch your dreams. at legalzoom.com we put the law on your side. the stock market took a pause today. naysayers have been predicting an august, september for stocks. so far it's been anything but. take a look at the momentum we're seeing. all three major indexes are up over 3% but ahead of the fed next week gold telling a different story. the precious metal signaling a tiny taper or is it signaling an end to quantitative easing over the next year which could also drag down the stock market with it? let's talk. we have rebecca patterson, michael holland. first off, ladies and gentlemen, i want to get your quick take on this late-breaking news of twitter filing an ipo.

mike, you're a twitter kind of guy. would you buy it? >> i think it's supposed to come at a 10 or $12 billion valuation with 600 million in revenues, larry. it sounds a little expensive. we are coming off this huge run in facebook and others. would i buy it? no. does it mean that other people can make some money in it? >> yes. >> do you tweet? >> little bit. very little. >> just checking. you should tweet more. rebecca, i'm sure you tweet more. i'm going to ask you, would you buy twitter? >> i would probably agree with him at buying it at these levels. i'd say there's another story that comes out of the ipo tonight. that is that we are seeing an improving trend in ipos and mna action. that is good for the stock market broadly and good for sentiment. i look at it as a part of the bigger picture. >> a lot of the social media stocks have a heck of a comeback including facebook. we thought it was dead and it's

driven up a lot more. stanley drukenmiller, one of the great hedge fund managers, i think it's fair to say, of all time. he gave an interview and he told the interviewer that quantitative ease, qe, is going to end in the next 12 months and he said that's a big deal and it's very bearish for stocks. i want to get your take on that. >> i met stan drcukenmiller many years ago. he's very smart. it's what makes markets. i don't agree with that. it's the opposite. i would go in the direction of richard fisher, the president from the dallas fed who opined that the current qe 2 is doing very little to the up side. i don't think it will do much to the down side. far more important if taper has not tightened as ben bernanke said, the 0 interest is by far the most important thing.

i think rebecca's comments about twitter and the state of the ipo market, i think that the taper life is probably going to occur and i think it's probably going to be received well by the markets. >> rebecca, it goes through this drill. i happen to think stanley druckenmiller is raising important issues. gold is getting killed here, okay? if the fed was going to be easy, i would argue gold would go up, but if the fed is going to tighten, maybe the gold market is looking ahead 6 to 12 months and says, woops, no inflation. no excess money. and gold prices are going to keep going down. is that plausible? >> i think it's very plausible that gold prices could keep going down. i do think that taper light, so a very small reduction in the pace of quantitative easing is the consensus view now in the markets. i do think that's most likely

the outcome for next month's fmoc meeting. i think there will be dovish rhetoric. they're trying to make it slow and gradual not upsetting the markets. the markets is looking ahead. even if rate hikes don't come until 2015 or later, the rates are going up. the bigger story is what's in place. that means the opportunity cost of owning gold is going higher. i do think the bias for gold might not be a quick drop the way it was today, but i do think the bias over the coming quarters and years is still probably a little bit lower. >> mike holland, are you buying stocks right now and which ones? >> absolutely, larry. as we've been talking about for an extended period now, stocks back in marve 2009 were ridiculously undervalued. after 150% move they're still attractive. i think the big classy names are the still great place to go because you can get them at 10 and 12 times earnings. apple's yield on its stock is

higher than its yield on its bonds. we've talked about that before. stocks are still at 10, 12, 14 times earnings. ridiculously priced if we're going to have continued growth with inflation, which is what i think we're getting out of china, japan and the u.s. in continued years. >> continued growth with inflation? >> without inflation. without inflation. >> i was going to ask you if you agree with that. i'll ask you what stocks or sectors you are buying. >> we have some encouraging signs in the u.s. and the global economy. business confidence around the world. i think it was really important that we saw august numbers improving, confidence improving despite the fact that we had higher interest rates, despite the fact that we were starting to get more noise out of syria, despite all the political noise coming out of the u.s. and europe. business confidence is improving. historically that's good for stock multiples. it's also good for the real economy. it tends to be a leading

indicator. with that economic back drop and with the stock buy backs we're seeing in the u.s., i think we'll see equities coming higher in the coming years and years. i don't think the tapering is going to stop that. >> higher interest rates, larry, and higher multiples. i think that's exactly right. >> higher interest rates and multipl multiples, we'll get stan to thaens. no wonder she took the fifth. some lois learner e-mails look like a smoking gun in the conservative irs scandal. we're going to be joined with the details of three nasty new e-mails. i'm larry kudlow. we'll be right back. uhh, it's my geico insurance id card, sir. it's digital, uh, pretty cool right? maybe. you know why i pulled you over today?

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finally the irs has maintained that the political scandal wasn't politically mow the vitted. wall street journal highlights several e-mails from possible ring leader lois lerner and it suggests that the targeting was, indeed, political. joining me to talk about this is jay secalo, the american center for law and justice. thank you, jay. nobody knows this better than you. let's just go through it. first one, let me see, february, 2011. first one, the tea party matter is very dangerous, lois lerner e-mails some of her high

command. her high advisors. now if the tea party matter is very dangerous, what is she talking about? >> well, she was concerned that the tea party cases could be used possibly as a vehicle for future litigation regarding the citizens united case. she says that in an e-mail. she also says in the e-mail that the tea parties are so dangerous that the cinci shouldn't be handling these cases, that counsel must get involved in this. she then gets another e-mail, there's a series of three of these as you mentioned, but the idea that the tee party case is very dangerous. she talks about it coming out of cincinnati. she said it in all caps, not. >> she's basically refuting the entire irs narrative. >> correct. >> including her own before the fifth so you're right. we've got another one. this is great fun. july 10th, 2012, okay? you've got e-mails from

staffers. the senate democratic fundraising committee is very concerned that the tea party conservative groups are getting money and they're not and so lois lerner says in an e-mail, well, perhaps the fec, the federal election commit fee will save the day. huh? what does that mean? >> she was in communications, number one, with the fec lawyers, which was a violation of the internal revenue service as well. she was sharing taxpayer information. that's number one. number two, my colleague, david french said today, she actually didn't have to wait for the fec to save the day because, larry, she stopped approving the c 4 applications of the tea party groups. she did not have to wait for the fec, she did it herself. she did it illegally, she did it unconstitution unconstitutionally, she violated her own statutes. remember, they went stone silent on approvals by 2012, completely stopped. >> i've got to zip through the last one, june 2012 there's an e-mail.

>> my favorite. >> this is great. lois lerner said they've changed the procession, blah, blah, blah. the fact of the matter the process went on for two more years. the second fact of the matter is from dave camp's ways and means committee, may 21 gs, 2013, that's a few months ago, 56 conservative groups have outstanding applications not done. they don't know if they've changed anything. >> let me tell you this, in addition to applications being outstanding, we were still getting letters in may of 2013 requesting information, follow-up information, more intrusive information from our clients. as many as a few months ago the irs was still engaging in the conduct that got them in trouble. she said this will be a quote, unquote, we'll get dinged on this, as if it's going to be a small matter. she ends up losing her job although the american taxpayer is still paying lois lerner now.

>> still financing her. i don't know, you know better than i do. >> makes the case a good case. >> these are all pretty close to being smoking guns. thank you. jay, you're the best, absolutely the best. that's it for tonight's show. thank you for watching. we've covered a lot of ground. i'm larry kudlow. look forward to tomorrow evening. please watch us then. vo: two years of grad school.

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>> in this episode of "american greed," >> in the world of financial fraud, you don't often find the story in which the central character is quite so mysterious. >> financier, martin frankel, lives in a mansion, stays up all night, and is rarely seen. >> here was a guy playing with hundreds of millions of dollars who nobody had ever heard of. >> then one day, the mysterious mr. frankel vanishes along with 200 million dollars. >> they had no idea who this guy was, and they had no idea where he was. [ music ]