tough day. i'd like to say there's always a bull market . good evening, everyone. i'm larry kudlow. this is "the kudlow report." we're live at 7:00 p.m. eastern and 4:00 western. tomorrow president obama will nominate dr. janet yellen as the next chair of the federal reserve. let's go to steve gleason. this is not a shocking surprise, is it? >> no. the surprise is it took so long to get here.

for a while larry summers withdrew his nomination. janet yellen was the odds on favorite. larry summers was in front in the summer and now it's back to janet yellen. now it's official. at 3:00 tomorrow president obama in the east room will make the announcement. ben bernanke will be there. janet yellen will be there and they'll announce that janet yellen is the first female ever nominated to be the fed chair. >> i'm glad of that. steve, let me ask you. i know it's right off the top of your head. will there be any changes in a janet yellen fed? >> i don't think so. i don't think there will be a big change, larry. i think janet has generally supported the policies that the fed has. i think she's felt for a long time that high levels of unemployment have necessitated high levels of federal reserve stimulus and i also know that she would probably be a person

to run the committee very much like a committee and not a very strong leader in terms of imposing her will on the committee. i've seen her basically change her mind and support the way the consensus is even when i know it hasn't been what she has particularly wanted. >> what i was really thinking about is with the greatest respect, janet yellen is a very brilliant woman. she's married to a nobel prize winner. with the greatest of respect, we have been calling her the queen of the doves. i want to ask you whether you think money would be easier, if janet yellen would be more focused on the employment, participation rate, unemployment rate than she will be on the inflation rate? >> you know, larry, i think at this point in time given the circumstances of the economy as she sees them, i think she'll be very focused on the employment. i'm pretty sure she doesn't see an unemployment problem.

she has opposed greenspan and you supported much more against inflation because she was concerned about it then. given the circumstances she thinks she's been neutral. i don't think she would press the accelerator anymore. >> pressing the accelerator anymore. i don't know if it's a consensus or not, steve. i don't think you're going to get any more bond buying. i don't think you're going to get any paapering of the bond purchases in october, november, december, probably not until next year. that's because the economy looks like it's soft. that's because employment looks like it's soft and, steve, as you well know, that's because fiscal policy is in such disarray right now. shut down and the like. we just don't know what's going to happen. in all likelihood she is going to look dovish because there won't be any tapering down of the bond buying. >> here's what i know, larry. i know janet is on board with

the plan announced in june but also feels very much as the plan announced in june, the economy did not perform as expected and there will be a debt ceiling on the financial fiasco. i know she felt it was justified not to taper. in those circumstances, again, i don't think she sees herself as being super easy. i think she sees herself as having policy that's commensurate with the underlying weakness of the economy. >> by all reports she was one of the key architects, one of the big three, you had bill dudley at the new york fed who was the permanent vice chaer, mr. bernanke, of course, the chairman of the committee and janet yellen. they were known as the big three doves. as long as they stuck together the policy was going remain easy. >> that's accurate. i think that's true. she's a big supporter of the policy. and i think she would say to you as she always does in very plain

english, she would say unemployment is way higher than it should be, inflation is very low and there is a very strong case to be made for the policy the way it is. i'm just saying that she has a very simple equation in her head. by the way, she has written a very important paper, these very complicated equations that back up her feeling. >> i hope she gets backed up. last one, steve liesman, does janet yellen care about the dollar exchange rate? does she care about the exchange rate? >> i think that she does care about the dollar exchange rate, but i think she would disagree with you, as does i think, larry, no disrespect, the consensus of the board that the dollar should not be the focus of policy for the federal reserve. >> i understand. that's been true for decades. that's why those guys are all wrong. that's why their models are wrong. don't move a second. we have alex young with s&p capital i.q. and brian kelly

founder of brian kelly capitol. janet yellen. does this change your investment strategy? >> no, it doesn't. the best thing is we have some kind of certainty coming out of watching ton. that's t washington. i think everybody expected it to be yellen. easy monetary policy. taper is off the table. at least six months. at least six months into 2014. i don't think there's any question about that. >> this morning you were writing about the dollar and gold. how will that be affected under janet yellen? >> dollar goes lower and gold goes higher. >> that simple? >> yes. >> that's what easy money does. they don't care about the dollar. i get that. alex young i want to ask you the same question but a little different spin. how does the stock market react to janet yellen. stocks have been in a lousy mood. we're talking about that. what does yellen do? >> well, i mean, i think there's potential that the news is greeted favorably. part of that is that we're so

over sensed. as brian said, dovish, it pushes out the taper. we knew she was going to be dovish. i think a lot of that was going to be expected because of the fiscal mess. >> this can be good for stocks in the short run. she's an inflationist. that's the role she would play. >> i think overall it was widely expected. that certainty may be, you know, a positive distraction for stocks briefly at the open, but i think the tension is going to revert back to the fiscal problem. >> won't the fed keep pumping in extra dollars, extra cash by buying bonds to protect against the fiscal problem? we don't know if the government is going to be shut down. we have no idea if the debt issues are going to be resolved. from what i gather following this as i try to do, they want to be an offset. in other words, if fiscal policy is somehow tightening or confusing, the fed wants to cover that with lots of cash. >> right. there's no doubt. they've been acting as a shock

absorber. >> yes. good word. >> ease the policy because of all of the fiscal uncertainty. bernanke cited that. the problem is a lot of that is in the market. that's why the s&p is only down 4%. unfortunately future direction will be determined not by the fed but by the politicians. if they can get this wrapped up quickly, i think we can move on. it looks increasingly likely that it can move into next week and if that happens unfortunately stocks have further to go down. >> want to bring in cnbc's washington correspondent, john howard. good evening, john. why now? actually, not now. it's going to be 3:00 p.m. tomorrow. he had a press conference today. why do you think he's waiting? >> i think he had a different purpose to his press conference, larry. he's been waiting a long time to make this appointment. a lot of people are wondering why it's taking so long. i think the president decided that he needs to go ahead and move. ben bernanke's due to leave that

job in just a couple of months and after the crash and burn of the larry summers idea, which that was the president's first choice, i think he's decided that even though we're into this mess over the shutdown and debt. we have to have senate confirmation hearings. >> somebody told me timothy geithner was his first choice. i heard that geithner was offered the job twice, once before summers and once after summers. that is mere speculation. why do you suppose he waited to long to announce janet yellen? let me take that angle. >> i any the main reasthink thee wanted larry summers. it was mishandled by the white house. they let the summers idea float out before he was prepared to act on it. they got some resistance from democrats. once that resistance became more

vocal, then he decided himself that his position was untenable and he had to pull out and go to plan b. >> do you expect any resistance to confirmation in the senate? >> well, i expect some. you've got some --an net yellen is considered dovish and somebody who will continue bernanke's policies. there's a lot of conservatives in the senate who don't like that and will announce that displeasure. janet yellen is nothing like the lig lightning rod that larry summers was. both summers and geithner were so closely htied with obama. >> steve liesman, are you still out there, buddy?

liesman is gone. i'm going to go with you on the set, brian kelly. do you think janet yellen will be asked, forced during her confirmation hearings to defend the whole policy of quantitative easing? >> sure. >> it's 100 years old. we have never seen the likes of this kind of policy, pouring money in, buying bonds, expanding the balance sheet to ruffly 4 trillion dollars. will we get a full-fledged explanation and scenario of quantitative easing. >> i think it will be asked. nobody has ever done this. you look back to get historical precedence. it's unprecedented. i think we have this. the irony of this whole thing, of what's going on in washington is the tea party wants less spending. what they're also fighting against is the federal reserve expanding money supply but that's what they're forcing the federal reserve to do. >> the greatest thing about this is all during the elections in

2012 really the entire republican party asked bernanke for easy money, inflation that never happened. >> right. >> i'm just saying, if you look at the latest inflation reports, it's less than 1.5%. in fact, if anything, inflation is trending lower. >> disinflation. >> the entire republican party, not to speak of the conservative movement in general, was beating bernanke up in general because they felt what he did was inflationary. randy, heard you're out there. university of chicago professor, former federal reserve governor. you're not surprised it's janet yellen, are you? >> no. i think the president made it clear that janet was one of the people that he was vetting and i'm glad that finally we're making progress. we have a nominee. >> having a nominee. what is your assessment of janet yellen? >> well, i work very closely with janet while i was at the fed from 2006 to 2009.

she's someone who has been battle tested in some of the toughest times in terms of both financial meltdowns and in financial crises. she's someone who's been a very steady hand during that time and as i think you were describing, she is likely to continue the same kind of policies that we've been seeing which have been providing a lot of liquidity to the system but as you said have not resulted in -- >> have you ever turned to her at a board meeting and sort of quietly said, you know, janet, you're going to cause inflation. you're always too easy. you're too dovish? did you ever say that to her? >> no, i never did. >> did you ever think of it? was it a subconscious thought? >> you know, one of the excellent things about janet is she was the head of the federal reserve bank of san francisco when i was at the fed. when she would come to the

federal market committee meetings she was always very well prepared. she always discussed data and analysis so it was never -- it was never ideological, it was always about the data and interpreting the data. now obviously people can disagree with that, interpreting the data, but it was always about economic analysis. >> there's talk that the federal funds rate, which is i guess the ultimate policy weapon, the more traditional weapon, won't start going up until early 2015, okay? that's been the talk from a lot of people from inside the fed who are talking. do you think janet yellen changes that? do you think it would be pushed back to late 2015, maybe even 2016? >> i think it would really depend on the data. if the economy starts to come back and we all have our fingers crossed that it will, the fed will move as the economy's coming back. but if the economy continues in

this sideways slide it may be a lot longer than 2016 and 2017 if we don't come back. >> they may not tighten in my lifetime. alec young -- >> talk to you about that. >> i think there will be an expectation tomorrow when this news is ma trib cue lating that it will be a longer push, that, in fact, the end of the bond buying will be postponed well into next year, like the year in june. no way, well into next year. and the rising fed fund rate, well into 2015, well into 2016. is that good on hooks in would you buy things on that basis? >> not necessarily. i think a lot of that is priced in. i think that people thought that yellen would get this nomination. people knew she was more dovish. more importantly, the fiscal mess in washington has everyone pushing out tapering anyway. not yet, but we could be looking at a pretty substantial thing.

this may provide a nice distraction for a few hours, but when you have this big of a risk facing you in the face, i think investors are going to quickly revert back to that. >> you're a stock market bear. you sound very bearish. >> i think in this physical situation we are. it's not having any lasting damages. assuming we don't get into the debt ceiling default. >> the default. >> larry, the problem if this goes on much longer, it starts to take a bite out of fourth quarter earnings. >> let's say it goes on a couple more weeks. >> that could get a little messy. >> i think it's almost inevitable it will go on another four weeks. >> i think that would be messy. our economists think the next two weeks, 20, 30 bases points. you get into a month, you're looking for 1% growth, 2% growth this quarter. >> i don't believe that. i'll give you the last chance.

brian kelly, finish me out. if the fiscal discussion is not resolved for, say, another two or three weeks -- >> it's the first time you saw some fear. i think you have to be prepared as an investor. you have to go past october 17th. washington hats proven time and time again, it goes lighter. i was covering this and reporting on it, the market didn't change t. didn't really go up, it didn't really go down. after the press conference the market closed at 37 points. they closed at the lows on the dow jones. why? >> there was fear out there. today was the first time that -- they realized it wasn't getting any better. >> no deal. and obama later said the white

house made an announcement that the commission, by cam ral thing, it pays you. >> the other factor in toerms of a late selloff, so if you don't get a deal by the open the next day, you're going to get hammered at the next end. hopefully this yellen, if you're right and you don't get a deal for a couple of weeks, stocks haven't priced that in yet. >> i see it as a couple of weeks. i may dead there. >> you guys are great. brian kelly, thank you very much. alec junk, janet yellen will be nominated tomorrow about 3:00 p.m. to take care of the shutdown. please stay with us. i'm kudlow.

welcome back to "the kudlow report." our other top story, the house is voting this hour to form a special bipartisan committee of house and senate members,

alleged lly to work out a deal d raise the nation's $17 trillion debt ceiling. president obama chose to continue his attacks. take a listen. >> they can design whatever format they want but it is not fair and will not result in an actual deal is ransom taking or hostage taking and the expectation the democrats are paying ransom or providing concessions for the mere act of reopening the government instead of paying our bills. >> ransom taking and hostage taking. take a listen to what speaker boehner shot right back late this afternoon. >> there's going to be a negotiation here. we can't raise the debt ceiling

without doing something about what's driving us to borrow more money and to live beyond our means. >> all right. so here to break down today's back and forth action is political reporter robert costa from "the national review." bob costa, i'm trying to figure out. i sat through this entire press conference because i was reporting it. obama said he would negotiate after the continuing resolutions and the debt ceiling was going to finish. then he said he that he would take a short term cr. does that mean he would negotiate after a short term one? >> in spite all of the smoke and fire, you see speaker boehner and president obama express a willingness to sit down and have some kind of budget talk. that's significant because if there is a short term debt limit next week, we want to have it.

>> you read that as obama with all of his rhetoric. if there was a short-term deal that the president would be willing to talk to boehner? that's how you read today's zmentsz. >> if you look at the press conference, they were not asked to do any short term limit. they want to get that over with and then enter into these talks with boehner about how to solve some of the larger fiscal issues. >> how will boehner and the republican caucus react? do they want to get it over with? >> boehner needs to convince his conservative members that these kinds of talks with the senate president and the democrats is worth moving in that direction even if they have to pass a clean exception. >> robert costa, leave it there. we appreciate it. i think the speaker will have

something to say. take another listen. >> frankly by refusing to negotiation, harry reid and the president are putting our country on a pretty dangerous pa path. listen, there's never been a president in the history that has never negotiated over the debt limit, never. >> just what will get the democrats to the negotiating table. former omb chairman, rob portman is developing a bipartisan deal on his own. is it too late to brake your impasse, with whatever it is. senator, thank you so much for your time. i just want to ask you. we've been kicking this around. you're smarter than we are here on the panel. the president was ambiguous today. he said he would take a short term continuing resolution and a short term debt increase, i don't know, six weeks, he didn't specify, and then he said, and

after we've got these things he would be willing to negotiate but no one figured negotiate the short term, when, how, why? how do you read this? >> it's just ridiculous that the president won't sit down and talk with us. john boehner made a good point, larry. you know well i worked for two presidents, bush xli and xliii. it's not something that they like to vote on. our constituents get it. they understand the federal krart won't be restructured. so, he has to silt down and talk and negotiate. give me everything i want and then i might negotiate later. all we're saying is yes, we had to open the government and extend the debt limit. we've already passed that and

the president has signed. do this in a way that everyone can understand. >> let's talk about the savings on the spending side which you have in your packets. you want to keep the sequester levels, the budget levels for at least another year but you also talked about obama's spending cuts. i think you're referring to the cost of living a justment entitlement. do those numbers add up to something significant? >> larry, we had an opportunity here to make lemonade out of lemons. you have a tough situation. the government is shut down. we're approaching the debt limit. let's do something. by the way, let's do something consistent with the president's own proposals because in his budget he has laid out over $600 billion of changes on mandatory spending, which is the 65% of the budget and the growing part of the budget that we have not touched in the last few years. and let's use the president's own proposals. they're not in my top preferences, they may not be

yours. these are proposals the president has fully vetted. he's preferred in his budget. you have to make some progress on reducing the growth in that spending. if we did that, i believe the markets would respond very favorably. i think businesses and families would have some certainty. i think we would know we're actually dealing with the underlying problem. >> how about the tax simplification and reform part which really caught my eye? i hear a lot of root canal talk, senator portman. we're going to cut in, cut that. debt. default. all of this other nonsense. how about some pro growth? how about getting the economy from 2% to 4 or 5% sfwh. >>? >> absolutely. also in your budget you talk about the need for tax reform. his bumming get last year for the first time said revenue neutral which is urgent. let's also set up a process.

i think we can do it in a couple of months. let's face it, we know what we have to do. it's lowering the rates and broadening the base. making it simple. he and the president have already agreed. we can add that debate. let's set up a process where the committees are required to report out tax reform, take it to the floor, let's set a deadline for that. this would be not just a package where we're looking at the spending side, which we have to do because on the mandatory spending side you'll continue to see huge increases of spending that are not sustainable. second, look at growth. we know we have to do that. deal with the larger part that's been untouched. so you've got some spending reforms. the obama entitlements, cost of living adjustment. you'll keep the lower budget

caps. you'll have pro growth tax reform. it all sounds pretty good. the question, senator portman, is it too late? has the train left the station on this? what can you do as one individual on this point? >> i don't think it's too late. i've spoken to people on both sides of the aisle. they say, okay, we will live to fight another day on some of these obama care issues. there's two sweeteners. one is absolutely ensuring that we have income verification in the exchanges which, as you know, is a big issue. secretary, why not the senate, if over 70 democrats and republicans said it -- it is very popular.

it is pro growth. it will help us to keep the medical device companies. there are some things you could fit in here as sweeteners. we want to keep the discussion going. i do think there's a sensible approach here. look, we're not going to solve all of the problems in the next week. that's why putting off the natural process was unnecessary. >> great stuff. senator rob portman of ohio. good luck. >> thanks for having me. >> coming up, we'll get to their panel. can there be any deal if the president still the refuses to negotiate. let's hear what sam says about the president's tactics. >> the president sits on high and says i will not negotiation and everybody is supposed to lay down. bush never got away with that. eisenhower never got away with that.

clinton never got away with that. what makes that man different than anybody else? all right. don't forget please. free marked dots capitalism. i'm kudlow. we'll be right back.

♪ "first day of my life" by bright eyes ♪ you're not just looking for a house. you're looking for a place for your life to happen. trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron 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 of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. make my mark i wawith pride.ork. create moments of value. build character through quality. and earn the right to be called a classic. the lands' end no iron dress shirt. starting at 49 dollars. welcome back to "the kudlow

record." after months of speculation, it's official. janet yellen will be the next leader of the federal reserve. the white house said this at the top of the hour. if confirmed yellen will replace bernanke who's head of the fed and it ends in january. president obama will make the announcement tomorrow at 3:00 p.m. eastern. janet yellen and ben bernanke are expected to attend. according to a higher opener on wall street tomorrow, quite possibly. now before we break, we heard former omb director turned ohio public senator rob port man not allowing. did president obama leave the door open? let's talk. you have former clinton white house and cnbc contributor, keith. jonathan strong of the national review. budget expert, steve bell as a

bipartisan policy center for brookings institute. >> john, if you look at the press conference today, president obama said i'm going to pass some kind of continuing budget resolution and debt limit increase. it will either be short term or long term, but i'm going to pass it and it's going to be clean with no amendments and changes and basically john boehner shot right back and said, over my dead 3w09dsy, all right? who's going to win this? >> both sides think they're going to win. you saw obama seem to open the door. it was sandwiched in between him calling republicans hostage takers, ransom takers, that kind of thing. the bears slammed the door back shut less than an hour later. in the meantime i had a talk to several republican members and aids who thought this might be a path forward. it may be that they need to fight for another few days until

it becomes right, moral path for hinl. >> i made it shorter. i see. >> john boehner also issued a very tough statement. how do you see this playing out? i'm looking for end game and i can't see the end game out. >> unfortunately, larry, either side knows what the brett skirch is. he would he negotiate on the debt ceiling or the resolution. he is willing to negotiate once they've funded the government. i think the ultimate end game is john boehner has to vote right now to pass a clean bill for the cr. the dubt ceiling, i think the pressure will be great for the by the kmuch nilt at this and elders, as the days goes on, that he has to make a decision. >> i think everybody is.

steve bell, welcome back to the show. it's been a while. i want to ask you from your budget experience, president obama today really used two things. he talked about default. government default. i want to ask you, there's a difference there. i'm not sure people understand. there's treasury securities, treasury bond default which i think will never happen in this country. the cash flows were there. or every single account has to be financed in the budget. is that what he refers to when he says government default. >> i thought he was referring to the first and that is because i had it two days. that, of course, everyone of the glaziers be catastrophic. we get paid 5 million transactions after treasury. these are bills we oh. people, workers, in the bur rk kra si.

it will be very division toond do some intelligence. more important to me is i don't see the opening that others see and i see the short end of the bond market in the form that was issued today at about twice the level that it was trading at yesterday. that tells me there is some real nervousness. i think we've still got, just like you said, two weeks to gloat. >> we've got 240 billion some odd every 34079 for tim could he 257k9ss. 35 bill says it's close. we could service our dent, no sweat. obama is being a bit reckless by having so many pets and talking fw defaults. that ain't going to happen. >> i agree absolutely.

i think it's a talking point and it's a way to put pressure, maybe a little bit of fear in the markets. the markets start to panic a little bit. >> can i just -- i don't care. keith, look at. i'll go to you. why don't you care. why don't i want to avoid this default. we're not going to default. i'm going to welcome the republican party in to solve this. why can't he do it instead of pounding the held or scaring the held out of people in the economy. >> i do think the president said very clearly, he did not want a defult. he did not think the united states government could do that or would do that. >> there's ner south concerning that there would be a bad fun

fish. if it's a surrender, how are we supposed to be able to negotiate anything when john boehner thinks it's you have to do something that you're not supposed to be. >> it's a tough call. sorry you don't have a chance to. up next often obama care rollout has been a technical disaster. jon stewart went after hhs secretary. watch this. >> we're going to do a challenge. i'm going to try and be download every movie ever made and you have to sign up for obama care and we'll see which happens first. >> okay. >> announcer: news alert is sponsored by expedia. ht now. hero: (laughs) and i just go? ht now.

this is for real right? this is for real? i always said one day i'd go to china, just never thought it'd be today. anncr: we're giving away a trip every day. download the expedia app and your next trip could be on us. expedia, find yours. i put in the hourswhere i am today by luck. and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald

was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o. [buzzer] dangnabbit. geico. fifteen minutes could save you...well, you know.

now people are learning more about obama care, it turns out most people around the country will be paying higher premiums, much higher premiums. in fact, other presidential promises have been broken with obama care. in fact, this whole story might be a major big government bait

and switch. let's bring in the managing editor of think progress and charles cook of the national review who is out today with a new piece called obama care snake oil. johnny, i'll go to you first. the verification thing broke down, the personal security thing broke down, the accessing the computers and the software program, you couldn't get in there, that broke down. nobody knows how many people signed up, they just don't know, maybe nobody signed up. now in the private sector somebody ran an operation like that, they would be fired. why has not ms. sebelius already been fired. >> she's probably not being fired that other people won't be fired. she works to the government and the government works to a different standard. it can borrow if it spends more than it has. if it taxes you, it can use its power and violence. this was predicted for a long while and now it's come to pass. >> she is the ceo of this

operation. if the ceo in the private sector presided over this kind of computer -- this is just a gigantic computer glitch. it's also a glitch of promises we're going to get to in a second. how is she surviving? why does obama keep her on? what's she doing to help? >> larry, look, in a perfect world where there are no political hurdles, where all funding requests get approved and states are running through exchanges, yes, you'd want to think you would have a smoother implementation project. why sebelius is still there. i ask why was mike lovett still there when they did medicare part d. >> i blame the bush administration. i want you to answer this one. i want you to answer this question. she's had several years to put

that together. i don't care about mike levitt, i don't care about the drug program, i'm talking about obama care. >> yes. >> she's had several years to put that together. why is she being kept around after these screwups? >> she's being kept around because this is week one of a 24-week process. what you have is interest that nobody could have anticipated. millions of people viewing the site. yes, you would hope it would be glitch free, but that's just not reality. larry, when they did g mail they rolled it out on an invitation basis. you have websites going down all the time because of demand. >> all right. all right. all right. >> you've got to make it work. >> enough already. you didn't answer the question. you haven't answered one of my questions, igor. let me go back to charles cook. this was supposed to lower your premiums, this was supposed to lower health care spending, this was supposed to lower budget deficits, supposed to let you keep your doctor and let you keep your insurance.

none of those promises have been kept. why is that? >> well, you know, i think what we just heard from igor and what we heard from kathleen sebelius last night is very poor. what i will get to is this, you can't necessarily judge this program just by the first one or two weeks. >> exactly. >> what you can judge it with though, igor, this isn't exactly going to help your case, is the promises that were made. when the left tries to sell big programs like this to any country, this is true of the 1911 insurance act in england, it's true of medicare and social security as well, they tend to lie. they tend to understate how much it will cost and overstate what it will do. the president made very clear testable claims about what would han, right, since 2000 seven. it was not just going to lower premiums for some people, it was not just about fairness, it was not just about insurance, it was going to lower premiums for absolutely everybody. you are supposed to see headlines like we did in the "san francisco chronicle" this

week which said obama care's winners and losers. >> and you can keep your doctor. you can keep your insurance. this is the stuff that bugs the heck out of me, the promise sz not kept. people are on to t. i'll give you the last word, charles. >> no, it was very obvious in the beginning that what was being promised couldn't possibly be delivered. people like ezra clyne and jonathan cohn and jonathan chase have explained why you can't have obama care and all of the promises that were made. i think this administration needs to be nailed to the wall for lying to the american people. >> the premiums are lower than they had projected. >> they said, everybody, igor. >> charles, if you want to look at a 2007 campaign promise and compare it to that, you can do that. >> we have to go. >> nancy pelosi on "meet the press." >> charles and igor. now, we have to do some more stock market work. there was another big drop today unfortunately. the tech stocks took the worst

of it. the question is, is it about the government shetdown or is it about the economy and profit worries. we'll ask our stock experts. please, stay with us. >> announcer: cnbc program is sponsored by american airlines. the new american is arriving.

welcome back to "the kudlow

report." i'm jackie deangeles. the dow took a hit. the government shutdown drags on. it was the nasdaq taking the brunt of it today. the nasdaq is down 75 points or almost 2%. facebook, one of the biggest losers there, down nearly 7%. facebook, the biggest one day loss in a year. tomorrow the markets will be digesting the news that janet yellen will in fact be nominated to the next fed chair position. "the kudlow report" will be back right after this break. [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪

♪ [ male announcer ] eeny, meeny, miny, go. ♪ ♪ more adventures await in the new seven-passenger lexus gx. lease the 2014 gx 460 for $499 a month for 27 months. see your lexus dealer.

after months of speculation, the white house making it official tonight janet yellen will be the next chair of the federal reserve. president obama expected to make the announcement tomorrow at 3:00 p.m. eastern time. let's bring in cnbc contributor carol roth. >> i'm a hawk, not a dove. i'm not a big fan here. this will give her the excuse to obviously keep printing and with the shutdown they'll say, with all of the impact it's had in the economy, she'll have that excuse to keep printing. i'm of the perspective we need to get back to t. i'm not happy about this appointment. >> she is the queen of the doves. i say that with great respect. she's a brilliant woman. >> sure. >> but i rather agree with you. is this the right time, however, to lean as a dove? >> i don't think it's the right

time to lean as a dove. as an advocate, i think i've advocated with you. i think the fed needs to get out of the way. i think we are hurting the middle class. i think we've seen an epic transfer of wealth from the middle class to the wealthy. we've kept the artificially lower interest rates. it will go on. >> thank you. carol roth, sorry we didn't have any time. that's tonight's show. i'm larry kudlow. thank you for watching. we will be back tomorrow evening. the lands' end no iron dress shirt. starting at 49 dollars. is that true? says here that cheerios has whole grain oats that can help remove some cholesterol, and that's heart healthy. ♪ [ dad ] jan?

20 years with the company.hool. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far. so now i'm supposed to take a back seat when it comes to my investments? there's zero chance of that happening. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today.

at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.

>> narrator: in this episode of "american greed"... could this man be brooklyn's own bernie madoff? >> people who lived in that neighborhood never conceived that this schlubby-looking guy was going to hurt them. >> narrator: because, unlike madoff, philip barry's no fancy billionaire flaunting the high life in front of his victims. he's one them. >> he was wrapping himself in the mantle of the hardworking work ethic of that neighborhood and using it to lure people in. >> narrator: and he's quietly building what may be the