new economy stocks we'll be focused on later on tuesday. i like both of them ahead of the corner. one needs to raise money. i want world domination. i'm jim cramer. i'll see you monday. train wreck rolls on. tonight new promises from the white house and growing dissent from democrats. should republicans continue pushing for delays or just liet the president's signature health care law collapse. rand paul placed a hold on janet yellen bid to serve as the next chair of the federal reserve. and new problems for the budget deal. harry reid and even some republicans are now talking tax hikes. don't do it, gop, it's a big mistake.

get this, the president doesn't even think we need spending cuts. that's all. listen to what he just said a few hours ago in brooklyn. >> session with cutting just for the sake cutting hasn't helped our economy to grow it's held it back. it won't help us build a better society for your again regulate. and by the way, it's important to remember, for those who are following the news, our deficits are getting smaller. they have been cut in half since i took office. >> unbelievable. president doesn't want spending cuts, democrats and even some republicans want tax hikes. not good. all those stories and much more coming up in the kudlow report beginning right now. good evening everyone i'm larry kudlow. this is "the kudlow report". we're live here at 7:00 p.m. eastern and 4:00 p.m. pacific. the obama administration is

making bold new obama care promises this evening. the man charged with fixing obama care has broken site, former omb acting director said the website's problems are fixable and get this. he's tapped one of the contractors that helped build healthercare.gov in the first place apparently to fix it. working down a so-called punch list. it's supposed to include more than two dozen must do repairs. he promises the site will be running smoothly by, get this, the end of november. seems a little ambitious to me considering what health industry leader told us last night. take a listen. >> i called who i think is the smartest 834 transaction guy in the city, the smartest back door guy i met in 40 years. this problem is worse than i thought it was. i asked him how long do you think it will take to fix the back end so we get an acceptable error rate so we can do

automaticed processing of thousands of applications coming through every day. he said a year. >> now let's go to bertha coombs. been following this obama care roll out very closely. bertha, good evening. who is right and how realistic is it to promise the website fix by december or so given the magnitude of the front end and back end problems? >> that's the big question. i'm told that the pronunciation for the president's adviser is zientz. at any rate on the call today he said they identified the flaws during this tech surge. if you think about it over the last few weeks they have been looking at every line to see where all the coding problems are. in some respects by having qssi be the coordinator, they are at the heart of it. they built the federal hub, which supposedly is working very well. and they were the ones leading

up to the launch that said hey there's a lot of coding problems, a lot of issues, raising red flags but the centers for medicaid and medicare overseeing the problg. taking it away from health firms and giving it to people who do the tech may be the way to go. that's what they are saying. it sounds very ambitious for them to do it in five weeks. even if it works perfectly it creates a very ambitious time frame because in order to have your coverage begin on january 1st, you need to sign up by december 15th. coverage only begins at the first of the month and it takes two weeks electronically for all of it to be processed. so if we get a huge surge of people again here on december 1st, wanting to sign up over the course of two weeks, we may be faced with the same problem. now i asked jeff zients on "the call" how much capacity your

planning for that you say it's going to work as directed and as it's supposed to designed. he wouldn't talk about that kind of information. initially they only planned for about 50,000 users at a time because that's what they experienced on medicare.gov and on the first day they were getting 250,000 requests at a time, five times what they had planned for. so presumably they are looking at trying to increase capacity to at least that much if not beyond. >> my sense is -- okay, believe me i'm no expert. you and all those guys know more than i do. my sense is the front end can be fixed. the whole registration issue, given more capacity. but, bertha, the back end where the insurance companies are not connected really to the websites and maybe hhs. so you can sign up but it doesn't mean anything the doctor won't know nobody will know. >> they are actually connected, larry. the problem is they are getting

information that has a lot of errors in it so then they have to go back and do it manually and in some cases phoning and calling the recipients to make sure they correct all that information. i've heard mixedle results on that. it was reported last week they are not having a problem as much as people said on the 834s. it's getting better. a couple others said it's working. it seems to be mixed. not all of the applications going through have errors. that's right now at any rate they are saying, though, the priority number one, to make sure that back end will be smooth because it makes no sense to open the front door and then have nothing table to come out at the back end. >> that's a heck of a spread. i don't know. what zients is saying a couple of year. thank. bertha coombs, appreciate the good reporting. now here's some other obama care glitches coming up today. we got delays, we got democratic

dissent headlines. dire warnings this evening about the stability of obama care. according to cbs news in a states with their own health insurance exchanges more people are enrolling in medicaid than buying private insurance. if that trend continues there won't be nearly enough healthy people buying insurance to finance the elderly ill and the entire obama care system. meanwhile a big glitch discovered in washington state's exchange. an error caused 8,000 applicants to think they qualified for higher than expected tax credits than allowed based on their income level or household size. it doesn't work. another day and more insurers are cancelling policies. now nearly 800,000 new jersey residents are being told their health care plans won't exist in 2014 and democratic dissent is mounting, ten democrats co-signing a letter by new hampshire democrat jean shaheen

urging the white house to extend or delay obama care's enrollment deadline. this on top of west virginia demonstrate joe manchin's effort to delay the entire mandate for a full year. all right. lots going on. joining us now to begin to talk about this, news max media founder and president and ceo, chris ruddy whose op-ed this week makes the case for not delaying obama care, letting it fall on its own weight. chris ruddy great to have you back on the show. you saw my op-ed piece. i'm throwing in with you. you make a very provocative point. you're saying delay will really help obama care and get through and save the skins of a lot of democrats in 2014 running for the senate. why not let them stew in their own juices is that about right? >> it's not even -- i think it's a little cynical to say stew in

their own juices. they wrote it. obama said he was elected in two elections for this health care law and now he wants to change it, the democrats want to delay it. they've already changed about two dozen things in the law, made major revisions. obama, let's not forget, he delayed the employer mandate by one year. that was supposed to start on january 1st of this coming year. he had no legal constitutional authority to do that. but he knew that that's another disaster related to the law and he couldn't have two or three disasters happening at the same time. this whole law phases in over five years. it goes into 2017. so the worse is yet to come and he knows the democrats will pay a heavy price on this. so, you know, we have the republicans, the old joke in washington, the democrats, the evil party the republicans are the stupid party. you actually have republicans calling for delaying the law for another year which only helps

keep this law because it's not going to stop obama care. i say let the public see the full effects of the law and let the voters decide in next year's congressional election, senate elections whether they want this law. >> insurance contracts are being broken, the president said that wouldn't happen. losing your doctor the president said that wouldn't happen. all these glitches you can't figure out the sky-high commission rates, the sky-high deductibles, all that stuff will come out. media has basically turned against obama care so it's actually the mainstream media reporting this stuff for the first time. so, in other words, democrats have to live with this if it continues. >> well, one of the basic preseptembers he campaigned on said this would contain costs. the average person would have a $2100 reduction. i have a small business. i'm seeing 10% increase. next year could object 10%. could be in the double digits.

across the country. california, a number of the insurance companies are asking for increases of up to 25%. so, this apparently could lead to current premiums in the next few years going up by 200%. that was a congressional study. who is going to pay for it? that is another form of tax. nobody is talking about that, larry. you know, we're all talking this year there will be 300 billion, close to 300 billion in new obama care fiscal cliff taxes that's killing the economy and on top of that these very large increases and there's no containment cost within the health care industry. >> that was waived also as part of the law. let me ask you something. the shutdown blamed on republicans. okay. and i will say objectively there's reason for that. that's what all of the polls have shown. now, question. with obama care, and this catastrophic launch and all

these ongoing problems that you're talking about, does that negate the political problems that the republicans have from the shutdown? >> well i think the republicans are looking a lot better and i think they look stronger when they say we are opposing this law. i'm not so sure they should have done the shutdown. they should have done a symbolic shutdown of a day or a week where they say we oppose this law, the president and the congress voted for it previously. so it's continuing. but we want the american public to know that the republican party opposes this law. it's a bad law. >> but does this obama care, all these obama care problems, all right, we're in late october, 2013. the election is a little more than a year. i guess what i'm asking very directly can the republicans live down the negatives of the shutdown. i agree with you they shouldn't have had a shutdown with the obama care issue. does obama care trump the

shutdown? >> i think it's not just now and the website the full implementation. there's a lawsuit by judicial watch and a dentist from florida saying asking a federal court to enforce the employer mandate. can you have a federal judge in the next month or two and say the law says the employers in the country have to participate in the mandate effective january 1st. and it's obvious they are not equipped for the individual mandate let alone the employer mandate. >> all right. we'll leave it there. chris ruddy news max. should republicans continue to push for a delay of obama care or it would be wiser to let the disaster continue right up until the 2014 election? let's get some analysis from our panel of experts. democrat strategist, the "washington examiner's" senior correspondent david drucker and our pal mark simone radio

personality. a great friend of mine. david, let me go to you with some of these questions i asked chris ruddy to get your take. there is an old adage in politics if your opponent wants to hang himself please give him all the rope he need. is that what the republicans are going be doing here or come in and say delay, delay, delay. >> i think they are going to try to have it both ways. i think the key question here is can they? here's the fence they are trying to straddle. they have been telling their constituents and the base of their party has been demanding for months that you need to do something about this horrible law that will destroy private health care and what they believe is the best health care system in the world. so if republicans sit around and do nothing which politically i think is the best move their base is going to be very, very unhappy and it's not going to fit well with what they've been saying which is this law is horrible and we're the ones that want to try to protect you.

so i think that what you will see is legitimate forms of legislative oversight -- don't forget because they control the house they actually have to govern or try to govern and that means somebody has to ask questions. >> oversight is different than actually pushing -- >> it is. but it also means they are not just sitting there doing nothing. but you're right. with so many republican lawmakers, marco rubio is a voice here saying we need to delay the mandate, we need to delay the mandate penalty being it means they are not simply sitting back and they could do things that ultimately would then law and ironically weirdly they were saying during the shutdown i don't know why obama won't allow us to delay the law it will then law. i said you don't want to then law. we said we think it will allow us to make our case, bad publicity for him even though it gives him a chance to fix it. that's sort of the split personality. >> gop has to live down the

shutdown in some sense. the less they say the better. chris, one tip off that chris ruddy may be right. all these democratic senators who voted lock, stock and barrel against defunding and delaying before now they are on the delay side. i don't want to be too cynical. why do you think that is? they see catastrophe coming in 2014. >> it's too early to tell. one, i think the mistake the republicans made on the shutdown was conflating the two issues in terms of obama care and their opposition to that with the idea of the shutdown. to the american people those are two separate issues. let's keep them separate. i think for the democrats now, because we're focused on the woes of this roll out, the serious problems with this roll out. everyone is seeing that there is some serious malfunctions here. some big problems that need to be fixed. the question is can they be fixed? if they can be fixed then six

months from now, a year if now we'll be debating other aspects of what the consequences are. if they can't be fixed the political consequences will be severe and brutal for the democrats. >> he's right. i hope i pronounced his name right. anyway the group trying to fix this, front end and back end, if they get it fixed, i'll give them three months, four months, whatever. then that issue will go away. and in fact obama and the democrats could do very well in 2014. >> may i point out the greatest irony this man is a former bain executive. literally. >> who else worked for bain? >> some guy -- mitt romney. that's right. >> talked to a million experts. 1 million to 5 million the most is what it should cost, $634 million. i have a website where people can sign up. two guys in a cubicle got it up and running in ten minutes. never failed. they tried a lot of accuses.

volume. that doesn't mean anything. this cost more than facebook, twitter and iphone together to develop. i was expecting the greatest website in the world. if they can't do step one how will they provide coverage? >> the back end business is what the insurance company error factor is tricky. i agree. it's going to depend on how long this disaster continues. i think that's exactly right. and i think the republicans should step out of the way. i really do. i'll say it again. i'll say it again. if your enemy wants to hang himself give him all the rope in the world he needs. i got to go. we'll be back. we got much more work for you. coming up another gain for stocks and by the way i still think stocks are not over valued. however, today's business investment number not at all good. and then what if the queen of

the doves gets knocked off her throne. one senator trying to block her becoming the next fed chair. later in the show we'll talk about free market capitalism and this budget deal. i'm hearing republicans talking about higher taxes. it's blowing my mind. i'm kudlow. i need some help. we'll be right back.

. welcome back to "the kudlow report". another up to date for the market the dow gaining 66 points it's roughly 1% away from a record high. the s&p 500 closed at a new high today and look at the nasdaq, 57 points away from 4,000 which we haven't seen in 13 years. now the tech heavy nasdaq got a big boost from microsoft and amazon both of which rose nicely after reporting some strong earnings. durable good orders were up strongly but when you dug deeper and looked at the core number it's down slightly. worries around dysfunction in washington pushed the u.s. consumer sentiment to 73.2 its lowest level in nearly a year. economists worry it may impact the upcoming holiday season.

>> could well. many thanks. appreciate it. let's turn to our investors. we welcome back president of empire solutions and investment officer with palisade capital management. i am concerned the worst part of the economy may be business investment spending which is the great job creator and i want to note these numbers for our viewers. this is take out aircraft, this is just core business investment spending for five and ten year projects. over the past three months orders have fallen 15.5% and shipments have fallen 2%. now that didn't impact stocks today, didn't impact stocks yesterday. might it impact stocks in the future? >> well, i think the central planners in washington have to get with the plan here and provide a road map so corporate

ceos can plan beyond the three and six month stop gaps we've had to live with. it's a key component of what you're saying. it's the reason why things are the way they are and the way things are being, the way planning is being done. if you're a corporate ceo, your don't know what the cost of your health care is and we're learning it every day what the costs will be. you don't know what tax policy is. it gets back to things that we talked about for many, many quarters and many years now. >> i know i'm obsessed but i want to be objective because i think it's the worst glitch in the entire so-called recovery story and this data, business investment is still below 2007 levels and when it's adjusted for inflation it actually is below 2000 levels. goes back that far. peter costa, having said that the case i'm making is profits are rising. there's no double dip recession and easy money here and around the world makes for a modestly

bullish market. up disagree with that? >> no, i agree with you totally. i've been bullish for a year and a half. a full out blown bull and i think that with rising profits -- it's all about earnings. you know, companies are increasing earnings, quarter by quarter. the only thing that worries me is they are not spending that money. i think to have a long lasting recovery with lower unemployment i think companies need to spend money. >> besides buying back shares. >> all it does is help the shareholders. >> not real long live investment. >> no. >> croatian create factories or warehouses or creates jobs. >> it doesn't create? i jobs. it hurts the creation of jobs because the money isn't being spent on building new fact together, warehouse, buying other companies to second lie date their industries or whatever. that money is only -- to me it's

wasted money right now. being a broker and being an equity holder, you know, i like to see that but as far as looking at the markets and looking at the economy going forward they really do need to spend money on something more important than -- >> dan, are you satisfied with the current crop of profit reports, profits of the mother's milk of stocks? >> yes. so far it's actually been pretty good. our area of expertise are small cap stocks. they tend to report a little bit later. but we're seeing pretty optimistic trends. the way i think about profits and how it's evolving is it's kind of a freight train that's very slowly picking up momentum. the positive sign for an investor is that the stock market is shrinking because of share buy backs but also because of m and a activity. we're not seeing the big stock swap type of deals but within our universe of small cap companies we had a lot of merger and acquisition activity.

>> you're up over 30% this year. >> yeah. >> that's big numbers. can that continue? >> i believe so, because the relative price earnings multiples between the s&p and the russell 2000 really hasn't changed that much. small companies are growing faster than the s&p 500. >> 16 times. >> yeah. >> when do i that, this is part of my optimism. when i look at 16 times consensus earnings, 2013 and 2014, okay. that's about a 6.25% forward earnings yield. compared to a 2.5% ten year bond, a 5.25%, that's still very attractive. my argument, you tell me. i'll give the last word. i don't think stocks are over valued yet. what's your take? >> agree with you 100%. the market always has gone to a point of premium where if you're looking forward 16 pe, it could be as much as 20. so you have to look for another

25% move in the market going forward for a year. so, to me -- >> which you might get. >> it's very possible. but then once you get to that point then we are well priced. right now i don't think we're well priced. >> i don't think we're there yet. >> don't think we're there yet. we'll have not a 30% year for small cap but something for the teens. >> thank you very much. peter costa and dan we appreciate it. the stock market is counting on easy money for a long time from janet yell jones jen the incoming fed chair. senator rand paul trying to block her nomination. i'll give you my own take on that. speaking of the fed it's working on some new security measures to keep the level playing field for all investors. that story and more coming up on kudlow. please stay with us. americans take care of business.

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welcome back to the kudlow report. i'm larry kudlow. in this half hour a funny thing happened on the way to janet yellen's chairmanship. senator rand paul promised to block her nomination. can doe it? should he do it. we'll have two ordinary mainstream folks to tell us their problems with obama care.

a small business owner who has 3,000 employees and a tech savvy young whipper snapper in good health who tried to sign up on the website and even he had problems. but first up six weeks away from another deadline and another budget battle. initially it looked like republican paul ryan and democrat patty murray would wisely forego any sort of grand design and instead merely tweak the sequestration budget caps. i thought that was a real good idea. representative paul ryan telling "the washington post" he's going to focus on quote goals that are hopefully achievable. okay. that means replace the sequester with some other spending cuts. today, however, senator harry reid started to talk tax hikes all over again. that's a real bad idea. and unbelievably, budget conferree and senior oklahoma republican tom cole also talking tax hikes. that's unbelievable. we're back with our panel.

what did you tale me mark simone. why would a senior republican like tom cole talk tax hikes? what's that all about? >> it's crazy. it's insane. you know the worst case scenario is not that you don't raise the debt limit it's that you hit it. you're not supposed to hit the debt limit. republicans are often as bad as democrats they won't cut spending. you got to cut spending. we don't have a revenue problem. we have more than enough revenue coming in. we need to cut spending. reagan doubles revenue. bush set the all-time record for revenue in the federal government. republicans didn't cut spending they got to talk about it. >> you understand chris, what tom cole says there will be no tax hike going through the republican house. won't happen. >> i completely agree. >> i thought the democrats understand that. why is raid saying everybody wants to raise taxes. >> he may be throwing i want out

as a bargaining chip. there's two gains. short term gain deadline in january. the only thing that's possible, talking about 23 days of legislative business. small deal. some tweaking aside, extend it through either november of next year or whatever it might be. but at some point republicans and democrats are going to have to sit down and talk seriously about a grand bargain. it's going to include tax revenues. not tax hikes but has to include some kind of revenue coming from reform as well as entitlement reform. >> lower tax rates. >> you have to do something. >> in return for fewer exclusions. >> that debate will happen whether we like it or not. the question is do we do it under duress which is the spending, the debt grows to a point where the decision become more difficult or do we do it at a time where we actually have some leverage over the difficult choices. >> speak of leverage, very important point. okay. president obama had the leverage

on obama care. current law is awfully tough to overturn. i thought and assumed with paul ryan giving these interviews that the gop knows it has the leverage because the sequester and the budget caps are current law. so why do anything? why do anything at all? why have grand designs? tax hikes out of the question? is there something changing here? >> no, there's nothing changing. let me tell you what's not going to happen. there won't be a grand bargain or a government shutdown in january and no tax increase. chris is right. they are going to work around the edges. maybe some tradeoff with sequester. you have flexibility within the agencies. i don't think the democrats will offer republicans anything that's going to get them to let go of sequester. i don't think republicans will offer democrats anything that will let them let go of entitlements. he's right. eventually we'll have to deal with this. the problem with any kind of grand style bargain where everybody has got to give is a,

we have an election basically in a year. when this deal is done we're in the election year. the other problem is there's absolutely no trust and very few people on both sides of the aisle that can get a deal done. >> that's a key point. this is a low trust -- that's true for immigration reform too. very low trust net. on this point, to me less is better. you gynecologist your spending cuts in place. okay. extend them. just extend them. that's all. the economy likes it. the stock market likes it. the deficit is coming down. what the heck? why get into any involvement. >> i agree. you said the first night the sequester would be the best growth program. you turned out to be right about that. i hate this grand bargain. how about a grand slug. how about not kicking the can down the road. we're here every six months discussing a debt limit raise. we have to stop this. we're so thrilled that the president was listening to angela merkel's calls.

maybe he'll listen more carefully. >> i love that. i want to go one more. you were talking about tax reform. >> yeah. >> tax reform for the moment is dead it's too complicated. >> complicated and enough time. >> if you give it a little bit of running room do you think seriously, seriously the democratic party as you know i want now would buy pro growth tax reform because i never heard the president wants higher taxes, reid wants higher taxes, i just kind of don't believe it. i want pro growth but i don't believe it's coming. >> listen, there's an element in the democratic party that clearly believes that we should have the taxes should be a little bit higher. >> a trillion dollars. >> you can argue should we go -- if we went back to the clinton tax rates the country was doing pretty darn well. that was the premise of the argument, right things were going well back then. the problem right now is when you have such divisions between

two parties and you have distrust between the house and the president, how do you sit down and actually negotiate a deal, a real deal where everyone has to give and take? unfortunately, i just don't see it happening within the window of president obama's presidency. >> i think that's right right. >> but i will tell you i think at some point it's going to become very clear to everyone that something has to be done. >> i'll tell you this. i got to close this down. >> let's go back to clinton spending. >> larry summers, former treasury secretary wrote a piece in "the washington post" very interesting and he said all these budget debates and so forth should be looking at growth. growth. he pointed out a study by the cbo, congressional budget office, if you grow .2 of 1% over a long period of time you solve social security, medicare and medicaid.

i'll be interviewing paul ryan on monday and i want to ask him does growth solve these problems. anyway, thanks gentlemen. up next is there a road block ahead for the queen of the doves. rand paul could block janet yellen's plan to be the head of the federal reserve. he has some strong reasons and i'll talk about it next on kudlow.

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republican senator rand paul threatening to put a hold on nomination of janet yellen as fed chair. he's insisting on a vote on fed transparency bill. like his father. let me give you my quick take. i don't think senator paul can stop the nomination. but his point about transparency, i think is excellent. today's divided fed doesn't have a clear strategy and has completely screwed up their so-called forward guidance. and senator paul is correct, in my view, that has too much power and it has become literally a national economic central planning agency going way beyond its historical and constitutional scope. so, if senator paul makes these points, my hat is off to him. all right. here now we bring in our great

pal chief economic correspondent for the "wall street journal". we got to go lightning round, john. i know paul won't stop the nomination but you know my views. i think the fed is too bloody powerful and i think miss yellen should be made to talk about that. >> right. well, i mean the fed in its defense has tried to become more transparent. they have for instance have press conferences every quarter and minutes that go out after every policy meeting. the problem you identified is not that they are not transparent enough it's that the message they are sending is very muddled. those are two different issues. i don't know how they solve the second issue. but, you know, i get emails every day in my inbox details of how many bonds they are out buying in the market every single day. they put a lot of information out there. the question is what are they doing is right and we can have a discussion about that. >> well, okay. fair enough. i just want to go back.

look, senator rand paul just like his father who believes the fed is too powerful and has gone beyond its constitutional bounds and historical bounds. now i know these are so-called extraordinary times but john, you would agree, the fed has gone farther than anybody ever thought they would and frankly i think that they should. >> i would agree that it's gone farther than most people ever thought they would. there were a few people out there who thought they would go this far. you know, the fed itself didn't think it would be doing everything it should. larry, i would say the problem -- i mean you say the problem is the fed is too powerful. i think one of the problems right now that we're discovering is that the fed isn't as powerful as everybody thinks it is because it's been trying so hard to get the economy going and it's not working. i mean i think the big question is whether the things that they do are really working to produce economic growth and employment. you would agree that they haven't done a great job.

>> i agree. but my point is that's because i think their policies are often mistaken and, in fact, i think the whole policy mix is mistaken. in other words, the fed can print money, the fed can produce money but the fed can't produce jobs and i think that's a fundamental issue. jobs are about regulations and taxes and things of that sort. inflation is about money. i think what rand paul will say which is what his dad always said the fed should stick deep dollar steady, keep the inflation rate down. a narrower mandate. i don't think paul believes he's going to stop the nomination. he want as conversation, john. i think that's a productive conversation. >> sure. it is. we should expect one. i agree with you. i doubt he has the votes to stop yellen from becoming the chair but this is an opportunity for him to bring up a lot of the issues you talk about. you know who agrees with a lot of what you just said? ben bernanke. he's been saying all along that

the fiscal mix is not right for the economy we're in and the policies he's offering are a pancea. janet yellen, i think, would agree with you too. she might disagree with you on your fiscal ideas but she would agree with you that the mix right now is wrong that the problems are on the fiscal side and the fed can't fix that. >> i always felt -- i got to get out. i always felt that ben bernanke has a little bit of supply side blood in him. i thought that for many years. he's a very distinguished man. history will judge whether he was right or wrong. >> he work for george w. bush. >> he did indeed. he helped promote bush's lower tax rates in the mid-2000s. i got to go. great stuff. "wall street journal report"er. appreciate it. up next we go back to the obama care roll out, train wreck. where is the low pressure? -- leadership? where is the accountability? we'll be right back on kudlow. ?

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day 25 and a new report suggests not enough young healthy people are signing up for obama care. that's exactly the demographic that's needed to finance the entire system including the older and sick people who will be signing up in droves. here now is the op-ed about his experience to sign up and also chairman of apple metro which is

the new york franchisee for apple apple applebys. you're tech savvy and couldn't get into the website. what's that all about? >> it's going to be a problem with persistence. that was my concern when i initially logged on to the website and concern that people have talked about. if we get into this adverse be debt cycle it will be a problem if young people like me don't sign up. >> up have to finance most of the system and finance the mandate for the older sick people the pre-conditions? >> absolutely. as far as it's been explained to all of us. we bear a responsibility for the health and well being of a number of people who previously haven't been able to get health insurance because they have these pre-existing conditions. but it might be too expensive and right now too hard to get in. >> i want to help those people.

i think the government should do it directly through subsidies. last question, you going to sign fun you get in? what your going to do, are your going to go for it or not >> maybe. if the sticker supplies too high it may be possible i fay penalty and roll the dice. >> zane are you going to sign up or your employees? >> don't see how. the model is wrong. the whole thing is upside down. it takes the younger people to pay for the healthier people. if you were 25 years old and just sort of getting by -- i think it's all well intentioned, don't get me wrong. very well intentioned and you were never under any kind of health care coverage why would you then spend -- i know it's 9.5%, 10% round figures of your gross to somebody else who needs health care. >> you have over 3,000 workers. so you're going to have to go

into obama care or not. how you going to play it? >> what we've always had coverage for our management people which is about 240, 250 people. these are the hourlies which we have about 3,000. >> what your going to do with the hourly? >> we've already done it. we started. we informed them what their options are. none of them have been able to get on. larry, i think the bigger problem is when it starts working because i think there's all sorts of security issues. you got this treasure trove information in every single american. nsa doesn't have that. fbi has only targets. now you have everybody. i don't know if there's enough fire walls to build -- >> will your people will they go into medicaid or go into this exchange system. do you give them part of the money and let them co-pay. how will it work? >> or they pay a $90 fine. >> up think that's the best -- >> do i think it's the best? i don't see where fib is going

to do anything different. >> is a lot of the lower end people are, in fact, they are going to be out there. >> absolutely. >> i got to get out. this is a tough one. thank you. very difficult. that's it for tonight's show. by the way we're coming to you live from washington, d.c. on monday. paul ryan, jeb bush, a whole host of people. thanks for watching. have a great weekend. we'll see you next. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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>> narrator: in this episode of "american greed: the fugitives" -- money manager spiro germenis has charm galore. >> he was very intelligent, very good-looking. >> narrator: but now he's gone. >> he was just the type of guy that -- i don't know. we all seemed to like him a lot. >> narrator: germenis' investment fund, oracle evolution, appears to work miracles, with market-beating returns. >> i was telling my friends about it. i said, "look at this. look at what this guy's doing. my god." >> narrator: what this guy is doing, the fbi says, is ripping off his investors. many of them are retirees, and he spares no one.