hours and buffalo wild wings is going up. i would like to say i promise to find it for you, a bull market somewhere. i'm jim cramer. see you tomorrow. tomorrow! after several wild days in a he ro, the market's finally calmed down today and they finished with a nice little gain. so, is the correction over? are we finished worrying about the bad effects of lousy weather and the emerging market? we're going to give you a complete update. the explosiveness in washington, d.c., today about obamacare. the cbo admits that the new health care will cost jobs, millions of jobs, and it's going to add a trillion dollars to the budget deficit over the next decade. will the president and the democrats finally admit that this thing is an utter failure? plus, the american energy revolution surges on. tonight, one of the fathers of the shale oil book is going to join us.

that is continental energy ceo. i'm going to add to "the kudlow report." good evening, everyone. i'm larry kudlow. live here at 7:00 p.m. eastern and 4:00 p.m. pacific. stocks bounced back today but only regained a small fraction of what they lost yesterday. let's get all of the details from bob pisani. good evening, robert. >> hi, larry. it was steady as she goes today after several days of turmoil the dow moved in a narrow range and moved towards the highs of the day. why the pause in the selling? the markets were very oversold and many traders are waiting for tomorrow's ism services report and friday's jobs report to see how weak or strong the economic data really is. not surprisingly the most beaten

up stocks rallied the most. etfs for turkey and indonesia and poland were all up. natural gas spiked 8% on the cold weather so exploration and production stocks like pioneer and eog were all strong today. michael kors had a fantastic report which helped retailers like fossil. reaffirming the 2014 guidance, that helped out restaurant stocks. larry, back to you. >> all right. many thanks to bob pisani. appreciate it. now, let's take a quick look at where the japanese stock market is opening. the nikkei just opened for the day in tokyo and it's up 1.5%. all right. good. so, then, is this a pause in a healthy correction? let's ask abigail doolittle.

from your work, a lot of technical work and other stuff, do you stiff a bottom or not? >> absolutely not, larry. i think that we're, at best, halfway through. from a pure technical standpoint we're seeing negative looking charts. >> so halfway would be 5%? >> at least. >> you want a 10% correction? >> yes. i think we're going below 1700. the sellers are really in charge at this point. also, i haven't heard a lot of people talking about this but i think that something has changed this year, the sentiment shift. >> just tell me from your gut what has changed. >> people are talking about it instead of buying the dip, there's no rip ripe now to sell. >> buy the dip. >> well, you have to be pretty brave i think to do that right now. >> i'm not that brave but i just think -- here, let me pause this. we're going to come back with you later in the show.

growth expectations were very strong. economic growth in the third and fourth quarter, profits in the fourth quarter s&p earnings outperformed what people thought. the market was euphoric in the second part. is that fair? u fof rick in the second part of 2014. >> that's well said. >> rip it apart if you'd like, the weather, whatever, emerging markets or wa ever has given us a couple of lousy economic reports starting with jobs, which upset people, and people are now doubting the growth euphoria and therefore they are doubting the market evaluation and the market. >> i think this has very little to do with the weather. there's lots of irregularities to jump into the report. i think what we're seeing is a repricing of risk. the fed is taking off the training wheels and investors are having to reeeville wait to

see if the economy and financial markets can ride around. >> i'm so glad to get the fed out of this business. they don't foe what they are doing. they are distorted the long-term rates. >> i agree with you. it's absolutely a good thing but right now it's painful for investors because we're seeing this shift, actually, to where bad news will be bad news, good news will be good fuse. >> pain makes you spiritually stronger. >> that's true. cornerstone. >> you're exactly right. okay. abigail doolittle, keep focus on these markets. now, here's the very big story today. the cbo, congressional budget office, released its numbers on obama obamacare, on the budget, on the u.s. economy. john harwood is joining me. good evening, john.

>> let me run through the cbo. the budget will be less than projected. that's around 3% of gdp and will remain 3% of gdp through the end of obama's presidency, better than the 10%. the bad news is more important and the bad news is economic growth is projected by the cbo to be less over the next ten years, perhaps a growth rate of 2.6% over the next ten years. that's .3% lower than it projected a year ago. now, the confusing news is it has to do with obamacare. the estimates of the effects on the labor market were that there will be the equivalent of two million fewer workers as a result of obamacare. but if you unpack that, you can see that the reason they say is almost entirely because workers with benefits under obamacare will choose to work less. now, in some ways that's a good

thing. people have more choices. on the other hand, in macroeconomic terms, fewer workers means fewer growth. highlighted in the cbo study and a concern for everybody, it's why you're seeing more and more talk about growth right now. >> john, i basically agree with your linkage there. for a worker, middle income or lower middle income worker, you have a tradeoff between the subsidy or if you get a raise, you're a higher tax rate. >> right. >> the incentive effect really kicks in. you're right. it's an incentive effect and we don't often see it. the cbo kind of changed from their original estimates a few years ago. >> yes. they project a three times larger effect than they did before and it's from both factors it's from, one, people

who don't require health insurance from their employer and it's also the fact that there's a higher marginal tax effect, it gives them less incentive to work. >> john harwood, great stuff. appreciate the update sf. now, folks, let's look at what these numbers really mean. we have health care experts, next up. and cnbc, we're going to be your home next week for curling in the winter olympics. and i and the rest of the kudlow report team are hard at work looking to make our contribution to team usa. we were at today's curling practice. and i would say that we are medal-bound. check this out. until then, don't forget, free market capitalism is the best path to prosperity. i even curled myself right up. "the kudlow report" is coming back. curling is harder than it looks. ♪

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a new report from the congressional budget office, full of bad news for obamacare and its supporters. obamacare will result in the

loss of a whopping 2 million jobs by 2017. it's a being showing numb shock number. is the president going to pay attention to this key report? we welcome back jim jordan and health policy experts caroline pearson and dr. scott gottlieb from the american enterprise institute. jim jordan, welcome back. appreciate it. i don't know, for months and months and months people are saying that the burden of obamacare for one reason or another is going to cost jobs, is going to stop hiring, is going to cut back on hours of work. now the cbo recognizes is. what happens from here? >> well, the good news is we have an alternative and leader cantor has pledged that we're going to bring it up but we already knew how bad obamacare was as far as higher premiums, higher deduct bibles, a website that doesn't work and is in

secure. a stagnant economy going forward, more deficits and more debt. the biggest thing that concerns me is this disincentive to work. that's exactly the wrong message we want to send to the american people and to our economy. the good news is, we have an alternative that we're going to bring forward and pass it. that's what excites me. >> can you just give us a brief -- just a real brief rundown, jim jordan, of the alternative? >> yes, it's going to be family centered, consumer centered, not washington centered. it's going to treat families, give them the same tax benefits we currently give companies. it's going to have real tort reform, encourage health savings accounts and not discouraging them. empowering the patient and the doctor and the family, not empowering washington, which, in my judgment, is exactly what we need and what the american people want us to do. >> caroline, what's your take on all of this? i think what the budget office basically said today is

incentives matter and that includes work and labor incentives as our own john harwood laid out very nicely. if it doesn't pay to work, people won't do it. if you lose your subsidy but get a higher tax rate, caroline, why would you do that? what are they going to do to get out of this box? that's the real question. >> well, let's be clear, larry, we never know what economist assumptions are going to be. what they are telling us is that people are going to be choosing not to work because they have an alternative. they don't have to keep working just in order to maintain that health insurance and that's a very powerful thing. if we see people having more freedom and flexibility and potentially start their own businesses and to be able to get health insurance for them and their families, that's a good thing. the other important point to make here, in the context of the republican plan, the incentive here that is driving people not to return to the labor force is

the subsidies, the medicaid expansion and premium subsidies. they stay in tact in the republican plan put forth recently. >> i want to get that straight before i bring in scott. >> our plan is patient-centered. i would make this point, too, larry. the democrats can't have it both ways. when this thing passed, the they used the cbo numbers to say this is going to save taxpayer money and now we find it's going to cost $2.5 million each year and 1.8 trillion in new spending. let's remember this, too. the one thing about the cbo still in question, what do the bailouts mean? the cbo may have gotten that one wrong as well. >> i'll get back to the bailouts in a second. first, the cbo is being looking at incentives. i don't think you have to be a supply sider to understand subsidies and taxes. >> they are looking at a very

narrow group. people transitioning out of the labor force and back into the labor force and those folks are going to stay out of work longer since they will have to undergo the subsidy. people are going to be reluctant, for example, to increase their income if it means growing your income in incremental dollars means you're going to lose the benefits. it's well more than 50%. >> you know, this is like -- this is like the problem with anti-poverty programs. it's the same thing. if you go off welfare or off food stamps or off whatever, all of a sudden you lose the benefit and if you make income, your marginal tax hike goes sky high. you have tax rates to go to work. it's the same thing, is it not in. >> exactly. subsidies -- caroline is right but it's a little less pronounced there. because the subsidies are tied more to age than income.

but it's still the same problem in that plan. >> is anything going to change? in other words, you get this estimate from cbo -- it's a shocking estimate, if you ask me, it's three times the incentive effect -- they said maybe we'll lose 800,000 jobs and now they are saying in ten years we'll lose 2.4 million. that may be a low-ball number. it's a small slice. that happens. why isn't anybody making any changes here. >> it's remarkable that the cbo couldn't arrive at this number at the time of the initial. i think it's going to go up the income spectrum. everybody has a disincentive to grow their income incrementally. >> caroline, you know, with all due respect, i still think businesses are not going to hire because of this plan. i still think the plan is so

darn expensive with the high income premiums that people are going to walk away from this plan. they dropped their estimates from 7 million to 6 million. that's a big drop. and by the way, this is an important number. employment-based coverage is going to drop to the 6 or 7 million mark each year. they are going to lose a lot of people once we get these employer-based figures coming in. we haven't seen that yet. i don't want to over look that. lower population, lessen rollment, and people are going to drop out of their plans. these are the big failures of obamacare. >> i agree with scott on all of the incentives. that's anything that you face with programs tied to subsidies for low-wage workers. the employer. ins haven't changed. the estimates have stayed the same. there's a reason that employers ari are going to take a wait and see approach.

could people be moved into exchanges where they get subsidies? that's possible. we don't see that happening in the near future with the rollout that we've seen so far. >> the enrollment is way down. cbo says they are going to get to 6 million. i've got to see this to believe it. >> me, too. >> all right. we're in the early part of february. march 31st is the deadline. more or less at the beginning of january the 3 million number was put out. jim jordan, they may wind up not getting anything close to the 6 million. the 6 million is less than the 7 million and now it's got to deal with employer-based walkouts. so, again, i ask you, when will the administration come to the table and try to try something different? >> i'm with you, larry. i'll believe it when i see it. i think it's going to be significantly less. and let's be honest. i don't think they will see it until we pick up six seats in the united states senate and the united states senate is in the

republican hands and there's additional pressure, additional push for the president to come to the table and say, this law is not working. it needs to be changed and repealed and we need to start over with something that empowers families. >> scott gottlieb, one other thing caught my eye in the reporting of this. and that is the so called bailout, the risk corridor, is going to make money. i believe the number they used was $8 million. do you buy that? i thought the insurance companies were going to incur so many extra costs as a result of changing the cancellation into the new plan that it was going to cost them money. >> caroline has done a lot of reports about this, too. they implied that the risk corridor is no longer budget neutral, they will take taxpayer money. it depends on what you think the obama administration is going to do. what they did in regulation doesn't look like it's legal. it seems to conflict with the

statute. >> caroline, people are talking about a bailout and they don't like the bailout. cbo is saying it's a bail-in. which is it going to be? >> we'll have to see. cbo is basing it on the medicare program where in fact risk corridors could be revenue generating. >> what do you make of the regulation? what do you think the administration is saying? >> when has that ever happened, though? >> in the history of the planet. >> in the history of the planet earth. all right. thanks to all of you. dr. scott gottlieb, caroline pearson, thank you very much. another winter storm. a live report on the latest blast of cold and snow and what it's expected to do to travel and business. probably the stock market, too, over much of the country. next up on "kudlow."

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we barely got through the last winter storm and now this one is hitting a huge portion of the country. the weather channel's reynold's wolf is in indiana for us. >> reporter: the last couple hours have gone from seeing a few scattered snowflakes to having this pile up in the last few hours and see two, maybe three inches of snowfall. the winter warning is in effect until 1:00 tomorrow and then the snow will coming to a screeching halt.

the cold air will remain locked in place for days to come. let's focus a little bit on the northeast and what may be coming. what's interesting, larry, earlier today there are two computer models that we follow. we follow the gsf and it was showing a potential massive storm that could bring 30 inches of noefl snowfall to parts of n england. the system would pull deeper into the atlantic. the last couple runs of the models, the gsf has scaled back a little bit and it doesn't look like it's going to be as big of a deal when it gets to the weekend. i don't trust these models when we're that far away. they are good 12, 24, 48 hours, sometimes 72 hours out but this is way too far out. we should be aware that it's a potential, know it's there and follow the additional forecast that will come out later this week and certainly by late thursday and friday we should have a much better idea of what to expect in new york, much of

new england, and for much of the eastern seaboard. >> all right. many thanks. reynolds wolf, appreciate it. how about good news for american economic growth, thanks to our incredible energy boom. our next guest is a big reason for ameri for america's energy surge and in fact he should be on the list for cnbc's top 25 most important businessmen of the last 25 years. that is continental resources ceo harold hamm. he'll be joining me up next on "the kudlow report." ♪ ♪

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cnbc is narrowing down a list of 200 to find the top 25 influential business leaders of the past 25 years. now, it's no surprise the tech giant steve jobs or bill gates leads the list but another area that should not be ignored is the unbelievable renaissance of the american energy industry. advances in drilling technologies and oil and gas recoveries have been nothing short of a miracle and for that i want to nominate our next guest to the cnbc 25 list as he's a true pioneer in the use

of horizontal drilling that fueled the oil boom. joining me is couldn't nntinent resources ceo. horizontal drilling has done what fracking has done for gas. there's a difference between the two? >> horizontal drilling, you know, goes into reservoirs that have less per mea bill tea and the same time they both happened about the very same time. >> all right. so let's go back. your vision, your vision, the hydraulic drilling, north

dakota, the dabocan, you have totally totally transformed the economy and you may wind up transforming our foreign policy as well. my question, harold hamm, is this. did the u.s. government do this or was it a surprise? did the bureaucrats have this vision or was it your vision? >> larry, for sure it has been transformative. this actually began in canada, a lot of the -- that preceded what went on here in the u.s. and certainly it's been transformative. actually, we didn't have -- we didn't see the government up in north dakota when this began. that's where we are going. i want to be as clear as

possible. viewer viewers, i am a great fan of harold hamm. >> it came from independent producers in this country. nobody expected this to happen and certainly the government was not involved at all and this occurring. so that wasn't where it came from and they are taking credit and we thought maybe they would. took them about three years to wake up and take credit. >> president has got it in his state of the union message now. he loves that stuff. on the other happened, there would be maces even more, even better that presidents of the administration would allow this kind of fracking in federal lands or in offshore. what are they waiting for? >> well, certainly a lot of federal lands that basically is off -- you know, we don't have access to. so any way, it's been an

evolutionary thing that has come about on these simple lands. basically, we, the industry, have done it without being on federal lands. >> well, there's a lot there. i have no doubt. i don't know how much reserve is there but i'm sure there is a lot. let me ask you this. you just got to the state department i think for the fifth time have okayed keystone pipeline. i mean, is it a layup to have the person say yes to the pipeline and make another big step in your energy revolution? >> well, certainly. you know, that could happen, you know, and all they have to -- all you'd have to do is approve it. it's been a disaster. they've taken all of this time, over six years in the application process has just been a disaster. it's like a judge that doesn't

make a decision. it's a very bad situation. >> here's another one for you. why can't we export oil? as i understand it, some of our oil is light sweet and that can't be refined. most of the oil we do refine is the dark, heavy kind. if you have excess oil, why shouldn't we be able to export it? a lot of congressmen are saying no. what are you saying? >> petroleum is being exported. there's to limitation on exporting refined products. basically, we're just talking about crude oil, that you can't export. so the big boys with refineries, they can export all of the petroleum products that they want to but the limitation is just on us small guys. that's where we are feeding big oil. and they are supporting exports,

for the most part. they realize that we're more efficient out there with the refining process, producing process, transportation process. >> but senator wyden of oregon seems to be against this. now, i think he's a reasonable guy but he and others say with jacked up prices the consumers would pay higher prices and businesses would pay higher prices and why don't we keep it right here at home. what's your response to that? >> well, prices actually through this renaissance have come down almost to% in most parts of the court and so it's been very beneficial. you know, taking these restrictions off, larry, it just opens the door for more efficient marketplace and certainly prices further to the consumer. >> lower the trade deficit, promo promote economic growth.

last one, harold hcamm. 10 million royalty owners across the country. not just you but across the country creating unbelievable wealth. i want to ask you, just off the top of your head, how many millionaires between the shareholders of your company, the shareholders in the natural gas companies and the fracking companies and the whole oil story, how many millionaires do you think you've created? 10,000? 20,000? 50,000? it's got to be a huge number. >> there's several that have been created. obviously the bright spot in the economy is what has happened with energy and we're the envy of every country in the world today with the energy renaissance that's gone on in america. >> so if you've created

millionaires, what do they -- they don't take that money and put it under the bed in their mattress. they use it. they recycle it. they channel it. i don't know what they might do. they might create another apple or microsoft or whatever. isn't that the way that free market capitalism should work? >> well, one thing about the oil and gas industry, everything they make goes back into the ground and certainly whatever they can borrow. so you're right, it creates a lot more businesses in the overall economy and certainly is a great bright spot. >> we're going to leave it there. harold hamm, as always, it's a great pleasure. >> larry, thanks. are the so-called emerging markets really the reason for the 2014 selloff? probably the number one person of the world emerging markets is about to explain what is going on. and speaking of emerging,

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in into. welcome back to "the kudlow report." it's been a rough month for emerging markets. china's company and their own homegrown lefty in the stakes. i'm sticking with emerging markets right now, i say just stay away. but let's ask a top expert. here is charles, former u.s. treasury assistant secretary, former institute of finance ceo and kurt partners group chairman. charles, as always, pleasure to have you on the set. look, i understand there are issues out this that are big macro issues but i'm going to try this out. you hear this all the time. brazil is becoming argentina. argentina is becoming venezuela. turkey is becoming completely unreliable, corrupt market. india is probably moving left now. in general, we don't see the

free trade, free market emerging market story that we saw in the past past 10 or 15 years. is that unfair? >> larry, it's good to be with you again. i do think that the emerging market that you mentioned is facing fundamental challenges. brazil, waited too long to start raising interest rates and they face both a high inflation rate and current account deficit which is still troublesome. turkey, similarly, high inflation, current account deficit which is not coming down and they also have a central bank which does not have adequate independence from the government and this is constraining the ability -- >> turkey was a hot investment point destination but now, if i'm pronouncing it right, he doesn't like what the central bank is doing and he wants easy money. why should anybody invest in the turkish.

>> there is still good investment strategies. i would agree with you as a fixed income plate, there are real doubts around it at this moment. i think we're going through a tough space in emerging markets. it's obvious. this started last may and all although i would agree with you that many countries do not have reform like they need to, they have not liberalized the way they need to, last may when bernanke signaled, they began the sharper reversal of inflows to outflows in emerging markets. we're seeing a second phase of that. and this is going to continue for a while. >> help comes to those who help themselves. let's take to argentina. it's a basket case. it may default. you know more about this than i do. that's why brazil -- brazil has -- there's a new president in brazil. a lot of people say that brazil is going insular and don't want

to make the tough decisions that their central bankers made years ago. >> brazil is not the open economy that it used to be. argentina walked away and stiffed its creditors years ago and is finally paying the price. the chickens have come home to roost and they have to deal with hyper inflation and they are going to have to come to some understanding with the global creditors. brazil has followed a much more responsible course but i would agree that over the last few years they have not implemented the reforms in the labor markets, they have not liberalized the economy and they have not opened up international fall trade the way they should. >> india is a democracy. the united states has gotten closer to india. i think that's good strategically. their free market prime minister is on his way out. the prospect of another gandhi winning the election doesn't do

anything for me because they have a socialist history. india is for the making the moves that we thought it was going to make. >> well, i think there's a lot of truth in that. we still have very strong corporations that operate all rnd around the world today but the prime minute officer has not been able to cut through the red tape like he thought he would. they have stabilized their vulnerability to the market more than others have. the question that you have posed is the key. what kind of government are we going to see ahead and will it bring in the infrastructure that can take place? >> liberalize is what was going on with these countries. not argentina. a lot of the others, you're right, seems to me the liberal lie zags stopped the free trade

and they may blame the federal reserve for tapering down bond purchases but i don't think that's really their problem. i've got to take a quick break. we'll come back with stock market guys who want to hear what you have to say. charles knows more about this stuff than anybody alive. we have to look at the other markets and where stocks are going to open tomorrow. we had a better day today but that could change. we'll look at your money story next up on "the kudlow report." when you order the works you want everything. an expert ford technician knows your car's health depends on a full, complete checkup.

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all right. very volatile week on wall street and it's only tuesday. the dow is adding 73 points. nasdaq up 35. s&p gained is 3 points. we've brought back charles delara and abigail doolittle. joining the discussion from somewhere out there is lee munsun and larry glazer. hello to everybody. larry, let me start with you. do you think this correction is coming to a close? abigail told me at the top of the show it could have another a%. it could decline or double again. where are you on this story? >> well, i disagree with abigail in several respects but there could be more to go here. it's interesting because we came

off of last year one of the most hated rallies and we're seeing one of the most loved corrections. when sentiment is that bullish it gives me pause that we could see further downsize. investors had the rug pulled out from under them. they were ramping up risk, ramping up equity exposure only to hit the wall with the emerging market crisis and economic data and whether, of course. so all of that creates the perfect recipe for correction, ultimately creating opportunities for all of us. we have to work through this and let the market work. >> that's the key. lynn, larry ran it down pretty good. there was some growth euphoria at the end of last year. now, i want to ask you, lee, what we're seeing now is it weather-related or was the growth euphoria just running out of steam and people are cutting and running because they went way too far and the stock market has to adjust lower because the growth is lower? is that what is happening? >> i don't think so.

you know, first of all, we're seeing earnings. they are coming up a few percentage points higher. it being looks like we're going to get something similar in s & p earnings growth. we need to wait for another few months. i'm not out there trying to rebalance all of my portfolios because emerging markets are down. i think any real list stick investor thinking long term. we need to see a trend. >> how do you know you've got seven months? what if this thing turns around on a dime? >> that's why i'm not selling my stock right now. >> that's why i think investors shouldn't be selling right now. >> go ahead. you really see more dangers ahead. i want to get your position.

>> i continue to think that the selloff will continue. i wouldn't be surprised if we go more towards true bear market territory. in terms of s10, that just doesn't make sense. >> abigail, you have to sell bonds at 2.5%. >> there's no way. i think we're going to see the ten-year go below 2%. i think that we are not out of the woods. you're talking about weather. >> 2% long -- that sin credible. >> abigail, indiscriminate buying of bonds. exchange-related trading that drove equities down to oversold in places like japan and that was the problem.

now they have to figure it out. >> i think this is a repricing of risk where investors are going towards safe haven as with bonds and gold and the training wheels are coming off of the whole fed's plan to support the economy and financial market. investors are re-evaluating. >> i'm going to buy a dinner in paris or something. >> i'll take you up on that. >> 2%, it's outrageous. charles, let me ask you this. regarding the emerging markets, which has something to do with the stock market creek, do you see the systemic risks that we saw a couple of years ago when you were so great and reporting to us about greece and southern european countries? is there systemic and banking risks? >> no, there are not, larry. we see it contribute to volatility from time to time and i also think that the necessity of rising interest rates in a number of emerging markets is

going to issue much more than many forecasters had anticipated but creating a systemic problem, i don't see it. >> is that the type of risk that the stock market is pricing in? >> i think it is. whether it is, that's hard for me to know. at the outside of this year, virtually every forecast, brazil, china, turkey, i think a month into the year it's pretty keer th clear that the decreases are going to be more substantial. it's going to go back into the german economy and i don't think it can taint systemic risks. the financial institutions are in a much longer position than they were seven years ago. >> no question. especially europe. i think that's fair to say. this is an unfair question. we're talking about argentina which i regard as a ridiculous place. their government is utterly ridiculous and so are their policies. could argentina collapse,

default, and become the greece of latin america and the rest of the world? >> no. argentina, in my view, is already substantially discounted in terms of the global market sentiment. argentina is own largely irresponsible territory. it's for the hooked into a set of exchange arrangements like greece was that posed a threat to an entire major region. >> "the new york times," the wife of the house -- she doesn't even show up to the meeting. they can't even find her and the court has gone to h ecell in a d basket. larry, what should we do? >> take advantage of the indisdiscriminate selling. don't buy what is already overbought. for example, japan is a valuation story. now it's had a correction. etfs have done a lot of damage there. i don't think you can indiscriminately say emerging

markets. ar squ argentina is a basket case. you create opportunities when you sell everything together. that's what happened. south korea is cheap. the other paces are doomed. >> what are you go going to do tomorrow? what's your strategy, real fast. >> i'm starting to go downward because most of our clients have bonds have that gone up. remember, the top emerging markets account for 10% market cap. any red-blooded capitalism needs to buy those emerging markets. you know why? because people fear them. you have to wait for the s & p. i'd be selling longer bonds right now and go buying stocks with it. >> you have to sell bonds. abigail, i'm going to give you one more chance. sell bonds, sell gold, buy stocks. that's the kudlow mantra. i don't know about timing.

i don't get paid for timing. that's what's going to happen. yes or no? >> no. i'll take the other side. reduce stock, buy gold and buy bonds. >> charles, many, many thanks for your wisdom. be a abigail, larry, thank you. we'll be back tomorrow evening for "the kudlow report." open to ambition. open to bold ideas. that's why new york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and grows more businesses... we're open to it. start a tax-free business at startup-ny.com.

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