congratulations of all those who weathered the storm mountai. i'm jim cramer! see you tomorrow! everywhere you look, people are planning the winter weather for slowing the economy down. but isn't this like any other winter or are there some other things that play? bundle up, folks, because we're going to get to the bottom of this whole story. and speaking of the cold, more and more americans with obamacare health plans are getting the cold when they show up to the doctor offices or hospitals. that's because doctors are not taking obamacare. so who does? what is being called the phantom networks. and the sochi security just got tougher. a special advisory affects all

airlines flying into russia. i threat over terrorism in sochi while the olympics are going on. that's beginning right now on "the kudlow report." ♪ 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. even though it was a quiet day for the dow, still a lot of worries for the stock market in general. the economy, the weather. sheila is joining me with the details. good evening, sheila? >> good evening, larry. old man winter is striking again but first let's talk about the markets. gains and losses ending the day modestly lower. the s&p is off just three points. some key earnings reports after the bell. disney higher after handedly beating expectations.

thanks to hit films like frozen, different story for twitter slipping nearly 16% in the after hours after the very first earnings report as a public company. headline numbers like sales and profits beat expectations but user growth was disappointing, up just 3.8% from the previous quarter. dick costolo said new features will eventually attract more users. finally, we've got to talk about the weather. it's cold and snowy and it could be affecting the economy. four out of six major economic reports cite the weather and worse than expected is ism manufacturing, auto sales, and adp employment report. the big question is, is the weather really a reason or is it just an excuse? >> well, that is exactly what we are going to try and explore.

sheila, thank you ever so much. now, can extreme winter weather take the blame for the economic slow down or were we all just a little too euphoric in the fourth quarter of last year? let's talk. we have two of the best. joel, the chief u.s. economist at deutsch bank and david, former deputy assistant treasury secretary. good evening to both of you. let me start with joe. steve liesman is saying that this is actually one of the coldest winters on record. 15 to 20 major cities have record snowfalls. does that satisfy you as a reason for the lousy numbers coming in in january which, in turn, have helped drive stocks to a 5, 6, 7% correction? >> the weather has been bad, larry. it's clear that it's inhibited economic activity.

it has hurt some january weather but we're going too far in blaming everything on the weather. january typically is a month where the weather is very cold. cold weather itself does not determine economic activity. and the seasonal factors that the government uses anticipate a lot of seasonal weakness. for example, when you look at employment, the seasonal factor or the plug that they use to adjust the data is 2 1/2 times larger than any other month. so the weather is bad but i really think it's gotten way too much play. >> well, wait. let me follow that before it gets to dave. what are you thinking is going to happen in the third quarter? i want to know your jobs number for fry because if you're saying that the weather has gotten too much play, then i think if you look at these weak reports, the ism services was pretty good today but the other reports, starting with the jobs report a month ago and circulating through the ism manufacturing that us kaed a big selloff, those reports were lousy and

those reports, therefore, suggest that the economy is deteriorating because, in your view, it's not weather. >> larry, it's not weather but i've been very bullish on growth. fourth quarter growth, i had well above three and people thought it would be less than 2. private gdp rose 5%. we're going to get some payback in january and march, meaning we're going to get recovery in activity. and for friday you're probably 175 and if not for the polar vortex, be it 250 or 300. the economy is driven by fundamentals, not by temperatures or precipitation. >> dave, let's talk about fundamentals. one other explanation, besides the weather, is people got very excited about a 3.5% half second

quarter. third -- 4% in the third quarter, 3% plus in the fourth quarter. why would this economy take off? what's behind it? the trend line has been a lousy 2.3, 2.4%. a lot of people think that's the long-term trend line now. some call it secular stagnation. why is the economy all of a sudden going to jump up like mexican jumping beans? >> larry, i'm worried that it won't. i think the consensus has gotten very strong at year end. so you saw the imf raise its forecast to above 3% and the reality is, business investment is still weak. housing is not really kicking along or adding very much. in fact, in the fourth quarter, residential investment was actually a subtracter from the gdp number. so i think we've got a lot to get through in 2013. so i'm in a mode of, say, what i call waiting for growth. be convinced that growth is

actually accelerating and i think that's what the stock market has been worried about. the consensus has gotten too high. >> i basically agree with you. i think the stocks are correcting. but let me ask you another thing. i'm still trying to find out -- i'd love to see 5 or 6% growth, which is what you're supposed to have after a deep recession that we never had. but dave, let me raise this point. we got a report yesterday from the cbo, congressional budget office, about losing 2.5 million jobs in the last ten years because of obamacare. which i still believe is a wet blanket over the economy. i think it stops hours work, higher tax rates because you have to pay more for these

plans. where is that going? why won't that interfere with this economy? >> yeah. well, it will and it has been doing that. i think it's one of the reasons for the weakness. i think the fed is another reason for the weakness but on health care the key thing i think is how do small businesses react? and we don't know what our health care costs are going to do in june because we're on a july through june cycle. that's uncertainty in the outlook so you hold off on waiting to hire and wait and see how that is going. so my thought, larry, is that around the world we're in kind of a steady enough position. i don't think the emerging markets are totally collapsing other than in your friend argentina. but -- >> i tried. i tried. >> but the actions -- >> i try to do everything. i try. i try to dollarize it. i try to premarketize it.

>> we would love to see them work better. i think that would change the outlook if we got anything anywhere. >> joe, i would love to see bold action by american leaders regarding economic growth, like abolishing the corporate tax. i want to ask you this. something that charles said yesterday. he knows a lot about emerging market countries. a lot. okay. he warned about turkey. not argentina. he knows argentina is going down. the whole world knows that argentina is going down. but if you're being looking for another greece that would affect the markets in a systemic way, he's worried about turkey and there's a lot of business with turkey and i want to know if the turkish collapse, if it happens, is going to make a turkey out of the u.s. economy. you haven't named anything about emerging markets yet. >> i haven't because it's shy in

many respects. but i disagree with you or what charles was saying on a systemic nature of things. 97 or 98 is the exchange rate in these countries is not fixed. it's moved over 70% from where it was. there's a natural ee kwil equilibrium and it's not going to derail the u.s. when growth was strong in the second half, created 8 trillion in household net wealth and you're right, larry growth should have been 6, 7% after the recession ended so we're getting 3 to 4. but the point s. the cyclical properties of the u.s. are strong enough that we're going to get better growth than people think. >> you have higher premiums coming down the line, you've got

employer-based -- they are going to cancel health care. you know what, the whole setup here as we talked about yesterday and "the wall street journal" wrote this morning, this obamacare plan plays you not to work. you're not working in order to keep your subsidy and entitlement. that can't help this economy. >> larry, it's not helping. this is the amazing thing about the u.s. economy. you have bad policy, you still get growth, best performance last year since '05. imagine if you hadn't raised taxes so much and we had a more pro-business, pro-growth policy how much better we can do. we're still getting better, that's the thing. >> you have to wait two more elections. i'll say this, gentleman, the one thing i'm watching very, very carefully is business investment, total fixed business investment. it's not done very well and did better in the second half of last year. it's not done very well. that's your biggest job creator. we'll see how that does.

all right. joe, david, thank you, gentlemen. we appreciate it. now, this story was the big talker of the day. drugstore giant cvs announces it will stop selling all tobacco products. well, won't that cost them big bucks? what this means for their image and bottom line. and more and more patients are not going to their doctor's offices and when they do, they find out they are not even in the obamacare network. plus, it doesn't pay to work, as i said before, if you're in the obamacare system. dr. bill grace is going to join us to parse through all of this and don't forget, free market capitalism, still the best path to prosperity. there isn't an ounce of free market capitalism. i'm kudlow. please stay with us. we'll be right back. [ male announcer ] the new new york is open.

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they will no longer sell cigarettes in their stores. bertha coombs is joining us. >> phasing out tobacco sales is

a matter of strategy as it looks to play a bigger role in health care through its pharmacies and prescription drug benefits' business. >> every day, patients and customers put their trust in us to help them on their path to better health. it's the right time and the right decision to remove cigarettes and tobacco products from our store shelves. >> the move was hailed today by the white house and health advocates, including the american pharmacist association which has pushed pharmacy chains to stop selling cigarettes. cvs says it will mean a loss in sales in 1.5 to 2% drop but the move will be positive long term. >> they are going on a large marketing plan for the cessation of cigarette smoking. i think that will drive traffic into the store.

>> walgreens is evaluating their tobacco sale policy. dollar stores have gained market shares when it comes to tobacco sales. other products like e-cigarettes is not sold by cvs. as for alcohol and sugary drinks, cvs says those can be ingested in moderation without impacting health. cigarettes cannot. a big story that will certainly have an effect on all of the peopled intoing into russia for the winter olympics. we're talking about a special advisory from u.s. government for airlines that go into russia. eamon javers is going to have the story next up. this was the hardest decision i've ever had to make.

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the winter olympics start tomorrow. already they are looking kind of shaky. hotels and venues are not ready. phones hacked by russian hackers the moment you get off the plane. there's a much more serious problem. the safety of the athletes and the spectators. eamon javers has that story.

>> explosives may be trying to be smuggled on to planes through toothpaste. clearly u.s. intelligence are worried about some kind of strike. apparently the u.s. authorities believe the flights that could potentially be involved here are flying outside the united states to points inside russia. so no flights from the united states to russia but from other countries to russia that is the warning area here that they are focused on. also, spoke to the national security council at the white house. they put this in the context of overall cooperation between the u.s. and foreign intelligence and law enforcement partners. they said if they had any information at all, to tell people that it's not safe to fly to sochi for the olympics in russia, they will update that through normal state department channels. again, no update on that. back to you. >> eamon, let me ask you this.

he's gone. sorry. many thanks to eamon javers. the obamacare nightmare is hitting doctors and hospitals. many people are going to the same office for health care obama to find that their providers are not in the obamacare insurance network. more on what some are calling the obamacare phantom network. that's next on "the kudlow report." so you can have a getaway from what you know. so you can be surprised by what you don't. get two times the points on travel and dining at restaurants from chase sapphire preferred. so you can taste something that wakes up your soul. chase sapphire preferred. so you can. bulldog: what's this?

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the aca is benefiting our economy. it's providing access to health insurance to millions of people who didn't have it and is giving families across the country and individuals across the country the freedom and choice and opportunity that they lacked before it passed. >> all right. so, that's the white house position. obamacare offers greater freedom, choice, and opportunity. that's really the case, then why are so many people having difficulty finding a doctor or hospital that will accept their new obamacare insurance? sf sf plus, if you sign up for obamacare, it doesn't pay to work anymore. that's a wet blanket over the enti entire economy. here to talk about it is an attending physician at lenox hill hospital in new york. let's start with a feud that is

my favorite. senator doctor tom coburn signs up for obamacare. his own oncologist treating his prostate cancer is not on the list. he's fortunate to be able to pay out of pocket. a lot of americans are not. >> americans are living -- 60% are living paycheck to paycheck. there are three shocks here. the first shock is their premiums are up 50, 60%. the second is their deductibles have tripled and that's causing these people not to be able to meet their payments. i mean, are they going to be able to buy a car or have disposable income? i don't think so. and on top of that, remember we talked, larry, a few weeks ago about the front end, which was a disaster, the back end disasters. we're getting now back to the back, back end. >> right. >> where this is where -- >> the actual decision making signups by the actual people.

being okay. this is interesting and very important because we're getting stories like senator coburn popping up all over. some people are saying that one reason why doctors and hospitals are not in these programs is because of cost savings. they have to meet all of the new mandates that in fact this is being looking like medicaid, which is basically free, gives virtually no reimbursement and most american doctors don't want to be part of it. is that fair? is the whole thing starting to look like medicaid? it's not supposed to. >> no, it's not supposed to. but it being looks a little bit like a little better than medicaid. but medicaid is so bismal. no one is going to take this kind of you go plan. it's not like the old cadillac and chevrolet --

>> i have more patients, fewer dock ares to. what does that mean? >> we also have the 30 million people coming into the system who were not covered before and we don't have as many primary care physicians to take care of them. so there's going to be gridlock. >> here is this story in westchester. i don't know if you live in new york city or near westchester but this westchester medical center is not accepting the obamacare plans. they have no plans. you can service it. you can go there. but they are not accepting any doctors, they are not accepting anything, i.d. cards, nothing, from obamacare. and they are the only game in town. they are the only game in town. what's that all about? >> well, that's going to happen in many places around the country when these insurance who are delivering obamacare can't negotiate an affordable plan, they are going to see these institutions like the city of

california, they are not going to be taking any obamacare -- >> i don't know the city of hope, california, but what are they going to do? what are those folks going to do? >> they are going to go to hospitals that are very hungry for those patients and they are going to go to doctors that are very hungry, people that don't have much flow. you are not going to get the best institutions and cadillac care with you-go payments. >> so it's exactly what we were promised wouldn't happen? >>. >> that's right. >> this whole business of who is signing up, i want to go back to these numbers. i'm going to ask you something about the economics of this thing. who is signing up. 9 million people signed up, according to the president. he said that just recently in his state of the union speech. now, havilar health group said,

first of all, that ain't true. the medicaid part is not true. a lot of them are just rolling over. there's no such thing as 3 million people on medicaid. there's probably no such thing as 3 million kids going into the long-term plan because they are already in the insurance plan. so these numbers are being inflated. >> there is reality testing here. health care is extremely complex and the problem is, normally when somebody comes up with an insurance plan and they get the doctors to take the cadillac plan and chevrolet plan and the hugo plan. none of this -- this was alled a lib. it started with a back end that

had a lot of problems and still has a lot of problems. 50,000 people in limbo, they can't fix that whole thing. >> see, what troubles me, i've been in politics. i worked for reagan. i'm not an obamacare supporter. okay, fine. but what troubles me is the constant -- i'll call them fibs. they are fibing about these numbers on a constant basis and you can't do that anymore. there's too many newspapers and websites and too many truth trackers. too many people are all over this. if the president already has a problem because he said if you like your insurance and doctor, you can keep them. that was the lie of the year that has absolutely crushed his credibility. but they continue with these little numerical fibs as though no one is going to check it out. if you said to me only 1.5

million, why do they keep fibbing like this? >> because it sells their program, i think, and they -- >> i think it sells them down the river. i think nobody believes them on anything. seriously. i don't get -- i've been in politics, i've been out of politics. the best policy is to tell the truth. >> i would agree. >> the minute you try to cover stuff up, the minute you try to bake and shake these numbers, no one is going to believe a thing. >> i know. i think that unfortunately started very badly and the promises were not kept and they are still not being kept. >> last one real quick, they are paying you not to work. they are paying you not to work. if you join obamacare and get a nice handsome subsidy, if you work more hours, you get less subsidy and higher taxes, they are paying you not to work.

>> we have moral hazards in both the health care system that obamacare represents and the disability programs given out too liberally and unemployment that is going on and on and on. not only do we not create the jobs, but we're paying people to get lazy. the more they stay away from work, the less likely they are to return to work. >> it has a european feel to it. i don't like it one bit. anyway, dr. william grace, bill grace, thank you. we appreciate you very much. now, tomorrow at 3:00 p.m., an exclusive interview with mark bertolini, the ceo of aetna. he's been very upfront about the problems with obamacare and even suggesting that at one point that aetna will pull out of the entire system. we're going to look at your money with two top investors

next up and please don't forget, cnbc will be your curling headquarters for the olympics. that starts next week. as you can see, the kudlow team is already in training camp. we'll be right back. let's all curl together. [ male announcer ] the new new york is open. open to innovation. 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.

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holding their breath ahead of friday's big jobs report. the s&p 500 lost 4. here's big news. the ism services index beat the street. that's really the best economic news we've had in many weeks. let's go to brian kelly, founder of brian kelly capital and brian, ceo of msq management. b.k., let me start with you. we've been debating tonight about the whole economy, is it the weather or were people just too euphoric overrating the economy? if you overrate the economy, you overrate the stock market and i'm wondering, as you look into your crystal ball for 2014, is that going to be a problem?

is there economic overrating which means there is stock market overrating? >> yeah, i think so. in the beginning of the year i was in that camp of overrating the economy. i thought the biggest risks to the markets would have been an oil price spike or something like that. there is going to be an adjustment. we also have this emerging market problem going on. so far there hasn't been contagion. it's been contained to the political risk type of areas. if there is contagion, we've got a bigger problem. i was a little bit surprised the market wasn't stronger on that strong ism report. >> i think people wait for the jobs notice. let me ask you to follow up. we had last night on the show charles dalara, formerly treasury and one of the problem solvers for greece. argentina is completely

discounted. here's what he told me, though. he said, beware of turkey. it's a potential disaster. the prime minister of turkey doesn't want the central bank to raise rates, doesn't want the central bank to raise currency or do anything good. he doesn't want to do anything good. it's a corrupt regime. here's the bottom line. there could be some contagion to europe because europe is heavily invested in turkey. >> right. that's the real transmission mechanism as we go along, that you do need to worry about, and turkey is a big enough economy and ingrained in much of the world economy that you do have to worry about that. also, remember the european banks are big creditors to emerging markets in general. there's no structural change there. that's what you have to watch and look at some of the credit default swaps on european banks. there's a lot of concern out there i don't think it's time to completely panic. >> you're right to watch the cds because you've got to keep your

eyes on that stuff. i've been watching two-year spread swaps and libor. i don't want to sound pessimistic. i'm just putting scenarios out on the table. we've had this correction, which i would call a love rly correction. here's my arithmetic. you tell me where i'm wrong. you're at 1750 on the s & p. i'm putting it at $120 a share. that's consensus profits. what do i get? 14.6 times earnings, i get a 6.8 earnings deal and it all looks good. now it's down under 15 times earnings. it kind of looks like you might want to buy it after this correction. >> i think we're seeing more of a slow down in the economy or

potentially some sort of accident like you're discussing in turkey or china or someplace else that causes a hit to the economy. the overall economy is certainly growing. it may not be like gangbusters. that may at some point be a support for the stock market and, of course, fed policy is going to remain easy for as far as the eye can see regardless of what happens to the taper. >> let me ask you about that. i want to get b.k. in here. i know b.k. is buying gold and silver, which i have to respect is a very interesting play. i was going to ask you about this. you say the fed is going to remain easy as far as the eye can see. all right. let me challenge you a little bit. they are going to end qe. >> right. >> they are saying -- at least some of them -- they will start raising the target rate and take cash out of the market next

year, 2015. >> maybe. >> yeah, okay. but by the middle of this year, or the autumn of this year, won't the stock market start to discount that? i ask you. >> i think that it's not a foregone conclusion that they are going to tighten next year. the statements that the fed has been making is that they will not only keep rates low at 6.5% unemployment but even through 6.5% unemployment. so there isn't really a trigger at which point they are going to raise rates. they are giving themselves lots of leeway to avoid doing that. >> all right. fair enough. fair enough. you're right. why are you buying gold and silver? >> the gold and silver demand is from asia, particularly china. what we could be looking at is a hand off of qe to some of the central banks and we'll have to see what happens, how that impacts china. now, in china the shadow banking system begins to fall apart like

it's starting to, then the chinese are going to have tremendous demand for gold and i think that's where it's coming from. they may have with this last weapon a wealth management product, the gold equals credit product that they bailed out that may have been their bear stearns moment there may be a lehman moment coming up. >> you keep buying u.s. treasury bonds. to me, brian, even if you have a 2.5% american economy, which is kind of the trend line, at 260, a ten-year line looks so vastly expensive to me that i'd want to sell everything. >> well, listen. again, assuming that you're going to have a 2.5% gdp. a lot of that gdp was because of an inventory bill. if we get a slow down on the economy, which would be perfectly normal, it becomes a drag on companies. so that's where you're bearish on the economy comes in.

>> all right. go ahead. >> of course, the treasuries also serve as the safe haven if we do have a crisis. >> no, i get that. i absolutely get that. i think fundamentally, those rates are way too low. folks, more breaking news in the investigation of the death of actor philip seymour hoffman. actor steven baldwin is going to talk to me about drugs, fame, and the power addiction has over people of all incomes and style. next up on "the kudlow report." a sad story. [ male announcer ] nearly 7 million clients.

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police have arrested four people in connection with the death of philip seymour hoffman. good evening, jonathan. >> good evening, larry. number four has dropped to 3. one of the individuals may have just been stopping by the apartment and is not connected to the alleged stash of heroin found during the overnight raid. so three people in custody. they are appearing in court this evening in manhattan criminal court and investigators are trying to find out if any of the three were the ones that dealt the heroin to hoffman and that resulted in his overdose death. again, police are treating this as an accidental overdose but they received a tip from someone

who walked into the precinct and said, hey, i think these people in that building down on mott street were dealing those drugs and they also say there are phone records linking the actor to one of the suspects from that apartment. was it this alleged dealer that dealt him the heroin that he used or are their other dealers out there to be caught? that part of the investigation is ongoing. they are tracking cell phone records and surveillance video of him going to atm machines to see who else he came in contact with that night and they continue to go over the heroin that was seized in conducting lab tests. one final note, the medical examiner's office today said the autopsy -- the physical autopsy is incomplete, inconclusive. they need to wait for the toxicology results. police believe heroin overdose, the leading theory, the leading

cause and an accidental overdose at that. >> but there may be more than just heroin in that syringe? >> the heroin that was used by hoffman, that was pure heroin, no mix with other drugs making it more potent or dangerous. so the question now is, how much did he take and what other drugs might he have been taking. there was cocaine in that apartment and prescription meds. what cocktail, what mix did he ingest that night that may have contributed to his death? obje obviously all of this is up to the medical examiner. >> jonathan, thanks very much. appreciate it. of course the death of philip seymour hoffman is tragic

but here's the lesson. heroin kills. so does many other drugs. for many people, alcohol kills, also. addiction is a deadly disease. and it is not limited to glamorous hollywood actors. it's what i call an every-man's disease. it knows no income or boundaries. i'll say this, only spiritual faith practiced day by day can defeat the scorge of alcohol and drugs. i know mr. hoffman was sober for 23 years. he fell off the wagon. it wound up an absolute disaster. we have our old friend steven baldwin joining us and director of the alternative treatment center. steve, first of all, thanks for coming in. >> my pleasure. >> i know you're on the road. we appreciate this. we know what they say, in the

rooms of the 12 step program, you can be out, you can be sober for a long time, okay, god bless. but if you go out, you pick up exactly where you left off. the disease starts you up and that seems to be what happened to hoffman. >> sure. and obviously our hearts and prayers go out to his family and friends. he's got children. he's a huge talent. it's a huge loss. but not to be a wise guy here. you're great. you have a great platform here but you know how important this is. you take the time to try to communicate to people the importance of this deadly disease. >> i do. i do. >> addiction is the most dangerous disease known to man and science because it's the only disease that tells the person, you don't have it. >> right. it's total denial. >> so it's very tricky. and in the case of hoffman, obviously he struggled. he admitted to it.

but for me and for you i just celebrated 25 years of sobriety. it's an absolute miracle for me. >> i'm 18 plus. >> yeah. >> i'm 18 plus. and interesting, hoffman had been to the perry street workshop downtown. i know exactly where that is. i've been there myself. he was struggling. he was trying but he couldn't make it. i want to go to you, addy, there's a lot of -- we could pile on this and maybe we will, maybe we won't. there are lessons to be learned here. one is, heroin kills. if you ask me, heroin kills everybody. end of sentence. but, but, but, this is not a hollywood glamour drug. this is no hollywood glamour drug. and there's too much glamourizing. that stuff kind of annoys me because there's nothing glamorous about dying from

drugs. in this case, heroin. >> i think it's sad and we've been seeing more and more people moving towards heroin in the '90s and early thousands it was cocaine and met em methamphetam. look, heroin can kill you in an i instant and that's what we're finding out. we're finding 17, 18, 19-year-old heroin-addicted kids. they started out with prescription pills and went on to heroin. >> thank you for underscoring that point. you're in the business, you're in the field and you're a professional. because people just have to know that this is not anything to do with glamour. and by the way, i think people have to know that even -- i don't know how you're not addicted. i didn't use heroin. i don't know much about the drug. even if you're not addicted. even if you take it as a lark for the first time you could kill yourself. that's how dangerous heroin is. is that fair, or am i going over board here?

>> well, i think there's no question that you can kill yourself with one instance of heroin. i want to make sure that we're kind of clear and we leave that window for people. people experiment with drugs. we know that. one thing we need to learn from this conversation is not make that a shameful thing. open our arms and make it okay for people who even slip after 23 years of sobriety, make it okay. it's okay to come back and say you made a mistake. we can't put them up on a mistake and burn them because they made a mistake. we need to be loving and accept them back. >> it's wonderful to hear you say that because in hollywood with guys like hoffman, you know, here he was about to come into the biggest part of his career as far as commercial box office success and these movies that he just participated in and it probably was something that would have been very scary for him to deal with right now and, like i said to larry, as long as people wake up each day and are willing to try and get sober and

make -- sobriety only works when you understand it has to be your number one commitment, your number one priority day in and day out. and sometimes in the lives of cory monteith and philip seymour hoffman, a, they don't have the supports of agents and management. i'm not saying that's the case here but it's tricky and hard to deal with. when the sufferer can make sobriety their number one priority, they can have success. they can stay sober. >> adi, is there too much glamour with heroin and other drugs? somehow they seem to -- the people who engage in them, okay -- i'm not going to name names but we know who they are. they are in the new york post all the time. it's almost like it's okay. it's almost like we don't have any moral -- you know, as steve said, once you get into the cycle of addiction, it is just about the hardest thing in the

universe and you've got to have a lot of help. have we put our moral guard down? >> you know, i think this is something that steve might be a really great person to talk about because i deal mostly with normal individuals. they might be vice presidents or ceos or cfos of companies. i think there's an extra add element that happens when you're a celebrity. part of your job is to be in the public eye, to have people see and talk about you. when you start running into trouble and show up drunk at parties and make a mess of this and that and the other thing, people pay more attention to you. then it becomes this conundrum. am i going to stop using drugs and have people not pay as much attention to me or am i going to try to capitalize on this maybe wrong but attention that i'm getting. >> but it is an every-man's drug. >> absolutely. >> no matter who you are, where you come from, you can get hooked on this stuff. >> oh, yeah. >> and let's not beat around the bush. of all of these different things

you can participate in, heroin is the worst. heroin is definitely the worst and the most addictive. >> all right. i've got to jump up. adi, steve baldwin, thank you. heroin kills. heroin kills. if we get nothing more that out of this segment, heroin kills. i'm larry kudlow. god bless people in the rooms trying to get sober and clean. i. 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. [ mala body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms.

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>> in this episode of "secret lives of the super rich"... >> i want to show you one of the most exclusive properties in the hollywood hills. >> it is total party central. >> we put this on the market at 1$20 million. >> they're gonna tear it down. [ bulldozer beeping ] >> flying right alongside the gold coast of long island. >> javier's helicopter company is basically a super-rich taxi service. >> there's your house, chris. >> just this room is insured for $2.5 million. meet eric and lana kuvykin, and welcome to their mega renovation project. do you guys actually cook in here? >> every sunday, 16 people. >> this is the first time i've ever worn gloves to touch a watch, which means it's really expensive. >> the price is a 1.2 million swiss francs.