worth investing in america. there's also a bull market somewhere. just for sounded more hawkish than markets expected. interest rates may go up sooner. then there's what's called qualitative easing but it has no rules and nobody can figure it out. obamacaret. premium costs are going way up and it's harder to get decent cancer care. now is the time to go after the key russian oligarchs right now. that according to the man who wrote the wall street column that shows how to really hurt russia. he's going to join us this evening and mucho more coming

in the "kudlow report" beginning right now. good evening. i'm larry kudlow. this is the "kudlow report."ku we are live here, 7:00 p.m. eastern, 4:00 p.m. pacific. all right, in her first press conference as fed chair, janet yellen sounded more hawkish than expected. proud of her. b >> reporter: larry, stocks traded lower and stayed lower. the dow ended down a little more thanit 100 points though at one point it was down more than 200 points. traders cited several reasonspo for d today's selloff. first, during her press conference, her first one, fed chair woman janet yellen said six monthsle is shorter than so expected. short-term bonde yields, particularly yitwo, three and

five-year notes jumped notably on that comment. sectors like yu tilties and emerging markets were the biggester decliners. it also confused the trade attorney general community somehow. the fed lowered the upper range of expectations for gdp growth in 2014 to three percent from 3.2% and did the same thing in 2015 and 2016. gold dropped, ending down more than two percent. yellen said rates would not be rising for some time, likely more than a year but higher rates are indeed coming and if the economy isf improving, i certainly welcome that. back to you. >> great stuff. thanks to bob. now, if janet yellen's intention was to prepare financial markets for higher, normalized interest rates, then she deserves a lot of credit. she was more hawkish than i

would have thought. on the other hand, there's still this business of now qualitative easing and a basket full of job indicators that, frankly, nobody is going to be able to decipher. forward guidance? i think itid needs rules, not se vague discretionary and subjective opinions that will drive wall street crazy. we're going to explore this. national center for policy analysisal and former dallas president robin mctier joins us. steve moore and cnbc contributor rick santelli. rick, how did you read yellen today? >> i don't think think she said that much different than we heard from her before. the markets read a lot more into her than i did and they went down on something that they

might as well have gone up on. if you say you might normalize sooner than people thought, that means the economy is improving. the market should haveom applaud that. >> rick, i saw this quote from leon cooperman. i think it was via doug cast but cooperman says if people don't believe oron don't understand tn interest rates have to go up, they shouldn't be in this stock market at all. i don't think a one percent interest rate is any big deal. i'm going get your take. was the impression that janet yellen was hawkish in your view? >> no, definitely not, larry. what we saw today in action was some of the nworld's biggest bod funds and their positions being long, threes being long, fives. they like to be long the heart of the yield curve around that

five-year sector. if you look at threes or fives, they came out like a rocketship with higher yields, lower prices. i think that the market reaction tainted what followed with regard to why did the markets move. i didn't hear anything in the press conference. i didn't read anything in the statement that would have me in any way alter the time line, and i think you nailed it. you said forward guidance is kind ofda vague. the reason it's vague is because the notion of how exactly they're going to get us back from mars to the u earth is kin of vague. >> i want to come back to this vague forwardo guidance. steve moore, i think to some people on wall street, if it was a slip of the tongue or deliberate, ms. yellen said in responseai to a question, how sn will you raise interest rates after you finish getting rid of buying bondsf after quantitativ easing. she kind of paused and hesitated and then she said six months. which means by the spring or the middle of next year, okay. now, i agree with you guys, it's no big gudeal. do you think it's a big deal?

>> i think it was a big deal actually. tough on janet yellen. i think you have a little bit too that she's been a dove. i disagree with rick. i thought it was an important announcement today that maybe she's notbe going to be quite a doveish as we thought. she's talking about higher interest rates, continuing the tapering. someone n't sound like who's going to be an inflation dove and i applaud her for that. at this point i want to error on the side of pulling back on this money. >> so you don't agree with the market monitorists and others who want an easier policy, more money supply and so forth? >> no. >> do you agree with that school of thought? you're quasi. >> i agreere with them that monetary policy has not been as easy overee the last few years most people think. the money supply has really not been growing thatea rapidly. >> why is that? >> because banks have been

holding excess reserves in very large quantity. >> and why is that? >> partly because they've been beat over they head and shoulds by the u.s. government and loan demand is probably not what it should be. >> that could change of course. rick, i probably don't have this right, but i just made a couple of notes. ms. yellen was asked about employmented indicators. 6.5% unemployment is no longer the forward guidance for raising interest rates. she said, okay, we will still look at the unemployment rate, the broader marginal unemployment rate, we'll look at the labor force participation rate. she talked abouton the durationf employment. other people like education la zeera of stanford thinks that she'll look at hours worked. in other words, rick, if you look at like six things, how is anybody going to know what you want tow do? there's no anchor here, there's no north star here. this is my problem.

qualitative guidance is kind of like how janet yellen wakes up in the wmorning. >> let's take both of those issues. when i think of forward guidance i think of marshmallows. it's spongy, not well focused. but when we're talking about all these unemployment metrics, i'm sorry but you don't think they were looking at all of those things a year ago or two years ago? this is one of my biggest beeves with ben bernanke, the entire fomc committee and janet yellen. the fact that history has been changed in manyas ways by the dropping of the unemployment rate, the way it dropped under 8% right before the election, this has been big. the american people want things put in a simple piece of paper. they want things simple. it's easy to understand. unemployment goes down, that should be interpreted as good. people like myself have been

saying for years it's not nearly as good as the advertised rate. these fed knows this and ben bernanke knew this. why are they only now talking about it? because it happened to get to a threshold that they don't want to defend. i don't buy it. they should look at how many people are working. >> nobody believes that the unemployment rate is 6.7% today. i mean, there's nobody. the real unemployment rate -- >> i think the american voter believed it in november. >> she did mention if you add marginal workersdd and people w have jobs they don't want. that's 12.5% which is probably closer to the truth. >> and then what ed said in the "wall street journal" the other day, hours worked. >> the problem she had was, she was stuck with a 6.5 number that we reached by having labor force participation change, not unemployment. >> the question i would ask, rick, i'll go to you, you got some yjuice, rick, i think youe on tophi of it tonight. why should we target the

unemployment rate for monetary policy? look, the federal reserve creates thmoney, they produce money. the fed doesn't produce jobs. jobs come from tax incentives, regulatory burdens, overspending by the federal government. whether you're pro business or not. the fed can't manufacture jobs. this is the problem i have. there's like this tradeoff between inflation and unemployment. i don't buy it, rick. i've never bought it. >> i agree with you and i think it's i congress's fault in part. they should take that dual mandateua and chop it in half, . b, more important to the issue here is that if in some indirect way they could do a cost benefit analysis and say that in any significant way what they've done since the crises has truly helped directly into the employment situation, but they haven't. they might as well target the orbit of mars and say until it gets x-amount percent closer to

the earth we're going to keep doing quantitative easing because in my opinion the correlations are about the same. >> i would make the point that theha fundamental problem with e american economy today is not monetary. it's fiscal, it's debt, it's regulation. it's on the supply side. >> certain presidents lashing out against business. it's obamacare. >> exactly. all those>> things are killing jobs. >> it's tax incorporates. >> you're not going to be able to correct those problems like obamacare, higher tax rates by printing more money. >> that's not aor monetary issu. he ought to just say that. i don't know if the market reacts to thise or not but the idea that these fed governors, 13 out of 16 think the overnight target rate will be one percent by the end of next year. is that a big deal? how can that be a big deal? it should be about four percent. >> it's not a big deal. it's part of something new, part

of ben bernanke's transparency that they started doing that. they're going to change their mind at every meeting. nobody is going to stick with where they put the dot a year ago. >> no one is going to know. no one up here is going to know. it will be the great guessing game. >> we need rules. >> we do need rules. what's wrong with the john tailorhn rule. it says the fed funds rate right now today should be 1.5%. he said, look, it's notto an mee anymore. the emergency was five years ago. or other people, myself included, would like the fed to keepik one eye on a basket of commodities, maybe stabilize the dollar. i acknowledge there's no inflation, but rick, why shouldn't the fed have rules? >> listen, every aspect of our society and our economy has been hampered and definitely hurt

because the rule-based society we once knew 8 to 10 years ago is gone. whether it's on the federal government and i the regulation side,ul changing the rules, affecting bond holders, the games going on with fanny and freddie. can you imagine if we had a predictable rule a like the tayr rule and investors would know what's coming around the next bend. that's the way it should be. once you. move into micro management and turn the fed into a quasi bureaucratic post office it's going to be very hard to get back to any type of rule-based notion. >> i would add normal gdp. that's what my monitorist friends believe. right now it's a lawless policy, steve. i'll give you the last word. >> not having rules creates uncertainty. we know the markets hate risk and uncertainly and that's what these policies promote. >> let's move on.

thank you to steve and rick. the focus remains on the pilot of the missing malaysian airlines jet. bizarre story. we have a live report on the latest on this continuing mystery. later on, the white house admits at least 20% of obamacare enrollees haven't paid their premiums, 20%, and now we learn that those premiums are about to get much more expensive and unfortunately we're learning cancer care is substantially diminished. what other illnesses will go down thel same road. we have much more to report. free market capitalism is the best path to prosperity. we need a sound king dollar. i am kudlow. we will be right back. ill be ri. (announcer) scottrade knows our clients trade

and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

save you fifteen percent or more on car insurance.ould yep, everybody knows that. well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you

at a company that's bringing media and technology together. next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games. it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. new developments tonight in the search for the missing malaysia air flight 370. malaysian officials now say some files were recently deleted from the pilot's home flight simulator. nbc's kerry sanders helps us with the latest details.

>> reporter: the u.s. role is getting bigger by the day. the biggest development today, the fbi has been called in to review the hard discs on the home computers of the pilot and co-pilot. the more important focus is on the pilot's home computer, the same computer he used with his home flight simulator. when malaysian officials reviewed the hard disc they discovered that files of past simulated flights were deleted and those deleted files were trashed just days before flight 370 disappeared. those missing files could reveal a dry run, a rehearsal as it were of the route this plane took when it was supposed to be heading to beijing or this may simply be a case of someone who cleaned up his computer's hard disc as part of routine maintenance. the fbi says it will take some time to restore the missing files if they can be restored at all. the majority of the passengers

on board the flight were from china and their relatives are increasingly angry with the malaysian government. victims' relatives say they feel they've been lied to. their emotions spilled over and some threatened a hunger strike if they don't get information. the ntsb has revealed what limited data that do have and that agency is focused on an area west of perth, australia. the u.s. navy has dispatched its aircraft to that area in the hopes that they will find some evidence of debris. >> that's very interesting, that last point. kerry, i don't know anything about anything. i want to ask you about general mccen ernie's year that the u.s government knows much more than what's going on and we will hear

about it in the next day or two. do you have thoughts about the general? he's a straight shooter. >> reporter: while the u.s. government may have more information than they're letting on, it would suggest deception on the u.s. government's part, dispatching u.s. navy planes off the coast of perth, australia and being due plis tus. i'm not sure it's really a reason that the u.s. government would want to create this sort of secondary belief system when they know more than at least some people believe they do. >> sending the fbi in, that's really a very aggressive move. >> reporter: it is. there are a lot of different nations here and the plane was heading to china. the chinese government offered to help. it was the malaysians who turned to the fbi and asked for this specific technical help. >> many thanks. folks, this is something we haven't said enough when covering this story.

our thoughts and our prayers go out to the families of the people who got on that flight. very, very difficult. god bless. now, let's move on. we have some other major financial news today including an insider trading indictment and a huge settlement for toyota and the justice department. we have those stories and more and that's up next. d that's up . let me talk to you about retirement. a 401(k) is the most sound way to go. let's talk asset allocation. sure. you seem knowledgeable, professional. would you trust me as your financial advisor? i would.

i would indeed. well, let's be clear here. i'm actually a dj. [ dance music plays ] [laughs] no way! i have no financial experience at all. that really is you? if they're not a cfp pro, you just don't know. find a certified financial planner professional who's thoroughly vetted at letsmakeaplan.org. cfp -- work with the highest standard.

welcome back to the cut

letter. at least five people died when gas pedals got stuck on faulty floor mats. as part of the settlement toyota admits to misleading customers about the problem. attorney general eric holder said this case would be a model for future cases involving similar companies. that seemed to be a clear message to general motors which is currently dealing with an investigation related to its handling of a safety issue. a morgan stanley broker charged with an insider trading scheme that earned profits of $5.6 million, the law clerk, steven metro, had access to confidential corporate information through a middle man. he would send ticker symbols written on a piece of pace or napkin to the stockbroker. the weirdest part of the story,

the middle man would destroy the evidence by eating the paper containing the stock tip. congressman ed marquee is accused of trumg up the claims he made about herbal life. he may have overstated the losses by his constituents. hedge fund manager bill ackman has a huge and well known short position in herbal life and has been lobbying investors to investigate the company. marquee is the only one who did. ackman says he has never given direct donations to marquee. a lot of interesting stories. >> you got some hot stuff tonight. first of all, i don't know what senator marquee is doing getting involved in herbal life. that's point number one, whether ackman gave him money or not p number two is this, eating the evidence? >> even then they got caught. >> you trumped me. if he's eating the evidence, how did they catch him? >> the truth always comes out. i believe the middle man recorded conversations between the two men and that's how this

all came out. >> did they make any money? i mean, they did initially. >> you quoted $5.5 million. >> right. >> all right. there you go. insider trading. thank you very much. as always we appreciate it. the latest round of bad news on obamacare includes rising premium costs and more evidence of very poor choices for cancer patients of all people, cancer patients. we're going to convene our panel of obamacare experts next up on the "kudlow report." co: i've always found you don't know you need a hotel room until you're sure you do. bartender: thanks, captain obvious. co: which is what makes using the hotels.com mobile app so useful. i can book a nearby hotel room from wherever i am. or, i could not book a hotel room and put my cellphone back into my pocket as if nothing happened.

hotels.com. i don't need it right now. but when we start worrying about tomorrow, we miss out on the things that matter today. ♪ at axa, we offer advice and help you break down your insurance goals into small, manageable steps. because when you plan for tomorrow, it helps you live for today. can we help you take a small step? for advice, retirement, and life insurance, connect with axa.

it took a lot of jugglingnt, to keep it all together.k. for some low-income families, having broadband internet is a faraway dream. so we created internet essentials, america's largest low-cost internet adoption program. having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next.

comcastnbcuniversal. . welcome back to the "kudlow report." so, with the march 31st deadline looming, surprise, surprise, we're learning more about obamacare problems. insurance officials now say obamacare-related premiums are set to sky rocket in the coming months. get this, this is really sad, many top cancer hospitals will now be off limits on obamacare plans. that is unbelievable. joining us now dr. bill grace, he's the founder of grace oncology and attending physician at lenox hill hospital in new york city. forbes opinion editor and senior fellow at the manhattan

institute and steve moore of the heritage foundation is back with us. seattle cancer care excluded from five of eight networks. maryland anderson cancer, less than half of the network. sloan kettering excluded from seven of nine. the bottom line of these stories, only four of 19 nationally-recognized cancer centers will be insured. now, i think that's incredible. >> it's a tragedy. for these patients it's a tragedy. beyond the problems we're already seeing in las vegas where a gentleman has a nearly half a million dollar bill when he signed up for obamacare and it turned out it didn't quite register and he had a lot of bills from his heart attack and he's got a half million dollar bill now because he thought he signed up. he was registered as signed up

but apparently it didn't go through. >> see, there are a lot of things about this that bother me, including the life at stake. but the point is, pre-existing conditions were supposed to take care of this stuff, but they don't have all the of the nation's greatest hospitals. that's the point here. look, to summarize, only four of 19 nationally-recognized cancer centers are insured. what happens to pre-existing conditions on this coverage? >> they decided to save money, larry, because they tried to get this to parse all of this around diffusely. what happens is big, expensive cancer centers are big and expensive. the problem is we don't even know as individual practitioners, the people who pick up those extra cancer patients, we don't know what we're going to be paid. the back end has not been finished yet. >> some people are saying -- i don't know if this is true, bullbut some people are saying the obamacare exchange insurance for

sick people, let's take cancer patients, are taking out medicines which are very important, that the list of medicines and drugs that are covered by obamacare is also being narrowed down so that cancer patients, for example, can't get what they need. is that true? >> it's true but it's not as pernicious as a lot of people are saying. in a market where people are shopping for insurance plans competitively, a lot of people are going to choose plans that have lower premiums and therefore have narrower networks of physicians and hospitals that are lower cost and narrower in terms of the drugs available. sometimes if you want to go to the fancy m.d. anderson or sloan kettering, the very top places, you should have to pay a higher premium. these are taxpayer subsidized health plans, to actually, the fact that this is happening, this is a rationalization of the market in which the taxpayer is being protected from higher costs. you should have the freedom to choose a plan to cover those

things and pay more for it but the taxpayer shouldn't have to foot the bill. >> there isn't enough choice. a cancer patient is going to try to do what they do and get what they get but they should have choices. all these obamacare plans, it's basically the same plan, just the financing is different. >> don't forget, the most important obamacare plan is medicaid and that's the worst insurance system and it's a system -- us mentioned these hospitals. you forgot to mention mayo which is the number one treatment center in the world. mayo clinic doesn't take medicaid so what kind of favor are we doing? >> this is just cancer, but you're right, medicaid is a downgrade program. a lot of people say medicare, the policy intention of obama is to make that like medicaid plus

and a lot of people say the obama exchanges is to make it similar so you have a single run system. >> we're getting close to the march 31st deadline. 7 million people were supposed to be signed up. kathleen sebelius said if we didn't get the 7 million this would be a failure. right now we're somewhere between 4 and 5 million. but 20%, as you said, 20% of the people who have, quote, signed up for obamacare, guess what, they haven't paid premiums. if you haven't paid premiums, you're not signed up for insurance. the number is probably half of where they thought they would be. >> they're never going to get march 31st. between the exemptions and the hardships, they're going to waive that. that comes right before the elections. >> the sweet spot is going to be in the late spring when these people start to analyze all the people who didn't sign up, all the young people who didn't come in there to lower the cost of this, and the premium is going

to be unbelievable. you're going to see sticker shock like you can't believe. >> i thought this was going to bend the cost curve down. >> it was supposed to be. >> how big are the premium hikes going to be nationwide? >> it's going to vary widely. the average, we don't know because we don't have enough data to collect but easily it's going to be double digit. it might be 20% on average or 30% on average or double or trip the as some of the reports show. >> sebelius says it will be a lower increase than we have had in past years. >> that's ridiculous, totally ridiculous. it was actually amazing that she said that in testimony to congress. she's setting herself up to look ridiculous when the actual data comes out. we'll know that data before the election in 2014. >> premium costs, these are insurance companies that need this revenue. young people aren't signing up, only 20, 25% of the young people. correct me if i'm wrong, but if they renew cancelled policies, isn't that expensive? >> so the people whose plans

were cancelled, some of those people are allowed to continue those so-called grandfather plans but they're being charged more so they're going to cost 15, 20% more but since they're staying out of the exchanges, that pool is going to be sicker and it's not going to be a death spiral the way a lot of people worried about but it's going to be a zombie spiral. >> and there may be bailouts. on friday, and i owe this piece of intelligence to my pal betsy mccoy. on friday they kind of slipped in some new regulations that will make it easier for insurance companies. they're going to have more profits, spend a little more on profits than, say, advertising, but that also means we may have to bail them out, too. >> sure. if we're going to give higher profits to the insurance companies, who is going to make up the difference? the taxpayers.

if you guys are right that these premiums are going to go higher than we've seen, there are going to be people with pitch forks in the street. middle class families are already getting killed by insurance premiums. they bought into obamacare in the first place because this was going to reduce costs. as the costs are rising, this is a big problem politically in november for the democrats. >> the individual mandate is dead, i don't care what anybody says it's dead, and the guy who buried it was obama. >> that's right. >> it was his extensions and exemptions. march 31st is going to go by and they're not going to have people paying. there's a story in the journal today the irs can't collect this stuff. they're going to waive that, too. >> affordable care act, larry, is the biggest oxymoron. >> what's important is we're talking about enrollment numbers, 5 million supposedly

signing up. it looks like about three quarters of the people who signed up are previously-insured people who actually among the uninsured is going to pay who is 25 or 28 or 32 is going to pay $4,000 when they're perfectly healthy? nobody. they would rather pay that fine. >> unbelievable. gentlemen, many thanks. dr. bill grace as always, mr. roy, i appreciate it. back to the top story of the evening, a possible slip of the tongue from new fed chair janet yellen has sent stock traders in a wide frenzy today. our stock expects about to give us their take on it all next up on kudlow.

(music) defiance is in our bones. defiance never grows old. citracal maximum. calcium citrate plus d. highly soluble, easily absorbed. gundyes!n group is a go. not just a start up. an upstart. gotta get going. gotta be good. good? good. growth is the goal. how do we do that? i talked to ups. they'll help us out. new technology. smart advice. we focus on the business and they take care of the logistics. ups? good going. we get good. that's great.

great. great. great. great. great. great. great. great. (all) great! i love logistics.

welcome back to the "kudlow report." i'm larry kudlow. all right, a wild day on wall street. markets dropped on janet yellen's hawkish tone, i guess. the dow is up 114 bucks. the s&p fell 12. the nasdaq lost 25. let's get right to it. don lufken and r. hogan, the new chief market strategist with

wonder lick securities. the leon cooperman quote, i want to start there. if you don't know and you didn't expect this, then you shouldn't be in the stock market at all. someone said, maybe by the end of next year the overnight fed fund rate will go up to one percent which is probably too low. is that what drove the market down today, that nonsense? >> no. i think what drove the market down was just the endless nonsense in that unbelievably verbose fomc statement and that shamefully boring condescending performance by janet yellen. oh, my god, she took the tailor rule and the evans rule and threw all the rules out, man. she's operating on the pirate's code. remember the pirate's of the caribbean where the villain says the pirate's code is more like guidelines, it's not rules. we are going without rules. she's making it up as she goes

along. that destroys market confidence. >> i think this is simple. we talked about exactly this, don, in our first segment tonight. i want to come back to art hogan on the same point. with all due respect, we now have qualitative easing, and she's got a barrel full of job indicators that is on her switchboard, dashboard, no one knows, no one could possibly know and as don said, there are no rules. is wall street going to get hung up on that, or is wall street going to focus like it should on profits, profits, profits. >> this is unfortunately that when we had someone who is probably trying to be more clear became very opaque. you removed a benchmark which was a 6.5 target on unemployment rate. that's probably a good idea. you should probably target inflation more than unemployment.

i don't think that's monetary policy's job. i think at this point in time we need to step back and say, to your point, if, in fact, the fed fund rate is one percent by 2015, that's too low. it's not going to stop economic growth. >> exactly. in fact, probably should be closer to three percent by the end of next year. john tailor's rule says right now it should be 1.5%. the emergency is over, okay. the economy is expanding. now, the problems are fiscal problems, not monetary problems, but why did the street sell off? was that the reason? because they said it's going to start six months after qe is over? >> to the extent you look at a market which has not seen much of a selloff in the last 100 days we're at a precarious point. last week we actually had five down days in a row, heading into a weekend where we actually knew

what the results of a referendum were going to be. this week we have two spectacular days but nothing has changed except economic data got better. housing data got better. we need to start focusing -- >> not bad. >> really not bad. >> there are some problems with it, don, but because she hinted -- i don't know whether she slipped her tongue or not. she hinted that six months after qe would be finished they might raise the fed funds rate by an eighth or a quarter point. if i were in the business, i would try to focus on fundamentals, profits, the economy, read the newspapers for world news, stay out of emerging markets. i don't think this fed stuff is worth the paper it's printed on right now. >> it's certainly not. for goodness sake, the thing that's wrong with the fed is it's too loose and nothing today decommitted the fed from staying too loose for too long. the risk the investors are

talking about is the idea that the fed is going to somehow slam on the brakes. this fed ain't even tapping on the brakes. what are we even talking about this for? we ought to be changing the subject. we ought to be saying, larry, thank you for so many wonderful years of your service on this show, capitalists everywhere love you and thank you and i sure do, my friend. >> thank you, i appreciate that very much. art hogan, give me some -- jump in, dive in, tell the viewers. >> i have to echo that point as well. it has been a pleasure talking to you. >> thank you. you've both been great to the show. >> i think that if you were to look at this market and say what's the multiple on the s&p 500 and how does it compare to history? it's very reasonable. there are some companies -- take out the bubble companies, the companies trading at crazy evaluations.

there are some other companies that are trading at 10 or 11 times and there's great value. if you are a long-term investors and looking on the your portfolio and chased these stocks, sure, get out of those. but i don't think this is the time to be selling. >> let's get one investment shot real quick. >> invest in opportunities where the show is run by a really smart ceo. right now i would be buying the russian stock index. >> really? really? wow. >> yep. they're cheap and the management is really smart. >> okay. i'm going to chew on that one. that's a very interesting point of view. it was up 8 percent the last two days. was it up today? >> in u.s. dollar terms, yes. in local currency terms, slightly low. that was just a buying opportunity. >> don and art, thank you very much. folks, president obama has

the power to really go after the russian oligarchs. we are going to talk to the man who is identifying some of these billionaires and showing just how we can hurt them the most. stay with us. "kudlow report." 5 of you for $1. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water.

it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. get a $200 best buy gift card during sleep train's big gift event with purchase of selected mattress sets. or, get 24-months interest-free financing. sleep train's big gift event is ending soon. ♪ your ticket to a better night's sleep ♪

these decisions by the russian leadership and the implementation of those decisions are resulting in and

will result in further costs to the russian economy and to individuals and potentially sectors of the russian economy and enterprises the longer this goes on and the longer the russians flout international law. >> yesterday jay carney told us that you should short russian stocks. i want to see them take additional actions. vladimir putin continues to thumb his nose at the western eastern sanctions. including our own. tomorrow officials will discuss whether to push deeper sanctions against moscow or restrict russian natural gas deliveries. i believe our treasury secretary jack lew will be in that meeting. time and again i've argued president obama should go off the oligarchs and their assets as well as other things. this great "wall street journal"

op- op-ed, our next guest agrees. one of the great things, not just your point of view, you're basically saying, go, go, let's do it. you name names which i just love, and i'm going to try this. mckale pokorv owns the nets. leonard faden own the oil chain of u.s. gas stations and dimitri volorov owns something. they have businesses here, bank accounts here. if we put visa is on them and close them down, that would hurt? >> it would hurt a lot. putin depends on people like that to support his regime. his regime has become increasingly undemocratic. he's increasingly unaccountable.

we're going to be living for him for a long time. i don't think he's have going to give up power. if we're ever going to bring him into line it's going to be now. he's reducing his own vulnerable by having these people sell off their foreign assets, the reliance of the europeans on his gas. they'll never do anything. so i think while his elite is still vulnerable to sanctions, we need to do it now if we're ever going to do it. >> if there's a cash drain from russia, maybe he can go after he is oligarchs and maybe he doesn't care if they lose their assets or not. we did some work yesterday. in the moscow stock market alone, big american mutual funds are participants it was reported in the "new york times." they got about $325 billion in the moscow stock market, okay. russia itself raised about $400 billion from the london markets

using depositary represents. if we had banking sanctions, russia would be shut down financially. >> of course we won't do that but you're right. there's no reason not to stop their natural gas sales. there's other places to get it. there's lots in storage. there are ways to hurt them but i don't believe that we will do it and i believe we will pay a price because putin is going to become increasingly unpredictable and aggressive as he has to cement his dictatorship at home. >> what do you think is holding president obama back? everybody is talking about these things, not as elegantly as you have. we had bill crystal on the show and some others and everybody is talking about this. jay carney tells you not to buy russian stocks. >> he can't do it without the europeans. most of the assets are in europe.

the oil will find its way to the market somewhere unless we all get together and refuse to buy it. i don't think he wants a bigger fight with putin. we're going to let crimea slide, let's face it, and we will be grateful to him if he leaves the rest of ukraine alone. >> will he? >> he's not going to grab it militarily. he'll continue to meddle and we'll pretend that we don't like it. >> you write in your column that increasingly he's a dictator. he's closing down the remnants of the free press. the elections are phony. he's going to run again. he's changed the nature of the whole russian country. >> and like a lot of authoritarian people, he can't afford to give up power because he's got a lot of enemies. there are a lot of murders and thefts that are going to be investigated by whatever regime comes next. so, like others, these people, if they let go of power, they find themselves facing criminal

charges. >> he will change the constitution, open the door for re-election i don't know how many times? >> or maybe he'll suspend elections. if you get into a nice enough conflict with the outside world you have a good excuse for saying we can't afford -- >> what you're saying is it's cost free. the west won't make it costly. that's what blows my mind. i don't want a war, i want financial and trade sanctions and banking sanctions. >> for 15 years we've been living with putin and decided he's a man that we can do business with and there might be someone worse. >> we can't do business with him. >> we've done it. >> but look how he repays us. >> i believe it will get worse. >> i'm rooting for president obama. i'm hoping that obama will pull rabbits out of the hat and show toughness. jimmy carter saw toughness

during the iranian revolution and russia. i'm hoping obama does the same. i agree with you, go after the oligarchs. watch his column. it's twice a week in the "wall street journal." that's it for tonight's show. i'm kudlow. thanks for watching. now is the time. sanctions an banks. sanctions take away the oliga h oligarc oligarchs. action from america. we'll be back tomorrow night. k . and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. [ telephone rings ] [ shirley ] edward jones. this is shirley speaking. how may i help you?

oh hey, neill, how are you? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirley ] he's right here. hold on one sec. [ male announcer ] ...you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. ♪

impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

with investment information, risks, fees and expenses >> narrator: in this episode of "american greed"... maurice michael mccant is a convicted bank robber who claims he's gone legit. >> mccant carried himself as somebody who was legitimate. he had the swagger of a rap promoter. >> narrator: mccant offers 30% returns on investments in his rap-concert-promotion business... >> he actually said to them, "you can stop the bleeding that you're suffering in the market if you invest with me." >> narrator: ...and investors are forking over their entire nest eggs. >> i liquidated my i.r.a., and it was to the tune of a million dollars. >> narrator: and later... mark anderson holds millions of dollars' worth of fine wine in trust for clients... until greed gets the best of him.