cents more" tonight. that's it for tonight. thank you for joining us. don't forget to record airshow if you cannot get his life. have a great night and will see you right back here tomorrow. ♪ lou: good evening, everybody. one of the dirtiest and most expensive campaigns of all time coming to a close last night to leaving washington looking much like it did before the first votes were cast. president obama defied the polls and predictions in an election that was expected to be one of the closest in history, even with florida tonight still up in the air. the president won more than 300 a tour of votes to secure another four years in the oval office. many republicans are left in shock at the results asking how with 23 million people unemployed almost 8 percent

unemployment, record national debt in excess of $16 trillion, scandals and controversies from operation fast and furious, the benghazi cover-up, how could president obama possibly win reelection so impressively? a popular vote margin of more than 2 million votes, but an electoral vote margin of almost 100. an examination of the fox news exit polling data shows the obama campaign won big with key constituencies, and a strong showing by the democratic base responsible for putting the president over the top. president obama drawing on the latino community. xbox projecting 71% of hispanics voted for the president. that number up from 67% in 2008 and, of course, the historic level. the president's support among black voters actually fell to 93% from 95, but that was more than offset by zero white voter turnout at its lowest level

since 1992. additionally, romney attracted only the support of 59 percent of those white voters. young voters were a huge reason for the president's victory in 2008, and they turned out for him again yesterday. president obama taking 60 percent of the under 30 votes to govern romney's 37%. governor romney nearly one the independent vote, which he is expected to win at least according to some polls by double digits. instead, the margin was 49%-45. the governor needed to do much better than a virtual split amongst those who don't identify with either party. in the end, turn out tells the rest of the story. 38 percent of registered democrats cast a vote. only 32 percent of republicans turned out yesterday. numbers nearly identical to that 2008 election when democratic

voters outnumber republicans by 7%. president obama, as he did after his first election, pledged to work with both political parties and made an appeal to those who voted against him. >> and whether i earned your vote and not, i have listened to you. i have learned from new. you have made me a better president. and it your stories and our struggles, i returned to the white house more determined and more inspired than ever about the work and the future that lies ahead. lou: well, meanwhile, voters electing to keep the status quo in congress as well. republicans maintain their majority in the house of representatives. democrats kept theirs in the senate. the speaker then minority leader firmly in place in their roles. what are we in store for? here we go. we take all of this up tonight

with a roster of experts and insiders, special report anchor, chief investment strategist, best-selling author, the "a-team." president obama returned to the white house today after an early morning celebration in chicago. his first act after winning a second term was to reach out to senate and house leaders to lay out the legislative agenda for the lame-duck session and to press for bipartisan work on this country's pending issues, including the fiscal cliff, the so-called defense sequustration and, of course, creating jobs. fox news chief white house correspondent ed henry with our report. >> as president obama and his family returned from chicago after the jubilation of victory, his top allies immediately vowed, he will be willing to cooperate with republicans on the looming fiscal glove.

>> nobody wants to see this fiscal cliff without the deal because the cuts are severe, and the tax increases are severe. so we have to find a path for. >> that follows a lofty promises that the president made it a celebration about how the best is yet to come. >> i am looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together, reducing our deficit, reforming our tax code, fixing our immigration distant. >> republicans say they have heard this before, actually, at the last victory party in chicago. >> while the democratic party has won a great victory tonight, we do so with a measure of humility and determination to heal the divide. >> last night the president also revealed he is planning a dramatic move to jump-start the effort. >> i also look forward to sitting down with governor romney to talk about where we can work together to move this country forward. >> except president-elect obama did the same with republicans on the cain.

>> a good conversation about how we can do some work together. fix up the country. >> within a year and have the president did not seem as conciliatory toward mccain and health care summit. >> let me just make this point, john. because we're not campaigning anymore. the election is over. >> the president has made clear mccain and his republican colleagues have simply moved too far to the right to work out any deals. the republican view is the president's idea of bipartisanship is to force them to accept sharp tax increases. there are also skeptical mr. obama is willing to step up with real spending cuts. >> i was interested in his remarks was night about saying that the best is yet to come. well, we would have liked to have seen some of that in the first four years. but maybe he really is serious this time. >> another major stumbling block may be the investigation over the terror attack in benghazi. mccain and republican lindsay gramm have been pressing for answers and accused the white

house's stonewalling. fox has learned the house intelligence committee will hold a closed hearing of benghazi. the demonstration pledging cooperation and sending of witnesses like cia director david patraeus. meanwhile, the fiscal cliff check -- vice-ppesident biden told reporters the administration now has a mandate on tax policy. we will see. lou: thank you. fox news chief white house correspondent. my next guest says president obama won because his campaign was better organized and better at getting out the vote. joining us now, the anchor of special report on the fox news channel, co-host of last night's fox election coverage. first of all, let me congratulate you on that coverage. outstanding work, as always. >> thanks, lou. lou: let me go to, first, the first demographics, slice and dice. i heard every strategist talk at length. romney had to turn out the window. he clearly did not.

he missed it badly. >> you know, 72 percent of the white vote for mitt romney, but he needed a little bit more. because of the obama machine, the organization of the obama campaign really increased the outpouring of support, even from 2008. what is so hard to believe, lou, is that in these demographic categories, latinos, african-americans, the ufo, you know, analysts going in -- and we talked about this ad nauseam -- were saying this is no way for this to look like 2008. elected all these polls saying, it can't be democrat plus seven turn out like 2008. well, it essentially was. and the youth vote went up one point to 19% from 2008. the african-american vote one out. in fact, an ohio the same number

of african americans turned out as turned out in 2008, mitt romney would have won ohio. but that number increased so dramatically that it erased mitt romney's ability to win that state. lou: i will confess to my was skkptical of david axelrod, his theatrics surrounding his mustache, which she gets to retain. the idea that they ground operation of the obama campaign would be as energized and successful as it turned out to be. what are your thoughts on the comparisons between a republican and the obama ground operation? >> well, they just had a better team. they had a better out fit in all of these places, and a lot of people going in were saying, why is the obama campaign spending some much money on infrastructure? all of these offices a grant the country. in the early months there were

spending a lot of money, not only on at going after mitt romney to paint him as a corporate raider and all of the same capitol stuff, but also in getting the ground game set up. then you go to election day. there are people with ipads checking actual voters showing up to the polls, oh, york selling soap. you're here, pushing the button. they have a list. that was not happening on the republican side. so the operation was a lot more organized and just better all across the board. lou: one would have to believe the republicans will emulate in granular detail the ground operation, the next election. >> definitely. lou: you led along with gasoline harrison jennifer griffin, from the outset of benghazi coverage and doing a terrific job of it. we have followed the story closely year. it is one of the great surprises

to me that that issue barely registered in the exit polls. what was your reaction to back. >> well, i just don't think it broke through. i think just at the end of the campaign, i was starting to get the story, starting to get a little bit more coverage from the mainstream media. the cbs tape came out. two days before the election from 60 minutes. that additional footage. president obama talking about it has specifically whether it was a terrorist attack right after his rose garden speech. and did not answer that question. kind of was a different element to the story, but it was too late, and the story had not been covered really at all by many media outlets. so it did not really break through if you look at the exit polls. in fact, president obama, when it came to foreign policy decisions, surpassed mitt romney in who you trust to handle a

crisis. lou: we're out of time here, but i just have to say, i don't recall a number that has surprised me more in exit polling than the fact that 51 percent of the people surveyed said that they blamed obama more than they did -- i mean, president bush more than president obama when it comes to the economy. >> and that is a huge deal. the fact that president bush is still getting blamed for the economy is something that clearly is showing up in those poll numbers. lou: we appreciate it. thank you. great work last night. president obama winning a second term as his party added to its majority in the senate, counting independent democrats could have a caucus of 55 members up from 53. among the most closely watched races, a democrat elizabeth warren beating republican incumbent senator scott brown. and in indiana, the democratic congressman, jim donnelly, defeating richard.

in missouri democratic incumbent successfully fought off a challenge by congressman taught a kid who was not able to recover from comments about women's bodies and pregnancies of an absurd nature. well, in virginia democrat tim kane defeated former fellow governor george allen in thh most expensive senate race in the country. more than $82 million spent on the race. in the house republicans retain their majority with at least 2303 seats. the democrats' 192. ten races have yet to be called. the republicans 233 seats is more than that to one aid needed to control the lower chamber. fewer than the 241, at least at this point, that they hold in the current congress. the most important election of our lifetime, it's over. what happens next? we will lay out the consequences in tonight's chalk talk. wall street reacting to a second

obama term. a triple digit tumble, uncertainty about the presidency is removed, but uncertainty about the markets is rising. charles schwab chief investment strategist joins us here next. you see us, at the start of the day. on the company phone list that's a few names longer. yon once empty fields. busier highways. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, gr stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

♪ lou: voters yesterday turned investors today and turn their attention from the presidential race to the fiscal cliff and across the atlantic the reality in europe of an economic contraction and, well, a continuing crisis. the result, the biggest one day decline on wall street since june. markets opened sharply lower, but the dow and nasdaq breaking below the 200-day moving averages. rallies failed throughout the session. stocks closing down more than 2% on the day. the dow down 313 for the first

time since september. the s&p down 34 and the nasdaq down 75. the sell-off came in heavy trading. over 4 billion. a 4-1 margin. the heaviest volume in six weeks. financials in the s&p down three and a half%, energy stocks down more than 3%. technology stocks above 3%. telecom down more than two and a half percent. stocks were considered to be the beneficiaries of obamacare, big winners today. a ca holdings, a tenet healthcare, community health, all up sharply against the market trend, obviously. qualcomm down during the day. after the market closed it beat earnings targets and reported an 18 percent growth and earnings delivering an upbeat outlook. the stock up sharply in after-hours trading. money that came out of stocks

falling into treasurys, and yields moving lower. the government to in your yield now at 163%. crude oil prices tumbling on fears of a weak economy, large inventory, crude oil, a stronger dollar that was boosted by a flight from european currencies to this country. crude oil down more than $4, under $85 per barrel. we should point out, today's stock sell-off to my as impressive as it is, does not compare with the sell-off when president obama was first elected back in 2008, and the day after election day than stocks plunged 5% after he was elected, and fell another 12 percent two weeks after the election, and by the end of 2008, the dow had sunk nearly 9%. well, joining us now to assess whether that is the likely path for the markets to follow, charles schwab chief investment strategist and senior vice president. good to have you with us.

>> hi. lou: this is a fairly impressive sell-off. what you make of it? >> look, i think yesterday we had two major uncertainties, the dominant one being the fiscal cliff. the last comment, but most trenton center with the election itself. there was some hope that once we get the results of the election we would have greater clarity on the big uncertainty, which is the fiscal cliff. what a surprise is we don't have any more clarity. very few are expecting a twist of the selection. the market is belatedly digesting the impact of a continued standstill on this clause issue. lou: the idea of removing uncertainty, the market should be very careful what it asks for because now that we have clarity it is clear that there are some policies that wall street and investors at large disagree with. it's also clear that this ministration is going to press ahead with this agenda, which means we're going to see higher taxes and significantly so.

>> well, theyyre going to attempt to press ahead with their agenda. but if you listen to the speaker and many of the house republicans that have already weighed in and they're also digging their heels in on the tax piece. i think there is some low hanging fruit inside this amalgamation that is the fiscal cliff, including maybe that alternative minimum tax which was set to in snare another few million taxpayers. lou: we should say middle-class taxpayers. >> middle-class taxpayers and absolutely. slowly creeping down into the middle class. and i think this sequestration to some degree is a low hanging fruit. you may be able to take some pieces out of the fiscal cliff, have even possibly a lame-duck a just been made to those. the problem is that the bush tax cut pieces not decided and it goes over the cliff, even if it eventually is fixed and made retroactive, we don't have enough cushion in the economy offset the impact that is going to have, and that is, i think,

the increased risk of recession as we look into early 2013. ahead on the market today. lou: early 2013. do you believe investors, these markets have sufficient confidence in this president's and this senate and congress to go into that time where it six months, nine months, deliberation and hard effort to actually reform the tax cut? what do you think the market reaction would be if they were to take a thoughtful the liver approach to tax cut reform? not one of these 98. >> i think it would be a huge boost. not just to the market, but to taxpayers, businesses. i think it would be huge. i have a somewhat personal bias because i sat on president bush's bipartisan tax reform commission in 2005. the whole notion of needing to do this is near and dear to my heart. i think there is bipartisan support for it as opposed to the

short term fixes. the biggest positive that could come out of this. on the tax peas we tackle the full on reform as opposed to piecemeal approach. lou: were talking about 9% decline in the market the day after the president's election in 2008 to year's end. what do you see in the next few months? >> i don't really see a circumstance like that. we had the entire global financial system in free fall. we were at their early stages of the crisis. i think we are largely on the mend now in terms of the financial part of the crisis. i think there are a lot of coral springs in animal spirits waiting to bubble up. all lot of the effect of this fiscal cliff, to some degree, has already started to happen and has been happening, at least in the impact on businesses and their willingness to invest and spend. whether we have any near-term

outlook, that vow of clearing is a different story, but i do believe that there is a coiled spring. lou: all right. a coiled spring and on the mend. >> i hope. lou: thank you so much. >> thanks, lou. thanks for having me. lou: up next second place finish raising a lot of questions about the republican party, its viability. we are talking about remorse, recriminations, re-examination. the republicans failed to meet our modern-day challenges? we are joined, and the president's campaign strategy working exactly as they planned. america turned out, handed him a second term, and some of the biggest implications, ramifications, and consequences of four more years. we take that up in the chalk talk and the cost thereof. ♪

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♪ lou: folks are talking about consequences of the elections gaza we thought we would get right to hit tonight and just show you a few consequences of yesterday's vote tallies. end the cost thereof. cost, by the way, to you, to meet demand our fellow citizens. by the way, anybody who is under the illusion that this just affect those are making over a million dollars a year, please understand, we are going to introduce reality. grab hold of your chair if you have one nearby. we will talk about the consequence and the cost very quickly. twenty new obamacare taxes kick in, and in that 8389% investment income tax right in behind. and this means that, well, everybody is going to see just

under 4 percent added to their capital gains, even the sale of your house, folks. wait a minute. on middle-class. i just want to be in the middle class. they tell me that wouldn't happen. it's going to happen. on every transaction over a quarter million dollars. $86 billion in medicaid payroll tax kicking in. 65 billion individual employer mandated tax, another 20 billion in medical device tax, and the bush tax cuts are going to go away the first of the year. hang on. that's another just about $80 billion. and we are going to see of 30% tax rate on million-dollar incomes. $200,000 or 250? this is what we don't know, and this is what is going to be worked out. the amt, this tax is supposed to

be protecting people being sucked up into the inflation tax. this is going to get middle-class taxpayers, going to affect 26 million people. extended unemployment benefits and. the security, social security payroll tax, that is another impact. $55 billion is the result of sequestration will hit at the end of the year, and those cuts will hit the defense department. what we are looking at is an amazing, an amazing set of possibilities and shaving $55 billion out of the pentagon budget next year, a million and a half jobs are at risk. as the president is so fond of saying, alexian's do have consequences. we had our election. here are just some of the consequences. another brutal blow to of victims of hurricane sandy. high wind, rain, and snow as a potent nor'easter it dumps on

survivors of sandy's devastation . president obama secures a second term with wins in crucial swine's -- swing states. what can we expect in the next four years? the "a-team" is here. where republicans go from here? governor romney fail to attract major voting blocs, women, youth, blacks, and hispanics. does the blame falls on the can it is? the party? and klein and brad blackmun joined us to talk about the future of the gop. ♪ says

♪

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for the presidency dollars in the majority of the swing states. joining me now to talk about some of the reasons behind that, the shifting demographics, republican thinking in strategy, we are joined by former deputy assistant to president george w. bush, also with us best-selling author, and klein. this is as if the obama team did not -- it just knew exactly what would unfold. that is how together they were. it was the inverse for the run the team. >> that's correct. the campaign never ended for obama after 2008. as a matter of fact he kept his people in ohio, expanded his operations. knew what he had to do to work. visited about 80 times since he has been president, and the republicans were on notice. we knew we had to do, and we

shirk our responsibility with regard to the average necessary. you can ask somebody to vote and go to them only when you need their vote. you have to court their vote, give them a reason, an affinity, not only to vote for your party, but to vote for your candidate. we sure to responsibility with women's, and hispanics and african-americans. if we're going to have success in the future be better give these folks have a reason to have an affinity to candid it's with select it. llu: the republicans did not even turn out to vote. the democrats' response to be an energized. there were not supposed to have all that intensity. good grief, there were not even showing up. >> the cost per at, many times more than the democrats because they bought them late and they bought them and a very inefficient way.

the whole campaign was just shot through with an efficiency. lou: do you think it will be as easy for the republicans to raise money next time? >> i'm thinking people talking about, is there a silver lining for the republicans, and there is no doubt their is a lot of attractive potential candidates, bobby general, and nikki caylee, te crews, marco rubio. you can go on and on. the question is, will the base which controls the primary situation, control the primary candid it's, well the base go for any of these people, these populist conservatives overvalued conservatives? lou: how do you react to that question? and let me pose another. i was talking with someone who i will not name. he said, basically, the republican party has a strange feeling of being something, but said in his hand, does around

and calls that a political party. and i have to ask you. is it really that bad? >> well we need to do is get back to basics. we have a party of great principle. look. you can be a member of the republican party and believe 99 percent of what the platform, 30 percent of the platform. if you want to be a member of a party i assume you want to at least believe 51%. you want to believe in the majority of what the party stands for. not be afraid to disagree with party members. it is not our way or the highway. unless we reach out to people who would have an affinity to join us. the problem is we have taken them for granted, and we need them to be a successful party. more importantly than that, america needs a good, qualified candid it's within the republican party that look like america. lou: if i may say, america needs

those leaders with exactly those qualifications and characteristics. you're right. i don't think most americans really give a darn whether it comes from the republican side of the democratic side if the republicans are going to continue to put out the quality of they have. that does not garner the interest to my attention, passion of the voter. you know, it is immaterial to most americans. the party is called republican or whether it is called raptor. the fact is, the republican party looks to me as it often looks over the course of the past 30 years to be in dire straits. >> i agree. i think there is a lack of identification on the part of the voters with the republican party. a look at the republican party and say, that's not me. the republican party has to look more like them, not only physically but to convey their

very deep feelings as well. lou: any prospect in your judgment that president obama is sincere and serious and genuine about reaching out? were going to talk a few weeks. calling of the leaders in the house and the senate today saying, we're going to get some things done. is this sincerity or is this political theater? do you think the man, if you will, evolving and growing as president? >> remains to be seen. one thing is for sure. he pulled the same stunt. the speech he gave last night is the exact same speech he gave in 2008 when he won. now we need to see results. the president is forced into a box. he does not have a mandate. less popular vote that he did the last time. and so the burden is on the president now. lou: also more than enough. it. >> no question about it. if anyone says the president has a mandate, they're fooling

themselves. on the other hand, the republicans must reach out there hand. if there is good faith on both sides will get a lot accomplished. not because the president wants to but because he has to. >> i don't think you will see a personality transplant and barack obama. i think you're going to get the same barack obama that i found when i did 200 interviews from a book. a guy who really cannot reach out the way a raw reagan did to tip o'neill. come on over, have a drink. let's work things out. does not barack obama. lou: thank-you. stay with us. a nor'easter bearing down on the hurricane a sandy-ravaged coast of new jersey and new york. we will bring you the very latest. ♪ follow the wings.

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♪ lou: a nor'easter bringing high wind and heavy snow to the east coast sennight just nine days after hurricane sandy battered the region. forecasters predicting the storm will last into tomorrow dropping 3-6 inches of snow in philadelphia, 6-12 inches of snow in southeastern new york and new england. wind gusts could reach as high as 60 miles-per-hour. major airlines grounding flights in and out of the new york region and of the storm. some communities along the jersey shore ordering mandatory evacuations. almost three-quarters of a million homes and businesses remain without power. back to the election and the president's second term that could tip the political leanings of our supreme court. liberal justice, 79 years old. she could retire within the next four years. certainly not alone. conservative justice antonin scalia, the same age as the

court swing vote. by the way, only 57, but he is already, well, he is going through something. usher is aging. taking on a different perspective. same-sex marriages and marijuana scoring big victories in state ballot initiatives last night. maine to maryland, and washington making history becoming the first dates in which voters legalized gay marriage. washington and colorado also became the first state to legalize the recreational use of marijuana. i said recreational. california passing a measure that raises the state sales tax by a quarter of a percent, and the income tax for high earners. maryland became the first date in the nation to grant institution breaks for illegal immigrants. there is a direction here, is in there? a tale of two shearson aggressive arizona. a sixth term.

and 80-year-old mary republican who calls himself the toughest sheriff in america, and lots of people believe him. for it -- further south, a second term. a 43-year-old openly gay republican and a very public dispute with his former lover who is also an illegal immigrant both men won a convincing 53% margins of the vote. perhaps a metaphor, if not for arizona, for the country. i have to tell you, i like both of these guys. they do good work. up next, congress now on the clock. the nation less than two months from going over the fiscal cliff. will they put the country before partisanship? the "a-team" taking that up and more.

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♪ lou: well, i am excited to talk to the "a-team" tonight. radio talk-show host, fox is contributor, veteran political consultant, advised president clinton, among others. the american spectator senior editor, fox news contributor. i have to start with you. you called this thing right down the line. you had the best sense of this of any strategist i talked with, and i just want to congratulate you. the idea that the republicans cannot deliver the vote. did somebody forgot to tell that many republicans it was a pretty important election, the most important of our lives.

republicans don't even want to say hi. >> is not the republicans. the republicans can't tell people might be republicans how they ought to think about things and get them to accept it. that's the problem and why the party is in trouble today. lou: do you agree? >> there is a demographic time bomb. young people voted 60 percent for obama. older people shuffle off. lou: you mean croak. [laughter] >> that is a problem. i think the biggest single warning sign i saw was in the asian vote. it went from two to 3%, went up dramatically. john mccain got 35 percent. mitt romney, 27. that is very troubling for republicans. lou: let's talk about the democrat, happier story. the idea that this president performed better, did not do

quite as well. he was down from 2008 with young people, but still enough to win. what are your thoughts about the way it went down? >> i was so surprised about the rapidity with which the race was called. but i voted on friday. it took me about two and a half hours to vote, which was shocking. i had no idea about that so many people were going to be in the system trying to vote. early voting was an indication to me the something else was going on. if i talk to these people, i heard how they were just really angry. the south side of chicago. primarily african-american, at least in that section, and they personalize a lot of the attacks lou: matt. >> not just angry.

hurt. lou: i have to go to break. >> legitimacy as an american was questioned. lou:, on. we're coming back in just a minute. we will find out what's going on were coming right back. those surprising little things she does still make you te notice. there are a million reasons why. but your erectile dysfunction that could be a question of blood flow. cialis for daily use helps you be ready anytime the moment's rit.

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poor black folks. >> poor black folks. neil: that is what were saying. lou: someone was was -- >> saying he is aikennian. lou: you are talking about president of the united states, someone is south chicago talking about the being legittize. what do i do? >> this is voter is up recession, -- seppression. >> this is ridiculous. lou: there was a conspiracy. >> we had. a demographic shift. 72% of electorate was white, mitt romney outperformed everyone.

this is a changing country, republicans have to recognize that. lou: they are not smart enough to figure this out? you have got to be kidding? >> this is a serious problem. fact that republicans are seen as old, white, men, not particularly kind to women,. lou: that is pure bull. the fact it was george w. bush who started comprehensive immigration reform for these followers that got in line. >> they have to change the perception and get the votes. lou: you got the votes, congratulation, we appreciate it. thank you very much. now time for your comments, carroll wrote in, how could anyone beat santa claus, obama? no one did. and lou please continue to speak with the logic.