gerri: our nation's capital is banning vanity license plates. washington dc doesn't care for the pro-democrat or pro republican, they are all forgotten. liberals are out of luck if they want these plates. libertarians cannot support their favorite candidate, ron paul. the capital city has posted a 53 page list featuring 20,000 license plates and you can see this whole list if you really want to look at it at government attic.org. it is a little ironic that you can't put freedom on the license plates since it goes against many of ours. that is it for tonight's program, we will be right back here tomorrow.

lou: good evening, everybody. thank you for joining us. president obama for the past two months has been preaching that the wages of sequestration would be apocalypse. doom and gloom and devastation, he warned. it turns out he was simply wrong on so much that he warned us about. and as far as the stock market, it is hard to imagine that he uld have been more wrong. investors tonight celebrating a record-breaking performance on wall street, driven by a triple digit rally that resulted in a new record high for the dow jones industrial average. 14,253.77. millions of investors talking about what president obama has been talking about for so long. markets that lookout six to 12

months, obviously seeing a brighter prospect than does our president. the dow jones climbing 126 points on theday. settling at just about 14,254. shattering the previous record. the wilshire 5000 also closing a record high since the 20th of january. u.s. equities have gained about $11.3 trillion in market capital. since the march 2009 lows. the s&p is up 15 points. the nasdaq is up 42 points. both indexes reaching a 52 week high today. the markets looking healthy. the dow jones now recovering all glosses that have been incurred during the finanal crisis and more. there are striking differences between today and october 2007.

we thought it would be interesting to take a look at some of those differences. the national debt is massively larger. the debt that was just over $9 trillion in 200. today is $16.6 trillion. as a percentage of gdp back then, it was only 30%. it has risen to nearly 75% over the past four plus years. the unemployment rate last month, 7.9%. in october 2007, unemployment rate was 4.7%. the average price of a gallon of gasoline in october 2007 was $2.75 per gallon. as you see there, now it is $3.7per gallon. the obama administration remains under considerable criticism today for overhyping the effects of the sequester and critics charging that the president

playing games with some of the services being cut, such as tours of the white house. ed henry has our report. >> just in time for the spring break rush of tourists, white house officials today notified congress that they are taking the highly unusual step of canceling tours. >> due to the sequestration from the white house tours are canceled effective saturday march 9, 2013. until further notice. reporter: an aide to senator tom coburn has said that they have jumped the sequester while other said the president is trying to -in up the impact. >> i think it's political, but i also think it is transparent. the public is looking more from leaders in ending tours at the white house. >> airports are facing major way kinds. i think with the current weight is gone, we could see a lot of missed connections.

reporter: the secretary herself said she was not sure of the details and would have to check. >> the secretary of transportation made it clear when he spoke from the podium that there will be negative effects on air traffic because of the reductions and the faa man-hours. reporter: questions are also cropping up about 70,000 kids getting kicked out of head start that he brought up. >> they are trying to figure out how can i keep my job because they can't afford childcare for their kids. reporter: congressional republicans know that it was only two years ago that head start out roughly a 5% increase in funding. so how does a cut now lead to massive problems? >> i don't have it in front of me. i trust that we will get the information. i find it remarkable that those

who weeks ago and months ago were saying the sequester was the worsthing that could happen, they now embrace it as a victory and try to diminish its impact on the most rrible people in america. reporter: officials testified today that they do have major worries about the impact on troops returning home from afghanistan. with the national commander john hamilton on capitol hill saying that he is deeply concerned that the sequester will damage the department of defense and the veterans affairs. white house officials know republicans like speaker john boehner have issued similar warnings about national security. although gop lawmakers countered that claims on the domestic front undermine the president. >> it reminds me of the little boy who cried wolf. his credibility has been strained by claims of his administration that we find out things were not issued as a

result of the sequester. reporter: is on the map they have done come up to 14,000 teachers could be laid off and up to 70,000 students could lose access to headstart based on the average cost per child they have done. as you know, the education secretary arnie duncan has a statement that he made about the thing that it turned out not to be true. lou: thank you. ed henry for fox news, the chief white house correspondent. our guest tonight says the president has been trying to make the sequester look like it is apocalyptic and weimar economic problems on the rection in government spending. joining us is the former mayor of new york city, rudy giuliani, it is great to have your. >> nice to be here. lou: let's start with the sequester. his administration has racked up more pinocchio is than i can ever recall. >> it makes no sense.

a 2.5% reduction, a cut in the increase of spending. i don't know why anyone ever believes this in the first leg, but it shows that this white house is doing this for political gain. that we have serious and long-term economic problems. instead we have a president running around, crying wolf no effect. lou: so you're not persuaded that it would be necessary to cut down the white house to earning? >> well, i guess they had to sacrifice something. it's totally crazy. the rating agencies are making a point that this wasn't much of anything to start with. we have a long-term debt problem. this leader should be helping us deal with. that they shoulde setting the tone. instead of going the opposite direction. lou: the president used to be

referred to as no drama obama now it is relentless. the republicans seem to cut come up with an approach of a strategy, if you will. a demeanor that is appropriate and that is that they will insist that they are actually are going to have to put together legislation to introduce it. there must be hearings, the public will be heard on these issues. if so, hallelujah. >> i think after a little bit of difficulty in figuring out how to do this, the fiscal cliff, all the negotiations, i think they are now on theright track. i think they handled it absolutely riht. they did not get bullied by all of the nonsense thpresident is putting out there. i think they will go back to an open process with the budget. city council the city council always had hearings on my budget and it was a three or four

months process, enormously helpful in giving support and making arrangements. lou: there must be some sort of allure to have thos secret meetings, if you will, the private meetings with the president over these issues, coming up with a grand bargaining. that must be intoxicating to some. it is calamity so far for the republicans. >> it is. they all have different viewpoints and they needed chance to make their points. sometimes their points are very good ones. i think it is very counterproductive. when you have a president who really doesn't know how to negotiate, a resident that it's my way or the highway, someone that wants to negotiate and then go out and make a speech about what a bum yo are two hours later. i cannot imagine how he would've passed the budget doing that. he gets away with it because the media.

he is trying to get republicans to meet him halfway and then he batters him on the stump. he is elected for the next four years. he should start acting like a president and not a candidate. lou: the republicans with tht approach, they seem to have found their voice. speaker boehner in particular. and he say things like no one in washington seems to understand what this is all about and how to resolve it. the next thing we know that jeb bush is selling a book and attracting from what would be a president in great survey on the front pages of our newspapers, even "the washington post" and "the new york times." >> there is no leader of the republican party. john boehner is the leader of the house, the senate is a totally different story. people out of office, we have a lot of different voices and i think that will be the case until we have a nominee. lou: you are certainly one of the wiseman for the republican

party. at this point, do you feel that you are being listened to by those that need to listen to the wiseman in putting forward ideas, whether it be illegal immigration, gun control, saying that this has to be a united approach? >> i think so. there were a number of different viewpoints. you're never going to be the predominant predominant viewpoint. i think that the party is making the right steps. i think speaker boehner has a pretty firm grasp on what is going on. i think that some of the movement to opening up the party more than we have in the past is a greater thing to do. >> i believe that we have to figure out a way around the social issues because i think that those are the ones that are the very difficult ones. we have to figure out what is

relevant to women. we cannot expect to be the majority party if we are not relevant with women. the idea that jeb bush has moved this way on immigration, suddenly he doesn't believe that any resolution of our illegal immigration crisis is working. what do you think? >> it's a two-part process. you have to stop at the border. we need more resources, we have to be sure that people aren't coming illegally. then we can do something good. we put the good ones on the road to citizenship and get rid of the bad ones. i have 400,000 illegal immigrants when i was mayor of new york city. some of the more -- actually we should point out that they are not the crime problem in communities across the country, they actually have a lower crime rate than the general

population. >> mixed in with them, open borders are danger and irrespecve of illegal immigration. terrorists can come in and they do come in. we should control our borders like any civilized country does. we need to increase our resources in order to do that. lou: very quickly. are your what are your thoughts on gun control, universal background checks? >> i supported the assault weapons ban back in 1994. gun control isn't going to stop crying. new york has strict gun control. chicago has 3.5 times the murder rate of new york. the new york city police department sees the guns daily in large numbers. we have taken him away from the bad guys, that's what you have to do if you want to solve the problem of crime and if you want

to avoid another terrible situation like sandy hook. we have to enforce the laws that we have. a few more laws, okay. but they are not going to solve the problem. we must enforce the ones that we have. lou: we must talk another time abt that assault weapons ban. mayer, it is so great to have you here. always good to see yo venezuelan president hugo chavez died today after a two-year battle with cancer. the vice president ming the announcement just hours after they expelled two u.s. diplomats in the country. his cancer was caused, he said, by power play. he gradually placed all state institutions, including the oil industry under his direct control. he frequently railed against the united states in an effort to promote a leftist recycle across latin america as well as his own

country. hugo chavez, 58 years old. lou: no more drama obama. has the president proved his professional standing with the author of the best-selling book the amateur? ed klein is coming up next. and the dow jones at a new record high. u.s. economist stephen whiting

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lou: record highs on wall street today. stephen whiting joins us in just moments to give us his insight and perspective. the dow jones industrial had an

all-time new high. the dow jones of 126 points, closing at 14,253.77. that is a long way from its start back in march of 2009. 6547 points to give the dow jones at full value. the s&p 500 within 25 points of its record tonight. the nasdaq gained 42-point. all the way up to 3.6 billion shares. stocks of the big board finishing today higher. the the biggest gainers were on the dow, hewlett-packard. the biggest dow gainer since march 2009, american express has gone a little over 500% at that time. and in the commodities market, gold rose $2.5 per ounce. 10 year treasury bonds rising. stocks have gained about

$11 trillion, up to $11.3 trillion since march 2009. this year alone, the dow jones industrial more than 8.5%. the s&p up nearly eight points. joining us now to take a look at whether the these stocks will go higher and just how soon, stephen whiting, and i don't mean to put too much pressure on you, but we will. [laughter] >> let's turn towards today's remarkable performance. this is a moment for all of us. >> well, the economy has handled fiscal tightening, large tax increases at the beginning of the year, holding and stronger. spending cuts are small,. >> so many people, they keep

talking about $85 billion and the impact. the real effect is much smaller. far more harmless than many suggest. >> i do not want to minimize the effect on individuals, but the congressional budget office has said that spending authority is wanting in spending cuts is another in the amount to about $42 billion. >> over the course of about seven months? >> yes, if this lasted 10 years, it is honestly not ideal. people who are unemployed might become a little bit concerned about being nemployable. lots of policies that we could take dealing with our fiscal problems over the next three decades.

lou: what would that be, dealing with entitlement? >> absolutely. the one thing is to deal with the long-term structural spending. we became a little bit more pessimistic on the lack of action or. lou: i smile because i'm thinking the president obama, as he watches and listens to you, he might be scratching his head and saying, what do you mean we? this is a me thing. the president has chosen not to submit a budget. the senate has chosen not to put forward a budget. he has chosen not to cut spending. this thing probably isn't as much as we would like it to be these days. >> you have the wrong guy for politics, i'm the data tells everybody we have a problem. we look at the medicare system and for 30 years, roughly, stable demographics, growing in excess of 9% per year. you know, some of the spending

sloan in the growth rate. but if you look at the population of 75 years and older. people have a low participate. in the coming decade it will grow in excess of 4%. >> we are the youngest country in terms of the medianage. our age, 65 and over, group of americans, 80 million between now and 2030. the problems will exacerbate themselves. as we are talking about the realities, and i'm sorry that we have to bring up politics because we are in the midst of the sequestered. which is politic as it gets. looking at a continuing resolution, which is a political as it gets because we are involved in a political economy. you can separate the two, you are ingenious and i defer to you

>> we have the highest cost of aging from the fiscal perspective. the imf is estimating that we will get re fiscal worsening in japan does in the next 15 years. >> the international monetary fund is a notoriously bad forecaster, just about everything to do by country. the issue here is we are talking about this entitlement. what we are looking at is how we are going to distribute those resources. coming back, we will talk about how to do that right. good to have you with us.

lou: coming up next, i.c.e. releasing thousands from detention. and congressman bob woodlot is

lou: an official with the man splnt health service in north carolina said agriculture department sent him the following e-mail after asking about flexibly in the sequester cuts. >> it is your opinion, you need to make sure you are not contradicting what we said the impact would be. >> you got to love the government or politics of government. joining us, the amateur, good to have you here, ed, what do you make of this? a direct order to inflict pain because the president said there will be pain. >> it is clear this administration wants the

sequester to result in great deal of pain to point his finger at the republicans and say it is assault your fault. lou: has anyone in this administration considered the inverts, if they continue with this nonsense they will be blamed for whatever pain results. >> he is the one -- he is the president. i was speaking to a very liberal somebody very important in the liberal spectrum. you know what i mean, he said to me, that i think this president -- this is a very liberal guy, i think this president. lou: he sounds like the "new yorker," am i close? >> is over playing his hand, in that. the people expect him to be a leader, not complaint and carry on and say all their fault,

and.fingers, get them felt together, make it happen. lou: i hear people say, they want him to be a leader, is anyone paying attention to his record as president of the united states in his first term of office, why would there be a departure of his pattern? >> i hear you, he has not changed his leadership-type. his leadership skills are not there, he is still the amateur. lou: and goes after bob woodward, who has recanted his inintimatetions of threat, and d gene sperling over for sunday lunch or brunch. >> he invited the president too.

lou: who not go. >> i think that bob woodward's sin was to demolish the very center of the president's campaign against the republicans, this sequester was there fault, and wood ward pointed out it of the the president's idea in the first place, he moved goal post, that undermined whole tactic. lou: gene sperling acknowledged that out loud in front of bob woodward and god everyone and important, including the american people. >> i see the fine hand of david axelrod behind this. it appears that what this presidentments to do is kind of -- president wants to do is just go through first two years of second term, and get a democratic house and pass these liberal bills. lou: that is a lovely thought for the president but there is a matter of perhaps republican resistance. we see if they learn anything about grand games.

and having more voters than the other fellow. >> thank you. lou: the book is,, the ma amate, you can get links to it at loudobbs.com, and you can go to our facebook page as well and you can tweet me as well, we're coming right back. >> colorado lawmakers want to roll back second amendment rights, colado gun owners are not taking it lying down. >> a-team next. what sequester? the tsa is getting snappy new uniforms, we'll tell but that multimillion dollar deal. >> and why do they call it the department of homeland security, they are releasing thousds of illegal imgarage immigrants from ourselves jails. ourselves jails. house at a dry cleaner, ourselves jails. house we replaced people with a machine.

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lou: homeland security secretary janet napolitano vowing to release more illegal immigrants because of the crushing demands of the sequester. but the secretary say the it is only several hundred being released. >> career officials made the decision there were low level detainee that could be put into a supervised police program, we'll continue to do, that several00 are related to sequester you about it is not thousand. lou: house judicary committee has obtained a document that shows lands to release up to 5,000 illegal immigrants. joining us now bob goodlot of virginia, good to have you with us mr. chairman. >> good to be here, lou. lou: the effect is that secretary is misrepresenting the

reality of which she is aware it originates with one of her department. >> it showed not only they intend to release up to 5,000 or more, but also, this was planned ahead of time they knew that going in and a a result, it is calls into question whether there was done in order to intimidate to engage in scare tactics with the american people to convince them that sequestration was bad, and they should blame other people rather than take responsibility for doing the right thin, -- ming that is to manage spending cuts needed in a responsible way, when she says these are low level fks, they are fraud, and theft and convicted. those with more serious crimes who have not been tried yet, they are releases them as well this is a serious under taking they are doing for people who are not lafly in the country on

lawfully in the country to begin work they should be deported. not released on our streets to commit or crimes. >> this does not more than compound the complexity of what you condent is the very come complex issue of illegal immigration, border security, andow to best resolve it this to me is peculiar that administration would make your job more difficult by doing things like this, as well as the obvious issue of opening society being vulnerable to all of the criminals that you are talking about being released. >> well, you are right. this is a bad idea. but to put it on top of a legitimate effort in house and senate to try to solve this very difficult problem, of immigration reform, legal stilling wel legal immigration reform, when president said, pass a bill or

i'll demand you pass my bill, that kind of thing was not well received a couple of weeks ago, now, to suggest to the american people, that a way to handle the sequestration is to release criminal aliens to our streets making it difficult to win the argument we can do immigration reform and make sure this does not occur again in terms of millions of people coming into the country iegally, how do you convince them of that when thedministration has to carry out the laws, and they are not carrying out the laws, they are doing the worst, they are releasing the people least desirable to u.s. have u.s. back on the streets to make crimes, not representative of the average person that we're trying to address in this problem, they are highlights the worse people, saying we're fine with those people being out on the streets, a very bad situation. lou: jeb bush the other day, telling -- well yesterday, telling the today show, that in

his new book,hat he is opposed to citizenship or illegal immigrants, is that helpful? does that add comment blessty to your job as well? >> it is a responsible look at the question that we have of all of the members of the house, republicans and democrats, that is where is that sweet spot between deportation, and citizenship, where we can bring people out of the shadow, not criminals, they should go home. but people who have come here, illegally and not committed crimes should have some kind of an opportunity to come out from shadows and live a more open ex iexistance and pay taxes more responsible for the community, it does not have to be citizenship, it w interesting to see former governor bush take that position, we welcome hearing his thoughts and others. lou: he had previously been for

pathway to citizenship, do you believe that house will preserve regular order, to have open hearings and go to the normal process of the house? >> it is so important that we do that on all our legislation. but critically important for immigration, most members of congress do not know a lot about this issue. we need to bring them forward educate them about itby do that with briefing sessions and holding -- we held 4 hearings on immigration, we'll hold hor, and try to bing threw this regular order that is how you build support from bottom up, and pass something. when senate tried to the other way 6 years ago it collapsed when public found out what was in the bill 92 some might suggestion they are attempting it with all best of intentions now with bipartisan gang of 8, your way sounds like the american way, thank you.

>> we welcome the work of the gang of 8, there is a group in the house doing it too, once they produce it, it should be worked through regular ord to see what ideas could work. what might need change. lou: thank you congressman. mr. chairman. >> thank you, lou. >> up next. the tsa, well a $50 million purchase just days before announcing an extremely controversial carry on rule change. and what happened to the sequester? that is next ♪music plays thank you orville and wilbur... ...amelia... neil and buzz: for proving there's nowhere we can't go. but, at some point... giant leaps gave way to baby steps... and with all due respect, you're history. if you taught us anything, it's that you can't cling to the past... if you want to create the future. that's why, instead of looking behind... delta is looking beyond.

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and contract is a company that has some manufacturing facilities in mexico, and tsa announced a rule change, starting april, air travelers will be able to carry on knifes with short, retrackible playeds, ski poles and up to two golf clubs. go figure. >> and opponents rallying outside of the white house. democrats so intent on passing the measures one say the senator challenged a rape victim to was testifying against a proposed ban on conceal firearms on college campuses. >> i just want to say, that actually statistics are not on your side even if you had a gun. the colorado -- >> stand to that?

>> just wait for. >> for every one woman who used a handgun to kill someone in self-defense, 83 were murdered by them. >> respectfully, senator, you were not there. i know without a doubt in my mind, at some point, i would have been able to stop my attack by use my firearm, he had a weapon of his own. he didn't need mine. lou: the committee approved ban, colorado's full senate takes up gun control measure later this week. lou: up next, white house cancelling all public tours because of -- sequester. a sequester cancellation of -ours, imagine, the a-team takes up that and more. they will be joining me, next. dentures are very different to real teeth.

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lou: joining us now, a-team, fox newing well analyst, tamara holder, elease wheel, and john. let's start with first, i was struck by the 7 bills that colorado legislature moved ahead, the she'l shield law, i t existed for manufacturers of gun. >> colorado said, you manufacture a gun, if you intrust someo else with a weapon, and a crime is committed, you manufacturer or seller are liable, can be sued. and the shield law pro help its

prohibits any act, federal law trumps state law. lou: the folks in colorado do not know what they are doing. >> a lot of time state legislators do not know the law as much as they should, you do not have lawyers that are pushing it forward, but difference to understand is tort versus criminal, they are making this a criminal law, there are so many people thanningly -- >> this is a waste of everyone's time. >> it not, i'll tel you why. >> let me finish, they knowingly fell to people that -- that -- >> you are saying that weapon manufacturer knowingly sells? >> the manufacturers and dealers. >> but language, look at to language of law. reasonably should have known, might use a weapon. that is so vague, so broad, how do they enforce that. >> they don't intend to, this is pure polics. >>here you go. >> i have friends who work in

colorado legislator they have lawyers who have warned them about this it takes a year, and a half to go through courts and be struck down, in meantime they get point for passing gun control, there is an eleion they can campaign on this. lou: i am struggling to understand why colorado, one of these great western states, where the second amement is very important. to i would think nearly all of the folks in colorado, they would let this happen, it is striking this is going -- >> you have columbine. lou: you have 10 stating moves ahead. >> there say lot of fear and pressure. lou: fear, that is being fanned by a vice president interceding in a state's issue, this is remarkable stuff we're watching with this administration. >> interesting you have this behind the scene look, i agree, i cannot imagine that these administrations are being told by lawyers, they are going to

look stupid when thi comes out. lou: how stupid does the secretary of department of homeland security look saying it is just a few hundred illegal immigrants released because of sequester, we just listened to chairman of house judiciary committee said there are 5,000, and they have the internal documents to demonstrate she just misrepresented her own department. >> i don't think we know how many people are actually held by dhs are held and have been found guilty versus are still fighting a case. lou: wait, before you muddy the waters beyond recognition, we know it is over 30,000, it will be reduced to 25,000. >> but they are low level, end offender. >> they are criminal. >> what do you want to do. >> the law is clear, if you commit a crime in this country, low level or not, you became subject to immediate

deportation. to release these people, is an interesting theory, but it is not the law. lou: before -- we should come back to facts, as stipulated and assertedy chairman of the committee, the fact these are not low level criminals, they are in fact as he said, guilty of fraud, and more serious crimes, in this country. this is not a -- >> they are crimed of what they call morale terptude, these are violent crimes, there is a whole other level, reentry after deportation, that is not going to be prosecuted. lou: a new record on the dow, we have seen $11.3 trillions in market cap added to this market the equity market since march of 2009, the bottom, sequester is here. and we're having a celebration.

>> we're celebrating another disof aer and government policy, -- disaster and ridiculous government policy, monetary expansion, they have been printing so much money. >> you bridge th bring the fed . >> it is true. lou: it is not what i asked. go ahead. >> look,. lou: if you want to talk about the fed you can wear us all out. >> there is no cause for celebration, we've reached top of the market, that is all. >> the republicans don't want to celebrate anything that is good in this economy. lou: darn republicans, awful republicans. >> that is what is happening because -- you will ruin it. the dow is doing well. lou: you get last two seconds. >> i'm happy the market going up. >> sweeting inness of it all. that is it for us, we're glad you could join us, join us with the spark cash card

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