giving family privacy is discussing. kennedy: i like everything about you.c thank you for hanging on ford a dear life. ♪ wishing you a joyful might. ♪ lou: government reserve chairman ben bernanke announcing tapering of the fiscal program will finally begin next month. and wal street celebrating the news with an almost 00-point rally on the dow jones industrial. ben bernanke is a polar fellow tonight. i am lou dobbs. ♪ ♪ ♪ lou: good evening, everyone. ben bernanke announcing that they will reduce the bond program by $10 million in january. while saying that the paper will continue further measured steps at future meetings if the economy stays on course.

and here is the outgoing fed chairman explaing why the decision was made to begin reining in what has been an explosi expansion of the fed's balance sheet and the greatest capital injection into our financial system in history. >> policy actions today reflect thassessment that the economy is continuing to make progress and that it also has farther to travel before conditions can be judged as normal. notably, despite headwinds, the economy has been expanding at a moderate pace and we expect that growth will pick up somewhat in cominquarters, helped by highly accommodated monetary policy is and waning fiscal drag. lou:the dow jones, 14 times in the our leading up tothe announcement, panicked by an intimatiothat the fed would cut back the bond purchases. imementing this so-called paper. this includes investor anxiety ov the announcent sent the

market indexes lower. down to pos triple digit gains, the market up 2% on the day, the dow jones rallying nearly 300 points. the 45th record close of the year. the s&p 500 is up nearly 30 points, 40th for the recor of the year and the nasdaq is up next, closing at the highest level in more than3 years. $325 billion is valued by the wilshire 5000. this was the reaction as the ox business network reported the action from the voice of t new york stock exchange and right here, the 21st century fox headquarters. >> wbroke th lows of the day, the feds are making their announcement and only broke the highs of the day moments later. ultimately good news. >> the stock market, based on

the u.s. dollar, we are getting a big action to the upside. and by the wy, down and getting sucked out of the marketplace right now. >> just abou 24 minutes before the closing bell. we have seen the tapering. lou: joining me now is the insight and analysis. keith mccullough is joing us. moody's capital. let me startit you. this was a surprise for you? >>ery uch. a big surprise. although the market had anticipated this sooner or later that the fed would begin tapering this program. lou: 5 billion of the ond purchases, 5 biion off the mortgage bonds, what are your thoughts? looking to be as small and moderate as a move could be.

>> it was definitely small. but it's all about the rate of change. it was actully part of this, it's going to taer in very difficult for ben bernanke to do. but i think the reaction was epic. if we gave everyone this information, they would have hit all-time highs o that. sowas just an epic day. i don't know how else to describe it. >> let's use a polical word that seems to energize washington. so a transformative announcement that is going to change, if you will, the trajectory for this nex year? >> there's probably a lot of short covering at work today. it wouldn't be surprised if the market is soft in the near term. the market isp by 27% year-to-date.

and so it's already somewhat overvalued and it could be, maybe it's another five to 10% on the upside going into next year's. lou: tellis it is not s. john lonski says it's overvalued? at the end of the day it is a bubble and you have bubbles all over the place and they have been perpetued by the federal reservend so the gold bubble, you see that opping today. in other words, it's a very bad for the gold bubble. and so in fact i think that that was a real message that if they ter, theywill have a lot of bond funds continuing to have issues because that's the most recent and then you bundle of the switches stocks. >> listening tthese smart guys talking about the evaluation and popping bubbles, nonethelesswe are going to bring them back because they are two of the smartest guys on the street. we will have them later in the broadcast. right now, we have breaking news from capitol hill. the senate has votedto aprove

the two-year bipartisan budget that cleared the house last week. the final vote despite all of the rhetoric will be 64 to 36, nine republican senators vong in favor of the dal. the bill now goes to the white house for the president's signate, and yes, he's gng to sn it. and a shocking new poll shows three quarters of americans are concerned about the president's big government policies. a record 72% of americans have identified big government is the greatest threat to thisnation's future, compared to 21% who mean big business and 5% say big labor. and a news box new poll out tonight. just 41% approve of president obama's job performance compared to 53% who disapprove. 67% also say that the omacare imementation should be delayed for a year and that's up 10

points from october. the obama administration's newe member has set off a firestorm in washington and he has en on the job for only a week. he has insulted the entire republan party, monstrating that he doesn't know the history of hisown party, and he has already been forced to apologize. tellinpolitico earlier this year that house republicans were a cult worthy of jonestown. that was where more than 90 people were killed at a mass murder suicide. political publishing the remas and today speaker boehner's office fired back, saying that for tse who have forgotten a democratic member of congress was murdered in jonestown and a current one represented this and was shot five times in the same incident if this is the attitude of the new white huse, it hard to

see how the president gets anything done again. this morning he said he had an apology. he said that snark go in front of his judgment. jay carney says there is something to be said abut the sed with which he apolized. hower, jay carney didn't say what that something is. what it might be. much more on the chaos in the white ouse and some oour favorite radio stars will be reacting. john gibson and monica crowley join us and also i had a horrifying new report on how unprepared our nation is to deal with the next deadly pandemic. in amera's relationship with saudi arabia seems to be crumbling as our middle eastern allies are forging ahead with plans to arm syrian rebels. k.t. mcfarland has that analysis coming up here tonight. and there is something to be said for winning the second biggest lottery jackpot ever,to

very lucky people will split the 636 million-dollar mega millions jackpot and the winning numbers were eight, 14, 17, 20, and 39. with the mega ball at seven. and one has not decided what she will spend her winnings on, the other two are unidentified people in san jose, california. splitting the money overtime to give y a sense of how much that is. steven spielberg has to be furious at this. he made only 95 million. california fifighters battling a late wildfire tonight. it has destroyed more than a dozen homes already forced 100 people to evacuate and we are now told it's about 20% contained and full containment

expected by the en of the week. california officials confirming a uspicion of intentionally set fires throughout the northern californiarea over the summer, including the so-calledclover fire that killed one person and distorted nearly 200 structures. in the northeast, icy conditions, leading to a chain reaction pleup in new york city involvg at least 30 vehicles, and authorities say that ght people suffered minor injuries. many roads innthe new york and new england regions are still messy from yesterday's winter storm. much of the northeast escaping with only a few inches of snow and totals were much higher in boston and parts of new hampshire, both geting about 6 inches of sow and subzero temperatures, also leading to one ath from exposure. forecasters sa a good part of the east coast this weekendill see much warmer weather. with that, we are going to come right back. ♪

>> ben bernanke makes his concluding announceent. tapering will begin. and the markets love t. john lonskind kate mccullo e with me next. [ male announcer ] 'tis the season of more. re shopping. mo dining out. and a with it, more identity theft. by e time this holiday season is over, more than a million identities may be stolen every time you pull out our wallet, shopnline, or hit the road, you give thieves a chance to ruin your holiday by the ti you're done watching this, as many as 35 more identities may be stolen. you can't be on the lookout 24/7. but lifelock can. there relentless about otecting your intity

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lou: a federal judge today sentenced a former top epa official to just over 2.5 yes in prison for drauding the government of nearly a million dollars. john beal convinced hisosses at the epa but hewas also doing top-secret wor for the cia, overseas, and therefore could not show up for work. but in reality he was vacationing in cape cod. many say he was motivated by the

rush of getting away with something, and apparently suited for quite a while. and in ding business with the irs, ao engagg in bad behavior. according to an inspector general report, nearly 1200 vendors who have contracts with the irs all over a half billion dollars in back taxes. and tim kaine, the newest democrat railing against obamacare. he said this morning that those of us who run things as mayors and governors, it is causing us to tear our hair out. if only you all were alone and not. on of the frustrations, the ever-changing obamacare deadlines. and today, hundreds of insurers participating in the state and federal exchanges, announcing that they were voluntarily delaying the payment due date for those who want to have their coverage beginning janary 1.

in ost cases, consumers who sign up by mondaywill now have until january 10, in which to make their first premium payment as opposed to new year's eve. the previous deadline set by the white house. and we are getting a preview of how big of an impact that obamacare ill have on the 2014 midterms. take a look at this advertisement by this coervative group, ending spending. jeanneshaheen. >> it will increase choices for families. it will promote competition. >> the facts. more than 20,000 new hampshire patient and bamacare offers only one ensure on the individual market. if you like your senator, you can keep him. if you don't, you know what to do. ♪

♪ lou: the advertisement being called an advertisement that evy democrat should be scared offin 2014. turning now to the fed decision today. the direction of this economy in these markets. keith, n has made it clear that he thinks is overvalued and you are talking about popping bubbles. you we are looking at more points on the dow jones, the market cap added. what is an investor to do here? >> if you really truly understand the makingof this, then you just buy the bubble. because basically you are rolling from bubble to bubble. so now the bond bubble is popping in on that capital from this perspective just goes to the equities. so anyone who is making theall that stocks are overvalued, it's going to get more expnsive, in particular people have to roll out of the bond market. if you look at his, it's widel

over bone. and that ithe big take away. is that that final bell ringing went on, that it is for sale, it will continue in the new year and it's really part of this. lou: so what do you think? >> he could very well be right. we lookeat previous reeries. we have found that the market does not talk out into unless it's at lea 20 or 25% overvalued. and so you might look atthis as the start of an extendedepisode of the fed tightening monetary policy. in the last time that the fed began to tighten monetary policy after a recession was june of 2004. the market didn't peak until october of 2007. and th they began to tighten netary policy in february of

1994 and so then when it was grossly ovrvalued. lou: given the determination, is this finally the arrival of the eat rotation of capital from the bond market into equities? and will the bubble get bigger than many had expected? >> the fun story this year, this is part of t case that we have had. growth is going to surprise people and people are going to have to sell bonds and buy stocks. if anything, it's more of a confirmation of what people missed. peop have been putting the cherry on top of this and that's kind of the risk of the roll into next year. and you know, it's associated with a tremendous amount of potential sediment in the market. lou: this includes the

discussion on which the bubble can grow larger. the why worry? ben bernanke made it clear that he will ep the federal funds rate at close to 0% indefinitely. >> as far a you can see. if you are not getting anything in a savings account, why not go into equities and benefit from dividend incomes? lou: john lonski, thank you so ch. we appreciate it. and we will take the advice of bby the darn bubble. headline of the evening. and we have an important book commendation for you tonight. this one is called a people, winning back the country with

knowledge that empowers and ideas that matter and solutions that work. and i am the author of the book which debuts on january 7. in the audio book version and that's not in a considerable achievement. vote, barnesandnoble.com and visit loudobbs.com for all of the links to other people. it debuts and is now available. thank you. up ext, massive protests arriving in india. all over the alleged mistreatment odian diplomat in new york city. k.t. mcfarland on that and th

issues of the day around the globe. k.t. mcfarland is coming up

lou: a surveillce program recommending an overhaul of the foreign and domestic spy practices. including revamping the phone records collection program, the presidt will decide, which proposals to implement if any of those in this includes top-secret materials by edward snowden. an expert weighing in, on the possibility of amnesty and the documents that hepossesses. >> i think he ought to be part of this for reasons and if convicted by a jury, hanged by the neck until he's dead. lou: mohammed morsi faces new chargee conspiring with terrorist grops, including hezbolh and hamas. he has been charged for incittng

murder and violence since he was taken on the military n july and saudi arabia western allies continue to see diplomatic solutions and saudi arabia has condemned e united states for its policies, both in syria and iran, which they say risk the security and stability of the middle east. and india is outraged over what they have said was aespicable and barbaric arrest in new york city. >> strip-searched, shesays she s kept in a cell with drug

addicts untilosting bail. she said she was entitled to diplomatic community. and they have removed concrete barriers around the united states embassy and they are also demanding u. consulate officials to relinquish their identity of the two largest politic parties, scheduling canceling scheduled meetings and reprisal for her arrest. joining us now is national security anast k... mcfarland. it is good to see you. first, the issue fthe deputy counsel here. the rest, apparently being strip-searched. as well as the visa charges. >> i just don't get it. it doesn't make any sense to me. diplomats have been in the united states and so there is

something that has gone very wrong here. something we don't get why there is a colossal major mistake and the problem is that now it risks the relationships iih our entire asian policy. lou: elisa with national respect, it never should have been. >> that's right, and never should have happened. and i understand where michael bloomberg is. but where in the world is the president and would c-span on this? >> they seem to be apologetic after the fact. lou: okay, let's turn to mohammed morsi. nourprise there. but these are also death penalty charges brought against him. >> when i was in egypt it was clear that it was not just

hezbollah and iran, but al qaeda and there's a lot of evidence with this. and they refuse to let the army go clean them out. and i think what you will see and my gss is tt you will see major political trials. lou: is a trial for edward snowden? is he going to be brought to justice at all? it was interesting. you hear the former director of the caa saying that if he is convicted, he should be hanged by the neck until dead. that's interesting on the matter. >> perhaps we should give them amnesty, so far, there have been

two categories as part of this. one is the current events and the other is how you gather inlligence and how we listen inn phone calls and that does the most harm and that is what is now starting to come out. lou: given that this was an act of treason, i don't think that's a legal term. but it seems simply like a straightforward statement of fact. he was sering and why in the world was he permitted to leave the united states in any form? >> not only that, but why was he permitted access to all is stuff? so how did he slip through the cracks? >> he had a number of other

employees and contractors as wel. those who just turn him over. >> it is jus incompetence at the highest level and at the mother lode of secret. >> so what is to be done without? >> my guess is that he stays in moscow were the russians don't really want him. i mean, i it's going to be a cod winter. and he is a hot potato. giving him some kind of amnesty. lou: is in it a pipe dream for him to think tt he has already turned over all of that confidential top-secret information? to both the chinese as well? >> yes, they say they have some stuff left over. but the tragedy is that this is a national debate. and ife had taken his concern,

he would now be an american hero to i wonder about that because do believe a ull on an honest public debate and the american people pfizer security very higly >> on the other hand, we have seen. >> i want to be a little bit washer that we have this right kind of scrutiny. >> and i want to understand the moral equivalent that allows us,

with the nsa that has not violated anyone's rights. and we have every indition an we have more discussion and outcry about this nsa than we do about the irs and that is upside down and wrong. lou: up next, a frihtening new report. revealing how unprepared this nation is in the event ofa widespread infectious disease outbreak and we're coming right back. >> for little darlings, 20 million peoe out of work we are going to take it up in the "chalk talk" tonight and we will

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lou: welcome back. there are 4.1 million federal government employees in this country. like their jobs.s they don't according to the report for partnership for public service by deloitte, a government job satisfaction has dropped a 50% the all-time low compared at 71% for those of the private sector and we thought we didn't like the job government was doing. where are the worst places or departments to work? department of romance

security followed by army and department of labor. ironic. what could they be so unhappy about? federal government workers have extremely generous pay and benefits. in fact, total compensation in cash coming income income, benefits, on average $140,000 per year compared at 88,000 for the private sector. six out of 10 richest counties are clustered around the nation capital. not because they work for the federal vernment so why are they complaining? ter all of poll found a sizable number. 37% believe zombies would do

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lou: a shocking new report exposes united states to fighng infectious diseases. the new report from trust for america's health care 34 states of failing grade receiving a score of five or fewer out of 10 when looking at her capabilities to protect against infections from antibiotic resistant

super bugs from the flu virus georgia, nebraska, new jersey tied for the low was one of the hampshire did pass. the averagerice for ground beef hits the all-time high. $3.61, 45% increase from a decade ago. some are expecting prices to soar at seven or $8 a gallon on less congress passes the bill by the year end. and where prostitution is legal workers are demanding the same retirement tax benefits as professional soccer plers to put up to 73a dash0,001 dash $7,000 into a fund. citing that they will the physically demanding jobs

and a low professional life. john gibson, and talk-show host from chicago tribune columnist and john, a great to have u with us. let me start the new outrage on the job all we can john conte starts to make these outrages comments about the jonestown killings? >> is that addressed only to th conservatives or republicans in general? [laughter] lou: he madet very clear it was the republican party. >> isn't that about he and change? i think it is christmas and

the season of peace. lou:ut he does not seem to be in the spirit. >> i don't want to go back to jonestown. doesn't john podesta soundalike a tough guy? >> i want to interject i was a reporter in san francisco and remember jim jones was in bet with democrats in san francisco. his people's temple was facilitated by democratic politicians who then ran for but here is podesta to insult the two-party in the same way the president wrote

to somebody referring to the two bankers -- the two-partyty this is the insulting way people only want to control the size and cost government and do not get it. and center for american progress, he did run it has been a leader for all longtime. lou: does he survive? >> i thought they were refreshingly honest because we have heard so many lies coming for smany years we know how they vew the republican party and conservatives and tea party at least he said the truth this is how they looked at them. remember he is to bring a new attitude and a new approach and john baker use the approach are you kidding

me the new boss save as the old boss that is w leaders like eric cantor or paul ryan to be those puppies they have ben to go to the white house thinking e white house willing case and with good will of their under that delusion i cannot help them. >> remember john predestinate is brought in to go around congress. what can the president get done without aling with congress?anche of executive orders to brush aside those people that he calls the jonestown mass murderers. lou: when we come back we will start with him and his

assessment of the new republican bad -- advertisement that they should be afraid o that. that does not happen often. my new book of people -- the people. now available online for pre-orders and check this out on twitter or lou dobbs news and there is a link to everything on the jobs.com. there are some questions about the perpetual son than here is the interesting ba story. story. stay with us [ male announcer ] e new new york open. open to innovation. open to ambition. open to boldids. that's why n yor has a new plan -- dozens of tax free zones all across the state.

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lou: hata also speaker has long denied he is bron because of fake tanning bet it turns out that may be questionable but it turns out heas accepted campaign contributions from the indoor tanning association and he actuall lives in a washington d.c. apartment owned by a lobbyist for the sun tanning association although they insist there is no taing bet at that residence guaranteed. and interview with cnn barbara walters said the media and american public for so disappointed with the obama is latest policy fumbles and failures because they thought he was going to be the of the'' messiah.

we're back th the "a team." evy democrat should be scared. >> they should be. they will take obamacare and wrapped around their neck then watch them try to swim. all of them were parroting the same nonsense as the president if you want your health care you can keep it in -- you can keep your doctor, right? lou: the truth is the republicans have put appears to be a clear-cut extraordinary am political and advantage of the bid terms if they don't screw it up to shut down government wh are your thoughts?

>> this this pointed out it will be shown over and over against every democrat running for ofce for:if you show that ad campaign t jean chretien and this year's site teemed the obama team runs with a kid in his pajamas drinking hot chocolate. talk about obamacare with your parents over christmas. is just shows they don't have a prayer. the republicans are coming with brass knuckles and these guys have hot chocolate. it is not close. lou: where were these guys in 2012? >> it is interesting to see this ad, hourly all of those

and then repeating the exact same play and. this is ready-made ammunition and if he thought 2013 was bad then wwit for 2014. the challenge will not go off the rails for the republicans itill not start with immigration anb distracted they have to be on obamacare the first in the the issue. >> i hope the president would cut another commercial to put the kid in his lap and say if you want to keep your christmas present if you like it you can keep that. period. >> we know that's not true. lou: it saves about what this president h promised. do you think this is retrievable?

is the breach of trust with the american people, can he recover? >> not of the trust issue. approval they go up but it is the irs, a pate gauzy gauzy, with the ap know this that you can keep your doctor or your health plan. another vet. idle fate he would get his trust members up fed is a way oh -- areed to be a weight around his nk and he will seek as he tries to swim he willeek. lou: thank you for being here. to maronite check king joins us. we will see you tomorrow.

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♪ because during the holidays, keeping your identity protd means keeping your family protected. another healthcare head bites the dust, the woman running the minnesota system steps down, she was vacationing in costa rica. welcome i am charles payne in for neil cavuto, in past 4 wee weeks, folks leads healthcare exchanges in 4 states are stepping down, the woman leading weakest roll out of all obamacare still standing, health secrettry kathleen sebelius is keeping her job even not official roll out has been an unmitited daster, sebelius has to go. americans for tax