ere you can find more stories. >> stay away from the apple pie moon shine. >> great advice. thank you all, charles is back on monday. hopefully can you join him then and every night at 6:00 p.m. eastern time. in the meantime, have a great weekend everyone. >> good evening, everybody, i'm cheryl casone in for lou dobbs tonight. the obama administration finally retaliating against north korea for hack attack against sony pictures possibly the costliest cyberattack ever on an american company. the white house slapping new economic sanctions on pyongyang's arms industry and intelligence operations. reaction from general jack keane whether sanctions are the right move. protesters taking to the streets from the east to west coast marching against brutal police tactics and a lack of accountability. the demonstrations come as the

new york police department proves excelling at keeping america's largest cities safe with the new york murder rate falling to a record low. prominent black conservative niger innis is here to explain why he thinks cops are black america's best ally. and the president making the most of his vacation with lots of golfing, shaved ice and snorkeling, that's going to come to an abrupt end. all about the battles that lie ahead between president obama and the new republican congress. but we begin with the president's move to penalize north korea for the sony hack attack. the white house hitting the rogue regime with economic sanctions with what the white house says is the first part of response against sony pictures. james rosen has our report. >> reporter: president obama's executive order empowers the treasury department to broaden sanctions against north korea's

heavily sanctioned arms apparatis as well as key regime officials in iran and syria. >> this is a new moment in history where we're singling out the state sponsor of an attack on an american entity. and i think almost less interesting than what it says about the situation with north korea is that it says something very interesting about the future of diplomacy and conflict. >> reporter: white house press secretary josh earnest is in response to the government of north korea's provocative, destabilizing and repressive actions and policies, particularly destructive and coercive cyberattack. we take seriously north korea's attack that aim to create destructive financial effects on the u.s. company and threaten artists and other individuals with the goal of restricting right to free expression. >> hello everybody. >> reporter: asked two weeks ago whether he was considering sanctions on pyongyang, president obama refused to say.

>> working up a range of options presented to me. >> i never heard this before. >> reporter: it was on december 19 that the fbi first alleged that north korea hacked sony pictures to retaliate for the studio's dark comedy "the interview" which envisioned the assassination of kim jong-un. this week a california-based cybersecurity firm norse briefed the fbi on evidence suggesting that ex-sony employees may have been culpable prompting the fbi to double down in a statement saying -- . >> and the manner it was placed on the systems is specifically designed to steal a significant amount of data. they knew where the servers were at and what they needed to destroy. >> reporter: the president's sanctions order is, quote, the first aspect to the hack attack

on sony, the closest the administration has come to saying flat-out that the u.s. played no role in the repeated outages suffered by the north korean internet such as it is. cheryl? >> thank you, james rosen, joining me to discuss north korea and the numerous other foreign policy challenges facing the obama administration. four-star army general and former army vice chief of staff jack keane of course a fox news military analyst. jack, good evening to you, happy new year. let's first talk about north korea. james rosen's report says that norse, they're breefbing the fbi saying you're going down the wrong road, there was russian language in the code. did the obama administration react too swiftly with the executive order? . >> absolutely not. this private security firm while it's a good firm is not familiar with the depth of what the national security agency, nsa, is providing to the fbi

here, and having some work and familiarity with this and the forensics they can chase, i'm confident the fbi has got this right. that's why they doubled down on it and certainly wouldn't put the president in the position to execute sanctions against somebody not worthy of it. >> do you think that the north koreans take the sanctions themselves, do you think they're taking them seriously? seems that north korea is now reaching to south korea for a helping hand. which makes odd bedfellows. north korea isn't about to back down against the u.s. do you think? especially when they attacked us, if this report is true? >> normally if we had something like this from a normal nation state that did conduct a cyberattack, we would respond in kind. in other words, we would conduct an offensive cyberattack against that nation. sort of a quid pro quo sort of thing, and the fact of the matter is we had the number

one offensive capability in the world highly classified in terms of what it can actually do. the problem we have with north korea, cheryl, is one they don't have a network, there are very few people who use the internet. two, they're economically impoverished country. we have trade and economic sanctions on them right now. there's not much that we can get at here. the one thing that has got their attention in the past and i think we're going to do some of it here is go after personal wealth of key members of the regime. that will get their attention. north korea doesn't care about tens of thousands of people suffering more than they already suffer. it means nothing to them. >> another challenge the obama administration is going to face in the foreign policy challenge. that is the issue of russia. there are reports now that the president has actually put secretary of state john kerry, and even they talked about henry kissinger can reach out to vladimir putin using the back channel to repair a

relationship with vladimir putin. this is a sanction story but is it the right strategy by the administration? >> well i don't diminish anyone for trying to reach out and make something work that's not working well. if we sprinkle a little reality on this putin enjoys this testing of the relationship. it has helped enhance prestige at home, it's over 80% and soaring, despite the economic challenges it has, because it has restored russia to some sense of world prestige and there's a rise of nationalism. he enjoys it and will continue to fester it. he looks at two more years of the obama administration and clearly intends to continue to take advantage of the white house and the europeans who will not stand up to him. >> interesting, the other issue is cuba. the president making a very bold move in reigniting ties

with cuba after 50 years and many on the republican side not happy with the way he has handled and opened the doors to cuba. do you think that the russian cuban relationships which seems to be strengthening, since this announcement was made by the president. is that something we should be concerned about the fact that russia and cuba are becoming more allies than before? >> it was predictable in dealing with cuba. that's why i side with those who said if we make a deal with cuba, certainly should have received something in return. i wouldn't have made the deal to begin with. we got nothing in return, and here give the russians rights for long range bombers and other military capabilities. that is something that we should have foreseen, we should have prevented from happening, and we have an empty hand that we're playing with cuba. we know now they're cracking down on dissidents again. i doubt seriously if they'll

release any dissonance or people in prisons for political reasons in comprehensive fashion which is one of the things we did insist on. there will be more of this pokings you in the eye from cuba despite the fact we tried to normalize relations. >> final question in regards to senator john mccain, he's in armed services one of the things he's vocally displeased about is handling of syria and isis as well. we have a powder keg that didn't need to erupt. hillary clinton has come out and criticized her former boss for handling of syria. do you think senator mccain could be a force the president is going to have to reckon with in the spring of 2015, and do you think the president is ready for that fight? >> i think so obviously, senator mccain enjoys tremendous respect in the nation, and he has been a voice that opposes a lot of the foreign policy decisions the

president has. what's different now is the power he will have, as the chairman of the senate armed services committee, one of the most powerful in the senate and the fact that the republicans have a majority. that will influence legislation, you can tick them off here in terms of one sequestration pushing back on the president's policy in the previous congress' policy iran's sanctions make them tougher. whole range of things they're able to put into legislation, not just voice opposing viewpoint, that will force the administration to deal with the legislation. >> general jack keane. thank you for being here. happy new year, sir? >> happy new year cheryl. >> the world health organization is reporting that more than 8,000 people have died from the ebola outbreak in west africa. good news, however, the number of new cases reported in guinea and liberia has somewhat stabilized. at home the center ares if

disease control plans to hire chief of laboratory safety. the newly created position after multiple mishandling incidents of potentially deadly pathogens in labs last year including the ebola virus. government health officials are reporting this year's flu outbreak is an epidemic. that is because 36 states are reporting high levels of flu activity. making matters worse, this year's flu shot is only 50% effective. coming up next the relationship between new york's liberal mayor and beloved police force icy. as the commissioner issues a warning to new york's finest. conservative civil rights activist niger innis joins us next.

. >> new york city police commissioner bill bratton pleading with officers not to turn their backs on mayor de blasio again. he is concerned about a funeral for the second officer gunned down in an ambush scheduled for sunday. police turned their backs on de blasio during the first officer's service, bratton writes in a memo, quote --

but the riff between police and de blasio is evidence. on new year's eve, a plane flew over the hudson with a banner reading de blasio apologize to the nypd. it was paid for by a group of current retired new york officers. joining us niger innis executive director of the tea party.net. welcome to the program. you make an interesting program. you assert that black america's best ally is the police, but isn't the beef with the police based on race and the attacks on black americans in this country? >> well, the reason i say that and i say this from an analytical perspective and a very personal perspective. cheryl, i grew up in harlem, new york in the 70s and 80s

when the average murder rate was 2,000 murders per year. all-time high of 2600 lives taken in 1990 pre-rudy giuliani and before the police reform, the aggressive policing tactics that came to fruition. overwhelming majority of lives lost including two of my brothers that were murdered come from black and brown and poor community. therefore, when the police reforms were made by rudy giuliani and followed by his successor and the murder rate went down by 70 75%. instead of a murder rate of 2,000 per year you have a murder rate of 250 or less per year. whose lives are saved? those lives that are saved are going to disproportionately be black and brown lives that are saved. if we truly value life, we

should not only value the nearly 130 lives that are taken by police officers, but how about the 5,000 to 6,000 lives often taken because of crime and often black on black crime. >> niger, we got in the murder rate tally for new york city for 2014. 328. a record low. >> amazing. >> can de blasio take credit for this? >> of course not. the de blasio disaster and the -- what i call the obama-holder-de blasio-sharpton police reforms they think will reverse this historic dramatic drop in crime they're not going to come to fruition overnight. when rudy jewel was elected in 1993 and came into office in 1994, the crime rate did drop but the dramatic drop in crime

did not take place until his reforms started to take effect year two, three, four and continued under the blumberg administration. tragically, the political correct agenda of the obama-holder-sharpton-de blasio regime is going to have a disastrous impact on those very tactics that were used to save lives. >> interesting that you bring up al sharpton and include him in the regime. he's a talk show personality, if you can say that, on another network. he's been to the white house 72 times. in your opinion, do you think that he has help or hurt the black community and all of this? >> he has hurt the black community, and the fact is that obama-holder, his senior partners, and sharpton control the country's agenda in urban

centers, not just for the last six years of the obama administration. urban centers have been dominated by government liberal progressives for nearly 50 years, they have been a disastrous failure, and what they see here with these protests all around the country is to maintain their relevance. they cannot say that the unemployment rate is down in the black community. they cannot say that economic opportunity is available for the black community. they cannot they black kids are getting a decent education. what do they want to say? hands up don't shoot. >> niger innis, you are such a voice, pleasure to have you here. >> happy new year. >> you, too. >> new report from the american cancer society finds death rates for most cancers are down 22% over the past two decades, that translates to 1.5 million lives saved thanks to better cancer detection, prevention and treatments.

cancer in most cases may be the result of biological bad luck rather than genetics lifestyle or the environment according to a paper published in the journal "science" which found two-thirds of cancers were caused by mutations of mighty stem cells. the grim task of searching for missing airasia flight. a full report on the evidence recovered in the prospects of finding the black boxes, next. what if one stalk of broccoli could protect you from cancer? what if one push up could prevent heart disease? one. wishful thinking, right? but there is one step you can take to help prevent another serious disease- pneumococcal pneumonia. one dose of the prevnar 13 ® vaccine can help protect you ... from pneumococcal pneumonia, an illness that can cause

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. cheryl: indonesian officials searching for airasia flight say more bodies have recovered tonight as high-tech equipment arrives on location in hopes of locating the black boxes. high waves in the java sea hamper the search on the plane missing for five days. greg palkot has the report tonight. >> reporter: another landmark hampering the recovery efforts of airasia 8501. first of the plane crash victims was given a funeral and buried. four bodies have been identified and turned over so far. despite bad weather, 30 bodies have been found some discovered strapped into the seats floating in the sea.

u.s.s. sampson is playing an important role. american sailors have located 12 bodies transferred the bodies via helicopter into surabaya from where the plane took off sunday. we are thankful to the americans for flying them in. we didn't think they'd have enough fuel but they managed to do it. >> reporter: in addition to personal items parts of the plane have been found. the plane's main fuselage is thought to be on the bottom of the java sea along with most of those missing. it should contain the black box recorders needed to find out what happened. bad weather and pilot's reaction to storm conditions are important factors. ships are at the scene. >> we cannot confirm the location of the aircraft fuselage. three ships with underwater sonar capabilities are continuing their mission. >> reporter: in the meantime indonesia is a mostly muslim

nation, praying to hope there is a resolution to their concerns. the second ship the u.s.s. fort worth is steaming to the site to add expertise and man power to the search. authorities say it could take another week to find the plane and maybe the black boxes. cheryl: thank you greg palkot. new video appears to show two young italian women held hostage by radical islamist terrorists. the aid workers are seen asking the italian government to save their lives. their captors are believed to be a branch of al qaeda, not the islamic state which has beheaded five western hostages. and the obama administration quietly releasing five more guantanamo bay terrorists over the new year holiday. the five men at the camp for a dozen years were cleared for release and sent to the centralation nation of kazakhstan. the release brings release to

127. we're coming right back. president obama warned us he may break out the infamous pen to veto bills from a republican-controlled congress and mitch mcconnell and john boehner will test him early in the 114th congress. the a-team reacts here next. why's that? look what daddy's got... ahhhhhhhhhh!!!!! growth you can count on from the bank where no branches equals great rates. y'know what my business philosophy is, reynolds? >>no. not exactly. to attain success, one must project success. that's why we use fedex one rate®. >>their flat rate shipping. exactly. it makes us look top-notch but we know it's affordable. (garage door opening) (sighs) honey, haven't i asked you to please use the.... >>we don't have a reception entrance. ship a pak via fedex express saver® for as low as $7.50.

so ally bank really has no hidden fees on savings accounts? that's right. it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees from the bank where no branches equals great rates. . cheryl: hundreds of legal immigrants lining up outside

california dmv locations for applications for driver's licenses. california is one of 10 states offering that benefit to folks who are in the country illegally. fox news correspondent will carr is in los angeles with the report tonight. >> reporter: long lines wrapped around california dmv officers friday after assembly bill 60 went into effect immigrants regardless of legal status to get driver's licenses. >> listen, washington, we the people of california have redefined what it is to be an american. >> reporter: california becomeses 10th state to offer driver's licenses for immigrants who are eligible. >> we've been waiting a long time we are very happy. >> when a cop pulls behind me i'm not going to be watching shoulders now. >> reporter: immigrants must

provide a passport consular id or birth certificate. there are other documents they can provide, they have to submit a thumbprint pass written and driving tests and purchase insurance. critics are skeptical. >> to what end are we doing this? is this actually going improve the lives of californians by doing this? and i'm not entirely sure that's the case. >> reporter: those in favor of the law arguably say it will make california's roads safer. >> we're encumbering them with the same responsibilities physically capable of driving, pass the written exam and have insurance. >> reporter: the licenses look different, showing they are used for driving only and not to board a plane. >> this is a boon for criminals who want to reinvent themselves as you and a get a driver's license to have a new legitimacy. >> reporter: the california dmv

opened four new locations to help with the rush, they believe it could cost the state $220 million to issue the licenses but believe they'll recover 50 million in fees. cheryl? cheryl: will carr, thank you. reports that president obama may be tested on willingness to use veto pen recall in the new year. the republican-controlled congress planning votes on bills to kill obamacare and approve the keystone pipeline. the president may be abandoning his go it alone approach for compromise. joining us now, former national kegzal committee spokesperson and former reagan political director ed rollins, thank you to you both. ed, the keystone pipeline. >> should have been passed months ago. the congress is going to take it up and pass it quickly to be the first bill we pass. cheryl: you think this is the first time we will see the president back down. >> i don't know whether he's going to back down, but

certainly could have taken care of the problem earlier. the state department and everybody else said it is environmentally pure he could have created jobs and helped us on the long-term energy independence to the extent the congress sees it important. it's a unified bill and congress sees it will pass quickly. cheryl: karen, do you agree? >> absolutely. let president obama veto the bill, let president obama be against cheap energy, be against american jobs and that's how the republicans need to portray it if he does veto it. they should send an entire agenda of pro-economy job bills to his desk and let him veto them one after another and show the difference between the two parties and two visions for the future of america. cheryl: move onto other issues that americans are concerned about, i was looking at the recent "gallup poll," the top concerns of the american people for 2014. government leadership. economy.

unemployment health care. health care not really listing in the top space anymore, and at the same time, government leadership is. do we need to see more bipartisanship? >> there will be more bipartisanship. the chaos was not just by the president and house republicans being the different party. now a collective congress they will work together, and pass good legislation, and the president can either veto it or get on board. my sense is it won't be acrimonious with harry reid on one side and john boehner on the other side. republicans need to know to make this all work. cheryl: karen do you think the republicans know to once again repeal obamacare maybe a hopeless cause. i can't see the president backing down on that? >> the president isn't going to back down on anything. the idea he is going to work with congress is pointless. he said look there's three things he's going to draw a line in the red sand oenergy, health care, and the environment. well republicans are going to

pass keystone they're not going to back down on that. they will repeal certain parts, bit by bit of obamacare. cheryl: maybe the medical device tax can be a possibility. >> look he doesn't want to negotiate. i think he has shown terrible leadership. and i think what you see in the poll is the result of the obama legacy. what americans don't like right now in washington is largely the policies that have come out of this administration. i don't think that's going to change because republicans are in charge of the house and the senate because they have a very different vision for america. they need to be bold. they need to push forward with their agenda. ignore this president. do the work of congress, and let the president be the party of no for once. cheryl: interesting to see, this is politically as smart if you think about it as we nov2016. couple of names, jeb bush quit all of the boards he was on.

>> jeb is definitely running a great governor two term governor did. progressive thingsa governor. we're going to have 16 18 candidate, certainly one people are going to support. it's a long hard process and i welcome him into the field. cheryl: what do you think marco rubio is thinking? if he's going to declare, rubio will not. >> he's one of the young dynamic senators, extremely articulate attracts a lot of young people. he'll take a test. start out and see where the campaign takes him he doesn't have to drop out of senate. he has to run for re-election. they can't run for both offices. he has a couple months to make up his mind. test the water, and find bush is way ahead and not run, or if he feels he has a lot of support, he'll get in the race. cheryl: strategy is going to be crucial for the republicans. i've heard lou be critical of the republicans how they handle themselves over the last

several years, and said this could be theirs to lose once again. what do they need to do this time around to reclaim the white house? >> well that's a great question. i think -- i'm a little concerned about jeb bush getting in. i think he's going to suck up a lot of money early on. he will push out a lot of people rubio and others who would share that donor base, who i think would add a lot to the republican primary discussion. so yeah, he'd be a fine president, but i think he changes the dynamic and not sure he changes it for the better. my real concern is that at the end of the day, at the end of the primary, we wind up with a runoff between a candidate like rand paul versus jeb bush, and it is the big money rockefeller republican versus the populist republican. cheryl: gosh. >> and i think that's a real potential. cheryl: wow. >> and i think that could be divisive within the

republicans. >> my colleague's too young to know what a rockefeller republican are. there are no longer rockefeller republicans. >> i'm not saying jeb bush is a rockefeller. rand paul will try to portray him as a wealthy republican who is too the left of center of republican primary voters. >> there's three elements to our party. >> i don't think that will be difficult to do. >> three elements social conservative element like muck huckabee or ted cruz. >> they won't like huckabee. huckabee's not running. >> you don't know that. karen. you don't know that. and the establishment part of the apartment which is the chamber of commerce and others. we need all of the elements to win in the fall. cheryl: ed rollins, karen hanerty. it is going to be an interesting couple of years. thank you to both of you. first trading day of the

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. cheryl: on wall street, stocks kick off the new year mixed in the late trading session. the dow up 10 points, the s&p

down a fraction and the nasdaq falling 9 points. volume, 2.7 billion shares. here with his outlook and here with me with what to expect in the markets in 2015 ted weisberg, so great to see. >> you thank you. cheryl: what do you make of what we're seeing here in the market -- we had a great year but a lot of questions about the underpinnings of the economy, what do you think? >> we discussed this great year earlier today. i'm not sure i agree with you. it was a great year for some. even though the averages finished at or near all-time highs with the exception of the broader new york stock exchange composite, i don't think a rising tide floated all ships especially the last month of the year. even the liers along energy stocks and did a lot of damage to portfolios. didn't put them underwater but took away a lot of the good performance. >> it could do damage to a lot of jobs and, you know energy

company, conoco-phillips saying they're going to cut capacity and production by 20%. any plans or facilities they're going to build, refineries they're holding back, that hurts the economy and jobs. >> it's a double-edged sword. it's a giant tax cut not only for the u.s. consumer but the entire world. that's a good thing that will filter through the system and theirs nothing bad about that. that's all good. the flip side the big energy companies which have been driving our economy, they start to cut back how does it impact employment? and all the kind of trickledown effects from the money spent to support that segment of the economy, and certainly if you own energy stocks, you are feeling the pain and feeling it hard. cheryl: but it's nice to have in our portfolios i have to tell you. we lost 48% in the crude contract.

we saw 48% in 2014. i get this question all the time. where is oil going to go? a bearish call, $35 a barrel. that's -- we're at 52 right now. >> in the early it was paying a dollar a share, so the fact is i don't think anybody knows where it's going. it's a lot of supply and demand. the bigger question for me is what is this telling us? is there another message out there? is it saying that the world's economies, the eurozone in particular, no hope in the sense that no growth no renewed growth, and we're going to muddle along, and plus the u.s. is such a big producer. this week i forgot we had a short week. earlier this week the government is going to allow the u.s. to export sweet crude. that's more supplies on the world market. great for the u.s. that we're

oil independent, that's terrific. but at the end of the day it's a commodity and lie and demand and obviously there's a lot more supply than demand. cheryl: a lot more talk that russia and iran aren't going to let this u.s. production story continue in a positive light. they want to start to step it up. and russia's economy certainly needs more production. >> well, the bottom line of that -- and i'm not sure what they can do. the bottom line of that scenario is that -- what they're telling us is there's a lot of supply and not a lot of demand is. gas going to $30? your guess is as good as mine. there is nothing rational about this. they don't ring a bell and say we're going to go the other way now. that would be easy for all of us but that's not going to happen. >> i have to ask you you get this all the time all right, market for 2015, what do you think? >> well, you know, i can be

safe and say up another 10%. cheryl: that's bullish! >> i think so. everybody was spoiled in 2013 because we were up 35 or 38%. maybe that's not so realistic. i think the answer to the question is you tell me what the fed is going to do about interest rates, and i'll tell you what the market's going to do. they are the 800-pound gorilla in the room, and in my opinion, the minute the minute it looks like they're going to do something about interest rates going higher it's a big negative for the market. that could create a real problem. if our economy continues to heat up. the fed is trapped, they're trapped. no matter what they're going to be wrong. cheryl: they're going to make an exit but do they have an exit strategy. >> but that's the key. you figure out what interest rates are going to do. cheryl: we're going to know this summer. ted weisberg, good to see you. is it okay to call you teddy?

>> it's all right. cheryl: listen to lou's financial reports three times a day on the salem radio network. coming up, president obama targeting kim jong-un for the sony cyberattack. i feel like i'm in the movie "the interview." some ceo's are not waiting for the government to protect them. cybersecurity experts tell us what they're doing protect themselves from hackers. that's next. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.

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cheryl: for tonight's quote of the evening a little inspirational wisdom from the 40th president of the united states ronald reagan. above all, we must realize that no articles or weapon is so formidable as free men and women. well that courage being questioned as nation states attacked corporate structure in the united states. some companies are attempting to fight back luring hackers into attacking fake consumers with decoy software to trap them. joining me now to assess the cyber threat, john and bruce. he's a retired special forces major. and ceo of main nerve. gentlemen, welcome to both of you. john, let's talk about this, with regards to north korea. because the president came out today and we're putting sanctions down. i mean, this is the north koreans. do we have the resources, do companies have the resources to

fight back if the government can't fight for us? >> number one, the government is not responsible for corporations. they have to take that on for their own task. corporations believe that they're tied into products. yet every place that has been broken into has these devices. they don't have the proper understanding of network security and some managers out there too many of them don't even have a -- the respect for security by saying hey -- one manager actually told me, i can recover from an attack. i don't have to worry about my clients or employees getting their information stolen. i can recover from that. that's a bad attitude. cheryl: pretty confident. do you think that companies -- usually when these cyber attacks happen or you tell me or the expert don't these hackers leave behind back doors so that they can come back and do a future attack at the same time? >> yes, and to comment

on whether companies should hack back. hacking back is illegal. and it is an american instinct to punch when you get punched. companies want to hurt the other people. but the issue is, they can't take these hacks. because most of them don't have the spews to determineexpertiseto determine who attacked them. they were attacked by pakistan. if india were to attack the united states, that would have been an act of war. now regarding do they leave back doors and digital -- digital openings and software and firm's it architectures. they do this all the time. that's what's holding up the response to the sony attack, they've damaged the system so bad, they don't know whether the bad guys are out of there. until they rebuild the

entire architecture, they may never know. cheryl: look, no offense to sony a film company but what about companies that are completelycompletely integrated into the safety of our country. are we safe and they safe? >> we're all integrated. everybody who is connected says, this is a great connection. i can get access to everything. everything giving access to you. we have to look at it as though we can all suffer these attacks. they're not going to go after the federal government. they'll go after the weak leak into the federal government. there's so many connections through military operations, state and law enforcement agencies, as well as libraries that all share connections, what we call back door trusted networking connections that can be easily thwarted and break into a network that was otherwise totally secure.

>> the point is: what bothers me a lot the federal acquisitions governors contracting, there are no stipulations that require companies to have cyber security measures in place. especially like my company itself. and we deal with compliance firms that have to deal with more regulation in terms of hipaa clients and health compliance. and that bothers me. cheryl: do we have in your opinion, the intellectual wherewithal to fight them. the hackers always seem one step ahead of us. they're 18-year-old kids sometimes. they're motivated by money. they're smart. can we handle this? >> absolutely we can. but it's sharing of information. hackers get across everything and get into organizations because they share information. we have organizations and there's lists that

say, unless you're a cop or unless you don't do defense work, you can't have access to sharing our information. because you're not military or a cop, you can't know this. wait a second, i'm in the private industry. it's the private industry that developed this technology. we need to share more. companies need to realize that the par dime has shifted. no longer about the fence keeping people out. it's about response. the company that can minimize the amount of time between being hacked and the identification of that hack is better. >> two great voices. thank you very much. (?) all right. well time for a few of your comments. gabriel: i think this rip is unfixable. de blasio has blown it. he will resign. the city can live and survive without a communist mayor than with a professional police force. turning their backs on nyc mayor a bigger political point. we appreciate hearing

from all of you. i'm not lou dobbs. have a great weekend. lou will be back next weekend. neil cavuto coming up next. neil: welcome, everybody. i'm neil cavuto. as the new year comes up, how about we americans make a resolution to man up and woman up and quit acting like we don't measure up. quit kowtowing to china because they own so much of our debt. and focus on the fact we buy so much of their crap. quit tolerating lectures on the europeans on how to grow an economy. while we're at, quit bad-mouthing ceos here for being evil when they're about the only guys doing anything financially good. a lot of them are hiring. their stocks are soaring. now, we are not perfect. i will tell you what, we're not pathetic, and we certainly do better