thanks so much for watching. and remember, you can't take it with you. charles: thanks a lot, guys. thanks for watching every night at 6:00 p.m. here is lou. [♪] lou: good evening. i'm lou dobbs. iowa con founding the the candidates, the national and local media and the poll sisters. all of whom got it wrong. bernie sanders split the democratic vote with hillary clinton. ted cruz won the republican vote with a powerful grounds game and his tore cal turnout that brought out the evangelicals in force. trump barely beat out third place finisher marco rubio that gave a late-night speech that

may have led many to believe in he actually won the caucus vote. for the record, riewb yes finished third. mike huckabee and martin o'malley both dropped out of the race. and here is senator cruz in new hampshire today. >> six weeks ago donald trump was saying every day that i was his friend, he loved me, i was terrific and nice and now i'm an anchor baby. when we got to washington marco taken took very different paths. marco made the conscious deliberate decision not only not to lead if the fight against amnesty, but to go and stands with barack obama and chuck schumer and harry reid. lou: trump is in new hampshire and cruz is south carolina.

lou: it turns out there were a number of ties and a number of coin tosses and kan sanders won his fair share, that would be about half. what a process the dems have that would make any third world country proud. we'll have political analysis from the white house political director ed rollins. and steve forbes with us tonight. and president obama had house speaker ryan over for a private lunch at the white house. be afraid, america because there is no such thing as a free lunch. our top story, the fight for new hampshire. it was a big night tore antiestablishment candidates in iowa last night. but new hampshire, it's a whole different story. and four stabment candidates, jeb bush, chris christie, john kasich and marco rubio are

planning on breakout performances in new hampshire. carl cameron has our report. reporter: the top three candidates out of iowa spent the overnight traveling to new hampshire where they got a bracing slap from their rivals. in a post victory interview cruz was boasting the best organized and financed national campaign. >> we ended december 31 with almost more money in the bank than jeb bush plus marco rubio bus john kasich plus chris christie * all combined together. that's remarkable. reporter: cruz's victory speech went almost 45 minutes. >> tonight is a victory for

courageous conservatives across iowa and the nation. iowa sent notice that the republican nominee and the next president of the united states will not be chosen by the media. reporter: rubio is a darling of gop insiders. >> will not be chosen by the washington establishment. reporter: christie mocked rubio for what he says is an overpolished, scripted candidates i. >> we were very disappointed by his performance in iowa. sometimes when people don't perform well they don't react well and a chalk lot of that up to that. chris is always trying divert from his record. reporterreporter: trump was gran defeat. >> i'm who areored. we finished second.

and i want to congratulate ted. reporter: rubio was a close third and his acceptance speech got rave reviews. >> people of this great events steant clear message. after seven years of barack obama, we are not waiting any longer to take our country back. reporter: mike huckabee suspended his campaign last night. ben carson came in fourth. yes cnn reported he was going them florida, the cruz cam on social media suggested he was withdrawing. >> our political team forwarded it to the members of our team. but unfortunately they did not then forward the subsequent story that was ben's campaign clarifying he was continuing the campaign. reporter: cruz apologized to carson saying subsequent information had been passed on. but all of the candidates need

to brace for a lot more of it in new hampshire and south carolina. lou: on the democratic side, hillary clinton claim can the narrowest of victories over bernie sanders. sanders has. >> after stumbling in iowa hillary clinton moved quickly to try to claim what they are critics are claiming a is a hole so victory. >> i'm thrilled i'm coming to new hampshire after winning iowa. reporter: the frontrunner rocked by democratic socialist star bernie sanders. she was greeted by supporters at dawn in new hampshire where he's leading in the by double digits. a long night for the clintons

since she only beat sanders by a marin of less than 1%. eking out a win in new hampshire won't be as easy as a coin toss. she pivoted her message away from attacks on sanders that clearly did not work in iowa. >> when i listen to republicans it chills me. i will fight against defunding planned parenthood here and everywhere. reporter: sanders is signaling the klain on core anything is becoming a long costly fight. >> we'll win the general election and create a government in washington that works for all of us. reporter: clinton is trying to

gain momentum like in 2008 when she lost in see you what but stormed back in new hampshire. >> is a stand here tonight, breathing a big sigh of relief -- reporter: after shunning more debate she accepted a democratic forum wednesday and a debate thursday which will only feature clinton and sanders. martin o'malley suspended his campaign after a dismal showing. reporter: the odds of winning six coin tosses in a row is 1 in 64. sanders says he isn't going contest the results. lou: at the white house president obama hosting house speaker ryan for a private lunch. the purpose of their meeting, to talk about potential areas of

compromise during obama's last year in office. but ahead of the meeting ryan was trying to assert his independence and a few differences. he's a liberal progressive. we agree to disagree on these things. we'll put those disagreements in check, see where the common ground is and act on that common ground and get some things done. on the big issues we don't agree we believe we have an obligation to our con city 20s offer alternatives and that's what we'll be doing this year. lou: the white house is hoping to make progress on trade, criminal justice. authorizing the war against the islamic state, and maybe immigration. but not even the caucus knows what ryan or senate majority leader mcconnell will do. as speaker ryan put it, major issues.

the president not lunching with his former chief of staff rahm emanuel, the mayor of chicago. the mayor is under fire for his handling of a worsening crisis in the hometown of chicago. 51 people murdered in chicago last month. the january, the worst since 2000. some police officers blame an agreement made between the chicago police and the american civil liberties union for the spike in murder. the aclu agreement mandate police will now fill out a two-page report rather than a one-page contact card. ever since the number of police street stops plummeted, and you know the result. we are coming right back. stay with us. a great deal more straight ahead. reporter: donald trump was second but they say he's a loser. marco rubio planned third and they say he's a winner.

what about cruz? we thought he won. the polls were wrong. ed rollins and michael goodwin to tell us all about it as we get ready for new hampshire. a formula one racer and his car take on a rugby team. who overpowers whom.

lou: donald trump campaigning in fillford, new hampshire ahead of the first in the nation primary. trump expected to receive the endorsement of massachusetts senator scott brown. trump says he's confident he will win in new hampshire. >> this isn't a caucusing process. this is a normal voting process. the -- iowa is a different kind of thing. lou: a very different kind of thing. senator rubio picked up the endorsement of senator tim soft south carolina, that very important for the upcoming primary in south carolina. joining us tonight, former reagan political direct loor ed

rollins, you will itser prize winning columnist michael goodwin. where were we as we were assessing what was going to happen in iowa. the poll, the "des moines register" poll and "bloomberg" poll missed. >> they maced dramatically. they estimated there would be 47% turnout would be evangelical. it was 62%. a third went to cruz. and that was the difference in this case. lou: surprisingly, trump did pretty well with those evangelicals but he didn't do as well as everyone expected with the first-time voters that were energized and moving in record numbers into the republican caucuses. and instead bringing a lot of opposition to it.

>> that was my assumption, that he would win if the turnout was high. i think that was what i believed would be the case because of his unique approach and all the first typers. but he got a share, but not a big enough share. i was surprised on both sides that those who had the biggest crowds during the runup, sanders and trump did not get the most votes at the end of the night. >> there are two statistics i find fascinating. the first is that 60% of the republican caucus-goers in iowa voted for a minority candidate. 60%. think about that. and not a single democratic vote went to a minority candidate in iowa. what do you think of that.

>> the cruz operation had extraordinary get out the vote effort. they basically monitored not just the voters. they monitored everything in that state. the people that run that state ran the joni ernst campaign. trump spent no money on get out the vote. he spent $12 million total. both rubio and cruz spent over $40 million. lou: you are saying he's a cheapskate and it cost him. >> that's exactly what i'm saying. i'm not taking anything away from cruz or rubio. but trump had an arrogance that he could be on all the television shows. here is a guy with unlimited money, he said i want to send a billion dollars.

if he had spent a million dollars on a voter get out the voted effort he probably would have been a winner. lou are it's interesting to look at it that way. up in millford, new hampshire, he across knowledged perhaps his choosing not to be in the fox news debate may have hurt nip iowa. he says that he would have don't same thing either way. your reaction? >> i believe that the polls were changing in his favor until that debate. and his skipping it. he opened a 6 or 7-point lead over cruz in most of the polls. he had been slightly behind. the opening was given to rubio in the debate. he seized it. that's where a lot of the vote went. it went to rubio. the ground game could have

obviated the debate. but the combination he could not overcome. in addition to the number of votes passed for any north candidates in the republican caucus. this is a number that i think really is fascinating as well. that is, in the person of bernie sanders half of the democratic votes in the state of iowa went to a socialist. what does that speak to in the democratic party? >> there are a lot of socialists out there. as nancy pelosi and hillary clinton couldn't define what a socialist is. i say it's a liberal democrat that votes in the congress every day. i think the amazing thing in that statistic, there was a 60-point gap between voters under 35. sanders won that 8 84-14. that's way more than obama did. you look at the audience and

they are a bunch of old people. i'm an old person so i can say that. hillary's support was older people. the young people were basically with sanders. that's not a good thing more any democrat long term. lou: i want to go back to the socialist. we have heard the democratic national committee chair unable or unwilling to define the difference between a democrat and socialist. we are looking at polls where many democrats define themselves as socialists. we are looking at a sea change within the party. it's no longer a pejorative to identify as a socialist. it looks like a clash between -- i won't decide this early who will be facing on. but it looks like it's going to be between a reasonably conservative republican and a very liberal democrat know matter whether it's hillary

clinton or bernie sanders or whomever. >> the issue of taxes is a good lit must test for this. every one used to say i won't raise taxes. >> bernie sanders said the hell with all that. >> bernie sanders said i will raise taxes and he did. and hillary and sanders are talk about taxes. they have become openly and clearly the party of tax hikes. lou:r with $19 trillion in debt can you tell me any republican can walk out in front of the american people if he intends or she intends to govern responsibly there wouldn't be a tax increase? no one could reasonably make that statement. >> you can't, we'll be back to a

trillion dollars a year deficit. we need more revenue. do you it through creating growth or racing taxes. >> the democrats are not promising to pay down the debt or reduce deficit. they simply want to add programs. lou: republicans have to join this unfortunate refrain baits' the only responsible way forward. whatever your ideology or philosophy. $19 trillion, folks. thanks so much. be sure to vote in our poll tonight. the question is, do you think coin flips are the way to decide an election? and help the democratic broad? does it help the democratic brand? cast your vote on twitter at loudobbsnews. links to everything found at

loudobbs.com. the zika virus. texas health officials confirmed the first u.s. case of human to human transmission of the zika virus. a pay strength in the today stlas contracted zika after having sexual contact with a partner who was ininfected while in venezuela. the virus is spread through the bite of infected mosquitoes. the world health organization declared the zika virus to be a worldwide emergency. let's turn to an amazing story. who wins in an epic battle of men versus car. that's what the folks of red bull tried to find out when they put a formula one race car against the bath rugby club.

they held their own against the race car driver. the deadly match ended in a tie. red bug staged the event to promote its form peninsula one racing team. a few thoughts on speaker ryan's lunch. and we'll be talking about a driver about to learn that driving your car into a sinkhole is not worst thing that can happen. we'll have the video for you we'll have the video for you coming right up. ♪ ♪ we'll have the video for you coming right up.

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. lou: a few thoughts now on the establishment. in the person of house speaker ryan at the white house today for the first time since he became speaker. the president and speaker enjoyed a private lunch after a private meeting that included vice president biden and senate majority leader mcconnell.

before lunch, speaker ryan said this. >> there are no bones about our differences of opinion. i ran against the guy in the last election we have different opinions and different philosophies, i think he's taking the country away from what it was intending to be. lou: he did not enumerate a single policy which there is disagreement. ryan has shown himself to be a member of the establishment. ryan and mcconnell have been complicit in the president's agenda and game players rather than leaders in my opinion. the speaker praised by mr. obama for passing a massive boehner-like spending bill last year. a grand bargain for which conservatives largely gave ryan a pass because he's so new to the job and the philosophy and ideology could not be roused. the national debt has crossed a whopping $19 trillion. the latest trillion added in a

13-month period. before that it was 14 months. it is accelerating the increase in the national debt. that's with republicans in charge of both our house of representatives and our senate. working with mr. obama on that budget deal and going along with the president is part of the reason anti-establishment candidates in my view have done well so far in this presidential campaign. as we turn now to the candidates in new hampshire, we'll soon know whether the country's truly in an anti-establishment mood or ready to simply have more the same, or to really throw the bums out. it will be interesting. now the quotation of the evening, this one from jimi hendrix who said -- we're coming right back. stay with us. hillary clinton declares victory. who decided that?

no one's quite sure. but we know she won coin tosses. that's pretty good, isn't it? what a country. we take it up with forbes media chairman steve forbes here next. another convenience store robbery. what's with that? but this time the armed robber doesn't get away with the cash or his gun. we'll show you how that we'll show you how that happ when it comes to small business, she's in the know. so strap yourselves in for action flo! small business edition. oh, no! i'm up to my neck in operating costs! i'll save the day! for plumbers and bakers and scapers of lawn, she's got insurance savvy you can count on. you chipped my birdbath! now you're gonna pay! not so fast! i cover more than just cars and trucks. ♪ action flo did somebody say "insurance"? children: flo! ♪ action flo cut! can i get a smoothie, please? ooh! they got smoothies? for me.

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lou: quickly now, senator ted cruz is holding a rally in piedmont, south carolina, as i said, listen to what he's saying right now. >> we will do it together. [cheers and applause] >> in the days that follow, i will go to congress, and we will repeal every word of obamacare. [applause]. lou: tell you one thing, the folks in piedmont are pretty revved up and energized around the cruz candidacy. standing ovations, we haven't seen a lot of it. seen huge crowds but to see standing ovations looks like good indicators for the senator from texas. joining me now forbes media editor and editor in chief, steve forbes. this has to bring back old times to you, on the campaign

trail trying to revthem up and get them out to vote, which is precisely what cruz did in iowa, impressive ground game performance? >> it's going to be studied in the future, those who want to caucus states what cruz did starting 2 1/2 years ago, getting names, people on the ground. something rubio didn't do to a great extent, and trump hardly did it at all. lou: and now, with trump in second place, it becomes a somewhat more impressive performance realizing he didn't have any kind of ground game. i can't tell you how many times i ask people on the show, does trump or cruz or whomever, cruz was the only person to acknowledge to have a ground game among the republicans. does donald trump have an opportunity here to actually build a ground game in new hampshire and deliver on pose polls that show him way ahead? >> the answer is in terms of ground game in new hampshire, no. he's going to try to get

independents leaning towards him as you've seen in the national polls vote for him in new hampshire. they're allowed to do so. that's how mccain won in 2000. bush won among republicans but lost among independents. that's what trump is counting on here. lou: not to get too far ahead of ourselves, but going to south carolina where, senator cruz is right now, that's a critical state as well for the early going. he's got one in the bag. can he, in your judgment, win in new hampshire? can he win in south carolina? and next is nevada? >> i don't think senator cruz is going to win in new hampshire, which is one reason why he's now in south carolina. i think he's hoping for a respectable third place, let rubio and trump battle it out for first place. but cruz has to win south carolina, and got a very good chance in nevada because he has a ground game in nevada of caucus state and trump does not. lou: let's turn to the establishment. this is an anti-establishment vote we're watching here.

a socialist gets over 80,000 votes in iowa. that's bernie sanders of course. that's 30,000 more than the winner of the republican side got. ted cruz got i think 51,000. we're looking at something that's really unique. we're seeing real expression of anti-establishmentairnism. do you think that ryan having lunch and mcconnell meeting with the president today, i mean ryan's making a lot of noise, like he's going to fold up like a cheap lawn chair and do whatever the president says as a lame duck. >> i think whatever have you there is optics. the republicans want to show hey, we're responsible, if they want to be responsible, something can be done. the question is will anything be done on be done on immigration? no. taxes? no. ryan is introducing radical tax proposals, some of us hope to

go a flat tax. the key is for optics. anti-establishmentarianism, you have to be blunt, the economy sucks, people feel they don't have a chance to move ahead, on the democratic side people think more socialism does the trick. on the republican side, how about free markets and less washington intrusiveness in our lives? lou: steve forbes, good to have you sort out the language for us as well as the economics and politics. great to see you, steve. >> good to see you, lou. thank you. lou: steve forbes. lou: a would-be robber got a surprise in florida. surveillance video shows the suspect ordering the clerk to the register at gunpoint to turn over the money. what you're also take note of is what the clerk learned frm the clerk a military veteran waited for the perfect moment to strike back, and he did. the robber eventually fled without the money he sought and

without the gun he brought with him. police, they're still looking for him. sometimes lending a helping hand can backfire and unfortunately drastically. a tow truck driver trying to pull a car out of a frozen sinkhole in russia. the back of the car just simply, here we go. watch this. whoa! one of the men witnessing the mishap was heard yelling profanities at the truck driver but the man was just trying to help. why do cars come apart? they get put back together. i've seen it myself. up next, we talk national security and where is the u.s. military headed. and hamas proudly showing off a new tank. this tank looks rather impressive from here, doesn't it? we'll tell you the problem with the tank and tell you why none of the generals in the israeli defense agency is too, too concerned yet.

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. lou: joining us now, former army vice chief of staff, fox news military analyst, general jack keane. great to have you with us. let's start, if we m, wi

h ca, laying out, working on a budget but laying out the threats and including russia, china, north korea, iran and the islamic state. we haven't heard this enumeration of that many threats of this country in some time by a defense secretary. your thoughts. >> certainly the threats are real. i believe we are certain we have the capabilities to deal with that. frankly, this budget, while he's asking for no money, nowhere near the capabilities we truly need. what happened us to, lou, so unnsncrsirce can understand, anghtar be part of a decade, and all during that time frame, really, we were not providing the kind of capabilities, technological capabilities that particularly the air force or the navy need

and the army need to fight conventional wars. as the wars wind down, what the administration wants to do as other administrations have done in the past after major wars and collapse of the soviet union is actually downsize the military budget, when, in fact, that's exactly the wrong thing to do. lou: and precisely the path we're on, that is the trajectory for the defense budget as you point out. but then at the same time, carter asked for $3.4 billion to counter russian aggression for europe. so the way this is working right now, what carter is saying in this modern era is that the united states needs to borrow 3.4 billion dollars from china to give to europe to counter the russian aggression. at some point, someone in washington, d.c., has got to have the judgment and the sense to say we've got to try a different paradigm here because this way doesn't work for us long-term, at the same day

we're talking about $19 trillion and a national debt! >> well, what we're talking about, lou, we believe russia's strategic objective is to collapse nato. lou: and our strategic objective is to collapse russia itself. this administration is pursuing the collapse of russia's economy. >> well, let me just deal with the first point that you made. lou: sure. >> so that they're trying to collapse nato. they've been practicing exercises for three years in that direction. we have on the ground in europe right now two army brigades, and some other supported troops and airpower to the tune of 267,000 troops. at the height of the cold war it was 500,000. no one surged we need to go back. we cut the sources to the point

we don't have degree of deterrence. we've got to make the russians when they look at europe and believe they're doing what they're intended to do, it's too much for them to dochl it's an unwelcome act on their part and deter them too much. we're not doing that. and even in this budget, we're not even coming close. lou: general jack keane, we appreciate it, thank you so much. good to see you. >> good talking to you, as always. lou: hamas proudly showing off new tank. i wanted to talk to the general about this. this new tank this weekend claiming it was produced from the remains of israeli tank. since then people taking a little closer look at the images and there's been some, well, notice on the internet shared with the world. what you're looking at are tires. tires beneath the tracks. the spokesperson for prime minister netanyahu noted real tanks don't usually -- well, aren't made out of wood and don't run on wheels.

others say that the gun touret looks suspicious as well, it looks like a sewage pipe. we're thinking this is not the next iteration of a combatant tank on the part of hamas at least. turning to wall street, stocks closed sharply lower, the dow plunging 296 points lower, the s&p down 36, the nasdaq fell 103. volume on the big board 4.4 billion shares. a reminder to listen to my reports three times a day coast-to-coast on the salem radio network. more breaking news on the zika virus, unfortunately, the american red cross tonight is now asking all the red cross is asking all prospective blood donors who traveled to a zika outbreak area, any country that's nearly every country in this hemisphere, to wait a month before giving blood, that

is excepting of course, north america. they want you to wait one month before giving blood. brazil reporting a surge in birth defects and the defects are suspected to be linked to the virus. 4,000 babies have been born with abnormalities, up from 3700 last week. the number is rising. this is truly a worldwide crisis. up next, lebron james tattoos trigger a copyright lawsuit. figure that one out. and we take up the case with lis wiehl and mercedes colwin next. you're not going to believe this country's legal system. well, i think it can be better. the attorneys disagree with me. but there it is. we'll take it up with them next. next. stay with at ally bank, no branches equals great rates. it's a fact. kind of like bill splitting equals nitpicking. but i only had a salad. it was a buffalo chicken salad.

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at ally bank, no branches equals great rates. it's a fact. kind of like grandkids equals free tech support. oh, look at you, so great to see you! none of this works. come on in. lou: we have been waiting all day to talk with two of the best attorneys in the business. lis weihl and mercedes colwin. mercedes and lis are fox news legal analysts. le bron james and his tattoos. people wants to have ownership over the images of his tattoos. it's the nba 2k. and the artist has copyrights? this is outray just.

>> why? >> it's being used to make money. so the damages may not be great, but original artwork out there to make money. not everybody's tattoo, but someone using tonight a movie or video. >> it's skin art. that's exactly what it is. it's skin art. the fact that he has on a tattoo. an original tattoo artist that did it. he's an artist. lou: everybody has tattoo and they are walking around in skin that doesn't belong to them. >> skin art. lou: the truth is, this is the kind of thing going on -- a student goes and gets a school picture, and that belong to the photographer?

these issues are getting crazier and crazier. >> images are different. if someone takes a picture of us, we have ownership over that picture. if they sell that picture without our consent. lou: i think we need to work this legal thing out. all these crazy ideas of what is equity. all these crazy ideas of what is a reasonable time to bring a lawsuit and have it adjudicated whether it's criminal or civil. the country's legal system is falling apart. except for the part where you two have dove minion. it's amazing to me. let's turn to the lottery lawsuit. this is a good one. two lovers fighting over a million dollar lotto ticket. they have a dispute over who gets the money. the boyfriend says half. >> i think it's a problem.

they have nothing in writing. it's he said, she said. no oral contract. lou: oral contracts are worth the paper they are written on. >> unless there is a witness that heard it, it's anne a he said-she said. he says he gave her the $20 for the ticket. did he give that as a gift or a conditional gift, conditioned on buying that lottery ticket. if he could prove it was conditional, then maybe he's got a shot. lou: there is talk last night and early this morning that we are going see bernie sanders sue the dnc and the democratic party because they have this screw ball system in iowa. no way. >> the coin toss. it's a little problematic. >> can you imagine that it comes

down to a coin toss? if that's written in the rules that you can have a coin toss, they are probably okay. if it's not, it's let's have a coin toss to figure this out. what are you going to say. the guy is inundated in tattoos. he's got $120 million. >> he can afford the tattoos. you have got a lot of skin in the game. lis weihl, mercedes colwin, thanks for strainenning us out. 73% of you have say you are more thussed about this years election than ever before. i think people are pretty excited and expressing it in lots of ways.

witness iowa. next, new hampshire. we thank you for being with us tonight. we'll see you tomorrow. good night from new york. kennedy: you better believe we are back. donald trump and hillary clinton are incapable of spinning their way out of iowa's hearty gut punch. the night belonged to ted cruz who gave a long, rousing extended speech fit for a new emperor. >> iowa sent notice the republican nominee and the next president of the united states will not be chosen by the media. will not be chosen by the washington