30. charles: somebody talking about the f button. went over my head. i chuckled. there was the ultimate point. the democratic party belongs to millenials. that is not hillary clinton. dave asman in for hillary clinton. david: charles, i never seen anything go over your head partly because you're so tall but i don't believe that one. charles: thank you. david: i'm david asman in for neil cavuto. a busy two hours ahead on "coast to coast." our top story, record breaking cold in much of the eastern half the country. dealing with unbelievable snow fall amounts, several feet in some spots. new york city could be one of the coldest ever on record. weather company senior meteorologist dan leonard here to break it all down. first how long will it last, dan? >> dave this, is impressive cold shot not only because of the intensity of the cold but the duration as well. talking about new year's cold for east coast. it goes on for several days

after that. this is week to 10 days worth of subfreezing temps for a lot of big cities in the east. that is very impressive. we haven't seen cold like this since the polar vortex from a few years ago. david: what about erie, pennsylvania? i have got to focus on one little town. not so little if you live there. my grandmother is from eerie. five feet so far. they're getting a another major snowstorm by this weekend. they could end up with 10 feet before long. >> it is amazing. that is what you get arctic air going over relatively warm, unfrozen waters ever the great lakes. that is why the rest of big cities in the east don't have the snow with arctic air mass. the air is too dry. you know moisture to deliver the snowfall totals. that is it what the great lakes do. i will say, david, next week, january 3rd or fourth, middle of next week. we could get gulf and atlantic moisture involved in the arctic up break, big cities on east

coast have to watch for a potential big snowstorm. that is a few days away. we have something to watch going forward. david: the only saving grace for new york right now, going into single digits, to got very closo that overnight. you shower, your hair is dry in five minutes. extraordinary how dry it is. it will change as temperatures actually warm up a little, right? >> we have the potential storm in the middle of next week that would bring relatively milder air, moist air especially to the east coast. but i will say this, david. looks like the potential for more significant pattern change, potentially a january thaw coming in the second week of january into the eastern half of countries. hang in there. there is light on the end of the tunnel here. incidentally the west where it has been so warm, so dry, bad news for western ski resorts, looks like they will turn a lot cooler, potentially stormier as

we head into mid-january. that is really good news for the west. david: by the way you talk about dry air in new york but i imagine the folks in vermont are getting snow, so it is good for snow lodges up there, right? >> oh, yeah. new york, new england had a banner year so far. that will only continue over the next few days. probably another big storm in the middle of next week to deposit a lot of snow into the middle of january. even if we do get the january thaw as far north in new england it probably doesn't melt any of the snow. great skiing conditions for the next two or three weeks. david: it is important for the snow economy, the ski economy. dan, thank you very much. if you're looking for heat right now, record breaking holiday sales ahead of tax reform kicking in. new york governor andrew cuomo hitting tax plan for blue states. his state will proprose restructuring the tax code in response to the overhaul.

evan siegfried and veronica daguerre where all this goes. veronica earlier this week there was worry about china. let's talk about growth first of all, about how the chinese economy was going to overtake the u.s. economy, to which i said bull. that is a bunch of bs. when you look what happened to the china past few months. they're becoming more authoritarian, worse for the economic conditions in china. you look at the u.s., this huge tax cut will mean tremendous growth in 2018. i think there is no sign of trying to overtake the u.s. economy, right? >> if you look at chinese numbers, they're a bit of a black box. you're not sure which data to believe, what not to believe. but the u.s. economy as you said, companies are strong. they're hiring. keeping workers around. consumers feel confident. holiday salespeople are spending. the conassumer is back. they may be taking on a little bit too much debt but still it is because they feel good about

their prospects. also this tax reform is only going to add to that fire of spending. david: evan, there is always a wing of the republican party that worries about overheated economy. they have been very skeptical of the supply side notion you can grow as much as you want. it is always good. nothing bad about growing. this wing, they're deficit hawks. they don't seem to be represented by the trump admin operation itself. the trump administration, whether gary cohn, steve mnuchin, anybody else, president himself, don't really buy into the notion that we have to be concerned about an overheated economy, right? >> they want to have the whole snowball effect to take care of the debt on its own. i'm personally one the people who worry about the debt. the economy is on fire right now. i think it is very good. holiday sales for retail earlies is working very well. americans are expecting $2,000

in 2018. i am expecting tax cut. i bought a dutch oven. i'm happy to give it that way and pay it off that way. david: veronica, the question is how businesses react to this. the naysayers all they will do is increase their dividend and buy back the stock. other people, including some of those corporations themselves, particularly smaller businesses say no, we will use money to grow. >> consumers and investor will hope happen this is time. this hasn't happened in the past. that is where skepticism comes in. we're seeing some companies already giving bonuses, if the president signed the legislation they did, he gave bonuses out. we'll see if that translates to higher wages going forward. the middle class hasn't seen wage growth substantially in a long time, several years. they need that in order to keep fueling this economy. so when that kicks in, yeah i think we have more believers on the tax plan. david: evan, talk about how governor cuomo and he and a lot

of democrat governors saying ending of state and local income tax deductions that is the president is beating up on democratic governors. the high-taxed states needed salt deductions to keep taxpayers happy. taxpayers are unhappy about their tax bill. they have been able to deduct it in the past. they will not be able to do that in the future. does that hurt them? >> i was one of those people who opposed him names of the deduction. david: because you had personal interest. >> i had personal interest and responsible for new yorkers to keep it there and other americans throughout the country, people in ohio as well as state of washington. yes, those are blue to purple states. now the tax reform package has passed. this is reality, and up to the governing bodies of every state to deal with it and see -- david: who will take the political blame though? will it be the governors and the mayors like de blasio who have

high taxes or will it be president trump for getting rid of "salt"? >> it will be everybody in new york state. we don't like everybody from de blasio all the way to trump but we're seeing governor cuomo saying this is unconstitutional. what he is doing right now, he is gearing up to run for president, not to be a governor. come on. david: veronica will he have to do something to alleviate pain on taxpayers used to that deduction? >> he may. you have to think about in total perspective here. people's income taxes are being lowered and so that can help some people as well. so i think you have to wait to see what your tax bill is. if they're lowering tax bracket you may lose the "salt" deduction, you may come out a little bit even at least in the short term. david: what worries most about the economy? what keepings up at night if figure in about the economy. >> we're seeing about the decrease in people's credit cards in terms of the debt. they're not paying off within the month.

that scares me. that is a bad habit especially when we hear about people not having emergency funds. average person in the united states i think doesn't have $400 worth of an emergency fund. that is concerning to me because when we do have another downturn and weville another downturn, are people going to be prepared. david: we have to end this discussion. so where is the end of the year coverage after booming economy? pew says the media coverage of trump is three times more negative than obama, 5% positive despite all the economic successes. former democratic ohio state senator capri cafaro joining the panel. what do you think? is the media slow-walking if not ignoring the good stories in the economy. >> i don't think they're so much ignoring the stories. i think that because of the 24 hour news cycle. because you know, people get so fixated on the salacious aspects, particularly of president trump's tweets, that you know, i think that the media is more likely to pay attention

to those things, for better or worse. but i also think it is consumers fault. people get excited and sucked into the intrigue of these tweets about you know, little marco or you know, whatever he was called, "rocket man," throwing the kind of insults around. i think that unfortunately that is eclipsing the message of the economy. i think president trump and his team would be better served to stay on message so the media could stay on message as well. the media will never ignore tweets or salacious things going on like the russian investigation. david: capri, you're kind of a rare bird there aren't that many free market democrats left. i think of the old scoop jackson democrats. >> right. david: blue dog democrats but you are a free market democrat and when you listen to chuck schumer and listen to nancy pelosi say there is nothing good about the tax bill, that it is the worst bill ever, i mean if they are wrong and if

veronica and evan are right we'll see an economic boom as a result, doesn't that completely discredit the democratic party? they are the leaders? >> well, look, this is what i consistently said about the democratic party, my party, that we need to be more than just against something. there are good aspects of the tax plan, particularly, you know, for example, for pass-through entities for small businesses. for, you know, making sure that the standardized deduction is doubled. yes, are there, carried interest and some of these other things big wins for -- david: we talked about it. they shouldn't have stayed. >> but at the same time you can't entirely ignore what is happening. now you have a number of companies actually investing in their workers, growing the middle class out. that is important. democrats need to get on board to be part of the solution, not against things. david: they're not. that's the point. if we get this growth spurt in 2018 schumer and pelosi say that

never will happen, i imagine that raising your profile in the democratic party quite a bit, right? >> who knows and frankly i don't care. i care about best for the american people. the folks in washington will do what they're going to do, dccc, congressional campaign committee will do what they're going to do. i hope they learn from the mistakes of the past elections. i hope they listen to folks in the middle of the country about what we believe, as opposed to focusing on what the coasts think in this echo chamber like $1000 doesn't go far. come to trumbull county, ohio, $1000 will go very far. david: 45 bucks a week buy extra bag of groceries, very important for a lot of people in this country. evan, do you think president trump can find enough blue dogs democrats to work with, to get something passed in bipartisan way? >> no, i don't. that is politics. david: you heard capri. she is democrat. >> if capri were running

democratic party we republicans would be in trouble but they're not and the base is further and further left. more and more rabid. if you say good morning to the president they want a primary to throw you out. david: did i hear you agree with that? did you hear you going yes to that, capri. >> that is true. to our peril. we saw that happen with the republicans in, in the tea party movement as well. when either side goes too far to the extreme left or right, it hurts people in the middle. the other part of it is gerrymandering. there actually aren't a lot of blue dog democrats. you have super republican or super democratic districts. it is not in their interest to compromise. david: house intel committee issuing a subpoena to the associate of john mccain's. this is the latest twist on the russian saga. it continues on and on. wait until you hear the latest. that is next. ♪

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all with an xfi gateway. find your awesome, and change the way you wifi. david: a new wrinkle in the trump dossier investigation, the house intel committee issuing a subpoena to this man, david kramer. he is associate of john mccain's over his knowledge of sources behind the largely discredited dossier. to "daily caller" news foundation editor-in-chief, chris bedford.

david kramer, did you know who he was before this incident hit the press? >> i read his name. it didn't pop immediately to mind. when he looked back and information we had written he had a minor part along the way. congress is going to want to know, there are two things we want to know. who are the russian spice that gave christopher steele this information and who gave the information over to the press, to buzzfeed. kramer met with steele and he knows who the russians are. another russian attack in dossier, suing buzzfeed over this, his lawyers say they know who the sources for steele were but they're keeping it quiet right now. the judge has a gag order. those are two of the biggest mysteries. hopefully they will be solved very soon. david: let's ask about the time frame here. as i got it after the election, the november 2016 election that steel met with kramer, correct?

>> i believe you're correct on that, absolutely. he went over at mccain's behest and handed it over to the fbi. david: remember that famous comment, we need some insurance that peter strzok comment, after i met with andy, we assume meaning andy mccabe, in fact this might have been the insurance policy if trump -- they didn't expect trump to be elected president but they said if he is, we have to have an insurance policy. again all roads seem to be leading to the trump dossier as that insurance policy, right? >> that is unfortunate, that is an unfortunate theory and it looks correct. it is unfortunate because that dossier as soon as you read it didn't pass the laugh test or sniff test. it was clearly bunk. it didn't make any sense. i know security services were interested in getting their hands on it, the fbi, because it suggested that russians were spying on the potential president of the united states. that caused worry but, beyond that, it should never have gone

that in a presidential briefing. david: it was use, it seems, if with we're saying it is true, it was used by fbi, it was used for two purposes. one they tried to peddle it around to prevent donald trump from getting president. two, after he became president, shock and surprise to everybody, they were still hell bent on getting this thing circulated, apparently to david kramer, which as i understand was two weeks after the election. that is what kramer was brought to meet with steele to talk about it. in january they apparently offered it to mr. comey, david kramer did, even though comey already had a copy of it. >> people trying to get this around is certainly cause for concern. all of these were still, reporters are working pretty hard to see what we can confirm because the fbi not at all been forthcoming. cramer has not been completely forthcoming the whole reason for the subpoena here. the congress has been left in the dark. buzz fee put this whole thing

out, laughable thing, says the public has the right to know what is going on here. they had to pull it back, none of this was true. president called it bunk. i actually think we're getting pretty close to getting some of the answers you're talking about here and what we're seeking with people starting to able to identify every player who is involved. once you do that you can figure out the it out much more easily. david: we want to know exactly who introduced kramer to chris steele. was it somebody in the fbi? was it andy mccabe? was it bruce ohr, whose wife was working for fusion? was it peter strzok who talked about it in his messages? any indication who introduced this mccain associate to christopher steele, the british spy? >> only most, the only fact we know for sure that kramer was sent at the behest of senator john mccain. who offer tipped this off and set up this meeting most likely in contact already with the senator. david: evan, there is a question

whether the fbi spent any money on this largely-discredited dossier. if they were actually paying for some of this stuff, and then circulating after they pay for it, there has to be some law that was broken somewhere. >> god, i hope they didn't pay for it that would be a waste of taxpayer money. what they should do if responsible law enforcement organization should confirm or deny. if they found the dossier is bunk and say it is bunk and here is why. the reason we get to the bottom of lot of things going on there a allegations, including people within the administration that this dossier was used in the fisa warrant against carter page. we haven't seen the fisa warrant and the president has the ability to declassify it and. david: that is good point, veronica, he could put a lot of questions about this, release all this stuff, told us about the fisa warrants, who issued

them, whether they were contingent upon what was in the trump dossier. >> he codo that. we'll see if he actually does. there are some unanswered questions like this. this story will not go away anytime soon. meanwhile, i think average american, you know, in chicago, in utah, wherever is probably not really focused on this story. david: the question what happens in 2018? we'll see. chris, thank you very much, really appreciate it. >> thank you. david: we'll have more with the panel coming up. meanwhile from las vegas to times square officials are beefing security up for when the ball drops. we'll bring you an update on these unprecedented precautions. and is isis really on the ropes? signs the terror group will continue to be a threat. we'll share those signs with you after this.

david: winter blast dumping for than 65-inches of snow on erie, pennsylvania. that is five and a quarter feet. it is crippling the city, breaking a 59-year record, and a

lot more snow coming there this weekend. good luck, folks. we wish you the business. bitter cold not expected to deter crowds in times square. new year's eve security presence expected to be the most ever. security in las vegas expected to include snipers and national guardsmen. we have paul violas. it is being called america's party, 2018. they're expecting 350,000 folks. good for them. we wish them the very best but they are on the highest threat alert that is possible. it is level one, whatever that means. one thing that means is that the feds are willing to share a lot more intel with them and provide them with material support. can you tell us what else is going to happen? >> you know one thing, david, that i think our viewers need to understand that is just a fraction of what the overail security is going to be. the majority of the security

will be what they don't see. majority of people inside crowds, sworn law enforcement officers, federal agents dressed as patrons, you won't even know who they are. david: joe lombardo, has empathy and support of every american that saw him after that worst mass shooting in u.s. history back in the fall. he says they are ready. that they are safe and ready. it doesn't seem like he is encouraging people to come but he is saying those who decide to come are going to be safe. is that an unreasonable projection? >> i think it is the only thing he can really say at this point but i would really step back, david, before i use the word guarranty. one. things we try to do, we try to jump real quickly into insuring that we got this under control. sort of like the comments about, we pushed isis back. we won against isis. i think we need to be more. judicious in those comments. we need to underpromise instead

of overdeliver when it comes to providing protection for the public. david: we'll talk about new york city later in the program. i want to switch, since you mentioned isis to the new attack in kabul afghanistan. it's a long way away. it killed 41 people. paul we did hear the great report that 98% of isis territory has been taken back but they are still threatening a large part of the middle east. remember we still have a lot of troops in afghanistan. >> we certainly do, david, and we need to make sure we understand this war is not over. it is in fact a war. it is not over. they haven't gone anywhere. we need to be careful about the numbers being thrown out there with respect, we pushed them back to 1000 people. that is simply not the case. we don't have a solid way to quantify how many people there. as we look into new year's eve we often need to understand isis has done a exceptional job, david, recruiting and training over the internet. we know that we know they use social media. we're taking steps in that area to monitor that and police that

but we have to be much more careful with respect how we're portraying what we do comes to providing security talking about larger events as it relates to isis and their methodologies. david: we went after the taliban after the 9/11 attacks, 2001. we dispatched them relatively easy. nothing is easy in warfare but a few hundred of our special forces guys. al qaeda has kanged their a liege an to isis, right? >> isis the group everyone is looking to and everyone is following. david: paul, thank you. >> always a pleasure, david. david: appreciate it. meanwhile obamacare's individual mandate may be out but where is the relief for businesses? where this all goes for employers right after this.

♪ . david: last minute announcement from the irs could mean major headaches if you prepaid your 2018 tax deduction. blake burman from washington. those of us who pay a lot of taxes in high-taxed states it could be a problem. explain. reporter: there is rush across the country, david, people in areas trying to get a jump paying their 2018 taxes now because the "salt" deduction are tapped to $10,000 when the tax code foes into effect next year. the irs tried to clarify the whole situation but they might have caused more confusion. they put out two stipulations the first one saying if you want

to take advantage of this deduction you have to pay the bill this calendar year that makes sense. that is straightforward. here is the second issue, and this is what is causing the confusion, irs says, anticipated payment of real property stocks taxes not been assessed prior to 2018 are not deductible in set 7 set of translation there, if your municipality hasn't given you your 2018 tax bill all of this might not apply to you. this is leading to a lot of question marks for people all across this country. just to give you one example down the road from us here at the white house is fairfax county, virginia. one of the wealthiest counties in the entire country. they had a rush of people trying to prepay, but they fall into that category where they're trying to figure out where all of this stands to them. the tax administrator told us they had 2500 people on tuesday alone try to make these prepayments. >> this started off as a slow drip, turned into a trickle and

then a stream and now a river. we did not anticipate the numbers that have shown, that showed up particularly yesterday on tuesday. then today much less, but it's, i'm amazed. reporter: david there is a lot to consider here. one point being this was advisory that was put out by the irs, not necessarily something that is settled into code at this point. i also spoke with representative from the tax foundation earlier today who suggested depending on your individual circumstance this might not be the play for you, because it could potentially raise amt issues. bottom line with all of this, if you are considering doing the prepayments, where you live, how much the tax bill is, et cetera, how much you make, first consult with your tax professional. david: that is it, tax accountants were not going away. a lot of them were afraid of that. >> reporter: no. david: i'm wondering somehow has he loves to do, president trump could ride into this, all of this, irs get your act together

we'll allow people a chances, even if they don't have the tax form from the local government we'll give them a chance to prepay and get the deduction for 2017 or 2018? reporter: certainly possible i guess, but speaking with people all across the country on this, there are so many different circumstances as it relates to where you live and local laws, the state laws. so while this tax code was expected to be simple this, one little portion going into it is being complicated. david, one other thing, keep in mind when they were writing this, they realized the, the tax writers, there might be the rush. they specifically singled out the state and local taxes but the property taxes is where people are going with this. it is a last-second loophole trying to be exploited. irs is trying to clarify. one of these -- david: i wouldn't say exploited. it is my money. i want as much advantage as i can possibly get. blake, appreciate it. here is another issue.

the obamacare individual mandate is gone as the tax bill is signed into law but businesses are still forced to offer their employers coverage, employees coverage. apple metro ceo zane tankel and with our panel how obamacare is still impacted businesses. zane, great to see you. business mandate is still there. it affects you. tell us now. >> people have the option, most didn't want it anyway. they were paying fines. depend on aging population of your labor force. so we have thousands of people. most are 30 or below in the restaurant business. it's a young person's business. they were forced to pay, i think this last year was $595 fine. david: did you have employees who decided to pay the fine instead of getting insurance? >> by far and away the majority. david: the majority? wow. >> it was still much more expensive to buy insurance. it was well over 1000 for the exchanges, et cetera, et cetera. david: these people in their 20s. they don't think they need it.

>> they never had it. they don't know what it is. they said rather get into the complications of buying it is easy to pay the fines. >> did they recognize, have you explained exactly what will be happening here? >> they're very happy. they found $600. david: you're not happy. because if they want insurance because of business mandate continues if they want it you have to supply it. >> we do. at least in our population of several thousand people not something they are running to do. david: talk about the general idea of the tax bill, how that will affect your business, whether you're just going to pocket the extra money, if you get extra money or invest it. >> neither of those two, how it after feats us as businesses. i can tell david, in february, people get tax refunds every year. in that month our sales to straight up. like it was valentine's day or mother's day or new year's eve because people have found money. now it will be a weekly find as

far as we're concerned. i think we're already seeing the psychological effects of people having more money in their pockets. and i think it bodes extremely well for the retail industry, for us in particular. and the restaurant industry and our space within the restaurant industry which is casual dining. >> what will you do with the extra cash? >> you mean with the extra cash in terms of corporate taxes. david: people go to the restaurant, perhaps not paying as much in taxes. i assume you have extra cash. will you pocket it or give it to employee bonus, what are you going to do. >> i will not pocket it. we'll look for more new sites, we're in a difficult situation being in new york city, rents are only going one way. people are getting realistic, drive up and down some of

our avenues see all the empty stores. so as those things happen. one man's crisis is another man's opportunity. so as this real estate thing looks like, smells like, feels like it is starting to peak, maybe start to come down we would definitely use that cash for expansion. we would use that cash for reinvestment in our business. it doesn't go as people say, or democrats say, i don't want to make it a political situation that people take more money. most corporate heads, i'm a private company, are under contract with the stakeholders, right? so if there's more money that comes into that corporate entity through taxation, it is not their income. they're dealing with the public's funds. and so they don't turn around and say, oh, i make 4 million. i got a big tax cut, i take six. doesn't work like that. david: veronica, business mandate of obamacare.

why wasn't that cut out. was is matter of paying for the tax cut? >> could have been. that is a good question. individual amt remains. wonder why that is still there. there is overlying questions with tax reform. was it done too quickly with aspects like that? i don't know. it will be interesting to see businesses, now that they have extra cash, will they hire more and give people's raises. many consumers, customers of businesses are also the direct beneficiaries of this tax reform. so will that economy come back into the economy? will we see increase in corporate profits. that in turn goes back to the shareholders. stocks prices go up. there is virtuous cycle that could be happening. we could be on the midst of it. we'll see if it happens in knew year. david: evan, talk about where blake was, talking about complications of the tax code. seems like the irs really can't figure out what exactly the implications of the new tax law are, am i right on that. >> you're absolutely right. that sound we all heard, sound

of my dad losing his mind. he prepaid 2018 taxes for 2018. he might have had a stroke. i will check in him on it. david: you would think -- >> they allowed prepayment whether they allow the deduction. that is muddy waters. i hope you're correct. i hope president trump will issue an order to clarify. david: zane, very quickly, we were hoping one. benefits that is one of the ways being sold of the new tax law, that you guys in the business community would, wouldn't have to pay as much for tax accountants. >> sure. david: but i look at all the complications, maybe you will pay just as much, if not more. >> maybe yes, maybe no. in answer to blake, we're at full employment 4%. not much more you can do in terms of employment, right? in earlies of it expansion, in terms of reinvestment, in terms of of cap expect, theory of dollar is not one-to-one tax cut, not goes one dollar back

into the economy, an eight or two to one. the money goes, recirculates, spends. that dollar cut might translate to two dollars turning into the economy. ultimately it is wage increases, i'm amazed you can afford to be here. new year's eve is his night. you make more than one night than couple months. >> per head price is. okay, $375 a head to go to applebee's per person. if you get window seat $450 per head. we sold out all our window seats. about to sell out all the seats. david: good for you. >> thank you, david. david: president trump's wraps up first year under foreign policy but not everybody is applauding it. the future of diplomacy after this.

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♪ david: mercedes going head-to-head with bmw for top u.s. luxury car sales in 2017. gerri willis is at the new york stock exchange with latest on this hi, jerry. >> hi, there, david, two german automakers mano y mano. who will be the biggest in the luxury category? it is becoming clear it will be mercedes-benz. look at these numbers, mercedes outselling bmw by 30,000

vehicles this year and that really represents about a month's worth of deliveries. mercedes-benz coming out on top beating lexus and audi as wells doing very well indeed. the question is why? apparently they have more crossover vehicles in their lineup, bigger crossover vehicles than bmw. that is leading them to the gain as you can see right there. really mercedes leading the category. reset for a second, talk about the u.s. market. new car sales, talking about cars, autos, not the big stuff. down 7% on the year. at 1.57 million units. before you get upset, well, about the economy understand that american buyers are resetting and buying suvs and crossover vehicles more and more and more. that seems to be the more positive thing to buy these days. overall for the year we're expecting u.s. sales to fall and world numbers, worldwide numbers will grow. but there you have it.

david? david: mercedes or bmw, i would be happy with either one. gerri, thank you very much. to drama with china now. trump tweeting quote, caught red-handed. very disappointed china is allowing oil to go into north korea. there will never be a friendly solution to the north korean problem if this continues to happen. that is not good. china by the way denying the reported oil sale ever took place. to fox news national security analyst karen skinner. i guess they were caught red handed? they may deny it but, that is really not adding up to much, their denial? >> absolutely. i think the president is right. this is a disappointing outcome. i think we're still gathering some of the intelligence and spy satellite facts but this really underscores for us the reality that china, for a couple of decades now, has attempted to appear tough on north korea and

its nuclear program, but at the same time, have propped the regime all along. and the challenge of the intensive diplomatic activity this year, that secretary of state rex tillerson has taken underbehalf of the president has been to convince the chinese that the status quo on the korean peninsula does no in fact equal stability. what we're seeing now with this potential violation of the u.n. security council revelation, that we have a lot of diplomatic activity to to and we have to think about military options. david: such a bare faced lie. day before yesterday china came out with the figures we were skeptical about, there were zero imports of korean iron ore and korean coal and zero exports of oil to north korea from china.

a at least one of those seem absolutely a bare-faced lie. they have no shame at all. >> yes and they are in fact really increasing the insecurity for just millions of people in the region, in their own region and throughout the world by supporting north korea. the sanctions only work when we get compliance. the chinese are the most important nation in terms of the compliance regime because most of the oil and petroleum products that north korea receives are, come through the chinese. so if they don't live up to the, all of the resolutions of this year which are getting tighter and tighter around north korea to really punish the regime then we haven't done very much. david: no, not at least with regard to north korea. nor has any administration for the past three or four administrations. meanwhile rex tillerson penning a "new york times" op-ed saying

quote, i'm proud of our diplomacy. evan sig feed and veronica daguerre are back with us. rex tillerson talks about abandoning the strategic patience or leading from behind. there are strong moves in terms of making nato pay more money. in terms of military defense. tomahawk attack in syria. dealing with the u.n. finally in very hard-nosed fashion. there are very different ways of dealing diplomatically with the world than under obama. >> there is especially when it comes to isis. we've been very aggressive and very focused on that and have done a great job in that regard however there are some holes here though. from what we're hearing though there is some key ambassadorships that are empty. i heard south korea ambassadorship was still empty. if we don't want to lead from behind we have to make sure the

positions around the world are filled and we're taking an active role. david: evan? >> i think secretary tillerson has done a very good job with north korea. he reflected what the president wants to do sanction chinese companies and entities that enable north. i think now they need to do more sanctions. i at the same time i do worry we have not confronted china enough. david: would you at least concede we have confronted isis and won that battle on the ground in terms of -- >> absolutely. we are doing a good job in syria. there could be more done on humanitarian side. david: that has got to be it. bitter cold gripping parts of the country and it is not about to get any better. what this all means for your new year's eve celebrations coming up. whoooo.

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...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. david: welcome to "cavuto coast to coast." i'm david asman in for neil cavuto. there is dangerous cold gripping parts of the country. we could see records on new year's eve. minnesota already in the record books with one town plunging to 37 below. and erie, pennsylvania, still digging out from a record snowfall of more than 5 feet with another snowy weekend on the way. chief meteorologist from weather belt is on the phone, how long is the big freeze going to last, joe? >> 10-15 days. we've been warning people and, actually, clients said it's very interesting, david.

the hurricane season, believe it or not, of 2010, you go back and hook at 1933 and 1995, you look at those hurricane seasons and you look at the following decembers, and there was an intense cold that settled into the united states, and it's an amazing analog. david: that's interesting. >> you can't use it all the time, but we used it this year, and it has to do with the amount of hurricane activity in the western atlantic basin versus the western pacific, believe it or not. it's something i've been researching since 1995. david: wow. >> what's interesting is you see this step down, step down, step down. we started to get cold in november, backed off. we had three snows in a row in the ian part of -- eastern part of the united states, backed off, and now it's going gang busters. the period through january 10th will be the coldest 20-day period surrounding the holidays since 2000, perhaps since 1983, and if it can beat '83-'84, it

would have to go all the way back to the '70s, and we're talking for the united states as a whole. you're seeing the price of natural gas surging up because the market is starting to catch up with what these past patterns told us to look for before. so that's what's going on here -- david: joe, let me just ask you a question. i'm going to extrapolate on what you were saying. the relationship between a very strong hurricane season as we did have and this cold weather, is it that there was so much activity down south where the hurricanes happened that it pulled down that mass from the north, or is that too much of an extrapolation? >> well, i tell you what, if i could get on a blackboard in front of you, i'd show you the period. there's a lot of upward motion in the atlantic, all right? you got a lot of upward motion during the hurricane season, until that is disrupted and destroyed, it will draw cold air if cold air's available.

so what has happened is with this la nina that came on, unlike last year's, it's colder in the eastern pacific than the central tropical pacific. that is a known signal for cold air invading north america. and once that happens, down it comes toward -- it literally tries to come down. now, what's fascinating about this is if you look at what happens the rest of the winter from mid january on, it breaks both ways. one, major thaws. 1933, for instance, january of '34, got very, very warm and then february got cold. you look at 2005, it tried to get colted in december, enthit -- cold in december, then it warmed up in january. other instances like '95-'96 we had the big blizzard of january, it warmed for a while and came back again. it's research we were doing, we actually used it to set up our clients this year and in talking to them, and that's what we do. you know, i'm not on tv all the time, we forecast for energy companies and hedge funds and

salt clients, for instance, we try to give them a little bit of an up and use things that may not be common. the problem, david, is it's realtime, battlefield testing. in other words, it's not like you have have had it peer reviewed -- david: hey, it's fascinating. that's why we have you on, you don't just give a weather report, it's history. joe, great to talk to you. thank you very much. appreciate it. well, from bitter cold to an economy that is heating up, president trump tweeting out today: retail sales are at record numbers. we've got the economy going better than anyone ever dreamt, and you haven't seen -- he didn't see nothing -- he said anything yet. here to respond is our panel for the hour, managing director jason meister and wall street journal editorial board member mary o'grady. mary, what do you think of the

president's tweet? is he right? >> i think he's absolutely right. david: so 2017 was nothing compared to what 2018's going to be? >> >> well, the economy is starting to return the more normal numbers. the obama economy was anemic. finish and i think by definition when you have more money going into the hands of the private sector than you have going to the government -- which is not, does not create wealth -- you are going to have more opportunity for creating wealth. and the main pillar of this tax reform is the corporate reform. the individual tax reform is not that important, and a lot of skeptics are saying -- david: not that it's not that important, but it wasn't dealt with as much as it perhaps should have been. >> a lot of skeptics are saying it's not going to be enough to stimulate the economy. that's not what's going on. it's the corporate reform that's going to allow corporations to have a simpler tax return and a lower rate that's really going to stimulate -- david: and i just wanted to make

a point which is that you guys at the editorial page are saying it should have been stronger on the individual side. jason, perhaps the economy would have grown even faster than what the president is predicting for 2018. >> even faster. but i agree, i think 35% to 31% is really -- 21% is really going to unleash the economy. i think we're going to see it go gang busters. we're going to have a lot of jobs coming back to our country. i think it's going to really stimulate the economy -- david: are you betting that way? >> i am. david: in what way? into the stock market that way? >> i'm looking at different companies investing in america because we have an america first president in office. so i think -- and i challenge anyone to tell me that when we've cut taxes, we always have federal revenues go up. there hasn't been a time in history where we cut taxes, the federal tax revenue went down. i think that's a big thing. >> yeah. i think it's worth pointing out there are things that the president could do that could

damage this. for example, his trade agenda is not good for the united states. in fact, free trade is what's good for the united states, and if he starts dismantling nafta, i think that could undermine some of what -- david: he has, he has said in the past that it's the regional trade deals are the ones that end up being bad for the united states, that he's going to replace them with individual trade deals with every country. now what that has proved to be is very difficult, because instead of one big trade deal -- which may or may not be good or bad for the united states, but you end up having to deal with a lot of countries, and it's very complex. >> well, plus, it assumes both mexico and canada will be cooperative in that and, of course, they're very upset about the dismantling of the north american free trade zone. david: does it bother you, the trade aspect of the policy? >> not so much. i think that trump is -- look, he wrote "the art of the deal." i think he understands how to negotiate better trade deals better than any paid politician or career politician.

i think -- it's very refreshing. we finally have a businessman in office, someone who is a pragmatist. he's not an idealogue like obama or hillary clinton or even george bush for that matter. so i think he's going to make decisions that are right for this country. and whether it falls on the left side or the right side of the aisle, he's going to make the right decision. david: mary, you look at just regulatory policy alone which i think had more to do with the market going up than anything else, 22, getting rid of the 22 regulations for every new -- that's got to be historic. i've never heard of that before. >> no, i agree. i mean, i think what we've already seen, a lot of that has to do with the deregulation. my point is, you know, if he's such a pragmatist, he would not be dismantling nafta. for example, it will destroy the u.s. agriculture exporting machine which has been incredible -- david: destroy's a pretty strong word. maybe hurt. do you really think it'll destroy it for good?

>> no, it'll destroy the relationship with mexico, because mexico will go to brazil and argentina. david: people move all the time and there's apparentlying some f that already going on. >> yes, because he's already said that he is going to take apart nafta. so he's already done damage there. david: go ahead. >> i think that, again, i think that we have a pragmatist in office. he's not an idealogue, and i think that we have a decision maker who's going to make the right decisions for this country from a trade perspective. david: let's move on to entitlement, because it's on speaker paul ryan's agenda for 2018, but there are signs it's not on the agenda for other key players in the gop like the president, for example. to senior fellow maddie can dupler. what does the president want in terms of entitlement reform, maddie? >> well, here's the thing, anyone who is surprised that paul ryan is talking about entitlement reform simply hasn't

been paying attention. paul ryan has been really the only serious entitlement reformer in the modern era. so going into the presidential election last year when you heard the president talk about how he doesn't want to look at social security and medicare, i think it was pretty obvious that congress and the president weren't on the same page there. moving into next year, it's very important we have conservatives staying true to the principles of cutting down the size of government, making sure we have prudent fiscal policy in place but also recognizing the limitations there. and that's that we have a different political environment. we have a republican president who's concerned about those principles but has already expressed he is not as excited about taking on the entitlement reform that republicans are expressing reform for. david: well, maddie, the president has said he's not going to cut medicare and social security and at one point said medicaid as well. but you can do a lot to cut back expenses without cutting the programs themselves.

supposedly, according to a gao report in 2015, medicare alone has $60 billion a year in waste and fraud. $60 billion a year. you can cut back a lot of that waste and fraud by tightening up the system which doesn't necessarily involve congress. you could do it with inspect ors general -- inspectors general and widening the amount of discretion that medicare has as an agency to the correct things that need to be corrected, right? >> sure. and i don't want to downplay how much reform needs to be done and the extent to which that can be done. social security and medicare present tens of trillions of dollars in liabilities over the coming decade. i mean, that's a huge amount of money. so clearly, tinkering around the edges is not a solution for long-term sustainability. but you're right, waste, fraud and abuse are certainly something we should be tackling at the outset. procedural reforms, i think, are very important. you look at things like food stamps, those are always passed

in conjunction with the farm bill which really creates a morass moving forward. david: good point. >> and speeds the political wheels of urban democrats getting onboard, increases in spending in welfare when really if we could separate out policies, take a significant look at those policies and make sure that the right reforms are going into place, that could really yield some results. david: and, mary, then you have medicaid which is totally unsustainable and just grew enormously during the obama administration. i mean, it just -- because of obamacare itself. you talk to any doctor who works in an emergency ward, and he or she will tell you these horror stories about how people use ambulances because their kid has a cold, an ambulance that costs $2,000, $3,000 a trip. there's so much waste and abuse in in medicaid, seems to me thatyou really cracked down on that waste and fraud, you could save billions. >> yeah, i think you make a really good point which is there are thing that is the government can do administratively and

things they have to do through congress. and one avenue here is that donald trump and the administration tries to use more administrative power to sort of rein in some of the spending. i mean, i think that the, you know, the obvious problem here is that once people, american people have an entitlement, it's very hard to take apart. and that's precisely what obama and the democrats knew when they built this thing. >> look, and that's exactly right, obamacare. but i think 2018 is the year of infrastructure and the wall. i think we're going to tie the wall into that. david: but that's growing government, not. >> linking it. >> i understand, but we cut taxes, so we're going to have a lot more federal revenue coming in, like i said earlier. this is a reality developer that's in office, and infrastructure is something he knows very well, so he's going to use that to his advantage. and i think the wall's going to be built. we already have prototypes. and i think it's immigration -- these are the issues that america heard from the president talk a lot on the campaign trail, promises that were made,

and they have to be kept. and so far he's done a good job of that. we were one vote short on obamacare, so i think infrastructure and the wall, 2018. david: he wants to deliver. maddie, thank you very much for coming in, i appreciate it. we'll hear more from our panel coming up. meanwhile, republicans continuing to blast the fbi. will these attacks on the agency play well with voters? we'll talk about that coming up. ♪ ♪ well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that.

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david: the house intel committee issuia subpoena to an associate of senator john mccain. to blake burman now with the latest. it's this guy named david kramer who we just saw a picture of. if he responds to the subpoena, will he plead the fifth, or will he answer the questions? any word on that? >> reporter: you know, david kramer has already appeared before the house intelligence committee, david. this was on december 19th, i believe, so last week. and the subpoena extends, according to byron york of the washington examiner, from that prior testimony from earlier month. as for kramer himself, he's been subpoenaed by the house intelligence committee chairman, devin nuñes. this all stems from november 2016 after the election last year. according to york's reporting, kramer went to london to meet

with christopher steele who you know that name put together, the anti-trump dossier. and according to new york after that, kramer then gave the dossier to senator john mccain. mccain then gave it to the fbi. but, of course, at that point the fbi already had that dossier. now you've got the extra subpoena coming from devin nuñes after kramer has already gone up to capitol hill and spoken with members of the house intelligence committee. as for this dossier, you know where the president stands on this one. he tweeted about it earlier this week calling it a, quote, pile of garbage. david: blake, thank you very much. florida republican congressmen francis rooney and matt gaetz blasting the fbi. take a listen. >> i was so overwhelmed and fearful when i saw the kind of conduct that mr. strock and mr. orr and deputy general mccabe were engaged in, i just

feel for an agency is that has so much influence other americans' lives, they have to be purer than pure. and this is, what i read was very disturbing, and i don't think they should be working there. >> i mean, i don't know if robert mueller was grossly negligent or extremely careless in putting together this particular group of people investigating the president, but the more than people are now aware of that bias. they will not tolerate any attempt to remove or undermine this president. david: to lee speakerman on if the congressman is right to be so concerned. what do you think, lee? >> well, of course he is. you know, david, it may well turn out the only good thing to come out of this ridiculous russia investigation is that it's laying bare real corruption in the fbi and the department of justice. we basically have a j. edgar hoover fbi here between orr, mccabe, baker, strock and senator mccain, part of the

establishment republican cabal that tried to take trump down before he was even nominated for president. so we have a huge problem here. i agree with the congressmen. they heard the testimony, and they were alarmed. and i keep hearing people say, well, gee, you know, strzok has a right to his political views. david: no, this went beyond that. >> first we need to use the military standard which is, yes, you can vote. of course every american's entitled to an opinion, but you have to operate in a nonpartisan manner when it comes to performance of your government duties. david: that's right. no, if he was using the offices of his position at the fbi in order to thwart an election, the popular selection, then that is absolutely very bow tim. the americans saw so much b.s., frankly, in terms of fake news stories that came out, in term

of investigations that went nowhere, there still has been no evidence of collusion despite so many thousands of man hours focused on it. does the american public have the appetite to follow this thing now on the trump dossier? >> well, i think that there's going to be -- there's a lot of white news, and people are not just hearing it. i think the big thing, the next big shoe to drop is going to be whether or not jim jordan and the republicans in the house can get ahold of the fisa application. that was the application that the fbi used to ask for the surveillance on paul paul paul t and other -- david: and, of course, the president himself could release that, correct? the president has the power to release the information that led to that fisa report. >> i think trump is going to have to get involved. going back to whether the base is listening, i mean, i think you need some big event that is going to be material evidence to show people. because the real trump dielards,

yes, they're -- diehards, yes, they're listening. it's been going on for so long, and it seems, comes off as he said/she said. whereas if you get that fisa application, i think that's going to clarify a lot. david: jason, what is clear now is there was a group of people as lee was saying, peter strzok, andy mccabe, the others, who were focused on this trump dossier, a lot of largely discredited information in it, but they saw it as a bombshell, and they were pushing it to everybody who hated trump. not only democrats, but as we saw, to mccain. we know there's been bad blood between john mccain and donald trump since before the election when, of course, donald trump said some things about mccain that mccain didn't like. so they were just feeding this stuff to people who hated trump to try to get them on the warpath. >> it's astonishing to me. and what i call this is clinton cancer. it metastasized into the fbi and doj before trump took office, and now you have the mueller investigation, and these

investigators might as well be michael moore. they hate donald trump. so i think the bias is seen, the voters see the bias. i think this witch hunt, it's time for it to come to an end. we do see evidence of collusion. we see evidence at hillary clinton's campaign and the dnc funded a fake trump dossier that obama took and used for a fisa warrant to then wiretap and surveil the trump team. david: right. it was more than that. lee, i think back to that insurance comment that peter strzok made, if the president does get elected despite all of our knowledge that he won't, we've got this insurance policy. and apparently, the trump dossier was -- and, again, it was like a drug dealer dealing heroin to a drug addict. i mean, these people were eating it up. everybody who hated trump was eating up every page of that dossier no matter how much b.s. was in it. >> well, it's like a movie. i mean, literally you have -- i don't want to call it the deep state, it should be called the deplorable state, and it's a deplorable state of affairs when

you have people in our government manipulating elections. again, that was j. edgar hoover style of intelligence, if you want to call it that. in the thing that needs to be made a lot more -- another thing that needs to be disseminated more widely is that getting a fisa warrant; that is, getting an authorization from the special fisa court to wiretap or surveil, 99% of those requests are approved. david: right. >> 99%. so adding that dossier, and that was just icing on cake. they were going to get the surveillance. they needed a patina, some kind of pretense, and they walked in with that. it was nicely annotated and had dividers and nicely printed, and the judge looked at that and, oh, okay, russia. it makes no sense that president obama, having been warned repeatedly about russian interference in the election, did nothing about it until the election was over, let that go, imposed no major sanctions during the campaign. it wasn't until after the

election. that makes no sense. and you -- what we have got to have is two things. one, get rid of mueller. based on all of this corruption, you know, they say if you see one cockroach, there are a thousand in the wall, you know? mccabe and strzok and basic, that's just the three we know about. no telling how deeply this corruption -- david: i don't know, the question about mueller, by the way, and we've got to wrap now, but the question about mueller is if you believe he should be gotten hid rid of, how -- >> we need a new a.g. anyway because, frankly, it's not doing the job. we need a new a.g., he or she needs to -- david: it is clearly a mess, there's no question. and it also shows the awesome and scary power of an agency. i mean, the fbi is -- [inaudible conversations] >> thousands of wonderful agents but, again, occasionally every decade or so there seems to need to be a house cleaning at the top, and this seems to be one of those moments. lee speakerman, good to see you,

sir. thank you very much. republicans and democrats claiming to have the advantage heading into 2018. next, why both parties could be wrong. and then a new housing analysis that could shock you. that's coming up. plus, i'm going to be back here at 4 p.m. with "after bell" with more of the polls showing the top concern is for americans, hector barreto talks to the us about small business concerns going into 2018. also the latest forecast coming up. ♪ ♪

david: the latest polls show the gop suffering a major deficit with women by 20 points in the nbc/"wall street journal" poll, but democrats struggling with a cash deficit, six times -- the rnc with six times the cash of the dnc. scott martin, great to see you.

thanks for coming in. what do these numbers tell you about what's going to happen in 2018? >> lots of things, but we don't know what's really going to happen because it's what the political environment is like in november, not january, that matters. right now the democrats have a clear advantage. the republicans have been suffering from lack of enthusiasm among their base, partly because until the tax reform act, they didn't see a good reason to keep republicans in kohl control of congress -- in control of congress. they've also been hurt by some of donald trump's actions and rhetoric -- david: is that what's affecting the deficit in the women's vote? >> that's part of it. in 2016 women voted for hillary clinton. the question gets to be how big will that gap. and part of that is will women who don't like republicans see them perhaps as lesser of two evils when they look at the other option? david: particularly after you've seen these sexual harassment scandals in congress which are just as much of that going on with the democratic side if not

more than republicans. >> and, look, that's a big wildcard for this year. the impact of the tax reform legislation is a big wildcard, the impact of obamacare mandate repeal is a wildcard. a lot of things will be changing in the next few months. it won't be closer to summer before we have a good handle. david: mary, the women's vote in particular, what do you think about its direction? is it going to switch by the time the elections come around? >> well, you know, i think it's in secret that lot of women don't like donald trump, and that has a lot to do with just his style. he just is abrasive to women. not all women, but many -- david: the same would be true for john conyers and al franken because of what they've done. >> yeah, i'm not talking about necessarily those particular instances which, in fact, donald trump denies that they happened. but i think more generally, just his style -- david: i see. >> -- the way he comports himself. women don't like that. but i do think in the end sort of what scott was saying, women are just like men and they

really vote their pocketbooks as well. and if the tax reform is successful, if the economy picks up, if, you know, women feel like their families are in a better place come election day, i think that will matter a lot in how -- david: i'm going to get to you, jason, but i just want to check on what mary said. is that true, that if an economy turns around, all these predictions about how one party's favored over the other fall by the wayside? it's all about the economy. >> the economy is the driving force. in 2018. a big part of it, though, will be can donald trump -- and he's got to be the person who does this -- can donald trump connect his tax reform effort and his efforts to reduce the regulatory burden enough to say this is the reason the economy's doing better. david: right. >> if he can make that connection, the republicans will be in better shape than they are today. david: jason, i went back to some polls 11 months before the 2016 election are. they were so far off. it was an embarrassment. i'm sure scott rasmussen would

not be included in that. shouldn't we be a little more skeptical of the polls now because of what happened in 2016? >> the answer is, yes. and, scott, i apologize. >> that's all right. i didn't poll in 2016. [laughter] >> the huffington post had a poll three days out before the election that said hillary clinton would win by 98%. i would disregard polls at this moment in time. we just passed monumental tax reform and tax cuts. when those start to set in and the economy starts to improve, he will increase his women voter pool, and i think voters. i think also just across the board, i think if you look at ronald reagan and his favorability rating after 1980, it was 18% at some point during his term. and he then wiped the map, right? and he lost, i think, one state. david: right. >> i think you could see that happen. i think you could see a donald reagan. [laughter] david: we've got to leaf it at

that. scott, thanks for coming in. signs 2018 could be a rocky one for apple. we'll tell you why coming up. ♪ ♪

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david: tim cook and top apple executivs getting a very big pay raise this year as the company faces class action lawsuits and concerns over iphone x growth. fbn's hillary vaughn has details. so they're getting a big payday for a lot of problems? it doesn't seem to make sense. >> reporter: yeah, david. it looks like apple's tim cook is recovering from his embarrassing pay cut last year with a massive bonus this year. you're right, headed into 2018, a lot of problems ahead. the tech giant gave its head guy a 74% bigger bonus after slashing his pay last year when apple failed to meet its own targeted goals, and iphone sales hit a decline. tim cook takes home a base salary of around $3 million, and adding his share i wards his

total payout tops $120 million for 2017. apple's most expensive iphone ever is facing a lukewarm demand headed into the new year. apple reportedly cut back their iphone x shipment by 30 million units aztec analysts have softinged their expectations for the new device. sales performance show the iphone x didn't boost demand like investors initially anticipated. tech analysts at consumer intelligence research partners found that iphone x sales accounted for just 30% of new iphone sales in their first month. those combined with apple's two other new devices fell short of peak levels reached in 2014 when 91% of sales went towards new iphones. even with three new phones on the shelves, apple saw new devices in the past four years with fewer people opting in to pay for the iphone's newest

generation, the company is also fighting controversy surrounding their older models. apple admitting they've been throttling battery life on older phones, and now at least nine class action lawsuits filed around the country want to see apple in court in california, new york and illinois claim apple's decision to tamper with battery life tricked users into thinking they needed to upgrade to a new phone instead of just replacing the battery. apple is defending their decision to cut back on battery life saying that it actually extends the life of older iphones and helps users use them longer. david? david: i'm not sure i buy it. by the way, i'm not going to sue anybody. i've never sued anybody in my entire life, but both my daughter and my wife bought the new iphone x because their battery life was being drained on their old iphone 6s or whatever they had. so happened in my family as well. hillary, thank you very much. meanwhile, new housing analysis from realtor.com

finding millennials are now the largest group of home buyers. reaction from national association of home builders' ceo jerry howard, jason meister and mary o'grady still on set with me. jerry, have you seen a boom in millennials buying houses? >> yeah, we actually have seen millennials coming into the market since the end of the recession. millennial home ownership has risen by about 4% which is a very significant jump. it's been encouraging. david: but i, you know, my fist -- it's always a mistake to compare yourself, i know. but when i bought my first property, it was a $48,000 apartment in new york. that tells you how long it was, it was 1989, i couldn't get a bank loan. i had to get a $10,000 loan from family members. with that i was barely able to buy into it. i'm glad i did, i still have it. but the point is, is that how are millennials getting loans? nowadays they're talking about a $400,000 house, right? >> well, you're talking about an issue that's facing the country

in a big way not only because of the demand by the millennials, but the impact of the dodd-frank legislation in the last congress -- david: right. >> -- is really making it much more difficult. but once they do get the credit, millennials are proving to be as worthy of that credit as any other segment of the population. so they have a tough hurdle to get through at first, but once they get in there, they're doing a good job of -- david: that's a very earn couraging sign. -- encouraging sign. we hear a lot of disparaging remarks about millennials, but according to what we're finding out now about housing bills, that's not true, right? >> no, they're doing a great job at it. i think the tax reform act is going to bring down their tax burden, help them pay off their student loans faster and bring the millennials into the marketplace. david: it's not only that it's difficult to get a loan if you're a millennial or young person, but they already are dealing with student debt, and

that's a huge overhang in their lives. >> a huge burden on on them. i also want to make a point about millennials and the tax bill with regards to home ownership. they've just risen to about 40% of existing home sales which is the historical average. but what i think is going to be a problem is in the blue states, millennials in the major cities with the deductibles and the deductions, that's going to be a problem for them. so i think you're going to see them them pull back in the blue states and major cities and be more in the rental market. david: mary, do you have any concerns about the fact that we may be getting into another housing bubble, that maybe people are building up too much debt in order to buy into the housing market? >> well, i think for sure the commitment that people said you had to have 20% down going forward, that's winding down. i mean, you have lots of examples of companies that are lending, allowing people to take mortgages with much smaller town payment. but i think the other thing that's really interesting here is there seems to be kind of a surprise that millennials are

getting into the housing market. millennials are now the largest generational group. they are larger than the baby boomers because baby boomers are dying off, and they are maturing. the oldest millennials are now 32 years old. so i think it's very normal that they're getting married, they're having children, they want to own houses. and i think what you're seeing here is that they finally are feeling the confidence in the economy to make these commitments. remember when paul ryan was running as vice president to mitt romney, he made that joke about, you know, are you going to be sitting on your parents' couch in the basement looking at obama's poster and living with your parents for the rest of your life, and that's basically what a lot of millennials had to do when the economy was growing less than 2% a year. now i think they're feeling more confident, they feel like they can take on these adult responsibilities. david: jerry, does that jibe with your experience? >> it sure does. not only that, it'll be comforting to guys like you and i, david, the millennials track

almost identically with previous generation. 75% of them want to own a single-family detached house. they're concerned about schools, they're concerned about parks, about energy efficiency. as they mature, they become exactly what their parents were even though that might scare some of them. [laughter] david: it might, but it is an encouraging sign. some things are great to know, that they continue on generation after generation. >> one point that -- david: very quickly, jerry. go ahead. >> oh, yeah. this is the first time in our cub's history that there's -- country's history that there's not a middle class home ownership tax incentive. and although we supported the tax bill, that's something we're going to watch very closely and see if the millennials still come into the market as readily as they have been -- david: it's going to be an interesting experiment, no doubt. we'll have to wait and see. thank you very much, jerry, good to see you. >> thank you. david: before you google your next vacation, you might want to google monopoly. i'll explain that after this. ♪ ♪

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♪ ♪ david: an arctic blast set to usher in 2018. to fox news meteorologist mick reichmuth -- rick reichmuth. you're in popular demand right now. >> reporter: or unpopular. [laughter] david: well, everybody wants to know it. give it to us.

>> reporter: we're ushering out the season and ushering in january with the cold air. the worst of it is still up towards the north, but a lot of that arctic air is spilling down across the lower 48, and it will continue to throughout the first week of january. probably another 10-12 days where temps are going to be below average and for the next 7-8, really, really below average. you can get the idea here. wind chill feels like 1 in kansas city, a -- 13 in kansas city, not going to last long. we're going to be dealing with bouts of cold air that continue to pull it down across the lower 48 primarily on the eastern side of the rockies and around the northern rockies and anywhere toward the east. that said, florida, you're looking pretty good all the way through the forecast period. here is your current temperatures, -5 in minot. it's incredibly cold out there. there's another system dipping down across parts of the northern plains, that's going to move across the great lakes. notice that strange band across

parts of lake michigan, that is winds converging on the lake and causing that little band of lake effect snow right there in the middle of it. interesting for us meteorologically. take a look at saturday, your high temperature in fargo is -16. that's the actual air temperature. and on sunday, a high temperature in new york city 20 degrees, high temperature fargo, -9. all the way down across the south, 25 in amarillo for a high. little rock, 28. 40 in atlanta, and i think we're going to be talking about a little bit of snow across parts of the south for the last day of the year. david dade you know, when i stepped outside today, it was 14 degrees outside, and i felt great for about five minutes. i felt energetic, and i got fresh air in my lungs, and then suddenly it was the pins and needles. and, of course, we didn't have any wind this morning. i think the wind is going to be coming up over the weekend. we've got to leave it at that.

rick reichmuth, good to see you. over 100 million people will be traveling for the holidays, but "the wall street journal" editorial board criticizing google for stifling travel competition. mary o'grady, your page says google is stacking the deck. but as a libertarian, you don't want the government to come in and sort of intervene to make them less monopolistic, do you? >> well, i don't, no. but i would say step one in a case like this is transparency. a lot of people who are using the google search engine do not realize that google is giving advantages to hotels over these internet companies that basically buy wholesale the hotel rooms and then sell them on their web sites like are expedia -- david: we should mention 60% of everybody that goes on the internet looking for some kind of travel deal goes directly to google, so that's the first stop. >> right. and the way the search engine is

designed, it's giving preference when you search for hotels in houston, for example, to the major hotel chains because it got pressure from them. and what we're saying is if you're doing that, you should be transparent about it. and they're making those other companies that want to wholesale the rooms, they're making them pay a fee that if they had to pay that fee, probably they wouldn't be competitive in marketing. so the idea of the editorial was, number one, transparency. tell people what is going on with the search engine. david: jason, the bottom line is sometimes you're attracted to these deals that you get. you see it pop up -- if you ever go into travel, you immediately get because they have these algorithms, you get all these messages and special deals, 60% off, 80% off a hotel deal when, in fact, it'sing -- it's 80% off a price that is so jacked up that it's not a good deal. >> that's true. but it's the ads that they're

getting that they're paying for, not the searches. so when you put in an organic search for travel, the first thing that comes up is not -- they're not paying to be the first. that's called web optimization. that's hiring the right web decipher to get your thing to come up first. this is the ads. so i think there's a big difference, and we have to identify that. david: and i don't think anybody wants the government more into the internet than they already are. all right, turning now to the crisis in venezuela, signs the country's once-mighty nationalized oil company is actually dying. mary, i wonder how much longer this government can survive. >> well, i think that it'll survive as long as it wants to. people said this about cuba, you know, 20, 30, 40 years ago. david: true. >> you -- they know they're sitting on a lot of oil, they don't care. david: because of all the cronies -- >> yes, and the investment fled. they don't care. they feel like whatever oil is there, they're going to keep it for themselves, they're going to hold the power. and if people starve to death or

if they go into exile, that's perfectly fine. dad david by the way, maduro now has this new cryptocurrency, he's calling it the petro, and he says every one is backed by a barrel of oil. >> yes. and you believe him, don't you, david? david: not at all. >> you just can't wait to rush into venezuela and buy some petro? come on. david: where is bernie sanders in what's happening in -- it's so clear that the socialist policies that have landed venezuela in this desperate state it's in are responsible for the state it's in. where's bernie sanders? has he mentioned anything about the millions of people suffering in venezuela? >> i haven't seen anything from him, and i think it's astonishing, because it is exactly the policies that you just pointed out that have destroyed venezuela. and he puts out these policies and ax policies that would ruin our -- and tax policies that would ruin our country. david: good to see you both. thank you very much. markets closing out the new year

tomorrow, so will the rally continue in the new year? more after this. ♪ . . . .

♪ david: new poll out, what do you think is the top concern for americans going into 2018? i'm going to give you a hint. it is not terror. so what is it? the answer revealed two hours from now on "after the bell" right here on fbn. tomorrow on "cavuto: coast to coast," it is the last day of the trading

year. we'll break down the winners, lootedders and how you can win in the new year right now, trish regan always a winner. trish: i will take that, david. homeowners in high-taxed states are rushing to pay their 2018 property taxes before the new tax bill goes into effect. look at this line in fairfax county, virginia, right through the door. how do you like that? but the irs is warning not everyone can prepay their taxes. we have intel whether or not you are going to qualify. trish regan, welcome to the intelligence report. under the new tax bill, homeowners can only deduct up to $10,000. yes, not the best news of all but here is a thought. maybe high-taxed states like new york and california, maybe they're just going to have to lower their taxes right? then we wouldn't have an issue. maybe that is in the cards. we'll talk about how they might do that. plus brand new satellite