television set, right here on fox news channel. >> it's going to be a good show. it always is. gregg: that's going to do it for us this hour. >> and we'll be back in about an hour. "outnumbered" starts right now. gregg: bye-bye. sandra: moscow responding after president obama struck back over russian meddling in our elections. the u.s. telling 35 russian diplomats and their families they have until noon sunday to leave the country. but the russian response, a sharp departure from what we've seen in the past. this is "outnumbered," i'm sandra smith. here today, kennedy, also from fbn, dagen mcdowell is here, fox news contributor rachel campos duffy and today's #oneluckyguy, professional wrestler, actor, comedian and fox news contributor, tyrus, who's part of our network's new year's eve coverage, by the way. >> yes, ma'am.

sandra: welcome, but we have to remind you as we do all of our one lucky guys, you are outnumbered, dare i say. >> outnumbered, outclassed and outdressed -- dagen: and you said yes ma'am, so you won our hearts. >> home train aring. [laughter] sandra: let's get started. one of the biggest diplomatic confrontations between the u.s. and russia since the cold war. finish russian president vladimir putinen in a big departure from the way he usually responds and existence the advice of his foreign minister saying he won't kick american diplomats out of his country in retaliation for the u.s. telling 35 russian officials to leave the u.s. instead he wants to see how the incoming trump administration responds. meantime, russia's prime minister slamming the white house over its latest move, tweeting, quote: it is regrettable that the obama administration which started out

by restoring our ties is ending its term in an anti-russian agony. rest in peace. caroline shively joins us live from the state department. hey, caroline. >> reporter: hey to you, sandra. president putin said they will not expel anybody. this is an unusual move, one, because of all the tough talk we heard yesterday, but also because in the past when the u.s. has booted russian diplomats, they've kicked ours out. not this time. take a look. although we have the right to retaliate, we will not resort to irresponsible kitchen diplomacy but will base our actions on the policies of the trump administration. the state department notified moscow starting at noon today it would be denied to two russian government-owned compounds in the u.s., one in maryland and one in new york. that deadline passed just two minutes ago. the buildings were used for intelligence gathering, that's in addition to russian hacks before the november election.

>> our bottom line is what russia's been engaged in over the last few months and years is unacceptable. it's outside the norms of diplomatic behavior, and the president is sending a message today to tell them to cut it out. >> reporter: the russian embassy to the u.k. couldn't resist getting a jab in on all of this. president obama expects 35 diplomats in cold war déjà vu, everybody including the american people will be glad to see the last of this hapless administration. you can see the picture of the duck with the word "lame" stamped over it. sean spicer says president-elect trump has no plans to meet with putin in the near future. finish sandra? sandra: caroline shively, thank you for joining us. i want to open this up to the couch now. i mean, going babb to the words of vladimir putin, he does see this as an aim at further weakening the u.s./russia relationship. what do these sanctions look like, and what do you make of our response so far?

>> you also missed the fact that he also unfriended obama on facebook. [laughter] this is -- [laughter] this is laughable. unfortunately for, you know, our president who's done -- and they know he's done -- and these sanctions mean absolutely nothing. when these sanctions came out, he got a dm from probably donald trump saying, don't trip, i got this. [laughter] we'll fix it, you know, after the 20th. and he went, okay, cool. we're good, no, go ahead, enjoy your time. obama's done, his administration's done, his foreign policy's done, so anything he does right now just doesn't mean anything, and it's almost like trying to get the last word in in a conversation you lost. like yo mama, that's what obama did. rachel: he really is mocking obama. obama's out on the golf course in hawaii right now, and by not, by not kicking out or doing the tit for tat, it is laughable. here in the last, this is a guy who obama started by telling

mitt romney that, you know, the '80s are calling, they want their foreign policy back, and now he's ending his last 20 days like this big, you know, foreign policy, you know, cold war warrior. it doesn't make any sense. dagen: we've spent eight years under the obama administration i kowtowing to russia and doing absolutely nothing whether it was ukraine, in syria, this. to quote charles krauthammer, the point of being a superpower is to show your strength and to put another superpower in its place when need be. and if putin respects anything on earth, it is strength, and we have showed nothing but weakness over the last eight years. you know what? we should expose his money and the money of all his borscht buddies because, again, the russian people might not care about corruption, but the world banking system surely would question doing business with these corrupt individuals. sandra: and responding to that

weakness, vladimir putin saying we will not drop to this level of irresponsible diplomacy. kennedy: he's really become a bond villain stroking his himalayan cat with the flat face and the fuzzy fur. [laughter] i think dagen makes a great point which is you don't hit the russian people with sanctions, because as we talked about on the couch yesterday, whether it's north korea or russia, these are bad actors rubbing these countries, and -- running these countries, and they will point to the united states and say they are the ones starving you, it's not us. and vladimir putin is going to point to the ceasefire he just negotiated in syria with syria and turkey, you know? so it looks like they have a foreign policy, and that's all russia wants, is the optic, you know? they don't really care so much about what lies beneath. and i don't think this hodgepodge of sanctions, frankly, gets to the bigger part of the iceberg which is beneath the surface, and i also see it as being a very similar shot at a foe that he's been ineffective

at dealing with the same way he took a shot at israel with the ab tension at the u.n. sandra: and, ty russ, the foreign ministry spokesperson, she launched this attack on facebook saying, quote: the people who have spent eight years in the white house are not an administration, they're a group of foreign policy losers, embittered and short-sighted. today obama officially proved this. >> the fact that it started on facebook, that's the issue, that russia's throwing a party. there was more information about the punch, pie and the party for the families and the diplomats that they weren't kicking out. they just don't care. these sanctions don't mean anything, and now that they know that the boss doesn't care, they're all throwing their shots, and everyone's taking punches at the obama administration because it was ineffective foreign policy for the last, unfortunately, eight years, and now it has no power. so they're literally going --

[laughter] you're going to, you're going to -- whoa, we got that go home? it's the holidays. we're having a party when we get there. and those families after a while will be right back because all this is going to be reversed. kennedy: well, we'll see. but that's the point of the obama administration, is complexifying the situation and boxing in the incoming trump administration not only here in russia with the sanctions because he puts this in donald trump's lap and says, and forces his issue on russia. and he's going to say if rex tillerson is indeed confirmed, what will the two of you do about this new russian problem? same thing with the u.n. this is not reversible. dagen: trump does need to stop downplaying the russia threat, because it is a threat. it's not just an annoyance. we've seen a little bit of change in language where he is going to talk to intelligence officials next week, so that's a positive sign. sandra: all right. well, speaking of timing, they do say timing is everything. so that raises the question why is the obama administration taking action now despite

knowing about russian hacking for months? president obama waiting just three weeks before donald trump is sworn in to issue the sanctions. house homeland security chairman mike mccall releasing a statement saying in part, quote: i am pleased to see the obama administration finally responding to russian meddling, but these actions are long overi due. for many monthses i have urged the administration to respond to the election-related hacks, and for years i have pressed them to stand up to russia. meanwhile, the president-elect's senior adviser, kellyanne conway, wondering if politics played a part. >> i was really disappointed to read in david sang or's new york times piece this evening the allegation or the supposition that perhaps one reason that these sanctions are taking place is to, quote, box in president-elect trump, forcing him to take a position orr otherwise once he takes office. i hope that this isn't motivated by politics even a little bit. sandra: all right. so there you have it. timing, everything.

she's questioning the politics. kennedy: i question the politics as well. let's say the situation were reversed and this is how you can make a direct comparison, would the outcome be the same? that's how you know if it's political or apolitical. if donald trump had won the popular vote, if there had been hacking of the rnc and some damaging e-mails came out and hillary clinton won the electoral vote, would president obama be doing the same thing? would we see sanctions against russia if hillary won and donald trump lost but still won the popular vote? i think the answer is if you're looking at this objectively, it's a resounding no. sandra: and, tyrus, the obama administration didn't just have a report land on their desk overnight. chairman mccaul highlighted he's been urging the president for months to do something about this. >> this goes back to the dysfunction of the democratic party. they never supported obama publicly. when there's issues, republicans rally together, they'll fight publicly, people will see

disagreements. the democratic party never did that during the whole process of this stuff going on. their arrogance that hillary would just beat donald, they didn't want to bring the russian hacking up, they didn't want to bring those things up because they didn't want to take anything away from the dominance they sometimed hillary would have. and then when it -- they assumed hillary would have. sandra: what about that, rachel? if the election outcome had been different and hillary had won, would we be seeing this type of action taken by the administration? rachel: of course we wouldn't. is this going to work in boxing in donald trump? i say the answer is, no. i think donald trump has shown that he wants to handle the russians in a very different way. i don't think that he thinks that they're his friend as a lot of the democrats say it is, that donald trump thinks. i think what it is that donald trump is looking at all of our enemies, china, isis and russia, and he's saying there is a hierarchy of problems here, isis being number one, and perhaps if i'm, i can leverage my relationship with russia to deal

with isis and maybe even china. and so i think it's very smart foreign policy if that's, indeed, what he's doing. and i don't think that what barack obama's doing now is going to box him in. in fact, all it's doing is making barack obama look like a petulant child. sandra: here's donald trump's response: it's time for our country to move on to bigger and better things. nevertheless, in the interest of our country is and its great people, i will meet with leaders of the intelligence community next week in order to be updated on the facts of this situation. he's been skeptical of the intelligence community, but yet he's saying i'm going to sitdowt what's going on. dagen: he needs to stop dismissing the russia threat whether you're talking about hacking or everything that vladimir putin has done on the world stage or has gotten away with in the last eight years. it will help, certainly, i would think, the confirmation process for rex tillerson who he's nominated to be the secretary of state given his relationship with putin. he got the order of friendship from the kremlin. but the timing of what president obama is doing is because he's

left his own party in rubble. they lost not -- in state legislatures they have, the republicans are stronger than they have been since the civil war. so what he's trying to do is send a message to democrats that, hey, i'm not as weak and feckless as republicans have been saying for the last eight years. and, because by taking these stronger actions and, certainly, he's now got to worry about democrats who are siding with israel who are unhappy about what happened at the u.n. kennedy: you bring up a really good point about tillerson, because now that the sanctions have happened, this will be top of mind in the coming weeks when we enter those confirmation hearings and, obviously, that is going to be the most important one as our chief diplomat. and some of the more pointed questions for tillerson are, are you capable of being tough on russia, and if so, how? dagen: he came out against sanctions in the past -- kennedy: well, he's not wrong, but you're right about the billionaires too. go after the oligarchs.

rachel: they were going to be tough against tillerson in those senate hearings either way. kennedy: tillerson has to answer specifically, is he capable of being tough on russia, and if so, how? rachel: he's going to say yes. kennedy: that's not enough. how are you going to do it? how does your personal philosophy inform reaction that you would have against russian aggression. dagen: if trump looks easy on vladimir putin and what's been going on, then it raises the bar for republican senators to get tough with rex tillerson. if he can address it between now and when those confirmation hearings start, it could ease that process. rachel: rex tillerson's job is to serve the american people, and i think that's going to come out. it's not to serve his oil company anymore. sandra: all right. house speaker paul ryan weighing in on the new sanctions, he says it's just part of a foreign policy that makes america look weak to the eyes of the world. is he right? and how mr. trump's america-first foreign policy will look different.

and the president-elect's pick for press secretary saying come january 20th, it will definitely not be business as usual in washington and to expect big changes from day one. can the new administration move that massive mountain of bureaucracy? we debate. ♪ ♪ at godaddy, our goal is to make you look awesome online. let's chat in football terms. this is the goal post. the end zone. the goal of every team. we know you have goals. like getting exposure for your idea or business.

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♪ ♪ kennedy: a glorious day from the couch. donald trump will be sworn in as america's 45th president just three weeks from today. the president-elect made big promises on the campaign trail and has set a hefty agenda for his very first time in public office. some of the issues on the table? obamacare, tax reform and deregulation of american businesses, just to name a few.

an infinitely tall order, but incoming press secretary sean spicer tells fox business that big changes are coming and fast. >> i can tell you that on day one alone, this is going to be an unquestionable demarcation for this administration. change is coming to washington, d.c., and i think it's not just going to be the first hundred days, it's going to be the first, you know, hour, the first day, the first week, the first month, the first hundred days, the first year, the first term. it's not going to stop. i think when you're around donald trump, it's infectious. he wants to continue to succeed and make this country better. kennedy: he needs the cdc, he's so infectious. [laughter] meantime, politico reporting that president obama will huddle with democrats next week to discuss what they can do to save obamacare. sandra: i feel like i need to wash my hands. [laughter] kennedy: you feeling the infectiousness of the incoming administration? [laughter] so let's talk about some of these big changes. i mean, there's some massive things on the horizon.

obamacare is -- >> gone. kennedy: -- collapsing under its own weight. >> it's a wrap. kennedy: some democrats are saying, hey, we will let the american people starve and die. >> if you're three feet tall and you're trying to play in the nb a a, there's not a whole lot you can do, and that's the democratic party right now. [laughter] so republicans are going to do -- move. do what you want, i don't care, because that's the position that the democratic party's in. and the big changes, looking at this and all the information, all the drama with russia and all the changes, i think the big change is, you know, because everyone says the number one thing is isis and the middle east. finish and keeping it real, take history out of it, trump's about now. who would you rather go into the middle east with, france or russia? myself, i would go in with russia because they're going to fight. rachel: that's what we talked about in the last segment, about the hierarchy -- >> and it's going to be what can you do for us now, who's best for us now. and sometimes my enemy is my facebook buddy, and that might

be the situation that the country's going into. so the big changes might be things are going to be different than before because we're doing what's best now. kennedy: you've spent a lot of time on capitol hill, rachel. rachel: i actually don't, i'm in wisconsin, but i will tell you this -- kennedy: you're on the capitol hill of wisconsin -- [laughter] glorious and beautiful this time of year. rachel: i do look at the congressional calendar because i am home in wisconsin with those kids, and i want to know when my husband's coming home, and i am not going to be seeing my husband for three, four, maybe even five months. that's an indication to you of just how much the republicans want to get done in the first, you know, few months when they have the most political capital. i think they're going to get a lot done, and one of the first things he's going to do is roll back these executive orders and especially -- kennedy: where, like epa? dagen: there are nine of them in the labor department alone. rachel: exactly. the things hekking do very easily are those -- he can do very easily are those executive decisions. once we get the economy going,

he's going to get even more political capital because people feel better when the economy's doing better. so i think that's the first thing -- kennedy: the bottom line is the bottom line though. how do you kick tart that economic engine -- kick start that economic engine? sandra: deregulation and tax reform. and it's a very measurable thing as well. kennedy: can you do that quickly? sandra: yeah, oh, are you kidding me? he could walk in the first few days of his term and kick start some of these things, and he probably will. and the stock market's going to react. i mean, look, it's already risen in anticipation of this. he's got to do something or else people are going to get nervous, there's going to be uncertainty in the markets. so i do anticipate big changes as far as that. the other big change i anticipate is more transparency. this administration, the obama administration, promised transparency. we didn't get it. already with the use of social media and do -- and the amount he talks to the press, you're getting that sense we're really going to get an idea how things are going from the president-elect himself because

he takes to the microphone so quickly, and he takes to twitter -- dagen: we got deception from the obama administration whether it was benghazi, bowe bergdahl and the taliban prisoner exchange, the iran nuclear agreement or the ransom exchange and the piles of cash that got shipped. but y'all are focusing on what congress is going to get done and, hopefully, we get tax reform and tax cuts on the corporate side done by july 1. but what about all the career bureaucrats who voted for hillary clinton? the knives are out, and they're firmly entrenched. and they're the ones who are, like, i need to go get my mid-morning snack because i have low blood sugar, so i'm going to go out and grab some nabs, and i'll be back about 12 in time for lunch. so these are people who don't work. they are end trend are. ed. they're not -- entrenched. they're not going anywhere, and it's going to be critical for the trump administration to take on -- kennedy: you don't have the same incentives as you do in the private sector. dagen: well, exactly -- kennedy: when you're a career bureaucrat. dagen: you can get away with

watching pornography on the job and eight years later get caught. what happened at the -- [inaudible conversations] >> the statute of limitations was seven years. [laughter] rachel: he put people in the cabinet who, i think, really threaten those agencies, and number one is betsy devos, people like that who have a very clear focus, and they are not going to let these bureaucrats get in the way of -- kennedy: or unions in betsy's case. yeah. [inaudible conversations] dagen: remember when that pentagon study got leaked? there was $125 billion in savings that auditors found which is the equivalent of a quarter of the pentagon's budget, enough to fund 50 army brigades, that's how much waste potentially could get cut. kennedy: yeah, but you've got servicemen and women whose family members have to buy the body armor because those dollars are -- dagen: the dollars will -- logistics. the logistics bigger than the united parcel service. kennedy: i got your logistics right here. dagen: i bet you do.

kennedy: oh, indeed. we have new reaction to the sanctions president obama slapped on russia over its interference in the election. whether mr. obama's move is overdue and how president-elect trump's foreign policy might differ. plus, many cities across the country beefing up security for new year's eve in the aftermath of the horrific berlin truck attack. this as recent polling shows americans are feeling less safe than they have in recent years. why that is and whether the new safety measures are enough. we will discuss in moments. ♪ ♪ i just want to find a used car without getting ripped off. start at the new carfax.com show me used trucks with one owner. pretty cool. [laughs]

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by the time you head to the bank and wait to get approved for a home loan, that newly listed, mid-century ranch with the garden patio will be gone. or you could push that button. sfx: rocket launching. cockpit sounds and music crescendo. skip the bank, skip the waiting, and go completely online. get the confidence that comes from a secure, qualified mortgage approval in minutes. lift the burden of getting a home loan with rocket mortgage by quicken loans. (whisper) rocket dagen: a fox news alert or, cities across the united states increasing security ahead of new year's eve in the wake of the berlin attack. here in new york they're ready, getting ready for the big celebration, running final tests on the ball as we learn that the city is going to deploy 65

garbage and salt trucks around the perimeter of times square to make it harder for a would-be attacker to barrel through the crowd of some one million people. patrol cars will also be used as so-called blockers. the new measure follows the attack at a christmas market in berlin earlier this month. twelve people were killed when a terrorist used a hijacked truck to plow through the crowd. this is as a recent fox news poll shows over the last several years americans think that they feel less safe than before the 9/11 attacks. tyrus, what do you make of this? because, again, the danger is we, everyone, is always reactive rather than being proactive. we always seem to be responding to some method that the terrorists use. >> right. dagen: and i should point out there was the marseilles, similar attack in the south of france earlier this year over bastille day. >> well, in my former life, i was a bodyguard, and that was

something -- i used to bodyguard for snoop, so we always had to deal with crazy fans. kennedy: i was one of them, tyrus. >> yeah, but you were cool. [laughter] when something new happens, you want to be able to not let that happen, but, i mean, i can't get in a cab 10 feet in new york, so northern to -- i don't know how they're going to drive a truck through. i think people need to carry on their business. go out, enjoy your new year's and think positively. one of the good things about being in new york is we handle things in new york very well. and when things do go wrong, responses are usually pretty good and solid, and the people -- rachel: but you're going to be there. you're going to be on the street, doing man on the street at times square. not above stopa truck if i have to. dagen: like physically -- [laughter] kennedy: yeah, that's right. rachel: i bet he could. >> and also being tall in a crowd is good too. this way. rachel: direct traffic? [laughter]

sandra: if i were you, kennedy, i would stand within a 10-foot -- kennedy: no, we're kicking things off right here on the fox news channel. jesse waters and i are going to be having a great time. tyrus will be on the street looking for action. the nice thing is, dagen, to your point, people are incredibly optimistic, and that's what i love. the spirit of times square in new york city, the crossroads of the year on new year's eve, there is nothing like it on earth. the energy is exquisite. but what's different now as opposed to years past is people are much more vigilant. you know, we will have 7,000 nypd officers deployed throughout the streets. they'll be looking at the crowds, they'll be looking at faces and expressions and looking for odd behavior. but people are also doing the same thing, and one of the slogans you see constantly here in new york is if you see something, say something, and i think people employ that more than ever on new year's eve where everyone's kind of sizing each other up. fortunately, the good people,

the revelers, the party people outnumber the crazies. dagen: and you know what? sorry, rachel -- rachel: it's okay. dagen: sandra, in the last little more than a year we had the paris terror attack, we had san bernardino, we had brussels. here in the united states it's been the orlando club shooting. there was, there was a bombing on 23rd or street right down the street from my apartment and also the bombs going off in new jersey, so it's not surprising that people don't feel safe. sandra: yeah -- dagen: on a day-to-day basis. sandra: this isn't just new york city, new orleans is taking special preparations, things they've never done before. mary landrieu said that we are going to have individuals with tactical outfits on. it's the first time they're ever doing that in the city. but they're pointing out that it's a very fine line between protecting and securing the city and turning it into a militarized zone. and you think about that, because you think about you're trying to have fun in new york city, that's going to be a sight to be --

kennedy: that's why the cops here are so good, because they do know how to blend in. i don't think the nypd, i don't think these guys -- and women, of course -- i don't think they're heavy-handed -- sandra: by the way, what are all these crazy things out our window? kennedy: those are cranes. [laughter] sandra: for new year's eve. rachel: i think times square's going to be very safe. i worry sometimes about soft targets in the midwest, places we don't expect like the stabbing in st. cloud that also happened. that really strikes fear in middle america. sandra: all right. we are getting reports from the hill that senator john mccain is scheduling a january hearing to discuss cyber threats to the u.s., and he's calling national intelligence director james clapper to testify. this as we are getting new reaction to the white house leveling sanctions against russia for interfering in our presidential election. house speaker paul ryan saying it was about time that president obama took action and that the long delay is a perfect capstone to a foreign policy which has left america in a more dangerous position. the speak or saying in a

statement, quote: while today's action by the administration is overdue, it is an appropriate way to end eight years of failed policy with russia. and it serves as a prime example of this administration's ineffective foreign policy that has left america weaker in the eyes of the world. it's a scary thing to think about that as we do hand off and we look to have this peaceful transition of power in our white house, what position we're currently in. tyrus? >> well, the word "peaceful," i think, is subjective. i think we're having a very good situation -- like, i supported obama on a lot of things, and the one thing i didn't like was that the democratic party was very dysfunctional, very undermines and very back-stabbing as we saw, although i completely condemn, you know, the hacking of the e-mails and all that kind of stuff. but we saw that looking at the way that they ran their election. hillary's people attacked bernie sanders, they attacked each

other, they were going after each other left and right, they were sticking knifes in everyone's back they could, and the american people saw that. that's, i guess, the good thing that came out of that. but with the way things are going now not just donald trump, but the team he's putting together is completely different. and the fact that the senate, the house will all be together -- sandra: but do you think that president obama's policies have left us less safe or having a weaker stance in the world? >> yes and no. yes in the sense that his picking of his team was horrible. it was a lot of back happed deals to a-- backhanded deals to appease hillary for losing out in the election. and when you make deals with enemies, nothing, you know, people that you fought against, went after each other -- and let's remember, when he ran against her, it was vicious. and, you know, they talked about the trump stuff with her. she was doing the same thing with him. dagen: blatantly racist, some of the stuff that bill and hillary pulled. >> and those things don't go away. and it was only towards the end

when obama felt his own urgency, wait, my legacy, did he try to jump in and, oh, i'm going to pop lock hillary to the white house, and it didn't work. if he wasn't afraid of his own issues, he wouldn't have gotten involved because there was no support in the party. rachel: i think there's no question that our country is less safe than when it was handed over to barack obama, i mean, back in 2008. and i think that donald trump is looking at this, and i think he's saying, look, this leading from behind policy that barack obama had doesn't work. -- didn't work. i think he's looking back to the '80s, something barack obama said we shouldn't do, and i think he's seeing peace through strength is probably the best option. and i think if you look at the team he's putting together, that's exactly what he's going to do. and the talk he's giving about strengthening our military and putting more money into that, i think he's trying to be more deterrent and build peace through strength and through power. kennedy: the fact that this administration is still spying on americans, and there is so

much warrantless spying, it just goes to show that having an increased surveillance state, and this administration has increased the surveillance state. it doesn't make you more safe. >> but i think you have to pass the blame all the way around. we had eight years of obstruction, so the republican party's hands are dirty too. when you outright say we're not going to work with somebody period, nothing gets done, the country suffers. so it was on both sides. kennedy: no, they actually had the house and senate, and that's how they passed obamacare. rachel: that's right. kennedy: there was plenty of time when you had one-party rule in d.c -- >> no, i get that, but i'm saying -- dagen: and that's why president obama did an end-around with all the executive orders and the more than 600 rules, economically significant rules that upended vast parts of our economy. kennedy: too much government. sandra: all right. gotta move on. president obama facing a scathing critique by the politics editor of the left-leaning huffington post. he says mr. obama is pretty much

leaving his party in shambles, at least in significantly worse shape than when he first took office. we've got some hard numbers. we'll look at them and we will debate. he has a sharp wit, a winning smile, and no chance of getting an athletic scholarship. and that is why you invest. the best returns aren't just measured in dollars.

♪ ♪ rau ray harsh words about president obama's legacy from the senior politics editor of the left-leaning huffington post. sam signs saying despite the president's promise of hope and change, he actually left his party worse off than when he took office. watch. >> you look at the destruction of the democratic party under barack obama's leadership, and you have to wonder, you know, what was the political, what were the electoral benefits that he gave to the party? he leaves them in a much worse position. the states are decimated, they've lost control of the house and the senate, the governorships are questions mated. so, yeah, maybe he is, obviously, a gifted candidate.

he did win election twice by substantial margins, but, you know, his legacy as a politician is a bit muddied by all that. rachel: and stein's right. since president obama was sworn in, democrats have lost 13 governorships, 63 house members and 9 senate seats. now, kennedy, stein is like a big cheerleader for obama. this is big news, that he's coming out and saying this about his friend and president. kennedy: but you're absolutely right. i mean, obama won for himself. he won two terms, but he could not deliver the white house to hillary clinton. despite his best protestations to the democratic base, going out on the stump for her -- michelle obama did the same thing, and they were incapable of convincing enough people to get out and vote for hillary clinton in key states, one of which you hiv in. rachel: right. kennedy: wisconsin. and, yeah, you look at this number, and it's pretty much overwelling. -- overwhelming. it wasn't long before the

election the democrats were confidently talking about flipping red states to become blue, you know? they were also talking about taking the house and the senate. they were very confident about the senate, but at one point they thought they were going to have majorities in both houses. rachel: dagen, it isn't just that they lost states, but if you take a tate like wisconsin, they have the governorship, they have the assembly, the state senate, i mean, stein's also talking about the decimation at the state and very local levels. dagen: a net loss for the democrats, the grand total, 1,042 state and federal democratic posts. i said this earlier, the republicans increased their control in state legislatures, leaving democrats with their lowest levels since the civil war. it's the governorships, it's every area of leadership across the country. i think that they need to go out, the democrats, and find a vaccine against arrogance and delusion. kennedy: and -- [inaudible] while they're at it. dagen: hillary clinton didn't go

to wisconsin, and she was talking about flipping red states. again, they live in some sort of strange fantasy land that is unique to washington -- sandra: and out the door with those 1,042 posts, out the door went president obama's legacy. remember, it was just in september he said his legacy's on the ballot before the election took place two months later, as we know how that turned out. kennedy: can you blame obama for everything? >> no, and i don't. i blame, first of all, the -- change happens. sandra: yeah. >> and the democratic party became selfish elitists, and they lost touch with people. obama didn't. obama was like a rock and roll star. people liked him, they thought he had change, great charisma. he was a leader, he was personally a role model, he was all the things that you look for in a president. his party was not, and his party, while they publicly -- dagen: you mean nancy pelosi -- >> okay, nancy pelosi -- [laughter] is it soup time? she's lost. and the fact that -- and that was my whole point. i'm saying it, catch her on a

wednesday, ask her what day it is. [laughter] [inaudible conversations] rachel: sunday, fun day -- barack obama was passing policies that made no sense in middle america, that they were caught on the local level at governorships, at statehouses, they were caught defending the indefensible whether it was bathrooms or obamacare. that's why they lost, and it really was obama at the federal level pushing these policies and now these people on the state level had to defend them. >> i think he had to make deals and decisions for support in his own party that he didn't want to. i think that he was stuck in a tough position. the republican party, they -- listen, we're going to ride on this, and we're going to stay in -- this is our, this is our plan. we're not deviating. everything you do, if we disagree, we're going to state it. and the american people respected the fight and the resolve of the republican party. they're working for us, where the democrats were doing whatever was cool or sexy or

wanted to be cool with hollywood. here's the thing, it's about reality tv now. i've been on, like, six tv shows, it don't matter anymore, being a movie star doesn't matter anymore. you don't have all these great big stars with influence. you have flashes in the pan who think they're famous and start pushing their views, and america's like, what? who are you? you're a comedian? kennedy: lena dunham, yeah, not funny, huh? >> not at all. dagen: i think people need to start breaking bread with people who don't agree with them. that's president obama's problem. he would always say let me be clear which is the equivalent of what my grandmother used to say. she always thought she was right and everyone else was wrong, and when you disagreed with her, she would talk to you like you were a total class a moron because you didn't agree with her. that is part of the problem, they don't think there's any other world outside of the little one that they live in, and they lost. rachel: well, that's exactly what bristol palin's talking

about right now, calling out hollywood hi pock ru city after some celebrities reportedly declined invitations to perform at donald trump's inauguration. she says under different circumstances stars would jump at the chance to perform at a trump event. is she right? ♪ ♪ g new cars.

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♪ ♪ kennedy: we are back and better than ever, baby. bristol palin, daughter of sarah palin, taking on hollywood saying on her blog that celebs who reportedly refused to perform at the august ration are

sissies and that, quote: if donald trump were still just a regular old billionaire and threw a party at trump tower in new york city, celebrities would be lined up out the door, and the most famous artists in the world would be pining for a chance to perform. kiss, celinety on, elton john, garth brooks, ice t, andrea bocelli and kanye west all reportedly turned down the president-elect. oh, no. yet other liberal stars like jennifer lopez, beyonce and usher, they have performed at or attended events connected to dictators around the world. [laughter] for big paychecks, of course. dagen: stop me! kennedy: big name liberals reportedly planning alternative events on inauguration day to distract from it. tyrus, how important are celebrities to celebrating an incoming administration? >> well, for one, i've wrestled for a dictator or two. [laughter] kennedy: you and i both. >> they pay. dagen: for a dictator or wrestled a dictator?

>> no, you don't wrestle a dictator and live to tell about it because you have to let them win. let's keep it real, how many people are going do watch? nobody, we don't care. everybody wants to see the staredown between trump and the whisper, it's my house now, get out. and obama, i changed the locks. nobody cares about the performance at the indiana august ration. i never have -- inauguration. if you asked me who did it last time, i couldn't tell you. rachel: beyonce. [inaudible conversations] >> she probably lip synced. rachel: she looked very, very cold. >> you did have the deplorables, the trumpers have a talent show, you know what i'm saying? host it. let the american people -- rachel: i'm okay if it's an all kid rock -- he'd do it. kennedy: you know who seems not to care at all? president-elect donald trump who tweeted: the so-called a-list celebrities are all wanting tix to the inauguration, but look

what they did for hillary, nothing. i want the people. sandra: that's what you go with, you know? kennedy: what if you have a hologram of some of the legendary musicians -- >> like tupac? kennedy: no, just this year, prince, david bowie, merle haggard -- >> too soon. i'd go with pac. tupac and elvis -- [laughter] rachel: that'd be nice. kennedy: could you imagine a duet? >> love me tender. ♪ keep your head up. rachel: it is crazy they'll perform for people who commit human rights abuses, but they won't celebrate our president by offering their voice. dagen: all these celebrities are losers who are so insecure, they only care about other celebrities liking them. rachel: it's high school. dagen: we've talked about this, they're always bitter. do you ever talk to anybody who's even remotely famous at a party? they're always looking right over your shoulder looking for somebody better than you to talk

to because they're almost embarrassed. if you're not as famous as they are or more famous -- kennedy: i would actually be surprised if some of these people performed and, you know, i don't think that we should be shocked that liberal performers like elton john tweeted, like, go get country stars or ted nugent, and he used a lot of -- >> but who wants elton john? i don't want to hear elton john. he's a foreigner anyway, get out. we're keeping it americana. we can be rude now. the p.c. era's over, so watch your mouth the next time -- sandra: oh, here he comes. >> yeah, just let it go. don't care. don't sing, don't do it. most of them are mad because they didn't run. and you know what's the funny thing about it? if these liberals run, they'll be republicans. dagen: there were all kinds of celebrities at the dnc, and you know where you got 'em? bradley cooper was there, you couldn't get a hotter man on the planet. >> you think bradley cooper's hot? kennedy: great big surprises coming up on fox news channel's

all-american new year. i'm going to be this, and so will our one lucky guy. we're going to give you a few hints about exactly what's happening, and that is coming up. ♪ so tonight i'm going to party like it's 1999 ♪ i'm so frustrated. i just want to find a used car without getting ripped off. you could start your search at the all-new carfax.com that might help. show me the carfax. now the car you want and the history you need are easy to find. show me used trucks with one owner. pretty cool. [laughs] ah... ahem... show me the carfax. start your used car search and get free carfax reports at the all-new carfax.com.

♪ ♪ yeah, it's a party in the usa ♪ sandra: who doesn't like miley? dagen: i like her 'cuz she's kind da dirty. [laughter] sandra: it's going to be a party for sure, and it's the only place to be on new year's eve, fox news channel's all-american new year's eve, kennedy herself will bring us the festivities from times square along with one of our one lucky guys, jest --

jesse waters as the beautiful ball drops in times square. all right. and our one lucky guy, tyrus, will also be a part of all that in what capacity will you be in times square celebrating? >> i will be in the mix with a microphone amongst the peoples getting new year's resolutions that may or may not come through and maybe trying to find someone -- maybe hook up, get a trump supporter and a hillary supporter to hug for new year's. kennedy: that's beautiful, tyrus. >> or just clunk their heads together, whatever. rachel: a smooch at the midnight hour. >> that's not for me. sandra: tyrus, do you have a new year's resolution? >> yeah. kennedy: okay. [laughter] >> it's like a birthday wish. if you tell it, it won't come through. sandra: got it. kennedy, we're looking forward to watching you out there. kennedy: i can't wait. kicking it off 8 p.m. eastern with jesse waters, it's going to be an amazing night. sandra: wow, way to sell it. [laughter] thanks to tyrus and a happy,

happy, healthy new year to everybody, and good to have you on the coach today as well, rachel and dagen. we are back on tv monday at noon eastern time. join us, we'll be there. "happening now" starts right now.