Transcripts For CNBC The Kudlow Report 20140131

Good evening, everyone. Im larry kudlow. This is the kudlow report. Were live here at 7 00 p. M. Eastern and 4 00 p. M. Pacific. Stocks had a good rebound today. S p 500 rose 20. The u. S. Economy about 3. 2 in the fourth quarter. About 3. 5 for the second half of the year. Its got some momentum. Lets see if our guests have any momentum. Lets get right to the big market panel. Good news is good news. Joining me, cnbc contributor dan greenhouse, global strategist. Jeff killberg here in new york, kenny with the neil securities. I cant wait to get to him. And cnbcs own seema mody. Seema, before i go to my pal for his throw away pessimistic card, can you tell me what happened today . Clearly a lot of i htraders ready to buy the dip. It was one of the sectors hit hard by the recent selloff. Second is better than expected earnings from the likes of facebook and google. Within health care, its pharmaceutical companies. On the flip side, the u. S. Dollar continues to see the flight to safety. Absolutely. So bullish. Kenny, did i read that right . You heard seema, the dollar is surging. The economy is rising. Profits are growing. Now, im not timing this. Right. Im just saying this is good news and good news is good news. Good news is good news. But listen, lets not forget, the market has had this great run, right . In anticipation of what this good news was going to be. And in fact now youre getting some good news but yet the market is not necessarily got this real strong conviction that it wants to move higher, right . So i think what youre going to see is the churning. I agree with you. The economy has to catch up with prices and i think thats what youre seeing now. Weve been stuck in this very tight range and were going to continue to be so until we work it through. This is great stuff. Dan greenhouse, this is another thing i disagree with. Im looking at todays close. S p at 1794. Im going to put 120 a share as earnings for the next 12 months. That gives me a multiple of 15 times. That gives me a forward earnings deal of 6. 7 compared to a bond thats only 5 vaa. I think the valuations are great. I think the improvement in the economy comes as a bit of surprise. People were losing faith in that. Whats your take on this . Should we all just z out now and wait for it to happen . Far be it for me to agree with any other guests that im on with. But with respect to evaluation, i think youre somewhat right. I think clearly our view is that stocks are not super unattractive but then neither are they super attractive. It corrected what we thought was a somewhat attractive market. The question, again, Going Forward is not whether stocks are attractive. They can go down when they are and can go up when they are not. The question is, what are the fundamental drivers Going Forward and to kennys point weve gotten good news and id like to see more good news, which is ultimately higher prices. Jeff, were Getting Better news. I agree, we have to see the jobs and the jobs numbers are going to surprise on the upside when they come out because last months jobs numbers were flukey. Whats your take on this story . Your optimism is infectious. Hes a great american. But listen to him. You know, my dog just had a birthday today. Lets be cautious going into the jobless claims. They uptick a little bit. Technically we saw this momentum that seema was talking about. I think now we have a technical resistance in the s p, about 1805 and then its a sigh of relief. It was very encouraging to see. I want you two to go at it. You went to notre dame. You played football. Youve got some real backbone and playing power. I want you to show mr. Paul carey what youre made of. You know, you probably had some sick customers but i think you have to realize, yes, a pull back here is 4 . A lot of folks were talking about 4, 5 . But to your defense, i cant believe im making the argument for you, were seeing the s p down 3 . Up 26 . So people are still leery and kenny, youre wrong. There you go. Listen, i dont suspect that youre going to have this crash. Im not calling for a 10 or 15 crash. Not at all. I think 5 or 8 . If we test at 1765ish, because weve tested it two or three times in the last week, its a very good sign. Its going to give a place for stocks to churn a little bit. 1765 is the old multiyear alltime high. Weve talked about tech before. Is that the buzz now . Tech is posting one of the highest Earnings Growth rates for this quarter. So, yes. But i think the emerging market story is in focus, especially the impact that the volatility in the emerging market will have on multinationals. I totally agree with that. Especially with a stronger dollar. You have to think about how it makes these companys products and Services Less competitive overseas. But also lets remember real quick that to the extent that this remains contained, the em story, that is, this is ultimately going to be a blip in the radar. If this doesnt spread to china, russia, to brazil, then this is a couple of peripheral i think we see how susceptible the market was to the em stories. We sold off 4 . This is the achilles heel to my optimism. Brazil is a mess. They dont know what the h lech ell to do. Turkey is imploding before our eyes. Now, this is i admit, its the achilles heel. Inflation problems and that spells emerging market recession, dan greenhaus. This is the part that bothers me the most. Larry, let me ask you, what percentage of the s p 500 profits are generated in turkey . Well, i dont know. I dont either but the answer is very little. Theres contagion going on in the emerging markets and you have to aggravate this. Half of the profits come from overseas. I know europe is a bigger krcch but im going to say not less than 10 . Particularly in a commodity boom, which we dont have right now. People pick up the paper, whether its the wall street journal and realize and these countries are not doing well. They are moving away from market capitalism. Thats what bothers me, dan. On that point and only that point i will acknowledge an agreement with ken polocari. Let me quickly, before jeff jumps in, make a jim cramer point. Jims been on tv for the last two or three days making a really important point, which is that weve had problems in turkey before. Weve had problems in venezuela before. The philippines, thailand, russia. And ultimately when push comes to shove, to the extent that this does not impact earnings for the u. S. Economy, the ultimate path for stocks should be higher. If it passes, youre absolutely right. Go ahead, ken. It will pass. But think about this. Were having all of these problems and at the same time that the fed is starting to what is going to happen in the short term. What are the concerns and headwinds and as seema said it and as weve all said it, the emerging market story can it be that contagion . I want to talk about this subject, about the fed, and they are buying fewer bonds. The qe is going to be done by the summer or early autumn. The end of the year. The end of the year. Fine. Handwriting is on the wall. Heres my point, and i want everybody to jump in. There is so much bloody money around. Theres so many excess reserves laying idle at the Federal Reserve. They get a 25 basis point. That a small tapering theres 2. 4 trillion excess reserve. Monthly withdraws, they are not even withdraws. They are cutbacks. They cant possibly affect the liquidity. It doesnt get affected until the fed starts selling bonds and raising the fed funds. Thats right. Thats got to be a ways away. Im not worried about that. Its about the perception that happens to emerging markets. I think it was the president of turkey today turned around and made the comment about what do you mean the fed is not worried about the emerging markets . They were happy when they were cutting rates and bumping all of the money and all of the money went to the emerging markets and now theyve got to pull out. So they are themselves getting nervous. Seema, ken is backing off already. Its Interest Rates that really scares the streets and thats why there is that negative perception when it comes to rates from the small the emerging countries . Or even our rates rising here in the u. S. Really . And the effect of tapering taking place. Hang on a second. All right. Good point. What if median and longterm environment i think right now the u. S. Bond market is way too expensive. The tenyear treasury at 270 is way over valued. The thing should go back to 3. The economy is decent and its on its way to 4 . This is an important point. I would be a seller of bonds and a seller of emerging markets. Larry, i love you but i want to push back. Push back. The fed, in theory, thought if they began a taper what is going to happen . The asset class that they pumped up, equities will come back and force people to naturally buy treasuries because they have been the biggest buyer of treasuries. Bingo. So this has been a wonderful proof in the pudding so they are tinkled pink right now. Nothing to do with it. They are not losing the long end of the curve. Exactly. They never had the long end of the curve. Im going to challenge. Look, the economy has the long end of the curve. Thats correct. That is the deal. The Federal Reserve is a not so innocent bystander. What im saying to you is this. Im go to dan greenhaus, mr. Famous economist. If in fact the economy continues to grow above 3 and youve got about a 1. 5 inflation rate, so lets call that 4. 5 money gdp, thats when your tenure has gone. Its gone to 4, 4. 5 . Whether the fed likes it or not, the market is going to take it there. This is a little respite. This is a respite. You want to get out of the bonds, sell them right now. Listen, in a Perfect World i totally agree with you and generally speaking i totally agree with you. The one hiccup in that is that were not in a normalized environment. The threat is not returning to higher growth, higher inflation but the inflation upon the completion of the feds qe program will take hold again and Interest Rates are down, not up. I dont agree with that, but no. Totally wrong. Ken polcari, when are you going to buy . Last word . I would buy down the weakness. I think its coming. Jeff, what would you buy . Im waiting for the treasuries to be range bound but i think were buying at 1730. A little more pessimistic. I am. Theres volatility. The vix ended up uneven. Thats a sign. I did my best, folks. Dan greenhaus, ken polcari, seema mody, jeff kilburg will join us later. Look at this mess because of two inches of snow. Everybody is blaming the city because of the total lack of preparation. Well go to hot lan ta next. And barber is working with a group but my friend opposes that. They will both make their case. As always, dont forget, free market capitalism is the best path to prosperity. I think Immigration Reform would add to the gdp and probably create a thousand new businesses in this country. Im kudlow. Well be right back. [ tires screech ] [ car alarm chirps ] [ male announcer ] we dont just certify our preowned vehicles. We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event thh february 28th. Preowned sales event nwas the most watchedage otelevision event ever. S so, whats next . The upcoming winter games from sochi. Where every second of nbc universals coverage will be available on every device. On tv, online or streaming on the nbc sports live extra app. Beginning february 6th, experience the winter games everywhere. Welcome to whats next. Comcast nbcuniversal to normal after a surprise snow caused huge traffic jams, left people stranded for hours. Nbc news tom costello is live for us. Good evening, tom. Reporter hey, larry, theyve been playing your theme song down here, ice, ice baby. We had 2,000 abandoned cars all over the city. As you know, tuesday night into wednesday we had tens of thousands of motorists stuck on the neighboring streets and highways. Buses picked them up and parents couldnt get to them either. And there is a thin layer of ice. Today it was the focus was on what city and state officials did or did not do. And in particular, the governor today made a deal essentially said he delivered a mea culpa. He apologized and said the buck stops here with me. The state did not prepare adequately. Saying that they had given them ee re erroneous information. Again they were warned at 3 30 in the morning for atlanta, what we learned today was that the governor either didnt notice or pay it attention, wasnt listening to any of those warnings until ten hours after the first one went out and his Emergency Operations manager and he were asleep on early Tuesday Morning as the warnings were growing more and more dire. So today the question was, why did this government plan to fail, so far behind the eight ball and then take so long to recover. They promised that they were going to do things better next time but made the same promises three years ago after the ice storm of 2011 and a lot of people here dont believe them anymore. Back to you. Who are the local papers blaming . What are the editorial pages saying . What is the constitution saying . There is an editorial in the journal constitution which has a picture of or a cartoon of both the mayor and governor making snow angels in the snow. Essentially accusing both of them of being totally distracted and out of it and not paying attention to the needs of the constituents. Great report. Tom costello, nbc news, thank you ever so much. Now, seema mody is going to join us. Shes got the latest profit reports from google and amazon. Remember, the report from facebook helped turn this whole market around. Is there going to be more good news this evening . Seema, next up on kudlow. This was the hardest decision ive ever had to make. Jim, i adore the pool at your hotel. Anna, your hotels have wondrous waffle bars. Ryan, your hotels robes are fabulous. I have 12 of them 12 . Shhhh, im worth it. What im trying to say is, its so hard to pick just one of you, so im choosing all of you with hotels. Com. A Loyalty Program that requires no loyalty. Earn free nights worldwide with hotels. Com lifes an adventure and it always has been. But your erectile dysfunction it could be a question of blood flow. 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Ask your doctor about cialis for daily use and a 30tablet free trial. Seem ma muscular dystrophy dee has the results from amazon. Its down 5 after hours. Earnings coming in at 51 cents a share. Thats a big miss. 15 shorts short of estimates. Higher than last year but amazon Sales Guidance also disappointing the street. Now lets move on to google. The consensus estimate was 12. 20. Sales of nearly 17 billion came ahead of the estimate despite a drop in online ads. Shares for google are up rebounding right when the numbers came out. Larry . The obvious question for me is why. You said drop when they came out because they were sure and then bounce back . Has anybody got a theory . Were still getting a readthrough from the conference. Well get the answer. Maybe theres information that is very positive. Yes, absolutely. Seema mody, thank you. We have former governor mississippi Haley Barbour and bill crystal who thinks that republicans should steer clear. They are going to go at it next on the kudlow report. Fifteen minutes could save you fifteen percent or more on car insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Nwas the most watchedage otelevision event ever. S so, whats next . The upcoming winter games from sochi. Where every second of nbc universals coverage will be available on every device. On tv, online or streaming on the nbc sports live extra app. Beginning february 6th, experience the winter games everywhere. Welcome to whats next. Comcast nbcuniversal first up, president obama called for reform during the state of the Union Address and republicans are at the gop retreat including things like Border Security measures, entry exit and path to legal status. If we go back to the day after the 2012 election, i said its time for the congress and the president to deal with this very important issue. Its been this problem has been around for at least the last 15 years and its been turned into a political football. I think its unfair. So i think its time to deal with it. But how we deal with it is going to be critically important. All right. How we deal with it. But while Speaker Boehner says now is the time to tackle immigration policy, not all republicans agree this critical Election Year is the time to take it on. So lets talk. Great friend, bill crystal, founder and editor of the Weekly Standard and Haley Barbour, former governor from mississippi and head of the Republican National committee. I heard that youre against Immigration Reform. I was stunned at this news. You, a pro growth reagan guy who understands the beauty of coalition. I was absolutely stunned. More than that, i was wounded. So i must begin with you. Why are you opposed to this . I know its a shock, larry. Its hard opposing you and haley and Mike Bloomberg and murdoch and longterm unemployment. Im not against Immigration Reform. Im against the house moving with Immigration Reform this year in 2014 with a bad senate bill sitting there ready to sabotage or i think the house members in conference. I think youll get a much better bill next year as Republican House and senate. Haley, i think theres some wisdom there in what hes saying. Certainly theres pro growth but the low hanging fruit. I call it the brainian visas. Lets let those stay here and work, the electrical engineers, lets let them do that. Lets let the kids of the undocumented families stay here and go to what schools they want to go to. To me, that would be reach out. It would also be very pro growth in the american economy. Well, you know, bill, i am in favor of Immigration Reform as a matter of policy. Youve mentioned some of the things that are just so obvious. I dont know why anybody would be against them. And i think boehner and the republicans in the house are wise that they are going to take Immigration Reform up, not as one bill but as a number of bills and they outline the sum and substance of that package. Two things jump out. First, its far better than the senate bill. The senate bill spent a lot of money on Board Security and says if it doesnt work well have a commission. The house bill says were going to secure the border and thats going to trigger some of the reforms. And i think that is a very important thing. The American People look, i was in the Ronald Reagan white house of 1986 when we passed the last Immigration Reform bill. They said were going to secure the border and we didnt. And this time they need to know for certain were going to secure the border. The other thing is, while oim comfortable with a path to citizenship if the requirements are rigorous and stringent enough, the house bill doesnt do that. It provides legalization of people that are here. Then well secure the border and then well decide where to go from there as i read the blueprint. Wait. Look. Haley says well secure the border. I think if the house were the only body in congress i would certainly support it. The fact is they are not going to end up with the bill and voters and senate democrats, and then president obama gets to enforce the bill. I. E. , he gets to enforce the part of the bill that he doesnt like. I say, lets wait. As Speaker Boehner says its been a problem. Its such an obvious thing. We need electrical engineers, by the way. Only 58 of americans are working in this country. Most of them are retiring or they have left the labor force altogether. Were going to need some people at the lower wages. Putting that aside, according to ryan, according to paul ryan, who was on tv yesterday, he really picked up on haleys point. Youre not going to get any legality regarding these undocumented workers unless you can prove beyond a doubt that the border has been secured. Its not the case. The two are tied together. They are not. They get legalized immediately and then what the House Republicans rid diiculously are suggesting, im against that. Its unfair to em poo. You tell them they are legalized and then they lose their legal status. Again, they are jumping through hoops and twisting themselves into contorted knots to get something. Why go through all of this . Just wait a year. Worst case, wait three years and get real good Immigration Reform. Go ahead, hcaley. The reason is, the worst thing that we could have is the status quo and the American People i dont agree with that. The American People want to make sure that the border is secure and that we enforce our visas. Remember, 40 of people here illegally didnt enter illegally across the border. They came on a visa and overstayed it. So we cant do that and theres no reason not to and youre not going to get that passed. Were not going to send them home. So i think there is a misreading here of what the house blueprint says. I dont think they are going to say were going to legalize people and bring them out of the shadows and then if the border doesnt get secure were going to take that away. I think what they are saying is, if the border is insecure after a number of years, were not going any further. Were not going to let people get green cards after ten years, which, of course, is what the senate bill says. So people start to walk out of the shadows and then someone in the white house says, stop, you cant move further anymore because the democrats arent doing their job and its just i am practical. I think you misunderstood what i said. They would let people be legalized but wont go further than that until the border is secure. Let me ask bill kristol an important question, a political question. There is an argument that the immigrants are to the left, that they are welfarists, that he this like big government, that they like obamacare, that polls show they will vote heavily democratic. Now, is that part of your calculation . Do you buy into that political logic . No, because haley is right. None of the bills make citizens from ten years. I buy into the logic that you cant get a good deal with the democratic president. You cant trust the president to enforce the bill. You can do a much better bill three years from now. I think theres a serious argument with high unemployment, high longterm unemployment. This bill increases legalization. It doubles it. Is that a wise thing to do at this point . Well, i think it is when you consider that 70 of the Agricultural Workers in california are illegal immigrants. I mean, thats why they are raising some numbers here to try to get us in balance. But i do want to Say Something political. I dont think the reason to do this is political. But if the republicans pass a bill out of the house that secures the borders and makes people sign something that they came into the country illegally, paid a fine and go on and on with the other things that they will have to do, learn english and whatever, i think people on our side will say, i like that. Thats what we ought to do and all of a sudden the democrats are saying, were not going to consider it if they dont have a path to citizenship. I think most people are here illegally and dont care about being citizens. They want to get out of the shadows. Im here legally. Im completely documented. Bill kristol, Haley Barbour, please, dont forget the braniac aspect of this. The students that go to good colleges want to stay here. Let them stay here. Gentlemen, thank you much appreciate it. Folks, the wheels keep coming off for obamacare. The labor unions that fought so hard to get the law passed are lashing out at the white house. Now even the uninsured are starting to sour on the whole thing. Dr. Scott gottlieb joins us next to explain this bizarre situation. Honestly, im a little old fashioned. I love chalk and erasers. But change is coming. All my students have the brand new surface. It has the new windows and comes with office, has a real keyboard, so they can do real work. They can use Bing Smartsearch to find anything in the world. Or last nights assignment. And the battery lasts and lasts, so after school they can skype, play games, and my favorite. Do homework. Change is looking pretty good after all. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. [ male announcer ] a car that is able to see, to calculate, to think and can respond to what it encounters. Even if that means completely stopping itself. Its the stuff of science fiction. Minus the fiction. The 2014 eclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. More than 9 million americans have signed up for medicaid coverage. 9 million. More americans are signing up signing up for coverage every day. 3 Million People have signed up. All right. President obama really said precious little about obamacare last night. Undoubtedly because its so unpopular. In fangt, a new poll shows that even the uninsured dont like obama dlds care and now weve got the labor unions whining and belly aching that they are not getting enough regulatory favorites. Were going to clear off this, dr. Scott gottlieb. Were the president s numbers krkt last night . They are not. He talked about 6 Million People getting medicaid as a result of medicaid. 1. 5 to 2. 5 have been added by natural expansion of the program. As a starting point, its at best 4 Million People that have gotten it as a result of obamacare. So hes padding it. He has not been up front. Youre kidding me. Okay. What surprised me was this poll, 47 of the uninsured dont like obamacare. Only 24 like it. Now, that is its aimed at the uninsured. Why is this . The fact is, its expansive. Its not that attractive. People havent seen the plans and the reality is by the administrations own numbers, more than 50 Million People have logged on and have seempb will seen the prices. For them to not know about the subsidies, they know what it costs. Are some of these people shopping around and they dont like what they are seeing . They are middle class families that can afford to pay the higher prices. The folks that are uninsured are uninsured because its not attractive for them to go out and buy insurance given the cost of the suffer rage because they are young people and otherwise healthy. They go and look at obamacare, its still costly. You walk me through. I guess they have these selfinsurance but they are supposed to pay a tax. If im not mistaken, they pay a cadillac tax and reinsurance tax and they are not getting a break i guess they get a break this year but not in 2015 and 2016 and they are very up in arms about this. Why are they belly aching . They loved it and supported it . They campaigned for this. I think what they are worried about is the businesses dumping people into the exchanges and stopping coverage. Its going to make sense for the employer to stop offering coverage. What they really want is these plans. Thats what they are talking about. They are worried about the tax on the plans and 70 per person fee that they have been exempted from for the time being. What they really want is federal subsidies to subsidizing as far as tax emt. Thats right. Do they have a will they get it . Let me clear this up. Did they get an exception for this year, for 2014 . Yes. A unilateral move . For that 70 per person fee, they are not going to be hit with that. But they will in 2016 . Yes. And thats what got the labor union pissed off . I think they were pushing to get subsidies and the legislation could not be unilaterally. The president doesnt believe in legislation, does he . Last one, we had senator senator burr on. What do you make of it . Its a gop alternative to obamacare. Whats your take on it . It turns over to the regulation of the Health Insurance plans and its so unafrac tif that really no one wants to buy it. It gives people an incentive to get into the Insurance Market and a tax penalty enforcement and they continue to not be rerated. There is a transition problem. Some people cant afford to stay in the market if they, for example, lose their job and the bill provides subsidies. Sam burr told me that the bill does provide for sick people. One of my arguments, just going back many, many months, is the public does not yet trust the Republican Party to take care of preexisting continues. I. E. , sick people. In your opinion, senator said they will as long as they are in the same plan. Is that true and is that sufficient . They provide subsidies for people who are difficult to insure because of preexisting conditions. They offer money for folks that are difficult to insure. If youre not in an Insurance Plan but get sick, can you get into one under the burr coburn plan . If you dropped out of the market and try to get back into the market, you can get rerated by the insurance company. This is an incentive to get into the market. Theres arguments whether you think its sufficient for some people but do subsidize people, people who may lose a job and drop coverage, youll satisfy youll get a subsidy. Senator burr said to me, do you eliminate the bailout provision, the socalled bailout provision for Insurance Companies in they said they did. Is that true . Yes. So its tough. Its got republican markings. Transactions have to work to stay in business. Do you like . Theres a lot of good things in there. You do . Yes. Well leave it there. Dr. Scott gottlieb, thank you very much, as always. Cnbc marking its 25th anniversary by asking you to chose the 25 most important Business People of the last 25 years. Tonight, im going to focus on a nominee who truly changed the media business. Thats next up. And remember, you can vote for your top 25 right now at cnbc. Com 25. Were going to be right back with my nominee and my pal to help me talk about it. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Welcome back. Im seema mody with this news alert. The Justice Department will seek the Death Penalty against Boston Marathon bomber dzhokar. The next hearing is in two weeks. Larry, on a totally different note, i want to give you an update on shares of google and why they have turned around in after hours trades. Its called revenue and the Internet Business rose 22 and online ads grew 31 year over year. That was higher than what the street was forecasting. There you have it. Thats huge. Thats really huge. Ad revenue growth. So the ad business is pretty darn good for google. Exactly. Im no tech expert. That tells me something good is happening in the economy. Ad business everywhere, its one of the first to go down and one of the first to pop up. So people more people are clicking on ads and purchases goods. Right. Thank you, seem ma. Appreciate it very, very much. Now, folks, cnbc is narrowing down a list of 200 to find the top 25 influential Business Leaders of the past 25 years. For myself this evening, i want to nominate roger ales. It changed the whole media business. Starting with roger ailes, hes a transformational leader and best known for his work at fox newschannel. Also, he was early president of this fet had work cnbc. Mr. Ailes has broken the dominance of the Mainstream Media which always tilts left and is always unapologetic when he ruffles anybodys feathers. All right. Lets bring in mark, wor radio show, talk show host radio personality. Mark, i think that among the many obvious pluses here and by the way, he did good things for cnbc and thats why hes on our list, i suppose. He really said to the Mainstream Media, even your straight news guys have a leftwing bias and my straight news guys tell both sides of the story and i believe thats one of the reasons that hes kicked butt. Whats your take . Definitely. We always thought that we were getting balanced news and walter cronkite, once he got out of the anchor chair and heard him speak in interviews, he was far to the left and before ailes, where would you see a conservative voice on tv . Really only two places. A couple of minutes sunday morning on the brinkley show but that was it. Ailes changed everything. One of his main strategies, i remember him saying this, when youre on nationally, when youre across the country, the battle is won in the central time zone. Youve got to appeal to the heart zone. Thats one reason why cnbc will never catch them. Its very inside the beltway or elitist. He was a blue collar guy. He was a nothing from ohio. Theres a picture of him with his lunch box at the factory and to remember who he is and talk to those people directly. Basically, as far as i can tell, hes got opinion guys at night, opinion guys and ladies at night and hes got good News Reporters all during the day. Some of whom do appear in the evening. But the thing about the News Reporters, they will cover the conservative beat and the liberal beat. Ive seen it. Youve probably seen it, too. I dare say, many of the Mainstream Media networks News Reporters will only cover the left side of the street. And i think thats where ailes has just slammed them again and again. Yeah. And hes always careful whoever the host is, there are plenty of good liberal guests. James carville and others. Let me just mention Something Else about ailes. He in many ways changed the direction of the country. He was a great political consultant. Richard nixon would not have won in 68 had it not been for ailes and reagan may not have won that second term. He was called in an emergency call to straighten things out for the second debate and who knows if george h. W. Bush, although he had the greatest resume, would have gotten elected without ailes. Now, roger, as far as i know, is not really in the political game anymore. Is that fair . No. Hes out of it. But as a television guy, theres nobody with more experience. How many he was the producer of the mike douglas show. This was like having experience. He was at one time a manager of comedians. How many people do you know handled comedians and handled president s . Nobody has the range that ailes has. The other thing that is so interesting, sometimes the Mainstream Media, the executives that dodge around and dont give you a straight answer. So far as i know in his history, somebody comes out and attacks roger ailes, hes going to attack way back and wastes no time. He does a lot to protect his own people on the programs. Is that fair . Hes just an attack dog if he has to be. Well, again, he comes from a political world and thats why hes so great at that. But and he knows that the fight is entertaining. Often on msnbc, nice as some of those shows are, theres not enough fight there. Ailes knows the fight, the debate. It makes for excitement. You know, i just want to say, were cnbc and i love it at this network, we always have on this program, we always have liberals versus conservatives. Maybe not every single segment but many, many segments we always try to do that to be fair and balanced and i think thats true really pretty much for the whole network. People may criticize one thing or another but the liberal point of view is represented and the conservative point of view is represented. I dont know if roger ailes started that or not but i think its a good way to do journalism and i think that ailes has carried that out. And it would be interesting if he quit and went over to msnbc, they would be clobbering fox because of the resilience of ailes. I wonder what the odds of that are . I dont think its going to happen. You dont . Really . No. But hes a genius. There will never be another guy like him. I think youre right about that. Mark simone, thanks. Thats it for our show. Watch tomorrow, Wisconsin Governor Scott Walker is going to be our guest. He just slashed taxes in wisconsin. Hes on larry kudlow tomorrow night. Want it. Until boom, its bedtime d your mattress a battleground of thwarted desire. Enter the sleep number bed. Designed to let couples sleep together in individualized comfort. Hes a softy. His sleep number setting is 35. Youre the rock, at 60. And as your needs change over time you can adjust your bed to sleep better together. 48month financing available through february 2 only at your local sleep number store. Find your sleep number setting and know better sleep. [ chainsaw whirring ] humans sometimes life trips us up. Sometimes we trip ourselves up. 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