Transcripts For CNBC The Kudlow Report 20140201

Much needed project. And we also have Wisconsin Governor Scott Walker joining us live tonight. Well ask him about the big fiscal turn around in his state thanks to his free market policies and are perry and walker run for president in 2016. All those stories and much more coming up on the kudlow report beginning right now. Good evening, everyone. Im larry kudlow. This is the kudlow report. Were live here 7 00 p. M. Eastern, 4 00 p. M. Pacific. Now information on the Chris Christie bridge scandal. Does it tell us anything definitive about what the governor knew and when he knew it. Lets go to john harwood. Reporter good evening the answer to your question is no, but it is troublesome for Chris Christie. What we saw this evening is that David Wildstein his former classmate who oversaw the lane closures at the George Washington bridge hes been seeking reimbursement for lawyer spends and he countered by putting out a statement from his lawyer saying he has evidence contradicting christies statement when is he found out about the lane closure. He says he has evidence that governor christie knew about the lane closure while they were going on at a press conference after this was revelation this was political payback. Governor christie has put out a statement which weve got on the full screen here saying that David Wildsteins statements confirm what the governor has said all along. The reason why this is not depositive, governor christie has been damaged by this and damaged with respect to any potential run for president , perhaps against the two gechts youre following up with. But, wildstein has not indicated the governor knew about the motivation behind these lane closures and thats the key question. Whether anybody can show with evidence that hasnt been revealed yet that governor christie knew why the lanes had been closed and that the traffic study was not authentic. So, this story is moving. It certainly is troublesome for the governor that his one time ally has turned against him or is threatening to turn against him but we dont know enough yet to know how damaging this blow to governor christie is. I have no skin in this game. Let me ask you two quick things. Number one, im looking at the New York Times from the website this evening. It says the letter does not specific what this evidence was. Now, i just find that kind of wideopen. It doesnt specific what the evidence was. We dont even know precisely if there was any evidence. What do you make of that . Thats a mile wide loophole, isnt it . Absolutely. I think, larry, this is a threat from the lawyer. Remember theres a dispute over legal fees and the state is indicating that they are not going to pay or the Port Authority is indicating they are not going to pay his legal fees. This is an attempt, a response by David Wildstein to up the pressure. Hes been thrown under the busby the governor. The governor said he didnt know about this. David wildstein is the one who received that email from bridget anne kelly, aide from the governor and was fired said traffic problems in ft. Lee. The reason that was so damaging was that it showed they did this on purpose to create political to create traffic problems in ft. Lee for some reason thats still a little bit hazy, that is the political reason. We have not seen evidence yet that governor christie knew that that was why this happened. I think until we see that were not going to know. Just one other quick one, john, according to the report, wildstein is saying christie knew about the lane closings and traffic jams while they were happening. Christie seems to deny that at his press conference and denies it again in his response. John, unless i have this wrong, there is no evidence or even discussion of evidence that christie was involved in any planning before this stuff started, that he was involved in any, you know, counsels of war. Theres none of that here. Reporter i agree with you, larry. And this is what the governor said. I wasnt involved in the planning or executing of this. And the idea that the governor would know about the lane closures while they were going on is not so remarkable. After all, it created massive traffic jams, right . This was not a secret. It was a huge inconvenience for a lot of people in new jersey. Now if the governor is shown to have said something untruthful in his press conference thats damaging in and of itself but its not the same thing as showing that governor christie was, in effect, in on this political payback plot. Thats a key distinction. Thats great. Many thanks. Now folks, lets turn to the markets. It was a wild week on wall street. Today for example stocks sold off the dow ending down 150 points, nasdaq finished 19 points lower, the s p 500 dropped 12. So look, all right, my take for what its worth i dont see why people wouldnt buy this correction dip. Moreover i would sell my Treasury Bonds at 2. 65. I think they are way too expensive. Going further into the deep i wouldnt own any gold and i wouldnt go near the emerging markets. Thats my take. Now lets get right to it on this rather ugly market day with our highly distinguished panel. Joining me are ace investors michael farr. Jim lecamp. And our very own cnbc seema mody. Seema, was there anything hot today or anything that got hurt less . There were some high flying tech stocks. Google traded in positive territory. Netflix. I do want to say, you nailed the google story last night. You went back and read it up and reported it on this show. You absolutely did your total homework. I think for today the reason we had a selloff, disappointing earnings coupled with renewed concern over emerging markets. In terms of earnings we heard from walmart, mattel, mastercard all three companies came in with a miss. Thats why, that was the catalyst. In summary, with a little more i guess than half of the s p reporting right, the halfway mark. Arent they running at or a little high center rising. The number of Companies Beating street expectations is at 70 which is higher than the historical average of 63 . The Earnings Growth rate continues to pick up. Its above 8. 5 . The amount of companies that not only topping wall street expectations but more companies delivering strong Earnings Growth, much of it is fueled by lowering expenses and reducing their share. Take that michael farr. Earning season is turning out to be better than people think. Good news is good news. I got some more good news up my sleeve. Take that. Seema just laid that out. So why dont you go in and buy stocks right now. Youll never pick the exact bottom. Why am i all of a sudden getting attacked. Let me tell you the part that scares me the most right now, larry, i really do actually agree with you. Imagine how worried i am. I think that this pull back does present an opportunity. I think markets fluctuate. They go up and down. I dont think the fundamentals are eroding. We havent seen top line growth for earnings as robust as i would like to see it even though the bottom line numbers have been coming in okay. I agree with you about gold. I agree with you about the bonds. I think this rally gets sold. I dont know if you sell it right now or on monday. But they look expensive to me. Sell bonds, sell gold. Dan, let me go to you. Sell bond, sell gold, start buying stocks. Well never pick the exact bottoms and peaks and stay away from emerging markets. There may be a little Collateral Damage to the big markets but these guys are corrupt, moving to the left naffiliating once again and a big mess. Its an individual by individual currency story. When you look at those markets, larry, for every dollar coming in to the United States, 6 went into foreign and emerging market stocks in 2013. Thats measured by the mutual fund flow. So people were buying the emerging market story, i think way ahead of what they should have done. Sometimes its as plain as the nose on your electrifies and when you have a nose the size of mine its not hard to miss that. You have to buy stocks in the United States. The u. S. Is an improving story. Yet, the macro environment of whats going on in washington and those other things i think have kept people away. No one can conceptualize things are improving. Theres an election coming up in november which may be very interesting. By the way, speaking of good news, absolutely terrific numbers coming out of japan today. Absolutely terrific numbers for industrial production, retail sales and even inflation. I say that i say that, jim lecamp because i thought todays numbers, chicago pmi Manufacturing Index pretty good. Income and competence report, consumers are spending, income was soft. Yesterdays gdp was very strong. This goes the mantra. Good news is good news. People are losing track of that. When you were talk about corrupt and moving to the left which country were you talking about because this sounds like the United States. No i think youre right. We have a lot of good news. We have a lot of good news on the economy. Its not really getting into third gear yet but in second gear. Thats not the big story here. The big story here is the la xavier rus resurrection of the dollar. Thats the big story. When you look what the shale revolution is doing and our Manufacturing Base and trade balance and you compare that with fed tapering, stocks and bonds are rallying, were bullish on u. S. Stocks opinion it wont be a bang up year. It looks like it will be a stock pickers market but even today we saw a lot of stocks in the green and i agree with you you can nibble at stocks as stocks sell off. But 410 days since we had even a 5 correction. This can go another 5 or 6 but the internals of the market still look healthy. I dont deny that. I have to take a timeout. All i know is nobody is going to pick the exact bottom of the stock market. Its not possible and i think you get a selloff like this you start nibbling. Everybody, stay right where you are. We have much more ground to cover. And we have the latest on the long awaited and just released state department on the Keystone Pipeline. All right . Does president obama have any more excuses now to block this vital project . The man who knows a heck a lot about energy being chief executive that being Texas Governor rick perry is about to join us live and talk about this developing story and thats not all. Later on in the program Wisconsin Governor Scott Walker will join us live to talk about the economic turn around in his state and how he wants to remake the National Republican party. How about that for a noble cause . For now dont forget free market capitalism is the best path to prosperity. I think this keystone has to go through eight more bureaucracies before it gets confirmed. Im kudlow. Well be right back. [ 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. Welcome back to the kudlow report. Lets get right back to our discuss with our great stock market world financial group, michael farr, jim lecamp, dan, seema mody. Michael farr, people say the fed is somehow taking the liquidity out and thats driving these foreign currencies down and thats hurting the American Market also. You got to explain this to me. Right now theres 2. 4 trillion excess reserves on deposit at the fed. So if they are buying 10 billion, not trillion, 10 billion fewer bonds how does that amount to a liquidity crisis, how does that affect the current circumstance how does that affect anything, for gods sake . Heres another one of these kudlow questions i dont have an answer to. I agree with you. It doesnt make any sense to me at all. They are still dumping liquidity on a monthly basis into the market. I mean theres an enormous amount of liquidity out there. We dont have a lot of velocity of money. Were not seeing any inflation. This somehow knee jerk tie to emerging markets for which the fed is responsible i dont get it and i think we have to pay closer attention. I think our companies in Corporate America continue to expand. I think we have to be cautious as investors but, again, this excess outside noise driving prices down is creating opportunities for investors here. Youre looking to buy, i want to get your message very clear. Youre not leaving tonight unless we have a very clear message from you. Your looking to buy . Are you, in fact, buying . If so, what . I am looking to buy. I am i actually nibbled last week. I got a list that i will continue to buy if these prices come in a little bit. Im very price sensitive thine tend to hold stocks for at that long time, you know. Ill hold a stock for five years, larry. Im old school. But valmount industries is one i add. Its reasonably valued. Its not a recommendation for those who are thinking about buying a stock. Seema on the beat is last couple of days, what are you hearing about nibbling and buying . Has anybody you got to figure as stocks go down, i mean even bears like doug cass is coming back into the market. Thats what we saw yesterday and one of the reasons we saw stocks move higher a lot of traders on the sidelines waiting to buy the dip. But, again, we saw a selloff today. Volatility is picking up. Were looking at the vix which moves higher, that tells us more investors are buying protection. This jury is still out whether well see a full on correction in the market because again the fundamentals are improving and thats keeping a lot of investors bullish. Is it a full on correction 10 or more. So were down were down 5 just this month. About 3. 5 on the s p. Correct. Dan, you said you own stocks that went up today. And you promised us you would name a few names. We had manitowoc, the company beat on the top line and their Food Service Business improved very significantly. That stock was up 15 , 16 despite the declines in the market. In the health care i. T. Space, cpsi which is the Ticker Symbol as well raised their dividend 17 and also beat significantly on the margins and are moving much higher on the top line as well. I think this is going to be the year, larry, where active stock managers because remember last year it was difficult if you were an active manager to beat the benchmarks. This is going to be the year where if you do it stock by stock youre looking at somebody, namely me who doesnt believe in active stock management. I just dont believe in it. Now, now. The whole world disagrees with me but im with jeremy siegel. Jim lecamp what are you doing here . Im not letting you out of here until we get some strategic advice. Whats up . Were buying and selling but im looking for things to buy. Our portfolio has hung in very well. A lot of medical care, health care, biopharma stocks. A lot of technology, google and facebook has traded up nicely. So i think there are areas you can play and i always liken to it a team. If you can find enough players to field a team, build a portfolio put the money out there. If its so narrow you can only buy one or two areas its not worth doing. Its still worth doing. Toifr environment. I think this will be a pickers market. The market is already showing us that and the other area that i think investors need to focus on is domestic oriented businesses versus multinational and versus International Companies because of the impact of the dollar. I got to leave it there. Thank you, everybody. Now weve taken a look at the state departments long awaited report on the Keystone Pipeline. Believe it or not it looks like theres still no reason for the president to keep stalling on approval of this project. Texas governor rick perry has been speaking about this thing for years. Hes about to join the kudlow report live and exclusively on this developing story next up. Please stay with us for governor rick perry. I need proof of insurance. Thats my geico Digital Insurance id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. Are we still on for tomorrow . Tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Csx. How tomorrow moves. What a day. Cant wait til tomorrow. A report published today by the state department undeniably proves that the Keystone Pipeline expansion will have no negative impact on the environment. It reads quote, the proposed project is unlikely to significantly affect the rate of extraction in oil sand areas. So we ask will president obama listen to this report and do what he ought to have done a long time ago and approve the Keystone Pipeline . Joining us now is truly an expert on this subject and all Things Energy we have exclusively texas republican governor rick perry. Governor perry, as always, sir, great to see you. First of all let me get your quick take. Theres a bureaucrat tease but is the state department basically saying go ahead its okay. No matter how you read it thats what the state department is saying which weve known for some time this was not going to have a powerful negative impact on the country and not impact the environment in a negative way. As a matter of fact, this oil coming to texas and being refined in texas rather than going to other places around the world where they dont have the Environmental Concerns that we do in the United States, i will suggest to you it is the environmentally thoughtful thing to do, put this pipeline in, get it going as fast as we can and quit relying on oil coming from places where some of those governments dont have the United States best interest in mind. I assure you the canadian dose. With more dangerous transportation. Much more dangerous transportation. This is the safest pipeline ever belt. Its amazing. Satellite monitored. Buried deeper. It has automatic shutoff valves. This is a hitech pipeline and it makes a lot of sense for the United States and canada to be working together and using this north American Energy resource. We got to cut the bureaucratic hurdles. Theres stuff in here i didnt know. It says here the state Department Must next determine whether the pipeline is in the National Interest. That involves taking into account both the environmental and Economic Impact of the project as well as its impact on the relationship between the u. S. Canada, the nations largest trading partner and largest source of foreign oil. They got to go through a National Interest scrub and they got secretary of state john kerry to report up through. This still makes me a little near vourks governor perry. What do you make it now . Theres more hoops to go through. Well, we can save them a lot of time. I think we can give them the answer to that. I think most americans understand that this truly is a bureaucratic hurdle thats put into place. The answer to that is yes its in our national security. Yes, its in our interest economically with the canadians. Frankly, larry, it should be that simple. The president of the United States knows this is good for this country. You got the labor unions that are pushing to get this done. People who have historically been in his camp and to push this off any longer, not only hurts americas security, our energy security, you know with what mexico is doing with their Energy Resources you got canada, United States and mexico and the north american region could become economically and Energy Secure as we go forward here very quickly and i think that this president needs, to you know, get on the program and recognize this. Quit, you know, kowtowing to an environmental, radical environmental position that frankly does not hold water. This thing, this energy is so important, governor as youve said many times on this show and where else. One of the benefits is trade. Well quit importing because were producing so much and if the government would let us we can actually export. Theres light sweet crude unless they build refineries, we cant use it at home. They can export that stuff. That creates more growth in the American Economy. I want to ask you something else. Long time governor in texas. A true chief executive. Listen to this. Eight other agencies, okay, eight other agencies have to weigh in on this. Defense, justice, interior, commerce, transportation, energy, Homeland Security and the epa. Now, simple question, wouldnt a president perry just knock heads and get these agencies to okay that in about lets say 72 hours . Well, if a chief executive truly was interested in getting this country Energy Secure this would have been done a long time ago and thats been my position with the president and my beef with the president is hes putting this country at risk. We have young men and women around the world that are defending Energy Resources and the fact is we got them right here in the United States, we got them in canada, we got them in mexico. Those are true neighbors and they are people who have an economic interest in this entire region. So the idea that we have taken so long to make a decision that most of us knew the answers to before they went through all of this and this has been environmentally studied to death, if you will and thats who has held this up time after time is that radical Environmental Group that the president listens to too often. We need to get americans network. Eight other agencies. Let me go back. Youre governor of the texas. A lot of state agencies. Im sure they have overlap. As governor, if you were convinced that the rightness of something wouldnt you knock heads and get these agencies to get their work done fast and what troubles me is president obama could hide behind these eight agencies, they are all going take god knows how long and not make a decision. I think the chief executive knows how to work their way through the bureaucracy. If you want to get something done you can get it done. Thats why we need governors as president. Whether its yourself or scott walker, isnt that why we need a governor as president . I think if you have not run something it makes it substantially more difficult to govern, to understand how to get things done. So, your argument holds a lot of water, in my opinion. All right, governor rick perry of texas, thank you, sir. Now on tuesday well be joined by a man who is as instrumental as anyone in the Current Energy boom his name is harold hamm. Hes the major force behind fracking in the shale region and throughout the country. Hell be our special guest tuesday night. He really is the guy who drove the whole fracking process and changed the face of energy which is changing the face of america. Anyway up next this evening we have another hot shot governor joining us live on the show, well be welcoming Wisconsin Governor Scott Walker. Hes engineered an unbelievable turn around in his state and why hes going to make over the entire gop. He has some interesting national views. Mr. Walker will be up next. Please stay with us. Im kudlow, well talk some national. Tte or au lait . Cozy or cool . Meow or woof . Everything the way you want it. Until boom, its bedtime and 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. Wisconsin republican Governor Scott walker proving that strong fiscal reform reigning in union, cutting taxes is pro growth. Get this, wisconsins Unemployment Rate stands at 6. 2 . Thats more than 100,000 privatesector jobs created since scott walker took office back in 2011. And incredibly, after facing a 3. 6 billion budget gap three years ago the state now has a nearly 1 billion surplus. So, will wisconsin be an economic model for the rest of the nation. Were joined by Wisconsin Governor Scott Walker who is out with a new book, iuninti m unintimidated. Theres some new information about Chris Christie. Do you have a thought on that . Well as ive said in the past ive talked to chris the day he spoke for nearly two hours in front of the media pep told me the same thing in private that he told the public at that press conference. I have every reason to believe him and assuming that information remains ill believe hes telling the truth. In terms of this new information today i dont know enough about it. I dont think any of us. Do you think he should remain the head of the National Republican Governors Association . Again, i think the information he told me as long as that continues to remain accurate which i have every reason to believe itsy have confidence in him just like i have confidence in other leaders like bobby jindal and others going forward. A lot has happened in the last few hours. Well look at it closely. I dont see any reason that contradicts anything that weve heard from him thus far. Thanks. Im more interested in this. You recently called an interview that the National Republican party has become the party of austerity and doctor no. Not the party of reform and Economic Growth. Could you expand on that message . Yeah. I talked about, my book unintimidated. We shouldnt be the party of austerity we should be the party of reform. Here in wisconsin if we had been just about austerity we would have cut things across the board. That would have meant that things we valued would have been pushed aside. We put in long term structural reforms. They paid off. As you mentioned nearly 1 billion in surplus. Unemployment rate threepoints lower. 100,000 privatesector jobs after losing 133,000 jobs. Net 13,000 new businesses in the state after losing 27,000 businesses in that term before i took office. Good things are happening in the state but its because of pro growth, pro opportunity, pro prosperity issues, not because of the austerity. Were making things work better. Thats a message, you and i talked about. President reagan inspired a nation to lead on and one we should be doing not just in my state or other states but across the country. I think youre exactly right. Weve had some better news on the economy but this socalled recovery son lie half as fast as it should be and only 58 of eligible workers are working. 58 . What i want to know given your Great Success in wisconsin, i want to talk about the tax cuts in a minute, what would you do if you were president walker what would you do, where would you start to rebuild the American Economy and get that growth message implemented . Well, i think any leader, if i was advising the next president or anybody else out there i would tell them do a couple bold things. Slash the marginal tax rate. Put more money back in the hands of americans. We saw that in 1981 when president reagan signed the economic recovery act out at the ranch in california. After it was fully enacted shortly thereafter we saw the most unprecedented Economic Growth weve seen. I think we could see it again. We need to get down so were not one of the highest taxed cu eed countries at least in the civilized world. Weve seen at the state level it works. You put more money back in the peoples hands they put it back in the economy. Slash the marginal tax. Repeal obamacare. Replace it with something thats a patient centered plan thats not restrictive to the state nor federal government. Put the patients back in charge. Let people have the certainty to know where were headed. But barriers on the epa. Why rick perry was right before about keystone. It would put america back on track. Put a lot of my buddies here in wisconsin would help to build that. And then other agencies like the National Labor relation board put the power back in the hands of the people. Youre cutting taxes, 2 billion in wisconsin. Can you talk more about that . Yeah. We came in to decide the best way to get our economy going and help balance the budget, more tax relief, prompt taxes, income tax, business taxes, a billion and a half thus far with our blueprint for prosperity to put us over 2 billion. Were cutting income tax. Change withholding tables so more people get money back in their paycheck right away in the next couple of months. We understand that that surplus was generated by the good people of our state putting more people back to work and working harder. More employers are hiring. Personal income is up. We want to keep it going. Well plow that right back into the hands of the people and employers of our state and deep ball rolling forward. Sounds like supply side to me. I want to go back to the national scene. As you know, some reformers in the gop like paul ryan and others are trying to craft an Immigration Reform bill for a variety of reasons. Its pro growth. Reach out to constituency that the gop has done poorly with. Theres another faction the restrictionist faction anything you do they label it amnesty and pound away on that. Governor, where do you come out on this. Is it time for Immigration Reform . Can it to be done in an exper g or do you have to kowtow to the restrictionist. Theres a talk about fixing the Legal Immigration system. Were a country of immigration and laws. We dont need to compromise one for the other. The challenge is we have a Legal Immigration system that doesnt work no matter where youre coming from whether mexico, canada germany or anywhere else around the world and if we want to dont a nation that prospers we need to have a legal way for people to come in to this country not to deal with people who are here right now without legal status but for people who want to come in here, live the American Dream, want to work hard just as our ancestors came to this country, we need a way to inspire people to live the American Dream legally and thats something missed in much of the debate up until now. As governors we try to fix things up front before we deal with the aftermath. They are missing the ball in washington. This whole thing about amnesty. Everything is amnesty. Dont we want brainiacs to come to america. Dont we want the Smart College students that were educating to stay in america. Dont i want to go through the process, governor, of trying to legalize and give the right green card permits and eventually make citizenship for the 11 or 12 million that are here. Really isnt it about time the gop started down that path. I know, every time they do, a Certain Group of people called amnesty as though thats some viral disease. I dont get it. I want to give the last word on it. Well, i talk about this in my book the shining city on the hillis what president reagan talked about. It wasnt just for people born here. Its to inspire people who want to add value to this country just like many generations before it. Thats why we want a legal way to get in here not to just become a citizen but a legal way. If you want to be a maker not taker we want you in america. I have to ask the last question. You going to run for president im focused on being governor. Its the best job in america. I love the fact that people are talking about us in a favorable way because it means our reforms are working in wisconsin. Thats more important to the people in my state than me. As ive said before its not wise for anybody in our party or anybody who loves this country to talk about anything other than 2014. What we showed in wisconsin and other battleground states like hi, if you have a team in place, a legislative and executive branch that have reform on the right track. We need people like paul ryan and then we can elect a president that has a team. That profile fits you. Many thanks Wisconsin Governor Scott Walker. As always by the way his new book unintimidated its available every where. Its free market friday. We got our experts assembled to talk immigration, keystone and what they thought of Governor Walker. Do they think he looked and sounded like president walker. Up next on the kudlow report. 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Joining us now our free market friday panel. We welcome our democratic strategist, cnbc contributor and americans for prosperity. Ill go to jimmie p. Did we hear president walker did you just hear a president walker . I think youre right. I think the door is open and based on your first segment tonight there may be an opening for reformists Union Busting governor. He fits that slot nicely. Well go lightning fast. Ill ask you chris the same thing. I know youre a democrat but did you hear a guy, you know, we went through a lot much issues local and national. Did you hear president scott walker . I heard a guy who is going to run for president. You dont write a book if you dont run for president. The way he talks about tissues its clear. I dont know if he has the ability to compete at the general level if he wins the nomination. He has a chance to win the republican nomination. I dont think he has a chance to win the actual presidency . Why not. Listen to some of his positions when he was talking about growth and growth agenda that sounds good but then what he talked about was very tired old repeated position. Antiunion stuff. He wouldnt answer the question on ilLegal Immigration. Tax cutting from the top is great. You have a huge deficit you have to deal with. American people will say wait a second more tax cuts . He needs a more bolder vision. Jennifer, i want to focus on immigration. You may disagree. But you have this group in the Republican Party anything you do on immigration is labelled amnesty and then opportunity hung in the Public Square like they do in the 16th or 17th century. I acknowledge that Governor Walker did not have a specific plan but jennifer i want to ask you, do you believe that its in the republicans interests to have a plan . Well, i think there should be a general plan for outreach to hispanics. Whether amnesty will work or not remains to be seen. They have to do it kwoumd a couple of other things. Whats amnesty . Overall, or the idea whats amnesty. You used that word amnesty in the second sentence of your answer. I dont understand. Why do you call it amnesty . Amnesty basically is a conditional pardon, all right, by the government. You got to go through a lot of hoops before you get anything close. You have to go through probationary status. You got to go through no welfare, pay your taxes, got to know english, history, civic, Law Enforcement record and then you get legalized and then you get a green card and then, then at the end of that process which probably takes ten years you get pardoned and you can become a citizen. Why do you start off with the phrase amnesty. This is the thing that i think is killing the gops reach out. Well i probably indict, larry because i heard you use it first. Im not here to debate the definition of that. The path to legalization. There are two other components that have to go handinhand with that for gop to be successful. Number one is a massive Voter Registration drive as a population overall hispanics lean center right but the voting population of hispanics is hard left. So first of all the Republican Party has to get out there and do Voter Registration. Secondly if they include that path to legalization is go out and give the alternative to democrats. Democrats are out there saying now food stamps and welfare. Republicans have to go out there and talk about creating well being. Opportunity. Free enterprise. Hang on. Until you legalize people and act like they are going destroy the country and turn the country into some sort of socialist paradise it doesnt matter what your outreach is, it doesnt matter talking about pro market solutions. As long as thats sitting there they wont listen to you. I dont believe that is sitting there. May i say this one thing. I dont believe thats sitting there. Theres a component of the Republican Party that talks about that aspect and they have their the right free speech. Whats driving right now the Republican Party is driving a fut legalization but they need to taed component of voter outreach and registration and talk about Free Enterprise and opportunity. We all can have a debate about which partys ideology will appeal more to the hispanics. I think the last few elections have proven which one that is at least right now. Its really simple. The Republican Party does not embrace this issue, they will not win a general election again in the very near future. It will be almost impossible. The demographic shifts are too clear. Whats promising youre seeing Movement Among the republican membership and the president to find compromise. What i would say to conservatives and to republicans who have doubts is Ronald Reagan who they hold up as an icon actually did this. He actually did this. So the notion that this is lets not forget the democrats hate reagan. Im saying as long as this is an issue were not going to get a high skilled immigration my point is to the republican base. Jimmy let me pursue that. It is your view the gop should not go after Immigration Reform . Listen. I think you should always do the right thing . You know whether you want to wait until 2015, it becomes part of the president ial race. Doing the right thing theres always time for that. If you do that its pro growth. Lets get the brainiacs in the country. Thanks, everybody. Jimmy, jennifer, chris. We appreciate it. Ill be back with a final wonder this wild week next up. Thats how our system works. E trade. Less for us, more for you. For ovnights can feel califolong and lonely. Dren, i miss my sister. I miss my old school. I miss my room. I dont want special treatment. I just wanna feel normal. To help, sleep train is collecting pajamas for foster children, big and small. Bring your gift to any sleep train, and help make a Foster Childs night a little cozier. Not everyone can be a foster parent, but anyone can help a foster child. Just a final word from me. Some crazy trading and wild week for stocks. Again ill say this, good news is good news on the economy. I like that. Thats why i think you should buy into this. I dont know when it will stop. Corrections are do it predict. I would buy into it. I wouldnt be in emerging markets at all. I would sell my gold and i would be selling my bonds and if i were the Republican Party i would have a strong growth message like abolish the corporate tax. Thats it for this evening. Im larry kudlow. Thanks for watching. Well see you on monday. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. Narrator in this episode of american greed. Samuel israel the third, the big money hedge fund manager. Carl catauro most good fraudsters, and ponzi schemers in particular are people who strike all the right chords. Desperate to succeed. Guy lawson he lived through the most decadent era in human history, and was a creation of it and was destroyed by it. And the scam that bilked investors out of 300 million dollars. John siegesmund literally, within the space of minutes, i had lost 336,000 dollars. It all leads to this bridge and a suicide note. Leaving investigators with two key questions. Wheres the 300 million