Obamacare, all of which are wreaking havoc for the economy and Health Care Sector and may be illegal, now is the time to push a simple 2014 campaign idea. A threeyear moratorium on all of obamacare. Take a time out to fix this thing from top to bottom. All of 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 at 7 00 p. M. Eastern and 4 00 p. M. Pacific. The top story is the situation in the ukraine has calmed down for now but theres an arrest warrant out for the president of the ukraine. Nobody can find him. Good evening, richard. Thank you. Reporter its a pleasure to be here. Things, as you mentioned, in your report are quite calm in the capital. This square, which was the center of the protest movement where bomb fires ringed in this neighborhood, theres a concert here. This place has become a memorial site. All day people have been coming, leaving flowers and paying their respects for about 100 people who died to topple viktor yanukovych, whose whereabouts at this hour remains unknown. All right. So i thought there was more. Okay. Nobody knows where this guy is. How important is it to find him . All right. Im told im reading, richard, that their legislature functions, that somebody is going to be elected president. I guess right now the speaker of the house is running the show. How important is it that they find the expresident . Reporter its probably not very important geo politically. Parliament, you are right, are running the government. People are watching ukraines version of cspan, watching their parliament in rapid fire session pass law after law after law. They are doing it without executive authority. They ordered the release of political prisoners. They are being carried out. Police have declared loyalty to the new government and they have been appointing new men sisters. So this new government is functioning. The wild card in all of this remains moscow. We saw very strong statements coming out of various russian officials and ministries denouncing this new government calling it illegitimate and even comparing the rise of this revolutionary movement to the nazi party in germany. Troubling signs, we havent seen russia send in the tanks but they are trying to sabotage this project verbally so far. All right. Is this ukraine situation going to be more peaceful than what happened in georgia a few years ago . Reporter its hard to know if this will lead to a series of revolutions. If you remember, tunisia it started out you saw egypt fall and then the bahrain revolution began and the Syrian Revolution is still going on. Libya fell. Well, this also set up a chain reaction, perhaps seeing other revolts, popular revolts informer soviet republic. That is one open question. Georgia, we had war with georgia after georgia decided to turn its back on russia. The russians intervened militarily. I dont think that is going to be the case here. Russia still maintains a naval base. If you saw ukraine suddenly break its military arrangements and try and close that Russian Military base, then i think we would have to get the flat jackets out again and reconsidering carefully that statement if were going to have a war here or not. Many thanks. Richard engel thanks, reporting from kiev. Thank you so much. Its been a rally for stocks and more record highs. Whether this is related to the ukraine, well see. Bob pisani joins us with you will a of the details. Good evening, robert. Stocks were up but it was a disappointing close. The market rocketed up in the first half hour of trading as the s p moved up to new intraday highs. Its the same story, once it moved into record territory and turned positive for the year, investors on the sideleaines wanted to get in for fear of getting out. Some stocks, like continental resource, concho resources, ultra petroleum, financials and Health Care Stocks gained. They are the biggest gains because biotech and pharmaceutical stocks have been strong. The s p 500 missed closing at a new high by less than a point. Thats a disappointment to otherwise strong day. Back to you, larry. Many thanks, bob pisani. Switching back to the ukraine. Will support from the u. S. And imf be enough to contain the situation and prevent military intervention from russia . Ukraine is a democracy. It has a functioning parliament legislature. And a peaceful transition would stop contagion to emerging markets all around the world. Here now to help us pursue this, the council on foreign relations, good evening, ben. Thanks for coming by. First point, will the russians stay out . First point, number one, will they stay out . Richard engel, i asked if its going to be like georgia. He said we dont know. Theres still a lot of time between now and the may 25th elections. I think the russians are going to be couautious about this. They are going to want to let this play out a bit and let the momentum move in their favor. Can the ukraine be split in two . Im no expert but all i know is what ive been reading. Everyone says the western part of ukraine is more europeanized. They should have gone into the european union. The eastern part of the ukraine is not. Its really russia. Maybe old russia, maybe old soviet union. I dont know what any of that means. Thats right. Its a split in the old country but it would be really a radical development what youre suggesting because you would have the eu moving right up to russias orders. As you know, the russians have been very angered in the past over european and american actions, what they see as violation of pledges, for example, not to expand nato not too far tough tarts. Tough tarts. I think its time to push the reset button again. The first button didnt do so well. Syria, iran, now i dont know how the ukraine is why dont we push it again. The eu, Angela Merkel says they will bring them in. The imf or the u. S. And the imf, 35 billion of Financial Assistance to the ukraine. Markets love bailouts, larry, but this is far from a done deal. The imf was burned in 2010. They came forward with an aid package and were forced to cut it off in 2011 because the ukraine was not meeting its requirements on the reform, amounts to 7. 5 of g dchldp, it huge drain on the finances. We can export natural gas right now. America can. Bond market, i dont know if its germain in a situation like this, but markets are staying for now peaceful and no emerging market contagion. Were going to get to the stock market effect in a minute. But markets have a lot of information. They do and, as i said, markets do love bailouts but theres a long way between where we are now and the 35 billion package that were talking about. Why . Because the imf has been burned once before. Very, very badly in the ukraine. They are demanding reforms that i dont believe any Ukrainian Government is Strong Enough to push forward. You take Energy Subsidies amounting to 7. 5 gdp, you cut them off in the middle of a winter, larry, and youre going to have another revolution on the street. People start paying the u. S. Can fill that void. We can export oil, we can export gas and coal. We cant do that tomorrow, larry. Maybe next friday, monday. I want to know about this boxing champ. I like the fact that hes a boxer. Is he going to be the next president . He very we may be. There are a number of contenders, including the former prime ministers. The press has been fixated on the local political dimensions of this problem. The ukraine is really a typical emerging market country. Right. Facing taperitis. If you look at the biggest falls in the ukrainian bond market last year, when did they come . Right after bernankes famous taper comments on may 22nd. You see, i think youre dead right. I think the emerging markets were calm today because the ukraine was relatively calm and i think that helped the stock markets as well. But if the ukraine blows up, they will be contagious. And the situation becomes all that much more important. Do you think putin i know hes a tough guy, do you think you would bring the Ukrainian Army into this . There is a lot of time between now and the scheduled elections on may 25th. All right. Well see. Thank you very much, ben steele, you are the best of the best. To help fuel todays stock market rally, lets bring in president and ceo. Did the quiet day in the ukraine affect the stock market . I want to step back. Im listening to all of these comments about the ukraine. It goes back to qe. They pegged their currency to the dollar. It seems like every emerging market crisis coming from countries that run out of dollar reserves to protect their currency and, you know, we just need to understand that as long as their is talk of a bailout, i think the markets are going to be calm. Weve provided dollars to various countries. We give them dollars so they can sell our dollars and buy back our currency and protect our currency. Think about it, you know what the biggest import of the ukraine is . You know what it is, larry . Im going to guess its natural gas. Well, it might be. But one of the biggest is russian vodka. Oh, no. Oh, yeah. And so maybe russia doesnt want smirnoff, which i think is a british company, selling their vodka to i thought the ukraine was a bread basket of the old soviet union. I thought it was. Am i wrong . As an exporter, but they need energy. I think from a geopolitical perspective, the eu trying to get into the ukraine is getting close to the russian sphere of influence. But as it relates to the markets, the markets have doubled since the russia georgia war in 2008. Well leave it there. Thanks. Ron is going to join us later to talk about the stock market rally. But now free market victory. We have the deal between netflix and comcast that i think is a very good sign for american capitalism. And later on, a threeyear moratorium on all obamacare. All of it. We know this thing is not working. U. S. Businesses and consumers need a timeout. For now, dont forget, free market capitalism is the best path to prosperity. Dare i hope for marketoriented healthcare prosperities . They should take it. Ill be right back. Stay with us. Please. Honestly . I wanted a smartphone that shoots great video. So i got the new nokia lumia icon. Its got 1080p video, three times zoom, and a twentymegapixel sensor. Its got the brightest display, so i can see what im shooting even outdoors, and 4 mics that capture incredible sound. Plus, it has apps like vine and free cloud storage. My new lumia icon is so great, even our wipeouts look amazing. Honestly, i want to see you be brave 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. Whether its building the worlds most advanced satellite, the space station, or the next leap in unmanned systems. At boeing, one thing never changes. Our passion to make it real. Netflix and comcast entering into a very interesting new deal. I think it could be a big win for free markets but before i get into any of that, lets get all of the details from Mary Thompson. Good evening, mary. Good evening, larry. You dont like traffic, do you . No. No one likes traffic. Whether its on the road or on the web. For years, comcast has been saying that netflix customers have been hogging the internet road, so to speak. They account for as much as a third for the downloads. With so much video being streamed at once, it cause as traffic jam, slowing and disrupting downloads. So under this multiyear pact that was instruct between comcast and netflix, they are going to use the undisclosed amount of money from netflix to use better avenues to accommodate the video traffic. This means delivery should speed up and disruptions should decrease. Netflix didnt say if there would be a change to the 8 a month subscription fee and if the comcast deal would impact the cost to the customer or take out other costs to make up for it. Both stocks finishing the sessions higher. Netflix resisted any attempt by broad band providers to get money from the service. Comcast is growing clout. Keep in mind if the deal to buy Time Warner Cable goes through, it will provide service to 30 million households. Netflix may have been able to offer a cheaper price as a potential critic of this highly scrutinized deal. Interesting. That is interesting, that last take. But the way i look at it, weve had this big battle over something called Net Neutrality. So comcast and verizon, they built the pipes and the broad band and then you have streamers coming in. Why shouldnt netflix pay . Verizon is not in the volunteer business. Its a profit. Net neutrality has been about the content that has streamed equally. As you say, its starting to disrupt services. Some say, if youre going to put that much traffic on the road, you shouldable ab be able to pa it. It raises the question about Net Neutrality which i think was designed to it was a correct decision. I think its just a Good Business decision. I dont think anybody can blame comcast for that. You want to use pipes, youve got to pay for it. By the way, i hooked into netflix on my computer. You did . So Company Watch house of cards. All of my political friends are watching it. I thought it was pretty good. I dont know. Its a little cynical. But i did. I connected. Washington, cynical . Im surprised. Cynical. Anyway, a triumph for free market capitalism delivered by Mary Thompson. Stick around. You have more work to do for us this evening. Secretary of defense chuck hagel announces his plans for big military cuts. Were talking about the fewest number of military members. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. You want everything. Orks an expert ford technician knows your cars Health Depends on a full, complete checkup. The works. Because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. Get our multipoint inspection with a a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup. Only at your ford dealer. Welcome back to the kudlow report. Im Mary Thompson with this news alert. Chuck hagel proposing big defense cuts today. Among the cuts, shrinking the size of the army to preworld war ii levels and eliminating an entire fleet of air force fighter jets. But defense stocks rally on the fuse. Lockheed martin, for instance, will still get money for the fighter jets under the plan. And will president obama really give a definitive answer one way or the other on the Keystone Pipeline . Mary fallon said the president assured governors that an answer would come in the next couple of months. And we do have some sad news tonight. Actor, director, screenwriter harold ramis has died. He was in animal house, groundhog day, and stripes. I, for one, will miss him. I think the really interesting story now is going to be the cutbacks in defense regarding personnel. There will probably be cut backs in investment, also. Hagel may not be the most popular guy, we will see, but from my experience and discussions in washington, a lot of republican budget cutters, including paul ryan as a leader, briefs in defense downsizing since we are moving out. At the very least, we will have a greatly smaller presence in afghanistan and were out of iraq. Were retreating, as you say, from afghanistan. But its hard for people to get around the idea that a smaller army will not necessarily mean a less forceful army. Technology is at play here and just a necessity. Do we need to be the worlds policemen if we are not policing two areas at once, do we need those personnel . The numbers being bantied about it may go back to the 40s. That may be. We had almost nothing before world war ii and we had to run through a draft. The only thing i was concerned about is that we not cut to the bone on investment and the technology because thats americas greatest valueadded. Thats our advantage. We have the most extraordinary technology. I presume thats okay. And i also presume that the civilian side of the pentagon gets radical cutbacks because it has been built up a Million People during this twoworld period and im sorry there may be hardships here or maybe they get paid off slowly. We dont need that kind of civilian force. We just dont. That could be the next thing that we hear about. Mary thompson, thank you ever so much for all of that. Sf now, the obamacare cuts keep oncoming. How the Health Care Law is eluding medicare. Apparently its in order to fund obamacare. I think its a disaster in the making and its just the latest reason why im calling for a threeyear timeout on the entire thing. Im going to explain that position just ahead. Please stay with us. Its the kudlow report. [ male announcer ] these days, a Small Business can save by sharing. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Oh, its great. Yeah. [ male announcer ] the best thing to share . A data plan. New at t mobile share value plans for business. Our best value plans ever. For example, you can get 10 gigs of data to share. And 5 lines would be 175 a month. Plus you can add a line anytime for 15 a month. Sharings never been better for business. Sharings never been better for business. But with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. As if obamacare wasnt already bad enough, a new federal report, which was released quietly by the Obama Administration on friday says that twothirds of americans who work at Small Businesses, roughly 11 million americans, will see Health Insurance premiums increase under the president S Health Care reform plan. And that is after the administration slowed dismantling and delaying of the law and thats why im fed up and im calling for republicans to push for a very simple threeyear obamacare moratorium. Time out, let the clock stop, and lets go back and look at this thing. This could be a good Election Year for them. Weve got a couple things to cover. First, were joined by friends of the show, former director for health programs, jim capretta. And senior fellow at the manhattan institute. Jim, i want to talk about one other thing. I want to talk about this looting of medicare. This is not a brandnew story but its coming back into the news, i guess because Medicare Advantage is really being downsized by as much as 5, 6, 7, even 8 and wont get to doctors. This was a private competitive part of the story and obamacare is ripping it to pieces. Yes. This is the most successful part of obamacare currently. 27 are enrolled in medicare. They are very, very popular. They offer better benefits. Frankly, they are measured for quality in a way that the regular Medicare Program is not. Often times seniors can get more organized care, better drug benefit, more lower copayments, coverage of more items and services. So they are very, very popular. The Obama Administration has not liked it because its private insurance. They cut this program dramatically. About 200 billion over ten years. They put off a lot of the cuts until after the 2011 election. Frankly, now its coming home to roost because the cuts are going to go into effect in 2014. They are going into effect right now. Lets again in 2015, as you said, probably on the order of a 4 cut thats being planned. That will shrink options and push seniors that will make them unhappy. Its interesting. Some of the insurance stocks actually rallied today. Because of what jim said, the rumor is, the rumor i hope its not Insider Trading or any of that stuff is the cut on Medicare Advantage will be in the nature of 3 to 4 . No one can tell for sure. Humana did very well. United health care did very well, too. This was a piece and the piece was to cut some 700 odd million out of medicare. Thats going to wreck medicare. Dock ar dock are tos, health cares, medicaid plus is what people are calling medicare. That cant be good. For every dollar the taxpayers put into the Medicare Program, medicare spent 3. The program is unsolvent and we need to do certain things to rein that spending in. One of the reasons that it was targeted for cuts, for every dollar that we spend on the traditional Medicare Program, the government spent 1. 14 to reimburse Medicare Advantage plan. Obamacare why is that necessary . As jim noted, Medicare Advantage does set up a lot of private competition which should control costs. Thats exactly right. So the theory before had been the private insurers need that extra 14 to compete effectively with the government which has leverage and accounting tricks and things like that. But what is so interesting, even with these cuts that have been going into the Medicare Advantage, the Medicare Advantage of insurers are doing well. The enrollment is up 9 , despite all of the cuts. Half the people who fuelly enroll in medicare are signing up for Medicare Advantage. This is the thing. Its not necessarily the antiobamacare talking point, to say that the cuts are doing fine, but heres the longterm pro market point about all of this. If you could have parity in the way that you pay for single payer medicare and privately delivered medicare and privately delivered plans have better quality and lower costs, that proves that private insurers can do a better job of privatizing the whole system. Thats the burr under the obama saddle . Absolutely. Medicare does pay more to the private plan but thats because its not a real competitive program. On an apples to apples basis, the medicare is providing the benefit on average 92 of what the government pays under the traditional program. They are paid more than that. They give extra benefits out. When theres a strict, fair level playing competition, larry, Medicare Advantage plans have won and will win. Thats why seniors like them. Thats why they are going into them. Thats why the Obama Administration doesnt like the program. I want to switch gears and go to this moratorium idea. I want a threeyear moratorium. First of all, im sick to death of these oneyear extensions. I think it causes more uncertainty, more chaos, wreaks havoc. Nobody knows where they stand. Businesses are not going to start hiring just because they get another oneyear extension and the individual mandate what is in and what is out there is in shambles regarding the Insurance Companies as well as the customer. So lets take a timeout. Thats all im saying. You know, the moratorium doesnt mean you erase, oppose all, everything in obamacare. It just means youre going to go back to the drawing board and take a look at this stuff. Mandates, policy cancellations, insurance bailouts, taxes, there are about 25 new taxes. Why cant we do that . Why cant the congress say, you know, mr. President , youre unlawful. Youre changing thissen p plan. So you know what, well make it official and put it on hold. What is wrong with the moratorium . In the summer, when the Obama Administration delayed it for the first time and it created an avalanche and unilateral actions, the house of representatives passed a bill that would permanently delay or repeal the mandate and the employer mandate but that died in the senate. The votes, getting people on the record, supporting it, theyve got democrats in the house supporting the republican bill on that because they saw this as a big problem. Thats right. Jim capretta, you remember in to 13 when we were talking about repealing obamacare, im not calling for full repeal. Theres a few things in there that might work. I dont know. B but obama said at the time, dont mess with me. There arent going to be any changes. No changes. So what happens . He himself go out, goes out and makes huge changes to the individual side, to the business side, to the verification which is still not existent and they are layering on taxes. Okay, fine. If he wants to make changes, lets do it lawfully and let Congress Come up through the regular process of legislation a bill. Lets just put the thing on hold and lets do it the right way. Absolutely. First of all, on two things, as a rallying cry for the 2014 election, youre right. A clean message of, hey, we should stop this, take a break, take a hiatus a. Moratorium, let cross do a bipartisan plan to fix American Health care. I think that would be a winning message. Second thing, we should be putting a lot of people on record in both the house and senate about what they are for in terms of delays and un latter action by the president. Why shouldnt they pass a legal requirement that all employers are delayed in terms of the employer mandate for two years . The president did it unilaterally. Why wouldnt they accept a change to make it official . I think that would bring a lot more certainty to the marketplace. Thats right. And also you could add the individual mandate. Thats why i put it at three years. Two years may not be enough. Ill give you the last word on this. Theres a lot of good republican ideas out there. But unfortunately, if you dont have the bully pulpit, its scattered shot. On the other hand, you could rally around a very simple moratorium, timeout, lets go to the instant replay camera and take a better look at this. Mr. President , you violated your promise, not just about doctors and insurance but you said there would be no changes. You yourself made a lot of changes. Many people think those changes are illegal. Why not go and vote . I want to see a vote in the senate. 2014. This is a campaign issue. Moratorium. In the senate its hard because democrats control the senate for now. Got to do it. Its hard to do it. Theyve tried. There may be situations where mcconnell can figure it out. You think kay hagan wouldnt love to have a moratorium, gets them off the hook . Their rearends are really on the line. You definitely have a point and i think in general the 2014 message is going to be along the lines that youve mentioned but its also important to talk about what we are for and thats hard to do if you set it scattered shot. There you go. You can keep pecking away with what youre for. I agree. I want that. I want that. Im just saying, lets go to the instant replay camera. Lets take a time out. I love that word, moratorium. Jim capretta, thank you. Anothnow, another outrageou plan. The Obama Administration has tried to send the fcc into newsrooms and editorial meetings and print and broadcast and online, all in order to pressure news organizations to cover certain stories. But an fc c commissioner blew the whistle and we are going to debate and talk about what the hell the fcc thinks it is trying to do. Im kudlow. Well be right back. When you order the works you want everything. An expert ford technician knows your cars Health Depends on a full, complete checkup. The works. 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Coach calls her a team player. Shes kind of special. She makes the whole team better. Hes the kind of player that puts the puck, horsehide, bullet. Right where it needs to be. Coach calls it logistics. Hes a great passer. Dependable. A winning team has to have one. Somebody you can count on. Somebody like my dad. This is my dad. Somebody like my mom. My grandfather. Im very pround of him. Her. Them. Pub electric outcry forced the fcc to suspend a controversial study that is at least yet another attempt to control and take over a key sector of the economy. In this case its the media. The study sending researchers into news organizations to find out which stories to run. Really. Fortunately, republican fcc commissioner pai blew the whistle on this. Blowing that whistle set off a firestorm. The key point, quote, the government has no place pressuring Media Organizations into covering certain stories. Right, end quote. Here right now is blake zeff, former president ial campaign and right turn blog author. Jennifer, this is too easy for you. Ive got to go to blake first. I want to hear what the obama defense is for this insane fcc initiative, which has been stopped. Well, ill start off with my view of this and then ill get into what i think the defense might be. My view is that its bone headed, any time you get the government in the way of what a Media Organization is doing is not a good idea. I dont want the government of any kind to what we are doing. Putting that aside, heres what i think the thinking was here. According to the Washington Examiner and a few others, it looks like what they were trying to do was promote womenowned and minorityowned media organize sgra organizations. The idea was to get some idea about what organizations are out there and build a case about why we need to help these other types of businesses. Hold on. What blake said is true but i think thats the back end of this story. Thats coming later. They are going to want to take more surveys to see about minority ownership and female ownership. Thats ownership. This thing was you know, litt little fcc bureaucrats with clip boards and asking people, for example, why didnt you cover this story or why didnt you cover that story . You cant do that. This is america. Well, i guess the obama people thought it was a good idea. You dont need to go into the newsroom. You dont need to question people why youre covering a train wreck as opposed to an obama scandal in order to help women and minorities and other businesses. Its screwy. Weve never had to do this before. Weve always had other functions, whether republicans like them or not, to assist women on minorityowned businesses and never before has the administration thought about going into a newsroom to spy on what they are covering or not covering. I think Congress Needs to exercise some oversight. Thats what they are there for. They need to figure out what the idea was and figure out how it got this far. This is really ridiculous. Youre right. It is an easy one for me, larry. Blake, i think this is aimed at certain, quote unquote conservative news outlets. These outlets, some of them are on cable. Some of them are on web tv. Some are internet streaming. I think that was the motive here and i want to ask you i think hes coming on the show tonight ajit pai. There he is. Hes the fcc commissioner and republican appointee. I think him blowing the whistle put an end to this. What do you think . Well, its funny. Just to back up a little bit when we talk about this big conspiracy and how they are going after other networks and so on, this was a confidential Anonymous Survey that had no consequences attached to it. It was done anonymously. Its not like they are going in with the clipboards and saying, you can do that story. With all respect, blake, and you know i have i think youre terrific. I think thats exactly what they were going to do. I think they would come in with clipboards and check off stories. Remember the fairness act, the fairness balance act which ended during the reagan years . I think this is a modernized story of that. Every pro has got to have a con. Every cons got to have a pro. Thats crap. Weve come way beyond that because we have so much competition now. Blake . Yeah. Look, i dont think its exactly the same thing as the fairness doctrine act. That was a totally different media environment that we had back then. That was when you had two main broadcasters of the day and there was news and information that you could get. Now you can go on the internet and get whatever information you want. So different environment. This is a different thing. Were all in agreement. Jennifer, you, and i all agree this was silly and bonehead. It was a survey and it was done poorly. I agree with jennifer, it can be legitimate to promote womenowned businesses. Thats one of the things that we do. They have counseling groups and things like that. The way that you know it was poorly done and it was a debacle is because when they put out their statement, the fcc made sure they had a scapegoat. The new guy, fortunately, folded like a cheap suit. Thats good. But the trouble with cheap suits is, its hard to throw them away and i want to he nknow, jennifeo you think this episode is over or do you think well hear from the fcc about this crap . One thing that bothers me about this administration is that nobody ever loses their job for doing anything stupid and theres no accountability. Why dont we figure out how it got there. Congressmen and senators, get to it. You know, they dont take any antibiotics to deal with these diseases and i mean personnel. Youre exactly right. Jennifer, thank you. The man who is responsible for making sure that this plan was side lined for now is going to join us tomorrow night on the kudlow report. Ajit pai blew the whistle on this thing. Additional efforts to impede First Amendment freedoms. I dont think they are finished. I think more mischief is coming. But we will see. Were going to head back to the stock rally today. The correction seems to be gone. The broad base s p 500, guess what, its now flat year to date. So were going to talk about your money. Next up, stay with us. Lots more to do. [ male announcer ] whether it takes 200,000 parts, 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. Whether its building the worlds most advanced satellite, the space station, or the next leap in unmanned systems. At boeing, one thing never changes. Our passion to make it real. Our passion to make it real. 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A strong start to the week on wall street. Dow is up 104 points. Nas gained 30. S p added 11. What caused this rally . Some say its because of calmer ukraine and emerging markets worldwide but how about mothers milk of stocks . We welcome back ron and we bring in jeff kilburg. Ron, youre typical of this mothers milk of stock profits. Look at these results from the financials today. 79 cents versus an expected 67 cents, thats a huge beat. You even beat on revenues. 565 million versus 541 million. I didnt think a revenue beat was possible. So all im saying is, we have record profits as a shared gdp and as a level. Why shouldnt we have record stocks to go with it . We do have record stocks, larry. Were within an eyelash of an alltime record of the s a p 50 so we do. The real question is where are we going from here and can we get to 100, 122, you know, per shares of earnings and whats a good multiple on that . I think stocks are fairly valued and its not like were going to be up 30 this year. Ron, youre definitely right. But jeff, on the other hand, you could argue that the market, after last years humongous gains, is consolidating and its consolidating at the high level and all of the bears and short sellers who were so excited, my god, you could hear their hearts thumping over the tweets and the internet, those guys are wrong. Were back to flat. We have consolidated a humongous gain. So now we may be building a base for another gain. What do you think, jeff . I disagree. I got to about ron. Ron is an all world ceo. Thats an anomaly. Produced by the fact that its produced by where the market is. This is a great opportunity. Im hearing the heartbeat from the bears after today. Why . Because we saw a technical target. What happened in the last hour of the trading session, it closed below the last high. Thats a bears divergent. We will see this market consolidate and go back down. In january it wasnt that long ago. Market was going to he lcll in hand basket. I think volatility is back and were going to see a continued pinball on the stock market. Ron, look, jeff kilburg is so smart but he gives me this different language. He gives me this technical stuff. I didnt get it when i worked on wall street and i vaguely get it now. If the economy expands at 2. 5 rate this year, im saying some weather and some not weather, 2. 5 , thats been the run for the last 4 1 2 years, thats enough to produce more profits. Why cant that happen . We can rise 10 . You get the last word. Look, larry, corporate profits are at an alltime high of gdp. They can expand but we need to have revenue growth. We need more to drive this market higher. I dont see explosive profits. This market is fairly valued. Sorry. Look, we did beat on revenue. Im not going to complain on that. You beat on revenues and jeff kilburg, i hope you werent shorting on the stocks. Ive got to get out of here. 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