In the kudlow report beginning right now. Good evening. Im larry kudlow. This is the kudlow report. Ku we are live here, 7 00 p. M. Eastern, 4 00 p. M. Pacific. All right, in her First Press Conference as fed chair, janet yellen sounded more hawkish than expected. Proud of her. B reporter larry, stocks traded lower and stayed lower. The dow ended down a little more thanit 100 points though at one point it was down more than 200 points. Traders cited several reasonspo for d todays selloff. First, during her press conference, her first one, fed chair woman janet yellen said six monthsle is shorter than so expected. Shortterm bonde yields, particularly yitwo, three and fiveyear notes jumped notably on that comment. Sectors like yu tilties and emerging markets were the biggester decliners. It also confused the trade attorney General Community somehow. The fed lowered the upper range of expectations for gdp growth in 2014 to three percent from 3. 2 and did the same thing in 2015 and 2016. Gold dropped, ending down more than two percent. Yellen said rates would not be rising for some time, likely more than a year but higher rates are indeed coming and if the economy isf improving, i certainly welcome that. Back to you. Great stuff. Thanks to bob. Now, if Janet Yellens intention was to prepare Financial Markets for higher, normalized Interest Rates, then she deserves a lot of credit. She was more hawkish than i would have thought. On the other hand, theres still this business of now qualitative easing and a basket full of job indicators that, frankly, nobody is going to be able to decipher. Forward guidance . I think itid needs rules, not se vague discretionary and subjective opinions that will drive wall street crazy. Were going to explore this. National center for policy analysisal and former dallas president robin mctier joins us. Steve moore and cnbc contributor rick santelli. Rick, how did you read yellen today . I dont think think she said that much different than we heard from her before. The markets read a lot more into her than i did and they went down on something that they might as well have gone up on. If you say you might normalize sooner than people thought, that means the economy is improving. The market should haveom applaud that. Rick, i saw this quote from leon cooperman. I think it was via doug cast but cooperman says if people dont believe oron dont understand tn Interest Rates have to go up, they shouldnt be in this stock market at all. I dont think a one percent Interest Rate is any big deal. Im going get your take. Was the impression that janet yellen was hawkish in your view . No, definitely not, larry. What we saw today in action was some of the nworlds biggest bod funds and their positions being long, threes being long, fives. They like to be long the heart of the yield curve around that fiveyear sector. If you look at threes or fives, they came out like a rocketship with higher yields, lower prices. I think that the Market Reaction tainted what followed with regard to why did the markets move. I didnt hear anything in the press conference. I didnt read anything in the statement that would have me in any way alter the time line, and i think you nailed it. You said Forward Guidance is kind ofda vague. The reason its vague is because the notion of how exactly theyre going to get us back from mars to the u earth is kin of vague. I want to come back to this vague forwardo guidance. Steve moore, i think to some people on wall street, if it was a slip of the tongue or deliberate, ms. Yellen said in responseai to a question, how sn will you raise Interest Rates after you finish getting rid of buying bondsf after quantitativ easing. She kind of paused and hesitated and then she said six months. Which means by the spring or the middle of next year, okay. Now, i agree with you guys, its no big gudeal. Do you think its a big deal . I think it was a big deal actually. Tough on janet yellen. I think you have a little bit too that shes been a dove. I disagree with rick. I thought it was an important announcement today that maybe shes notbe going to be quite a doveish as we thought. Shes talking about higher Interest Rates, continuing the tapering. Someone nt sound like whos going to be an inflation dove and i applaud her for that. At this point i want to error on the side of pulling back on this money. So you dont agree with the market monitorists and others who want an easier policy, more money supply and so forth . No. Do you agree with that school of thought . Youre quasi. I agreere with them that Monetary Policy has not been as easy overee the last few years most people think. The money supply has really not been growing thatea rapidly. Why is that . Because banks have been holding excess reserves in very large quantity. And why is that . Partly because theyve been beat over they head and shoulds by the u. S. Government and loan demand is probably not what it should be. That could change of course. Rick, i probably dont have this right, but i just made a couple of notes. Ms. Yellen was asked about employmented indicators. 6. 5 unemployment is no longer the Forward Guidance for raising Interest Rates. She said, okay, we will still look at the Unemployment Rate, the broader marginal Unemployment Rate, well look at the Labor Force Participation rate. She talked abouton the durationf employment. Other people like education la zeera of stanford thinks that shell look at hours worked. In other words, rick, if you look at like six things, how is anybody going to know what you want tow do . Theres no anchor here, theres no north star here. This is my problem. Qualitative guidance is kind of like how janet yellen wakes up in the wmorning. Lets take both of those issues. When i think of Forward Guidance i think of marshmallows. Its spongy, not well focused. But when were talking about all these unemployment metrics, im sorry but you dont think they were looking at all of those things a year ago or two years ago . This is one of my biggest beeves with ben bernanke, the entire fomc committee and janet yellen. The fact that history has been changed in manyas ways by the dropping of the Unemployment Rate, the way it dropped under 8 right before the election, this has been big. The American People want things put in a simple piece of paper. They want things simple. Its easy to understand. Unemployment goes down, that should be interpreted as good. People like myself have been saying for years its not nearly as good as the advertised rate. These fed knows this and ben bernanke knew this. Why are they only now talking about it . Because it happened to get to a threshold that they dont want to defend. I dont buy it. They should look at how many people are working. Nobody believes that the Unemployment Rate is 6. 7 today. I mean, theres nobody. The real Unemployment Rate i think the American Voter believed it in november. She did mention if you add marginal workersdd and people w have jobs they dont want. Thats 12. 5 which is probably closer to the truth. And then what ed said in the wall street journal the other day, hours worked. The problem she had was, she was stuck with a 6. 5 number that we reached by having Labor Force Participation change, not unemployment. The question i would ask, rick, ill go to you, you got some yjuice, rick, i think youe on tophi of it tonight. Why should we target the Unemployment Rate for Monetary Policy . Look, the Federal Reserve creates thmoney, they produce money. The fed doesnt produce jobs. Jobs come from tax incentives, regulatory burdens, overspending by the federal government. Whether youre pro business or not. The fed cant manufacture jobs. This is the problem i have. Theres like this tradeoff between inflation and unemployment. I dont buy it, rick. Ive never bought it. I agree with you and i think its i congresss fault in part. They should take that dual mandateua and chop it in half,. B, more important to the issue here is that if in some indirect way they could do a cost benefit analysis and say that in any significant way what theyve done since the crises has truly helped directly into the employment situation, but they havent. They might as well target the orbit of mars and say until it gets xamount percent closer to the earth were going to keep doing quantitative easing because in my opinion the correlations are about the same. I would make the point that theha fundamental problem with e American Economy today is not monetary. Its fiscal, its debt, its regulation. Its on the supply side. Certain president s lashing out against business. Its obamacare. Exactly. All those things are killing jobs. Its tax incorporates. Youre not going to be able to correct those problems like obamacare, higher tax rates by printing more money. Thats not aor monetary issu. He ought to just say that. I dont know if the market reacts to thise or not but the idea that these fed governors, 13 out of 16 think the overnight target rate will be one percent by the end of next year. Is that a big deal . How can that be a big deal . It should be about four percent. Its not a big deal. Its part of something new, part of Ben Bernankes transparency that they started doing that. Theyre going to change their mind at every meeting. Nobody is going to stick with where they put the dot a year ago. No one is going to know. No one up here is going to know. It will be the great guessing game. We need rules. We do need rules. Whats wrong with the john tailorhn rule. It says the fed funds rate right now today should be 1. 5 . He said, look, its notto an mee anymore. The emergency was five years ago. Or other people, myself included, would like the fed to keepik one eye on a basket of commodities, maybe stabilize the dollar. I acknowledge theres no inflation, but rick, why shouldnt the fed have rules . Listen, every aspect of our society and our economy has been hampered and definitely hurt because the rulebased society we once knew 8 to 10 years ago is gone. Whether its on the federal government and i the regulation side,ul changing the rules, affecting bond holders, the games going on with fanny and freddie. Can you imagine if we had a predictable rule a like the tayr rule and investors would know whats coming around the next bend. Thats the way it should be. Once you. Move into micro management and turn the fed into a quasi bureaucratic post office its going to be very hard to get back to any type of rulebased notion. I would add normal gdp. Thats what my monitorist friends believe. Right now its a lawless policy, steve. Ill give you the last word. Not having rules creates uncertainty. We know the markets hate risk and uncertainly and thats what these policies promote. Lets move on. Thank you to steve and rick. The focus remains on the pilot of the missing Malaysian Airlines jet. Bizarre story. We have a live report on the latest on this continuing mystery. Later on, the white house admits at least 20 of obamacare enrollees havent paid their premiums, 20 , and now we learn that those premiums are about to get much more expensive and unfortunately were learning cancer care is substantially diminished. What other illnesses will go down thel same road. We have much more to report. Free market capitalism is the best path to prosperity. We need a sound king dollar. I am kudlow. We will be right back. Ill be ri. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Save you fifteen percent or more on car insurance. Ould yep, Everybody Knows that. Well, did you know the ancient pyramids were actually a mistake . Uhoh. Geico. Fifteen minutes could save you at a company thats bringing media and technology together. Next is every second of nbcuniversals coverage 0f the 2014 olympic winter games. Its connecting over one million lowincome americans to Broadband Internet at home. Its a place named one americas most veteran friendly employers. Next is information and entertainment in ways you never thought possible. Welcome to whats next. Comcastnbcuniversal. New developments tonight in the search for the missing malaysia air flight 370. Malaysian officials now say some files were recently deleted from the pilots home flight simulator. Nbcs Kerry Sanders helps us with the latest details. Reporter the u. S. Role is getting bigger by the day. The Biggest Development today, the fbi has been called in to review the hard discs on the Home Computers of the pilot and copilot. The more important focus is on the pilots home computer, the same computer he used with his home flight simulator. When malaysian officials reviewed the hard disc they discovered that files of past simulated flights were deleted and those deleted files were trashed just days before flight 370 disappeared. Those missing files could reveal a dry run, a rehearsal as it were of the route this plane took when it was supposed to be heading to beijing or this may simply be a case of someone who cleaned up his computers hard disc as part of routine maintenance. The fbi says it will take some time to restore the missing files if they can be restored at all. The majority of the passengers on board the flight were from china and their relatives are increasingly angry with the malaysian government. Victims relatives say they feel theyve been lied to. Their emotions spilled over and some threatened a Hunger Strike if they dont get information. The ntsb has revealed what limited data that do have and that agency is focused on an area west of perth, australia. The u. S. Navy has dispatched its aircraft to that area in the hopes that they will find some evidence of debris. Thats very interesting, that last point. Kerry, i dont know anything about anything. I want to ask you about general mccen ernies year that the u. S government knows much more than whats going on and we will hear about it in the next day or two. Do you have thoughts about the general . Hes a straight shooter. Reporter while the u. S. Government may have more information than theyre letting on, it would suggest deception on the u. S. Governments part, dispatching u. S. Navy planes off the coast of perth, australia and being due plis tus. Im not sure its really a reason that the u. S. Government would want to create this sort of secondary belief system when they know more than at least some people believe they do. Sending the fbi in, thats really a very aggressive move. Reporter it is. There are a lot of different nations here and the plane was heading to china. The Chinese Government offered to help. It was the malaysians who turned to the fbi and asked for this specific technical help. Many thanks. Folks, this is something we havent said enough when covering this story. Our thoughts and our prayers go out to the families of the people who got on that flight. Very, very difficult. God bless. Now, lets move on. We have some other major Financial News today including an Insider Trading indictment and a huge settlement for toyota and the justice department. We have those stories and more and thats up next. D thats up. Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro, you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Welcome back to the cut letter. At least five people died when gas pedals got stuck on faulty floor mats. As part of the settlement toyota admits to misleading customers about the problem. Attorney general eric holder said this case would be a model for future cases involving similar companies. That seemed to be a clear message to General Motors which is currently dealing with an investigation related to its handling of a safety issue. A Morgan Stanley broker charged with an Insider Trading scheme that earned profits of 5. 6 million, the law clerk, steven metro, had access to confidential Corporate Information through a middle man. He would send ticker symbols written on a piece of pace or napkin to the stockbroker. The weirdest part of the story, the middle man would destroy the evidence by eating the paper containing the stock tip. Congressman ed marquee is accused of trumg up the claims he made about herbal life. He may have overstated the losses by his constituents. Hedge fund manager bill ackman has a huge and well known short position in herbal life and has been lobbying investors to investigate the company. Marquee is the only one who did. Ackman says he has never given direct donations to marquee. A lot of interesting stories. You got some hot stuff tonight. First of all, i dont know what senator marquee is doing getting involved in herbal life. Thats point number one, whether ackman gave him money or not p number two is this, eating the evidence . Even then they got caught. You trumped me. If hes eating the evidence, how did they catch him . The truth always comes out. I believe the middle man recorded conversations between the two men and thats how this all came out. Did they make any money . I mean, they did initially. You quoted 5. 5 million. Right. All right. There you go. Insider trading. Thank you very much. As always we appreciate it. The latest round of bad news on obamacare includes rising premium costs and more evidence of very poor choices for Cancer Patients of all people, Cancer Patients. Were going to convene our panel of obamacare experts next up on the kudlow report. Co ive always found you dont know you need a hotel room until youre sure you do. Bartender thanks, captain obvious. Co which is what makes using the hotels. Com mobile app so useful. I can book a nearby hotel room from wherever i am. Or, i could not book a hotel room and put my cellphone back into my pocket as if nothing happened. Hotels. Com. I dont need it right now. But when we start worrying about tomorrow, we miss out on the things that matter today. At axa, we offer advice and help you break down your insurance goals into small, manageable steps. Because when you plan for tomorrow, it helps you live for today. Can we help you take a small step . For advice, retirement, and life insurance, connect with axa. It took a lot of jugglingnt, to keep it all together. K. For some lowincome families, having Broadband Internet is a faraway dream. So we created internet essentials, americas largest lowcost internet adoption program. Having the internet at home means she has to go no further than the Kitchen Table to do her homework. Now, more than one million americans have been connected at home. It makes it so much better to do homework, when youre at home. Welcome to whats next. Comcastnbcuniversal. Welcome back to the kudlow report. So, with the march 31st deadline looming, surprise, surprise, were learning more about obamacare problems. Insurance officials now say obamacarerelated premiums are set to sky rocket in the coming months. Get this, this is really sad, many top cancer hospitals will now be off limits on obamacare plans. That is unbelievable. Joining us now dr. Bill grace, hes the founder of grace oncology and attending physician at Lenox Hill Hospital in new york city. Forbes opinion editor and senior fellow at the Manhattan Institute and steve moore of the Heritage Foundation is back with us. Seattle cancer care excluded from five of eight networks. Maryland anderson cancer, less than half of the network. Sloan kettering excluded from seven of nine. The bottom line of these stories, only four of 19 nationallyrecognized Cancer Centers will be insured. Now, i think thats incredible. Its a tragedy. For these patients its a tragedy. Beyond the problems were already seeing in las vegas where a gentleman has a nearly half a Million Dollar bill when he signed up for obamacare and it turned out it didnt quite register and he had a lot of bills from his heart attack and hes got a half Million Dollar bill now because he thought he signed up. He was registered as signed up but apparently it didnt go through. See, there are a lot of things about this that bother me, including the life at stake. But the point is, preexisting conditions were supposed to take care of this stuff, but they dont have all the of the nations greatest hospitals. Thats the point here. Look, to summarize, only four of 19 nationallyrecognized Cancer Centers are insured. What happens to preexisting conditions on this coverage . They decided to save money, larry, because they tried to get this to parse all of this around diffusely. What happens is big, expensive Cancer Centers are big and expensive. The problem is we dont even know as individual practitioners, the people who pick up those extra Cancer Patients, we dont know what were going to be paid. The back end has not been finished yet. Some people are saying i dont know if this is true, bullbut some people are saying the Obamacare Exchange insurance for sick people, lets take Cancer Patients, are taking out medicines which are very important, that the list of medicines and drugs that are covered by obamacare is also being narrowed down so that Cancer Patients, for example, cant get what they need. Is that true . Its true but its not as pernicious as a lot of people are saying. In a market where people are shopping for insurance plans competitively, a lot of people are going to choose plans that have lower premiums and therefore have Narrower Networks of physicians and hospitals that are lower cost and narrower in terms of the drugs available. Sometimes if you want to go to the fancy m. D. Anderson or sloan kettering, the very top places, you should have to pay a higher premium. These are taxpayer Subsidized Health plans, to actually, the fact that this is happening, this is a rationalization of the market in which the taxpayer is being protected from higher costs. You should have the freedom to choose a plan to cover those things and pay more for it but the taxpayer shouldnt have to foot the bill. There isnt enough choice. A cancer patient is going to try to do what they do and get what they get but they should have choices. All these obamacare plans, its basically the same plan, just the financing is different. Dont forget, the most important obamacare plan is medicaid and thats the worst insurance system and its a system us mentioned these hospitals. You forgot to mention mayo which is the number one Treatment Center in the world. Mayo clinic doesnt take medicaid so what kind of favor are we doing . This is just cancer, but youre right, medicaid is a downgrade program. A lot of people say medicare, the policy intention of obama is to make that like medicaid plus and a lot of people say the obama exchanges is to make it similar so you have a single run system. Were getting close to the march 31st deadline. 7 Million People were supposed to be signed up. Kathleen sebelius said if we didnt get the 7 million this would be a failure. Right now were somewhere between 4 and 5 million. But 20 , as you said, 20 of the people who have, quote, signed up for obamacare, guess what, they havent paid premiums. If you havent paid premiums, youre not signed up for insurance. The number is probably half of where they thought they would be. Theyre never going to get march 31st. Between the exemptions and the hardships, theyre going to waive that. That comes right before the elections. The sweet spot is going to be in the late spring when these people start to analyze all the people who didnt sign up, all the young people who didnt come in there to lower the cost of this, and the premium is going to be unbelievable. Youre going to see sticker shock like you cant believe. I thought this was going to bend the cost curve down. It was supposed to be. How big are the premium hikes going to be nationwide . Its going to vary widely. The average, we dont know because we dont have enough data to collect but easily its going to be double digit. It might be 20 on average or 30 on average or double or trip the as some of the reports show. Sebelius says it will be a lower increase than we have had in past years. Thats ridiculous, totally ridiculous. It was actually amazing that she said that in testimony to congress. Shes setting herself up to look ridiculous when the actual data comes out. Well know that data before the election in 2014. Premium costs, these are Insurance Companies that need this revenue. Young people arent signing up, only 20, 25 of the young people. Correct me if im wrong, but if they renew cancelled policies, isnt that expensive . So the people whose plans were cancelled, some of those people are allowed to continue those socalled grandfather plans but theyre being charged more so theyre going to cost 15, 20 more but since theyre staying out of the exchanges, that pool is going to be sicker and its not going to be a death spiral the way a lot of people worried about but its going to be a zombie spiral. And there may be bailouts. On friday, and i owe this piece of intelligence to my pal betsy mccoy. On friday they kind of slipped in some new regulations that will make it easier for Insurance Companies. Theyre going to have more profits, spend a little more on profits than, say, advertising, but that also means we may have to bail them out, too. Sure. If were going to give higher profits to the Insurance Companies, who is going to make up the difference . The taxpayers. If you guys are right that these premiums are going to go higher than weve seen, there are going to be people with pitch forks in the street. Middle class families are already getting killed by insurance premiums. They bought into obamacare in the first place because this was going to reduce costs. As the costs are rising, this is a big problem politically in november for the democrats. The individual mandate is dead, i dont care what anybody says its dead, and the guy who buried it was obama. Thats right. It was his extensions and exemptions. March 31st is going to go by and theyre not going to have people paying. Theres a story in the journal today the irs cant collect this stuff. Theyre going to waive that, too. Affordable care act, larry, is the biggest oxymoron. Whats important is were talking about enrollment numbers, 5 million supposedly signing up. It looks like about three quarters of the people who signed up are previouslyinsured people who actually among the uninsured is going to pay who is 25 or 28 or 32 is going to pay 4,000 when theyre perfectly healthy . Nobody. They would rather pay that fine. Unbelievable. Gentlemen, many thanks. Dr. Bill grace as always, mr. Roy, i appreciate it. Back to the top story of the evening, a possible slip of the tongue from new fed chair janet yellen has sent Stock Traders in a wide frenzy today. Our stock expects about to give us their take on it all next up on kudlow. music defiance is in our bones. Defiance never grows old. Citracal maximum. Calcium citrate plus d. Highly soluble, easily absorbed. Gundyes n group is a go. Not just a start up. An upstart. Gotta get going. Gotta be good. Good . Good. Growth is the goal. How do we do that . I talked to ups. Theyll help us out. New technology. Smart advice. We focus on the business and they take care of the logistics. Ups . Good going. We get good. Thats great. Great. Great. Great. Great. Great. Great. Great. Great. all great i love logistics. Welcome back to the kudlow report. Im larry kudlow. All right, a wild day on wall street. Markets dropped on Janet Yellens hawkish tone, i guess. The dow is up 114 bucks. The s p fell 12. The nasdaq lost 25. Lets get right to it. Don lufken and r. Hogan, the new chief Market Strategist with wonder lick securities. The leon cooperman quote, i want to start there. If you dont know and you didnt expect this, then you shouldnt be in the stock market at all. Someone said, maybe by the end of next year the overnight fed fund rate will go up to one percent which is probably too low. Is that what drove the market down today, that nonsense . No. I think what drove the market down was just the endless nonsense in that unbelievably verbose fomc statement and that shamefully boring condescending performance by janet yellen. Oh, my god, she took the tailor rule and the evans rule and threw all the rules out, man. Shes operating on the pirates code. Remember the pirates of the caribbean where the villain says the pirates code is more like guidelines, its not rules. We are going without rules. Shes making it up as she goes along. That destroys market confidence. I think this is simple. We talked about exactly this, don, in our first segment tonight. I want to come back to art hogan on the same point. With all due respect, we now have qualitative easing, and shes got a barrel full of job indicators that is on her switchboard, dashboard, no one knows, no one could possibly know and as don said, there are no rules. Is wall street going to get hung up on that, or is wall street going to focus like it should on profits, profits, profits. This is unfortunately that when we had someone who is probably trying to be more clear became very opaque. You removed a benchmark which was a 6. 5 target on Unemployment Rate. Thats probably a good idea. You should probably target inflation more than unemployment. I dont think thats Monetary Policys job. I think at this point in time we need to step back and say, to your point, if, in fact, the fed fund rate is one percent by 2015, thats too low. Its not going to stop economic growth. Exactly. In fact, probably should be closer to three percent by the end of next year. John tailors rule says right now it should be 1. 5 . The emergency is over, okay. The economy is expanding. Now, the problems are fiscal problems, not monetary problems, but why did the street sell off . Was that the reason . Because they said its going to start six months after qe is over . To the extent you look at a market which has not seen much of a selloff in the last 100 days were at a precarious point. Last week we actually had five down days in a row, heading into a weekend where we actually knew what the results of a referendum were going to be. This week we have two spectacular days but nothing has changed except Economic Data got better. Housing data got better. We need to start focusing not bad. Really not bad. There are some problems with it, don, but because she hinted i dont know whether she slipped her tongue or not. She hinted that six months after qe would be finished they might raise the fed funds rate by an eighth or a quarter point. If i were in the business, i would try to focus on fundamentals, profits, the economy, read the newspapers for world news, stay out of emerging markets. I dont think this fed stuff is worth the paper its printed on right now. Its certainly not. For goodness sake, the thing thats wrong with the fed is its too loose and nothing today decommitted the fed from staying too loose for too long. The risk the investors are talking about is the idea that the fed is going to somehow slam on the brakes. This fed aint even tapping on the brakes. What are we even talking about this for . We ought to be changing the subject. We ought to be saying, larry, thank you for so many wonderful years of your service on this show, capitalists everywhere love you and thank you and i sure do, my friend. Thank you, i appreciate that very much. Art hogan, give me some jump in, dive in, tell the viewers. I have to echo that point as well. It has been a pleasure talking to you. Thank you. Youve both been great to the show. I think that if you were to look at this market and say whats the multiple on the s p 500 and how does it compare to history . Its very reasonable. There are some Companies Take out the bubble companies, the Companies Trading at crazy evaluations. There are some other companies that are trading at 10 or 11 times and theres great value. If you are a longterm investors and looking on the your portfolio and chased these stocks, sure, get out of those. But i dont think this is the time to be selling. Lets get one investment shot real quick. Invest in opportunities where the show is run by a really smart ceo. Right now i would be buying the russian stock index. Really . Really . Wow. Yep. Theyre cheap and the management is really smart. Okay. Im going to chew on that one. Thats a very interesting point of view. It was up 8 percent the last two days. Was it up today . In u. S. Dollar terms, yes. In local currency terms, slightly low. That was just a buying opportunity. Don and art, thank you very much. Folks, president obama has the power to really go after the russian oligarchs. We are going to talk to the man who is identifying some of these billionaires and showing just how we can hurt them the most. Stay with us. Kudlow report. 5 of you for 1. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Get a 200 best buy gift card during sleep trains big gift event with purchase of selected mattress sets. Or, get 24months interestfree financing. Sleep trains big gift event is ending soon. Your ticket to a better nights sleep these decisions by the russian leadership and the implementation of those decisions are resulting in and will result in further costs to the russian economy and to individuals and potentially sectors of the russian economy and enterprises the longer this goes on and the longer the russians flout international law. Yesterday jay carney told us that you should short russian stocks. I want to see them take additional actions. Vladimir putin continues to thumb his nose at the western eastern sanctions. Including our own. Tomorrow officials will discuss whether to push deeper sanctions against moscow or restrict russian natural gas deliveries. I believe our treasury secretary jack lew will be in that meeting. Time and again ive argued president obama should go off the oligarchs and their assets as well as other things. This great wall street journal op oped, our next guest agrees. One of the great things, not just your point of view, youre basically saying, go, go, lets do it. You name names which i just love, and im going to try this. Mckale pokorv owns the nets. Leonard faden own the oil chain of u. S. Gas stations and dimitri volorov owns something. They have businesses here, Bank Accounts here. If we put visa is on them and close them down, that would hurt . It would hurt a lot. Putin depends on people like that to support his regime. His regime has become increasingly undemocratic. Hes increasingly unaccountable. Were going to be living for him for a long time. I dont think hes have going to give up power. If were ever going to bring him into line its going to be now. Hes reducing his own vulnerable by having these people sell off their foreign assets, the reliance of the europeans on his gas. Theyll never do anything. So i think while his elite is still vulnerable to sanctions, we need to do it now if were ever going to do it. If theres a cash drain from russia, maybe he can go after he is oligarchs and maybe he doesnt care if they lose their assets or not. We did some work yesterday. In the moscow stock market alone, big american mutual funds are participants it was reported in the new york times. They got about 325 billion in the moscow stock market, okay. Russia itself raised about 400 billion from the london markets using depositary represents. If we had banking sanctions, russia would be shut down financially. Of course we wont do that but youre right. Theres no reason not to stop their natural gas sales. Theres other places to get it. Theres lots in storage. There are ways to hurt them but i dont believe that we will do it and i believe we will pay a price because putin is going to become increasingly unpredictable and aggressive as he has to cement his dictatorship at home. What do you think is Holding President obama back . Everybody is talking about these things, not as elegantly as you have. We had bill crystal on the show and some others and everybody is talking about this. Jay carney tells you not to buy russian stocks. He cant do it without the europeans. Most of the assets are in europe. The oil will find its way to the market somewhere unless we all get together and refuse to buy it. I dont think he wants a bigger fight with putin. Were going to let crimea slide, lets face it, and we will be grateful to him if he leaves the rest of ukraine alone. Will he . Hes not going to grab it militarily. Hell continue to meddle and well pretend that we dont like it. You write in your column that increasingly hes a dictator. Hes closing down the remnants of the free press. The elections are phony. Hes going to run again. Hes changed the nature of the whole russian country. And like a lot of authoritarian people, he cant afford to give up power because hes got a lot of enemies. There are a lot of murders and thefts that are going to be investigated by whatever regime comes next. So, like others, these people, if they let go of power, they find themselves facing criminal charges. He will change the constitution, open the door for reelection i dont know how many times . Or maybe hell suspend elections. If you get into a nice enough conflict with the outside world you have a good excuse for saying we cant afford what youre saying is its cost free. The west wont make it costly. Thats what blows my mind. I dont want a war, i want financial and trade sanctions and banking sanctions. For 15 years weve been living with putin and decided hes a man that we can do business with and there might be someone worse. We cant do business with him. Weve done it. But look how he repays us. I believe it will get worse. Im rooting for president obama. Im hoping that obama will pull rabbits out of the hat and show toughness. Jimmy carter saw toughness during the iranian revolution and russia. Im hoping obama does the same. I agree with you, go after the oligarchs. Watch his column. Its twice a week in the wall street journal. Thats it for tonights show. Im kudlow. Thanks for watching. Now is the time. Sanctions an banks. Sanctions take away the oliga h oligarc oligarchs. Action from america. Well be back tomorrow night. K. And hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. [ telephone rings ] [ shirley ] edward jones. This is shirley speaking. How may i help you . Oh hey, neill, how are you . How was the trip . [ male announcer ] with nearly 7 million investors. [ shirley ] hes right here. Hold on one sec. [ male announcer ]. Youd expect us to have a highly skilled call center. Kevin, neill holleys on line one. Ok, great. [ male announcer ] and we do. Its how edward jones makes sense of investing. Impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses narrator in this episode of american greed. Maurice Michael Mccant is a convicted bank robber who claims hes gone legit. Mccant carried himself as somebody who was legitimate. He had the swagger of a rap promoter. Narrator mccant offers 30 returns on investments in his rapconcertpromotion business. He actually said to them, you can stop the bleeding that youre suffering in the market if you invest with me. Narrator . And investors are forking over their entire nest eggs. I liquidated my i. R. A. , and it was to the tune of a Million Dollars. Narrator and later. Mark anderson holds millions of dollars worth of fine wine in trust for clients. Until greed gets the best of him