Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. All right. Last week, everybody went into panic and sold, and im giving you permission tomorrow if you would like to sell in an up tick. Because thats buy low and sell high. There is always a bull market somewhere. I promise to try to find it for you on mad money. Im jim cramer. I had see you tomorrow. Stock markets continue to roar on the strength of Ben Bernankes second straight dave easy money testimony. Dow soared another 175 points and just 89 points from its all time closing high. You know what else . I still believe stocks like the budget cutting sequester. Limited growth is good for stocks. Chris christie brings Online Gambling to new jersey in order to throw Atlantic City a life line and collect some revenue sos they can cut tax rates across the board for everybody. This is the kudlow report and we begin right now. Before we jump in let me give you my continuing optimistic view of this market. Yes the fed remains easy. Thats huge. You know what else . The there are is strong. No interests in gold. Good numbers on homes sales, Consumer Confidence and core capital goods. Profits are rising modestly and finally my contrary view that the budget cutting sequester which will limit government is pro growth for the economy and winds up being pro Wealth Creation for stocks. I think the sequester is part of the markets rally and that sequester is only two days way. The markets know all about it. So im still playing this from the optimistic side. Let us get into focus on that very sequester. Cnbc contributor robert costa joins us live from washington. He has the latest news on the sequester. Theres some weird stuff going on out there. Help me. First of all, a sequester is due on friday whenever the president signs it or whatever and he decides to wait until friday to have a meeting with the republican and Democratic Senate and house leadership, i dont get that. Why didnt he meet today . Why didnt he meet yesterday . Why didnt he meet six months ago . Reporter Single Player on the court can see that clock ticking down. No one wants the ball. This impasse continues. They will meet at the white house on friday. The top congressional leaders. My inside sources on capitol hill tell me they dont expect any kind of a deal to come out of that meeting. This is show horse stuff. Reporter thats right. They will run out the clock and hope the president blinks. Thats the republican perspective im hearing here on capitol hill. They wont, republicans add any kind of revenue to a sequester deal. As long as republicans hold their ground this impasse will continue. The democrats will have lets see two votes im told tomorrow, two senate votes. They are both going to go down. More show horse stuff with tax revenues. Reporter harry reid will allow two votes to come to the senate floor tomorrow. Both are expected to fail. The president can replace the sequester cuts with his own cuts. Republicans have their own reservations about the republican plan because they dont want the president picking his own cuts. Im going to get into that with jim demint. I dont like the sound of that at all. This is unbelievable. White house denies it. Then they blame the homeland security. Department so napolitano denies it. They have released hundreds of illegal immigrants, okay. They just released them in order to save money for the sequester. Now they are denying it. A, somebody must have released them and this is one of the dumber things in a dumb scenario. Reporter a lot of republicans think the white house or the administration in general is leaking out this information that illegal immigrant physician the sequester happens will be released. They feel this is another white house scare tactic. Ill say this for the president. Hes running quite a pr campaign on the sequester and republicans fear they are losing that messaging war. They are going to get the sequester on friday arent they . The future holds i dont know but they are going to get it. That end game is over. Reporter larry they are listening to you. They said let the sequester happen. They see your show and they say the sequester is a drop in the bucket. It is. Its a drop in the bucket but even little drops of spending cuts are good. I thought we believed that. Our team the free market conservative team. Thanks buddy we appreciate it. Now we really have a distinguished panel tonight joining us on set for the full hour. Democratic strategist, a former clinton adviser. Dick morris, coauthor of here come the black helicopters and returning star parker founding president of urban renewal and education. Welcome. Dick morris, explain to me this. Detainees being pushed out. The world is going to hell in a handbag. The military cant function. Kids wont eat, they wont be able to go to school. What is obama thinking hes accomplishing with all this gloom and doom. He knows hell lose the sequester fight because congress does better than nothing any other institution on earth. The sequester takes effect. The reason hes making a big fight or sequester he knows his 300 billion of tax increases are going to mess up the economy. He knows that your optimistic projections are not going to happen because of his tax policies. So what hes doing is inventing this boogieman, 85 billion of sequester. It wont be 300 billion of taxes or 200 on payroll or 70 on rich or capital gains. 85 million of cuts. Spending terms 45, less than that. So small, its so small it is one quarter of 1 of gdp. So youre saying hes going to blame a double dip recession on this . Were all to discussion on who wins the blame game the president corning. Thats not the issue. The question is what your blaming . I believe obamas concern is not to blame the cuts, not to blame anything but to blame the bad Economic News that his tax increases are going to force on the poor little old sequester. Ill give you equal time. I dont know what you all are talking about here. Sequester. I know youre talking about sequester. But the president , you know, the president i think is handling this perfectly. If you listen to this show, this is the only place in america where youre raising these kind of concerns. A couple of other shows. I dont want to name them. This is the only one on a respectable network. Seriously, all this doom and gloom, all these dire projection is getting goofy. Today there were news reports that the cbo and own omb do not agree with these dire numbers that are coming out. We dont know what will happen. This whole business of bringing the undocumented illegals, leaving them in Detention Centers thats scare stuff. What does that accomplish . First of all i think the white house said today we dont know what will happen. That some of this will happen over time, its not going to be like friday evening all of a sudden, you know, terrible dramatic things will start to happen. Things will start to happen, you know, it may not be a lot of money in the context of the entire federal budget deficit but its going to affect programs. I think that, you know, you saw the immigration folks doing some good planning around Early Release on some people otherwise its good planning. If they dont that have money. Its not a catastrophe. A lot of these people im totally in favor of lightened immigration reform. I feel sorry this whole thing is falling on their head but it is. Everyone is pointing fingers like a circular firing squad. Star parker i got to go to you. Im from the old school. I think lower spending the good. I think limited government is good. And, therefore, i think ultimately if this thing goes through it will help the economy. What do you think . Think youre right. The scare tactics weve seen before. Dick and i just were talking in the green room when we met which was during welfare reform. We heard these same things. People will be starving and dying in the street. What will happen after the sequester which will happen, people wont notice. We borrow this type of money every 28 days. People will not notice. Were not going to see the sky fall. What will begin to happen the republicans will finally be in a position as they move into crs and as we move even further into the year to start getting into entitlement reform. Thats where the big problems are. Thats where if we get it right on this one. People will notice. How will they notice that two people now are not tethered to one tree. When you think about the Washington Monument still be shut down after two years. People still come to washington and they do something else. The people that notice are president obamas speech writers. I want to talk to my next guest, jim demint. Mr. Demint as always its great to see you. May i ask you a question as a former senator. Theres this stuff circulating now in washington as though its not complicated enough, republican senators want to abandon the sequester at the last minute and give all the authority to president obama so he will make the cuts and if somehow he doesnt do what they want him to do they are going to mount a twothirds majority in order to overturn it. Now to me this is in a field of nutty stuff this is one of the nuttier things. Do you think the gop should hand the sequester over to president obama alone . No, larry. And they wont. They know the president s claims are laughable. You have a graph prepared by the heritage staff that shows spending is almost going to double over the next ten years. It doubled over the last ten years. The little red line at the top of that graph, the tiny little line is the difference the sequester makes. You can see from the graph theres no cuts in spending. In fact it will continue to increase in a rather dramatic pace. Dick morris has this spelled out exactly right, larry. The president is trying to make a case that the problems that were going to experience with the economy is because weve reduced government spending. But the real cause is his policies, doddfrank, tax increases but he wants to do what the europeans are doing. Complain about any cuts in spending are going to hurt the economy. Youve got it right, larry. Cuts in spending and planned cuts in spending will help the markets grow. Think so. This is a small 45 billion. This proposal, i dont want to dwell on it too much but this idea that i got wind of today about ending the sequester and turning the entire thing over to president obama and if you dont like it you can come back from an obama veto and got to get a twothirds vote to overturn it. It will never happen. Do your economists at the Heritage Foundation predict what dick morris is predicting that if this all goes through there will be a double dip recession. Including tax hikes. I dont predict any more. Designee suggested it. Youve had some good shots and some bad one. Seriously. Do your people at heritage see a recession coming . No. We have not projected a recession. There are grave concerns because of the policies in place, the tax increases that we are going to have at least slow growth or s stagnant growth because of these policies. The president expects this and wants to blame it on spending. Hes trying to discredit capitalism over the last four years and now trying to make a case that the only way to grow the economy is to continue to grow spending at a rather dramatic pace. Weve got to counter those arguments. Im going to be trying to do that all over the country. All you have to do is look at the graph to realize his claims are laughable at this point and im just amazed that some in the media continue to talk about these dramatic cuts when there are no cuts at all. If you had your druthers, jim demint, if you had your druthers, what would the heritage plan be right here and now you going to go on the road. Youre going to talk about that. What do you want to see happen . Whats the ideal policy reaching out to conservatives and independents and democrats around the country . We want to see the country on a ten year path to a balanced budget that want crates financial stability. Obviously we would like more rules based monetary policy. And we need we need pro growth policies like good simple tax reform and entitlement reform to give some certainty out over the next ten years so the business world, investors, folks will know what the government is going to be doing. Right now they dont know what to expect and most people expect us to bankrupt the country in the next ten years. Lets get together on the basic facts of this. The senator is quite right with that graph. The fundamental fact is that in 1980, onethird of the federal budget was spent on entitlements. Now twothirds is spent on entitlements. But the sequester affects Discretionary Spending which is 1. 03 trillion out of 3. 5 trillion dollar budget. Now when those sequesters go through on friday, they will have the effect of rolling back defense and discretionary domestic spending to the levels they were at when obama took office. Now people were not dying in the street then. Kids were not being denied an education. The world was not falling apart. Weve not had inflation over this period of time to render the pokey 970 billion well still be spending. Even after the sequester a lot of these agencies will have a higher budget. Absolutely. Let me finish this point. One other point. The sequester has been in large part is being nullified by the sandy bill, storm bill had 30 billion of increase Discretionary Spending. This discussion is crazy. Let me inject a little reality. Well have the sequester and see what the effects are. Sitting around the table here tonight and debating whether the effects are dramatic or not well know. But the main issue here no. Hes trying to say to americans there may be some real hardships and we shouldnt go about this. Maybe we should reduce spending and come up with a plan that want raises revenues. They just came up with a plan. Lets not do it haphazard or automatically but to have senator demint here say its all part of the president s plan so we can follow a european system, i mean that is just like crazy rhetoric. Hes suggesting its a conspiracy to make us a socialist state. Its crazy talk here. Got to get out. All it says, jim demint is saying by the way these are real cuts. These are reductions in the growth and i agree with that and the numbers show that. By the way, senator deminute its only 45 billion in spending thats all it is out of 3. 6 trillion ln and 16 billion. Our panel will hang out with us. Much more work to do. Were about to talk about the stock market rally. Another big move on the back of ben bernanke easy money but i have a small suspicion budget cuts may be a part of the positive stock market story because i dont want any of you to forget free market capitalism is still the best path to prosperity. Thats limited government. Im kudlow. Well be right back. I know what youre thinking. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Which is. Pretty much what weve always stood for. So if ydead battery,t tire, need a tow or lock your keys in the car, geicos emergency roadside assistance is there 24 7. Oh dear, i got a flat tire. Hmmm. Uh. Yeah, can you find a take where its a bit more dramatic on that last line, yeah . Yeah i got it right here. Someone help me i have a flat tire well its good. Good for me. What do you think . Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Stocks in rally mode. 89 points from its all time high. Bertha coombs joins us live. Reporter investors have sequestered themselves in a rally zone looking past the steal ma stalemate in washington. The dow closed at 14,075, putting the Dow Jones Industrial now just within 100 points of a record close. Were look at 14,164. It was a broad based rally fueled in part by ben bernanke on capitol hill signalling that the federals bondbuying program will continue perhaps into 2016. We saw all three indices move up 1 . Financials were the strong point le led by jpmorgan. Bouncing back today after an italian bond offering saw good demand. Materials got a boost from Mining Equipment maker joy global which reported better than expected First Quarter profits and was up today nearly 6 . Apple ceo tim cook should shareholders at todays annual meeting elves their pain with the stock continuing to decline this year. Didnt help. Apple shares sat out todays rally now off more than 16. 5 . Bucking the trend as well in a different way the Defense Sector in that hitting an all time high today ahead of the big budget cut deadline on friday. Sequester . What sequester, larry . You know what . Youre right. Com bertha coombs, many thanks. Lets talk to equity strategity at Seaport Group and chief investment officer. Abigail this is a minor point. I think the military budget cuts are going to be scaled down if not eliminated and, therefore, the defense stocks are on a terrific ride, abigail. I dont know about the domestic budget cuts i hope they leave those in place. But i think the military its a 30 day sequester thats all. Whats your take on that. Would you be buying these defense stocks . I havent taken a close look at the defense stocks so i cant offer much of an opinion. With regard to the sequester this is much ado about nothing. Shame on republicans and democrats not being able to figure out how to cut out 85 billion. As the country survived the original sequester in 1986 so well survive this one and relative to investors they are almost laughing this off. This is another piece of uncertainty were seeing in washington, politicians not being able to come to a good decision. It reminds me a lot of last year and year before. We had deja vu all over again. Artificial stimulus coming from the fed, uncertainty on the other side when you put the two together it create as lot of volatility. Thats what weve been seeing in the last month now. Let me get to don luskin. Youre a fed watcher. Bernanke couldnt have been clearer the last 48 hours its been easy money, easy money, easy money and im saying easy money with some