Limited choices. And just this afternoon we learned that the possible quarterback of the irs conservative targeting scandal is calling it quits. So now that lois lerner has retired, what does that mean for the investigation . All those stories and much more coming up live on the kudlow report beginning right now. Welcome to the kudlow report. Request im larry kudlow. Were here live at 7 00 p. M. Eastern and 4 00 p. M. Pacific so lets get right to the late breaking developments from the senate. Cnbcs john harwood in washington joins us with all the details. Good evening, john. Good evening, larry. Youre right. The news that both john cornyn and Mitch Mcconnell will not vote to sustain the filibuster that ted cruz is mounting raises the odds that a clean bill will go back to the house, maybe sunday, maybe monday. Now, we dont know whether thats going to play out exactly that way, but we do know that Republican Leaders believe this is a disastrous strategy. If you look at the poll that we had, the cnbc all america poll, we show ask americans do you want to defend obama care by 4438 they say no, but if you link it to a Government Shutdown or debt threat its 5919, overwhelming. Republican leaders know that the gop would be blamed for this, and harry reid was on the floor hammering that message today. Reporter a republican so intent on undermining both president barack obama and his Signature Health care law that they are willing to inflict Severe Damage to our economy in the process. America will know exactly who to blame. Republican fanatics in the house and the senate. Reporter larry, i can tell you the Democratic Leaders have a rising expectation that having voted to include the defunding provision in the bill that passed the house giving all those conservatives a chance to get on record, that john boehner will be willing to let that go to the floor and pass when it comes back. Well see. Boehners staff may send it back once again with another provision but there wont be much time to avoid a shut down again. Basically what youre saying is republicans dont want a part of a shutdown, this and many other polls say the same thing. Im going to speculate. You tell me what the odds are. It will be a clean bill based on the sequester spending levels, the lower sequester budget cut spending levels, and it will last until the middle of september, middle of december, sorry. Yes, and give them time to try to negotiate a longer term deal. Whether that could be an actual budget deal that has some entitlement cuts, revenue from a democratic perspective, ive continued to believe that that is so clearly within the bounds of what both parties want to happen that it could ultimately take place, but im one of the rare optimists on that store. More likely they will take some time to negotiate, monkey around a little bit with the allocation of sequester cuts and have a continuing resolution through the next year that preserves the sequester but not quite in the proportions, maybe alleviates a portion of it. Last one, john. Still the debt ceiling middle of october, end of october, whatever, and theres still a lot of talk. When i talk to sources in the Leaders Office in the house, theres still a lot of talk that a oneyear delay in the individual mandate, including taxes and other mandates and other regulations may be attached to the debt ceiling bill, so so the obama care battle is not over yet. No, its not, and they are talking about attaching that to the debt ceiling. That strategy is also not going to work because the president would never agree to that. That would in essence be nullifying his law because the individual mandate is really the core of the law, but it we may have another exercise in which conservatives get a chance to go on record voting to delay obama care in return for a debt ceiling increase and then boehner again would have to face a decision when a cleaner debt limit hike came back to have something to give his members, whether its a commitment on tax reform or something else, but they are not going to get that delay in the final product. All right. Many thanks, john harwood, appreciate the update. With the shutdown countdown still going in effect, president obama is wasting no time racking up the partisan jabs. The latest during his saturday weekly address. He bashed republicans for threatening a Government Shutdown and debt default if they cant shut off obama care. Take a listen to this. Think about that. They would actually plunge this country back into recession all to deny the basic security of health care to millions of americans. All right. Well, americas pointing fingers, too, right back at the president. The latest pew poll shows while 39 of americans would blame the gop if the latest budget battle leads to a Government Shutdown, 36 would actually blame president obama. 17 would blame both. But the president apparently will not negotiate. Thats what he told boehner friday night. I dont get it. Lets bring in our guests. Washington post online columnist matt miller and john fund, columnist for the National Review. Welcome, gentlemen. John fund, is my surmise and John Harwoods surmise correct now that Mitch Mcconnell and john cornyn have said no go, they wont do the delaying tactics, the cr will go back to the house clean, it will be a clean continuing resolution. Right, and i think the republicans, along with some democrats, will pass that out to keep the government going. I think that they are going to try to they are waiting for the senate, fiddle with the debt ceiling bill a little bit to see if they can attach something to that and say well live to fight another day in midoctober. Remember, harry reid may have his own surprise. I would not be shocked if harry reid put in a small tax increase to pay for higher military spending and put republicans on the spot in militaryoriented districts. In the cr. Yes. So hell break the sequester and try to sneak in a tax hike. The big goal that obama has is to get rid of the budget control act in the sequester which originally, of course, was his idea. If they try, that john could be right, ive heard those rumors, if they try that then the shutdown is still very much a threat and democrats could be blamed for the shutdown, so going from a clean cr to a complicated cr, break the sequester and raise taxes, thats a different ball game, matt miller. It is, but i i dont expect that. I think were going toned up with some version of a clean cr and the republicans will push the fight. You know, the next absurd fight to the debt ceiling thing, and well come back and do this in a little bit. Meanwhile, ted cruz is the one who gets the most mileage out of all of this as he continues his campaign for the presidency and suction up all the media and political oxygen there is. Well, even though its interesting, even though mr. Cruz did not get the kind of legislative strategy support he hoped he would get, the reality is, matt miller, what cruz has done with the help of others is hes kept the obama care issue front and center, and you look at polls, people do not like obama care, and they dont like the individual mandate, and they dont like the fact that congress is exempting themselves from obama care, and they dont like the fact theres no verification for obama care. In other words, cruz has put this issue on the front page every day. Youre right. Now we disagree about all the substance of obama care. I think adopting mitt romneys approach to using private insurers to expand Health Coverage to millions was a good idea. Put that aside, ted cruz, youre right. I think his role model is boeck barack obama who had a driveby visit to the senate, didnt stop to actually worry about passing anything and was immediately running for president. Ted cruz went to school on that. Realized so long as he can seize an issue and get immediate why and public attention on this, when i was in the green room, i was watching ted cruz, some ad campaign hes running, dial in and sign the petition to stop obama care. Hes a big winner though hes alienating his own republican colleagues. Well see how far he can push it. John fund, its not over until its over. Lets skip from the continuing resolution to the debt ceiling, okay. What i gather is that Speaker Boehner and majority leader cantor and others in the leadership are thinking very hard about attaching a oneyear obama care delay to the debt ceiling. They want to attach, that as a companion bill. Whether its a delay for the individual mandate or a delay for all of obama care. I felt all along an individual mandate delay would pass the senate. Red state senators up for reelection would vote for a delay. Whats your take on that, john . I dont think as early as october. Remember, obama care kicks in october 1st. If the headlines are really bad its possible they might be spooked but i think will take a couple of months of bad headlines. What the republican debt strategy requires though is a separate piece of legislation like what senator toomey had last year which says no matter what happens, if the debt ceiling isnt raised, our bonds and our obligations will be paid first and that will quiet down wall street and foreign investors. I think that has to pass at least the house in order to make the other part, a oneyear delay of obama care possible. I want to see the debt ceiling raised because i dont want to mess with that, never believed in that. Having said that, can they get, is there a legislative way to get a vote on a oneyear delay of the individual mandate . Let me say this again, john fund. Congress and its staff exempting themselves from obama care, that is really unpopular. The lack of verification, really unpopular, the lack of security for personal information, really unpopular, the exchanges themselves are nowhere ready. In other words, john, having exempted business and having watched labor squealing left and right, i think theres a lot of popular support, matt miller, for a delay of the individual mandate. Again, we just we just disagree, larry. Theres already exemptions for people for whom the mandate would be a hardship because their premiums would be too high a percent of income. Youre talking about 20 million to 30 Million People getting subsidies to buy private insurance if they are lower income, exactly the republicans rightly urged as a way to move towards universal Health Coverage. The idea that the republicans now are trying to pull out everything and throw everything, you know, but the kitchen sink to stop average folks from getting a little more Health Care Security is appalling. I understand the politics, but i just think its dead wrong. Matt, look, theres some elements of this, but not enough choice. Well another whole segment on this, the front page of the New York Times, there is not enough choice in this bill, there never was. A lot of people with illnesses are going to have to pay a fortune, an absolute fortune if they go out of network. Mend it, dont end it. They hate the mandate and the tax hikes. Go ahead, john fund. Larry, i think were seeing a lot of people that are going to get help with their private insurance, they are eventually going to be pushed into something that resembles medicaid, substandard medicaid, over half of doctors dont see medicaid patients. Thats the sting here of the just because you have insurance and access. Thats crazy. Doesnt mean you get treated. Its crazy. Spoken by very well insured people. Theres no reason to think that just like in massachusetts, just like in switzerland or holland, the subsidy of private Health Insurance is a way to give Health Security to folks. The idea that conservatives are walking away on the threshold of it being implemented from the idea they rightly suggested to the country is a sad commentary on where our politics. Matt, i grew up partly in switzerland, and i have to tell you bluntly this is not the swiss model. This is a medicaid model because the choices are going to be much more restricted than what you normally get in a private insurance subsidy model. Lets hear you guys come forward with ideas to improve obama care. He wont negotiate. Obama will not negotiate. Thats the key point. Thats the bottom line. Matt miller, john fund is right. Just as our show is beginning on friday night, we get a breaking news that the president is calling the speaker of the house to tell him he wont negotiate on the debt ceiling. Now why would he do that . We shouldnt even have a debt ceiling. That was the most obnoxious thing imaginable. John fund is right. Since when do president s not negotiate with the leadership of the house and senate, and by the way, obama care is germane, its as much a financial bill as it is a Health Care Bill with the costs and the taxes and the budgetbusting. See, thats the thing. This president doesnt want to compromise, matt. Ill take you at your word. You and i can sit down and hammer out something. Ill get you 25 different insurance plans, all right, off the internet, the way wall green and other companies are doing it, but obama wont do that. He wont do it that way to answer. Listen, larry kudlow, the day the republicans put forward a plan that the Congressional Budget Office certifies will insure the uninsured 50 million noninsured, im happy to walk away from obama care. The uninsured dont vote republicans and republicans have other priorities for the money. Thats the truth. Insurance doesnt necessarily mean treatment. Were going to do that in a couple of segments. Spoken like a wellinsured man. I am not. Matt miller and john fund, thank you, gentlemen. Youre both terrific. Now lets focus on how the markets are going to respond if there is a Government Shutdown. Well talk live with two traders just ahead. And later on the show is this the obama care bait and switch . Sure, can you get cheaper premiums but you may not believe what doctors, hospitals and other Health Care Providers youll have to give up. We have the grim details. Even the liberal New York Times, the liberal New York Times, splashing this story all over the front page. Dont forget free market capitalism is the best path to prosperity. I maintain obama care is nowhere near free market capitalist choice. Im kudlow. Well be back in the next segment. Tomorrow, raising the stakes in tech and telecom. Dealmaker Michael Price and ericsson ceo on the mergers, acquisitions and trends to watch. Squawk box tomorrow at 6 00 a. M. Eastern on cnbc. Shes always had a playful side. And you love her for it. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. 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Another day of losses, the longest losing streak in months. It has to do with the uncertainty about the fed and about a possible Government Shutdown. Back to you. On the money, cnbcs own Mary Thompson. Lets ask our traders how markets are going to react to a Government Shutdown. Here is alan valdez and jeff tillberg founder of kkm financial. Welcome back, my friends. Hi, larry, how are you . I read your notes. You are going crazy, obsessing about this Government Shutdown, and youve got it in psychological terms. Youve got it in fiscal terms. Youve got it in economic terms. Now, look, i loved reading your cards, but ive got to tell there you isnt going to be a shutdown. Its not going to happen. Well, larry, thats exactly my point where i think the damage is being done already. Theres been a survey that 47 of americans will pull back equity exposure in the event we do have a shutdown but this past weekend talking to my father, hes an electrician, having a bunch of his buddies asking questions to me so its hit main street. The damage is being done. In the event we see a selloff, kneejerk reaction, larry, we have to remember we live in an electronic trading world. We could see a 5 to 7 move down quickly. Not being represented in the vix but we did see selling data in the financials which have had a tremendous run. I do want to talk about financials. From the last segment we reported as breaking news, the two Republican Leaders in the senate are not going to propose any kind of filibuster and will vote for will vote for cloture which means they can get the continuing resolution done. No one has perfect knowledge, but the chances of a shutdown after this with the Republican Leaders in the senate are virtually nill right now. And most traders i speak to no one believes there will be a real shutdown. Jeff killberg, his dad is an electrician. Jeff is going crazy out there. Getting a lot of calls from clients who are greatly concerned. They think its real this time. Theres been 17 shutdowns, six under president ragean, but they feel like this is real. In a couple days. Reagan had one of the great