And were going to talk to former mayor Rudy Giuliani about that and the closing of Charter Schools and whether president obama is tough enough on russia. All that and more coming up on the kudlow report beginning right now. Good evening, everyone. Im larry kudlow. This is the kudlow report. Its 7 00 p. M. Eastern, four pacific. Were live. Our first big story tonight is a criminal investigation into General Motors handling of a recall. That news sent gm shares down 5 today. Phil lebeau joins us now on the phone to give us the full story. Good evening, phil. Good evening, larry. This is a tough day for General Motors. You mentioned there are now two more investigations the company has to deal with, the latest coming late this afternoon. Word that the new york office of the u. S. Attorneys office is investigating a criminal probe into how General Motors handled the recall of 1. 6 million vehicles. We dont know all the questions that will be involved in the investigation, but it basically comes down to this, what did General Motors know, when did they know it, and when did they not disclose sooner what was behind this recall of 1. 6 million vehicles. Remember, that has to do with a faulty ignition key that was linked with 31 accidents, 13 deaths in those accidents between the years 2004 and 2014. Remember, gm did the recall earlier this year, and a lot of people are saying you knew about this ten years ago, why didnt you hear something sooner than this . Right now you look at the investigation related to this recall, larry, youre looking at u. S. Department of justice, two congressional hearings that are going to be coming up in the next few weeks, and then you also have the national Highway Traffic Safety Administration asking its own questions of General Motors, 107 to be specific, about the handling of this recall. There is no doubt this is a huge challenge for new gm ceo as she launches her own internal investigation as to how the company investigates this recall. Now, ukraines new Prime Minister is coming to the u. S. For a meeting with president obama tomorrow to discuss the crimea story. But as that happens, russias grip on crimea seems to be tightening. Ian williams is in crimea for us this evening. Good evening, ian. Reporter good day to you, larry. Russia continuing to tighten its grip on this peninsula. Just days ahead of a referendum which will determine whether crimea becomes part of russia. Today, we travel to a small Ukrainian Naval base, which is being blockaded by the russians. Now, the ukrainians there, the morale was good. They have four ships and a submarine, but those vessels arent going anywhere because the russians have put an underwater fence across the mouth of the bay. They also have a couple of tug style boats to block any exit from the bay, and a rather menacing looking corvette was cruising back and forth a little bit further out at sea. The guys there said they were still loyal to kiev, but they still had enough supplies, but they were very nervous. That does follow a certain pattern of the blockading of ukrainian bases right across crimea and the beefing of up of check points. Former president yanukovych said he was still the rightful ruler of ukraine and said that hed be going back soon. Well, thats not likely, because even those who arent particularly friendly with the new government here regard him as a pretty discredited figure. Also, the eu said they were going to come up with a package of trade liberalization measures. Another muchneeded help that will be for the ukrainian economy. At the same time, as part of the tightening russian grip, the only flight that was allowed into the airport today here was from moscow. All other domestic and International Flights were cancelled. A pretty clear signal from the new rulers here as to where they see their future. Back to you, larry. All right, as always, many thanks to ian williams. Now, got another one. This story is outrageous. Its everywhere. The latest bombshell dropped in the ongoing whos spying on whom narrative that is playing out under the obama administration. This time, its senator Dianne Feinstein, shes a democrat. Shes accusing the cia of spying on congress. Thats right. Here now to discuss, my very good friend john baxler, syndicated talk show host. Im going to see you later on radio tonight. What do you make of this story . The cia seems to have hacked into Senate Intelligence committee files or blocked off files. Whats going on here . I asked immediately, i told them kudlow wanted to know, and heres what i got, a mixed message. From overseas, i was told yes, absolutely. And much worse. That the cia must be held accountable for its conduct, especially towards the two intelligence select committees. From this side, ive got doubts raised because the people speaking out now are liberal democrats. And that makes my source very anxious about how trustworthy liberal democrats are when they come to blowing the whistle on the obama administration. So its a mixed message, larry. I think as we go forward, well have more information because there are other committees that have raised questions about the cia and interference. And lets put it this way. People have been questioned recently about some scandals that are floating around in the obama administration, and there are doubts raised about how the cia has presented all the information. A lot of this stuff is about something called the panetta review. Leon panetta, former cia director before he became defense secretary under president obama. Okay, so, the panetta review is apparently a chronicle of all the interrogations that went on during the iraq and afghanistan war, in various places, guantanamo and various places. From what im hearing and surmising, a lot of people in the cia do not want that panetta review, they do not want any chronicle of those interrogations to get out. And they may be right back. They may be right, but i want to press this, larry. Things have happened since 2009 that raise large questions about the cias conduct and whether its been transparent to the intelligence committees. These are behind closed doors. That is of concern as well, larry. The cia didnt stop with the panetta review or the interrogations during the iraq war or at guantanamo. The cia is an active hand in shaping american intelligence. And thats what im hearing from overseas, that the cia has pushed too hard and now congress is pushing back. Right. Larry, Dianne Feinstein is a major democrat. This is a major voice in the Democratic Party. I know she is. And shes usually very positive towards the intelligence committee. Let me switch gears real fast. There is much talk today, as you well know, by the french and others that the time for tough sanctions on russia is coming. These are trade sanctions, these are economic sanctions, these are banking sanctions, these are visa sanctions. Let me ask you this. In your opinion, will president obama go along with these sanctions . No, he will not. The European Union is at risk if there are sanctions levelled on russia. This is not just about russia. This is about the eurasian su r supercontinent. It is wrongheaded to punish russia because you will also punish the eu. Thats our trading partner. Im aware of the fact that state to state there are irrational decisions made in the heat of the moment, but at this point, i think russia is within bounds for its claims of its neighbor ukraine and i dont think sanctions will stop or reverse history. All right, well leave it there. John batchelor, thank you. Now weve got emails to and from lois learner that was released today. Rner that was released today. They also depict lerner as a very desperate liberal political zealot. Talk radio fire brand tony katz is about to join us. Hes going to give us the rundown. Were starting to see real pushback against a blatant government move against free enterprise. Were talking about new yorks mayor trying to unilaterally ban Horse Carriages. New yorks great former mayor Rudy Giuliani, i call him americas mayor. Hes going to join us, hes going to talk about that, hes going to talk about Charter Schools, hes going to talk about whether mr. Obama is playing his cards right in ukraine. Let me just remind, dont forget, free market capitalism, always the best path to prosperity. That includes the Horse Carriage business in new york city, which i love. Well be right back. But first, first, have you seen president obamas appearance today on the comedy video between two ferns . Heres a special highlight. Lets get this out of the way. What did you come here to plug . First of all, i think its fair to say i wouldnt be with you here today if i didnt have something to plug. Have you heard of the Affordable Care act . Yeah, i heard about that. Thats the thing that doesnt work. Why would you get the guy who created the zune to make your website . Healthcare. Gov works great now. [ male announcer ] how could a luminous protein in jellyfish, impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . 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. Wiis really what makes iton, slike two deals in one. He 1,000 fuel reward card salesperson 2 actually, getting a great car with 42 highway miles per gallon makes it like two deals in one. Salesperson 1 point is theres never been a better time to buy a jetta tdi clean diesel. Avo during the first ever volkswagen tdi clean diesel event get a great deal on a jetta tdi. It gets 42 highway miles per gallon. And get a 1,000 fuel reward card. Its like two deals in one. Volkswagen has the most tdi clean diesel models of any brand. Hurry in and get a 1,000 fuel reward card and 0. 9 apr for 60 months on tdi models. So our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. 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. My counsel has advised me that i have not waived my Constitutional Rights under the fifth amendment and i will decline to answer any questions on the subject matter of this hearing. So youre not going to tell us who wanted to fix the problem caused by Citizens United. On the advice of my counsel, i exercise my fifth amendment right and decline to answer that question. Lois lerner, who was responsible for blocking nonprofit tax exempt Tea Party Groups, in my humble opinion, she may be headed for a congressional vote of contempt and possibly criminal charges after a scathing few report is out today as well as a flood of newly released emails. Joining us to critique this whole process, we welcome back tea Party Supporter and radio talk show host tony katz. How are you . Let me just ask you, what do you know about is there any new news on this congressional report and the emails . I know they believe that lerner is going to be held in contempt. They can vote on that. But is there anything new . Was there a smoking gun today . I think the only thing new is that the people who thought that this was some kind of republican attack on lois lerner, the most surprised man in america is probably congressman elijah cummings, democrat of maryland, who thought this whole thing was a joke. Asked darrell issa the other day what he was hiding when he decided enough of this hearing when he was asked if lois lerner isnt going to talk. The real thing is that this wasnt something that came out of the blue. This was long. This was creative. This was a willing desire to go after these groups, because of a crew ideological dislike of these groups. You take a look at lois lerners history. She was if the fac, losing the case shes a big liberal. Youre quite right. Shes a big liberal. She runs this Tax Exempt Division and she doesnt like it one bit that she has to grant the legal status to these Tea Party Groups. She wants Citizens United repealed. She wants congress to vote. She wants the fec to give her help. Heres the deal, though. I believe, okay, i believe political strategy here, lois lerner as the head of this in the irs, basically shut down the tea groups, the Tea Party Groups during the 2012 election. That was her goal. Without question. And unfortunately, she succeeded. Now heres the thing, tony. Heres the bullish side of me. This is kudlow the optimist. Now the Tea Party Groups are mostly getting certified, okay . Finally. And they are going to be back with a vengeance this november. So lerner ultimately is going to fail. Thats my take. You can talk about the fact that reports of the tea partys death has been greatly exaggerated all to the horror of harry reid. But we cant talk about this and say all right, theyre now getting certified. Thats like saying i got shot but at least youre at a hospital. We have to discuss that the irs was used against the american people. Lois lerner was on some kind of martyrdom mission. Was directed in a group of people who really thought that was important to not allow the Citizens United decision to stand. One of the quotes was somebody has to do something about it. Created this multitier approach. Carter hull, 48 years at the irs, carter hull says he has never had to send anything to counsel in order to get it approved. This step on step on step. This is sick stuff that were witnessing. A lot of Tea Party Groups the irs is being embarrassed. Its not enough. Now, i think they should make an example of lois lerner, but that assumes that a contempt vote is one thing. Criminal charges are another. But yes, i want them to go afflalo wafte afflaafte after lois lerner. My point, though, is this. The tea party will be back, tony. Its a very important political point. Lois lerner notwithstanding. I talked to Rick Santelli about this. The tea party will be back. They were muzzled in 2012. Theyll be back in 2014. And theyll make a huge difference. This is what the Mainstream Media will not accept. Theyre going to make a huge difference in these elections in 2014. There is no doubt. Absolutely no doubt about it. Of course theyre going to speak strongly. When these things happen, theyre going to speak even stronger. If you want to know where this really has an impact, it has an impact on the 2014 race and specifically those senate races. Yes, you still have to go afflaafte after lois lerner, but it was president obama who said there was not a smidgen of corruption in the irs. This is what happens when you talk to Zack Galifianakis rather than looking into the irs. This will be a story for the 2014 midterms. And it will be more people running for president obama like they should. Its going to be the same thing about 2010, it was about obama care. In 2012, it should have been about obamacare, but the tea party was muzzled. In 2014, it is going to be about obamacare and other issues. Its very ironic that the irs is supposed to enforce obamacare. And i dont believe they ever will. Tony katz, great to see you, buddy. Great to see you. Now, folks, its 2014, but some states think you cant be trusted to buy a new car without an authorized dealer. That includes the state of new jersey, which just banned direct tesla sales. Were about to take you live to a tesla store front that will have you closed down in about two weeks. Dont forget, americas mayor Rudy Giuliani on his way to join us in just a couple minutes. Were going to talk about the new push to ban Horse Carriages in new york city. And the ukraine and Charter Schools. Im kudlow. Please stay with us. About Business Internet . Ok, how about thirty seconds . At comcast business our internet is fast. Up to 5x faster than slow dsl from the phone company. And our phones better too. Sign up for internet and voice and find out how to get four weeks of internet for free. Time to make the call. 8005016000 comcast business. Built for business. [ 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. Welcome back to the kudlow report. So, the state of new jersey today passed a law to prevent Car Manufacturers from selling right to customers without the middle man of an auto dealer. Doesnt really seem very free market to me. Its going to have a huge impact on tesla, which may have to Close Two Stores because they dont meet those standards. The stocks down nearly 2 in todays session. Bertha coombs is live at the tesla store in short hills, new jersey. Good evening, bertha. Reporter good evening, larry. This is one of two showrooms tesla has here in new jersey. Today, the garden state becomes the third state to ban direct sales to customers by manufactu