the budget fight is now on hold. president obama wastes no time attacking the republicans in a rambling so big government spending and taxing scolding speech. sths no way to win us back and it is no program to grow the economy. meanwhile obama care has nothing to do with growing the chicago either. and now the front pages are starting to fill up with the disastrous truth about the program .computer glitches are due to the administration's deliberately being secretive, stone walling, opaque so as to

hide price sticker shock. no one's been fired yet and team obama keeps assuring us all is well, but it's not. meanwhile all appears to be well on wall street. that's a good contrast. the record high for the s&p 500 today. en investors shift their focus from washington to profits and rock bottom interest rates as far as the eye can see. all those stories and much more coming up on the kudlow report beginning right now. we're live here 7:00 p.m. hee eastern, tonight story, the partial government shutdown is over. president obama signed into law a deal approved by congress to reopen the federal government and provide a temporary debt ceiling hike. averting by the way a potential treasury default. but president obama's speech

today unveiled his strategy. no good. raise taxes, spend more, don't touch entitlements. you know what, old wine in new bottles. or maybe it's a wolf thin wolf' clothing. let's get the latest from robert costa of the national review. he joins us live from our nation's capital. robert, this speech this morning, was it any good, did it help obama or hurt him? >> i think the president obama was signaling where he stands as this budget conference begins between senate democrats and house republicans. democrats are very reluctant to give on entitlements. democrats on revenue. but i think they're trying to move toward the center. >> we'll get into the speech more deeply, but i didn't think he was very good last night. i didn't think he was very good this morning. in other words, i didn't hear anything different, whether policy or tone or politics. i didn't hear anything different. did you feel? >> i think the president feels like democrats came out of this

current fiscal impasse as the winner. and there was a bit of a gloating in the president's speech. a confidence there that he doesn't have to yield much. but it's still divided government. republicans still control the how was. so he faces those circumstances as he looks ahead. >> his horse may not be riding as high as he thinks. i don't know if you saw the article, basically the republicans won the policy battle because the sequester is still in place. you interviewed mitch mcconnell. very good interview. what is the highlight, what is the senate republican lead are saying? >> the highlight is that senator mccop he will wants to move beyond having the standoffs. and he said he doesn't want to have a government shutdown in january and another debt ceiling battle in early february much next year. he wants to have the budget conference and other fiscal talks, but he doesn't want to continue to have these high drama events that really hurt the republican party and seem to divide. >> and hement w wants the budge.

>> he feels republicans stun be stumbled, but he wants to keep the act in 2011. trading sequester perhaps for entitlement reform. >> when you look back on it, the original proposal. i believe it came from eric cantor, if you had a clean bill, keep the sequester budget cuts in place, keep those caps in place for as far as the eye can see, and no new taxes, they all might have been better off when you think about it. >> it's a valid point and you hear that from house and senate republicans. they don't understand what they won and at least they kept the status quo when it comes to sequestration. that's important. because if they're not going to deal on revenue, the only place republicans can deal on is the

sequester. >> and it's pro-growth. we cut it back to pre-2008 and it means the era of big spending is over as long as the caps are in place. robert, hang with me for a little bit. wheel calling on congress to put its differences aside today, president obama outlined what i saw as a same old/seam order agenda, higher spending, high are taekss, no changes in entitlements. even worse, heed a dammed what amounted to a scold-a-thon for house republicans. take a listen. >> some of the same folks who push for the shutdown and threatened default claim their actions were needed to get america back on the right track. nothing has done more to undermean or economy these past three years than the kind of tactics that create these manufactured cries cease. it's encouraged our enemies, emboldened our competitors and depressed our friends.cease. it's encouraged our enemies, emboldened our competitors and depressed our friends. all of us need to stop focusing

on the bloggers and talking heads on radio. if you don't like a particular policy or particular president, then argue for your position. go out there and win an election. >> all right. he's got a point about winning elections. but here to provide a conservative response of sorts, nationally sipdy indicated conservative radio host, my great pal. michael, all of us need to stop focusing on lobbyists and bloggers and talking heads on radio and professional activist who profit from conflict. this is a guy who said for months he would refuse to negotiate. one of his staff assistants called the republicans economic terrorists. constantly harping on the tea party. i mean, really, this guy, he's on pretty thin ground today. he couldn't help himself. >> no he couldn't. and the question is, the white house is trying to portray themselves the great winners in this. president obama didn't sound like a winner. he sounded like somebody who had

lost and was still casting stones at the opposition. i mean, what is it churchill says, defiant in defeat and magnanimous in victory? president obama is magnanimous -- defiant in defeat and defiant in victory. and actually surly in victory. it's not even defiant. it's just wrong. and the problem here is that the country really, really does want this to be behind us. senator cruz made a great point in his 21 hour mayor thop speech which is listen to the people, listen to the people. okay. they listened last night. the people want this thing to be over. they want both parties to work together. there is no sign from the president, none at all that he is willing to work with the republicans on a constructive agenda. >> that's a key point. right there. i think you just -- you're exactly right.public first of all by one poll 78% of the people want the entire congress

thrown out. by on the poll, 60%. so you make a good pipoint. the public does not want the shutdown and it does hurt the republicans politically in the short run. on the other hand, as we'll get to this again, the budget caps are still in place. the gop has a whip hand in this sequester which obama hated from the very beginning. and still wants to get rid of. so if he wants to play ball with republicans to somehow make a compromise, where was that language in today's speech? you yourself were once upon a time a held owing of a good speechwriter. where was the language to reach out to the gop? >> it was nowhere. and me a point thanking responsible republicans implying republicans in general are irresponsible. the point is that i think what the president realized the morning after, sort of after they signed in the middle of the night and they got this thing

done, he said what do i want is this being log the slocking the place. and i think going forward, if republicans allow paul ryan to be the face of party more effectively than ted cruz or mike lee, and we keep saying we really actually want to fix things, not just stop things, we want to fix things, the key thing for winning in politics is showing that you're fighting for people. not fighting for abstraction. >> i want to say one thing, though. i happen to think ted cruz made a mistake on the defunding thing. but cruz made really important points about the damages of obama care to individuals, to patients, to doctors, to the economy. he really made some very important points. and cruz i think is a pro-growth guy.

i just want to say that. i think his tactics were wrong. probably did backfire. you learn from your mistakes. but obama has to learn to live with the tea party. they're not going away. tea party is not going away because obama care is not going away. michael, stay with us. we've covered the tone of the speech. let's get more of the substance before the president did tip his hand and indicate what he wants from the next deal. listen. >> the key now is a unlg about either that cuts out the thing that we don't need, closes corporate tax loopholes that don't help create jobs, and frees up resources for the things that do help us glrow lie education, infrastructure, research. these historically have not been partisan. >> tax loopholes that don't create jobs? where did that come from? just kind of astronaut oput tha. he doesn't have a pro-growth budget. they'll never compromise. i want to talk more about that

one line. let's bring it in aaron from the cycle and senior congressional correspondent david drucker. that line tells me he wants to jack up taxes, he wants the money to spend on his pet projects, you know, more clean energy and solyndra and more education money for the teacher's union and you know what. and he never mentioned the word entitlement. now, i don't see any basis for compromise on those points he made today. >> no. and there aren't. it was more of the same. this is what the president believeses in and this is what he wants to achieve and i think that's why i don't expect much from the budget compromise that they will have to come to. there is no p appetite for a shut down. no appetite for a crisis

particularly on the side of republicans who didn't do so well this tile. but i think we're just going to be snipg around the edges here. i think republicans will fall back on protecting sequester and i don't think you will see any sort of mini grand or other kind of big deal because at the end of the day, i don't think democrats will be willing to trade the kind of things that would allow republicans to trade with them and clearly tax increases will be a nonstarter for republicans. >> absolutely. absolutely. >> so that's just where we are. the president is who he is after five years. we know what he believes. he hasn't changed. republicans haven't changed. so this is going to be about making sure the government is open and there is not a big war and if they can achieve that, i think all will be happy. >> do you disagree with anything david just said? >> i do think it's fair to say that the sequester is the baseline whether you like that or not. those are the for ticks of washington. i think what's missing here is

that we learned something that we didn't know earlier yesterday. and we know it tonight. and that is the number of house republicans who wanted to default went from 66 republicans in 2011 to 144 yesterday. so wall street, conservative thoughtful investors, interested in the growth ideas but aren't interested in coming this close to default needs to think about where that heads us for february or march. let me make one more point. you know that politics moves very slowly and then it moves fast. and i think what the tea party has done, they may have help willed cut the budget, but they have also raised the bar on what it means to be a conservative. you're a rino if you don't make us a dead beat nation. >> liberals have tried to make this point. i heard this when i was on the piers morgan show last night. >> don't compare me to pier

schspiers. >> it was another contributor who shall remain nameless. you are much classier. but wall street is very largely democrat. can i just say that? this idea that wall street is so totally republican that they will walk away because of the tea party is utter nonsense. the tea party and most of the gop is now a kind of main street middle class folks who were tired of taxing and spending and want to run their small business. i go to you, bob costa, on this. i'm hearing this again and again from my good friends on the left of center. that somehow wall street will walk away or everyone in the newspaper today, big businesses will walk away from the gop because they had this revolt of the tea party against debt. do you believe that? >> no, the most interesting part of the tea party, it's a new strain of populist conservative. in the current negotiations among house republican, when they kicked out that medical device tax delay, that was because a lot of house

conservatives didn't want to have what they thought was crony capitalism which was giving a break to the medical device companies. so you see that emerging consensus among the conservat e conservatives to not be so tied to wall street. but one thing key about the president's speech today is that we're looking at a newly aggressive president and democratic party. they emerged from these talks ready to push and i think as we look toward january and february, they will keep pushing on sequestration, as well. >> i hope they're going to lose. i could be wrong. reading your mitch mcconnell interview today, which i recommend to everybody, i don't think he'll flinch on the sequester. he was one of the inventors. that is the republican's ace in the hole. mitch mcconnell is probably the smartest legislator in either house right now. and has been for quite some time. but michael medved, let me go to you. immigration reform. i will put my cards on the table. there are parts of the

immigration reform bill that i agree with. there are parts that i agree with but parts that have to be changed. but do you think it's possible that obama can get -- this is the next 90 days -- an immigration reform along with a big budget reform package, along with a new continuing resolution and along with a debt creel somethi ceiling? is that possible? >> i think he ought to concentrate obviously on the continuing resolution and the debt ceiling. he may feel strengthened in his own meepd a, but speaker boehner definitely came out of this strengthened. people were saying there would be a tea party revolt against him. they spoke to people about the last meeting they had, people gave a standing ovation to skron b john boehner. and even those people who voted against raising the debt ceiling, that was a free vote that boehner gave them. they could go ahead and be on record as opposed to raising the debt ceiling and they know it would be raised anyway.

so i don't think this is a sign of any kind of radicalism. i think what you see is a sign from people saying of course we support speaker boehner, he comes out of this stronger than ever before and that's an aspect of this story that i think people are missing. >> if that was a standing ovation performance, then good luck to the republicans. we can all stand up for that. i don't think anyone thinks this was a piece of progress over the last couple weeks. >> i agree with that. >> actually i encourage you to read peter's sleexcellent piece. i don't think this was the gop's finest political moment at all. david, right now i know it's three months away, but it looks like we're heading for another standoff in december, january and february. what is your quick take on that? >> i don't think there is an appetite for it. the reason this shutdown happened was not as it was 17

years ago over budget numbers. this was defund obama care, something that was ridiculous and unachievable. and republicans don't want another shutdown, it doesn't help them politically. i don't think washington right now wants to really go to war and shut things down even though democrats will try and press their advantage. one thing to look for, larry, talk to senate republican, mcconnell, sequester is more important than entitlement reform and that's where this will come down. >> you are so totally right. that is the key. and it's done a lot of betweeni obama. anyway, thank you, gentlemen. right now, we have to ask this question. did the go. shutdown really seriously damage the economy? s&p says it might have shaved off a full percentage point from gdp. they are nuts. that's our debate just ahead.

later in the show, the obama care disaster now creeping on to the front pages that the budget battle is on hold and the news is disastrous. and don't forget, folk, free market capitalism best path to prosperity. i want to keep the spending cuts from the sequester. small government is part of free market capitalism. i was made to work. make my mark with pride. create moments of value. build character through quality. and earn the right to be called a classic. the lands' end no iron dress shirt. starting at 49 dollars.

20 years with the company.hool. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far. so now i'm supposed to take a back seat when it comes to my investments? there's zero chance of that happening. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest?

your ford dealer.

welcome back. with the government shutdown ending at least for now, we will get that september jobs report. it will be released on tuesday october 22nd, 18 days later than it was originally scheduled for. in the october report, that will be delayed, as well. now scheduled for november 8. that's a week later than expected. back to you. >> thanks very much, jackie. two important dates. now, with the government back up and running, there has been a lot of focus today on the economic effects of this shutdown. get this. s&p standard and poors saying it has shaved a full percentage point off its growth forecast as a result of the fiscal uncertainty. so they're now looking for 2%, not 3% growth, in the fourth quarter. so what is the economic impact of the government shutdown?

ben white is the chief economic correspondent with politico and kevin hasset, a top former federal reserve board economist. ben white, i love you. but this forecast is nuts. they're out of that aof their m. you can't get this 60s wsix way thursday. >> it may be help, but -- >> not even remote. >> gallop down, but there is some money in the fourth quarter that would have been spent that won't be spent. some of it will get caught up. but who knows if it's $25 billion, $50 billion, probably less than that, but not a helpful thing. >> i think it's 15, 20 basis points. i agree with your first point. this did that help confidence no question. i break agree with that.

but i believe there were 400,000 furloughed workers. they will get paid back.reak ag. but i believe there were 400,000 furloughed workers. they will get paid back.eak agr. but i believe there were 400,000 furloughed workers. they will get paid back.ak agre. but i believe there were 400,000 furloughed workers. they will get paid back.k agree. but i believe there were 400,000 furloughed workers. they will get paid back. agree . but i believe there were 400,000 furloughed workers. they will get paid back.agree w. but i believe there were 400,000 furloughed workers. they will get paid back. >> paid vacation. >> some nice days off. >> it's totally true and you talk about this a lot, that policy uncertainty generally is really bad. but uncertainty comes from having a $17 trillion deficit or debt. not knowing how we'll pay that in the future that e'sty that h economy. we've increased the marginal tax rate on 50% of business income from 35% to almost 45%. and we're talking about the charade we just played for three weeks as causing all this damage and ignoring the fact that we just increased the tax rate on all those businesses. >> two separate tax hikes this year. a payroll tax hike, that includes the investment tax hike on what i call the economic activist. plus boat load of regulations, ben, which even if you buy into

obama care, you cannot deny that the regulatory quagmire is gigantic. >> and i think that's why we get in to the budget talks whether we get a grand bar begin gain oi doubt it. let's do fundamental tax reform, get the corporate rate down, do they have to trade something for that. you seem keen on keeping the sequester in completely, but i think we've had tax increases, there will not be another tax increase. no way that happens. >> why didn't the president today talk about pro-growth corporate tax reform? instead -- >> he's not interested in that. >> he sounded just like his old self, spend and tax. he has in the past talked about corporate tax reform. he had a perfect opportunity today to reach out across the aisle, try to put something together. why didn't he do that? >> because he's not really

capable of seizing these moments where he could reach across the aisle and say what can we do it help the economy now, we can probably agree on corporate tax reform. there was an opportunity for that. he didn't take it. why, i don't know. >> it's in-ex-applicable in the middle 2000s, we put a 5% tax penalty on the money and it flowed back. why doesn't obama want to do that? >> chairman cantor has been having these secret meetings where democrats and republicans -- i attended three of them and they were very collegial and there is a bill that should get bipartisan support that's not that far from

something the president has proposed. >> are you talking about generic corporate tax reform? >> no, it's in the exactly known. the guys at politico probably have a better read, but i'm hearing they get the rate down between 28%, 25%. and they switch to a territorial tax system. >> that would be a great pro-growth measure. >> that's what the president should have been talking about today. >> democrats will want something in return. they think they're giving a tax -- >> why do you need something in return to help will the economy? >> don't shoot the messenger. >> what do democrats want for this? >> reprogram the sequester. there are some republicans who would support it. i think that could be something that would be beneficial to the economy and both parties could take some wind from. >> kevin, you know better than i do, but i really start gritting

my teeth when i think about getting rid of the sequester. because i know it's uneven and notice the defense guys. and they're probably right. but i just have to tell you, it has done a world of good. slingihrinking the government a it's a benefit to taxpayers. >> maybe not get rid of it, just change. >> ben coming completely clean tonight. now, time to check in on profits. we had down beat news from ibm, but how bad google tonight. jackie deangelis has that news next. [ banker ] sydney needed some financial guidance

so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today... and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker.

make a my financial priorities appointment today. because when people talk, great things happen. welcome back. a market flash 00 google, shares hitting a new all-time high in after hours trading on the back of its strong earnings report today. the stock up over 8% at the moment. that's more than $73 to $961 per share. google's third quarter earnings and revenues both better than wall street expectations. on the conference call, larry page said he won't be on every call going forward and 40% of youtube traffic comes from mobile. >> real quick, is this google thing which sounds so is good, will this give us a jump on tomorrow's stocks? >> that is the question before everyone i spoke to said it was all about google today. but so many companies missed. so it's really a toss up. >> all right. jackie deangelis, thanks very

much. now, the budget crisis is on hold. disaster that is obama care now starting to get on to the front pages. and it looks more and more like the obama care website crashes are connected to a strategy to keep the true costs hidden. we have a debate coming up, but first up, here is sdwrus ojust the people we asked about what he thinks about washington. >> i travel the world extensively and i know what the people of israel think of us, the people of china, vietnam, philippines. and they look up to us. so all this in-fighting is politics as usual unfortunately. the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others.

by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪

disaster that is obama care is becoming clearer every day. it could be a deliberate attempt to hide the truth about skyrocketing costs. now that story is starting to creep on to the front pages. we want to introduce you to the new obama care countdown wall. check this out. this is where we catalog of the numb people w number of people who have successfully signed on and compare that to the 7 million person goal set by the administration for january 1st. right now the administration is not talking. they will not tell us how many

people have signed up. we don't know, but we've seen solid estimates putting the number at just 36,000. so question. is it the glitchy website or the the sticker shock prices that are keeping enrollment numbers so low? what about the ballooning cost of the whole program in we bring on paul howard and dr. azar. natalie, welcome. there is a charge now that these websites are deliberately opaque and deliberately secretive and the information is deliberately bad because they're trying to hide the sticker shock all throughout this insurance. what is your take? >> i would disagree with that. i think that enough of the economists and analysts anticipated what people would or would not be willing to pay. and i think across the board, we have seen that the prices are

relatively within an acceptable range and lower than most insurance, most commercial insurances. >> wait, wait. prices across the country, outside of a few states, new york is one of them because it never had any competition here, but most states, either the premiums are going up or the deductions are going you to pae deductions ahead of time and these numbers are not being transferred from system to system. why is that? >> when you say the premiums are going up, they're going up in the commercial industries. not the exchanges. >> they sure are. we've done comparisons on this show. exchange prices are substantially higher than what you get in the commercial business. and one rope for that is the deduction. and the another reason for that is the amount of map dates. mandates. that's a new thing. >> what map datendates?

>> abortion mandate, sickness, i willness. all cadillacs. am i right? >> what the administration said is we'll raise the level of coverage, require people to by ten essential health benefits, prescription drug, rehabilitation, all these things raise the cost of insurance. when you do that, healthy people tend to drop out of the market, so they had to put in mandate that would require people to buy or pay a penalty. they also made a conscious decision when they were designing this, "new york times" did a great article that said the administration wanted you to enter into all your personal information before they showed you the cost because they were terrified that if you saw the premium price before you -- >> this is the absolute key point. and i want to ask you about it. they want all this personal information, they want social security number and all this stuff. here is the thing. they can't pledge secrecy. because the secrecy, the fear walls, that would stop everybody

from hacking in getting this information were never tested. and haven't passed now that they have been tested. why should i give up my health care -- remember, the irs gets this stuff, hhs gets this stuff, homeland security get the personal stuff. why do it if you know it's not protected? identity theft could reach all time highs. >> there is identity theft now. even in the electronic medical record, people have access to that information. when we submit -- when we code our illnesses, that information is all available to the irs right now. that is no different. >> do you think there will be more or less? >> if apple had rolled out this product, tim cook have that had to jump out a window. we've been traveled a travelocity.com and it's been basically unusable. >> isn't that irrelevant? so the computer program wasn't

so great. c gich cgi won the challenge so to speak. are we missing the point that there are 50 million people uninsured, we spend $100 billion a year compensating for those people who are uninsured in this country? isn't the whole focus here supposed to be, okay, this is the law, this has been the law for -- since 2009. let's work with it. let's see what happens. this isn't supposed to happen overnight. you won't insure all these people this a week. >> i get that. although they're way below their estimates. but i want to ask you a different question -- >> they have time. >> address this issue of secrecy. the charge is being made that hhs, the administration in general, want to make it hard to access, as paul said, they want a lot of the information that people don't want to give out, you have a hard time figuring out the pricing of what these things will be. you have a hard time federal governmenting out not only the

premium rate hike, but also the dedu deductability issue. are they doing this deliberately? they have to answer. >> they who? >> the administration. >> but they want people to sign up. >> you can't not tell people what the price is. that's what they're doing. they're not giving you the price. >> i have a feeling that's because the way their system was set up to actually -- they have to go back and check. if somebody can't give their estimated income, they have to -- or they don't know exactly, they're freelancers, they don't know how much they will make, they have to give them what they're making now, what they matt lade the last tw year, they have to verify that. >> they bun gelled verification about that but i want to ask you this. i know what the price of my new car is going to be. >> the handful of state exchanges that worked relatively well have said you can look and see the price first on

amazon.com. you don't have to show all of your data before you can purchase something or look for something. they made the conscious decision to say, no, you have to enter this information, you have to see what your subsidy is before we'll let you seyou see sticker. >> natalie, i won't give my credit card on amazon before i decide to buy a book. >> that's a good way to think of it. >> this is back assward as far as i can tell. all right, natalie and paul, thank you very much. interesting. as a network, cnbc is launching a new campaign called win us back. the idea here is to pressure washington to stop the beckering and get back to the pro business, proet growth work that needs to be done. i'm going to lay out a very simple plan for all that to happen. we'll get suggestions from our panel, too. >> i'd like to seat the government work together. i'd like to see republicans be a little less self interested and trying to achieve political gains and try to work with the

temperatures. at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.

trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron.

♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ two weeks ofdown and we've next disaster 90 days down the road. congress has the next three

months to try to win us back. i have a few thoughts. first of all, pass pro-growth budget. reform the tax code, especially the corporate tax rate, and let american companies bring back money from overseas without getting smacked with a huge tax hit. also, keep the budget cutting sequester cuts in place. it's the best thing congress has done in the last two years. maybe the best thing in the last 40 years. don't undo that. meanwhile, deregulate energy, approved keystone pipeline, unleash our open natural resources. delay the individual mandate for obama care. it's clearly not ready. and it's only fair to delay that since companies themselves are getting an extra year. finally, stabilize the value of the dollar. that will fall to our new fed chairman janet yellen, queen of the doves. but we'll need a strong dollar to hold this package together. i think do those things and our politicians can win us back.

unleash the power of the american economy. 4%, 5% growth. make us happier, solve the budget deficit. keep away from root canal. we have our panel back and joined by former republican senator kay bailey hutchison. senator, i suspect you agree with a lot of my pro-growth plans. but what i really want to ask you since we didn't see you at the top of the show is do you think from what president obama said today and what he said briefly last night he has any inkling of this kind of ro pro-growthed a y ed agenda? >> we haven't seen any inclination on his part to lower the regulations. that's what i would add to your very good list. i would add two things. stop the overregulation of business. that is why people aren't hiring anyone. they are worried about obama

care. i love the delay of the individual mandate. and they are just over regulated to death. we're smothering business. we're not opening it up so that they will hire people and get our economy going. and of course the second thing for the long term that we must do is address entitlement reform. you cannot get there in the long term without looking at the cost of mandatory spending which is over half the budget right now. over half of our spending is mandatory, so we're only controlling really about 45% and it's getting lower every year. so you can't get to a balanced budget if you can't control more than half of the spending that you have. >> put your analyst hat on for a second. if you were paul ryan or mitch mcconnell, whatever, would you

say to the democrats give me some entitlement reform and i'll remove the sequester budget revar restrai restraint? is that good politics for the gop? >> i don't think that will get them very far. i to understand there are people who want to cut the budget. i think there has to be a divergence between targeted budget cuts and the sequester which was as john boehner wrote in the "wall street journal" an arbitrary way to get to the goal. senator hutchison knows and i'd be curious on her views that when the senate works well, there are places where people from both parties can come together on growth and on cuts. i think the problem is that as a political matter, many of the republicans have began to view the sequester as the be thist t they can get and they just want to defend about it. and that's the political dynamic. but it to the senator i would say wouldn't it be possibly better to sit down and do something more targeted? i'll give one example and stop

talking. fbi director as told us who by the way is a republican, james comey said they will have to shut the fbi 12 days out of the year and only call agents back if there is a big enough crime or terrorist attack on that day. doesn't seem like a way we want to do the cuts. >> the thing is, though, the president today didn't even mention entitlements, he didn't mention stuff that he's mentioned before like reforming the cost of living adjustment for social security. or looking at the eligibility retirement age for all these programs or means testing medicare. never mentioned it. this was supposed to be a seminal compromise let's all come together speech. so how can we trust him on entitlements and give up the sequester? >> well, i would not give up the caps on spending, the sequester level. what i would do is allow more flexibility. i do think we need to reprioritize where the spending is. we need to do that on the

defense side, we need to do it on the domestic side. we need to put our money into planting seed corn that will grow the economy for the future. research is a priority because it produces an economy. but some of the things that are in there could be cut in order to make room for the higher priorities. infrastructure for instance. >> you and i could sit done and do a little of that work. dave, just give me a real quickie. in your judgment covering this beat as you have for so many years, do you think we'll get entitlement reform? >> no, i don't. because i don't think the president will be willing to give republicans enough on that front for them to trade what he really wants which is sequester. and so here we are. >> even simpson bowles had entitlement reform. you just can't get there with -- >> but obama never assumsupport simpson-bowles. >> the democrats in congress it. >> some democrats in congress. you don't really hear that

anymore. you can't even get a cost of living adjustment out of most of them. >> i know we're out of time. the president even had change cpi in his budget. >> that's right. he did. >> that's why i was stunned he didn't mention any of that. >> which is why we ought to get with him on that. >> i agree with that. i totally agree. why the heck didn't they -- i have to get out. great panel, thank you very much. now, how about that resilient stock market. after rough news from ibm september the markets lower, the s&p itself closed at a record high. the dow breaks even. investors just might be brushing off all the negativity from washington. we'll talk to two top investors next up. esn't like being sold t. the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage

and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for? talk to us today.

welcome bag. s&p 500 closing at a new all ti time high today.cg. s&p 500 closing at a new all time high today.kg. s&p 500 closing at a new all time high today.. s&p 500 closing at a new all time high today. here now is brian kelly and zane brown. quick as lightning. zane, bonds, rates in general. short rates look like they will stay very low for a long period of time because of fed policy. and long rates have been behaving themselves, too, despite all this mush mmash. what is your take shall. >> i think janet yellen ends up

in a conundrum of sorts. if she really drags her feet, then people will be concerned about inflation and that could push rates higher. so she's got to pursue this very narrow goldilocks path. i think on treasury securities are going higher. >> that could be difficult for the stock market. >> very difficult. look at what the hint of tapering did this may. talking about how thely q liqui is not there. so this whole idea of the freight rotation, if you're a stock investor, you don't want it. >> but on the other hand, this is the last one, rates are coming down. i know we had that 30 day treasury bill, but that's all off because of the deal. rates are coming down. in fact rates are coming towdow. dollar is coming down. is janet yellen responsible for

a weak dollar? >> i think so. take whtoday when you saw the downgrade, 3:00 in the morning, i think what the market is starting to price in is accommodate the fed well past 2015. >> that's it for tonight's show. thanks for watching. more time the next time. clients are always learning more to make their money do more. (ann) to help me plan my next move,

i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

woman: everyone in the nicu -- all the nurses wanted to watch him when he was there 118 days. everything that you thought was important to you changes in light of having a child that needs you every moment. i wouldn't trade him for the world. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. if you're caring for a child with special needs, our innovative special care program offers strategies that can help.

>> in this episode of "american greed," a dark night, a clever plan, $300 million worth of art gone, without a trace. >> overnight it became the largest art heist in u.s. history. >> works by "rembrandt" and "vermeer," ripped from their frames. >> they're such special works and they're one of a kind. >> inside, a crime that shook the art world. who would steal some of the world's most valuable paintings and why? and later... >> hallelujah! >> he says he's a man of god. >> he sounded like a preacher. he looked like a preacher. >> but abraham kennard is a sinner, not a saint. >> he's just a natural-born con artist.