all right. leaving it here. going right to the bayou where i hope to see you monday. i think it'll be one of our best shows ever. i always like to say there's a bull market somewhere, i promise to try to find it for more clashesing tonight in crimea. only nine days ahead of the so-called independence vote that looks already rigged for russia. the fact remains with the u.s. this conflict can only be solved by economic means. and as the great chessmaster said today in the "wall street journal," use banks not tanks. we'll have a live updaytona just a moment. the jobs report a little better than expected but nothing to get excited about. the economy keeps bumping along. i wish they would abolish the corporate tax. texas governor rick perry had plenty of impact. he brought the house down at cpac today. he called for restoring american economic power and that created

the most excitement in any cpac event for the entire week. so is rick perry back in the presidential mix? we'll have a live report, all those stories and much more coming up in "the kudlow report" beginning right now. >> good evening. i'm larry kudlow. this is "the kudlow report". we're live here at 7:00 p.m. eastern 4:00 p.m. pacific. sergei lavrov sending a warning to the u.s., saying the u.s. should not take any hasty or reckless actions to damage relations between the two countries. let's bring in jim miklaszewski, live from the pentagon. this sounds nasty. what's cooking? >> reporter: larry, despite all the international outrage over the russian occupying of crimea as of tonight it appears to be

fa fait accompli. the russian military is firmly entrenched in crimea and have no intention of leaving any time soon if ever. according to military officials, it's clear that the russians have been consolidating all the gains they made so far. today, for example, by brute force they knocked down the front gates of a ukrainian air force base and seized that base without firing a shot. they scuttled an old ship at the mouth of the crimea bay, and blocking any shipping from going in or out of those waterways. russian flags are flying over all the government building there's, and they've taken over all ukrainian tv so that russian programming is the only thing the people in crimea can watch at this point and as observers on the ground say crimea now, in

fact, is russia. if there's any good news here, u.s. military officials say they see and no indications the russian military, president vladimir putin intends as of now to go any further than this. no, it doesn't look likely at this point that the russians intend to go into eastern ukraine, invade the ukrainian mainland and for some here at the pentagon you would almost think they could live with that, and instead they say there's no military solution in all of this and if, in fact, the russians stay put right there in crimea it will be handed over to the diplomatic process, the u.s., the u.n. and nato. >> jim, let me ask you a couple of thing. first of all, i didn't hear anything from the white house today, the president, of course, and the secretary of state have argued that this invasion of crimea contravenes law, this

referendum contravenes international law and ukrainian law. the russians are just coming in doing what they want to doctor taking this thing over. is anybody talking from the white house, did anything come out of the state department? >> reporter: i didn't hear anything today as a matter of fact, larry. the president was traveling down to florida today. no indication there were any direct phone calls between him and putin today. it's not clear exactly what they could do in the short term anyway. you know, people are talking at great length about possible sanctions but the europeans depend very heavily as you know on natural gas and oil that comes straight out of russia. so it's clear to many at least in this building that putin for now is holding most if not all the cards. >> and last one for you, is there any u.s. military movement in the black sea? >> reporter: well, there was a ship, a guided missile destroyer that made its way into the black

sea today. but that was for an exercise with some of the baltic countries that was scheduled months ago. this has nothing technically to do with the russian invasion of crimea and, you know, one ship is not going to make any difference to what the russians are doing there anyway. >> right. all right, many, many things. nbc's jim miklaszewski. we appreciate it. a great op-ed in today's "wall street journal" from chess legend gary ka smpb pmspparov. he said target their assets abroad, their mansions, and ipos in london and their yachts. use banks not tanks. joining us now to talk about this and more, former u.s. ambassador to the ukraine william taylor and managing part of beacon policy advisors.

steve co-authored this "wall street journal" op-ed piece this week with my friend bob. gentlemen thank you very much. mr. ambassador let me go to you. what's your thought on this gary kasparov thought that the only people to go after is the oligards. their asset, bank deposits. is that realistic? >> it is. and the think, the people to go after are the people who are making these decisions, that is the government officials, people in the parliament, if there are advisors to mr. putin, then they should go after them, individual sanctions as you say, take away visas so they can't travel to the united states or europe. freeze their assets that they have in europe. and in the united states.

go after these kinds of things. these are the individual sanctions. there are broader sanctions one could take against russian banks and that's a broader set of issues. the president could do that. those things are economic and get the attention of decision makers and people advising mr. putin. >> steve, let's continue this line of thinking. your piece also argues economic sanctions not quite the same as kasparov's piece. you talk about wire transfers. very interesting. is it possible the united states could take russian banks, four state banks in russia and a bunch of smaller banks, any wire transfers, any deposit, any assets and just freeze it, put a freeze on them because as you know the russian economy is in terrible shape, the stock market is crashing, the ruble is crashing, they are into ukraine for $30 billion these russian

banks that loaned $30 billion. can we do that right here in the usa, take, seeds any russian banking money? >> you know, in theory you could take such actions, larry but what you really want to do is take a step back. there's two major issues here as part of the crisis. one is what do you do to help ukraine and the other one is what do you do to shape russia's behavior. there's long term solutions and short term solutions. what you're talking about right now is short term solutions to shape russia's behavior and in that process we can take many economic and financial actions but they work best when we do it in concert with our allies particularly in europe. >> there's no question we have to work with europe and kasparov says that in his article. but kasparov fingers 140 oligards and says target their

mansions and ipos. you got a lot floating around new york city, for example. i've been to dinner parties with so-called russian oligards. if we know who they are. if we know who they are, steven, why can't we go after them in the name of international law and also as you know, we have the act which gives us permission to do that here at home. >> the other thing you have to realize, larry, putin is not best friends with the oligards. the major one coming into power put them in jail to send them a signal. the question here is shaping putin's behavior and that involves not just hurting oligards but involves hurting the broader russian economy. if you think about it what does the russian economy rely snon it relies predominantly on commodity exports. what you really want to do is figure out how you purity them both on the commodity export front and by the way they are the ones who would be hurt most

if ukraine economically destabilized. >> actually the united states may encourage ukraine not the pay the loans. bass do, let me come back to you. president obama, i don't know i think yesterday maybe the day before said that we would restrict visas and go after individuals, and he said he has names. he didn't go further than that. he said he has names. now i don't know what that means. what names. are these military names? are these oligard names? if we had names what is the process, what does that mean. what do we do if we have names? >> first of all, the names of the people that he has -- the people we should be targeting i'm assuming these are the names he has, these are people who are in the chain of command. these are people who are responsible for taking decisions to infringe the territorial integrity and to infringe the sovereignty of a neighboring

country in this case ukraine. that's the behavior of those people that need to be changed. they are advising him. when they feel the squeeze on their asset, their ability to travel, their kids' education, that's the change in behavior that we're looking for. >> ambassador, i don't mean to be disrespectful,. if i cuss in on this point. are we talking about russian military people, because i can't imagine the united states can do anything. we're not going to going and kidnap military people are we or are we talking about oligards and other business people and how do we do that? physically how do we do that? do we send fbi out for them. do we go through the banking route and freeze their deposits. i'm trying to imagine the actual, you know, day-to-day workability and application of these principles. president obama has been very vague on this. it seems to me if he were more concrete he might have more clout. >> he could be very concrete.

and it's not the military. it's not necessarily the oligards as your guest says. it's people in decision-making roles and what you can do and what the state department can do, what treasury can do, what agencies that are responsible for the treasury, they can -- the state department can withdraw visas. they can say you no longer have the ability to travel. they can track down and get license and so they can determine who has assets in the united states and they can freeze those. but they can also -- that's the individual. you can also go broader and identify those banks that should not be able to work in the united states. that will cripple them. >> okay i get you. people that are here already their visas can be revoked and sent out of here. steve, let me go to you for the last word.

in your article with bob, you talk about restricting the european import of natural gas. now, this whole business about natural gas, so many people are saying as i am, why isn't the president -- let's okay keystone, let's start okaying a lot of liquid natural gas projects. i know it's going to take time to complete but at least he could do that as a symbolic nature to say to russia here's what we're going to do. but, how can the europeans not import natural gas right now? how can the ukrainians not? it seems to me that's a chokehold on europe this whole natural gas business. >> let's go back to what i said originally. there are short term solutions and long term solutions. long term solution that you're talking about initially is, you know, we don't have a national energy export strategy, not only do we need an american one we need a north american one and natural security needs be a

component ever it. in the short term, europe and ukraine have the most connection to russia in terms of energy exports. so what i'm saying is, yes, they are dependent but, you know what? i think europe and ukraine, the pain they would feel from restricting those imports over the next several weeks would pale in comparison to the economic impact that the russians would feel. >> right. they can take it, spring is coming, the weather is going to get warmer, we can always provide them with some assistance but the reality is, not ukraine, we give ukraine assistance, the european countries so they can get through the next couple of weeks. russia needs -- the ruble is collapsing. the stock market is collapsing. alan greenspan talked about that this morning anthony network. very important. something they didn't during the soviet empire days and has a huge effect on the economy. huge effect. so if you choke off their

natural gas exports that will hurt them more. already assets are being pulled out of russia left and right. all right i get what you're saying. short run, long run. thank you, gentlemen, i appreciate it. now, folks the big winner at cpac this week might be texas governor rick perry. he got the crowd more fired up than any speaker for the entire week. we'll get a report from somebody who was right there next up. later on what does today's jobs report say about the economy? we'll have a bull bear debate. free market capitalism always the best path to prosperity. rick perry knows that. just listen to how he gets the crowd excited today. "the kudlow report" will be right back. >> stop hammering industry. let the sleeping giant of american enterprise create prosperity again. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers.

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>> it is time for washington to focus on the few things that the constitution establishes as the federal government's role. defend our government. provide a cogent foreign policy. what the heck, deliver the mail, preferably on time and on saturdays.

[ applause ] get out of the health care business. get out of the education business. stop hammering industry. let the sleeping giant of america enterprise create prosperity again. welcome back to "the kudlow report". that was something. texas governor rick perry delivering a rousing cpac speech that has everyone talking maybe he's going back into the presidential race. going gift another look. i believe he is, by the way for 2016. let's talk to aaron blake, "the washington post" political report who was there firsthand to see perry wow the crowd this morning. aaron, first of all thanks for coming on. first time guest. i appreciate it. i've interviewed governor perry in the last year. i think twice. he's left the door wide-open for running. what's your take on this whole story?

>> i think he's got his foot in the door right now. i think it's pretty clear he has designs on running again and really avenging what was a disastrous campaign in 2012. he's obviously retiring as governor. he gave the most well received speech at cpac so far. better than ted cruz, better than rand paul, as far as the crowd's reaction and that was despite the fact this was happening at 9:00 a.m. on friday when a lot of these guests were very tired, some of them even hung over. it was quite the scene, actually and i think that it got a lot of people looking at him possibly in a new light for a guy who had been kind of dismissed. >> aaron, he'll tell you, identii've had dinner with him. he'll tell you he was lousy. the cnbc debate the debate he couldn't remember the third department he was going to close down. he'll also tell you he had a big back spinal operation from which he hadn't really recovered and that he wasn't really prepared

to run a full fledge campaign. now, i'm not picking horses here, it's way, way, "way too early" for that but i'm just saying i think he's much more formidable as a healthy guy. after all how many terms did he win in texas, four terms. that's not a small state, that's a real place. >> you know, he obviously was supposed to be this big great candidate. he raised a ton of money. there's certainly is the potential there and i know that they talk about the back surgery, that that was a big issue for him. but i think a speech like this, he's always been able to give good speeches. i think the real tell tale sign is how he can handle media scrutiny as we get closer to 2016 and then if he does run, course, it's the debates. the oops moment in these cnbc debate was not his only bad debate. he had plenty before that. >> that was painful. i was covering that. it was painful. not him. painful for anybody. aaron let me ask you at the top of drudge right now he says rand

paul rocks. now i think you mentioned that the perry speech was stronger reception than the rand paul speech. is that what you're saying? >> yeah. i think it was slightly better. rand paul as far as the response goes, of course, rand paul had more people in the building, he gave a very well received speech. this is his crowd, his dad dominated cpac for these years and he has a devoted base of support that shows up every time he's there. he's won the cpac straw poll. he has a good bet of winning it again. it was surprising to see rick perry get the biggest reception of the entire conference. >> let me ask you one, a few seconds left. talk to me about governor chris christie. the way i want read is that he also was very well received. obviously didn't mention the george washington bridge or any of that stuff but he said we need to govern with our principles. did he, in fact, get the kind of positive reception that i'm hearing about? >> it wasn't on the par with rick perry or ran paul.

certainly a respectful audience. there was nobody who, you know this is a crowd, an event where last year he was snubbed he was not invited because of his embrace of obama. it was a safe speech for chris christie. >> great stuff. aaron blake, "the washington post". we appreciate it very, very much. now are the wheels coming off the wagon for pimco's bill gross? he made some wild acan youations today to a ruiter's reporter. ok, here's the way the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think

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pimco chief and bond king phil gross not having a goodyear. made some wild accusations today that don't make him look very good. bertha coombs joins us now with all the details. good evening. this is a wild story. >> it really is. a drot of drama. stinging accusations from the man known as the bond king and than denial he ever uttered them. the drama at pimco back in the headlines over the increasingly ugly fallout between bill gross and his ceo who resigned abruntly in january after five years at the firm. according to reuters he wrote a "wall street journal" article describing the deterioration of their relationship. they quote gross as saying i'm so sick of mohamed trying to undermine me and say that he claimed to know that mohamed el-erian had spoken to the journal. gross indicated he had been monitoring his phone records. according to pimco spoke person

gross denies making those comments to reuters or the firm of listened to mohamed el-erian's phone calls. mohamed el-erian is due to leave pimco mid-march and has not commented publicly. some reports say he questioned gross's management style. the performance of pimco's flagship bond fund hasn't been good news. down 2% last year. continues to underperform its peers according to morningstar. etf on the bond fund performed more poorly dmourn than 4% last year. one wall streeter recalled the classic lesson from "the wire," you come after the king let's not miss. >> if you're going to kill the king make sure you kill the king. >> obviously, this does not reflect very well on the firm and we have a poll on cnbc.com asking who they think is at fault here for the split. i don't know if we can bring it up.

overwhelmingly 41% said gross is at fault. another sort of large chunk think that both of them are probably. >> of all the stuff you reported on with this phone call thing that surprised me, i hadn't heard that yet. okay. pimco denies it. what -- has reuters said anything? >> they stand by their story. they include the pimco denial. it becomes a reporter said, gross says. who do you believe? you know, they wrote that this is what he told them. >> it's funny, i'm not bill gross's best friend but he's come on the show a few times. not in that kind of language. doesn't surprise me there's a clash. that happens in corporations. the language is rough. i love the monitoring of the phone calls. i think that's just so nsa. just so nsa. >> who doesn't do that any more.

>> i love that. anyway thank you, bertha coombs. best story. now before our very eyes we're witnessing the collapse of the central planning liberal entitlement state dream. i'm talking about the blockbuster news that only 10% of the eligible uninsured people are actually signing up for obamacare. the entire purpose of the hotly contested new law has been an utter failure. we'll debate on what's next for obamacare and what this means for big government. stay with us, i'm kudlow. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.

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report". we're coming to you live from cnbc headquarters. now here's a fact. we are watching the failure of the liberal entitlement state right before our very eyes, obamacare is crumbling. the law hinged on the young and uninsured to sign up and guess what? they are not. it's proof positive central planning doesn't work. i believe we need a three year moratorium on the entire program, stop and take a time-out. including the mandates and the tax penalties and let the country start all over again and get something with more freedom that will really make america

healthy. just a time-out. anyway, we got keith boykins, former white house aide for bill clinton. and we welcome back senior fellow at the manhattan institute. i want to start with my friend keith boykin. i know we'll disagree but a bunch of numbers coming out. we have this mckenzie survey, one in ten have signed up for obamacare. that in itself is a crushing defeat. >> i don't think. you can't judge the success of a program by the first few months especially a major national initiative. if it's a failure why have 3.6 million people been added to the roles. why did the state of new hampshire just yesterday, the state senate, republican controlled state senate vote to

expand the medicaid coverage in that state. there are clearly is some -- there are some problems with people who aren't fully satisfied with obamacare, but the newest polls that come out show only 28% of americans want to repeal it. so if republicans want to go down that line which it seems they do they will box themselves in. >> that's why i use the term moratorium. i think there are elements of obamacare that would be in a republican plan, all right. i'll grant you that. not many but a few. moratorium is just a halt, a hold. stop all this stuff. i think that's what really people want because they see they are getting in deeper and deeper. first of all, back to the survey, only 27% who actually bought coverage were previously uninsured. so just a little more than a quarter actually were previously uninsured. again, this runs completely counter to obamacare and what they are hoping to get. >> yes. keith threw out the number of 4

million who signed up on the exchanges. only about 475,000 uninsured people have actually enrolled for coverage on the exchanges. there were 4.7 million people according to the associated press that had their plans cancelled under obamacare who shopped for coverage on their own. 4.7 million people whose plans were cancelled, only 475,000 who were newly insured who were previously uninsured. the vast majority of people who got coverage through the exchanges are people whose plans were cancelled and they have to buy new ones. this is the worrisome part. of the people who were uninsured who did not buy coverage but checked out the website, 50% said that the reason they haven't bought coverage is because the plans were too expensive. that fundamentally is always the problem with this law is that it relied so many regulations that the plans are too expensive even

if you qualify for a subsidy. >> keith, the most general thing. i think the statistics are important and i think the argument about them is very important. i think the website is important. i think at the end of the day, the premiums are too high and the deductibles are too high. you pay too much every month and too much out of pocket cost. and as robert lashevsky wrote he talked about the failure of geniuses to produce new dog food they never spoke to the dogs they just spoke to the egg head professors. the problem is the egg head professors at penn and harvard and m.i.t., they never spoke to the consumers. so if they had they would have known the premiums are too high the deductibles are too high. >> maybe one of those egg head harvard people was memorabilia because he was the godfather of this whole plan in the first place. the reality republicans will

spend all this time, they voted yesterday for the 50th time to repeal obamacare. the american people don't want that. the truth is that there's a widespread well funded misinformation campaign on the part of the conservatives on the right to try to distort the reality. perry bacon did a great story just last month that showed this ken woman a republican woman in ken who was opposed to president obama, opposed to obamacare but just signed up for obamacare, visited the doctor three times. never had access to a doctor before except for free health care clinics and she's enjoying the benefits. if you ask people on the polls, do they support the idea of children being able to stay on their parents plans until they are 26 they say yes. >> that's an easy ones. >> the pre-existing coverage and the 26-year-olds, that's why i'm for a moratorium. right. those can be included. but this other stuff -- >> no they can't.

you can't -- you can't finance this, larry, you can't make the insurance companies pay for extending the coverage with all these people that are sick without creating a system to subsidize that. >> this is another point. this whole business about extending the cancelled plans for two more years that you can renew the cancelled plans, now, again, people are saying that this is going to cost insurance companies a whole lot more. a, they were counting on higher premiums because they had to meet the mandates or b, the paper work of renewal is difficult. c, unfortunately the bail out of insurance companies may being right smack in front of us and i don't want that. that's why i want a moratorium on this whole story. >> the insurance companies have already -- the for profit insurers have reported in their most recent quarterly earning calls they are losing money on

these exchanges because the rules have been changed on the fly. first, there wasn't 50th vote to repeal obamacare. the house voted to delay the individual mandate by one year which is something the obama administration has already done. by that standard the obama administration has repealed obamacare a dozen times. for people whose plans were cancelled they've delayed individual mandate by a year. the other point about memorabilia the plan that memorabilia advocated, if you go back to what he proposed he wanted everybody to have catastrophic coverage. he didn't support these insurance mandates. that was the 80% democratic legislature which threw those on there and he basically taking -- >> i just want to say, keith, my buddy, look i'm just going say the president has in effect doing the moratorium that i'm calling for. especially with regard to renewing these cancelled

policies. he's now in a three year moratorium. he just had two more years. with respect to employer based policies he's got two years and i bet he goes to three years and keith you know march 31st they are going to extend that deadline. there aren't going any tax penalties. this whole thing will be extended. >> i don't know if they can extend it. there's a history here, larry, look for example at social security and medicare. in 1935 when they created the social securitys is system there was a widespread problem and concerns about whether it could work. they had to create and invent social security numbers because they realized they didn't have computers. they had duplicate names. and the republican candidate denounced it. now it's one of the most popular government programs out there. >> the lives. i told them. >> i'm glad you were. >> it was a huge mistake. he didn't listen to me. he got his keister whoopd.

i got to get out of here. you guys are both great. this discussion to be continued. what can we make of today's decent but nothing to rye home about jobs report. we'll have a bull/bear debate on if state of the economy. that's up next on "the kudlow report". please stay here. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ my mom works at ge. save you fifteen percent or more on car insurance.d

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all right. a better jobs number than expected today but the u.s. economy adding 175,000 jobs. by the way, i took the over today or last night. i took the over. and brian kelly acknowledges as much in an e-mail this morning. the unemployment rate edged a little higher 6.7% from 6.6. here's my quick take. it's still a tepid recovery. i'll call it 2.5% growth. the federal reserve will continue to cutback on their bond purchases. no change. i believe stocks will stay profitable. that's a plus. king dollar will stay strong. if you're like me, by the way, and you want some real torque in this economy it's time to totally abolish the corporate tax. just abolish it. and you'll see great and wondrous things happen but it won't happen any time soon.

let's bring in chief economist and u.s. contributor with deutsche bank. gentlemen, i got a bull and a bear if i have this right. steve, let me begin with you. i'm glad the weather didn't -- i'm always glad people get jobs but 175,000 jobs, doesn't do much for me. what's your take. >> that's right. that's what the economy is doing. 175,000 jobs. consistent with the economy in the 2%, 2.5% range. nothing more than that. half full, half empty it's just half. this is where we are. it's not going change. unfortunately what the fed is doing is wrong. the reality of the situation is they knew what they were doing when they got into the qe program. it was fairly successful. created financial engineering. net result is now they are backing away from it and make it harder for the economy to find its stride which is a little bit above 2.25. we'll struggle closer to 2.

>> your disagreement. >> yes i'm disagreeing. i'm much more optimistic. i look at private gdp last year grew almost 4%. second half of the year was almost 5. i know you're not a keynesian. i take the over 2.5 to 3.5. i'm pretty optimistic. >> i'm not a keynesian. i don't believe in government spending. i want to abolish the entire corporate tax and i've seen the numbers from boston university and others. it's doable. you would drop a burden on businesses, i mean businesses are not making the long term investments to create jobs. businesses are not bringing the money home from overseas because it will cost them too much. that's why i keep saying that. i'll say this. average hourly earnings, wages look a little better today. >> that's correct. >> they looked better, 2. >> translator: 2% year-on-year

and nonsupervisory wages. is there a lift coming to wages? >> if you look at the household data and get inside in terms of the age cohort numbers they are hiring older people because companies right now don't want to be in a position of training anybody opinion they will hire somebody they can put down on the job and be productive right away. the younger cohort, prime cohorts, 25 to 55 aren't hiring because they don't want to hire those people. they are going after people at the other end of the rainbow and people at the bottom end of the rainbow and that's what they are doing. we have a mixed composition and that's why you're seeing the composition of hourly numbers. if you look at hours worked it's declining. that's telling you even though they are working more not working as many hours. >> you're looking for 3.5 growth. what's your interest rate outlook. >> rates are going higher.

aggregate hours is correct but a lot of that is weather. we had 7 million people who warkd part time because of weather in february. income numbers look lousy. but my sense is they will look better going forward. what's going to drive growth to me is house. i opportune labor market is still weak and wage growth isn't great. i want has to start somewhere. we have a shortage of homes and vehicles that are ageing and deplete sod i look for a local of cyclical. >> will interest rates go up? >> yes. 4 on tens. >> right. that's about in line. >> actually nominal gdp, real is 3.5, nominal is 4.5 to 5. mortgage rates are 5.5%. steeper yield curve, higher yields is better. more chance it unclogs the financial plumbing. >> steve let me ask you one thing. the head of the new york fed a big shot at the fed, part of yellen's inner circle.

his interviews and his discussion with the "wall street journal," the fed is going to change its quote-unquote forward guidance about interest rates meaning the fed funds target rate. the unemployment rate success thrown out. we're almost there at 6.5%. they will use quote-unquote a mix of labor market indicators. which tells me we're not going to understand a word they are talking about. that, therefore, guidance is -- it's going to be more opaque than fed speak usually is. therefore, no one will know what the hell is going on. >> again, i don't disagree with you. they are doing exactly what they are made to do. when the going gets going the tough get going. they put out this number that was quantitative and shift back to a qualitative approach. >> we won't know anything. they should use the dollar gold

commodity price, the yield curve. let markets tell them. what you're going to get is gobblygoos from the fed. >> it's completely and totally over-engineered. the process is they will lose credibility. >> it hill hurt growth. >> there's a good argument that interest rates will be lower by the end of the year. >> thank you gentlemen. appreciate it. now we're going to go to stocks. eked out some small gains. pretty good week on wall street. we'll tell you what you like and don't like. i'm kudlow and we'll be right back. uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive..

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all right. the s&p 500 ekeing out a new high. nasdaq down 16 points. dow transports touching a record high. question is today's jobs report give investors a green light to keep buying. let's bring in phil orlando and john rutledge. gentlemen i do not want to utter one syllable about the jobs report. i want know what i love and what i hate. john kick us off. what do you love in this stock

market? >> i love leverage, finance and private equity. the milk carton child for that is blackstone, although apollo, oak tree, carlisle will get to you the same place. dodd-frank has killed small banks and big banks loan money to big investors. >> so basically as long as money stays loose and it is going to be loose for a while, you like the private equity crowd. >> absolutely. this is the two years out of every ten wears when they book all their profits for the decade. it's a great time to own private equity. it's my biggest stock right now personally. >> great stuff. we may have breaking news. phil orlando what do you love? >> this winter has been absolutely brutal. it's really hurt first quarter gdp. once we get through the second quarter and beyond we'll be looking at three handles. i agree with the direction that joe had. so you like economically sensitive stocks, financials, consumer discretionary,

technology, energy. we think those are the areas that will work. >> financials have done very well. in fact financials have done very well for this entire five year bull market cycle, phil. you surprised at that? >> not at all. they will continue to do well. two areas we like best are housing and autos which are doing nothing right now because of the weather. they will come back at some point, you know, in the spring and summer. who will lend known the potential car buyers and home buyers, financial service companies will continue to benefit. >> john rutledge we may have to interrupt. i got to go. hang on. i have to go to bertha coombs on breaking news. >> there is a statement from malaysia airlines that said it lost contact with one of its planes. it took off from kuala lumpur, headed for beijing and six hours ago it was lost from contact from air traffic control. it was a boeing 777, 200

aircraft. boeing saying it's monitoring the situation. the airline says it's currently working with authorities who have activated their search-and-rescue teams to try to locate that aircraft. 227 people aboard. >> wow. all right. tough stuff. thank you. we appreciate it. we have time john rutledge what do you hate. real fast. what do you hate. a minute left. >> emerging market stocks, interest sensitive stocks, rates are going up, a lot of money borrowed in dollars to buy emerging market stocks. it's being torn apart now. stay away from emerging markets. >> any emerging markets you like or all of them. you dislike all of them. >> i don't want any of them at the moment because anywhere that had higher rates than the u.s. had capital inflows on $debt. the debt is being paid down. the assets are being sold. whether it's argentina, turkey or thailand or egypt it's all the same story.

>> gentlemen thank you. thank you for your patience. sorry we had to break in. phil orlando and john rutledge. go cnbc.com on our website for more on if malaysian airline problem. we wish those people godspeed. i'm larry kudlow. thanks for watching. ♪

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