the senate passes the paul ryan budget deal. now it goes to president obama's desk for his signature. it's a big victory for paul ryan, and he will join me tonight and talk about fixing the most controversial part of the bill, that being cutting some pension benefits for disabled veterans. we're also going to ask ryan if the stage is set for him to run for president in 2016. don't forget about the continuing obamacare disaster. today's problem comes from the insurance companies on the federal exchange. they say the administration is forcing them to retroactively cover people wo don't sign up in time, and they may not be able to make it happen. >>> a day after these angry tech ceos complained to president obama's face about nsa snooping, it now look like some changes are already in the works. all those stories and much more coming up in "the kudlow report", beginning right now. >>> good evening, everyone. i'm larry kudlow. this is "the kudlow report." we live here at 7:00 p.m. eastern, 4:00 p.m. pacific. the fed taper and soaring

paul ryan's been very clear about that. we need not just short term, but long-term solutions. >> do you feel that paul ryan has sold you out? you saw him at this press conference. he was not saying the things he was saying now. do you feel like paul ryan has sold you out? >> i will not say that, but at the end of the day, spending is going up. if republicans and conservatives have said for years we've been spending too much money, bipartisan usually scares us. that means more spending at the end of the day. will let me ask you a similar question. paul ryan rarely gets credit for work across the aisle, and he does it frequently. >> i give him credit for that. for trying to hammer something out. it may or may not fly. >> all we hear is the intransgent republicans. >> i think he deserves credit. this is not ease tee to sell to his own conference. i don't know whether we'll get there. we're going to lose a substantial number of republicans. we're going to lose a substantial number of democrats if we what we hear about the bill

. >>> poor paul ryan. he is now in deep trouble in the republican party because he made the mistake of actually trying to get something done in congress. >> if you far more deficit reduction you are for this agreement. >> not great. not second best. >> would have preferred something quite different. >> least worst. >> it's not satire. >> isn't budget deal. >> partisan budget comoro is my. >> we're not going to get everything we want. >> there is already a lot of criticism in both parties. >> opposition from conservative groups. >> the groups that came out and opposed it before they saw it. >> john boehner responded to criticism. >> they're using our members and using the american people. this is ridiculous. >> like revenge of the establishment. >> this time it is personal. >> if you are for more deficit reduction you are for this agreement. >> appears to be greater division on the right. >> isn't a grand bargain? >> unemployment benefits will now expire. >> absolutely unconscionable. >> republicans did not

so now lindsey graham is against paul ryan. because the front lines in the republican civil war are apparently moving so fast right now, that there's no way to tell which side you're supposed to be on, until you realize you're on the wrong side. but the republicans just have broken out into a full-on civil war right now. it's not just republican members of congress against outside conservative groups who pressure them. it's also republican members of congress against republican members of congress. and particularly, right now, it's republican senators against republicans in the house. and none of the old alliances appear to be sticking. so this is all very fun. it's all fascinating to watch, at least, as the house goes to bed for the year. the plan in the senate, however, seems to be that they will never go to bed again, ever. the senate stayed in session all night last night. they took a vote to confirm a judge around 1:00 a.m. then they stayed all night to take another couple of votes to confirm another judge and another nomi

being the party of no and now against paul ryan? >> what i can tell is that you the only people benefitting from this deal are the special interest groups that will get more spending in washington, d.c. if you look at the last year, the ideas of the democratic party. we have less unemployment, a faster growing economy, and it is all because washington, d.c. has republicans willing to stand up for the american people instead of special interests. >> okay, thank you both. to go facebook or twitter to weigh in on our fireback question. who do you think made out better in the budget deal? right now 59% say democrats. 41% say republicans. interesting. >> the debate will continue online at cnn/crossfire. >> join you go tort for another edition of "crossfire." erin burnett "outfront" starts right now. -- captions by vitac -- www.vitac.com >>> i'm jake attempter in for erin burnett. back lash against the budget deal. not everyone in washington is jumping on the bipartisan bandwagon. the first crucial test comes tomorrow when the vote is set

a rand paul right or is paul ryan right when he says it's a small step in the right direction? >> well, i think congressman ryan has the better of this. it's a small step in the right direction, especially with the fact that they've now got federal workers paying more into their pensions. this kind of corresponds with what republican governors have been doing in states. it makes it seem as if the republicans at least have a coherent strategy. as to rand paul, senator paul during the shutdown which so damaged the republican brand was kind of missing in action, and now suddenly he steps forward at this point. he's beginning to look like a sailor out on a boat that's kind of tacking with the wind depending which direction it's going in. i think that this whole episode, quite frankly, whether it's ted cruz earlier in the shutdown and now this is damaging everyone in washington. the public's attitude toward washington is very negative. more and more to my mind this is creating an opening for a republican governor out there who is not a part of this roman colosseum in washington. >>

this is a paul ryan budget and paul ryan -- >> it's not a paul ryan budget. >> discretionary spending is what kicked bill clinton out of the entire budget. >> discretionary spending in today's dollars, it's now 580 billion. it's out of control. >> it is out of control. this whole thing is out of control. i've got to tell you, paul ryan is going to save republicans from themselves. jimmy, mark, jim, stick around. we're going to come back to the panel in just a moment. we've got more to do. this is serious stuff. >>> up next on "the kudlow report," the markets were down for the week. they are worried that there may not be a christmas rally. we're going to talk your money next on "kudlow." (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-

and i think that's what paul ryan has done here. when you look at some of these conservative group, they had the fund raising letters out before they had any ability to analyze what was in the deal. so the politics for profit wing of the party is at it again to the detriment of the wing of the party that actually has to play a part in governing the country. and that's what you're seeing here. >> are you surprised to see the speaker of the house directly shot at them. that they're mad because they know this is a way if you're mad at a budget deal to show your anger, and can you raise a lot of money on it. and that's not the interests of the republican party being done there, but the interest of the fundraiser. i've never seen boehner to do this. to go after the fund money, the rich people in the party. >> there's a lot of evidence to suggest that he's been thinking it for a long time. it's good that he said it. and so when you look at the recent history of the republican party over the last couple years, look, when you appease this c

paul ryan is a defer sit hawk. he likes to concoct budget plans with blende of bitter medicine to go around. question, is this a winning presidential agenda? >> he in his previous budgets has gone after entitlements. i don't think he will do that in the negotiations that are going on the end of this year into next year because senior citizens are the only voting bloc that's loyal to the republicans right now. he won't want to alienate them. ryan is trying to pick up the jack kemp mantle of compassionate conservatism. he has been traveling to urban areas with bob woodson who was a civil rights activist who was prominent during the reagan era. they don't believe in government support for these programs for anti-poverty programs. they want to energize the private sector. i don't think it's very realistic, but nonetheless that's his new schtick. mounting a presidential race from the house is a tough thing even in the best of times. these are the worst of times. when you have this -- ryan is a defacto member of the hous

you know who they love paul ryan. he was the coawjer of new budget agreement. tea party darling, former vp candidate all wrapped up in the looks of a gelden child whose fiscal geenous will lead us to the promise land will reagan will rise once more. and he will come again in glory to judge the living and the dead though really for the dead they are already dead so -- it's really for the living. my point is this. [ laughter ] conservatives like paul ryan. >> you called for more leaders. paul ryan has led. >> he has led to make a compromise that sells out what needs to be done. >> you called paul ryan a sellout. >> i didn't say that. >> jon: you know that senator who appears to have just woken up on a park bench is right. [ laughter ] i didn't say paul ryan was a sellout i just said he sold out. if you excuse me i'm going to bathe in the pond at central park. [laughter] ryan stood fast to his ethic of compromise. >> did you ever think the piece of legislation you were responsible for would be called not conservative enough? >> it's a strange new normal, isn't it?

>> i'm not sure paul ryan wants to be president. i think the vice president took away from his core strength which is the bulky details of budget policy. he likes to do budget stuff. he is very excited about cbo reports. theral role is lion of house. >> megan is our philosopher king libertarian. no one runs for vice president who does not want to run for president. you can be both. this week you could see how ryan thinks and how john boehner thinks. these compromises, if you will, they think they will take back the party. boehner's outburst is not angry as it seems. we, the chamber of commerce, and the financial community, we are getting the party back. ryan will be a leader. >> my prediction is he will be the next chairmain of ways and means -- but when you are as young as paul ryan -- >> he is a baby. >> can he make a difference? >> they're both serious and somewhat modest. neither are press hounds. i think it will be good. i think the job is bigger than one man. >> i think the obama administration has troubles that are bigger. wh

paul ryan said this deal cuts corporate welfare. patty murray is disappointed because this deal does not close any corporate loopholes at all. i don't know which one is correct. paul ryan said it begins to reform some mandatory programs. but he didn't say how and i thought entitlements were off the table. so there are questions about the deal and we have to go through the fine print. >> there are many differences between the two beyond their height. >> and that is a big difference. >> jonah, your thoughts. >> i thought it was striking. you had paul ryan talking about where his priorities are, he talked about his principals, getting back to regular order and the constitutional role of the power of the purse and restraining the debt. you heard patty murray talk about a laundry list of clients of the state who need money. and that in essence gets you at the difference between the republicans an the democrats today and their philosophical approach. but at the beginning of the panel, i think there is one incentive for barack obama to agr

we know you like paul ryan. he's from wisconsin and showing leadership here, but do you think this is a good idea? >> i do. i think it is good to go forward, but i also think we have to reinforce why races like the one we're going to have in arkansas and other places around the country are so important. if you're going to bring conservative activists across the table, they have to see it for what it is, and it's a big wake-up call particularly if grassroots people want to see a stronger budget in the future, we have to trust the government. >> you've got over 500 people who have signed up for gop changes in your state. you're being conservative, and yet you seem to be doing something different in your state. you'll allow people to go directly to the insurance companies. is that a level of support on some level for obamacare? >> no, in my case, i did everything in my power. i allowed my attorney general, on the first day i took office, to join the federal lawsuit. i didn't take the state exchange, i didn't take t

i think paul ryan, what you said earlier is right. paul ryan did a service for the republicans. you didn't mention is he put back, replaced half the defense cuts and defense is wildly disproportionately affected, as you know, by both the budget control act, itself, and the sequester and a lot of people i've talked to really are concerned that this was cutting deep at the muscle, way beyond the kind of trimmings of fats from the pentagon. i think he did a service in that way and from a republican point of view, he's now assuming it passes the senate tomorrow, he's cleared the decks. won't be a government shutdown in the next year and a half. >> bingo. >> we can focus on obamacare. >> focus on obamacare, tax reform, pro growth steuff. >> do you have disagreements? >> paul ryan did come out the winner in this and actually the super rich are also the winners because the tax loopholes that the democrats wanted are going to not be closed. the people that lose, though, on this deal are the folks that are going to lose unemployment insurance, as you pointed out. the folks that are also

we know you like paul ryan. he's from wisconsin and showing leadership here, but do you think this is a good idea? >> i do. i think it is good to go forward, but i also think we have to reinforce why races like the one we're going to have in arkansas and other places around the country are so important. if you're going to bring conservative activists across the table, they have to see it for what it is, and it's a big wake-up call particularly if grassroots people want to see a stronger budget in the future, we have to trust the government. >> you've got over 500 people who have signed up for gop changes in your state. you're being conservative, and yet you seem to be doing something different in your state. you'll allow people to go directly to the insurance companies. is that a level of support on some level for obamacare? >> no, in my case, i did everything in my power. i allowed my attorney general, on the first day i took office, to join the federal lawsuit. i didn't take the state exchange, i didn't take t

have a great night. >>> poor paul ryan. he is now in deep trouble in the republican party because he made the mistake of actually trying to get something done in congress. >> if you far more deficit reduction you are for this agreement. >> not great. not second best. >> would have preferred something quite different. >> least worst. >> it's not satire. >> isn't budget deal.

>> i'm not sure paul ryan wants to be president. i think vice president took away from his core strength which is the bulky details of budget policy. he likes to do budget stuff. he is very excited about cbo reports. i think his natural role is more a lion of the house or senate than it is in the white house trying to manage all those people. >> megan is our philosopher king. libertarian who does not trust politics. no one runs for vice president who does not want to run for president. you do not go through that. you can be serious about the budget and want to run for president. this week you could see how ryan thinks and how do john boehner thinks. these compromises, if you will, and the people who will get a budget through they think they , will take back the party. boehner's outburst is not angry as it seems. we, the chamber of commerce and the financial community, we are getting the party back. ryan will be a leader in that party and a candidate. >> my prediction is he will be the next chair of -- but when meansthe house ways an

ryan was using to explain paul ryan's temper. i don't think the irish had anything to do with it and there is no one under 60 who knows what that phrase actually means. i will leave it to google to explain to anyone who actually cares. >>> coming up, inside the national rifle association, and a judge appointed by president george w. bush rules that the nsa's collection of mass phone records is unconstitutional. that's coming up. there's a saying around here, you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. [ car beeps ] ♪ ♪ we're gonna need a bigger bucket. ♪ [ male announcer ] more people are leaving bmw, mercedes and lexus for audi than ever before. the holidays won't last and neither will the season of audi. vi

ryan was using to explain paul ryan's temper. i don't think the irish had anything to do with it and there is no one under 60 who knows what that phrase actually means. i will leave it to google to explain to anyone who actually cares. >>> coming up, inside the national rifle association, and a judge appointed by president george w. bush rules that the nsa's collection of mass phone records is unconstitutional. that's coming up. mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. sleep traiends sunday! interest-free for 3 event it's your last chance to get 3 years interest-free financing on beautyrest black, stearns & foster, serta icomfo

center stage, paul ryan. this weekend paul ryan seems less interested in taking back the party than playing nice. >> i think these groups are indispensable to keeping taxpayer interest accounted for, keeping people account able. we some difference of opinions on tactics. we all believe the same thing with respect to the ultimate goal. >> leadership might have had spine stiffening but orders are dictate freddie above, power in the republican party does not necessarily rest with the speaker's gavel. according to he had killgore and tpm, remains dominant force and therefore civil war doesn't remotely resemble past skichls. millions of miles away from i don't remember, rockefeller and goldwater or ford and reagan. take it from the man himself, the gop's supposed savior who as tee a victory lap over the budget deal downplayed slap back to conservative rabble-rousers and insisted, hey, it's all good. >> i think john just kind of got his irish up. he was frustrated groups came out in opposition to budget agreement b

i think paul ryan will unveil. >> i think paul ryan will introduce a set of republican alternatives. >> not one huge bill. but a proposal for medicare, medicaid, individual market, corporate market and i think that will be in january and will help republican candidates say with more comfort and i think more truth that republicans do have a positive reform agenda in health care. >> let's get right to our panel. joining us now is mckay coppins of buzz feed.com. er irin carmon, and brian bought letter. >> there is so much psychological stuff here. bill crystal from the neo conservatives, this obsession with mission accomplished. all of this sort of george w. bush kind of iconography creeping back in. but not from democrats. from republicans. from the rupert murdochian "wall street journal." how did george w. bush go from being the beloved president who was the icon of the right to a dirty word? >> right. that's what's so fascinating here. this comes at a time when republicans are very happy to know that george w. bush's approval ratings, like all presidents after they leave office, have

house republicans are embracing paul ryan and embracing this deal. john boehner is getting to go back out there -- >> and call them ridiculous, all that stuff. >> and at the same time, suddenly mitch mcconnell and john cornyn are saying paul ryan is crazy, it is a bad idea. we don't want to do this. and it is a fascinating flip of roles. >> we'll have to see how long the house votes, they're saying saturday night that would be hilarious just for the state they would be in by then. but in the house when they go to vote on the paul ryan thing, what is your impression? do you think it will pass? >> i think it will pass, there are enough house republicans supporting it. a lot of guys are looking for ways to put distance between themselves and heritage action, and other groups saying i'm not totally beholden to these groups. and ryan is a unique figure within the republican party. people believe in him. they think he is a conservative. the mitt romney/rhino stink didn't go to him -- >> i love that you had a staffer saying that paul ryan is our jesus, you

both paul ryan and patty murray have said that. bottom line is i think this steaks sequestration off the table which would have done draconian things to our military. and moves the economy forward, moves the government forward in a way where there's more certainty. to get back to senator wicker's point. it's true, the amendment tree's full. if we bring another amendment in, the house is gone. they won't be back for 25 days. it's not like it's going to be taken up again, it's not. you said it's better to do something that might not be perfect than do nothing at all. i agree. >> but it seems like you democrats caved on that issue, that issue that was supposed to be incredibly important to democrats. >> i think just as the military retirement that senator wicker talked about. harry's talking about bringing it up in january. i think we can deal with it then. if we have the votes to get it passed i think we can move forward in a constructive way. >> we now have two years to talk about something else other than the budget, the budget, th

patty murray and paul ryan did a back room. they cut out the -- i love there have been other people coming on that were all part of the budget conference. they weren't part of this. it was a two-person deal. >> back room deals are good. earmarks now look like a critical part of getting anything big done because it gets you the final votes you need. so, you know, a changing perspective may be on how congress ought to work. i think the number of hours they meet is a delicious story around this table. i don't think americans care how many hours. >> oh? wait till you see those tv ads, though. i'm telling you. >> what do you think they've done that fix health care, create jobs, do something for people's lives. that seems to be the thing that has political -- because they haven't done those things. >> you're on the hill more than any of us here. the conservatives, how are they handling what heritage and the club are saying versus what ryan and boehner are saying? >> i think most of them on the hill probably would side with ryan and b

conservative enough, paul ryan is not ksht enough. who is? >> ronald reagan. >> ronald reagan so wisely said this and we heard it and thought how perfect for today. >> people keep looking to the government for the answer and government is the problem. >> reagan will rise once more? >> and he will come again in glory to judge the living and the dead! >> left wing press dismissing this, b-grade actor, has been, not too smart. >> you never did get the idea, did you? >> we have got to stop warshiping ronald reagan. >> holy [ bleep ]. >> when ronald reagan is another hollywood liberal, you've got to say to your party, are you kidding me? >>> and let's get right to our panel, political strategist, angela rye, and guilani cob. welcome to you all. guila guilani, there is a lot of tactical considerations, is the nicest word i can use, for what we're watching on the senate floor right now, republican senators here, the last thing they're going to do at the end of this year of an unproddive congress, and they're going to decide right now as they

also too, i don't think they trust paul ryan. >> really? >> i think so. >> i think -- >> we think he's running for president. >> i think ryan is a great tool here. the issue here, steve, once you break the caps, once you break the sequester they are gone. they will never be -- you'll not make up for them. i saw this years and years ago with gramm-rudman. many many believe this is the republicans signature policy. the spending gdp has come down. how do you see this? >> i see it i think the way you two do. it's a train wreck inside the republican caucus. what the negotiators will do is take to it the floor so it doesn't have to go through the committee process which means it doesn't have to comply with the boehner rule, the majority of the majority. a lot of noise you're hearing from conservatives in house is just noise. >> let's say that the republicans walk away, i don't think 40 or 50 will walk away but say 20, 25 walk away. will democrats cross over? >> yeah, i think they will. >> not y. whelmingly. >> they don't need overwhelmingly. >> l

ofy are accusing paul ryan pitulation. his response was this -- if you want to get something done, you have to be criticized. republicans do not run everything. aprently there are people in washington who find that kind of reasoning toxic, charles. >> letet me start wi an editorial note. i love how you cannot wait to get t your teethth into republis throwing mud at republicans, on a week when this administration -- by the way, the viewers, you will not hear anything about the secretary of hhs unilaterally changing every deadline in the obamare law without any legal authority, in way that is astonishing. but you will not hear about it on this show. >> we just did. >> this feels like a filibuster. >> did he mention fox? i is, where the big issue santa is white and jesus is white? is that the fox we are talking about? let's not go there. foxe are talking about the that explains to people -- >> jesus is white and santa is white. >> i would like to quote abc the who pointed out of seven republican house mbers runnin for the sen

paul ryan accomplished something important. you mentioned the war and speaker boehner and the outside groups, it is going to be the last shot of the war at 2013 with speaker boehner getting his irish up and hitting the groups the ryan has cleared the debts. there will not be a big internal fight. there will not be a firing squad. to they handle the debt ceiling, that is manageable they can focus and the republican party can be united focusing on obamacare and what paul ryan has accomplished is a political matter for the republican party and substancively, if you care about defense spending it is impressive. >> we will talk about the debt ceiling in a moment but president obama will not do anything about entitlements because having read your book, "the price of politic," in the back president obama said that democrats have to get serious about entitlements and, in fact, he used the word "untenable" to continue not to but it seems in the doles that if congressional democrats decideed they are the of entitlements going into 2014.

paul ryan agrees with that. the president also said he's willing to look at medicare premiums for those that earn more. ryan says he agrees to that. i don't understand why adults can't come into the room -- this is not placing -- i think republicans are at blame but at some level this impasses, we have a subsenate, we all have to give a little bit here. if not the sequestration cuts will take effect in january. as much as some people don't like them, the sky didn't fall in when they happened at the beginning of this year. i doubt the sky will fall in if it happens this year. that threat hangs over them. >> these are different cuts than defense cuts which theoretically has that action looms larger over the republican party. >> i think nobody wants to do this except tea party people. very interesting senator patty murray supposed to be on vacation. she personally traveled to washington. she's meeting -- the senator, lofty one, they are working together, not talking about any kind of grand bargain. lots of people d

to paul ryan making sort of the least bad. i'm trying to paraphrase platter where he said the least dishonest liar something is the least bad bad deal that well as the tea party supporter i will urge the tea party to look at this plan before making any decision and to realize what it is it is a compromise. from two parties that have vastly different visions and ideologies about government and so i applaud paul ryan and patty murray for this deal i think this is what you know what happens when you compromise nobody gets one hundred percent of what they want paul ryan said he didn't get everything you want patty murray said she didn't get everything she wants but you know what we need to realize that with the divided government we have to come together splitting it down the middle the same is down the middle that's a good place to start of course i'd like to see more reforms more cuts all those things but hey obama is president the democrats controlled the senate let's be honest people about what we can accomplish in the next ye

i think for paul ryan, though, it's also a 2016 move. he sounds like he's trying to sound like the guy that sort of can bring people together, create a deal. i mean, he had a lot of language about when you compromise. everybody doesn't get what they want. he's sounding very practical and pragmatic. i wish we would have heard that about ten months ago. we probably wouldn't be in this situation. and it's sort of interesting when you listen to john boehner in his frustration with the outside groups because i have to tell you, thomas, over the summer when you watched ted cruz and those guys with their, you know, we're going to repeal obama care, and they let them kind of get further and further and further out there with that, i sort of -- when i was watching boehner yesterday, i thought, well, what did you think was going to happen? when you sort of let bad behavior continue, you're going to see it again. and the people that he's dealing with, they don't care about another government shutdown. they don't care about those larger numbers for

congressman paul ryan coming up. >>>ç i've always said i will work with anybody to implement and improve this law effectively. if you've got good ideas, bring them to me. >> well, one republican lawmaker wants to take president obama up onfp that.ç representative kim griffin writing a letter to the president today. representative griffin joins us. thank you, sir. >> thank you for having me again. >> you are taking the president up on the offer. >> yes. we are wondering whyç the president wants to keep doing things the old way. what i mean by that is, when there is a problem. washington and this president, in particular, they want to have a top-downç washington knows best solution. pick an agency and say that's the answer to this problem. we have got a lot of alternatives, a whole host ofç them. some have been around for a few years. some were around when obamacare was debated. >> i think the will whole idea though is can you you get the meeting with hill. he has said that he will meet with you if you have s

boehner now, and paul ryan have called their bluff. their card has always been, we can take you out in a primary if you do something we don't like. that's put these outside groups in control. banal so what we're going to see in the coming months is who's right? who is making the right gamble? can the tea party take out all these republicans who decided to call their bluff or not. >> the new deadline will be march when you have the ending for filing in some of these primaries and some of these folks may come back. thank you both for visiting with us ohhen a big day. coming up, we go beyond the budget and look at secretary of state john kerry. he's leading a furious pace on foreign policy issues from iran to syria. and refusing to give up on the prospect of this president obama doing what many have failed to do, reach a middle east peace deal that's the hope. we'll cover it all. as a business owner, i'm constantly putting out fires. so i deserve a small business credit card with amazing rewards. with the spark cash card from capital one,

in fact, i believe paul ryan saved the gop from itself. if they have any hopes to retake the senate in november, the focus must be on obamacare. not another budget shutdown. >>> and obamacare's ongoing enrollment errors weren't enough, get this, turns out your personal data may not be safe on the federal exchanges. not just some hackers, but from the very people meant to help you navigate the onerous obamacare monstrosity. that means your health information, social security numbers, taxes, could all be at risk. we'll explain in just a few moments. >>> plus, investors anxiously watching this week's year-end fed meeting. the stronger economic data and a budget deal mean a tighter fed is coming. will any change in policy prove the grinch to any christmas rally? all those stories and much more coming up in "the kudlow report" beginning right now. >>> good evening, everyone. i'm larry could low. this is "the kudlow report." we're live here. 7:00 p.m. eastern. 4:00 p.m. pacific. but first up, this evening, a huge rally on wall street. the dow up

paul ryan addressed their concerns today. >> the way i look at it is this. they're part of our conservative family. i prefer to keep these conversations in our family. john was frustrated because they came out against our agreement before we reached an agreement. i was frustrated as well. i see the tea party as indispensable. invaluable in keeping the taxpayer in the game, keep washington accountable. when we lost the majority in '06, we deserved to lose it. they helped us right the ship again by being fiscally conservative. >> joining me now, chris wallace. happy sunday to you. good morning. >> thank you, same to you. >> how divided are they, chris? the gop? >> they're pretty divided. when i say they, the establishment republican leaders in both the house and the senate on the one hand, and some of these outside conservative tea party groups that are raising money. and look, the frustration that you saw ryan talked about john, john boehner, the speaker of the house, who really took off after some of these groups, said they're ridiculous, they lost credibili