Starting to protest. They say the malaysian government is stonewalling and even lying to them. Thats coming up in the kudlow report beginning right now. Good evening, everyone. Im larry kudlow. Were live here at 7 00 p. M. Eastern and 4 00 p. M. Pacific t seems that president obama and Vladimir Putins relationship is at the breaking point. We havent seen anything like this since world war ii. Today russia, a defiant putin as accused the west of, quote, crossing the line. Now we await president obamas response which must be tough, clear, and properly targeted. This evening we have an allstar Political Panel set to go. First, Michael Mcfaul who recently stepped down as u. S. Ambassador to russia joins us. Michael, thank you for joining us. Why do you think jay carney said that stock market remark . Did he do that deliberately to badg badger stock markets . What was he trying to do there . Well, i cant say for sure but reading the tea leaves of what he said today and president obama said yesterday, i suspect they are planning the new sanctions on individuals. Individuals related to the russian government, in the russian government but also probably individuals in the economy. They made very clear that if putin took this step of annexation there would be costs so i suspect theres going to be new sanctions. All right. Let me just read a couple of names to you. You probably know these guys. This is from the wall street journal editorial. Alexi miller, he can squeeze ukraine on gas supplies and prices. Egor, another croni and canadian became a billionaire after putin took over the kremlin. Theyve got a lot of assets in london and the United States and travel back and forth. Is tht kind of thing that you want to see the president do . Well, all three of those gentlemen you just mentioned are very close to president putin and unlike the list from yesterday, they do have assets abroad, like you said. He lives in europe. Igor and the company have a Major Joint Venture under way with exxonmobil. So if the administration and europeans it has to be together decided to sanctions those individuals, that would be costl costly. One of the issues here is london. Let me just briefly read some numbers. 70 russian stocks have been listed on the London Stock Exchange as depository receipts. Combined in the last ten years, russia has raised 400 billion in stocks and bonds in london. Last year was 47 billion alone. So the stakes are very high. Will london play ball, do you think . I have not heard mr. Cameron, Prime Minister cameron say anything. I think youre quite right about that. I think the feeling in the uk is different than it is in washington precisely because of what you just described. More over, politically its important to recall that Great Britain and russia have been undergoing their own renaissance, you know, reset over the last several months. And so they are at a different place. However, i want to point out a really important point. Its one thing to say youre going to sanctions individuals that are tied to the state in some way economically but thats not the entire russian economy. There are Russian Companies listed in london, listed around the world that have very little to do with the state and i think its very important, as sanctions go forward, that those thinking about them distinguish between those tied to the state and in some way indirectly helping president putin doing what is he doing in the ukraine and those that have nothing to do with the state are just good but they are going to suffer. Its a pretty hard thing, ambassador, to put a wedge between the two. I think ideally you are correct. Its a great point. I dont know how you do that. You either have banking sanctions or you dont. You either have financial sanctions in the city of lon dor or wall street or you dont. Let me ask you one final question. P putin said a couple times today, no more military action. He said hes going to defend the interests of the russian speakers by diplomatic and legal means, not military means. He said he didnt want to partition the ukraine. And he said he didnt want to take any additional military action s that credible, ambassador . Well, im glad he said it. It would have been worse had he not said it. Lets be clear about that. But lets just be clear, a month ago he wasnt saying he was going to go into crimea either. In fact, hes never given a speech about crimea and why its necessary to go defend russians there. I actually think today thats what Vladimir Putin is thinking. But if theres violence in eastern ukraine, people shooting each other, ethnic ukrainians killing ethnic russians, there will be action by president putin and kremlin to get involved. Its a precarious situation right now. Michael mccaul, appreciate your input here. Joining me is former counsel to president clinton, lanny davis and bill crystal. Let me begin with you, bill crystal. I think you just heard the discussion that we had, the importance of bill, what do you want president obama to do and when do you want him to do it . I would have liked him to have done Different Things five years ago when he pursued this reset. Putin took the lesson that he can use a pretext to invade another country, defending the russian speaking people when he lost control in ukraine a month ago. Thats why he did this. It wasnt just like crimeas been on his mind. This was a retaliatory blow. We need to work with the rest of ukraine to bring them closer to the u. S. Including military aid and guarantees. The idea that this can be done by sanctionsing a few individuals, that thats an effective response, thats silly. No boots on the ground, were just interested in economic sanctions, putin doesnt think that way. But we think that way, bill. Well, we shouldnt. We didnt always think that way and we shouldnt think this way and we have a military treaty with nato nations right next to russia. And then nato will crumble and what will the world look like then . Lanny, lets go to you. Boots on the ground, lanny . Thats a big step for me. What say you . Its more than the American People right, left, and center would tolerate. I think bill is a great man and with a great mind but he got his history wrong. President bush was president. My old buddy president bush, by the way, when georgia was being invaded by the then russia forces that took over the two outlier provinces. I think president obama has done it just right and the sanctions worked, i believe, in bringing iran to the table. They certainly suffered from the sanctions regime that both barack obama and Hillary Clinton administered. So i think right now barack obama has got it right. Whats he waiting for, hugh hu hewitt . I thought the announcement that the president made yesterday was so inadequate and he didnt say anything today. I mean, where are the olagards and the sanctions on banking in where is the military assistance . Where is the discuss about exporting natural gas . Where is the 25 or 35 permits to create liquid gas terminals . Where is the comprehensive package to say we mean business to putin . Its not there, larry. The contempt oozing out of the kremlin against the u. S. Is palpable. We have a treaty with poland. I wonder if americans maybe lanny will tell me this. If he decided to liberate the russian enclave, do lanny davis and democrats think we will defend our russian ally . Irans not at the table, lanny. Iran owns the table. Were inviting recklessness on the part of we might not be here today and nothing has been wrong and i worry about the next crisis, not the one that were seeing come to a conclusion today. Lanny, what is your response to what hugh is saying . Im very worried. This may not be munich all over again but i do think that nato is the place that we have to rally and take a stand. I just would like to ask you and my friend bill, is this the United States unique role . Where is europe . Where is england, as larry pointed out, and where is nato . Wed like to have a lot more sound and anger out of the European Union than im now hearing. Why is it only Barack Obamas responsibility to do what you just said . Bill, i want you to answer that. Nato im all for the nato military exercises. I think any financial sanctions have to have london involved and really anything has to have germany involved. What do you think, bill . Look, its not easy to bring the europeans along but thats what leadership is about. Larry, i was on sunday thinking there are serious sanctions. Many, many individuals, actually sectors of russia and industry and banking, not just a few individuals, most of whom worked the assets of the country, he announced the seven individuals yesterday. What kind of signal could that send . Could he make up for it by announcing military aid and exercises with allies . Its not just poland. Its small borders right and nato. I hope they ramp it up, the u. S. Response here otherwise i think were inviting very Dangerous Things all around the world. What do you think, on the way out, bill i want it to ramp up, too. I dont know why he didnt Say Something today. Putin is all over the tape. Wheres our president . But putting that aside, why do you think a guy like jay carney who is not acting on his own made those comments, you better not invest right now unless you want to go short stocks . What do you think motivates that statement . I think these guys tend to think they can save some words that will affect reality. Obamacare is great. Lets put up cute ads and they will decide its a cute program. Jay carney can affect reality. Its childish. Look at what the russian stock market has done. You know more about this than i do. As the president put on his minimal sanctions. Isnt the russian stock market up 8 . Yes, the russian stock market had been down 20 and its up 8 after the last few days. The r ucuble is up. Just how much money is in russia and could come out . I mean, you are right. People are reinvesting in russia. I dont know what that means. Its probably not exactly what we want. We have much more to discuss. Lanny davis, bill kristol, hugh hewitt, great panel. Thank you. Later, families of the missing malaysian flight start to protest against the malaysian government. Dont forget, free market capitalism, the best path to prosperity. Boy, we are a long way from this russian crimea crisis. Im kudlow. Well be right back. Well be ri. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. [ 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. music defiance is in our bones. Defiance never grows old. Citracal maximum. Calcium citrate plus d. Welcome back to the kudlow report. Were talking putin, ukraine, and president obama. Lanny, bill, and hugh. Hugh, does this whole brew haha become a Political Campaign issue, in your opinion in. Absolutely. I think the president is lawless in many respects domestically changing obamacare on the whim, choosing not to inform the overtime pay and lack of Strategic Vision abroad, we saw it in the 40 and 70s and American Power gets to a low point and independents and strong democrats begin to wonder what is the party doing, what is the president doing . I think this is a huge part of the 2014 as its developing. The unpopularity of president bush and the iraq war, do you think these midterm elections will be about putin and the ukraine . Look, as youve heard, im very mixed on this whole subject and i do want to remind my colleagues that the American People are in a nonintervention maybe even isolationist cycle and hugh may be right. Were tired of being always the ones called upon to police the world, always the ones to take the lead on anything that happens anywhere in the world, including the ukraine and there are a lot of americans and im certainly not an isolationist and believe we have to stay engage and where are the rest of the nations of europe and why does america always have to, quote, do something . Why is it our president s obligation rather than nato and the people on the front line starting with germany, as you asked before . Bill kristol, though, maybe because im a reagan guy, i respect lanny davis all the time. But when america goes wrong, the rest of the world go wrong. When we dont lead, the rest of the world goes off the track. Im not for boots on the ground but i think we have to be tough and strong and targeted here. Otherwise, the rest of the world is going off to the id. Let me just say that i agree with that and then ill rest and listen to my colleagues. I agree that we have to be tougher with the sanctions as occurred in iran. Were very tough and i give president obama and secretary of state clinton credit for strengthening the sanctions regime in iran. Id like to see that more here with mr. Putin. Bill . Well see if we hang tough in iran. Weve had sanctions mostly insisted on by congress. Weve now let up on those sanctions in return for no real letup on the ir iranians. I think they are going to be looking to restore american strength. Some will be more interventionist and thats a good debate to have. I believe im not sure in 2014 its an offyear election. I think it will be enough for the republicans to pick up house seats and i think for if i were advising a republican president ial candidate, i would say study up on Foreign Policy and defense policy. You can talk all you want about having a strong Foreign Policy if the defense capabilities are being guided, it books moot. I think it comes back in a big way. Hugh hewett, this was going to be my original thought but we got on to put ten ain and polit. I dont think trashing obamacare is going to be good for the gop. Even in florida it was an issue. Lousy jobs, poor wages, i think the gop has got to have some kind of Economic Growth message to clinch the deal in the senate races. Ill give you the last word. Absolutely right. Bill was talking to me earlier about tony abbott and Prime Minister harper in the west that is viable on all fronts. The freedom at home, everything needs, layer wee, were going to miss you a lot because youre not going to be pounding this desk in a couple of weeks but hopefully republicans will remember, thats what wins, Economic Growth and a freedom abroad. Ill still be around. Well get all of you guys on the radio show. Lanny davis, good to see you. Thank you. As always, bill kristol, appreciate it. Folks, sadness and shock has turned to outright anger. The family of the passengers aboard flight 370 are protesting about the lack of information that they are getting from the malaysian government. Well have a live report on that and the search for the plane next up on the kudlow report. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. More than a new interior lighting system. It is more than a hot stone massage. And more than your favorite scent infused into the cabin. It is a completely new era of innovation. And the highest expression of mercedesbenz. Introducing the 2014 sclass. The best or nothing. Welcome back to the kudlow report. New information is coming in from the thai military. Reporter good evening. We have two developments. Even with the new pieces of information, investigators cannot say where the jet is or what happened. First, the plane took a gentle 20degree turn after the pilot said all right, good night. The turn was programmed into the jets flight management system. Heres the most Significant Development reported first by tom costello on nbc nightly news. The information to make that turn was preprogrammed. Let me repeat that. The coordinates to turn the plane were put into the auto pile low computer at least 12 minutes before they radioed all right good night shortly after takeoff. Why would someone who put a turn back to kuala lumpur into the auto pilot . It may be the pilot who has extensive experience was being prudent and knows the Old School Rules of flying, always have a plan in place before an emergency arises or it could also reveal that this was all planned for yet an inexplicable reason. The other big news is that authorities in thailand say they may have radar data from the morning of march 8th that shows the flight 370s flight route. Now, when thai officials were asked why 11 days later they are only now releasing the information, a spokesman said because thailand was never asked. The families are now the families of the passengers are none too happy about the flow of information in the case some have threatened to go on a Hunger Strike to demonstrate their hunger and are hoping to reveal officials to do more and do that quickly. Larry . Kerry, thank you for that. Second of all, the thai government, thats the most ridiculous b. S. Ive ever heard. The preplanned turn in. Computer system, you were saying that the pilot is an oldschool guy who might have set this up . Im not sure i understand that. Okay. If youve been flying for a long time, you know the oldschool rules. When youre taking off in your plane, you need to always be planning for an emergency. You dont have an emergency but you say, if i have an emergency, what do i do . Its common for an experienced pilot to say, if i run into an emergency, i can put on auto pilot and go back to a landing location. So that is t