i'm hoping that larry kudlow will run for senate and bring back free market so small businesses can prospered comment, sir larry. >> i'm hoping we clean up the vocal rule, i completely agree with carol. >> can i respond? >> before you do let me also read the first paragraph. what jeb said, he said according to the world bank not exactly a right wing think tank the u.s. ranks 46th in the world in the terms of the ease of starting a business, that's unacceptable. >> first place, our legislation has nothing to do with the ease of starting a business, nothing whatsoever. secondly, the vocal rule has nothing to do with lending with small business, this is why i asked for specifics. what the local rule talks about is large banks who will be doing derivatives in the same place they're doing other things. lend to go small business, if you are a smaller bank you are not involved in this, if you are a big bank -- nothing in the vocal rule respects bank lending. there have been higher kplal standards and they may restrict the amount to be lent, but nothing in the legislation either restricts the start

larry kudlow says he is not expecting to see a rate hike just yet. larry joins us. let's be clear. you're not expecting them to raise rates or you don't think they should raise rates? >> i think i'll go both ways. both on that. >> okay. >> i'm a hawk but i'm not a hawk right now. i think they are going to have to normalize. i get that. you can't be at zero forever. >> who would be hurt by a rate hike right now? what damage would it do? >> you can intensify deflation. china hasn't bottomed yet. if you look at the treasury break-even inflation spreads, they are narrowing. commodity index is falling. gold and oil falling. the dollar is strong. you just heard from the gentleman before how strong it is against the foreign currencies. these are not bad things. i'm not describing a catastrophe. i'm just saying hang on. just wait a little bit. import prices came in, year on year down 11%, 10%. just wait. have some patience. that's all i'm saying. >> larry, while we have you. yesterday on "squawk on the street" we asked ge's immelt about doing business in your state of connecticut. >> are y

appreciate it. >> larry kudlow. and the republican presidential debate october 28th in bolder, colorado. >>> with the dow up 164 points let's bring in chad morganlander from stifle, he's a portfolio manager. scott brown also joining us chief economist at raymond james. scott, as a chief economist i imagine you will have to feel calls about a government shutdown and potentially about this political situation as we await boehner speaking. what will you say to clients when they ask you about the efks on the economy? >> well, the effects on the economy ought to be relatively small. you're talking about maybe a tenth or two of a percent off of gdp growth. it mostly shifts the growth around a little bit from maybe week-to-week or month-to-month. there is some concern we may not get an employment report next friday. and if it's a lengthy shutdown, a lot of the data collection is not going to be there. so it may distort the economic numbers not just for october but november as well. i think economists are certainly going to

larry kudlow, the great supply cider loved this plan. that tells you it's not a progressive tax plan. and so he's going to -- i think he is in grave danger of completely giving up the very thing that people who liked him thought they liked about him. >> one of the great tax code provisions that donald trump lives on and everybody in the commercial real estate business lives on is the deappreciation of commercial real estate. you buy a house, you're not allowed to deappreciate it for a very good reason -- it doesn't depreciate. so, too, with office buildings. they don't actually deappreciate. they go up in value, but commercial real estate lawyers are allowed to pretend they depreciate and deduct that. if i got one tax question for donald trump, it would be about the depreciation of commercial real estate. i will never get that question so he doesn't have to worry about his answer to that. >> but lawrence, lawrence, details are for losers. we're just going to get together the -- >> eh said he's the master of the tax code. this is his whee

let's bring back in larry kudlow, and we have brian gardner. brian and larry, welcome.first off, do you think it will raise the odds of a shutdown in december. most agree october gets pushed back and what's your overall take on this stunning news? >> i just want to raise a contrary view. i'm not 100% certain that it avoids a shutdown october 1. >> why? >> i want to make this point. it will require for mr. boehner's last actions to get a coalition that includes democrats, okay? and many people will tell you that nancy pelosi wants to pass the ex-im bank as part of this deal and the republicans do not. presumably kevin mccarthy may be the new speaker. he's against it. certainly the conservative caucus is against it. that's a stumbling block for october 1. another stumbling block, brian, is the highway bill. they don't have financing in the house locked up yet for the highway bill. so i'm going to buck the consensus and merely say it's in a state of flux right now. there is nothing certain. >> you know, brian, politics always sounds complicated until you realize ultimately

this is larry kudlow's number one reason why the fed won't hike. you just heard taiwan and norway that cut today as well. it's certainly going the other way on the federal reserve. whether or not they want to ajust to a place, let's call it 50 basis points, and announce some sort of hold there for some long period of time. 25, 50 basis points. that's not the end of the world. it would get back a little bit of the rope they lost over this period of time. >> they could have said -- they did neither. thus, they left more people confused. does the fed give that clarity tonight and some of the uncertainty? we should see. steve liesman. coming up, netflix could be the best performer in the s&p. it's up 100%. one analyst says don't get used to the rally because a 30% drop is on the way. who will defend that? neck. the auto parts sector is seeing a big rally over the past one year. does the hot trade continue, or is it about to stall? auto is all over the news. you're watching cnbc first in business worldwide. but what if you could see more of what you wan

. >> pete, you know, people talk all the time and larry kudlow is famous for saying, you know, earningsre the mother's milk of stocks. >> comment, first of all. >> the most interesting thing is, first of all, carl, as you were just indicating is talking about financial engineering, and that's exactly what he basically forced upon the apple board, tim cook and although rest of these guys. hey, look, start doing something with all this cash work, right? that was exactly what came out of all of that. that's actually worked out relatively well, i would say, for apple. i think in terms of freeport mcmoran what stands out most for me right now is where have we seen absolutely the names that have been absolutely torched to the down side? it's been freeport mcmoran. it's been u.s. steel and throw in shaneer. every one of them falling off a cliff. now, if you look at both u.s. steel and freeport mcmoran, you're talking about stocks that are trading around $10 or underneath $10. when he says, hey, look, this is an option for the future, i think the most important thing that kwarl was talking abou

i'm doing a twist on larry kudlow. >> "new york post" says he's going to run for that seat. >> do we st a debate? >> we are hosting a debate. >> between larry -- >> blumenthal. final point on etf they didn't raise the consideration. they replaced stock with cash so it's eight bucks in cash. >> raise some capital there. >> after all that they didn't raise it all. >> unbelievable. this is a huge deal. huge. no one cares. they rather talk about media general. >> we'll talk about that later. bring on the ceo the company that's trying to do the overbid from media general. >> alcoa news. we're filled with good news that doesn't matter. >> that's a good point. a lot of the bad news does matter. glencore and volkswagen. haven't got into a lot of that. dudley is crossing the tape and sarah eisen is on the floor. >> a voting member one that's very close to janet yellen, new york fed president bill dudley talking. headline is the fed will likely raise interest rates this year. very much echoing what we heard from janet yell len. it is based on the data versus the calendar. on this wholedea of th

larry kudlow, ron insana and steve leisman. >> this is a nobel prize winning crowd. u, brian. >> larry, the job number, 173,000. i know it missed the headline estimate. but 60-some months of job growth. >> i think it is mediocre number. by the way, 37,000 came from government. private jobs only 140,000-some. very mediocre. participation rates are still very low. depending on how you calculate it, you could be 6 million jobs short of the long-term line. could be as much as 12 million jobs short. it is better than nothing, i agree. you're rising into a modest recovery. i'll talk about the fed in a minute when we get into all that stuff. but it ain't nothing to write home about. >> i called this a more solid jobs number only because we did see the revision was up from last month, 30,000. we have seen the number of discouraged workers go down. you're not impressed. >> i'm just saying, we are short jobs and there are too many people left in the labor force. >> where is the dislocation? >> i don't know that i necessarily know the answer to that. there seems to be a split. i

. >> my friend and yours larry kudlow made a point to me last week that to his observation, perhaps the factionst republican right that wants to be more combative or aggressive in taking on some of the issues with the administration and others are less interested in governing per se than they are in making a point and seeing their point to its conclusion. does that -- do you have any sympathy with that thought? >> i agree with larry completely. i don't think anyone in the party disagrees about the frustration of too much government, too many taxes, too many regulations. and the aura that we can solve all of that in a divided congress with the president, i think has caused a frustration which is stronger on the far right because they think if we've been elected we ought to be able to produce. we don't have the kind of majorities to produce everything we want. but we would like to move things, i think, in the right direction and try to make some progress. that's governing. if you just shut everything down when you don't get your way, it's taking the marbles and going home which wraely can

let's bring in larry kudlow. we'll talk about the bank.his move in the ones and twos is quickly gaining attention. nobody seems to really be able to pin the reason of why we're seeing this move. do you have a very educated guess? >> not particularly. i mean, who knows? >> everyone is ascribing it to the fed. but there is also the school of thought is china a net seller maybe because they need to raise some of the cash? >> think of this, too, sully, people may sell bonds to buy stocks. the stock market looks good. i'm not an expert. i'm not a technical guy. but there are some signs and there are some people saying stocks have bottomed so i'm getting out of bonds and going back into stocks. the safety trade may come to an end. >> so you'd be more concerned, maybe intrigued, not concerned, if we're seeing this move in the ones and twos and stocks weren't doing squat. >> i would be. that's a good point. i would be. i don't want the yield curve to flatten. that's why i think this is a safety trade. a risk back on trade. look, regarding the fed

i went to a terrific dinner party at larry kudlow's house saturday and many were agast atc thisan idea.l i think it will sell to the wilg american ivpeople, pop list republican, in a general election. i'll give you another example. he did propose in 2000, that there would be a one time surtax on the super, super wealthy, dedicating all that money to deficit reduction. knock out the entire deficit ong time. again, thatr ri violated the republican orthodoxy because it was taxing with super, super rich. not the wealthy.addition the super rich.er his o trump we figured would have owed an additional $450 million in additional taxes and he was prepared to pay it.ha had we done so, we'd be in stronger shape today. the deficit has ballooned since ta time. now, today, trump's proposal would not lodgistically or t financially be possible. it's a perfect example of trump challenging the orthodox. he's a pragmatic conservative. he wants to do what will work. i think this comes from being in business.e le >> in a preview of the next debate will take place in less than two weeks at the reagan presiden

. >> turning to the panel it's something we heard from larry kudlow who said it's not the fed's job tothe economy specifically they are supposed to look all for financial conditions but that's ultimately the job of washington. >> it's interesting to me because jamie dimon articulated in a more candid way what is the ceo party line. but, you know dorks they not have politicians ear anymore, is there no more influence from this common sense business lobby anymore. >> chuck, what are your thoughts on this, on how close the relationship is between the financial industry and wall street and policymakers? >> it's never been worse. one of the questions i posed to him and you will hear this on sunday, i don't want to give away the store but i said everybody from hillary clinton and bernie sanders to jeb bush and donald trump in some ways are campaigning against you, jamie dimon or people of your ilk and want to go put that distance and he acknowledged that, he understands the politics of it, but it also explains why i think that this crowd has less influence over washington than ever before. a

larry kudlow may do something with the senate.ar in hollywood. >> but not everyone is a billionaire. mark cuban said he has no plans to run for office but he's been inspired by this donald trump campaign. he thinks trump is somebody who has broken all the old rules and you don't have to have a perfect past to run for political office. he said the idea of a presidential campaign is a fun idea to toss around. here's what he told me. look at some of his quotes that we have up on cnbc.com. he said if we have a three comma p otust would not take long before the office humbled him or her. he also said if he was matched up against hillary clinton or donald trump, he said he would beat them. he said if i ran as a dem, i know i could beat hillary clinton. if it was me versus trump, i could crush him. here's the issues on mark cuban's mind. important to him are the idea of income inequality. he would want do something about that. do something about college debt as well as overly complex taxes. and cybersecurity and broken equity markets are