>> i noticed that larry kudlow, who was big on immigration reform, has changed his mind.k, and larry kudlow, thinks we should put a hold on immigration for everyone until we get a better hold on it. forget muslims, every religion and nationality. >> you're saying stop immigration? >> temporarily. >> completely? >> completely. >> do you think that's realistic? >> poppy, we have people dead because we're not doing this the right way. this is crazy. the idea that we should adjust ourselves to the idea that every few years people are going to get shot to death. >> isn't that saying people who are terrorists and want to do harm to us only come from outside america? >> in this case they're coming with the idea, not only america, but elsewhere in the world, with the idea of setting up a radical islamic caliphate. to be clear here, we have these problems with the system. people within the system say we have a problem with it. this woman out in california was not properly vetted. let's find out what's going on here and then resume it. the country is 100% composed, you, me, and eve

let's debate with cnbc senior contributor larry kudlow and cnbc contributor barney frank. gentlemen, welcome back to you both. larry, do you think they will be one and done? >> i hope so. i mean, you know, i can even do without it this month, but i guess they are bound and determined to raise it by a quarter point. my forecast i go back a few months they will probably move at the pace of an injured snail and that's about right for me. i'd leave it there. you know, there's no inflation out there, i just want to say that, and better wages and more jobs do not cause inflation so i hope the fed doesn't go overboard with those computer models. >> mr. frank? >> well, last week larry and i disagreed violently so we make up for this week because i am in almost complete agreement. he had to take his obligatory shot at canes but there are a lot of others who feel that. i think he's already rate. at this point i agree with him that substantively there really is no need for an increase but we've reached the point in expectations where a decision not to raise would be the more startling

. >> total aside here, and i will channel larry kudlow. is it a possibility they could go 12 basis points? >> maybe they reverse it. this is uncharted territory. they have never been here and it looks like they don't know what they're doing. >> the utf on the sector here. we have a couple charts. here is the long-term seven-year chart. it is right on that up turn that is held very low and it is at a very important level here. if you want to make a directional bet, you have to hold here around $42. then there is the two-year chart. i want to lay this out. i think you have ris on the downside. i think you have the potential for a move. and it is contrarian relationship. so when the etf was trading at 4180ou could look out to expiration. profits above 43. the stock was at 46 just a couple months ago. i think you want to be defensive. i think you want to be u.s. domestic, you will want yield, and investors will come back to the utility sector in the next few months. make what i think is a pretty high probability bet. >> i agree. you're risking

. >> total aside here and i'm going to channel larry kudlow for a second. we're used to this 25 basis point thing. is it a possibility they could go 12 basis points? >> and maybe there's just one and maybe they come back. maybe this is a reverse and as of now it doesn't look like they know what they're doing. >> the utf on the sector here, we've got a couple charts. here's the long-term, the 7-year chart from the 2009 low. it's right up the uptrend. it's at a very important level here. this is one of the reasons if you want to make a directional bet, it really has to hold here around 42 bucks. then there's the two-year chart. i think you have risk on the downside to 40. if things get ugly you have potential for a move and back up to the mid-40s. i think you have a risk reward relationship of lose one, possibly make two. so the trade today when the etf was trading, by the february date you have profits above 43. the stock was at 46 just a couple months ago. i think you'll want to be defensive. i think you want to be u.s. domestic and i think investors are go

this is the pursuit of perfection. >>> our guest host this morning, larry kudlow.ns of the republican party, i think you've been urged to run for senate. is that a fair statement? >> fair statement. why do you know yet what the probability of that is? >> judy and i will make up our minds perhaps late february. >> i wonder sometimes, i love having you here obviously for an hour, when i look at the senate, it seems so infectual.even showe time and i don't know if i would either. you can pontificate here. >> and i love it. >> can do you more between here or there? >> i've been with this network close to 25 years. i love it. i love an trdrew ross sorkin. kayla tausche. and joe you were one of the original originals. in some sense your wife started my career. the answer is i don't know. it's a very disrupting thing to do. you're right, there are a lot of dopes in the senate. a lot of good people, but a lot of dopes in the senate. if they were as smart as andrew ross sorkin, i'd be much more challenged. >> get something done. >> we would cross aisle and get something don

larry kudlow weighs in when we come back. we can help guide your investments through od times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence. >>> let's take a look at how we finished the day on wall street. it was an ugly one with the dow falling 309 points, the s&p falling almost 2%, the nasdaq falling 2.2%, oil was at the center of the action trading down more than 3.9% there, breaking the low, that $36 a peril, worst week for the s&p since the middle of august, worst week for the dow and nasdaq in a month, brings the s&p to levels we haven't seen since october, bill. >> and the volatility index up more than 22% today. well above that 20 level with all this volatility. as we all know the fed is set to meet next week, many people feel a rate hike is lk baked into these markets

. >> later congressman barney frank and larry kudlow will be here to weigh in with their 2016 political predictions and though that could affect the market. >>> plus the latest on the hotel fire in dubai that we have all been watching. we will talk to a reporter live on the ground coming up. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. even tempur-pedic mattr

joining me now is jared bernstein, former chief economist for vice president biden and larry kudlow, tor. larry, i know you know the history and i think it was oliver wendell holms who said basically what mr. cook said, do you not owe more tax than the tax code says you must pay. are they doing anything wrong here? >> absolutely not. by the way, i knew oliver wendell holmes and he told me that many times. i love tim cook, political crap, it's exactly right, and his other point is, look, this is an industrial age tax system at 40%. he has a fiduciary responsibility to his shareholders to increase profits and value, and if that means cutting the tax bill in some way, shape, or form, so be it, but as he said, apple pays a ton of taxes anyway. let's change the tax code. >> and i think jared, fundamentally you agree with that idea that the way the tax code is structured right now, it causes companies to arbitrage the rates. what would you have us do? >> well, first of all, no question that both apple is a major tax avoider, not tax evader. nothing they're doing is illegal and i think tim c

and larry kudlow has spoken to this, a number of times i've mentioned it as well. definition technology is extraordinarily deflationary. which is why i think people will come back and realize rates -- i understand what happened today in the bond market, i get t i'm not saying i anticipated it, but i understand what happened, but i think the bond market is going to reevaluate and say, do you know what, rates should continue to grind lower. i do think we're going to get a move in december and they're going to come and say we'll see you a year from now, folks, because that's all we've got. what does it all mean for the market? i'm not really sure. i think given the high we made in the s&p on this monday the 1st of december the 2019 on the down side becomes critical support which i can go into it a different time but i also think that a lot of these stories that have been -- that people have been talking about if you look at the names that historically have been sort of the bell weathers for economy just look at free mortgage mack in a man and where it is today. >> ste

>> i was talking with larry kudlow over the weekend about this.past even when there's been damage to the economy because of oil, it's because prices spiked higher and consumer spending. this time it's a symptom potentially of global slowing. >> are you sure? >> it's not the cause. >> overslowing is not the cause? >> it's no the the cause of the global slowing is my point. >> okay. it's a symptom? >> yes, yeah. yeah. >> is it still mostly suppliers that 2/3 supply, 1/3 demand? >> 2/3 supply and 1/3 demand. >> i like it. don't they like it when it goes down? >> getting driven lower this weekend because of iranian comments. we're going lower this weekend. it evidences the fact with the recount going down and u.s. reduction coming down, the increases we're expecting from iran, iraq, libya cannot hold themselves together are going to more than offset. there won't be any net change in global output. i want to throw in there so we don't mission this. natural gas prices this morning, the lowest since 2002, 13-year low. >> wow. >> you don't e-mail a boom,