richard bernstein: correct. justice: we announced what the federal law is, and the state said they would follow it, but i guess it might or might not be free to change its mind about doing that. richard bernstein: i think the difference in what makes this case special is the court has held murdoch versus city of memphis, almost 150 years ago, 87 from 326 10 327, the 1267 jurisdiction's question by question. it is not like 1331 case by case, it is question by question. i do not believe the court has jurisdiction to skip over the question of whether federal law applies and then answer the hypothetical, is federal law applies, what would it be? i think the question of whether federal law applies -- justice: let's think of the first exception. suppose that many states had sedition laws that makes certain conduct unlawful to the 1000 people in prison. this court in the new role holds you cannot criminalize that behavior. what is the law that would make that retroactive to people in prison? it sounds to me that it is

there are people that say more or less we have richard bernstein on this morning on "squawk box" saying the fed is not going to hike into a profits recession which we're having now. i think that's a valid point. but that's where the debate needs to be. what kind of job numbers? what kind of economy does the fed need? then i think there is this other idea we want to layer in there, is the fed's fault position now to hike? i think it may well be. >> you have too much stuff in the store room. >> too much stuff on the shelves. >> thank you, steve. >> so much more to do this hour including the real story on oil supplies, what you need to know right now. plus, starbucks reports after the bell. is this hot stock still worth your money? and one of america's top rated fund managers is here with the stocks he loves right now. stick around. [female announcer] during mattress price wars at sleep train, save up to $400 on beautyrest and posturepedic. get interest-free financing until 2018 on tempur-pedic. plus, helpful advice from the sleep experts. don't miss mattress price wars at sleep train. >>>

. >> with us now to talk about that and a lot more, richard bernstein, ceo of bernstein advisers, andentioned professor, and steve leisman is here. both your view, i want to talk about the ted cruz thing, but do you have a view on china situation? >> it's going to be a lot of diapers. >> that's true. but in terms of economic impact? >> a couple things to think about. one is, china, over the long haul has a worse demographic problem than we have. >> absolutely. >> a couple things relative to the united states and gop debate last night. >> connecting the dots. >> gop complains about government. what happened in china is government gone to the nth degree. what we have is not as bad as china, but it's a warning of how bad things can get. play it either way. i'm down the middle. you want to be careful not to go to the lengths, obviously, it's a disastrous policy. chi china's problems when it comes to retirement and paying for old age, on the other side, they do not have a safety net program, and that makes things really difficult for average chinese people in terms of planning. we have a s