Squawking with Wall St.'s big brains about Fed
Dear Scott, tell us how you really feel ...
Scott McNealy, founder of Sun Microsystems, invaded the "Squawk Box" set this week (follow him on Twitter at @ScottMcNealy). The only problem is we had a little trouble getting him to go out on a ledge. Not!
Drawing from his Harvard economics degree, McNealy was all fired up about abolishing the Fed—calling it an "out of control branch of the U.S. government." He also argued that the wealthy should give less, not more, to charity and start businesses instead.
McNealy also talked tech, commenting on the planned Twitter IPO, the new company Wayin that he hopes will be his second act and the future of Silicon Valley.
Five years ago this past week, Lehman Brothers collapsed and AIG was bailed out. We reflected on the occasion by reuniting former Sen. Chris Dodd and former Rep. Barney Frank—authors of the most significant legislative action to come from the near financial meltdown: the Dodd–Frank Wall Street Reform and Consumer Protection Act.
Lesson learned since then? Dodd and Frank said it wasn't Wall Street deregulation that almost sunk us but our failure to regulate in the first place.
Speaking of the 2008 financial crisis ...
Remember Dick Fuld? Maybe not.
But remember James Woods' character in HBO's "Too Big to Fail" (the movie based on Andrew's book by the same name)? Yeah, that guy!
Fuld was the CEO of Lehman Brothers who was convinced that everybody was screwing him over, while the investment bank crashed and burned.
Five years after the crisis, Andrew tracked down the story on where's Dick. Watch the video.
Gelling with Yellen?
Remember last week's "JA-NET YELL-EN!" chant (see last week's blog)?
Well, it may have worked.
Former Treasury Secretary Larry Summers took his name out of the running to become the new Federal Reserve chairman—paving the way for a market rally and the JAN-ET YELL-EN tailgate party. (President Barack Obama hasn't made a decision yet, but Yellen, the Fed's No. 2, is now seen at the new front-runner for the top job.)
So far, no known runs on Janet Yellen football jerseys on eBay. But there's still time!
Captain Underpants! (aka our very own @andrewrsorkin)
Andrew promoted this article on Twitter:
(Five years ago, he wrote "Too Big to Fail." It's the bible of the financial crisis. Then he joins "Squawk Box," and now he's writing about men's underwear. Hmmm?!)
Squawkward Moments (discussing Andrew's above underwear column)
Andrew: "I have it on now."
Joe: "Can I touch it?"
Must follow them @
I forgot her last week. So now she gets to shine all by herself. Our very own news associate, "freshly minted" Bowdoin grad @melodyhahm. Melody does a lot of our @SquawkCNBC show tweets and facebook.com/SquawkCNBC posts in addition to her TV job. (Please follow her fast before she bolts on me and decides to go back to grad school!)
Tweets of note
Geez those @CNBCNetNet guys really know how to get crazy! The must have been really popular in high school.
(But seriously, thanks guys for giving our Web producer @Matt_SquawkCNBC some props last week on his story, TARP didn't save banks, it ruined them: Kovacevich.)
Meanwhile, @beckyquickcnbc tweeted:
Sorry, John Carney and Jeff Cox, I take it back. The "Squawk" anchors are just as bad!
Finally, from @SeemaCNBC:
Joe points out they must be very excited about it. Why else would you unveil your new flagship product on a Wednesday in Kuala Lumpur?
Overheard on the set
Anchor 1: "Penthouse filed for Chapter 11?"
Anchor 2: "I guess sex no longer sells."
Anchor 3: "Of course not, want me to show you how to get it for free on the Internet?"