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FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S JIM CRAMER INTERVIEWS ERIC SCHMIDT, GOOGLE CHAIRMAN & CEO, ON "MAD MONEY W/JIM CRAMER" TODAY

Steffanie Marchese
Friday, 7 Nov 2008 | 9:17 PM ET

FIRST ON CNBC: CNBC TRANSCRIPT: CNBC'S JIM CRAMER INTERVIEWS ERIC SCHMIDT, GOOGLE CHAIRMAN & CEO, ON "MAD MONEY W/JIM CRAMER" TODAY

WHEN: Today, Friday, November 7th at 6:05PM ET

WHERE: CNBC's "Mad Money w/Jim Cramer"

Following is the unofficial transcript of a FIRST ON CNBC interview with Eric Schmidt, Google Chairman & CEO, today on "Mad Money w/Jim Cramer."

All references must be sourced to CNBC's "Mad Money w/Jim Cramer."

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CRAMER: ERIC, COME ON, YOU'RE IN THE INNER CIRCLE. WHAT WAS IT LIKE?

SCHMIDT: LET ME TELL YOU THAT THE SITUATION ECONOMICALLY IS A PRETTY BIG CONCERN, YOU'VE GOT RETAIL SPENDING DOWN, YOU'VE GOT INCREASES IN JOBLESS AND THERE IS A SENSE THAT WE NEED TO ACT.

CRAMER: WAS IT A SENSE OF URGENCY AT THE MEETING? COULD YOU DETECT IT FROM THE MOMENT THAT IT STARTED?

SCHMIDT: WELL MORE THAN THAT I DETECTED IT TWO DAYS AGO. LIKE, LET'S GET OUR ACT TOGETHER, LET'S START MOVING QUICKLY. AND THIS PRESIDENT IS GOING TO BE A PRESIDENT WHO LISTENS REALLY CAREFULLY AND MOVES. THAT'S WHAT I'VE NOTICED ABOUT HIM SO FAR.

CRAMER: ONE OF THE THINGS THAT GOOGLE CAN BRING TO THE TABLE, NOT JUST TECHNOLOGY, BUT GOOGLE HAS HAD A SERIES OF INITIATIVES THAT ARE LARGER THAN JUST THAN KEY WORDS SO TO SPEAK. CAN YOU TELL ME WHAT YOU BROUGHT TO THE PARTY AND WHAT YOU CAN BRING TO THE PARTY IN THE NEXT ADMINISTRATION, PARTICULARLY ABOUT ENERGY WHERE GUYS ARE FAR MORE FORWARD THINKING THAN MOST OF THE ENERGY GUYS I TALK TO?

SCHMIDT: WELL WE'VE ANNOUNCED AN ENERGY PLAN, WHICH WAS JUST A PROPOSAL, CAUSE IT SEEMS TO ME THAT IF WE COULD JUST FIX THE FOSSIL FUEL DEPENDENCY, WE COULD GET OIL PRICES DOWN, PUT A LOT OF PEOPLE TO WORK OH AND BY THE WAY SOLVE THE CLIMATE CHANGE PROBLEM FOR GOOD. SO THERE IS A WAY WITH THIS STIMULUS PACKAGE TO REALLY GET MOST OF OUR PROBLEMS SOLVED IN ONE FELL SWOOP. IT'S GOOD FOR JOBS, IT'S GOOD FOR TECHNOLOGY, IT'S GOOD FOR AMERICA.

CRAMER: ALRIGHT, DON'T LEAVE US HANGING. I MEAN EVERYONE WANTS TO KNOW WHAT THE --- YOU JUST DESCRIBED THE MANHATTAN PROJECT THAT SO MANY PEOPLE SAY WE DID IT IN WORLD WAR TWO WHY CAN'T WE DO IT AGAIN. CAN YOU GIVE US AN INKLING OF WHAT'S IN THAT PLAN OF YOURS THAT WOULD MAKE IT SO THAT OUR VIEWERS CAN GET FIRED UP?

SCHMIDT: LOOK, THIS IS OUR PLAN. THE SUNS GOING TO CONTINUE TO SHINE, THE WIND IS GOING TO BLOW, THERE'S A LOT OF HEAT IN THE EARTH. WIND, SOLAR, GEOTHERMAL. IF WE WOULD JUST START USING THAT AND BUILD A GRID THAT WOULD GET THAT POWER TO WHERE THE PEOPLE ARE, WHICH IS USUALLY NOT WHERE ALL THAT POWER IS, WE COULD SOLVE MOST OF OUR ENERGY PROBLEMS. THE OTHER THING THAT WE THINK IS REALLY IMPORTANT ANOTHER THING THAT WE THINK IS REALLY IMPORTANT IS PLUG-IN HYBRIDS. SO YOU SIT THERE AND YOU GO, WHY PLUG-IN HYBRIDS? IT'S MORE ECONOMICALLY EFFICIENT AND USES FAR LESS POWER, HUGELY, HUGELY LESS OIL, AND BY THE WAY, THEY'RE BUILT IN AMERICA. SO, FOR EXAMPLE, IN MICHIGAN WHICH HAS THIS HUGE UNEMPLOYMENT PROBLEM, YOU CAN BUILD THE BATTERIES, YOU CAN TAKE ALL THOSE LAID OFF AUTO WORKERS AND THE PEOPLE WHO ARE SO TERRIBLY AFFECTED BY THIS DOWNTURN AND HAVE THEM WORK ON THINGS LIKE AUTOMOBILES AND ALSO THINGS LIKE INSULATION FOR HOMES, WHICH IS PAID BACK FOREVER.

CRAMER: DO YOU HAVE PRESIDENT-ELECT OBAMA'S EAR FOR THAT PROPOSAL?

SCHMIDT: WELL, IT'S INTERESTING THAT, IN FACT, THE PRESIDENT -- PRESIDENT-ELECT HAS TALKED ABOUT THIS ON HIS OWN. IT'S LIKE ALL OF THE PEOPLE WHO LOOKED AT THIS HAVE COME AND SAID THAT GREEN TECH IS GOOD FOR AMERICA, BECAUSE IT CREATES JOBS. IT SOLVES REAL PROBLEMS WE HAVE TODAY. AND THAT'S WHY I SUPPORT THIS PRESIDENT-ELECT, AND THAT'S WHY I THINK THIS IS GOING TO BE A DIFFERENT ADMINISTRATION. THEY'RE GOING TO TRY TO GET THESE CONNECTED INTO IT VERY QUICKLY.

CRAMER: ALL RIGHT, BUT LOOK, HERE'S WHAT I WOULD DO IF I WERE HIM. I WOULD SAY, OKAY, ERIC, YOU TALK A GOOD GAME. I WANT YOU TO RESIGN FROM GOOGLE AND COME TO WORK FOR ME AS MY CHIEF TECH CZAR. IF CALLED, WOULD YOU DO IT?

SCHMIDT: I LOVE WORKING AT GOOGLE, AND I'M HAPPY AT GOOGLE, SO THE ANSWER IS NO.

CRAMER: REALLY? YOU WOULD TURN DOWN THE PRESIDENT-ELECT AT THIS TIME OF CRISIS?

SCHMIDT: GOOGLE IS ITS OWN EXCITING OPPORTUNITY. LET'S TALK ABOUT THIS OWN EXCITING OPPORTUNITY. I'M READING IN THE PAPER TODAY THAT MICROSOFT IS TRYING TO TAKE ADVANTAGE OF THE COLLAPSE OF GOOGLE, YAHOO AND GET INTO VERIZON. I HAVE SEIDENBERG COMING UP ON THE SHOW, THE GREAT CEO OF VERIZON. DOESN'T EVERY VERIZON PHONE, INCLUDING MINE, WANT TO HAVE A GOOGLE OPERATING SYSTEM IN IT?

SCHMIDT: WELL, WE THINK THAT GOOGLE --A LITTLE BIT OF GOOGLE EVERYWHERE JUST MAKES YOUR LIFE BETTER. AND I'M NOT SURPRISED THAT MICROSOFT TACTICS, THIS IS NOT A NEW PHENOMENA. BUT OPPORTUNITY, FOR EXAMPLE, IN MOBILE WITH VERIZON WITH GOOGLE OR WITHOUT IS HUGE, RIGHT? ANOTHER GROWTH INDUSTRY DRIVEN BY AMERICAN TECHNOLOGY THAT CAN REALLY CHANGE THE WAY PEOPLE LIVE, DO BUSINESS AND SO FORTH. I REALLY LIKE IT AND YOU HAVE IDENTIFIED ON YOUR SHOW, A LOT, IT'S A BIG PLACE FOR ALL OF US.

CRAMER: NOW, WHEN YOU WERE HERE LAST, I WAS CONVINCED -- YOU CONVINCED ME, WASN'T HARD, I'M A DOT-COMMER FROM WAY BACK, THAT THERE WAS NOTHING ANTI-COMPETITIVE ABOUT THE GOOGLE/YAHOO TIE-UP AND IN THE END, YOU HAD TO BACK DOWN. BUT IT WAS AN OPEN SYSTEM, NOT A CLOSED SYSTEM.

SCHMIDT: WELL, LOOK. I DON'T KNOW WHAT WE DID WRONG, BUT FUNDAMENTALLY, WE COULD NOT CONVINCE THE GOVERNMENT THAT THE AUCTION WOULD PRODUCE A BETTER VALUE. AND HERE IS THE SCENARIO. TODAY, IF YOU GO TO YAHOO'S SITE, YOU GET AN AD WHICH PERFORMS LESS WELL THAN AN AD IF IT HAD BEEN SERVED BY GOOGLE. THEREFORE, THE ADVERTISER, IF THEY HAD BEEN USING OUR DEAL, WOULD HAVE MADE MORE REVENUE TODAY IF THEY HAD DONE A DEAL. BOTH YAHOO AND GOOGLE REGRET THAT WE WERE FORCED TO DO THIS FROM OUR STANDPOINT, IT DIDN'T MAKE ANY SENSE.

CRAMER: IT MAKES NO SENSE AT ALL. NOW, IN THE LAST FOUR, FIVE WEEKS, MANY OF THE COMPANIES THAT I DEAL WITH IN THE MEDIA HAVE TOLD ME IT'S THE WORST TIME EVER FOR ADVERTISING. IS THAT BECAUSE YOU ARE TAKING SHARE, OR ARE YOU SEEING THE SAME THING?

SCHMIDT: WE'RE SEEING A LITTLE BIT OF IT, ALTHOUGH WE ARE A LITTLE DIFFERENT BECAUSE OF TEXT ADS. I WILL TELL YOU THAT ADVERTISING IS THE FIRST THING THAT GETS CUT AND IT'S ALMOST ALWAYS A MISTAKE, BECAUSE YOU ADVERTISE TO GET REVENUE. SO IF YOU'RE SITTING THERE SAYING, WHAT CAN I CUT, AND YOU CUT YOUR REVENUE BUDGET OR ADVERTISING BUDGET, EXCUSE ME, ALL OF A SUDDEN, CUSTOMERS DON'T KNOW THEY NEED YOUR PRODUCT. SO I THINK WHAT WILL HAPPEN IS PEOPLE DISCOVER YOU NEED TO ADVERTISE TO MAKE REVENUE ADVERTISING WILL COME BACK, AND IT TENDS TO COME BACK FAIRLY QUICKLY FOR EVERYBODY.

CRAMER: I WANT TO TALK MORE ABOUT POLITICS. BECAUSE WE HAD JIM GOLDMAN ON AS OUR GREAT SILICON VALLEY REPORTER, AND HE SAID SOMETHING AND IT WAS KIND OF LOST ON -- I THINK THERE IS A WHOLE GENERATION IN THIS COUNTRY THAT GENUINELY BELIEVES THAT ONCE YOU HAVE MONEY AND ONCE YOU HAVE MADE MONEY, YOU'RE A REPUBLICAN. THAT'S THE WAY I WAS TAUGHT, THAT WAS THE WAY I HEARD, THAT YOU MOVE FROM DEMOCRAT TO REPUBLICAN. I LOOKED AT THE CAMPAIGN CONTRIBUTIONS, AND WHO GAVE MONEY OUT WEST, AND SHOWS ME THAT THAT IS A DISCONNECT. THAT IS MY OLD REGIME TALKING. CAN YOU TALK ABOUT HOW FIRED UP THE PEOPLE WHO YOU WORK WITH WERE THAT THEY ACTUALLY EMPTIED THEIR POCKETS FOR PRESIDENT-ELECT OBAMA?

SCHMIDT: WELL, PEOPLE GIVE FOR ALL -- FOR ALL SORTS OF REASONS. BUT MY OWN VIEW IS THAT SENATOR OBAMA, NOW PRESIDENT-ELECT OBAMA, TOUCHED A CHORD WHEN HE TALKED ABOUT MAKING THE WORLD A BETTER PLACE FOR ALL OF US. HIS FOCUS ON THE MIDDLE CLASS, HIS FOCUS ON EDUCATION STRONGER, HIS FOCUS ON SCIENCE, AND HIS FOCUS ON DOUBLING THE RESEARCH BUDGET. ALL THINGS WHICH HAVE LARGELY BEEN IGNORED UNDER THE CURRENT ADMINISTRATION, THOSE ARE THE THINGS THAT I THINK THAT REALLY HIT A CHORD AND OF COURSE THEY DIDN'T HIT A CHORD WITH THE OPPOSITION.

CRAMER: WE'RE GOING TO GET A STIMULUS PACKAGE. IS THERE A WAY TO HAVE STIMULUS BE RELATED DIRECTLY TO TECHNOLOGY? THE BUSH PACKAGE, ALL IT DID WAS MAKE US GO BUY A NEW PAIR OF NIKES. IT WAS SO COUNTER PRODUCTIVE IT MUST HAVE DRIVEN YOU CRAZY.

SCHMIDT: IT WAS JUST A BAD DECISION ON THEIR PART. AND A MUCH BETTER DECISION IS TO GIVE OUT MONEY THAT SOLVES SOME OTHER PROBLEM. SO LIKE INFRASTRUCTURE. YOU TALK ABOUT THE SCHOOLS AND BRIDGES AND SO FORTH. THE ARGUMENT I HAVE MADE IS, IF YOU'RE GOING TO GIVE STIMULUS, GIVE IT TO PEOPLE WHO DON'T HAVE A JOB NOW, BUT WHO CAN BUILD SOMETHING THAT YOU NEED. LIKE INSULATION, LIKE FIXING THE GREEN TECH PROBLEMS AND SO FORTH. THERE ARE LOTS OF IDEAS THAT ARE VERY, VERY CLEVER THAT ARE JUST WAITING FOR SOMEBODY TO SAY, WE'RE GOING TO GIVE A LOT OF MONEY TO AMERICA, BUT LET'S GIVE IT TO A WAY THAT THEY USE IT. IF YOU JUST WRITE PEOPLE A CHECK, THEY TEND TO SAVE IT AND/OR JUST SPEND IT RIGHT THEN. IT DOESN'T REALLY SOLVE THE PROBLEM LONG-TERM. WE'VE GOT LOTS OF LONG-TERM PROBLEMS, YOU NEED INFRASTRUCTURE INVESTMENT TO MAKE AMERICA READY FOR ITS NEXT STAGE OF GROWTH.

CRAMER: ERIC, DID YOU GET ANY FEELING IN THE ROOM, BECAUSE I KNOW THERE WERE SOME WALL STREET TYPES THERE, THAT WE'VE GOTTEN OFF TRACK IN TERMS OF WHAT WE DID? WE RAISED $750 BILLION HOPEFULLY TO KEEP PEOPLE IN HOMES. BUT THE MONEY HAS GONE TO -- I USED TO BE A BANKER. IT'S GOING TO BANKERS IN ORDER TO KEEP THEIR BONUSES AND TO CONTINUE TO PAY THEIR PREFERREDS AND THEIR DIVIDENDS, SO-CALLED SOLVENCY. IS THIS ANOTHER THING WE'RE OFF TRACK ON?

SCHMIDT: IT'S SOMETHING THAT'S GOT TO GET ADDRESSED. I MEAN, THE CRISIS AND THE WAY IT WAS DEALT WITH IS SOMETHING WHICH EVERYONE IS GOING TO DEBATE.THEY HAD TO DO SOMETHING, THEY DID IT QUICKLY. GOD KNOWS, HOPEFULLY, IT WILL WORK. THE FACT OF THE MATTER IS, THAT IF GOVERNMENT IS GOING TO GET INVOLVED IN BUSINESS, IT NEEDS TO TAKE AN OWNERSHIP POSITION OR AT LEAST WARRANTS OR SOMETHING, SO THAT THE CITIZENS, THE TAXPAYERS, CAN SHARE IN THE EVENTUAL SUCCESS. I'M NOT IN FAVOR OF BAILOUTS WITHOUT SOME KIND OF OWNERSHIP OR PAY BACK TO THE PEOPLE WHO CAME UP WITH THE MONEY, WHICH IS U.S. CITIZENS.

CRAMER: WELL, ALL RIGHT.JUST IN CLOSING, NOT TO WAX TOO PHILOSOPHICALLY, BUT YOU'RE IN THE ROOM. WHAT DID YOU DETECT IN THAT ROOM VERSUS WHAT WE'VE HAD IN THIS COUNTRY FOR THE LAST EIGHT YEARS?

SCHMIDT: WELL, I'VE NOT HAD A CHANCE TO SIT IN THE EQUIVALENT ROOMS IN THE BUSH ADMINISTRATION. I CAN TELL YOU THAT IN THIS ROOM, A TREMENDOUS SENSE OF SERIOUSNESS. THIS IS BY FAR THE WORST ECONOMIC CRISIS THAT PEOPLE HAVE SEEN IN MANY, MANY DECADES. IT REQUIRES VERY CLEAR, VERY, VERY STRONG REACTION THAT ARE THOUGHT THROUGH AND THAT PEOPLE HAVE -- ARE COMMITTED TO. AND PRESIDENT OBAMA WILL CLEARLY DO THAT, WHETHER IT'S PART OF A TRANSITION PROCESS -- AND REMEMBER, HE IS NOT PRESIDENT TODAY. WE STILL HAVE A DIFFERENT PRESIDENT. OR WHEN HE BECOMES PRESIDENT.

CRAMER: BUT THAT -- THE CARTER ADMINISTRATION, I REGARDED WAS VERY UNSOPHISTICATED. DO YOU SENSE A LEVEL OF SOPHISTICATION THAT CAN DEAL WITH BIG INTERNATIONAL PROBLEMS?

SCHMIDT: WELL, THIS GROUP OF PEOPLE REALLY DO UNDERSTAND THE CONSEQUENCES OF ACTIONS AND THEY DEBATE THEM. PERHAPS THAT WAS SOMETHING THAT WAS MISSING IN THE CURRENT PRESIDENCY ADMINISTRATION.

CRAMER: ABSOLUTELY.

ERIC SCHMIDT, CHAIRMAN AND CEO OF GOOGLE. THANK YOU FOR GIVING ME AN UPDATE. REALLY APPRECIATE IT. GREAT WORK.

SCHMIDT: THANK YOU.





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