and afternoon drew ross sorkin. they're look for 100 billion euros. that's more than is suggested they're likely to need. as a result we're seeing them jumping on the news. in spain stocks are up by 4%. in germany, up by 1.6%. in france, 1.6%. the ftse, up. we'll have a live report from europe and complete market reaction in just a moment. in the meantime china says europe's weakened condition to lend spain the money is a welcome short-term fix. emphasis on short term but the chinese finance minister is urging the bloc to take more decisive action, try to safeguard longer-term stability. speaking of china, a failure are of numbers out this weekend. inflation and retail sales all slowing in may. exports and imports were stronger than forecast and andrew, that came as some welcome relief as well. there had been rumors that maybe

those numbers would have been weaker than exec and that's why the chinese moved to cut the interest rate. i'll send iter of the o over to you. >> apple kicking off its annual conference. ceo tim cook is expected to show off the new iphone software, updated mack computers and provide detailed use on mac software. general electric is looking to sell more assets in ge capital's loan portfolio. it could be reduced by as much as 16% but sources say it would have to wait until market conditions are favorable and goldman sachs is said to be selling its hedge funds administration business to stage street it late-stage discussions. they have under funds of about $200 billion. it would create the large effort administration services provider to hedge funds. joe. >> andrew, in other stories to watch this week, former goldman

sachs board member raj gupta has decided not to testify in his own defense. he worked for john edwards. he's on trial over insider trading charges that he illegally divulged financial information to his one-time friend and business associate raj. ceo jamie dimon is prepared the testify before the banking committee on wednesday. they're expected to press him about the $2 billion. it was $2 billion. nobody knows what it is right now. >> they're saying about 4. >> about 4, yeah. >> how much the losses have grown and whether the hedging was a speculative bet that went largely undetected until it was too late. and andrew is traveling to d.c. and will report live from capitol hill for you. >> i'm going to go down wednesday afternoon. the shuttle flights are never

great. >> you have weather issues. >> unless i'm on an early morning shuttle or late-night shuttle. >> do you have any plans to talk to jamie? >> we're working on it. >> would i screw it up if i talked about it? >> probably not. you can talk to mary. >> anyway, the markets are up today. big move last week in the markets. my favorite headline. i saw everywhere else -- i know you say orelon. how do you say ray joy. >> rah joy. >> victory, we did it. we needed a hundred billion. >> markets are up today, but it could be that the shorts are getting squeezed on some of this news. >> is that the right headline. he has it as a victorisome. >> rajo -- >> our banking system is so

screwed up. no one else is buying our sovereign debts, whoo-hoo. that's a victory? >> they did that with bankia. that was a bunch of ka has. >> kaka maybe. >> used to work for about a day. >> unemployment's still going to rise in spain. >> right. >> they're going to grow -- >> and it's at 24%, by the way. >> they're going to grow at minus 2%. i always like to put the grow and minus. 1-7. they're going to grow at minus. not shrink but we make it as complicate -- now, my question is on this greek thing. if these lefties win, does it mean they exit? >> the likelihood means they do exit. >> i don't think so. >> does it mean that for sure? >> no. last week we had a couple of people including our guest host on friday who said the most likely scenario would be that even if the lefties win, they would try to stay in it. they realize that they need to

be there. he thinks that's the most likely scenario. >> in most of the papers today we'll find out from grease where they're going to stay in the euro. >> i don't know that we find out. >> in the other papers it says that this rajoy in spain is in trouble. >> oh, no. he is in trouble. >> every elected official is. >> i talked to a couple of my too big to fail friends. i call them my september 15th friend. my sources from three or four years ago who discussed whether this would actually work and everybody 'degree everybody agrees to a tee, a, it doesn't work, and, b -- we all think of t.a.r.p. as being the thing that worked for us in 2008. but it was actually the guarantee of the money markets and it was the guarantee -- it was the larger guarantee of deposits. remember we went from 250 to 500. was it 250 -- >> no. 100 to 250. >> i apologize. and it was actually that.

that people don't think about it enough. i they think it's about a recapitalization issue this is a component of it. and the question is how do you actually, as we've talked about in europe, do that. >> how do you keep people from tanging money out of spanish banks. >> you have to go in some kind of money market. >> you know, fess call union. but all these things take years when you get crow asiashann mon. malta. >> you don't give up sovereignty without a civil war. if that tries, you've got a problem. i was trying to remember where i read that. it was ottawalely a very good article. >> why don't we take a look at the markets this morning. as we told you the european markets they're trading higher. the dow futures are up 120 pointses, the s&ps by more than

13 points, and, again, you're talking about moves across the board here. so these are some significant moves because the worst-case scenario did not take place. this does give at least some temporary relief to the markets. also those chinese numbers were better than had ha been anticipate and that's part of what was weighing on things. you take a look and see the markets continue to look higher. the spain index. you can't count this as a victory at least for today, at least for this morning. the long-term implications, it's hard to say exactly what's going to half. there are plenty of skeptics out there. right now why don't we take a look at what's been happening in asia overnight. nikkei was up by almost 2%. south korea was up by 1.7%. the s&p asx down by over 1%. oil prices have been higher as well. up by about 83 cents to 84.93.

but we receive gasoline praises at the pump coming down pretty significantly. if you look at the lindbergh survey, there's been a drop. right now the treasury is yielding 1.661%. slightly higher than what we closed at last week and the dollar this morning as we watch all this is still continuing show strength against the euro. 125 ppt 74, the latest tick for if euro. . and gold prices are at this point indicated slightly slower. down about 60 cents to $1,590.80 an ourj. the uk treasurer saying they're now threatening to keep britain from returning to economic growth. george osborne warning that an attempt to pull it out of recession is in his words being killed off by the crisis on our

doorstep. the 17-nation currency block is britain's single largest export. let's go across the pond where kelly evans is standing by in london. miss evans. >> hello. first of all, it's rayoy. the spanish prime minister is rajoy. the "j" is an "h." let's recap the weekend. $100 billion in aid to spain's banks. this, of course, not being called anything but a line of credit by mr. rajoy or the thing that happened over the weekend. not a bailout in his words, although everyone else is. the money would come from the efsf at least until the permanent esm in permanently in place. why us the this matter? if you're a creditor, esm pushing you down. efsf does not.

the specific amount of loans going to spank we won't know for about ten days when more detales are available. let's stack this up. now, importantly the tirchs between spain and some of the other peripheral countries is that this aid was for the banks and for the other countries it was for them itself. going back to 2010, ireland, same thing. going back a couple of years. mounting to more than $678 billion. that gives you an idea why spain being a bigger economy people raising questions as to whether $100 billion is ultimately just the opening fwam bit in terms of aid that spain might need down the road. when you talk to people today forecast they're positive about this move, it's not necessarily because of the move itself. it's more about this being just one step toward broader fiscal integration. reports of der spiegel about reports back something like a

potential fund or euro bond move, still showing some resistance. let's see what this is doing to european markets. the ibex 35, we can start down here. out of spain, 2.5%. guys, importantly we've seen these come off the highs. we've moqed back a little bit. the same thing, parks 1.6. xetra dax, 1.9%. ftse 100 and britain is up less than 1%. keying in on spanish banks, of course, they're the ones to focus on, they're the ones driving a lot of gains. again, up less than 2%. they're saying it doesn't need and doesn't want the eu aid that it's done fine with with regard to capital levels itself. a quick check of forex because the level here to watch, i believe for the day, again, is going to be the euro/dollar. so the aussie dollar which was already trying to kiss parody

earlier. we're now down on the euro/dollar. that's okay except for the fact that people are looking at whether this is faj of whether they're starting to look through the details of spain's pailout for lack of a better word. the bailout of its banks and wondering if more help is going to be needed. more steps ahead of the greek election this weekend. >> you know, kelly, the only people buying any spanish sovereign are these banks some of money's going in to buy more and what have they got? they even got another 86 billion dollars this year they even got to float. so the question is besides the bank, who else is going to step up and buy spanish son earn debts in a country that's going to be down almost 2% in dp dp with rising unemployment. this is like, here we go again. it's like one step remorned on whether they're really solving the problem on whether spain is a viable country to borrow money other than anyone in its own

banks. >> it's really a problem. not only does it not have growth but it can't fund itself. it can't print its own currency. until it has those structures in place, has growth and is part of bagger pocketbook and one that can importantly print its own currency which right now it can't under the current structure of the eu, the questions, concerns are not going to be resolved. >> italy has to come up with 22% of the money itself. >> spain has to come up with some of the money. it funds for the efsf or the esm. in a sense it's putting up its own money to bail itself out at a time when it doesn't have money to do it in the first place. >> and opposition leaders in ireland are come plank they didn't get a better deal and may fess is we're going to hear a lot more about this. right, kelly? >> absolutely. it will stay interesting on this

side of the pond. >> kelly, real quick, is it true spain is putting up money? i saw some debate maybe they won't be putting up all the money themselves. >> exactly. >> keep an eye on that because that's one of the questions in this is that if they're ultimately backing, you know, to a significant degree, money for this fund that doesn't make any sense, can they not get around it somehow, i wouldn't be surprised to see that happen. also wouldn't be surprised -- i saw comments from an eu official this morning how they're going to use special account to make sure loans don't add to the deficit figure so even though it won't add to its debt load you won't see it reflecting in a double its deficit in gdp ratios and figure this year. >> all right. thanks. when we did the t.a.r.p. -- >> yep. >> -- we weren't giving the money to our banks to buy our treasuries. thank got we had china. i mean we could raise the money somewhere else at least, but this is -- isn't it very

circuitous? the problem is it's not a federal system. it's some kind of quasi pseudo single currency mess, thank god that the private sector here is doing fine. >> is doing fine. you heard the president believes it's doing just fine. >> it's doing well enough because if it does better organization know wait would mean? it would mean more profits for the corporation and more ceo pay. >> and more rich people. >> that's just about right. not too -- >> you know -- >> not too hot, not too cold. it's just about right wlachlt we really need is a much bigger public sector and that's what's hurting now. fortunately the private sector pays for the public sector, doesn't it? i heard that's one of the issues. okay. coming up, what u.s. investors

need to know about the spanish bailout. we're going to get more on that. first, if you missed it last week, the bittersweet musical once capturing the spotlight at this year's tony awards. the musical picked up eight awards including best musical direction, best lead actor and the best surprise, my mother. i sent her to the tony's last night for her 60s birthday. she was there with my father. hypothey both enjoyed it. [ male announcer ] citi turns 200 this year. in that time there've been some good days.

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everybody, if you're just waking up a this hour, the equity futures are indicated sharply higher. take a look and you'll see the futures are up by 1% across the board. this is big gains after the spanish bailout is causing at least a sense of immediate leaf for any sort of crisis. also ahead, april comscore data suggests that slowing growth of facebook is apparent. the social media giant logging 158 million unique visitors in aprilful that's up 5% from the year ago period. those compared to up 24% and 89% in april 2011 and april 2010 respectively. it is harder and harder to get

big growth so it's not a huge surprise to see the numbers coming down considering how many people are on facebook. and a lunch with warren buffett fetching $4.36 million. the winner will have lunch with the oracle of omaha at the sm h smith & wollensky steakhouse in omaha. >> jeff morrow joins us from the weather channel. >> hey, guys. well, looks like we'll have a beautiful day in the northeast. 71 in boston. a little hotter down toward the nation's capital at 90. may have heard about the heavy rain across parts of florida and the south over the weekend. we're going to see more of that moving up through atlanta and spreading northbound. big thunderstorms out here in the plains as well. but a nice day in minneapolis. few storms could break the heat around the dallas area, and as we head out to the west coast, it's looking high and dry. pretty nice weather from l.a. to san francisco to seattle.

giev tot tell you, though, it's right here in the middle of the country will where the storm action will be as we head through the course of the day. let's take a look at where the thunderstorms will show up today. right across the midwest through chicago through st. louis to little rock, to dallas. some of these could be severe. that's where you keep a watchful eye to the sky. back to you. >> thanks so much. the fwlobl markets are getting a bailout. joining us from boston is jeffrey klein top. jeff, i'm so tired of canned analogies. here we go. kicking the can down the road or actually addressing the problems here? >> you know, this was a victory for spain, at least against germany. i guess they had a draw against italy in the soccer tournament this weekend. but, listen, this is positive. just asking for the bailout. got the boar rowing rate from 7.6% to 6%. that's a plus. not a lot of things.

greece is right around the corner. portugal is going to need a bailout. the european issues aren't going to be off the front burner for too long. we've got a slowing growth in china. geopolitical risks with the deal with iran coming to a head here soon. so you know what? i think it's still too early to buy back stocks. >> did you guys see christina romer's piece? >> i did. >> when i read it, i go both ways on what the fed has done. the way she said it though, it was so simple. it was in the first paragraph, she mentioned the dual mandate. in her view, why is anyone even questions that the fed has to do more.

>> that's whatt alan greenspan said too. there are people like james bullard who are own the fed now that believe that still should be the way to operate. >> jeff, how do you candy cap it? i feel like the pressure is building up so much that the doves are going to carry the day finally especially in an election year. >> i think they are. certainly bernanke is on the side of the dovish academics. our biggest concern going forward is deflation. you can hear some of that with what the fed is saying lately. they're worrying about declining prices and importantly de-cluning wages going along with the slack in the economy. the only defense against inflation is qe. i don't think we'll get to inflation but i don't think that's something the fed wants to put a firewall in front of which probably means qe3 is probably right around the

corner. >> are you doing an analysis on china? can you tell us what's happening there. >> it looks like china is -- based on what we're seeing, cha na's move has been relatively affected. they're cruel policy tools but it's been remarkably effective. we may actually begin to see renewed drought later this year, but given that backdrop and everything else we said, it probably makes sense to buy gold and oil rather than stocks. they've actually had more of a pullback than stocks and may present interesting opportunities. >> you can't consume gold. >> i have. on a hamburger. >> they taste good. >> you can't really taste them. >> you don't really consume them. you don't digest that. >> is that true? >> that was a good reason to do it, to go, wow, i really am special. i glitter. i glitter.

that would be -- that is one reason to think about it. some people are like they like ice cream. to have it glittering in gold. it's nice. jeffrey kleintop, it was good to see you. >> coming up more on spain's european rescue, plus it's a monday in june, which means we are on skoe it is. indiana kind of sounds like some of the other things. supreme court watch. first a bit of sports news. new york's stony brook is headed to its first college series. the seawolves of course clinching the trip with 57-2 victory. over six-time lsu champion. stony brook, the first team from new york state to reach the college world series since 1980. the first team from the northeast since all the way back in 1986. our cloud is not soft and fluffy.

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i find it warm here on television. >> you make me warm. what did you ask for? a little dark -- what did you ask for with the makeup? did you ask for it to be darker? >> is there something wrong with it? you know i don't wear any on tv. you don't thirpg this is natural? >> you will need it. you have a 60-year-old mother. >> i should. have said that. >> you say she's 60 which makes people think you're like 22. >> 60. >> happy birthday, mom. >> what's your mother's name. >> i don't want people taking my credit cards. >> you know -- >> you know -- >> if she's 60 -- >> her roommate, just to make it a full circle. her roommate in college at rochester dated larry kudlow and larry and i have talked about this. we have talked about this many times. anyway, continue on. i apologize. >> our top story, eurozone finance minister is lending

spain 100 euros to shore up its troubled banks. that's more than an initial audit that madrid thought it would likely need. they're desighing to overdue it, i guess, for starters and european stocks have responded positively with anywhere from 1% to 3% gains as you can see. u.s. equities are responding in kind after a pretty good week last week. so so far in june -- >> way better than may. >> much better. i don't know how much of the -- what was the most we were up? we were up on the s&p, were we up 14%, 13% oar something? >> for the year you mean? >> for the year. >> for the dow, we went negative, but then we came back positive. >> we got half of it pack. also, it's a monday in june so we're on supreme court watch. united health says it plans to keep some of the health overall.

the nation's largest health care agent saycy says it will keep some of the vaccines in place. over the weekend the times had a piece about there are certain things that have been startward you try to hold down costs for many reasons and another piece that hospitals, of all -- i talked on friday about push/pulling where "the new york times" did it. i saw robert roish wrote about it. you start the ball rolling. people don't like the supreme court already and they're mad about the partisan decisions. robert reich, they had better not do that. >> you saw the polling makes them the most popular

institution in washington. >> yeah. even at 44. the other thing is the wisconsin false narrative that it was citizens united when, in fact, it was -- citizen united opened up the spigots for unions. there were a lot more vifrmgs because of a recall we were able to dough cincinnati more than $10,000. but they're already allowed. they were already allowed to do it. citizens united with us the corporate side of things. that's not what happened. the unions benefits. they were able to get more under citizens unite. which they did. but the reason scott walker outspent -- >> there are people who continue to depate the narrative. >> how can you debate the narrati narrative? it's fact it wasn't corporate money that did this in wisconsin. it was individual money. it was out last week that it was not the corporate money that did it. if you think it was individual billionaires that might have done it. >> you don't believe that -- >> that was. citizen's united. that didn't change under

citizens united. the other thing that gets me is all the people in wisconsin were like i don't know how i feel about it. i need to watch tv in order to know whether to recall governor walker or not unless i watch tv. >> you're not going to argue that advertising doesn't matter at all. >> the way it turned out, i don't think -- that needs going to shift the election. people had a good yb beforehand. i'm sorry. condolences. i'm going to send flowers. wi u going to last week. can i get an orchid. >> i want to talk about this grindfeld piece. >> do you think he wishes he didn't have that t-shirt on? >> i've left a couple of messages. >> yeah, where is this guy. >> unbelievable. >> do you have the background on that? >> no, i don't. >> why kraft went over. >> i don't -- let's go to just a

quick summary of what's going on, what we're talking about here. front page article in "the wall street journal" today chronically facebook's disastrous first gase of trading on the nasdaq. among the most important pieces, the five-hour abscess of nasdaq's ceo bob agree held during the afternoon. he was actually on a plane. he flew from facebook headquarters in silicon valley back to new york, business clarks apparently unaware at all that the phone in his seat did not work. he believed the glitches had already been solved when he got on the plane at the time of his noon eastern departure to california and then, of course, shapiro calling him all day while he was on the plane, mayor shapiro wondering what's going on. >> did you read some of these numbers? ubs? >> you mean how much money has been lost. >> $150 million. >> the thing that kills me is what it does to the individual investor and the numbers in "the wall street journal" point out since the flash crash back in

may 2010. a net $373 million has been withdrawn in stock funds by small investors. the trouble of facebook doing the small thing, they say investors pulled -- i saw the statistic, and i -- it stopped me, and i thought to myself, are they right or are they wrong because when you think about it, in the last three weeks, what else has happened? spain, europe, everything. >> the dow was up in that period of time. if you look at just the composite for the dow actually higher, there's a lot that happened. >> it could have send some people -- i couldn't tell if they were connecting too many dots. >> granted it may not have been all of that. what caught my attention was the $3 billion in the week after that. >> when was that on facebook? >> three weeks ago.

>> facebook's user growth in the u.s. is slowing sharply. >> yeah, but you know what? that story i thought was a little bit crazy, too, because you're looking at growth. it's the law of large numbers. if you have so many people coming in. it also shows the amount of people spending time on it, the growth is not the same but it's still growing up. people spend 6 hours on it. >> the only reason you were not giving the growth is because of the sales? >> i believe it was may 18. >> how do we become within a month we talk about that the whole fad is sort of slowing within a month? they're lucky they got this when they did. >> absolutely. but it's sad -- >> but, you know, we knew things were slowing. >> what stablized it. >> a lot of conversations we had at this table andover tabled where they said this was an

overvalued stock. >> did you go on facebook this weekend? >> i dope think i did actually. >> to get on the air time. >> meeting people? you got to it some other way? >> did not do that. i was going to show it to pilar this weekend but i didn't get a chance to. >> let's talk about the two main stories we've been focusing on this morning. a bailout for spain and also the economic numbers out of china. joining us from new york right now is jeffrey sachs. jeff, what enwe look at what's happened with the spanish bailout, how dwloung think that this solves the problems there? >> well, it looks better this morning than it did last week and there's a huge sigh of relief around the world. and the little bit of glimmer of good news in china also that the bottom isn't falling through the chinese economy adds to that sense of hope. things looked pretty bleak a few weeks ago, that all of the

crises were coming together in europe, u.s. slowed down, china. and maybe we're seeing a little bit of hope. but it still is a treacherous terrain right now. all eyes are on greece. next week could elect a leading party which says that it wants to rip up the existing agreement between greece and europe on the bailout. and that would throw the eurozone back into an absolute turmoil. so this is just good news, but it's a step in a very, very treacherous process right along the cliff of survival of the euro. >> yeah. i guess, jeff, we've been trying to figure out what this means over the longer term. if you shore up the banks. the criticism to this point has been that every move that the eu has taken has been too litter too late. is this something that qualifies as potentially putting up a real fire wall?

>> i think that it's good news that they acted a little bit faster and with a little bit more and a little bit more fire power, and there's been good discussion in recent weeks that europe needs really a banking union to address what has been an unresolved banking crisis since 2008. so much attention led by germany has been on fiscal policy, whereas looking closely at the eurozone crisis, we've seen that this has been an ongoing banking crisis that has been unresolved. that certainly is the case in spain. but really it's been the case in greece as well, though fiscal policy got greece into this steep crisis. what's killing the greek economy is that there's no functioning banking sector right now, no credit for small and medium enterprise. germany has kept all of the focus for two or three years, maybe partly for their own

internal political reasons on the budgets of these crisis countries, not on resolving the banking crisis. and now at least in the last two or three weeks there's focus on the fact that there really is in effect a bank run taking place from the southern european banks, depositors leaving, going to the save havens, relatively safe havens, maybe there's more serious attention, but you never know in europe. they seem to wait until the absolute cliff is reached and politics could still completely overrun this process. those of whose want to see the eurozone safe, that's not everybody, but i'm part of that camp and hoping finally they're getting message you can't live like this, you can't survive like this. >> all right, jeff. we want to thank you very much for your time this morning. it's been great talking to you. >> great talking to you, thanks a lot. >> if you've got comments or questions on anything you've

heard, including jeff, you can i'm us. a quick break now. the futures -- or rather the futures from the picks, that's what we're going get to. spain dominating the chatter when we return. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ the hyundai genesis. in a new, faster-acting formula. s tio-y siin lxtes zemethan a porsche panamera s.

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welcome back to "squawk." john brady of r.j. oh brady joins us from the cme. the question of the morning, does whatever looks like a rally or at least it looks like we're getting set up for a rally today, does it last? are we finished? can we just say, done, go away for the summer now? >> absolutely not, andrew. income, markets are kind of rolling over.

s&ps rolled over. the european dollar opened around the 126.60 level. it looks like europe is rolling over. there will don't be defensiveness this week ahead of both the french and more importantly the greek elections next weekend. there has been a burst of good news but keeping this sugar high is going to be difficult for the markets during the course of the week. >> okay, john. thanks for that perspective this morning. >> when we come back, the man responsible for president obama's social media strategy in the last election. we'll talk about what he sees this time around and how technology is changing the game. i went to a small high school. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure

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we're back. and we're joined by a special disrupter, joe green, president and co-founder of nationbuilder.com. a lot of big names. sean parker, our good friend, mark andresen and ben horowitz. maybe he will talk about this, he was mark zuckerberg's roommate at harvard. we've got a lot to talk about. let me just talk about what this product does. what does nation builder do? >> yeah. thanks for having me. nation builder is a software

platform which helps leaders organize communities online. we made that accessible to everyone. >> when you say leaders, a lot of political leaders. you've done a lot of work for obama and kerry and others. >> i start as a lowly field organizer on the kerry campaign and i was trained in this age-old tactic of organizing which is how do you mobilize people into groups. we're focused on the mass of local elections. there's about 509,000 local elections. so we're helping to bring the technology that obama had in '08 and actually even newer stuff to that mass of local candidates. >> how much is about getting the word out, and how much is it about fund-raising online? >> it's a whole package that does your website, database. it's ultimately about how do you talk to voters. you can talk through volunteers, directly, raise money in order to do advertising. in the end the election is all

about talking to voters. >> you've been associated with democrats. it is a bipartisan platform? i imagine it is, but i'm curious, is there a competitor with a history on the republican side? >> well, you know, we are very strongly bipartisan. when we started, people said it was impossible to build software that served the political world that was bipartisan. i think we've proven that's possible. we've had everyone from newt gingrich to the green party to cory booker to wendy long here in new york as a republican senate candidate or across the river in new york i should say. >> how much does it cost? >> it starts at 20 bucks a month. >> 20 bucks a month for the candidate? that's it? >> for the candidate. it scales up depending on the size of the campaign. we really focused on making it accessible for everybody because, you know, we focus on presidentials where the money field campaign is spent. but on a local level, you actually make a much bigger difference. >> how does it work, though? if i sign up for 20 bucks, what do i get? >> you get a website, a full

database. we give you for free voter data which is a list of all the registered voters which is huge. >> that is huge. i can get that for 20 bucks? >> if you're running for city council, here in new jersey, the youngest elected, at age 23, beat a 19-year incumbent. and he did that by talking to the older voters door to door, the younger voters at seton hall university on facebook. but with the voter data, you know who's registered, who's not registered. he won by 18 votes or 19 votes. so you can win these small elections by very small margins by having the best campaign, like the best-run campaign. >> how much is about leveraging social media? do you give addresses so you can do offline? >> we have tools to do door knocking, e-mail, text messaging. we try not to distinguish online versus offline organizing. it's all organizing.

it depends who you're talking to through what channel. >> you'll tell me who's registered and maybe what their facebook account is? >> we can give you ways to help you link those things up. facebook protects their privacy pretty well contrary to some popular belief. we help you connect those things up. we also give you things like voter history. for example, the south orange election was an off-cycle election. he needed to know who votes in an off-cycle election which is a small number of people. >> since you just mentioned facebook, tell us about zuck as your roommate compared to the movie. >> i like to say the movie got the big things wrong and the little things right. so every t-shirt he has in real life, i think he had in the movie. but the fundamental motivation was very wrong. he was always so motivated about making a big difference in the world. like not insecure about girls. i was just at the wedding of the girl he was dating before he started facebook. the motivation about being unsecure about girls is patently false. >> are you a facebook share

holder? >> i am. >> are you holding on to this thing? >> i am. >> we were talking earlier that stuff may be slowing down on facebook. do you buy that? >> i think it's inevitable that when you reach the limits of the world population that you'll start to slow down. >> were you a pre-ipo shareholder? >> i was. >> he's doing okay. >> it makes a big difference, whether you're a post or a pre-ipo holder. how long have you had the share? >> for quite some time. >> are you buying some more? would you buy more at this valuation? >> i would if i didn't already own a lot of it. >> good answer. >> are you still friends with him? >> very good, yeah. >> he was just at the wedding. >> the wedding -- the wedding. >> the wedding. the wedding. okay thank you for coming in this morning. >> yeah. thanks for having me. >> this was very exciting. >> the big thing is the voter data, getting access to that and finding ways to use that across multiple platforms. >> most people running for local election are literally using microsoft excel so they're

knocking on ran doom doordom do. it can narrow you from talking to 20,000 people to talking to 2,000 people. >> if i sign up for you, are you going to also help my competitors, or are you like a lawyer where i block you from using somebody else? >> we in fact in many races have multiple candidates. in fact, one of our first customers was a scottish national party who just won in the scottish parliament. and because of them, the british labor party who signed up who are their direct competitor. in normal business, this is what you do. you sign up pepsi and then you go call coke. we think of this as fundamentally software. in the past, we're only going to work with one side just doesn't make any sense. >> thank you. >> appreciate it. great having you here. when we come back, we'll talk more about spain getting that bailout. it's certainly helping the markets today. those dow futures up by 116. s&p's up by 13. we'll be right back.

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easing the pain in spain. european finance ministers agree to help struggling spanish banks. we're going to hear how stocks could react here and beyond from martin wolf of "the financial times." big businesses, big families. we are kicking off a special series honoring father's day. going inside the minds of top business leaders and their children. richard lefrack and his two sons join us. one of the most recognizable names. former florida governor jeb bush and real estate developer and investor george p. bush. the second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick. the stock futures are jumping this morning on news of a larger-than-expected rescue package for spain's banks. ministers have agreed to lend them up to 100 million euros. more on that in just a moment. we also have a little bit of other news, though. apple's widely watched developers conference getting under way in san francisco today. among other things, apple is expected to unveil the newest operating system for the iphone, ipad and ipod. also today, former goldman sachs board member gupta, well, he won't be testifying in his own defense in his insider trading trial. prosecutors rested their case friday. and gupta's lawyer had previously indicated that he was likely to testify. he's accused of illegally divulging inside information to

g galliant group founder. new figures from com score. that's the slowest growth since they began keeping track in 2008. back to that agreement in spain. it's helping struggling banks giving the market a boost this morning, but europe still facing critical moments ahead including an election in greece this upcoming weekend. joining us, martin wolf, chief editorial commenter at "the financial times." we just talked to you last week. now that we've gone through the weekend, i'm curious, just your initial thoughts. is this bailout going to be enough? >> well, these have very initial thoughts. there are lots about the bailout we don't know. we don't know the terms, as i understand it. what interest rate, in other words, spain will be paying. and i certainly don't know enough about the condition of spain's banks to know whether

100 billion euros will be enough to fill the hole. it's quite a big sum. it's about 15% of spain's gdp. unfortunately, i suspect nobody knows because the true state of the spanish banks is going to depend on what happens to property prices. and there the crash has really only begun. many of us think prices could fall a lot further. and is also depends on what happens to spain's economy which is sinking at the moment. and i fear is likely to sink for a long time further. that would tend to make the ultimate losses bigger. there's one other aspect of this deal, which is very important. it affects the seniority of creditor claims on the spanish government. these will clearly be senior loans. and the result is that it may quite significantly reduce the willingness of the private sector to finance the spanish government whose debt is now going to increase.

it's ultimately spanish government debt that is backing the banks. it's just the loan is coming from europe. and there's therefore the risk that that will affect the credit worthiness of spain itself. so i don't think this is over by any means. >> martin, you just painted a negative picture but you did it simply within the context of what's happening in spain and only spain. let's layer on top of that what may happen during this election in greece. i'm curious what you're handicapping that outcome to be both in terms of who wins and what that party ultimately will do in terms of whether they stay in the eurozone or not. >> well, it's still unclear, as far as i can see, who's going to win. the latest things i've seen suggested that there may be -- that the new democracy party, that center-right party, will be the largest party. the questions are essentially two. first, will whatever the new

government is reach a deal to continue more or less with the program as outlined? obviously, with the new democracy government, that's far more likely. but my worry is even if that happened, obviously the crisis becomes much more imminent if it's the left-wing party that's in power and insists on renegotiation. but even if that were to happen, this is very far from the end of the story because very few of us -- certainly i'm not one -- believes that the program as outlined can restore greece to health. in other words, the greek economy will get worse. the debt problems are likely for that reason to get worse. and they're almost certainly going to have to come up with another package with more -- with more assistance. so this is just kicking this can further down the road, even if everything goes well. >> can this situation be solved without some form of deposit guarantee like the fdic across europe? >> well, that's certainly one of

the elements. and this is so for the following reason. that if greece were to exit or there was some other big shock, one would expect the depositors in vulnerable countries to run. and that's certainly a big nightmare and very difficult to deal with that. unfortunately, i'm not clear that a deposit guarantee is enough. a deposit guarantee is fine if there's absolutely no doubt that the euro itself is going to survive and the only risk is that banks will go down. but unfortunately, there are two risks here. if you're a depositor and save spain in a weak spanish bank, the one risk is the bank will go down. and the other risk is that spain won't stay in the eurozone. that's not a negligible risk. you need something more powerful which will indicate that the euro is there to stay. and that, of course, that

problem didn't apply in the '30s in the united states. >> martin wolf, very smart analysis this morning. we appreciate your time and your perspective. >> it's a pleasure. >> always. thank you. we are marking the week leading up to father's day with a very special guest. we have fathers and children who have been equally successful in business who will join us all through the week. kicking things off is richard le frack. his two sons, jamie, principal, overseeing the real estate side of the business, and harry who directs all of the companies that are nonreal estate investments like banking and oil and gas. gentlemen, we want to thank you very much for being with us. all three of you today. >> thank you, becky. >> thank you. >> richard, we have you here with us often. let's start off talking about the spanish bailout over the weekend. what should this do and how should investors feel about our markets this morning? >> i think they should feel better about our markets just

because we can still print money here without asking for permission. and i think that's probably a critical difference between what happened in spain and what happened here. and for all the weaknesses that we have in this country, and we have plenty, the dollar seems to be what people call it the king right now because our economy is a little bit better than anywhere else's. and i would kind of agree with martin's analysis is that it's a good move that they're trying to shore up the banks. but think about how 125 billion euros, which is what they said they were going to give, shows you how weak they are. and the underlying real estate may get worse before it gets better. >> so it's not over. >> nothing -- it's not over until all these economies heal. i mean, they have to start healing and growing. >> is there a big enough number that would have made you more confident? when you said 125 billion

euros -- >> $125 billion. >> it's $125 billion. 100 billion euros. >> i don't think it's the size of the number. you know, the fact is they said they're going to support these institutions. so i think that's a signal that they're going to continue to support them. >> who's going to support them? >> if they get no internal growth, then it's just a paper-printing activity. >> you haven't bought anything -- have you ever bought anything over there? >> we own actually -- you know, we own a bank in london. >> no, any real estate? >> guess what? harry and i are leaving tonight for london. harry, go ahead. >> yeah. in the uk and europe for the next two weeks to start making introductions and trying to identify assets that we're interested in because it may very well be that we will have the opportunity to make some great buys over the next year. >> but you're looking for assets that the banks may be willing to get rid of, not necessarily looking for more property --

you're not going to be buying bank shares, for instance? >> well, i think that if banks have recapitalization needs and they offer investors the opportunity to provide bank capital at attractive terms, we would be very interested in that. we participated in two fdic-assist the bank transactions in the united states following the bank problems here. and also a major bank asset transaction also in partnership with the fdic. so if european governments wish to have their banks recapitalized and they're going to put the state as part of the package and attract investors, we would be interested in that. but in the first instance, i think we're looking at assets. >> who's introducing -- how does this work? you're going to make -- the lefrac l lefraks are loaded. let me show you our portfolio. >> that may be hyperbole. >> would you look at property in spain? >> question. >> you would? >> absolutely. >> family or something, richard? >> i definitely would look to buy. as a matter of fact, i would

prefer tobias sets because that's when you're supposed to buy. >> hold on. so when you guys go over there, do you guys have meetings with real estate agents who are going to traipse you around to different properties? do you have bankers? how does this work? >> we have relationships. the best opportunities are found off market through relationships with people that you know, with people that you've had business with for a long time. and those are going to be the places where you're going to find the best deals, the best buys and the assets that are most interesting to you. >> so it's not really introductions. >> oh, no. >> you know they're going to introduce you to a deal. >> exactly. while we wouldn't go there and say that we're loaded -- >> they already know. >> but we're liquid. >> i like that. you're not liquid, you're loaded. >> we've kept our liquid and balance sheet in very good shape. >> they see you fly in on what and they think, we'll take this check. >> harrison, when you show up, though, we spoke with larry fink last week who had just come back. he said a lot of european

investors would not be willing to buy any more of the sovereign debt. they're very concerned at this point. my guess is you guys are doing what you've done before, which is taking a look in miami and other places where when we were in trouble here, you guys went in and bought assets at a huge deep discount, correct? >> that's correct. >> i'm sure you guys have heard many times the rules of real estate and the three most important things which is timing, timing, timing. >> i thought it was location. >> it's timing, timing, timing. timing can make a dumb buyer very smart and vice versa. in the case of miami, we found the assets we bought recently and the projects we've gotten ourselves involved in were great in terms of the timing. it was a place that was super distressed that has great fundamentals. that's why in the last couple we'res we've seen it swing up. >> spanish real estate's going to be selling at a huge discount. >> you're talking 40%, 50%, 60% off? >> yeah. you know, if you apply yourself,

you'll find some little cherry in there that's worth owning and you'll be able to buy it and buy it on great terms because some bank is going to say gee, if you'll just pay the interest -- >> but you mentioned, you have to dig to find this. >> yes. >> you've got to find the cherry or find the pony in there. it's not just buying everything across the board? >> no, unless there's a portfolio of stuff that's really, you know, they're giving it away. and when they're giving it away, you would go after it. but you'd have to have competent local partner with you. >> and jamie, very quickly on the u.s. right now, you're more conservative at this point in terms of the construction market at this point when you look around? >> well, look. there's a certain amount of construction that our business just does all the time because we've got the resources to keep going. so we are now building some apartments in new jersey. we're building some apartments in queens. and then we have some big projects in south florida because that's a market that we are pretty bullish on irrespective of everything else. of course the headwinds and possible downside for the economy all over the place will give everybody, i think, pause

now to do anything too wild. >> gentlemen, it is going to be great having you three here today because we have a lot of things to talk to. you're the perfect people to talk about this week. so stay right here. up next, our special father's day series continues. one of the most recognized names in politics and business, we're going to be welcoming governor jeb bush and his son, real estate investor, george p. bush right here on "squawk." before we go, take a look at futures. green arrows across the board. dow looks like it would open up about 100 points higher. we're back after a quick break. tdd# 1-800-345-2550 let's talk about fees.

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our next family represents a dynasty. jeb bush, former governor of florida, and george p. bush, former founder of st. augustine partners. st. augustine focuses on small to middle-market companies in the oil and gas industry as well as tech start-ups. and governor, it's great to see you. but we've interviewed you so many times, i've got to talk to this other guy who is named george bush which we love. and let's start -- you've been in private equity a lot. were you one of the good private equity guys, or were you one of the vampires, mr. bush? >> that's for you, george, not me. >> oh. i would self-describe myself as

a small business guy. i mean, we're not a huge bracket firm by any means. we were started six years ago in the difficult financial times, ar guyabl arguably still in tho difficult times, still scratching and clawing like other entrepreneurs. what gets lost in investment funds is that there's an overwhelming majority of us that are small businesses. and i think our perspective, unfortunately, gets lost in the discussion. >> we hear about -- and entrepreneurs, i the average entrepreneur, their yearly salary is $50,000 or something and they fail three times before they succeed. we don't think of it that way. while you're at it, then, i'm going to call you george if that's okay. george bush. >> sure. >> if you, as a small business owner, are you inundated with trying to keep up with all the rules and regulations that we

hear about in both taxes as well as regulations? >> absolutely. i mean, without getting too political, you know -- >> that's okay. >> the combination of obamacare -- the combination of obamacare and now dodd/frank have been a meaningful addition to our top line. you know, to a lesser extent, i think it's impacted our ability to hire newer workers. but there is great talent out there that we are able to hire. like entrepreneurs, we align our interests. and even though we pay ourselves less than market, we have an ability to enjoy upside, and that's ultimately our incentive that we offer, you know, new employees. but yes, regulation, taxation, all of this, i think, has led to a lot of uncertainty not only in our business but a lot of our colleagues and a lot of folks in the community are waiting until after election really to make meaningful decisions. >> governor bush, we haven't had you on in a while. we'd like to have you on to talk

about this election. so i'm trying to think of what topics we haven't been able to hear your feedback on. and over the last six months, i wouldn't know where to start. i think it's been that long since you've been on. we had the attack on private equity. you know, we've seen sort of the tone of the election playing out here on both sides. just comment in general on what you think about it. >> well, i think you start with the premise that the president's policies haven't worked, at least as well as he promised. and that makes him very vulnerable in a general election. and governor romney wants the republican primary ended. his numbers have improved pretty dramatically. and now, as to be expected, we're in a pretty close election. i think going forward, if the economy doesn't show any kind of rebound, i think that mitt romney's going to be the next president of the united states if he just stays focused on how to create a climate for economic growth. the conversation that you had about spain with your guest

hosts, family, is really an important one because the argument in europe and in the united states by some is that austerity means -- is bad because you're limiting government. but what we need to do is create pro-growth policies for the private sector. the president just doesn't get this. his comment which is considered a gaffe really is a clear indication last week that his view is shaped by his ideology. he thinks that the private sector's doing quite fine. it's the economy that's hurting. well, the private sector is the economy. and that's the point i think that the obama administration really has not grappled with and understood. >> and governor, if we were to talk -- i think about all the different angles of just talking to the vice presidential pick could be you that we know about. the gap that governor romney has in the hispanic vote, the latino vote. you wonder about marco rubio.

you have an hispanic wife. you know, george, you're active in latino affairs. i wonder, you could get florida and maybe help with the hispanic vote. is marco rubio ready, jeb, do you think? >> i think he is. and governor romney has some great choices to pick from. i'm not one of them. >> you're not -- what do you mean? you are one of the choices. >> no. >> you're not? how do you know? i'm sure they're doing something -- trying to find out some stuff about you along with everybody else, no? >> well, joe, i've sent enough signals on your show alone to make it clear -- >> we never listen to those. >> apparently not. >> so you think that -- anybody else besides -- do you think he should -- i mean, you get florida and the hispanic card. but i guess there's just worry about the experience factor. >> well, to be fair about it, marco rubio has more experience at this stage of his political life than barack obama did at

this stage of the campaign four years ago. i'll just leave it at that. >> what else do you think this comes down to, governor? class warfare hasn't worked in the past usually. but this is a different environment we're in at this point maybe in terms of income inequality. you know, it's a tough economic period. and the one thing you're going to hear from axelrod and others is that the republicans just have these same old tired ideas. cut taxes for the rich and everything's going to be okay. and no regulations. is the population going to buy that? >> you know, look. we're in a very -- a too many of great anxiety. and so i think although it's never worked in the past, this class warfare rhetoric could have some impact. but i do believe at the end, people want to believe that things can get better. and so governor romney has, as his challenge and i think a huge opportunity to lay out a more

hopeful, optimistic future for our country and then explain, which i think he can do quite well, why he's the guy to lead us to that promised land. so it's not just the simple cutting taxes or whatever the rhetoric is of the time. it's also to create -- you know, show specific plans to deal with our entitlement problems in a way that doesn't hurt everybody to stimulate private sector investment and job creation, to reform our education system so that people have capacity to not eliminate regulation but move regulation to the 21st century, to create a patriotic energy policy. there's all sorts of things that i think when you put it together will give people a sense that we can do a lot better than we're doing now. >> hey, jorgeorge, we've been watching the markets. from your perspective, what's had a bigger impact? volatility in the markets? is it the economy slowing down? the jobs market, talk there about unemployment going up. where do you feel it the most?

>> well, thankfully in texas, we've survived the stormy think a lot better than a lot of other states. we do keep an eye on the macroeconomic trends in terms of what's happening in europe as you guys have been detailing on a daily basis. for us, it's really looking at in terms of regulation and taxation will impact us on a micro basis. and that's -- so in terms of managing that risk and understanding what's happening in washington, d.c., is very important for us. we spend a fair amount of time in washington, d.c., visiting with the professionals, the consultants in terms of understanding where congress is going. and so, you know, as we enter the crazy political season, businesses like ours are becoming that much more cautious and prudent in terms of allocating capital. >> governor bush? >> yes. >> i just committed a

multibillion-dollar, 15-year development in south florida. do you think i made a mistake? >> no, i don't. in fact, i was so excited to hear that your family has invested heavily in south florida. i'm a huge believer in my hometown and my hometown region, if you will. the population growth has come back. mia miami's year-to-year job growth is up 8% through april. it's just a vibrant place. alive, very international. the real estate market took a huge hit. and you're probably buying -- you know, buy low, sell high is kind of the plan, i assume. that's generally, i think, if you've been involved in purchasing real estate in the last couple of years, as we have as well, good things, i think, are going to happen. >> we can't get your brother to talk about the current resident of the white house at all. how about you? this rick scott, is he doing any

good? >> oh, rick scott? he's doing great. he's not the greatest politician. he doesn't have fancy footwork, but he's a pretty good blocker and tackler, pretty solid conservative, and he's doing what he said he would do. could i have a shout-out to another dad? >> yes. >> tomorrow is my dad's 88th birthday. and he's the greatest grandfather and greatest father on the planet. and we love him dearly. >> i saw a piece yesterday on your dad, just talking about as far as historical figures, he doesn't get -- he gets short changed on that, and that might change. he said he's not a lion. and then you look at when he enlisted and what he did and how long he worked to finally -- it was probably no one more experienced to take the office of the presidency than your dad. you'd better get started, george p. any plans? city council? what do you think? >> well, i understand there could be some offices opening up in the next election cycle, but

right now my focus is on business and two political action committees i'm involved with here in the state of texas. but you're absolutely right, my grandfather is a true testament to the higher calling of public service. >> give him our best and happy birthday. thank you, governor jeb bush and george p. bush. appreciate your time today. thanks. >> thanks. coming up, we've got a big week for wall street as europe remains in the spotlight. we preview the week ahead with bob daal coming up next. what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello ? ally bank. no nonsense. just people sense.

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welcome back to "squawk box" on cnbc. here are your morning headlines. gas prices continue to fall. the latest lundberg survey showing the average price down nearly 16 cents over the past three weeks to about $3.62 a gallon, the lowest in four months. and someone out there is willing to pay almost $3.5 million to have lunch with warren buffett. that's how much the unknown bidder is going to be forking over in buffett's annual charity auction. last year's winning bid was

$2.63 million. and finally, "madagascar 3," europe's most wanted led the box office by taking in more than $60 million in north american ticket sales. "p "prometheus" was second. you've got green arrows across the board. 85.60 is what it looks like if we opened up right about now. becky. andrew, thank you very much. as you know, stocks are coming off their best week of 2012 and getting a little built of a boost out of the news of the bailout for spain's banks, joining us to talk more about it is bob doll, chief equity strategist at blackrock. and bob, this bailout for spanish banks, how does this make you feel about stocks overall this morning? >> well, a little better, becky, as you suggest by the headlines. look, this is not the final answer. we don't know what the final answer is. europe like the u.s. a few years ago has thrown things against the wall to see what will stick. this is a step in the right direction. it's not the end. we'll see lower rates from the ecb in my opinion.

maybe another ltro sort of thing, more guarantees of deposits. whatever it takes, i guess, is what i'd say. but this is a step in the right direction. >> the question has been, is this enough or is it too little, too late? because most of europe's steps to this point just didn't really come through and didn't have long-term implications. do you think that this is a more significant move than what we've seen in the past, bob? >> well, significant in that they are taking action. look, all of these actions, in my judgment, are to restore confidence. again, i take the lesson from late '08 and early '09 in the u.s. the actual actions were debatable. were they big enough? soon enough? late enough? but the attempt here is to try to restore confidence. this is a step in the right direction, but as i suggest from my list, this is not all it's going to take. we can't just do this and go back to getting europe off the front-page headlines. i wish it were that easy. >> what do you do today when you start looking through to figure out what to do in your portfolio? >> i take solace in the fact

that the authorities are doing some things. i step back and say, the u.s. economy, after the employment scare of a couple weeks ago, still seems to be okay. twoish percent. the ism new orders survey was pretty good. the fed's beige book. i think we're continuing this muddle through, becky. the stock market, as you know, was up 30% from the october high to the april low. we came back 10%. i don't think the sicyclics is over. energy is the area that's gotten hit hardest on this pullback. both natural gas and oil prices. i think some of the industrial names also show some interest, becky. >> and bob, we got the news last week that you're going to be retiring. when are you leaving, and we're going to miss you terribly? >> you're kind to say so, becky.

i'll be with blackrock as a consultant through the end of the year. >> we want to thank you very much for joining us, and we will talk to you again soon, okay? >> thanks, becky. coming up, do you want to be your own backyard hot dog-eating champion? well, you want to know which wieners are healthy for you? we're going to let you know details next. and the super rich. looking at you. fortifying their personal security with sophisticated cutting-edge protection. but that protection carries its own dangers. "squawk" continues after a short break. ... ...with the best math scores. ...the united states would be on that list. in 25th place. let's raise academic standards across the nation. let's get back to the head of the class. let's solve this.

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welcome back to "squawk box," everyone. with more than 12 million people out of work, it is hard to believe that some companies are actually having a tough time finding qualified workers. but a recent study from recruiting firm manpower shows exactly that. nearly half of u.s. employers are having trouble filling key jobs. the survey found demand ranged from highly skilled positions in i.t. to welders and manufacturing. and the summer grilling season is in full swing. and that means hot dogs. so which brands could be considered healthy, and which should you avoid? according to health kold,

applegate farms hot dogs is considered one of the best. only 110 calories and 3 grams of saturated fat. by the way, they are made from organic grass-fed beef. at the bottom of the all-beef hot dog list, ballpark franks, 1090 calories, 7 grams of saturated fat. all right. so put that in and figure out what you're going to do with it over the weekend when we get back to grilling. when we come back, more from our father and sons guest hosting trio. up next, deadly protection for the super rich. it is big business and eamon javers has the story. >> from omaha to hollywood getting the inside secrets on super security for the super rich. and we'll have all the details when we come back. ♪

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the super rich are fortifying their personal security with sophisticated, cutting-edge protection to take down any intruder at any cost. eamon, i can't read this any

other way. but the technology can be hidden and sometimes deadly. cnbc's eamon javers has more. >> i can't read it that way. that was pretty good. >> don't you have to? >> like the hollywood voice-over guy. in a world where you need security. you need everything. it's incredible what they have. we were in miami beach on this enormous $50 million super yacht. we were in omaha, nebraska, with dan clark and warren buffett's team out there. we were in the hollywood hills on this mansion that had a helipad on the top of it in case they need to do evacuate at any moment. and in the basement they had this bomb shelter and incredible technology agoes along with it. it was really scary and impressive, the lengths that they go to in order to protect themselves. a lot of the folks we talked to said that part of what's driving this is occupy wall street, the political mood of the country right now, anger toward the wealthy. some of these people feel like you know what? there are new threats inbound

here, and i've got to make sure that i've got top-line security. that's what we did. we traveled the country. >> mexico. that would be number one for me. in this country, it seems like it's not a huge deal at this point. >> that's exactly true. in different countries, they do different things. including if you're flying into mexico or africa or someplace that might be more dangerous, they have airplane security guys who will fly you in, drop you off, take your plane out of the country because they don't even want to leave it on the air strip at all for any length of time and then bring it back in when you're ready to go and take off. >> you're nodding. richard is nodding. >> there's certain places you may find that somebody stole a plane from you. >> really ? >> not you, but they stole. >> man traps. there's a theory called man traps in personal security when you're putting these layers around your house. and the last layer is what gets the intruder when he's coming in. we've got a clip.

i want you to take a look at this because this security system totally scared me. take a look at this. >> reporter: this issed to perry. you've got a device here. this is terrifying. >> these are 15 shotgun shells. >> you mount this into the ceiling or wall? >> either. we put it behind walls, behind ceilings so it balloons with the architectu architecture. >> what happens? >> first, it's not something we do in the u.s. it's something we do overseas. it requires a series of three or four authentications before it can be deployed. and then -- >> reporter: when you fire this off, could anybody survive underneath this? >> not a chance. >> and so that's what a man trap looks like. tonight at 9:30 p.m., we'll have the full documentary for you. but you get a sense of if you're standing in the foyer -- >> the idea. >> right. what if your housekeeper's coming in? >> but you have four different --

>> it sounds like a nuke. >> it's got a redundant system. >> it sounds like before i get through it, you're already in trouble. >> it's mounted up under the drywall. >> it goes through the drywall. >> goes right through the drywall and gets the guy in the foyer, makes a bit of a mess on your tile. >> hold on. you said he doesn't do that in the u.s.? >> that's what he said. that's what he said. they have done it around the world and that they require a bunch of different authentications in order to actually fire it. that whole system, though, is controlled by an ipad that's operated out of your safe room. if you go into your panic room and you've got your bunker shut. >> this is a little nerve-racking. >> yeah, if you've ever had a blackberry crash on you. >> is this being done in asia? middle east? south america? >> they tell me around the world. they have clients in south america and elsewhere around the world. it depends -- you know, you scale up your security based on the level of threat that you're facing. you know, here in new york, you probably don't have the shotgun

shells mounted behind the door. but elsewhere in the world, you might want to look into that if you're getting a lot of threats. >> we have a particularly nervous office tenant who wanted it installed, a crazy contraption, that he could get into that would bash through the window of the office building and deliver him by parachute safely to the street below. >> really? >> yes, we did. >> did that work? did you install it? who provides that? >> there's a company actually in new jersey that will make this thing. >> so it's like you hit the eject button on your desk at work and you smash through the window? >> yeah, that's it. >> 40 stories over fifth avenue. >> wow! that's out there. eamon, thank you very much. >> hey, thanks, guys. when we come back, more on business politics and the economy with our father/son trio richard lefrac and sons jamie and harrison. and next hour, steve forbes and his daughter, moira. they'll be our special guests.

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we're back. sorry, we're doing stuff during the break that's unfair. let's turn to our guest host trio, richard, harry and jamie lefrak. i wanted to talk about multifamily homes and what we've heard so many times around this table, which is -- we heard it from warren buffett and so many other people who say right now if they could do nothing else, they would literally go to

arizona, florida, nevada and just start buying up -- actually not multifamily homes, they'd buy single-family homes, get a 30-year mortgage and call it a day. what do you make of that? >> i think that's maybe the scariest investment proposition i've ever heard. >> really? >> yeah. because owning multifamily, it's a completely different business than owning a single-family home. when you own a multifamily apartment building, when the tenant moves out, your responsibility is to paint it and lower the rent. a single-family home, that's not something that can be managed en masse, you know, with scale. that's something that maybe one guy tones ten of in his neighborhood. >> they say if there was a way it do it, which is there is not, they're talking about the value of single-family homes. not the maintenance part. >> there are people trying to do this. >> i thought it was for individual investor. if you're an individual investor. >> those are the 30-year, yeah. >> if you want to buy the house next door to yours and make it

an investment property, go for that. that's a great idea. but i have a lot of skepticism about the money that's being raised and promoted to make a reit out of single-family homes. >> and they would say the same thing. >> first of all, there's one part of that supposition which is not true which is if you own a second home for investment, you don't get a 30-year fannie mae mortgage. >> right. >> so you just don't get it because it's for your primary residence. and that's what it's for. and the management problems, which my sons referred to, are manifold. it's impossible to manage these things unless it's your mom-and-pop business, in which case you can do it, and you will make a lot of money if you can do that. if you have a little capital, now is a great time to do it. >> i have a different question. this is for harry and jamie. i got an e-mail from a friend. a father and son, they work together. he wants to know, was there ever a time you didn't want to work with your father?

what was the decision process -- the decision of deciding to be in the family business or not in the family business? >> my dad made it so exciting and so interesting that actually there was never even a thought of doing something else. >> same thing for you always? >> no. >> there was never a time in college thinking i'm going to go my own way, i'm going to do some other thing that's completely different? >> we were brainwashed very young. there was no way to contemplate anything else. >> he doesn't own a hardware store. >> i know. look, it's a reasonable question. >> i threw a lease in there and said, read it. >> if he would adopt you, you would go work in the lefrak organization, would you not? >> i might consider it. i might consider it. we'd have to come to terms on some things. but you know -- no -- >> you could do anything you wanted anyway. couldn't you start a business under the lefrak umbrella? >> one of the things that's been great, we've been able to take the amazing platform that was

created by my father and his father and apply our own knowledge to take it in slightly different directions but not abandon the core. >> did you ever think of not working for your father? >> no, i was actually chained. you know, you're the only -- in those days, it was a male deal. so you were the only male heir, and you had to come to the office. and by the time i was 12, i was already working. i mean, summer camp. whoever heard of that? i mean, i was chained into the office. that's the way it had to be. >> did your father work for his father? >> my father worked with his father, with his father. >> so this goes way back. >> we're actually a fourth-generation business, which is hardly common. it's, i think, 1%. take it that far. >> farming is a different direction, farmland. can you talk a little about what you see there? >> just as an example of things we've done differently, we started investing in farmland in

the united states. it's one of the most attractive investments you can make. in 2008 and 2009, it's one of the very few things that exhibited positive total returns in both years. if you do it correctly, you can produce great rental income from it. you know, it's related to our core business because it's a rental business, and it's income, and it's a long-term asset. but again, it's something that i became interested in. and it was a pursuit that we decided to follow off of our core platform. and my brother has, you know, found interests in hospitality, which is something that we never did before. >> yeah, we were also able to expand our platform from just kind of the new york/new jersey area to other markets, and that's why now we have kind of significant business presence in california, pacific northwest and miami which, you know, today -- >> and maybe now spain. by the end of this week. >> we shall see. >> guys, thanks for this. this was great. we'll continue this conversation, of course. now we have the answer.

always sticking with the family. i want to know what thanksgiving is like. after a big fight. i don't know, do you guys ever disagree? you guys must disagree sometimes. >> nah, not really. >> i wish -- now i wish i was adopted. >> we have sort of a very good rule. if any one of us feels strongly about something, they're right. so that's it. and the relationship is more important than the outcome or the decision. >> your mother probably doesn't get enough credit. >> she should get a lot of credit. still to come, more on spain's bank bailout. plus this weekend's greek elections likely to keep the eurozone in focus for investors. where you should be putting your money. our special father's day series continues. steve forbes and daughter, moira, she's a huge liberal progressive. not really. "squawk box" coming right back. if you're just tuning in, you're two hours too late. >> the true state of the spanish banks is going to depend on what happens to property prices.

and there the crash has really only begun. many of us think prices could call a lot further. for all the weaknesses that we have in this country -- and we have plenty -- the dollar still seems to be -- you know, people call it the king right now. regulation, taxation, all of this, i think, has led to a lot of uncertainty not only in our business but a lot of our colleagues and a lot of folks within the community are waiting until after election really to make meaningful decisions. >> what we need to do is create pro-growth policies for the private sector. the president just doesn't get this. >> the third hour of "squawk box" starts right after the break.

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a big bailout for spanish banks, but will it be enough? >> so i talked to a couple of my old too-big-to-fail plans. everybody agrees it doesn't work. barclays chief european economist will weigh in. we are kicking off our countdown to father's day with dynamic dads and their sons and daughters. this hour steve and moira forbes. and apple's iphone facing stiff competition from the samsung galaxy. we'll get a live report from the apple's developers conference that could help the iphone maker

keep its edge. the third hour of "squawk box" starts right now. ♪ i'm going to let go ♪ i'm going to waste some time ♪ you're going to say so welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin. we are kicking off our countdown to father's day with a family of guest hosts this morning, the lefr lefraks. it's good to have them here. sunday, right, is father's day. >> mm-hmm. it is. >> was that kind of a made-up thing, isn't it? >> is that a hallmark day? >> hallmark day. >> what about mother's day? >> more deserving. >> more deserving. >> you get to watch the u.s. open, joe. >> i know. there was a question as to we're going out to dinner. it's my choice. and then i remembered what was happening. and it's like i don't want to

not go out to dinner because everyone would have fun, but the open is the best, isn't it? it's at olympic this year. >> yeah. >> have you ever played there? >> no. futures getting a pop after spain agreed to accept a bailout for banks. 100 billion euros. tiger. >> you're going to have to watch, joe. >> i know. more on that in just a minute. first, our corporate headlines from becks. >> apple is kicking off its annual conference for software developers today. ceo tim cook is expected to show off new iphone software, updated mac computers and provide more details on future releases of mac software. we're going to go live to a report from carl quintanilla next half hour. general electric is reportedly looking to see more assets. "the wall street journal" says ge capital's loan portfolio could be reduced by as much as 16%, but sources say that the sale would have to wait until

market conditions are favorable. joe? one of our top stories of the morning, european equities trading higher across the board after eurozone finance ministers agreed to lend spain up to 100 billion euros for struggling banks. they scrambled to get this done ahead of the greek elections this weekend which many fear could be a precursor to greece leaving the euro. cnbc's michelle caruso-cabrera joins us with how that worst-case scenario might work. and we value seeing you. we know that our time with you is probably short. because if there's something happening in greece, you will be there. >> leaving tomorrow. you're going to be watching tennis instead of the greek elections on sunday? >> u.s. open -- >> oh, that's golf. >> tennis isn't until much later. you're a girl, okay. you're excused. >> if ever there was a catalyst for greece leaving the euro this coming weekend's elections is likely it.

ideally, it is -- if you're going to leave a currency, create a new currency, you want to do it in secret. there's very little precedent for that. we've seen it twice in modern times. south sudan managed to do it last summer. the czech republic did it in 1993. the reason you want it to be done in secret is think about it. the minute people know that you're going to be leaving the euro, what do you do? you start to get bank lines, right? people rush to take out their cash so they can have it because they fear that the coming currency will be far weaker because it will be. so the first step the government will do, then, will be capital controls. in other words, they're going to shut down the banks. they're going to shut down all the atms. for an indedeterminant amount of time, ideally for three days. it could last weeks. then they announce a redenomination, get to know this word. it's going to come up a lot. it basically means you're going to get a new currency. you'll hear a lot about redenomination risk. that's going to be because all of the bank accounts will automatically be switched from

euros to -- we assume what will be called drachmas. now they're likely going to be in drachmas. meantime, going through the redenomination process, making a new currency takes a long time. printing money takes a long time. we have the elections on the 17th. it could be a year and a half before they actually get a new currency. so what do you do in the meantime? well, you can have electronic transfers. you tell everybody you're going to use debit cards and credit cards and that's it. you can do bartering. we saw that in argentina. ious. in the meantime, can you fix my roof and i'll pay you six months from now. and you can continue using euros, but they're going to be translated into a new drachma currency. i'm going to explain more about that coming up later on in the day because there's a several-step process here. the logistics of doing this are extremely tough. not to mention just the psychology, guys. >> yeah. our question was, michelle, so

these lefties get in. is it a done deal or not? >> i don't think so. i don't think so. >> so it's not. >> no. >> so we can't say it's purely based on the election whether they stay or go. >> i think if the lefties get in, it's far more likely. i think what happens -- the way i think about it is, if the lefties get in, does the population believe they'll be leaving the euro? if they do, then you'll start to see bank runs and then the decision will get made before europe comes to an agreement. >> almost playing it like a referendum. >> they are. see, that's the thing. one party is making it sound like a referendum. the party that supported the bail out. if you support the other guys, we're leaving the euro. the problem is, the lefties are saying no, we don't have to leave the euro. we have leverage. and the europeans have made enough noises to actually let the greek people think that maybe they do have leverage, to say, you know, we're going to be more lenient. that's the problem. there have been so many voices throughout this whole crisis that you haven't had a really strong message. >> okay.

all right. michelle, thank you. for more on the euro crisis, antonio garcia pascal joins us, chief southern european economist at barclays in london. i hope you heard a lot of that, antonio. and thank you to michelle. do you agree, basically, this is being played like a referendum but it may not be to the elections? >> indeed. clearly, the two main contenders, the center party new democracy like to make it look like that, in particular, a new democracy. it may not be a referendum because even the left party, if it were to win, you are likely to have them sitting at the negotiations table and trying to come up with a compromise deal that may entail less fiscal consolidation, but they will try to keep greece within the monetary union. we believe it's in their interest to do so.

>> can spain fund itself, antonio? will we be talking about this in three months? that sovereign debt is just too high and we're going to need even more, something with spain itself instead of the banking system? >> well, spain doesn't have a record of very high public debt. the problem now is the markets are extremely diverse. and this bailout for the banks, while it's positive, is probably not sufficient to calm the markets. the reason for that is that as you've been saying about greece, redenomination rates. and to the extent that's not fixed by policymakers, the long-term, even the medium-term investor will not think of spain as a place where they can deploy their investments. it's too much of a risk. >> go ahead. >> given the landslide elections for the socialists in france, has france now become a part of

peripheral europe rather than core europe? and therefore, would you advise that one short french debt or buy cds protection against sovereign french credit? >> i think france is a slightly different situation than spain. france did not go through a boom/bust real estate crisis, clearly. they do have to come up with structural reforms, there's no question. for the socialist government. so that advice, what to do with france bonds or cds would very much be contingent on what kind of reforms they apply. it will also be dependent on what part europe will take. because it takes the path of disintegration, certainly france may become the next target. so i think it's policy dependent, but i wouldn't compare france necessarily to the rest of the periphery. it doesn't have a large amount of public debt that italy has.

neither a boom/bust in real estate as spain did. it does have problems of its own which is more related to regulated sectors and the new structural reforms. >> antonio, where are you from? what city? >> i'm from madrid. >> so these guys, you want to exchange phone numbers or something? they're coming over to spain to buy some property or something. you know some nice flplaces ove there cheap? these are the lefraks, jamie, richard and harrison. this is antonio. introductions. are you going to be around this weekend, or will you be in london? >> i'll be in london, unfortunately, but i'm sure there's plenty of property to be bought right now in spain. in fact, there's around 700 to 1 million apartments free. >> we think spain is europe's florida, antonio. >> yeah, europe's florida. >> it has great weather, and it has a good way of life, that is certain. >> great tennis players and

golfers. all right, antonio. we appreciate your time today. we appreciate that. trying to help you guys. >> thank you, joe. >> i had a private tour of the prado. what a museum. beautiful. >> very exciting. >> i'm very worldly. maybe you guys don't realize that. andrew? coming up, our countdown to father's day is continuing. up next, a father/daughter duo who run a media empire, steve and moira forbes. they're going to join us next and next half hour, we'll talk politics with two johns after this. it's very important to understand

how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future.

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welcome back to "squawk box." our next guests run an expanding media empire with strong family ties. joining us for our special series leading up to father's day is forbes media chairman and editor in chief steve forbes along with his daughter, moira forbes. she is the president and publisher of forbes business. and welcome to both of you. >> thank you. >> thank you. >> it's great to have you two here today. i want to talk about "forbes." but before we talk about your business rs steve, i'm hoping we can get your thoughts on this spanish bailout and what it means for the markets in the near term. >> near term, it will give them

a boost. but the question is will spain follow through on structuredal reforms? one of the things the germans have not gotten right in this whole thing is you have to have pro-growth policies to get these economies back on their feet. so spain's put in tax increases. they're piling tax increases on greece, portugal. it does not work. they tried that in the early '30s. it fails. so it buys time, but the time, sadly, i think, is going to be frittered away. >> you think it's the austerity measures are that responsible for that? like they really need to turn those things around and give these countries time to grow? >> it's good that they make real reforms in the public sector which they have not done. for all the talk about it, their spending compared to five years ago, much, much higher. but they haven't put in the pro-growth policies like how about a flat tax, liberalizing labor markets so you can hire somebody without a million-dollar liability on your hands. how about doing things like making it easier to set up a legal business. in greece it's very difficult. they should do what new zealand

does. you can do it with a click on a computer. you do those structural changes especially on the tax side, these economies will grow even if you don't get substantial reforms from the government. >> right now they have in spain 24% unemployment. that is expected to rise as we look at negative growth. as joe said before, not negative growth, but a decline in overall growth of 1.7%. >> yeah. well, that just underscores, this is not politically feasible. and greece, not politically feasible. and the germans aren't getting it right. they know they have to make structural changes, but the prescriptions are wrong. it's 1931 again. today we haven't blown up the trading systems we did then. but it's not viable. it's self-inflicted, those wounds. >> what does that mean for u.s. stocks right now? does that mean we're a better place to be, or does it mean that this is contagious and going to spread to us? >> it's going to slow us down. that's why the stock market, even though we get these lovely rallies, we've gone month where since the late 1990s.

just to get in a little plug for the election, after the election if romney makes it clear we're going to have real reforms, that, i think, will set a good pace for europe. they'll start to do positive reforms as well instead of this crazy austerity which is driving the economies into the ground. not going to work. >> now you're pitching romney. you were one of the last holdouts. you were still on the gingrich bandwagon at one point, weren't you? have you finally moved over? >> i backedperry. >> then gingrich. >> i never backed gingrich. >> are you enthusiastic now? >> oh, very enthusiastic. we've got to get a change. >> this is as enthusiastic as i have seen you for steve forbes. >> i believe in education. i believe in reformation. >> let's talk a little about about forbes. moira, we want to thank you for joining us today. >> thank you. >> you are the only one of your four sisters who's gone into the family business. how did you wind up going into the business none of them did? >> we were so lucky growing up in that our parents always said

follow your passions. we were put to work at a very young age in the family business -- >> cheap labor. >> cheap labor. we didn't know any better. and it was a great experience to understand our business, our customers, and i always had a passion for media. and my parents always believed that when it comes to family businesses or anything in life, it has to be what you want to do. it has to be your passion. and for me, it was the family business. >> so let's talk about what you're doing there. you're focused on women and expanding the brand when it comes to women. how do do that? >> we launched a platform a few years ago called forbes woman dedicated to women in business and leadership and do so online and throughout the world. and this was an opportunity for us to go deeper and to a really important part of our audience and have conversations and discuss issues with these women, these thought-leading women, on what keeps them up at night and what's important to them. >> and what do they say? what is important to them? >> what's important to them is

looking at their careers not as something linear. but what we see is they're all taking untraditional paths to power, making zigzag career decisions. making career decisions that allow them to achieve their life goals and their professional goals. so very unconventional approaches to managing their careers. >> let me ask both of you just about the business of publishing. it's a tough business. it's gotten much more complicated with the internet and the strength that comes up. how do you create some sort of a protective moat around your business with the internet coming on like this? >> we have to realize there is no such thing as a moat in business for very long. and technology will undo it if you think you have it. and the key thing to do is peter drucker said years ago, he said, remember what your mission is, what your purpose is. if you focus on what your purpose is, you get less hung up on the tools to achieve that purpose. so thankfully years ago we went

whole hog on the internet. we have 30 million unique visitors a month. we change the whole way we've created editorial content led by the web. and we're trying to make changes on the marketing side. so as they always say, you can either sleep well or eat well. but not both. >> steve and moira, future of the business, you guys got into business with bono and elevation as your investors i want to say six years ago now. >> right. >> i would imagine they're going to quote, unquote, look to harvest their investment. i don't know when. how do they do that? is this a company that has an ipo? can you buy back the shares? what does that look like in the future? >> it's too early to tell in terms of whether you'd be in a position to do an ipo, whether you'd do another investor. the key thing is if you have a growing business attracting a greater audience worldwide, these things will unfold rather than trying to figure out in advance when you don't know what you're going to be two years or three years down the road. >> do you think they'll make

money on this? they paid then what was considered a very high valuation. >> we wish they had paid more, but i hope it would be in their interests and our interests for them to come out whole and get a positive return on this. >> are we there yet or no? >> no, they've taken a hit. they've written it down because of what's happened to media. but when you look where we were three years ago, 2009 and where we are today, i think it's been a major transformation just to blow our horns a little bit with what moira and her colleagues have done is that today we're the only magazine that has made the kind of trags from the world world to the new world, fast-changing world. i think we've done it better than anyone else. but the key thing is don't think you've arrived because this thing changes each day. >> you're not advising the romney campaign in any way, are you? or are you? >> i give them free advice every day. even though he's rich, i gave him a free subscription to "forbes." >> there you go. >> our wisdom. >> what would you -- you can advise him right now? what do you suggest his attack

should be? last week was kind of a gift in a lot of ways. there was wisconsin. there was the leaks. and then there was the private sector is doing fine. >> the key thing is have that reaganist positive program, not just count on obama fumbles. and that is enrich in your tax programs, paul ryan has done a lot of work on that. paul has two rates. i'd like one, but he's got a good tax proposal. positive things on entitlements. and i hope the romney campaign is ready for whatever supreme court decision comes in the next couple weeks. >> we have to be ready for that, too. it could be any day. >> and the key thing is to have a positive approach. it's a nationwide shopping for health insurance. >> do you think it's going to be thrown out? 5-4? >> i think you're going to see more than 5-4. >> i wondered about that, whether that's possible. >> i think so. and in terms of the individual mandate, it just makes a mockery of the commerce clause. >> you're available. >> yeah, right. >> who would be your favorite?

>> jeb bush took himself out of it. too bad. i think he would have been superb. people like rob portman, rubio, governor jindal, crisis management, so there's a good list out there. maybe our own governor, chris christie, can't rule him out yet. >> moira, quickly, the advertising outlook today, how do things feel to you? >> it's an incredibly transformative market, the way that advertisers buy media and what they're looking for in terms of their partner is changing rapidly. so you have to stay on top of that trend. we're seeing huge signs of growth. but we're seeing that in new areas. and we always have to be ahead of the curve in terms of what our advertisers are seeking and demanding in terms roi, in terms of brands. and that's the most important thing. meet the needs of our customers. >> moira, steve, we want to thank you both for joining us today. >> thank you. >> thank you. >> i'm told that father's day is made up. that mother's day -- >> that mother's day is real and father's day is not?

>> that's self-serving for her, isn't it? but i by that might be right. >> mother knows best. >> we really don't deserve it. >> i think it was created by the jewelry industry. coming up, more of today's top stories. still to come, the representative of the state house and the sununus, father and son. looking for support, tdd# 1-800-345-2550 resistance, breakouts, tdd# 1-800-345-2550 a few other tricks that i'll keep to myself. tdd# 1-800-345-2550 that's how i trade. tdd# 1-800-345-2550 and i do it all with charles schwab, tdd# 1-800-345-2550 because their streetsmart edge platform tdd# 1-800-345-2550 helps me trade quickly, intuitively. tdd# 1-800-345-2550 staying on top of the market is key! tdd# 1-800-345-2550 and the momentum tool, tdd# 1-800-345-2550 it lets me do it at a glance, tdd# 1-800-345-2550 so when things shift, i'm ready. tdd# 1-800-345-2550 then to track the stocks i have my eye on, tdd# 1-800-345-2550 i turn to schwab's high/low ticker. tdd# 1-800-345-2550 so i can spot a potential breakout tdd# 1-800-345-2550 before it breaks out. tdd# 1-800-345-2550 and get this...i can even trade, tdd# 1-800-345-2550 change my orders or check out my positions tdd# 1-800-345-2550 right on my chart. tdd# 1-800-345-2550 my system works for me.

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when we come back, altering expectations for growth. we'll take a look at some

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welcome back to "squawk box," everyone. let's look at some of the stocks on the move in today's trading. time warner shares moving higher in the premarket after a bernstein upgraded the stock. the firm says that time warner's outlook has improved and that the shares are somewhat attractive on a valuation basis. also, health insurer centene is taking a premarket hit. it's citing higher costs in claims in its texas and kentucky markets. and trip adviser has been upgraded from overweight to neutral at piper jaffray. piper says that near and long-term fundamentals are favorable with ad revenue growing and user engagement increasing. >> i was just on trip adviser this weekend. >> keep your feet apart when you walk? is that what they say?

>> if you're going to go to a hotel, you see what everybody says on trip adviser. >> don't look -- you know, look down. >> stay at one of the lefrak hotels. >> that's all you need. let's talk about the economy. economists have been updating their gdp forecasts over the weekend. steve liesman joins us with more. steve. >> andrew, this is not something that's usually a very dynamic source of stories, okay? we did this last monday, and now we're going to do it again. i think we do it once a month after the payroll numbers. but it keeps changing. one, we have softer economic data. the second thing that seemed to have happened over the past week is economists starting to factor in europe. i think that's an important distinction. the numbers that we had seen previously have not incorporated weaker blowback from europe. and that's because the weakness that we've had has not really been related to europe. that is in our future. so the first thing i want to look at here is some of the data coming up this week which is going to be very consequential for growth. it may mean that we're back here

again next week updating gdp. we have the nfib tomorrow morning. we have the cpi and ppi numbers coming in. those are going to be significant because we're expecting a decline in inflation. that's going to add to real growth. so like retail sales is coming in later this week. supposed to be a 0.5% decline. when we get done adjusting for inflation, it's going to be an increase. and consumer sentiment. here's the updated look at gdp. we don't compare it to last week. do we have that chart? we do it. fantastic. the q4 numbers keep coming down. i think that's significant. if you overlay a political look on this thing is there's no pop in growth expected. we're still going to be -- we're going from a 1.9 -- those are the two actuals, may be upgraded just a little bit. but there's no surge expected here. 2% is where we are. 2% is where we're going to be. at 2%, i don't think it's low enough to bring them in.

everybody else thinks i'm wrong, that the fed comes in in june. yeah, christine romer said it has to be. i want to talk about the controversy over what the president said. the private sector is just fine. >> which -- >> i think i know where he is coming from. >> why do we need to keep making that clear? he didn't mean it? >> he said it once and then he came out with a statement later in the day. >> after the hullabaloo that happened? >> i try to backtrack everything i say. >> anyway, go ahead. >> take a look at corporate profits after tax as a percent of gdp. guys, it is absolutely historic, the amount of -- no, that's the other chart. my bad. i asked for that one first. this shows the other side. this shows where the president looks to be wrong here. one is consumer spending. reports of this chart from jpmorgan, jpmorgan was making the point that this springtime swoon is different from last springtime. what you see there is the blue

line is consumer spending is what led us down last spring. and now it's in the okay range. okay? business spending was up. and now what we're seeing is a business spending slump. and if the private sector is just fine, it can't be doing what it's doing right here, which is a slump. >> does it show that profits are robust? >> as a percent of gdp. >> the problem is what is causing them to hang on and not hire. and you normally will say it's demand, which is sort of -- that just puts it back another -- then you've got to make another step. you figure if their profits are so high, you would figure demand is pretty good for their products. there's still something missing that is allowing them -- >> there's a missing link that makes it so the private sector is not justified. i agree with that. >> but at 8.2%, we need to bring that down to 5%. we need hiring in the private sector. no one wants to bring it down to 5% by growing government. >> i agree with that. >> so there is a problem in the private sector. even though the profits are

there. >> i would just point out there was a guest early wrer who said that the president has this wrong, that the economy is the private sector. that's not strictly accurate, right? one out of five dollars in the economy is the government. no, no, no, just in general. no matter what you do, 20% -- and we're having a big argument right now -- 80%. i'm just making that point. and by the way, it's the thing we can choose, right? we can choose higher or lower government spending. >> but you know what i mean. >> there's a missing link. i want to put up the next chart -- >> solve the problem by hiring public sector workers. >> we cannot. >> we don't want 2% or 3%. >> you would just give me the credit, i have never said the government is a source of growth. there's that profit as a percent of gdp. it's been trending down just a little bit, but it's historically high. you can go all the way back to world war ii. and you can't find another number there. the point is that government is not a source of growth. government is something that can ease the pain or even put the

brakes on the economy over that period of time. >> helps around the edges. steve, thank you for that. stay where you are. let's get a check on the markets from rick santelli who may have some views on some of the things that steve was talking about as well. rick. >> reporter: well, you know, i guess what i'm most fascinated with is the big range we've seen in the credit markets, whether you're looking at boons or ten-year, but yeet we're coming in pretty unchanged. we're looking at spanish yields also with a 40 basis point range in their tenure or close to it. they're coming in on their low price/high yield at this point. so any of the kind of good will towards a program that probably isn't a solution regarding buttoning up the banks in spain gave the markets a knee jerk, but we're still left with pretty much the identical landscape that we had going into this. and that's going to be very interesting to pay attention to throughout the session. >> hey, rick? >> reporter: yes. >> i've got to ask you about one of the big criticisms of the spanish bailout which is now that europe is in the first creditors position on the

bailout that the private sector is not going to come in. we talked about it earlier on this show. i want to get the traders' perspective. does this say to you don't lend to spain now? >> reporter: yeah, subordination is a big deal. that doesn't go a long way to build that dynamic. >> so do we all, then, think this was a mistake? when you go back and look at what happens during our last bailouts, that was one of the complicating factors. >> but the question becomes a cost benefit. is it better to have let spain wither on the vine with this idea that it was going to have to go to public markets on its own, i don't know which is worse, the idea that the private sector would step back now because it's subordennated or the idea of letting spain go on its own. there are two sort of lousy choices. i'm not sure which is worse. >> rick, thank you for this. steve, thank you for this. appreciate it very, very much.

coming up, we continue our observance of father's day. the father's day week with a dad and son who had political success in the granite state. former governor john sununu and his son, former senator, john sununu, join us next.

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kicking off our countdown to father's day with another dynamic father/son duo. former governor john sununu and former senator john sununu join

us now. i guess i'll use governor and senator. welcome, gentlemen. >> thank you. >> it's good to be here. how are you? >> who's more proud of their career in politics? i want to see you guys argue. who did a better job? >> my mother. my mother was chairman. she was chairman of the school board for five or six years in salem, new hampshire. there was no tougher job in politics than that. and she came out looking even better than when she went in. that's impressive. >> i'm afraid to turn you guys loose on the president and on this election. i mean, you guys -- even separately, you guys are both pretty tough. governor, let me start with you. >> yeah. >> what do you make of the -- it's vitriolic and ugly and it's going to get a loss worse. >> but it will calm down because this administration is probably the most incompetent in history and eventually as more and more people start paying attention, you're going to find, i believe,

this election to be a lot different than it looks today. and mitt romney is going to do extremely well. >> what about it, senator? i guess you agree with that? maybe -- would you say even more than than the most incompetent in history? is there a way to say maybe in global history? >> now, joe, you don't want to encourage him too much. he'll use all of his ammunition early. i think it is important and meaningful to note that, you know, mitt romney has gotten to a point where it's a dead-even race right now. if you look back over the last six months, i've been writing a weekly column for "the boston globe" and wasn't very involved in the primary because i was watching the process. and everything -- all the pundits said was wrong. the fact that he couldn't break out early. they said it was going to be a tough primary. he wouldn't be able to raise money. that he couldn't consolidate his support. that he wasn't conservative enough. all of those criticisms. here we are the beginning of june. it's a dead-even race. they all turned out to be wrong.

he's had a very strong month. we're going to have a quiet period now where stories like the president's unbelievable gaffe that the private sector is doing just fine. that becomes a story. and it should be a story. but it's not -- it's not the core of the election which is going to be about the economy. and it really won't get heated up until august until after the conventions. >> let me tell you what i think was a bigger gaffe on the president's part last week. not understanding how serious this leak of classified information is. and not recognizing that the leaks were real. and if you read those stories in "the new york times," the attributions are clearly at the white house. >> they were at those meetings, and there were only four or five people at the meetings. it's impossible to find out who the leaker was, but they're quoted as being at those meetings where there were five people on the list. >> but the mistake the president made -- and it's a huge mistake -- is to give the

impression that the leaks were not coming out of the white house. he's going to wear that all through the election as this thing evolves and people understand that this white house is using things for political benefit to the detriment of the country. that's a big gaffe. >> let me ask you, right now the economy has some holes, some chinks in the armor, obviously. >> you're being modest about it. >> if things were to turn around, the president has very strong approval ratings. if things start to turn around, what do you think that would do to this election? >> and if pigs could fly. why do we ask a question that has an absolute impossibility? this economy is in rough shape. it is worse than the statistics. you've got 14.6% of the people unemployed or underemployed. the statistics are going the wrong way. >> and a few months ago things looked very different. if things were to turn around in three months, what would that

mean for the election? >> they're not going to. >> is this election riding entirely on the economy in. >> this economy is riding on competence. and the economy is the president's measure of competence. and he's had 3 1/2 years to do something constructive. can you imagine an administration that has failed to take the leadership to get a budget for the country in 3 1/2 years? >> because we haven't had a budget for, like, 40 years. >> that is not true. >> the only time we've had balanced budgets is under president clinton. >> i'm not talking about a balanced budget. i'm talking about a budget. we have not had a budget because this president, for two years, with the senate and the house under his control couldn't get a budget. the last budget he sent lost 414-0 in the house and 99-0 in the senate. you can't get a single vote of your own party. tell me what defines incompetence more than that. >> senator? >> look, you're right about one point. and that's that the white house is left to pray for some

unexpected economic upswing. you know, steve put up the chart of forecast gdp growth, as you point out. the forecast for the third and further quarter haven't been going up. they've been going down. it's not just flat gdp growth, it's below-trend gdp growth. and when the economy grows at below average, you're going to have employment growth that's below average. and that means we're stuck at 8.25%, 8.50% unemployment, and that's absolutely terrible at this point where we should be in an economic recovery. and it does have to do with the failures of the administration to deal with everything from meaningful entitlement reform, and he had every opportunity with his own simpson-bowles commission and just dropped the ball, meaningful tax reform. you know, he's talking about raising taxes. we should be talking about the things everyone governor romney's talked about, simplifying and reforming the tax code.

it's kill iing us. >> this is harrison lefrak. i have a question for you. both george h.w. bush and barack obama were career public servants, and they both faced re-election challenges dominated by jobs and the economy. as a member of the george h.w. bush white house, what advice would you give to president obama to overcome the jobs and economy challenges to his re-election? what advice did you regret not having given president bush? >> don't let ross perot run against you as a third-party candidate. look. this president -- let's talk in the present. this president has to understand that you don't just use the perks of office to enjoy what's there. you use the leverage of office to make policy. i cannot believe that this president has not gone down and

talked to the democrats in the senate and said, we've got to do something. my advice to the president is, is get something done. we are going to go through a period of time where the only thing this administration has done economically is the stimulus package that they put together that had absolutely no significant positive effect and obamacare, which is going to get knocked down by the supreme court -- >> all right. gentlemen, i did read something -- no. anyway, governor and senator, we appreciate your time this morning. >> thanks, joe. >> happy father da's day. the apple faithful are gathering in san francisco at the worldwide developers conference there. tickets for this year's event sold out in just two hours. carl q.'s going to join us live from the conference next. len, t. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything.

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>> welcome back to "squawk box." john bryson has received a felony hit and run citation. those accidents over the weekend have police saying that bryson rear ended a car, spoke with the

occupants and then drove away, hitting the car a second time as he did. he was treated for non-life threatening injuries. the police say alcohol and drugs played no part in the injuries. >> he hit one car twice and another car once. >> yeah. one car once and another car once. is this after lindsay's rear-ending. >> we need more regulation of driver's licenses. i think obama should look into that. >> i don't know what we need to do. >> it is a big day on the west coast because of apple. carl joins us from the apple developer's conference. carl? >> it's great. joe, i am literally on the

streets of san francisco. i know how important that is to you. >> i wish i had cued it up. that was, as you know, a quin martin. carl martin quin from the streets of san francisco. >> it's going to be exciting. apple is going to be unveiling who knows what. in the past years they have unveiled safari, i photo, face time. maybe they will announce a new mac line up or new operating system. who knows what else. maybe some clarity on apple tv or the iphone 5. tim cook speaks at 1:00 p.m. east coast time.

>> what was the thinking there? >> at what part of the country does the tie come off if you are moving west? i would say right around denver. otherwise you look like an outcast. >> going through boulder, the beads and the backpack come on. >> but i like the jacket. that is a good touch. >> looks good. >> carl we're going to see you in a few minutes. >> and the music continues. >> squawk will be right back. >> tomorrow, squawk hops behind the wheel with the ceo of general motors. plus it's a family affair.

the special father's day celebration week continues with dan quail and his son, congressman ben quail. squawk box starting at 6:00 eastern. if you are one of the millions of men

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>> let's get final thoughts from our guest host today. let's talk a little bit about pieces that you are seek. how strong is the u.s. economy right now. >> people are trading down rental apartments. that shows weakness. >> i completely agree. it's a strange situation where our business reflects what is going on in the economy at large where we are seeing parts of it. at some point that can't have a happy ending.

>> did you see any weakness? they weren't entirely sure. did you see it step down recently? >> just a little bit more of a malaise in people's attitudes and i think a lot of it has to do with the economy. i think it moves on to itself after all of that stuff resolves itself. just don't feel comfortable with the environment. and that's why if there would be some motion forward, just some a little light at the end of the tunnel, i think it is maybe a little more. >> richard, we always love