co-host today he will stay with us the whole show jim rickards senior managing director at tencent capital partners he's also author of the best seller currency wars the making of the next global crisis we'll bring our guest today resource guru rick rule on shortly but first jim records thank you for co-hosting capital account with me today had to be here on this is great it is great so let's start with this these comments from sandy weill because it's really interesting you and i have often talked about the problem with these massive banks they can leverage depositors to make these huge outsized trades that you said are flat out gambling as in the case of the whale trade so what do you make of the former c.e.o. and chairman of citi group saying break up the banks and is that the right solution first i applaud what senator wellstone i think was exactly right look we all make mistakes but the only really bad mistakes are the ones we don't admit are that once we don't correct sandy made a mistake in one thousand nine hundred so a lot of other people phil graham bill clinton john reed lots of people o

so much fun thanks chairman records thank you learn the senior managing director of tension capital partners author of currency wars and thank you so much for joining us that is all we have time for but be sure to come back tomorrow and in the meantime you can follow me on twitter at lauren lyster give us feedback catch any shows you missed you tube dot com slash capital account watch us in h.d. on hulu and from everyone here including our guest host have a great night. the sky. still. russian airlines.

willing to commit fraud to take risks we'll ask chris whalen senior managing director at tangent capital partners plus you could call it man versus machine we'll take a look at how high frequency trading and computer algorithms have impacted the stock market and the human floor traders who have a very special new york stock exchange word of the day with help from floor traders stephen guilfoyle plus in loose change producer dimitri kofi miss joins me in taking on the walls dream bold take it by the not exactly horns but you'll see let's get to today's capital account. all right so the new york fed replaces virtually all of its examiners in j.p. morgan mid two thousand and eleven there are about forty of them this is according to a report in the new york times from unnamed sources in the government i should mention now on the one hand they took those regulators out because they didn't want them to be too in bed or cozy with management at the same time the ones they put in didn't know a whole lot about the banks didn't know a whole lot about the operation and that could've led the way all trade to

the co-founder of institutional risk analytics he is the senior managing director of tangent capital partners and author of this book inflated how money and debt built the american dream take a look. all right chris whalen thank you so much for joining us here in a million new york on your turf well yes indeed welcome home thank you know the last time we spoke it was in d.c. in our studio so now that we are taking our show on the road to new york your stomping grounds anything i need to know peking duck house twenty eight mob street . if nothing as far as dealing with the wall street crowd on there really who we're reducing the population as we go you're going to probably see wall street shrink to about half of what it was five years ago well said to say we have too much capacity move but wouldn't that be a good thing couldn't you argue this country has been massively overbanked the financial ization of the u.s. economy yes but you know what it all goes back to world war two it all goes back to the baby boom so even the victors in that conflict and paying a terrible price because of the disto

dan niles from alpha one capital partners warned investors to stay away from facebook. >> i'm callingan the happiest facebook investor because he shorted it at 42. dan, you were clearly right about the facebook ipo, what about these levels, any interest? >> the call itself validated all of the concerns i had going in, and the real problem with facebook is not that it's not a great company. i have a facebook account. i'm sure you might have them as well. the problem is that doesn't mean it's a great stock. and that's the real issue with the company right now. >> i'm glad you brought that up. henry wrote something today on business insider where he said, and i'm quoting, let's be clear, they're a great company, it was the market expectations that were ridiculous. it sounds like you shorted the expectations of what this company could be, and you didn't short the fundamentals. >> the problem as well with the fundamenta fundamentals, and that's part of the story people are missing. the way people access fb a couple years ago is through their pc, and the pc has a pretty big screen, and adve

you can split the banks, take away the permanent capital changes everything. >> so partners' capital you think that that would have the most effect? >> well, i'm sorry, i had a little bit of an ear problem. say again. >> you're saying if the partners of the firm had more capital on the line, they put their money where their mouth is, that would be the best taker-outer of risk out of the system, basically? >> absolutely. i know firsthand when i was a partner at cowen in the 1990s and our capital was at risk every day, decisions were made on the capital allocation of the business using partners' capital as opposed to shareholder money, it completely changes everything. >> it's back to the old goldman sachs model, then -- >> well, the problem is -- and i think sandy alluded to this. the fact is these companies have gotten so global and so big that they need the permanent capital. but it's about the fact that investment banks using proprietary capital to -- by the way, anybody who's watching this right now who's in the business knows i know exactly what i'm saying here. put it back to pa

on my right is ed, the former bain capital partner, an unabashed member of the so-called 1%.t is he and his colleagues who are largely responsible for job creation. nick hannau is an entrepreneur and venture cap list, also a member of the 1%. he says when businesspeople take credit for create jobs, it's like squirrels taking credit for evolution. let's start -- ed's got a book out. we've had him on the show before. >> sure. >> so you get the first word. why is it like squirrels taking credit for evolution? >> look, if investment was the key, then there would be apple stores in somalia. and there would be a bain capital office in bangladesh. the thing -- the goose that lays the golden egg is not people like ed and myself. we are a dime a dozen. the greatest economic achievement of the 20th century has been the creation of the american middle class. it is demand. it is customers that drive all economic activity. look, the world is awash in capital. american corporations are sitting on $2 trillion worth of cash. ed's firm alone has raised $35 billion in private equity. i'm in th

in the summer of 2009 i joined a venture capital firm with two other partners. >> we are all excited about the americas cup here in district two but one thing if you think about it everyone knows what fleet week is like here in the marina. this is fleet week on steroids. think about fort mason, these

start-ups, business acquisitions, real estate purchases with ti's, working capital, a partner buyouts, business expansion. when i am looking at a potential loan, i use the standard five c's of credit. the first one is character. what we are looking for is a minimum score around 640. we would like to say no recent bankruptcy foreclosures, bankruptcies, tax liens. if we see a loan that has been modified, we would like to see a reason it was modified, what ever reason it may be. it cannot be, i did not want to pay that payment any more. the second c, conditions. basically, how precise will the money be used? we are looking at a business plan. when you look at a business plan, that is just a start up. we are looking to see where there will be the need for lending. if you are an existing business, we want to see the money that we give you goes to the growth of your business. the third c is capital itself. basically, how much of yourself had the-- how much capital haveu invested? if you are a startup, and generally, 30%. if you are an expansion, you are looking to expand your restaurant, th

for example this bcip associates, that means the bain capital investment partners, that's what bcip means. it has a little number 1 here and also further clarifying he was passive. same thing here, general partner passive, bcip associates number 2. bcip associates number 3. again, general partner he's passive. he did get a lot of money from them but he was passive. but on the fig page of this, he -- first page of this, he also lists bain capital. notice there is not a little 1 there. there is nothing here that says he was passive. in fact, it says the position he held was executive and that his gross new mexico from his -- his gross income from his involvement was over $100,000. he only had to list up to $100,000, so he didn't have to say what he actually made. he did the same at bain capital llc, he was an executive again. this is covered up, but it's also another $100,000. the bottom line is mitt romney was active, according to this filing in 11 bain-related companies where he was the 100% owner in 2002, and then he was passively involved in a bunch of others. he makes the distinction.

tell you, anderson, that i've had not only personal relationships, i started out with bain capital, folks, partnersn washington. i've given a couple of paid speeches for them. i also was part of a company that was sold to bain capital. we thought they did a terrific job. i did realize some financial gain from that. having said all that, knowing what i know about the bain capital partnership, how i think they are people of real integrity. they're very well regarded in boston. i think the romney people, the burden is on the obama people to prove this. factcheck.org today, which is a respected organization, said they stood by their reporting. that romney had no active engagement with bain capital after february 1999. i would point out that that report by factcheck.org was co-written by brooks jackson who used to be a very, very good investigative reporter for cnn. >> yeah. both of the campaigns have gone all in this week on the message that the other side is lying about bain, romney's business record. how critical do they think this debate is to the campaign? and where could it have the biggest impact

over $100,000 at b-c, bain capital investment partners, over $100,000 at bcit2. he has been making hundreds of hundreds if not more at these bain-affiliated entities post-2002. actually this is 2003. it seems to me that mitt romney has been very active in deceiving the public and wherever he has filed documents. does it not seem that to you? i'm sure i'm leading you but it is true. >> one of the things that emerged today, he was making income beyond just investment income. he was getting compensation as an executive during this phase which would certainly suggest that. but here's the deal. mitt romney can clear this up. by providing additional years worth of tax returns. he's only provided one year that would shed light on his continued involvement at bain and answer these questions. his own father released 12 years worth of returns when he ran for president. we know the documents are available. he provided senator mccain with 23 years worth of returns when he was being vetted for vice president. so if he just came clean with the american people, provided them wi

should you tell you, anderson, i've had not only personal relationships, started out with bain capital folks partnersat philanthropist here in boston and i've given a couple of paid speeches for them and part of a company that was sold to bain capital, on the board of a company, we thought they did a trask j terrific job. i did realize some financial gain from that. having said all that, knowing what i know about the bain capital partnership, i think they're people of real integrity. >> that is a real significant relationship and gergen should have never talked about bain without saying he was part of the company. >>> the new york times presented ryan holiday as a collector of vinyl records. on abc he was a long suffering insomniac. on cbs he was a guy with an embarrassing story about his office. well, ryan holiday wasn't any of those things. he's a scam artist, a liar to be precise as forbes magazine revealed. holiday, an executive of american apparel, pumped the news organizations just to show he could do it. the media outlets reached to him through a service that connects them with sources. he has

. >>> sundays up with chris hayes, we'll have a former partner at bain capital, ed connor who was partner there from 1993 to 2008. they will ask him about the extent of romney's involvement at bain capital after february 1999. again, that's right here on msnbc on sunday. >>> the other political talk of the day, big buzz around condi rice, is she really at the top of the mitt romney's vp list? >>> what's next for penn state? its football team and the world of college sports in the wake of that blistering report on the jerry sandusky child sex abuse scandal. >>> and on the legal size, tens of millions of dollars worth of settlement settlemen settlements. why should our wallets tell us what our favorite color is? every room deserves to look great. and every footstep should tell us we made the right decision. so when we can feel our way through the newest, softest, and most colorful options... ...across every possible price range... ...our budgets won't be picking the style. we will. more saving. more doing. that's the power of the home depot. make room for savings with $37 basic installation

in the summer of 2009 i joined a venture capital firm with two other partners. >> we are all excited about the americas cup here in district two but one thing if you think about it everyone knows what fleet week is like here in the marina. this is fleet week on steroids. think about fort mason, these will be the most brings taken places to watch the americas cup. what we're working on and working to continue to work on and want your input on, how do we make it a positive experience for the people that live here. >> i'm happily married and my life and -- wife and i live around laurel village. we have two children, five around they. we are proud parents and now just excited to be here on the board. i think i'm in the middle. i'm a moderate person. fiscal fiscally conservative and that is the way i intend to practice what i preach here. in terms of getting into politics, i think for me it was really that reasons. first being from here, i think that was part of my own motivation, feeling a sense of roots in san francisco. also raising our children here. i think we went through as a young

which has huge capital requirements to hugely capital intensive business and not all farmers are able to grow by their own bootstraps and they need outside partners with capital to help them grow their their farming operations so i think. less regulation and more openness to capital is is good for agriculture good for the family farm and allows investors to also participate with farmers and there are ways to do that that benefit both parties mutually and now you know there's a way to invest in a fund so you don't have to bet the farm on one farmer brad parker co-founder vice president asked capital. all right let's wrap up with lou's changes especially this change because dimitri is going to phyllis and on everything he's been learning at a gora financial symposium in vancouver with lots of heavy hitters that we've been speaking to all week that he's been a fly on the wall an active fly on the wall so dimitri i'm really excited to talk to you in vancouver i want to know what in less than two minutes you can tell me that's going to change my life. if you put it that way actually i have a present for you lauren. news here. and i. look forward to be

and global economy is roger krause, co-ceo of the private investment firm sun capital partners, whichget, initially, whenever we have a gentleman as yourself that has all these disparate businesses, how are things right now? give us a snapshot of this point in time. >> i would say things are treading water at this point. as we look at the first half of the year, sales are flat. really, our expectations for the next year, second half of the year are pretty flat as well. some positive points i think have been in the restaurant area. restaurants have been declining same-store sales for a number of years, but we've seen some stabilization there. then also our auto parts companies that sell to the oems have been doing surprisingly well, but overall, it's been pretty flat. >> everybody talks treading water and that's not going to cut it at 8.2%, is it? what's wrong? what's happening? is this a hangover from the financial crisis? no demand. is it europe? >> i think it's a conglomeration of things, and we're just at a point where we're not moving. and i think a lot of people feel that should

we'll bring them to you, break down the report with chris whalen, managing director at tangent capital partnerswe'll talk to lanie chen. "squawk box" will be right back. >>> if you're just tuning in, you're two hours two late. >> look for the fed to hold back from any type of stimulus at this point, because we just saw of course the extension of twist, which has had a less than negligible effect. >> i don't think it's going to get better until three things happen -- one, we got to do something about housing, number two, we got to do something about small business lending and number three, we've got to provide more certainty with regard to our tax laws and our regulatory structure. >> what we need is something along the way of the road map of simpson-bowles, where obviously we've got to come to grips with the deficit problem. >> it would be i think quite disastrous actually to have the fiscal cliff come into effect. that's likely to throw us into recession. nobody wants that to happen. the fact that the fiscal cliff is there is just in evidence that we haven't been facing our big problems. [ fem

. >> when we come back we're continuing our disruptor series with a venture capital partner that investsg the world. bruce gibney of the founders fund will join us right after this. with the spark cash card from capital one, sven's home security gets the most rewards of any small business credit card! how does this thing work? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? here's your invoice. >>> we're back, it's disruptors time. founders fund taking ideas from inception to ipos. what are the latest projects disrupting the world? we'll find out right now. joining us on the set, bruce dib know, former managing director at peter thiel former hedge fund. you got to be happy being out of the hedge fund business, this

share voting and dispositive power with respect to all those stericycle stock that bain capital and their partnersent was even signed by mitt romney himself. by the way, having dispositive power means you're the guy in charge. so he was definitely part of the team that made a decision to invest in stericycle. aborted fetuses maybe maybe not who cares. mitt romney ain't pro-life, he ain't pro-choice, he's pro-romney. if he needs to do this to make $50 million. he doesn't care. why did they choose this guy? because of his position on healthcare that is nearly identical to obama-care. you can see the supreme court the mandate and taxes and taxes the problem is if that's the case romney when he was governor of massachusetts passed a huge tax increase through his mandate. how are they going to answer that. we go and talk to chuck todd at msnbc and hilarity ensues. >> were you calling calling calling it a tax or penalty. >> it's a penalty. >> but he agrees with the president that you shouldn't call the tax penalty a tax. you should call it a penalty or a fee or a fine? >> that's correct. >> cenk: in oth

it is also the managing partner of excellent capital, a private equity firm investing in growth stage companies. previously, was the co-founder of centera, the leading provider of wireless base stations. prior to that, he worked at national semiconductor, where he led the development and commercialization of internet networking products. he has been -- he has a degree in management from stanford, an ms from the university of central florida, and a degree in electrical engineering from the indian institute technology, bombay. he has authored numerous publications and has over 50 u.s. patents. >> thank you for organizing this panel discussion, and thank you, everybody, for graciously being here today. it is my great honor to introduce an incredibly distinguished panel of industrial luminaries. let me start with timothy, simon, and jeanette. tim is a professor at the stanford business school where he teaches a very popular class on this service via in fact, i have taken your class, and you bring in some incredible speakers and make it very entertaining. jim also has a distinguished caree

we also think with our partners maryland national capital parts and planning that they're going to assist in bringing people out to the site so that we can have regular tours and visits to the site and explaining what's going on and what's being found and of course it will be changing almost daily with the excavation and more and more of the wreck exposed. >> this is pretty narrow up here, this section. eventually it will really start narrowing down in another mile or so. >> we don't plan to extract the ship to recover a ship wreck and we can do that but to conserve it is a very long and drawn out process that can take decades and also be a very expensive process as well, too. our plans are to document, recover the artifacts that can be put on exhibit or studied and interpreted to thoroughly map and document the ship wreck, to do some disaassembly we'll have to remove the deck to get into parts of the ship wreck and remove interior planks to get to the frames to map the shape of the ship, so our plan is a little damage to the hull as possible but to do what's necessary to get a good thoro

the national capital planning commission and it's agency partners have developed two senate works, one is the memorials and museums master plan and second the monumental core frame work plan and -- memorials and museums master plan achieved two important goals, first it identified a reserve area where no new memorials may be built. congress codified the reserve in the 2003 commemorative works clarification and revision act. ncpc strongly supports the reserve policy which maintains the mall's open spaces and existing memorial landscapes that are admired and enjoyed by americans today. the master plan significantly also identifies 100 potential sites for future memorials and museums throughout washington, d.c. this strategy does a few things, it protects the mall, it help s response sorries visual their -- all four quadrants of the city. the master plan has successfully guided six projects to other locations off of the mall, including memorials honoring eisenhower, the u.s. air force, the victims of communism, the victims of man-made ukrainian -- now let me speak to the monumental core f

capital of missouri. with the help of our mediacom partners, we'll take you to this city as we explore the rich and varied history in a town named after thomas jefferson. coming up in a moment, a visit to the historic missouri state penitentiary. >> this prison right here, at one time in 1967, this was called the bloodiest 47 acres in america. >> then in about 30 minutes, a look at the capital building and how the history of the state is presented inside its walls. >> the painting here is called "the social history of missouri," it's how missouri came to be by everyday people. >> and to round out our hour, we travel from the capital building over to the governor's mansion. >> the home was built in 1871, cost about $75,000. >> all this and more as c-span and mediacom bring you to jefferson city, missouri. >> the presence i feel as i walk through these walls, looking and touching these massive stone walls, walls that are smooth and cold to the touch, walls of lost history of killings and such. in the dim light, a specter, i feel, walking and stalking, oh, yes, it is real. for this is a place where dead men