i'm mark simone filling in for larry kudlow.a dire warning from the congressional budget office tonight. unless congress addresses the end of the year tax cuts, a recession could grip washington. senator udall, if there were no republicans, just democrats, what is it you'd want to enact? >> well, that's never going to happen with all due respect to my republican friends but i would want to put bowles-simpson in place immediately. i was a businessman all of my life, i know you have to have a balance sheet. usa inc. is no different. we're going to simplify the tax rates, generate more revenue. we make the right kind of investments in the short term in infrastructure and our people and it leads to innovation and our economy. >> if i couldn't get re-elected bowles-simpson, i could live with that. >> there are lot of things that people object to with bowles-simpson. your thoughts on that. >> it sounds great to put forward simpson-bowles but the way this process works is the house has shown they're willing to be held accountable. they

. >> mark simone, four years later -- >> what are you complaining about? >> four years later, mark simone -- >> yeah. >> when do you reckon obama will take possession of this economy? and i want to say one thing again today. the gdp report at 1.9% and for the last year, it's 2.0%. these are very poor numbers, mark. tomorrow we get a new jobs report that could well be the third straight anemic jobs report. now, seems to me the president should be telling folks what he's going to do about this, not what happened in massachusetts in his imagination ten years ago. >> if i were him, i would stick to distractions. let me explain, clear up that misleading 47th in the nation in job creation. by the end of romney's term in his fourth year, they were at full employment according to the definition by the u.s. government. 4.7% is full employment. and that's why they were lower in job creation. there were no more jobs to create, everybody was employed. that's why they were 4.7% -- >> that's phoney -- his job creation was no better than any of the other states -- >> i'm

mark has a sector perform rating on cisco. guys, great to have you with us, simon outperform rating. at this point why do you stick by this stock when they have said low single-digit revenue growth, well short of what the street was expecting at large. >> yeah, certainly the sequential trend for the july quarter was disappointing, the year-over-year growth is certainly less than what we've been expecting, but we see cisco as an incredible value and a company with a solid strategy. so selling here feels like a classic selling at the bottom. we think that service provider vertical and the datacenter market for them will be good markets for the rest of the year. the weakness from europe is certainly a concern, but not quite sure that's going to be a material down side to the current estimates. mark. >> simon raises a good. selling right now may not seem like the right thing. at the same time sow see catalysts that can break the sort of concentration by analysts in investors this morning on weakness and better price, weakness in europe? >> i think there's no denying th

gabby giffords was in beverly hills last night with her husband astronaut mark kelly the simon wiesenthalter award them a medal of valor. she left congress to continue her recovery after being shot in the head. six people decide. the wiesenthal center gave out medals of valor to holocaust survive eastern tuskegee airmen. >>> -- fire burned 10 ayers curse along high 128 -- -- >>> gusty winds a problem in southern california and it contributed to major damage in the antelope valley. cars were damaged. more coming up on "good morning america" at 7:00. >>> everything outside is going to be affected by the wind today. good morning. already affected santa rosa gusting up to 22 still has the fastest want gusts now half moon bay 21 west wind sustained at 18 sfo north wind 12 novato everybody else 10 miles per hour calm in oakland napa and livermore and mountain view. 7:00 this3sq morning 48 napa 49 san jose everybody else low to mid 50s sunny start. lunch hour going outside doing a walk or a little cafe mid to upper 50s along the coast into san francisco, low to mid 60s bay shore low to mid 70s c

. >> we brought together cnn's best time, dan simon in menlo park, california, where mark zuckerberg remotely rang the bell friday. new york nasdaq in new york and the new york stock exchange where they have been talking to traders. three trading we'll ask whether it's for you. crying shapiro, investor with the collaborative fund and an early facebook investor, and matt mccall president of penn financial group. >> dan, let's start with you. let's leave the stock aside for a second. that's a big topic. it is about the company. thousands turned out at menlo park friday morning to see mark zuckerberg kick off the first trading day. talk about the mood there and how it happened. what happened to the mood when the stock failed to soar like expected? >> first of all, as you can imagine silicon valley was buzzing over this stock debut for weeks. so much anticipation across the country. here you can feel the environment. you can feel the electricity. i did speak to a facebook executive about mark zuckerberg ringing the bell. he said the energy in there was off the charts. it felt like a rock

back to sue and simon on "power lunch." >> thank you, mandy. see you at 2:00. markrd in order to take facebook to the next level mainly because eight years ago harvard didn't have a tech fund in place to seed student start-ups. all that has changed very much as you might imagine with the vc firm, nea, and the experiment fund. let's meet three entrepreneurs backed by the fund. mier left harvard in his junior year before launching push 44. a harvard grad and ceo jim and michael shader graduates later this month. welcome to all of you. i'm going to start with you, ma. it started on the harvard campus. what are your thoughts on a day like today? >> i'm very excited. i think it's validation that the social media and people love sharing, which is very important for a company like ours. >> what do you hope for your future? i mean, do you think that you could have that type of success? what are your hopes for your particular projects? >> yeah. i'm working very hard to push 44 to make sure that we are successful and able to make referrals kind of part of the social media mai

dan simon at facebook headquarters in menlo park, california, where mark zuckerberg remotely rang the opening bell on the nasdaq on friday. alison kosik, and flees a taylor at the new york stock exchange where she's been talking to traders. and three men who invest for a living, we'll ask them if facebook is a good investment for you. ed reilly, ted shapiro, an early facebook investor, and matt mccall, president of the penn financial group. >> dan, let's start with you. let's leave the stock aside for a second. that's a big topic, but this is about the company. it was amazing to see thousands turn out in menlo park to see mark zuckerberg kick off facebook's first public trading day. talk about the mood there and how it happened. what happened to the mood when that stock failed to soar like expected? >> well, first of all, as you can imagine, still conn valley was buzzing over this stock debut for weeks. so much anticipation, all across the country. but here, you know, you could just feel the environment. you could feel the electricity. i did speak to a facebook executive about mark zu

dan simon at facebook headquarters in menlo park, california. thousands turned out to see marknasdaq's bell. ned riley who was nervous from the start of all the attention facebook is getting. it's not impossible a stock doesn't go up on the first day of the ipo. one of the most talked-about stocks and ipos of all time. >> it is a surprise. there was concern small investors would jump in here then get in the way of a run away freight train. you could almost argue maybe it's been priced perfectly because the stock came out, debuted at $38. right now it's unchanged $38.01. we'll see what happens. there are 400 million shares of stock trading today that wasn't available the day before. >> it's accelerating right now. microsoft on a given day might trade 50 million shares. apple might trade 25 million. we are probably at about 500 million shares trading hands. that caused a major problem at the start of trade and all through the trading day. alison kosik is at the nasdaq market site where the stock is listed. nothing but trouble when it came to trading. >> a messy debut for facebook

simon -- [inaudible] who formulated this theory essentially said -- he didn't put it quite this way -- but he essentially said it was the mark of a civilized nation that incomes had become more equal. but as you can see, we started becoming uncivilized in 1979. here you see that the trend, the income share of the top 1% which has doubled since 1979 is growing faster the higher up the income scale you go. so it's really being driven by the richest of the rich. when i say income share, i mean the the percentage of the nation's collective income that is going to a particular slice of that income, in this case the top 1% or as the occupy wall street crowd have taught us to say, simply the 1%. now, during the recession between 2007 and 2009, you heard some commentary and even afterwards from some people saying, well, why is anybody talking about income inequality? the problem is over. we are seeing a reversal of the trend. the top 1% are losing income share. and, um, the answer was that recessions are always bad for the rich e people because they are -- the richest people because they are heavily into the market, but the fact pat

by the way simon is also a former campaign adviser to president bill clinton and mark thiessen, at therise institute and former speech writer for president george w. bush. let me start with you, mark, you were a speech writer for president bush, so that's the guy that advises the president on language and message and so on. >> sure. megyn: this is our third segment talking about the president's attempt to find a campaign slogan that resonates. does it matter? president clinton, simon's guy, had if the -- it's the economy stupid when he ran the first time, that was very effective, barack obama had hope and change in 2008. do we care whether it's forward or something else in 2012? >> what matters is that it sets the tone of the campaign, what your theme is going to be. hope and change was uplifting, and moving, and people really -- they really were moved by it. obama has now tried several iterations, he's tried winning the future, he's tried we can't wait, and now apparently he's settled on romney is a vampire is his strategy! megyn: i've heard that! catchy! >> well, i mean, that's what

mark zuckerberg, you get to do stuff like this. he rang the bell at the nasdaq exchange in new york but did it remotely from his company's headquarters in menlo park, california. that's where dan simonriveting to watch all those opening shots. mark zuckerberg and cheryl san berg hugging him. is the mood still as high as it was during that brace or is there disappointment there was this whimperish day or if everyone is business as usual? >> i did speak to a facebook executive a short time ago. didn't have much of a reaction to the stock price. he did describe the mood inside as energetic, a lot of excitement. now it's more subdued. people are going back to work or going home after pulling an all-neither. they have a hack-a-on this last night. this is an opportunity for facebook employees to get together to come up with new ideas for the site. they did that all last night. then at 6:00 in the morning they gathered in the main facebook court yard where mark zuckerberg rang that bell with senior executives. >> i remember one of the products to come out one of these famous hack-a-thon was the "like" feature. explain as we were looking at those pictures of the opening bell and jib shots o

simon is there. we saw hundreds of employees showing up to watch mark zuckerberg ring that opening bell. there is a lot of celebration going on there and elsewhere, right? >> reporter: this is a once in a generation event in silicon valley. the valley has been buzzing over this for the past few weeks. it was a momentous event that we saw here a couple of hours ago as we saw mark zuckerberg ring the nasdaq bell. it is 8:00 a.m. local time. you normally have people coming to work. instead they were leaving. they were here all night drinking red bull having a hackathon. interesting they did it the night before trading began to send a message to the world that we want to keep their eye on the ball and create new products that users will enjoy. you have people leaving headquarters right now. it has been quite an occasion. >> dan simon, thanks so much. let's check in with ali velshi in new york. we are seeing the price at $38. is that something we should believe? unchanged right now? >> reporter: it will change. we have three indications. they get three sources of information. the stock is abo

mark zuckerberg one of the most rich people in the world. and at 20 years old he is half of the age of the average s&p 500 ceo. but there and simonows us that he has grown up a lot since launching facebook from his dorm room at harvard. >> i am glad this is not live. >> it was 2006, two years after launching facebook from his harvard dormitory. a nervous and camera shy mark zuckerberg ... >> i am not on today. >> he sat down for a cnn interview. >> can you say your name and pronounces the that no one messes it up? >> yes, it is mark zuckerberg. >> what is your title? >> founder and ceo. >> our producer had to ask the most basic questions. >> how did the company start? >> it cannot start as a company. i was a sophomore at harvard. and i guess that about i have never really been asked how the company was started. >> how did facebook start? >> now i am embarrassed ... you would think that i would have been asked that. >> speaking was he may have been rough around the edges but it was clear he had a laser light focused of what he wanted facebook to become. >> we view the site as an information directly. it helps you better understand

dan simon is live at the facebook mothership in menlo park, california, where workers are marking the occasion by working all night long. seriously, dan, what's up with that? >> it's 2:00 in the morning here and we're wide awake. they're having a hack a thon, an opportunity for facebook employees to basically do what they do best -- build, design, create. they do this periodically, an interesting public relations move as we're about to begin the trading of the stock. what they want to do is send a message to the world that they built this company on building stuff. so that's what they're doing. they posted pictures to the website showing what's going on inside some of these rooms. in terms of the fundamental challenge facing facebook in the future, it's exactly that. continuing to build services that people like. i want you to listen to silicon valley venture capitalist greg gretsch. >> what they're going to run into the next year, two years as they go public is the quarterly focus that wall street's going to put on them. the question will be in the coming years whether or not that qu

the founder and ceo mark zuckerberg is now a multi-billionaire and many employees today became instant millionaires. our silicon valley correspondent dan simon joins us now live from facebook headquarters. dan, how did it go out there today? >> reporter: i spoke to a facebook executive a short time ago. he said the enthusiasm, the energy was just off the charts inside that facebook square when mark zuckerberg rang the bell. right now it is a little more subdude. a lot of people have gone home and gone to sleep after pulling an all-nighter. they had a hack-a-thon. this is where people get together and try to come up with new ideas for facebook. they met in the courtyard about 6:00 this morning. people here in silicon valley are also a bit divided about this stock. if you look at google during this stage when they went public, they were growing at 90% a year. facebook growing at 35% to 40% a year. there's been so much anticipation for the stock here in silicon valley. however, people have been divided in terms of if people should buy it. in terms of what we're seeing here right now, we're seeing a full parking lot of cars so there are still a

mark zuckerberg is about to get even richer and he's only 28 years old. today is his birthday, by the way. dan simonped change the way the world communicates. >> gosh, okay. i'm glad this isn't live. >> reporter: it was about 2006, a nervous and camera shy mark zuckerberg. i'm sorry k i start that a different way? i'm like so not on today. >> mark, can you just say your name and pronounce it so nobody messes it off? >> it's mark zuckerberg. >> how would you like to be identified? your title? >> founder and ceo. >> reporter: outside silicon valley, our interviewer had to ask the most basic of questions. >> how did you start the company. >> it didn't start as a company, i was a sophomore at harvard. i have never really been asked how the company was started before. >> reporter: how did face book start? >> i'm a little embarrassed. you would think that i would have been asked that like a ton of times. >> reporter: speaking wise, he may have been rough around the edges, but even then, it was clear zuckerberg had a laser like focus on what he wanted facebook to become. >> it helps you understand about th

buy the two year payable in deutsche marks at the time of maturity and you get the capital appreciation in the foreign currency. simonure i tread over t. i read it over the weekend. there are people out there that are doing this. this is one of the investment trading strategies related to what is going to be a summer of a lot of noise out of europe. >> so the gain you would get potentially by taking koideutsc marks over the defunction euros would be about -- >> some think it's a free floating currency. the deutsche mark could have a 30% to 40% capital appreciation. this is a speculative call option, but we are going to have this all summer in terms of what's going to happen in europe. i thought it was fascinating. >> that's out of the orbit, not just out of the box. >> we know from the jpmorgan situation people were on the other side of the train. this is how you make outsized alpha gains. >> people know black swans now exist and this would be another one. >> absolutely. >> interesting stuff. meantime the euro continues to trade right around below 1.25. haven't seen that in quite some time. news that china may not ta

simon goes in depth on its extraordinary rise. >> reporter: it may be the biggest, but facebook wasn't the first social network. >> thank you, mark. >> reporter: to understand its rise, you also shave to look at the missed opportunities. >> facebook has focused like a laser on the quality of the product. >> reporter: something that wasn't done by rival sites like myspace and friendster according to industry insiders. >> friendster's problem was performance. when their usage spiked, they had -- their page load times went from almost instantaneous to taking 30, 40 seconds. users wouldn't put up with that. >> reporter: the fall of myspace was even more pronounced. rupert murdoch bought the site in 2005 for $580 million. last year it sold for $35 million. >> those two companies both thought of themselves more as sort of fashion and truly social businesses whereas facebook through zuckerberg thought of itself as a company using technology to make the world more social. he didn't think of it and he still doesn't think of it as a quote, unquote social network. >> across what servers? >> reporter: as the competition floundered, zuckerber

simon. >> reporter: -- >> i'm glad this isn't out live. >> reporter: 2006 about two years after launching facebook from his harvard dorm. a nervous and camera shy mark ze zuckerberg. >> can i start that a different way? >> reporter: sits down for a cnn interview. mark, can just say your name and pronounce it so nobody messes it it up and we have it on tape? >> sure. it's mark zuckerberg. >> reporter: how would you like to be identified? >> founder and ceo. >> reporter: outside of silicon valley he was such an unknown quantity our producer had to ask the most basic of questions. >> how did the company start? >> it dent start at a company. i was a sophomore at harvard and -- and we needed to -- i guess -- i haven't really been asked how the company was started before. >> how did facebook start? good answer. >> i'm a little embarrassed. you would think that i would have been asked that like a ton of times! >> reporter: speaking wise? he may have been rough around the edges. but even then, it was clear zuckerberg had a laser-like focus of what he wanted facebook to become. >> we view the site as sort of an information directory. it helps you better unde

. >> simon hobbs here with a look at what's coming up in the ten as well. >> we're going to have so much fun. the marks down, but we'll obviously keep a tag on that. >> we'll have a guy who with can make 40% over bank of america sales stocks. now, that interfew is going to be play play what you haired. the head of jive software will be here and also cinema graph. over to you. >> gold bars. that will be great. thank you vhf much. more gone began myers talks briefly about the markts today. >> we have seen some bottoming in the education, lately. >> i think people are hoping for that again today. i don't know if you're going to get that. for me rickets if interesting thing you're going to get is from the election refolate tea it locked lochhis woad goy to be the movement and it's taken a couple days to wash this out. i think the equity market has been waiting to take a queue from the bond marketed. it's nowiven indication of growing the pegs many people is weeks away. >> exactly. and that is putting alile fear into the time phrase. >> when we come back, financials takes the brunt of the pain. we'll signed

mark zuckerberg's famous hoodie. what people don't know is the effect it would have on the u.s. economy. jane wells is live in palo alto looking at the hoodie economy. going, jane. >> simonuilding which now houses a company that sells, yes, hoodies. and this, america, is the new power suit. the $148 executive pinstripe hoodie giving new meaning to leadership style. a good gift for mark zuckerberg on this his 28th birthday? he is known to be a man of modest tastes, drives an acura, lives in a relatively modest house. has one unusual potentially expensive interest is hunting. here's a photo that he calls the great goat roast of 2009. maybe get him a cross bow. i asked for gift ideas on twitter. here's what i got. for his 2th birthday a 28% tax rate but he doesn't have that. a hoodie tux he'd do, shoes with laces? maturity from real don johnson, a shirt and tie from handicapper bill and a break from deckerberg's hood. here in silicon valley, if you look around, most tech workers are surprised anyone cares what zuckerberg wears. >> doesn't follow the crowd. i don't think he should. >> doesn't seem like he's done anything conventionally. i doesn't see why there's a big proble