to understand that, because when i open the newspaper every day, i see stories about, for example, nortel, the canadian communications company, which was reported in "the journal" a few weeks to have had an advanced persistent threat, basically wholesale theft of its business information and data for over a decade going to another country. that's in the "wall street journal." that's a serious issue. many of us red about the stock net. i might think to myself, well, the outcome of what i read is a good outcome, but it raises the question could that be done to us? even at a less sophisticated level, the rise of hack groups, like anonymous, that look to target enterprises by interrupting them or penetrating them and releasing proprietary information is becoming an increasing problem. so you really have to either have your head in the sand to think it's not an ongoing, serious economic and security issue, or you have to simply view it those as not being serious concerns. i have to say at a time that we worry about whether we're losing jobs and losing competitively in the globe, at a minimum w

breaking into computers at the department of defense and los alamos national laboratory, nasa and nortel canadian banks. >> yeah. all that happened. >> at age 20, assange was arrested by the australian federal police and eventually pled guilty to multiple counts of computer hacking. he managed to get off with no jail time because the judge concluded that he hadn't stolen any information or done any damage. is that still one of your primary skills? >> not really. unfortunately, i've been sort of, you know, promoted up into management. so i don't get to do that so much. but i know the terrain, which means i know what is possible. for example, bill gates could program but he certainly doesn't program anymore. but he knows what is possible for other people to do. >> except that assange is not bill gates, and wikileaks is not microsoft. the shoestring operation that created all the havoc has no permanent offices and is headquartered wherever assange happens to be. wikileaks is a small nonprofit organization with a handful of employees, a secret cadre of international programmers, and a legion

stunning declines over the years in research in motion, nokia, and, yes, the late and unlamented nortel be the next name on that list of losers? the company has a tremendous amount of debt and tremendous amount of capital that was foolishly spent on buying back shares at higher prices. considerably higher. the previous ceo leo apotheker spent money like a drunken sailor. including an overpay for an information management software company autonomy that really drained the corporate coffers, and right before he was kicked out, he announced that hewlett-packard was debating abandoning the personal computer business. that was great for business, right? why should i get my computer for them, they're going to discontinue it? you have a company that looks like food for the crows. seems like hewlett-packard is about to be carved up by ibm, oracle, s.a.p., accenture, and the consulting side, and by dell on the low cost asian companies and the pc and printing side. now under meg whitman, the new ceo. she has a pristine reputation, but whitman's actual operating history at her previous employer eba

a story in the "wall street journal" comes out about nortel being the victim of chinese hackers overe so embeded into the internal computer networks of nortel it was almost impossible to tell they were there. all they did is they siphoned information off of these computers from top executives including the ceo and just data dumped it back to shanghai. >> fntd have been able to i've. i want to emphasize china can be a major force of good if they lower rates and talk about dmoirng business with europe. obviously they are the growth engine and been stalling. >> it comes on a week where the reports of merkel going the chinese and going to cic and saying we would love four guys to buy some spanish or italian debt and cic saying no interest. >> they are all in. we tend to think, why don't they come in. they've been in. so are the middle eastern countries. these countries have been on the hook for a while. >> the story for 2011 for the shanghai index how much i want has fallen. nice reversal in that trend. >> do you believe it? >> the data and the way people are trying to read tea leaves wi

megyn: given the fact that they're hacking us, they're hacking major american corporations, i mean, nortel had a bunch of problems allegedly, hearings on capitol hill over this, you know, the veto of the u.n. resolution condemning syria's massacre of its own people just happened last weekend. should we be doing all this with the chinese vice president coming over here, meeting with president obama, meeting with vice president joe biden, meeting with hillary clinton, meeting with gop and other congressional leaders on wednesday, i mean, it's an all access tour. >> it's an all access tour. it's interesting how netanyahu was treated just a few years ago. the president of the united states, basically, turned his back on netanyahu. why is it we treat israel with disdain so often and others, those who may not be so friendly to us, in fact, we roll out the red carpet for, and the world understands and knows that. i think we have a very weak president back in washington, d.c., and this president if he doesn't strengthen himself, if he doesn't take over the presidency and own it, then, in fact, the

i have to go back to nortel to come up with a similar scandal. and a lot of analysts had said, suntrust. look, don't worry about this. people at home, accounting irregularities equals sell. a lot of time you'll get a verphone that will come back to life. >> and the reason they would be pulling out is because they're taking a lot of diamond shares for cash. but the short sellers here, jim, i know they get a hard time. they did a lot of work here. i remember nine months ago talking to somebody who had done an enormous amount of work and ultimately their thesis seems to have been proved correct. many of the analysts who weighed in here time and again because they're listening to management are looking not particular -- >> i asked mr. mendez repeatedly to come on the show during this period. >> didn't make your heart grow fonder? >> no, because he built this company away from walnuts, pop secret, kettle chips, starting to take real aisle share in many supermarkets. blunting some of what pepsi's doing with frito-lay, and sayona sayonara. >> kablooey.

. >> when talked to xi jinping, the news recently about nortel that was hacked. google left china.inking about those issues? >> well first of all, let me say with regard to xi jinping, you have someone who is a strong, confident leader and that's good for china and it's good for the united states. because the chinese leadership is going to be tested, really tested over the next ten years. because the demands, they can be tested domestically and globally. and domestically, the demands of the chinese people growing all the time as is the leadership challenge of managing the kinds of change they need to manage. you know on a massive scale. and to emphasize, place a big emphasis on consumption rather than exports. they need to increase income across the entire population and keep that growing, that's a huge challenge. >> you mentioned fox con and labor relations in china. china is a huge economy. and wages are going, they're pressing wages up quickly. wages went up 23% last year. and so they've got a lot of work to do. they know that their country is, is too big and too complex right n

expert in this for more than 20 years, working at companies such as motel and hewlett-packard -- nortelkard. i want to thank you for coming today. we are going to do a number of these and events. this is just the first. we think this -- we are going to be an important voice here in washington. >> thank you. good morning everybody. the question i had during the 2000 recession is what is the success pattern of a growth company? the recession, we know what happened. i wanted to be a better ceo of a growth company. i started doing research. the odds of failure are greater than the odds of success. little did i think i would end up writing a book. having come from the can see and company, i found that i wanted to find that a recent pattern. i wanted to find something that others could follow. little did i expect to be here today. i would like to introduce my panel. they are all high-growth company ceos of different sizes. on my right is the president of a process consultant, running a firm at an energy industry. we are applying top gun flight techniques to the safety of the energy industry.

studying growth and is a leading expert in this space for more than 20 years, working a company such as norteletworks and hewlett-packard, along with mckinsey and company. again, i want to thank you for coming today. we are going to do a number of these events through the course of the year. this is just the first, but we think we will be very, very important voice in washington as we engage in debates throughout 2012, and beyond. so, dave. >> and. good morning, everybody. the question i had during the 2000 recession is what is truly the success pattern of a growth company. the rising tides and in recession we know what happened. i wanted to be a better ceo of a growth company and i started to do research on how to beat the odds of failure. because the odds of failure are greater than the odds of success. little did i think i would end up writing a book and meetings and very audible high-growth company ceos along the way. so how do you come from mckinsey and company? i've found that i wanted to find a quantitative research pattern, and i want to find something that others to follow, including

to understand that because when i open the newspaper every day, i see stories about, for example, nortel which was reported in the journal a few weeks ago who had an advanced persistent threat basically wholesale theft of its business system and data for over a decade. going to another country. and that's in the "wall street journal." that is a serious issue. many of us read about it. now, i might think to myself, the outcome of what i read is a good outcome but it certainly raises the question, could that be done to us? and even at a less level the right of hackist like anonymous and by penetrating them and releasing popritary information is a priority for them. you either have to have your head in the stand to think it's not an among serious economic and security issue or you have to simply view those as not being serious concerns and i have to say at a time when we worry about whether we're losing jobs and losing competitively in the globe at a minimum we should insist on a fair fight meaning that we don't get our stuff stolen from us. so i think the problem is very real. now, here's