S p was down almost 5 . Five days down after hitting alltime highs last week. Bob pisani, where will we see green again . Hopefully soon. Shinzo abe was talking about everything was up since he came to office. Lets take a look at full screen. Some call it fiscal fear fatigue. Volume on the light side as a lot of people deciding to wait things out here. Big caps down but the small cap, russell 2000 hit an historic intraday high. Tenyear treasury yield down. Take a look at walmart, bloomberg had a story out in the middle of the day that they were cutting orders to suppliers because of rising inventories. Our Courtney Reagan talked to walmart and said story was misleading. Stock came back a bit. Some retailers, consumer names in the Dow Jones Industrial average moved down on that, including nike, p g and home depot. Alcatel, a story on reuters, you see that pop up there. Thank you so much. As you can see, i have the stylish new google glass glasses. Very cool to be looking in one eye at computer screen, asking if i want to take pictures, if i want to go to the web. Well talk more about these google glass right now. More on the stock market as we talk with my special cohost for the hour, google executive chairman eric schmidt is with me. Good to see you. Thank you, maria. The google glass. I want to talk about google in a minute but i also want your take on the broader economy. Thank you for being here for the entire hour. Well talk about the economy, as well as google. Big bets google has in the pipeline and i know innovation is continuing. First lets get your take on the economy. We keep hearing this slow burn, slow, anemic pace of recovery. What is it going to take to move the needle . People think its a fast recovery, especially if youre in europe, not recovering at all. Basically because the private sector is doing the right thing. Growing economy, growing trade. The real story is innovation. Lots and lots of things coming up in american firms. We should be proud of what america is doing here. When we spoke a few days ago, you said i think i have a plan that can actually create jobs. You talked about smaller and midcap. Everybody thinks Big Companies create jobs. They dont on a net basis. Small companies dont on a net basis. Jobs are created by new, fastgrowing companies. Think venture companies, entrepreneur companies. We have a problem in america, in fact in the western world, that the jobless problem is not getting solved. Jobs get produced by Companies Like tech industry, the energy field, Companies Like in biotech. We need to get the barrierings out of their way so they can grow. Where do you think that innovation is, in that sector of the economy . These smaller to mid companies that are are not necessarily private this is where america shines. We have venture capital, appropriate financing. More importantly we have Research Universities for coming ideas. There are revolutionary ideas coming for manufacturing materials. Advanced manufacturing. Lots of job shortages in america today. If you want to figure out what to get educated about, advanced manufacturing, being an accountant, programmer, well need those jobs for a long time. I spoke to someone who owns an auto shop. You can eat off the floor. Its run by technology. We cant get workers to run the complicated machines because theyre not well educated enough. We have an education crisis in america. We have the labor and people who want those jobs. Theyre not educated well enough and the jobs exist. Why dont we have the skill sets required . It is an education problem but should the onus be on the private sector or government to teach and educate our people with the right skill sets . Government is largely an educational monopoly and we see highway well that works. In germany, german corporations see it as their responsibility to do job training and education for imploung l young people in their communities. Maybe corporations need to help as well. We have a revolution going on with online education. Over the next few years well have lots of choices how to educate people. Maybe sitting in a classroom for eight hours a day is not the best way for you to learn. Maybe you learn in a different way. Well find out. Thats a good point. I mean, you know, ive been hot on this idea of hoeealth care merging with technology. All these new devices, sensors in bloodstream to get ahead of the disease. Is that innovation . Where else . Thats certainly one. The other is your mobile device will have a sensor, wont prick you, it will monitor your body and say, time to go to the hospital. Better yet, it will call the doctor and the doctor will say, get to the hospital now. That Remote Monitoring will save lives. I love this idea. Particularly as were living longer, people want to age in their home. Have you the toolgz to do things and you dont have to go the hospitals. And hospitals are unsafe for a number of reasons. With the revolution in dna, dna sequencing will go down to about 100 a sequence. Its currently 1300. People can figure out whats wrong with you and get the precise solution for you. Say you have a precancerous growth or cancer problem, maybe current drugs dont work for you but a different one was. We can give you exactly what the problem is. We have a hard time moving the needle on job creation. Is it washington getting in the way . Is it focus on Large Companies versus Small Companies . Why is it to difficult . I think in washington to do much in this political cal climate is a strategic mistake. The activity in washington is at an alltime low. Lets look at alternative models. The cities, educators, Technology Companies trying to solve this problem. What we need is more entrepreneurs. Lets bring more entrepreneurs in from other countries. Let the current ones stay in the country and not kick them out because of visa issues. Lets make sure incumbents dont block entry of new choices. Consumer mindset of america will create the demand for these jobs and companies will grow. Most companies are underhiring. Theyre spending on capital because its a good investment but they dont hire the people unless they need to. We need to fix that. You touched on two things that we can actually see a bridge. Government and business work together. That is policy. Thats immigration policy. Of course. Keep the smart people here, no matter where shocking strat sgi. Keep them in america. Have them pay taxes in america. Nobrainer. As well as tax policy, which is an uncertain for companies. Corporations need predictable tax policy. Its also important that capital tax rates be low to encourage the kind of Capital Investment that creates these kinds of jobs. You can create a very, very proemployment environment. Ultimately when i speak with politicians, what they want to see is they want to see the job problem solved. When people have jobs, Everything Else gets better. Health is better, Mental Health is better. People are happier. People vote for incumbents, which is what politicians care about. We need to solve this jobs problem. Its roughly 9 across the board. In certain areas its 22 . By the way, its much worse in europe. Imagine being a greek young person with 75 unemployment. What a tragedy. Riots in the street. We dont want that here. No wonder we are seeing riots in the street with the youth unemployment issue in europe right now. All this innovation happening in technology. Sort of the horse left the stable in terms of privacy. We know that. I have to get your take on this nsa scandal. The nsa claims its doing what the law says. Seems to me the nsa is watching that amount of domestic material. You have to wonder if thats the broad mission. We dont really know if all the snowden revelations are true. If they are true, the nsa has been watching an awful lot of activity on the internet. Google asked, we want to legally tell you how much the courts ask us for information. We cant even legally answer that question. I think we would be stronger as a country with more transparency about what were doing. I really believe that. I disagree with the security folks who say, we cant tell people that. They already know. Were stronger when people know whats going on and theyre helping us make it better. Its also not fair to a company like google to put you out there as if youre not giving the information when youre being told you cannot discuss this. First place, with the courts were not allowed to discuss it and the law is clear. We cant talk about it. There were other allegations, for example, that the nsa had a direct connection to google. Those were all false. We actually looked to make sure that isnt true. If they had one, it would be illegal and im sure they dont. Well continue our conversation throughout the hour with eric schmidt. Send us an email or tweet. Tell us what you want to hear from eric. Coming up, much more with the google executive chairman. Dont miss my exclusive interview with John Chambers about one of their latest developments that can transform the entire Netflix Library in seconds, he says. Eric also has questions for John Chambers. And the way to get the best real estate listing is a super secret website that only a handful of people have access to. Well let you in on that secret listing. Im sure eric schmidt knows that website. Do you know that . I do. He said he does. Well be right back. Welcome back. Easy money from early information. Eamon javers broke the story yesterday that some traders in chicago may have profited from early access to last weeks surprise decision by the fed to continue the stimulus and not taper. Eamon joins us with more developments here. What can you tell us . Thats right, maria. Yesterday the Federal Reserve told us theyre contacting news organizations to go over the rules for the embargo of Federal Reserve information in the wake of an unusual pattern of trading in chicago after last weeks taper incidence. We contacted a lot of news organizations that were in that room. Several of them have said to us they did not transmit anything early out of that room. Two of them, however, have not answered that question directly. Let me give you their statements. Market News International says they follow the rules set by the fed as we do with all data releases. However, they would not answer a question from us when we asked them if they transmitted any information, any data, out of that lockup room before 2 00 last week. Similarly, dow jones also saying, we will continue to work with the fed cooperatively to report in full accordance with their desires. But dow jones also would not answer a question on the record from us about whether or not they transmitted any data out of that lockup room before 2 p. M. Last week. Thompson reuters has now respond stod our question here. They say they did not transmit any anything out of that room. One of the Big Questions is, did anybody break the rules . And what were what were the rules at all . The Federal Reserve still hasnt answered our questions about what the rules were for that lockup last week. That is the question. I want to it seems unfair to the traders not in new york. Were debating something over a couple thousands of a second. Seems like you synchronize the clocks in San Francisco and chicago so nobody has an advantage. Seems like the notion of having a single place is an outdated idea. What do you think about that, eamon . One of the things that might be a possibility here is that one of these News Services actually released it internally in their own servers, moved the information to chicago, simultaneously released it in chicago and new york. I guess the question how did they even get that . The question is well, they got it in the lockup room. They got it from the fed in advance. They took from the lockup room and they released it simultaneously, which is the right way to make sure everyone has exactly the same information at the same time. Highspeed markets, they need to be of course. Of course. The question is those waiting for the good Old Fashioned speed of light to bring it a few milliseconds later, are they disadvantaged. You can answer that question by saying everyone is going to release it at exactly 2 00 plus 0. 02 of a second. Everyone cannot operate on the same market if theyre not operating on the same exact time. You can make this analysis, too. Back in the 90s when research was so in the morning everybody had their morning call. If Goldman Sachs of the world would upgrade ibm, those that paid for the research got that research and the stock got away from you if you wanted to buy it later in the day. Youre saying there shouldnt be this lockup period. It seems these are instantaneous markets. We somewhere exactly synchronized clocks. Everyone should get the exact information at the exact microsecond. Google operates in the nanosecond. You just have to get the policy right. How come the fed gave it to those news organizations and locked it up . Wouldnt it be better to do what eric is saying . Yeah. The argument from the Federal Reserve is, we need to give it to reporters in advance so they can have at least ten minutes to read this very complicated document before they write stories or appear or television to talk about it so they know what theyre talking about when they go on air. The Federal Reserve says they want a single point of release. Theyre arguing the opposite of what eric schmidt is telling you. Which is they want it to be released from washington and disseminate at the speed of telecommunications from around the world starting in washington. What schmidt is saying is exactly the opposite. Its washingtons ent center of the world. That means by the time it gets to hong kong its really a mistake. Of course its a mistake. If you really want a level playing field, Everybody Needs to get that at same time. Eamon, thank you very much. Final word . I was going to say, is the fed then responsible for releasing all that information in hong kong and in other countries around the world . I mean, that well, its info coming from the fed. The info is coming from the fed. How do they preposition it in hong kong so it goes out at the same time. That would be a tricky thing but fascinating question. No, no. I mean, these problems can be solved by computers relatively easily. The question of humans, giving them something ten minutes ahead, youll have a leak. As did you. Thats the real problem. Eamon, thank you very much. Much more ahead with my special cohost for the hour, googles eric schmidt. Also on deck cisco system chairman John Chambers. Well talk about ciscos new product, the ability to pump up products and what john is seeing on the global stage. And amazons john bezo talks about the kindle fire. 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And you hear your voice . Oh, its exciting [ man ] touchdown confirmed. Were safe on mars. [ cheers and applause ] hi. [ baby fussing ] you really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . Welcome back. Amazon has gone from book seller to a virtual onestop shopping destination. Ceo jeff bezo sat down with jon fortt who has the latest. Amazon is pitching kindle fire, paying 139 basics for nearly 400 bucks for a fullsize tablet. For people who want the very best hardware, thats the right tablet to buy. The 8. 9 inch form factor is very useful for doing a bunch of things like browsing the web and email and of course movies and tv shows look great on it. And then we have for people who are, you know, buying a tablet for the family, who are the 139 kindle fire hd has the same processing as our high end had last year and same display that our high end had last year. At 139d its at a price breakthrough. Bezos says amazon organized three all day book clubs. I wanted to know which three books he had Senior Leaders read. He gave me the list. Effective executive by peter druker, Innovative Solution by Clayton Christiansen and the goal. Interesting list, maria. It really is. Im here with eric schmidt, one of bezos favorite books is also one of yours. Christiansens book. Its fant. What do you make of jeff bezos . He does this over and over again. He figureses out how to make a Consumer Product at a low price point and shake up the market. Hes done it again. This will affect the tablet. Ipad has been the leader for a long time. These things will do well. Again, he gets to make money. Not just from selling them at cost, plus or minus, but he makes money by selling media on top of it. I think wall street sometimes gets frustrated that the earnings are not necessarily keeping up with expectations. Feels like he doesnt care about profit as much as generating revenue. People in