Continuing his policies. Yellen is expected to be confirmed by the senate, although she has her critics on capitol hill. Senator corker will be our special guests coming up at 8 00 a. M. Eastern time. The other major story out of washington, it is day night of the Government Shutdown. President obama and Speaker Boehner trading words once again yesterday. A very briefly phone call where they basically figured out they had nothing to say to each other. The uncertainty was enough to send stocks down about 160 points for the dow industrials. Futures are indicating a bit of a bounceback. Do i dow features up by about 48 points. We will see what happens as we get into the trading day. It is the very shortterm treasuries that people have been watching very closely. Were going to talk more about this with mark a little later this hour. Andrew. Thank you. On this very topic, a number of individuals in countries and organizations continue to speak out about the situation in washington. The bank of japan is warning this would create a severe blow to the Global Economy. So far, a lot of people saying that, but it hasnt happened yet. We will see. Notable house budget chairman paul ryan is heading pretty interesting oped in todays wall street journal. Hes calling for president obama to negotiate on debt ceiling deals as president reagan and clinton did with their opponents. Ryan argues for entitlement reform in exchange for the appeal of the sequester cuts. He writes in part this, for my democratic colleagues, the Discretionary Spending levels are a major concern. And the truth is, theres a better way to cut spending. We could provide relief from the Discretionary Spending levels in the budget control act in exchange for Structural Reforms to entitlement programs. The former Vice President has been been speaking publicly about the current fiscal debate in washington. Its pointing out it does not mention obama care. What do you make of that, mr. Kernen . I wasnt thinking about that. I know the president didnt talk about i dont think there was a single question yesterday about obama care. I am not necessarily an optimist at times. Its still morning in america, joe. Dont forget that. Its always morning in america. And it started with sperling and raise it a little after that. The new york times, this is the paper of record, andrew, as you tell me the every day. He raised the possibly, the president did, or raising the debt limit in the shortterm to allow negotiations. Whats the difference if they insist on negotiations before doing it or doing it for a period of time to usher in a period of negotiations . Paul ryan is make raising some interest questions. The only reason the president would do it shortterm is if the if thats what Everyone Wants to do. You probably barely scratch the surface of what needs to be done. Why would you do that next week and not this week . Because both sides are entrenched in their positions where the president says im not going to do this with i dont know which met for to use. Theyre all bad when you talk about the president. Bombs stopped to people. But hes not going to be extorted is what hes saying. And the republicans would say, were going to address these longterm issues. I dont see any way to do it unless you get six senators on the republican side to go along with the senate bill which forces boehner to say, all right, go ahead and vote on it here and you get 20 republicans in the house. Maybe that will work. I dont know. Youd have to begin that conversation youd have to if youre the president , youre only going to engage in that conversation and decide youre willing to postpone the debt ceiling if you believe theres something to be done in that negotiation. He does, though. As soon as you raise it, im willing to do it in earnest. Why dont you do it for a period theres not that much difference. Its kind of like everybody gets the win if you do it that way. If you get there. The only thing is, the last time we did it, we set up a Super Committee and gave them a certain amount of time. Something did happen and sometimes thats the way it works. The sequester did happen and we did cut the deficit in half. Now the president , every time he speaks he says i cut the deficit in half. Interesting that paul ryan is like, look, the sequester is the wrong way to do it. We can find a smarter way. I dont know who to listen to on that side. A bunch of them have vying for i havent heard from ryan in a while. I dont know. In corporates, we have to talk yellen. Andrew, you couldnt sleep all night, im sure. All night. And what a surprise. You know what we need to do . I said this in makeup. Weve talked for six months about what would happen. And we dont really we probably do the same stuff as bernanke. And now we can talk about what will happen. And now weve got another six months. I did learn some things this morning. Did you know she was a brooklyn native . I did. She went to brown university, then yale as graduate school. I have one stat for you, which is my favorite. Everybody shes a compromiser. She fought successfully with alan greenspan, 1996. There was only two votes about lowering rates, right . No. It was actually about a regulation. Only twice was there a battle on the fed against something that he wanted. And she was the won who won. We found that out, too, that she likes regulation a lot, right . She thinks regulation is necessary. There will be some people on the very far left, i think theyre going to like her, anyway, who may argue and i think theyre going to get some of this that you missed the financial crisis, too. Right . She was out there. But we all did. The other thing is, the market is up today. Fill her up. We few she was coming. But it would because qe will never end, theoretically at this point. Actually, there are some people who said this is good news for bonds and stocks. But the reason i said that didnt count, because we knew that was going to be her, except for one day. Donald kohn. I feel bad for the people that said they were hearing that. Why do you think the dow fierchs i think the dow futures are up because theres a glimmer of hope that maybe we that would work. For me, its fine. And then you do you know, you negotiate just even pretend you get something about longterm rates. You really dont want to go to washington next week. I dont want to go to walk next week. And i dont want i dont like, you know, 147 when were finally the market is finally doing okay and i dont want you to you start seeing what it means to not have the government around. There was a story yesterday in the Washington Post about a woman, a 29yearold, who cant get into the cancer trial treatments. For 10 million that a hedge fund manager, hes given for head start did you hear about the salmonella outbreak . Because of the food centers . In chicken and theres only a third of i think twothirds have been furloughed. So now theres a big issue of how are they going to deal with that . I had dinner last night with an old friend of mine from college who is a federal prosecutor. I thought you were going to say you ate chicken. No. Both of them with federal prosecutors and working and dont get paid. It was interesting because they were talking about they have mortgage payments and things and they said we dont get a check to do this. Was this a nobody that you had dinner with . What, a really great old friend you still have time for your old friends . I have to reevaluate. I thought if it wasnt charlie rose or some major taught leader yes came over, we had sushi. I said youre not getting paid right now, i have to pay for the sushi. You know what that means . What . Now that i said it here, youre not going to be able to expense it. I bet you have the receipt no. Are you kidding me . I used something called seamless web. Do you know what that is . Did you use wave to find the restaurant . Something like 7 of new york expense accounts are now using seamless, too. I dont know about expense accounts, you can order the food on your iphone. On my way home yesterday, i ordered the food and it came. It is Something Like 7 of all court accounts in new york are going seamless, which is more than mcdonalds or starbucks. Which is interesting. I dont know what that is. I do know did you see the tigers . Not at the zoo. We have to bring john hard woodz into the this conversation. John, we could talk about a lot of things. Why dont we put it into this perspective im going so tart with three words, andrew. Yes. Joe is right. On which piece . On the fact that we are beginning to see the glimmer of where this thing gets unstuck. That is that the president , in his News Conference, talked about a shortterm extension. He talked about adding a list of things that they want to negotiate on, allowing reid and boehner to work out some sort of negotiating process. And, yeah, he had a lot of tough words in his News Conference, but that was the take away, to me. And boehner had his News Conference, he also had tough words, but he said basically the conversation has to start right now. Thats consistent with the solution that we were just talking about. And i think that we are starting to get to a zone where they can they can figure their way out of this. And i talked to one of the speakers afterwards and i said, am i right about where this thing is going . And the response was possibly. Screwed up any which way, i do think that joe is correct to the glimmering of a situation. I assume that harry reid is going to try to pass this clean limit debt limit bill. If they pull that down and that effort stops, youll know they probably talk about this alternative. I was hopeful yesterday. The one thing that about the obama administration, they are they stay on message. And anything that they say, you know, unless its biden, its probably not an accident, or kerry, i guess. But in this case, when he said that, john, he knows exactly what hes doing. That wasnt something he thought of right on the spur of the moment. Theres a side to i want to know what if this does happen, it gets fixed, im back to its crazy stand. Im going for the bengals game. Were very cloes up to do deadli deadli deadline already. Maybe we should just talk about yellen or something. Do we get through the weekend before this conversation happens in earnest . Which conversation . About the solution . Yes. Slew the negotiating process or the actual negotiations . Monday, tuesday. Okay. 9 00 and 7 00. Is there a take away in terms of the timing related to all this . You know, you have to do it sometime. Theyre running out of time. I think they finally decided they just need to get it done. Will there be an argument about how dodd this shortte shortterm sure. And the speaker is going to get attacked from the right for this solution while hes making it. Youre going to hear from and thats what i thought his tough talk yesterday is protecting himself against people on the right saying hes selling out, hes not getting us anything. And the president will get attacked because it will say that they can do it again in three months or six months or whatever and it doesnt really yeah. But thats part of the deal. Both sides will be a basis no matter what. And he talked in his News Conference about unconditional surrender. Now you dont want to think about that too long. Its surrender to agree not to harm it, youre pleading guilty to that whole extortion thing. But set that aside. The speaker will be in a position to say, i didnt surrender. We have budget talks. The administration is you cannot dictate the end of the talks before the talks begin. So as long as the administration can say to their own side, we have not and to itself, really, for the purpose of the precedent for future president s, as long as they can say they agreed to raise it and we didnt give them a concession, we gave them a process concession, i think thats an exit ramp that they can take. I think if it really did happen, i think be careful what you wish for boous because historically hed be the first president where it happened. And even though you sort of have the blame cast on the republicans, thats not a way to do it. And its in no ones interest to let this happen when it comes right down to it. Honestly, no serious person really wants theres some in the tea party who think its take it out for a spin, its not going to be that big of deal. But no serious person in either party wants it to happen. You saw the times piece, theres a bunch of guys that say it only costs this much money to do this, this guy from north carolina, we always have enough money to pay our debt service because of the tax revenues. Thats like Walking Around with a match around a gas can and saying, i wonder how close you can get to this gas can. Or Walking Around with nitroglycerin and saying, no, i wont stumble. John harwood. Feel better . A little better. Hes optimistic. Ill take it. Coming up, were going to talk about why jpmorgan could be reducing business clients. May actually be a good thing, not a bad thing. Plus, if you have a Million Dollars or so to spend, naeem yam marcus has the holiday wish list for you. Squawk box comes back right after this. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Time now for the executive edge. This is a daily segment foep focused on giving Business Leaders a leg up. Payday lenders, check cashers and certain car dealerships. The bank has launched an internal review of its commercial lending clients and its said to be looking to tighten controls in a period of tightened regulatory scrutiny. Guys, this may not be incredibly new news. Its timely with whats going on. But i think jamie dimon has been talking about this since february with regulators starting to crackdown. Its the fun Companies Like pawnsh pawnshops, you see why theyre located and stuff and the sleezy car dealers. You know who got his line cut off, fortunately . Who is that . Sol. He was dealing with jpmorgan. Im still in the middle of that series, so i can talk about sol. You think of walter white as a client . Of sol. And i think sol is the middleman. Better for jamie to get out of that business. Completely, right. And not have anything to do with sol. Did you see how much money this is . What is it, a couple hundred Million Dollars or something . Yeah. And someone wrote about a blog post that its about hurting the economy, that banks cut off these people off. The shadow Banking Industry has gotten bigger and bigger. And you do wonder how people who are on the edges of society are going to be able to get credit at this point. This is always a question, when things are too loose, you worry about who theyre lenning to. Its a legitimate issue. Thats definitely a part of the overall economy. Probably a significant part. Right. And its gotten to be a bigger part. I read something about the shadow banking system, how much its groan over the last five years. And the question is who picks that up. Its not just that the big falls apart. Walking dead, coming up against this weekend. You have to get on board. I have to get on board. The orange is the new blue is your thing. No. And im slightly giving up on im told the three and four are better than the one and two. Im going to waste too much time here. Guess what i watched . What . Blacklist. And i liked it. And its on nbc. Its unbelievable. James spater. So hes been great in everything. Hes pretty in pink he was great. He was great on seinfeld. Im behind on this because the voice goes right up and to it. Mike, the guy that was the main guys wife that was close to the family, he is one of the stars of blacklist, which is always confusing to me. Its like, i thought you were on homeland why are you on blacklist. But he is. Spater, remember him in the Jack Nicholson werewolf movie. Hes good. He is. All things d reporting that apple will hold a fall ipad event on october 22nd. Among the highlights is the fifth generation ipad. Its expected to feature a thinner, lighter design, an improved camera. No word on whether these new devices will incorporate that touch i. D. Fingerprint sensor, the one that recently debuted on the iphone 5s. I guess this is good news. New products out there just in time for the holidays. The question is, is that revolutionary . And im told its smaller and lighter. Thinner and lighter, yes. I thought we learned they dont need to be. They dont need to be. People buy them, anyway. I would upgrade my ipad right now. But the mini, which you have, they wont go to the retina screen. I thought they would. Theres a rumor out there that they may or may not be able to get it going this time. I heard its the opposite. Do you think if they get the fingerprint down to where its perfect, do you think everyone will upgrade to a fingerprint thing . Every will copy or try to. But will you need one . Will everyone want one . Its going the draekz. I spoke to someone in the business who said they were anxious about the fingerprint business. They said people you may not be happy ultimately that your b biometric notice is floating around. Who is this, someone we all know . I will tell you during a commercial break. Viewers, youre left out. Anyway, it is never too early to start thinking about holiday shopping. If you were looking for Something Special for that person who hates all, check out the newly released nae erelease christmas book. The most straf gaf selection is a giant distinguish that emerges from an underground storage place, speakers and the price is 1. 5 million. Theres a diamond for backside 1. 8 million. And then a cruise off the coast of nambia, where your diamond was mined from the osha yab floor. For the kids, how about an edible gingerbread life sized play house for 15,000. We have juan of those in our house. Right. Really . This is how we shop for christmas at my house. One of those, one of those. A lot how much of this stuff bsh its like a pr thing. You know, two dinners with the ceos is like 800,000 less than that if you have to have dinner twice. The diamond is focus. Whats a dinner . Yeah, right. There is a fall conthing which i was looking at. This is gross conspicuous consumption, though. If you were out in the hamptons is a Hedge Fund