Know, immelt goes over there, and the only way to get the deal done is the french minister says give me a piece of the action. It was less cash, but i dont know, i read some other commentary over the weekend that it would be less profitable near term right. Than it would have been for General Electric, but they wanted it badly, and General Electric and ge, jeff immelt, wanted to get the Ge Financial Services part of the business below 30 , and this does that in a much more but now your partner is the government. Right. Officially. I mean it was sort of unofficial to begin with. You know what, andrew, if you look at, and remember jeff, a republican yep. Signed on early to the Obama Administration because you have ge has to deal with governments everywhere. And people call it crony capitalism, but we certainly have this isnt the first government that ge has obviously dealt with. And you have to, especially when you are a big conglomerate getting a lot of government contracts and Everything Else. I mean, they get government contracts in europe and when in rome, or in paris, in this case. Right, but i guess cramers point is that the ge has been mired in this dont know whats going to happen. Right. Now that it has happened, you dont necessarily get the catchup, all of a sudden, and now it goes, okay, now were done, its out of the way, it was successful, now it goes up. Who knows . It hasnt been a horrible performer. 27 is a far cry but on a relative basis to what happened it was 6 bucks in 20082009. Got to 6, so. Right. I dont know why i know it so well. Maybe its because, well, they gave us we had a few shares when, obviously, ge owns nbc. And stocks are coming off another recordsetting week. The dow is now on its first sixday winning streak since december, but its been small moves, and we were talking about it last week. All the new records we set were only up 6 and weve had like 22 new highs. So, its been sort of incremental. Volatility is at historic lows. U. S. Equity futures this morning, we will have Jeremy Siegel on later to talk about all this, but thats sort of par for the course, up about six points premarket. Well see what else happened. I wasnt here friday, but i thought miller and morriss piece was spot on. We talked about the piece to great length. Well have a nice segment with kevin on later this week as a guest host. He is so smart. And of course, you will have mr. Druckenmiller coming up on the 16th, i believe. Coming up on the 16th. But it was just set forth in such clear fashion how, i mean, when all you can do is manipulate the Balance Sheet and not the income statement, the people that have the stuff are the ones that are going to participate, but it doesnt build for the future in terms of Capital Investment and growth. And thats why were mired he was not on to debate the point, but as you know, later in the broadcast, or maybe during commercial break, you came over and we talked about it. There is an argument to be made on the other side. Steves not talking to me, because i sent him the piece on friday. And you know, the entire piece, the link to it. And i said, you should memorize every word in this piece, and then i said, in fact, you should put it under your pillow, so maybe it can slowly seep into your brain. Osmosis. And he never answered. Never he comes out on the other side of it. And you know what else i did . I ccd santelli with what i sent liesman youre such an instigator. Santelli didnt take the bait, either, but it was a great piece. Were hearing more about it, because were still at 35 billion a month and were going to stay at zero forever. I thought what was interesting about the piece is its not just affecting the savers, its affecting everyone who cant get a job now, because theres no income statement. It is income inequality. Well, well talk about, when we get to soccer okay. Well talk about soccer in a little bit. A sport that you follow, that you will watch. I got into it. I mean, with it makes sense to me. Its egalitarian. Every country has a team. Its like obamas sport, because you know, all countries think theyre exceptional, but the United States with its football and its baseball, all countries are and you can tie. You dont have to win. You dont have to be so u. S. Centric to like soccer. Like, pekingeekingese favorite has got to be by far soccer. And it ends in ties where no one has to feel bad, no one earn success. Everyone feels like explain this to me, and file like i was watching zoo animals or something. What was it angered me that you were watching, and i tweeted because it was a jinx you were watching. You finally decided to watch the sport and look what happened. Can you and i asked you, what happened . You couldnt find beaches . It wasnt on any tv sets anywhere . Isnt it on netflix . What about steel magnolias . You can rent that there was a coldplay concert to go to. I was mack maing my jean shorts. We rehearsed this in makeup, this whole bit. What about fried green tomatoes . How about that new b when this guy scores, he starts sucking his thumb. Yeah. Thats because he had a baby, andrew. Then the other one puts the ball under his shirt, did you see this . As if theyre having a baby and theyre doing it for their baby . Is that whats happening . What is that . I will tell you one thing the guys sucking his thumb on the field. I think we were going to wait to talk about this, but after that first goal, which really hurt, and the guy, you know, it was a mistake with cameron, whatever his name is. Right. He made that and that hurt a lot. Swrrks so empathetic. No, that was very bad in the first five minutes. Yes, it was awful. The u. S. Took control of the game after that. They really did. They looked great. They had a lot of scoring opportunities. 15 seconds left at the end did you see the one bradley almost scored . Yep. And then, a lot of people were making fun of rinaldo. Now, watch this. My take on that, rinaldo is so good, i dont even know if that guy saw the ball. He bounced the ball off that guys head into the goal. It was so perfect. You think the guy that headed it in im exaggerating, but the pass was so perfect that all the guy had to do was and rinaldo, thats why hes that good. And hes hurt, probably. I think hes only at about 80 . Something that you may not know, if you werent watching that closely yesterday whats that . You know why his name is rinaldo . Tell me. His father named him that as a middle name. Thats his middle name. Huge fan of Ronald Reagan. Honest to god. Really . Yes, honest to god, even over in portugal. Well, in europe, he would be a fan. What about the guy who looked like mr. T. . Did you see him . I did. I saw people talking about that they stole his trademark or something. Its were all bandwagoners, you know what i mean . We dont even know what were watching. My view is that if we had been down 21 and then tied it in the end, wed be very happy. Wed be very happy to have four points. If they told you after the first two games, youd have four points versus ghana and portugal, wed be very happy. Your point is that germany and the u. S. Can just not even play. Im only listening to the commentators who say they could literally go to sleep on the field, just take a nap. Right. They could lie on the field and they would advance, which makes no sense. You know what the greatest thing about all this is, is that Nbc Sports Network now has premier soccer league, and every guy have you seen the commercial . They say who theyre playing for now and then who theyre in the premier League Playing for one of the teams, so at least were building up so long as they allow ties in the premier league, ive got a problem. Ties are fine. Ties are okay. You cant keep playing and playing now theres no more ties. You of all people, where no one has to feel like a winner or a loser. Its egalitarian, everybody wins. Theres no you know, i have two boys, twins, and they both want to beat each other. Theyll be running somewhere and someone wants to win and we try to let but competition and capitalism and someone wink and someone losing, we dont need that in this day in age. Its much better to have ties, andrew. I figure if anyone would love a tie. Right. Lets tell you whats going on in the middle east because we cant have a tie there we were supposed to do it later, but the producers wanted us we were going to do something different. In geopolitical news this morning, markets continue to pay close attention of course to the situation in iraq. Secretary of state john kerry is in baghdad today. He plans to press the prime minister, al maliki, to form a more inclusive government. During the weekend, sunni militants took strongholds along iraqs western border, strengthening supply routes from syria. I dont know if you saw Richard Engel tweeting about this this morning. Take a look at oil prices this morning based on some of this news over the weekend. Wti crude now stands at 107. 04. If you were maliki at this point, and you know, kerry shows up after i mean, maliki can read newspapers, right . He knows what we we basically pulled our support completely, not that he deserved support at this point, but i dont know. Its a mess. Then your paper, which ill talk about a little bit. I had a couple of things that irritated me over the weekend. You know, i always do have things to bring up mondays never a good day. But the front page sometimes is sort of okay. The unlikely to turn the theres no way theyre taking back these cities. Air strikes probably arent going to help that much. And its, you know, so i dont know what exactly but thats accurate, iraqs military unlikely to be seen as turning the tide. Thats what im saying. Youre giving the New York Times credit, thats good. Im saying its a piece thats depressing and probably true. The part that got me over the weekend i was irritated about was krugman. He whenever he wants to just look at something thats factual and say that its not true, hell just say its a zombie idea. So, and he uses that with us. Hes copyrighted zombie ideas, which, theyre ideas that seem like they may like capitalism is good and profit incentive is good. Those are zombie ideas. This was about the va. And this time, he was saying that the real disaster is the Current Health care system. The va is actually great, but now were hearing the zombie idea brought back up. Right. That the va is no good, where he says it provides great health care. But, so, hell look you right in the face and say, you know, orange is black or two plus two is five. Are you going to comment on your good friend, Hank Paulsons op ed piece . Well, i told you in makeup, it looks like another crisis. Hes totally overreacting to. This isnt the first this is the piece of hank paulson on the front page of the sunday review about Climate Change. Look, hes an environmentalist, obviously. And he has little st. Simons, a beautiful place, a bird sanctuary. But if you read the piece, he said right there, i dont know anything about science. Im a businessman, but the climatologists tell me this is true. Right. Its the kind of group think that everybody has right now. So, i dont hes just a good citizen. If someone told you that the world was going to end but thats where i am. I dont know the science. We have talked a lot about the science. The reason we werent going to talk about it, because its faithbased now. And you have faith in what the climatologists are saying, but you havent really looked at it yourself that closely. Im assuming that there has to be some chance that the carbon is a problem. Carbon dioxide. Carbon dioxide. Thats the whole thing. They dont even call it carbon dioxide, they call it carbon. And they dont call it Global Warming now, they call it Climate Change because it can go up or down. Andrew, its group think. Look up orwellian group think, and anyone that i apologize because im stuck in part of it. You know whats going to happen, pitch forks and people are going to be outside cnbc. Im not arguing anymore. Its faith hshqu babased. I dont argue with faith. You can have your faith, but i dont want them protesting outside, you know, the mobs, because any dissent is not tolerating. How much lower can u. S. Treasury yields go . Our next guest sees the tenyear hitting 2 . You see the report that the u. S. Has been cooling, that they fudged the numbers in the independent, they had a piece over the weekend about fudging numbers. Thats the piece you sent me. People have a lot of reason to want it to be true. Anyway, with us now is mark grant, managing director of southwest securities. Ill bet you mark is with me on this, but i am not going to get involved because weve got to talk about other things. Mark, did you like that druckenmiller piece last week . Did you see that . Well, i was in israel, so i didnt have an opportunity to see it. Im going to send it to you. Just basically that, you know, you keep rates this low and you, you know, keep the qe and you will engender a Balance Sheet recovery, but a Balance Sheet recovery, you know, i think 26 trillion additional wealth to the asset holders, but it doesnt really create jobs, it doesnt really its not earned success. Its government fiat that ends up, you know, it does raise animal spirits, i guess, and it does make people that own assets feel wealthier, but it really doesnt help in terms of investment, and we wont get it above 2 gdp using this method. I think thats probably right, joe. I mean, ive said all along since the beginning of the year that the quantitative easing and the tremendous addition of assets to the feds Balance Sheet helps wall street, helps businesses, but does very little for main street and for the general economy. Yeah, and small businesses. It helps big businesses, helps the people that own the assets, but i think only half the people in the country own stocks in any form, and only a third own houses. So, if youre not in either of those asset classes, it just leaves you behind, which is what weve been seeing. Thats right. I agree with that. All right, so now, everybodys come down. What are we going to do for the year . Everybodys come down from 3 again, but the stock market doesnt care. So, now were at 2 , 2. 25 . Were back to that . Is that good enough . Well, it depends. In my opinion, honestly, given where the european rates are for the sovereign debt, like france is about 1. 78 when i looked at it this morning, United States is 2. 6 on the tenyear, i think were going down to about 2 , and i think then that will have a significant effect on the main street economy. Borrowing costs are less. Mornings are less. It wont goodbye for the savers, but i think it will flow through to main street and to the general economy as a whole for the United States. So, i think its a very good positive. Hey, mark, front page of the Financial Times this morning, big story Central Banks to cut Debt Holdings move to protect against likely fed action. They say Central Banks plan to cut their exposure to longerterm debt to protect themselves from losses when the fed ends its bond buying this autumn. It says a survey of managers who own 6. 7 trillion worth of this stuff said they would likely adjust their portfolios in preparation of this tighter monetary supply. What does that ultimately mean . Well, i read the article this morning myself. I think that your some ways out from that. You have to look at the timeline. The fed is going to have about 4. 75 trillion. That equates to 39 of the u. S. Treasury public market. And i think taper, not taper, nothing is going to happen in terms of higher Interest Rates until the fed starts to deleverage, and i dont see that happening any time soon. Mm. Its like we just keep prodding along. I mean, its not the worst scenario that were in right now in terms of the stock market and people like us. Were doing pretty well. And i guess that will continue, or were talking about 17,000 on the dow right now. So, its almost like i dont want to call it goldilocks for people that own assets, but it just doesnt seem like were moving forward en masse as a country. And i think people feel that, and thats why theyre so disconsulate. Well, i think thats why the fed is going to push down Interest Rates. I mean, theyre not going to come out and say it. Youre not going to see hilsenrath make some announcement about it, but i think Interest Rates, the tenyears going to well next time, can you just say liesman instead of hilsenrath . Sure, liesman. Sorry. Sorry, steve. Thats cold, man. Thats cold. He knows what network were on, right . Yeah, 2 on the tenyear and that will be good for the country, and i think that will be a positive for the equity market, unless we have a big blowup in the middle east. You know, if youre steve, you might actually like it that way, because he doesnt want to be you dont want to appear to be doing press releases for yellen. [ laughter ] oh. He might have a problem. Im just saying. Its a little late for him to be worrying about that, i would say, andrew. I have utmost admiration for steves reporting. All right, really . Okay. That got a belly laugh out of me. All right, yeah, that would never happen. Mark, thank you for joining us. Coming up, from the drama on the field to the drama in the markets, the dow and s p 500 on quite a run. Records falling every day. Will it be full steam ahead, though, for investors going into july . Also, check this out, harleydavidson are going electric. The most iconic name in motorcycles rolling out project live wire, and its made its way to wall street on this fine summer morning, but does it still have the wow factor . Check it out when squawk box returns. E financial noise financial noise financial noise financial noise [ female announcer ] we love our smartphones. And now telcos using hp Big Data Solutions are feeling the love, too. 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