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Sun Microsystems co-founder Scott McNealy on the impact of Federal Reserve and White House policies on the U.S. economy and markets.
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Horrible stocks are -- -- -- -- lots of billionaires are starting to bail Warren -- just cutting his stake in consumer product stocks like at this point 1%.
George Soros selling more than a billion shares of bank stocks billionaire Sun Microsystems -- That have found a job -- think about that Scott big deal on what the heck is going on here now about is that frissora wanted to bad view because.
You saw a lot of this coming -- you said that those with the money.
Mom would would would kind of be voting with their money what they're gonna do and an environment like says.
There that -- -- they're doing more than hedging their bets what's going on.
Well first of -- thanks for the compliment I'm not a billionaire by any -- -- -- you know save energy because many an IRS agent listens.
And no I'm kidding.
-- you're successful sources even about the government.
I have a lot of billionaire buddies you know there's -- -- five categories I think don't areas that are scaring folks who who wouldn't normally investing US equities number one.
Everybody talks about it is the -- -- its quantitative easing went easing which is turning you know QE2 is turning into our Titanic.
Fiscally and -- -- -- -- Harry away from that's got so many -- are concerned about that as well are now.
Well and that means they know inflation's coming look like -- freight train and anything denominated in US dollars assets or income stream.
Are getting devalued its attacks on every.
Every asset and income stream in America in the US dollars and by the way I call it trickle up poverty and it's a big deal and if you're invested in US equities.
And we're basically destroying the buying power.
And unfortunately it's it's very regressive because it doesn't.
Destroy my lifestyle but it destroys -- the bottom half the middle class they're lifestyle getting destroyed.
My my parents lifestyle and their nest eggs are getting destroyed by this.
QE quantitative easing is that it's a disaster and I think Smart investors are saying hey.
The race to the bottom this currency rates to the bottom is not a place to be.
Doesn't turn around I know I know you look at at what's going on in the market aggregates and we're racing to.
Maybe a new high and the doubt very soon.
-- and I both know that's a sense it back to where were five or six years ago it so it's actually a new high but but back to where we -- I've -- years ago.
But it is very sheltered bubble what is what extent -- -- lot of money off the sidelines billionaires successful guys.
Millionaires what had he seemed to be saying I'm not getting trapped in this thing but it right.
It's a bubble and nobody wants to get trapped in a bubble and it pops and you know who's gonna get nailed -- is his main street not Wall Street.
OK so so but what played second -- you envision what do you see happening what's going on country look.
Well -- I think that there's an enormous amount about policy there's another target about -- raising minimum wage if I'm an investor in the last.
That's the exact wrong thing to go do that's that's driving.
A more trickle up poverty it's driving more unemployment.
And you know the economic war the US vs other countries when people are out of work is just a disaster obamacare -- an enormous amount of under under employment outsourcing that sort of thing.
This whole concept of -- are we a redistribution.
Society or are we gonna just take care of the safety and what percentage of the society ought to be on the safety NET1 23%.
Or.
You know fifty million food stamp people it's and that's a real battle here on capitalism.
Vs socialism people -- -- to talk about it but I think.
Big time investors would rather invest in societies that are moving towards capitalism.
Were on a freight train.
Hurtling towards 50% of the GDP in the public sector.
And that's not what I would call a a strong capitalist society.
You know and and that drives this third issue that's got us here.
Anybody -- take a look at it and that huge chunks of the economy.
I call -- health care education housing and insurance are all being taken over in dominated and moved out of the private sector into what I call the government sector and the government sector it everybody knows operated efficiently and effectively.
And very corruptly and that's what leads me to another issue.
The US economy and government used to be the model of lack of corruption but when you look at what we have -- government sector unions that is inherently corrupt.
You look at pork barrel spending -- and using here it is the definition.
Of corrupt -- And they called crony capitalism I don't -- -- -- crony government realism.
And if you look at things like -- those are the poster child for that and then finally I just think the leadership.
In this country and no disrespect I love my country I am.
Communal I'm.
Very patriotic and invested American with the leadership here is just.
Not something that I respect the device in this.
The rhetoric from the noise all the rest of it I guess I've just a raging capitalists who believes in small government less regulation personal responsibility.
And lack of victimization.
And we don't need.
More than half of the country.
Being handled by the safety net which is basically not us a safety net it's eight bits of velcro it's -- fly paper we need a trampoline.
For the bottom 12 or 3% not -- they velcro.
Dependency.
Net for more than half of the country it's.
I look at all of that and in on no different than any -- who's trying to invest from US equities.
When your moving.
The direction that we're moving as a country is just not a place to be there are better currencies and better geography is to go invest in.
And we might be seeing them going on behind the scenes as we -- -- Scott -- -- -- very good seeing you my friend thank you very much.
Thank you Hart Scott -- me on par.
