David Einhorn, Greenlight Capital founder, & president discusses donating his $4.3 million haul in a non-profit poker tournament for education, with Michael Brown, City Year co-founder & CEO.
Video and transcript below:
joining us on set in a specialsquawk exclusive is poker extraordinaire david einhorn andmichael brown, co-founder and ceo of citi year, named one ofamerica's best leaders. thank you for being here. poker world you won but you got bluffed at the very end there. can we talk about it? what happened? it wasn't at the very end. the very end i lost on a hand, the other guy had a little better hand than i did but there was a hand where i misplayed, i should have checked and called what he was doing and he outplayed me. have you ever won that much money? you put up a million bucks. no, i've never won that much money. this was probably the biggestpoker prize tournament ever. and how often do you play poker?in the underground things in the city or what are you doing? all together including going to charity events, playing with my kids at thanksgiving and stuff like that, maybe ten times a year. so in these tapes of you playing you're wearing a red jacket which is the citi year icon amazing charity. we did something two or three years ago. a citi year breakfast. city year is like an urbanpeace corps, recruit young adults ages 17 to 24 giving a year of full time service serving the highest poverty schools in the country helping to address the high school dropout crisis. every year about a million students drop out of high school. that's the bad news. the economic effects are staggering, it costs the country over about $1.5 trillion over the next decade about the 10 million students that will drop out absent intervention. we know where the young people are. 12% of the high schools in the country produce 50% of the dropouts and we know what they need. city year corps members go into the schools from 7:00 in the morning until 6:00 at night and keep them back on track. we'll say yes to a lot more schools and students that need city year. i want to thank david publicly, an incredible achievement, 48 ayers and to come in third and most were professional poker players. what are you doing behind thesunglasses? do they read cards? you can't see through the cards with those. actually i had a hard time with the glare. there was a lot of tv and the lights were there. i couldn't see the cards so i got the sunglasses to cut down on the glare. you don't want to look around what was that card there. so you're very interested in education. do you have a position on schoolchoice, charter schools? what is interesting about city year and i think the charter schools are great, there's high performing charter schools and you know how to education anybody. we've proven that which makes education a solvable problem butwhat's really good about city year is whereas the charterschools it's conflicted. it's the teachers unions on one side and new rules over here and new schools. i think in order to fix thepublic education problem, we have to fix the existing publicschools, and what's exciting about city year is it's not offensive to teachers unions. it's not offensive to any of the existing constituencies that are sort of behind the failing public schools.it's just an added resource that comes in. what if they're failingbecause of the unions? i don't want to ruffle anyone's feathers but what if that's the root cause to fix the public education system you need to deal with -- schools that fail should beallowed to fail. that that is the problem, not that you're not going to offend them. it's able to improve the culture within the school. it's built to make the environment nicer for the kids,gives the kids a better opportunity to succeed within the school.i went to one of the breakfasts and i literally cried. it was unbelievable. it was extraordinary. while we have here we have to talk about markets and what's going on in the economy. you wrote a piece about two months ago i want to say and used this metaphor about the jelly doughnut, the fed as the jelly doughnut in terms of stimulus and what they're doing. where do you think we are now? jelly doughnut number 41. and there's a point where you have too many jelly doughnuts. we're going to qe5 at this point, you think this is doing nothing? i think it's actually counter onproductive, yeah. i think having the very, very low zero rates is depressing to people. i think it deprives savers ofreasonable incomes and ability to forecast a reasonable income and it cuts down on consumption. i think all of the stimulus, it drives up food prices, it drives up oil prices and lowers standards of living and ability to spend on other things.if you had a conversation with ben bernanke? raise the interest rates to o2%r 3% level something like that. you have a number of stock picks going on right now going into earnings season.you expect this to be a good period? a bad period? what are you thinking? i'm hoping it's a good period for our lungs. i kind of walked into that. you have been a big bull on apple. yes. are you still there? absolutely. stock's come down a little pit. it's coming back up. on a relative basis. it fluctuates. we're not in apple for a quarter. we're two, three years into the apple investment and the way it seems headed it's likely we'll be there for a good while longer. you had a big short on green mountain, which