Skip to main content

tv   Your Money  CNN  August 4, 2013 12:00pm-1:01pm PDT

12:00 pm
manager joe girardi saying he will play in chicago against the white sox. major league baseball is expected to hand out suspensions in a doping scandal this week, possibly as early as tonight. and it had been reported that a-rod was reported to be one of the players affected. he has been playing in the minor leagues this week after an injury. all right, i'm fredricka. we'll see you later on. right now, time for "your money." glasses that can see, cars that drive themselves, balloons that provide internet access to the most remote corners of the earth. and, of course, the search engine so popular it's a verb. google. i sat down with google's executive chairman eric schmidt. not surprisingly he was showing off the latest foray into your digital lives, a new phone that listen dwrous. we were joined by dennis woodside as this is the first new phone to come out of
12:01 pm
motorola since google bought the company. i knew google was changing but i wanted to know how the chairman of the company would change the present course here at home. of course it has 11.5 million out of work and it comes at a time when leaders like eric schmidt say they've got the jobs, they just can't find u.s. workers capable of filling them. >> the core problem in america is the system is not producing right people. there's plenty of jobs for sophisticated manufacturing, technical training, either vocational training that's high end, running numerical control milling machines. they're in short supply. in oil and gas production, energy, technology is being held back by americans who can't do this. you fix it by offering more education. >> at what point will it ever be
12:02 pm
just not on the margin, that we're making high-tech things in the united states but there really will be a manufacturing sur jens especially in the consumer tech of big, big numbers of jobs? >> it's going to be hard for the very high volume commodity stuff. frankly it's easier to be done. those are not the high value jobs anyway. we're losing low value and gaining high value jobs. that's the great american story. it's completely dependent upon education and investment. we can do this. >> you've also said, here we have this trend in america where we bring in the best and brightest in the world. then you say, thanks, see you later. >> we don't call them aliens. we call them customers. the fact of the matter is it's such an asian market, it makes it better. it's more -- people to actually
12:03 pm
man the factories and bring in these skills. it's particularly stupid -- sorry -- particularly stupid to hire people and ship them out of countries where they take american jobs away. keep people with great skills who can start people. we're not doing both of those things. >> the easiest thing for us to do right now is keep all of these high-tech people who vn been trained so they create jobs and corporations in a second. >> switching gears, i want to ask you about privacy and information. we have a phone that you're talking about. i guess it's technically always on. we have google which barnltly maybe knows what i'm going to score for. it finishes my search request, knows everything going on in my
12:04 pm
household. how has the privacy story changed? should i be concerned about how much you know about me? >> we've had this question for more than a dekid from google and our answer is always the same. you have control over the information we have over you. you can have it delighted. you can search anonymously. you can chosen not to give us the information, but if you give it us to, wi can do a better job and think that's the natural answer. we can collect it but we forget it after a while and we've written it down. that's true with the moto x as well. they opt into the service. they don't have to have the service which we call touchless control. but if they want to have the hands-free experience, they listen for them. >> so much of the story is the negative information of too much information of your privacy. i know google for example, you
12:05 pm
know, the cdc. there's also a broader good to be able to analyze vast amounts of information even if you don't know who that information is from. >> good judgment matter. if you do, you do get the benefit of taking a look at what's going on in the world. you still know a lot about what you're doing that google doesn't know. and it's fan. we help you but our job is to make you more productive. >> i'm going ask you a question. i ask people at a company that just exploded. google now a verb, google is home, goinging is goinging. >> will there be another thing besides people making it a google instead of next act. >> we're hoping to make google a
12:06 pm
google. again, with your permission if we can anticipate the things you might want to know or some of the questions you may vl. we want go from you tells us wa you wain to know. than might make your life gipper. motoro motorola's product center says this foge is shaped on 0 years of hand research. heads up on the techs like me. i got the indepth news on it. google's hoping to make money off this phone, of course, but what about you. could you be cashing in as well. later you've seen him make hard core deals at his store in detroit. >> i'll given you the whole package, everything including two chain saws, four nail guns,
12:07 pm
golf clubs and a crowbar. >> sounds good. >> coming up, lessgo gold joins in new york. if you have not already asked your boss for a raise, watch this before do you it. n??tç7
12:08 pm
12:09 pm
12:10 pm
when captain kirk flipped over his communicator 45 years
12:11 pm
ago, no one imagined we would be doing this today without thinking about it. that's what happening, it disrupts our normal patterns. facebook, google, apple, they are the disruptive technology. they have changed the way we learn, face, share. investors who bet on the disruptive power of technology, well, they've been on an interesting ride so far this year. the tech-heavy index is up in 2013. google shares have outpaced those gains. google up 25%. apple has had a sour year, down 15%. and facebook may have finally, finally hit its stride. let me bring in zain asher.
12:12 pm
>> we saw it last year the stock did move like a rower coaster. mobile was up. take a listen. >> after slightly 4 months those who bought facebook shares at $38 a share have broken even. it was supplying poesd to be a home run, a can't miss investment for the lucky few able to get in on the ground floor, but within days the stock had sunk. but since then mark zuckerberg has gotten married, dipped his toe into politics and philanthropy signing to give away half of his earnings one day. it exceeded all expectations. shares have surged about 40% since the release. since the ipo, the company has
12:13 pm
worked to move adds from the side of the page, and into the news feed. >> people are seeing the adds the same way they see their friends' updates and that's what's gotten a lot of great responses. >> how effective they are depends on facebook's 1.1 million users. a year ago facebook was getting less than 15% of its ad revenue from its mobile users. today, it's 41%. enough to turn one of the biggest naysayers into the biggest. >> i was telling people to stay clear of the stock. however, as the company changed, as they moved to making money off mobile apps it bake an attractive stock. >> other new developments including games for a new platform and video ads have kept the momentum going.
12:14 pm
>> it's a stock i want to continue to watch. growth is accelerating and it really is one of the leaders of social networking. >> it's interesting it only hit $38 a share on wednesday very, very briefly and then closed. there's a feeling that some people have been waiting an entire year to break even may have, may have decided to sell. >> this is one reason why real people shouldn't buy ipos. the first year is when a company shows itself. you don't know what's under the hood until you see a car drive on the freeway. that's something matt mccall pointed out some time ago. there are some people who got in over the course of the year and they're up and they're holding facebook right now. >> right, right, right. september it was $17 a share. >> yeah. and if you bought it at $38, you were crying.
12:15 pm
coming up, hardcore pawns hit the gold. >> no deal? no deal? >> no deals on the t-shirts. >> no deals on the t-shirts. i have three of them. one, two, three. we didn't pay $60 for these. we didn't pay $40. up next, the secret to getting best price on everything.
12:16 pm
12:17 pm
12:18 pm
are you a good negotiator? aside from buying a car or buying at a flea market, it's something people don't have experience with. les gold, the star of "hard core pawn" on trutv, he showed me his skis firsthand. pay attention. skills can get you deals
12:19 pm
everywhere and may even help you get a raise at work. all right. i'm here in new york's soho and i'm here with les gold, the man who knows how to make a deal and get a deal. a man who knows how to negotiate. he's going to teach me real deals. i have money from cnn -- thank you, cnn. let's go. >> hi, how are you. >> we don't mean to bother you while you're on the phone. how much would you take for the bracelet? >> $20. >> that's it? you won't take 10 bucks? >> i'll give it to you for $15. >> $14.50. >> $15. >> $14.50. there you go. the value of everything is how much you're going to reach into your pocket for and make you pay. if i was going to buy you a gift today, what pleasure would you like? >> let's say this necklace.
12:20 pm
>> how much are those? >> $20. >> $20. >> why? what are they made out of? >> metal. gold plated. >> 20's your best deal? >> $20. >> how about $10. >> $15. >> $12. >> you're making a mistake. >> $13. >> okay. thank anniversary much. know when to walk away from the deal. you were confident. you asked a few questions and you were ready to walk away. sometimes in negotiating it's hard to be confident. >> that's the key. that's what i always stress in my book. be confident. make sure you understand. i wasn't emotional with it. it was a nice piece but be ready to walk away. >> you have it in your blood. for somebody who doesn't have it in their blood, how do you negotiate?
12:21 pm
when you're going to the boss and you're looking for a raise, do you give it or the boz? >> you. you give it. your boss doesn't know how to judge. nobody's going to give you anything until you ask for it. >> what i don't have is waffles. how much are they? >> $8. >> $8 for a waffle? >> they get imported from belgium. >> aren't you making them here? >> yeah. >> what's imported. >> the material. >> what material? >> the dough. >> what's the best deal of them? >> six of them for $30. >> $25. >> $30. >> $25. >> $26. >> i'm not that hungry. >> whoo! all right. we've got a little bit of money left. it's starting to rain. >> show me what you like. >> t-shirt.
12:22 pm
>> how much for the t-shirt? >> american apparel. sold in brooklyn. all american made. $20. >> wow. $20. how much would you take for three of them. >> $60. >> no deal? >> no deal. >> even if you pay cash? >> no deals on the t-shirts. >> why? >> they're made by a friend of his. >> can your friend -- can your friend make more? >> he can. >> yeah. we can -- if you want three -- >> i'll take three. >> we can do $45. >> wow. still a lot of money. how about $35. $35 for three. i'm not talking to you, be quiet. >> how about $40. >> 3 for $35. >> we can do $40. >> how about we split it. $37.50. >> $37.50. >> all right. perfect. thank you, guys. >> if we had paid the starting
12:23 pm
prices for everything we bought it would have cost us $128 but we paid only 68 bucks. "hard core pawn" airs on tuesday like cnn. if you want advice from les, his new book is "for what it's worth." >> it's about negotiating. >> it's a hot summer. i'm going to show you where the hottest housing markets are. that's next.
12:24 pm
12:25 pm
12:26 pm
162,000 jobs added in july. economists predicted a higher number and revisions showed $132,0 $132,000. it sounds good but 37,000 dropped out of the u.s. labor force. the u.s. economy lost about 9
12:27 pm
million and has gained back about 7 million. we know the jobs coming back aren't the same as those coming back. you can see retail jobs, leisure and hospitality. some of these jobs are jobs that do not create the kinds of wages and give the kinds of hours that we're used to. labor force participation, the lowest since 1978, what does that mean? it means those actively engaged tla bore market, those working or looking for work is the lowest shear since 1978. that's something we have to fix. the jobs report was big this week but there were other reports added to it. let's put 60 seconds on the money clock. it's money time. americans today are working less than their parents though not necessarily by choice. the big reason, the rise of part-time jobs. americans work 34 hour as week, four hours less than their parents. back in the 1860s, a manufacturing worker logged 62 hours a week. hey, today in china that's
12:28 pm
almost what an apple worker puts in to make iphones and ipads. apple's subcontractors don't always pay the workers for their overtime. they're sending a team to look into labor conditions and those overtime claims. china's labor force works overtime to make a reasonably priced phone. but americans might be breaking that soda habit anyway. new sales numbers from coca-cola, pepsi, and dr pepper show soda sales down last quarter. one area of the economy that's definitely not flat, housing. take a look at this. it is a good time to sell because home prices are rising. over the past year, it's up a
12:29 pm
whopping 12%. here are the hottest markets. prices are up 20 to 25% in some of these town towns. you can see. las vegas up 20%, atlanta, 20%. these are some of the cities with the biggest retail bubble pops. remember, all real estate is local. when yu look at new york, the new york area, prices like 3%. so big variations stlout the country. let's take a look at this. this is another really interesting point because you're not back wihere you started. people are saying, wait, it's not really benefiting me. if you bought a house in 2004, 2005, 2006 through 2008, you're not at peak. what's really interesting here is the average since world war ii, the average is 6.2%.
12:30 pm
this is still a good time to refinance if you can and still a good time to buy. coming up, the economy is adding jobs but a lot of them don't pay very well. fast food workers say they can't afford to live where they work. workers in several cities walked off the job this week demanding better pay. we're going to talk solutions next.
12:31 pm
12:32 pm
12:33 pm
record highs in the stock market. the biggest jump in home prices in seven years, but americans walking off the job, protesting what they call poverty wages. i'm christine romans and this is "your money." are we one america with two economies?
12:34 pm
america is the land of opportunity, right? >> you can choose policies that invest in our middle class and create new jobs and grow this economy so that everybody has a chance to succeed. >> that was 2008. four and a half years later, the president's supporters are wishing for a little less hope and a little more change. >> doing nothing doesn't help the middle class. >> so what's the president doing? four speeches in seven days. >> if folks in washington really want a grand bargain, how about a grand bargain for middle-class jobs? >> but while washington waits for a bargain, millions of american workers feel they're getting a raw deal. >> make our wages super size! >> fast food workers across the country say they can't afford to live where they work, walking off the job. the economy is adding new jobs but they pay less than the ones we lost during the row session.
12:35 pm
the president worries the growing income gap will fray the social gap. it's not as good as it seems. amazon adding 5,000 warehouse jobs. the workers take just over $24,000 a year. america may still be the land of opportunity but those opportunities still pay less and less. >> in brazil, grease, and france, we see them taking to the streets for, in short, a better life. can we see that kind of fervor in the united states? it's not exactly arab spring, don't get me wrong but many walked off in order to get better pay. austan goolsbee is the chairman of the economic advisers and ryan porter with "the new york times." austan could this be the beginning of a movement or is it going to fade just like occupy
12:36 pm
wall street before it? >> i think this is more likely to fade. you know, occupy wall street was more in the spirit of the protests in europe and the arab spring which are major gut-wrenching things, huge austerity, those things leading to mass protests. i think in this case you're seeing some of the natural tensions that arise as you're coming out of the recession. economy is better, and you want to see your wages go up. there's going to be a little tension. >> even when i look, i see bartenders, waitresses, homeheld aides. fast food workers. these are the low paying jobs. these are not ladder jobs. what's happening here and could you really see a tipping point? we're not seeing good jobs. >> yes, that is true.
12:37 pm
we've seen a lot of temp jobs and part-time jobs, although that is somewhat natural coming out of a deep down turn. ov overall in the country if that's all you lost, you'd see incomes falling pretty significantly, and overall incomes are basically flat. now, we do need to get incomes up for consumer spending to come back to anything lie normal levels. but if the growth rate is as slow as it's been, it's hard to see substantial improvement. >> let's look at the numbers. the cbo says average income for the top income was 1%, more than triple, could this be a permanent thing that know president, not the one before him or after him can reverse?
12:38 pm
>> well, i think this is going to take a long time to change. i wanted to speak to what austan said a moment ago. even though we can expect jobs and incomes to rise, wages are lower than they were. i would argue that it's a cyclical factor. we should see improvement but there's a phenomenon nonthat's been keeping wages down and you can see this in all sorts of statistics. if you look at the wage share, i mean what part of the national income goes to wages. that's at this lowest point since we started measuring the stuff in 1929. and by contrasting the shares going to profits is at a record high, again, going to 1929. so these are long-term trends. >> they are.
12:39 pm
we need jobs, austin that pay 25, 30 bucks an hour. that's what we need. how does the president do it? >> well, i mean the first thing is the economy doesn't do it. the president doesn't do it. i think the things that you've heard coming out of the administration this week in my opinion are how you do it thal . that is, how do you lay the ground work for it not just in the u.s. but around the world is increased skills. two, i think you have to. it's severely limiting the growth of our business, and you've got to emphasize free market and entrepreneurship because with innovation, that's always been the big driver of higher incomes. >> all right, guys. let's take a look at where jobs are being created. as we told you, 102,000 scored the bill. unemployment is still a problem.
12:40 pm
underemployment and low wages are crippling the middle class. i want to show you where the jobs are. they were mostly mid-range work. cutting back, payrolls. what kinds of jobs are cutting back? wow, look at that. you see right there. right there. hourly rates of $7.69 to $13.83. this is from 2010 to the second quarter of last year. here's the median hourly wages for the top five occupations with the most hires during the recovery, right. >> these are the people being hired during the recovery. $10, $9, $7, $10. this is it. what about the next few years. these jobs will be in high demand but most put a family of more. right here take look at this.
12:41 pm
registered nurses, that's a bright spot, but it takes extra schooling and testing to become one. there's an investment. are we becoming a united states of low wages or is this a rough step on the path to renew posterity. is it that simple? >> well yes and no. education is a necessary condition. we need to improve our education and expand our education. we mediaed to be the highest. we have slipped down those ranks and we need to get back up there, but there's also a question of what kind of education when we start investing in education. we invest very, very little in investing in very young kids. new research shows that's absolutely crucial for the new development. we need to rethink how much we
12:42 pm
do it. we can talk about early childhood, k through 12, but i sat down with google chairman eric schmidt this week and he said education is what's holding america hostage right now. >> in energy and technology is being held back by the lack of merge jts can do this. >> here's an example. it grew 13% from 2003 to 2012. jobs grew 13%. but degrees fell in the same period. austan, is the education fix, is that up to the government. is that up to the private sector? here i was with eric submit on the've of a report. he's saying we cannot find people, we account k not find qualified workers.
12:43 pm
>> you've got two issues going there. the first is there are skill sets where mismatch is the issue. but that is not the overwhelming reason that we have high unemployment in the united states. the overwhelming reason thus far is we had a horrible recession and there's not enough demand. the people remaining in the unemployment pool don't have the skills to match to the industries where we're growing. let's remember there is a data set that measures job vacancies as well as how moen ploem plea part-time there are. thus far it's only in particular sectors where this mismatch is true. to your question about whether it's government or private sector, i think the answer is both. if you look at the community college system in the u.s., it's actually one of the unsung heroings of our trains system and it's a shame we aren't
12:44 pm
investing more in that because it's place where they're trying to link employers to people who are trying to get jobs and the government is ininvolved but we could talk about this for hours. nice to see both of you. have a great weekend. coming up, the biggest guessing game in washington. who will replace this man? that's the feds chaer. you cannot believe the politics niend behind choosing his imbroimt.
12:45 pm
12:46 pm
12:47 pm
an alarming security flaw makes this scenario possible. cnn's laurie segal has more. laurie? >> hey, christine. smart tvs are in living rooms. here at this hacker's convention
12:48 pm
we've spoken to a lot of folks and they say there are major vulnerabilities. check it out. what's eye opening here. you watch tv but with this hack, your tv can watch you. show us how it works. >> one of the things we're able to do with the tv platform is abuse the browser where we could gain access to the camera built into the tv and what we can prove here is that with a little bit of extra code we can turn the camera on in your browser. >> wow. >> and while this is evident to you here where we've designed it that way, we can do it invisibly and have it run behind the web page you're looking at. >> what this means is i could be sitting here watching tv from my bedroom and you could be anywhere in the world looking at this image of me watching. >> yep. i could be sitting on a laptop in a cafe in paris and as long as i have access to it i can get
12:49 pm
into your tv. >> the scary thing about it is it doesn't give any indication that the camera's on and there's no l.e.d. that the cram is on. it could be watching you and you don't even know. >> what is a smart tv and why is it a playground? >> it's a computer. instead of being a tube and some other electronics, now it has a, browser and it has a lot of devices. we're running linux. >> the real danger is when people are using smart tvs for online banking, we can take a popular bank address and transfer that into a different id address so it may look like your bank but it's actually going to us. >> in a statement to cnn money, samsung says it takes consumer privacy very seriously. it can be turned so that the lens is cover order disabled by pushing the camera inside the bezel. the tv owner can also unplug the
12:50 pm
tv from the home network. as an added precaution we also suggest they use cryptic access what's the easiest fix? >> so one of the things to do with the smart tv and your laptops is just cover up the camera. post-it note over it. piece of tape and then skype with your family, take it off. >> christine, you know, samsung says they fixed this but as a customer it is not exactly that comforting when you think that a hacker had to go out and find the vuler in nblt order for samsung to wake up a little bit. coming up, the biggest guessing game in washington right now. who will replace this man?
12:51 pm
the 13s are going fast, time to get yours. current chevy truck owners can trade up to this chevy silverado all-star edition with a total value of $9,000.
12:52 pm
12:53 pm
12:54 pm
he or she is the most important person in the world. when it comes to your money. the chairman of the fed reserve. ben bernanke's second term wraps up at the end of january. maggie lake breaks down the big name battle. >> reporter: it is the guessing game in washington this summer. will it be janet yellin or larry summers to fill one of the
12:55 pm
world's most important and demanding jobs? the battle on both sides to influence the white house on the next federal reserve chairman has been intense and highly unusual. >> in the old days, if you campaigned for it or people on your behalf campaigned for it it looked bad. this whisper campaign on beof summers and yellen is new in washington. >> reporter: some democrats sent a letter to president obama urging him to pick yellen but summers has supporters in high places, too. tim geithner and bob reuben are both reportedly in his corner. one thing is certain. bernanke's shoes will be big ones to fill. wall street loves the tens of billions of stimulus he pumps into the economy each month. summers is skeptical and yellen is believed to be in favor. >> yellen is seen as continuity with bernanke. she's been at bernanke's side
12:56 pm
for the past two years as the vice chair. they coordinate policy together. >> reporter: yellen has deep respect inside the federal reserve. she is no stranger to politics, servesing a chairman of the white house economic council of advisers under bill clinton. while not as well-known on the international stage, she would be the first woman to lead the fed. summers on the other hand is a world renowned economics superstar. he was director of the national economic council under president obama and a former treasury secretary under president clinton and part of the team that "time" magazine called the committee to save the world in a financial crisis in the late '90s. but he does have baggage. >> summers is a controversial person. he is abrasive and brilliant. >> reporter: some say his brash style may not fit in the consensus building culture. he's falled for supporting deregulation and some feel
12:57 pm
trigger the most recent crisis. the debate is crucial to the financial markets but it could last a while. president obama is not expected to announce his choice for the fed until the fall. maggie lake, cnn, new york. >> and the president made it clear to democratic lawmakers that he hasn't decided who will replace ben ber bank. he had closed door meetings on wednesday. he defended larry summers as a possible pick and mentioned a third name, donald cohen. cohen is now a senior fellow at the brookings institute and spent 40 years at the fed and an adviser to ben bernanke in 2008. i want to bring in john berman. this is not a political position. the chairman of the federal reserve, this is not a political job but the politics, white hot politics in washington who gets the job. >> we have never seen anything like this. the chairman's normally filled by one of the most boring people
12:58 pm
in d.c. now a white-hot bottle with lobbying we have never seen it before. it's more like a shouting campaign. you have senators writing letters. editorial boards weighing in and most remarkably, you have the president out loud in front of members of congress defending someone he hasn't picked yet. it is really staggering here. until now it's been a one-sided debate with critics of larry summers and supporters of janet yellen being the loudest because most summers supporters are insiders that don't talk to the press very much. >> you hear people talking about the gender and the gender of summers and a whisper about how don't count out larry summers because he's a man. the people think the president needs to promote a high-profile woman to this job. >> it is a high-profile job in washington. he's been accused of running a men's club there and picking a
12:59 pm
woman would be a use move for him. a big issue is that larry summers is an acquired taste but the problem is that it's a taste not many people acquired. he is abrasive, made enemies in the work in government at the time he was president of harvard university. there are people who haven't approved of the comments of women and all of that baggage and then very real policy debate where people -- some people see janet yellen in line with the policies of bernanke than larry summers. >> he thinks that the current fed policies are leading to income inequality. i have been on the receiving end of this brashness as has any reporter covering him. >> brilliant. >> he has the ear of the president at this point. thank you so much, john. what do women think about larry summers as a possible replacement for bernanke? the controversial comments about gender he made at harvard in 2005 continue to follow him.
1:00 pm
there's a survey of the top female economists in the u.s. to see who they support. find out what they say. we'll see you back here next weekend. have a great weekend. hello, everyone. a look at the top stories this hour in the "cnn newsroom." u.s. embassies and consulates are locked tight today. fear of a terror attack has them on high alert. americans are urged to stay vigilant. people on venice beach in california on the board walk there ran for their lives as a hit and run driver swerved in to the crowd. a woman on her honeymoon was killed. the driver now under arrest. and breaking news about a-rod's future in major league baseball. all linked to a doping scandal.


info Stream Only

Uploaded by TV Archive on