tv Real Money With Ali Velshi Al Jazeera December 23, 2014 7:00pm-8:01pm EST
their aaronin ironing boards. >> at least they're adding levity to it. >> a lot of humor. >> i'm michael yves. stay tune for "real money." have a great evening. >> here's your holiday gangbuster growth for american economy. the best numbers in a decade. and coming to a theater near you, sony. and plus, those who make it their mission to follow the money, taking on major corporations and demanding answers. i'm daviwe learned today that t.
economy grew at its fastest rate in 11 years last quarter. 5% for the three months ending in september blew away most forecasts, in the second quarter. it's the latest evidence that the economy is now sizzling five months after it began, and the rest is continuing to struggle. goods and services, and the third quarter gains came from strong spending from consumers, businesses and the federal government. reasons for wall street to cheer and for the stock traders to wear silly hats. dow jones passed 18,000 for the first time ever. the dow is up 9% this year, and the s&p has gained almost 13%. the recent gain in stocks has
been fueled by the federal reserve, saying that it will be patient in raising interest rates, mainly due to falling energy prices, keeping a lid on inflation, and gasoline prices are putting more money in the pockets of consumers. it all sounds great, especially when you consider that average housing had impressive gains in november. but let's be clear. americans continue to struggle. the net worth of the average family has dropped 40% since 2007, after you adjust for inflation, and the question now, will the wage gains be lasting and strong in turning that around because that's what america needs to benefit everyone in a meaningful way. the net worth of the average american family since 2007, not a pretty picture.
the head of the recycle research institute, or orci, a business firm that predicted downturns in the housing publics, here to talk about economic outlook. and first of all, why not be ecstatic about the numbers today. >> i am happy, and particularly that we have a break at the pump, where for those in the middle, it means a lot. the average family has lost a lot of net worth since '07, and even worse, you have a decline in real pages when they're adjusted for inflammation. not the headline numbers, but wages have actually fallen by an eight between 2004 and 2013. so the chart you showed earlier, that's number from the fed, what i just quoted, falling by an eight, fall over almost 10 years, and that's
again in the numbers, and that's at the heart of the problem. why even though we get some gp growth, which is improving, and that's wonderful, make no bones about that, but there's a problem with wages and income, and that's not keeping pace, especially for the people in the middle, and that 5% number, and i want to make is clear, on a year-over-year basis, we're at 2.7% the year-over-year gdp growth. i'm not knocking it at all. but we have been there before since the great recession a few times, but it has always faltered and come back. >> aren't there indications that the wage growth is starting to pick up a little bit? >> yes, and i would agree with chair of the feds, janet yellen, and it's non-existent. >> not now, but when you look at what's coming in 2015, with
lower gas prices and with it rates staying low, is there finally hope? >> i'm hopeful. and i'll join you, but leading indicators, while they're somewhat optimistic on the service sector, they're not optimistic overall. they're pointing to easing in economic growth. it doesn't point to gdp. but the ones that flagged the upturn that we're seeing in the rear-view mirror of that 5% gdq for '03, those have eased off a little bit. so the run up in the middle of the chart is consistent. and they're easing off a little bit there. that is the rub. the problem is that in the middle, the wages are not getting traction. so even when you see job
growth, which are good numbers. we had those a week or so ago. but what you find, 5% of the workers are holding multiple jobs. a full-time job and a part-time job, and the reason is there's no wage growth. >> assuming that it does grow, what does 2014 look like in terms of the overall economy, and pockets of the economy that everybody should be concerned about? >> i think in the near terms, manufacturing, like the world manufacturing sector. we're part of that. and so when you look at that, when you look at oil, it's great at the pump for the middle class, it's hurting, and i applaud that, and on the other hand, there's a weakened industrial demand globally. in the middle of the summer, we saw that, and it kind of surprised that in the fall. and we're looking for an upturn, and it's not there just yet. service sector, it's doing
reasonable well. and it's partly because of the lower gas at the pump. people have $50 to spend, and services arer supported a little. >> the founder of the economic cycle research institute. it's always a pleasure to have you on. it's so interesting. thank you. >> it's the battle for the soul of the democratic party. two women, and only one can be the candidate for the president for 2016. and neither has confirmed that they're running. hillary clinton versus elizabeth warren next.
spending bill that was written by city bank. >> here we are, five years after dodd/frank, with congress on the verge of ramming through a provision that will do nothing for the middle class, do nothing for community banks, do nothing but raise the risk that taxpayers will have to bail out the biggest banks once again. so let me say this to anyone listening citi. i agree that dodd/frank isn't perfect. it should have broken you into pieces. >> that video has been watched 500,000 times. elizabeth warren has insisted that she's not running for president, but some ri hillary clinton supporters insist that the assertions about economic
policies between warren and clinton are not spored by fact. serving as special council to former president, bill clinton, he's secure considered one of te biggest clinton supporters today. welcome to aljazeera america. >> one of the best political reporters that i ran across, you did hound me. >> thanks, larry. and first of all, hillary clinton, she's running for president, right? >> i honestly do not know, and if i knew, i probably wouldn't tell you anyway, but i really don't know. i think she's seriously looking at it, but with a granddaughter and all that she's it going to have to give up to run for president, and much less be president, is weighing heavily on her, and she's still thinking about it. >> what do you think are the similarities and the ditches between elizabeth warren and
clinton in economic policy? >> i welcome the vigorous competition, warren if she runs for president. i wrote a column talking about the different ways is good for the economic party. and it's good for barack obama that hillary clinton stayed in to the very end. and we welcome competition in the democrat party. but don't substitute labels for facts, and that's why some organizations who have the right to be for elizabeth warren don't get into facts. and i don't see anything, i hear labels but i don't hear facts. >> there are certainly labels that are misleading. elizabeth warren has come out controversially, saying that the minimum wage should be raised above $20 an hour, and does hillary clinton think is a good idea? >> i haven't heard that number,
told an hour from elizabeth warren, but hillary clinton is supporting the current senate version of raising the minimum wage. i don't know what it is, but she's supporting the democratic version. >> elizabeth warren said that it would be her wish to have it higher than $20 an hour. but elizabeth warren, she said that dodd/frank, she would have broken up city bank and other banks into smaller pieces, is there anything on that? >> again, breaking up into pieces, i don't know what she means by that. there are ways to regulate, i believe elizabeth warren. and she doesn't believe that
they should be paying the tab. i know that she became senator before being secretary, and supported dodd/frank, and gave them the liability rather than giving them that themselves. >> given that the economy is going to boom, this huge gap between the wealthy and the working class, how big of a challenge is that for anybody who runs for president? >> well, income disparity is greater now than any time in this country, and the exact data has not showed that the
middle class has gained while the super wealthy has gained tremendously. and senator clinton during the fall campaign was using the very language, with the squeeze on the middle class, as was senator warren. i don't think that the label of popularrism, or anti-wall street, or whatever those labels mean, is really going to be an issue between senator warren and senator clinton. senator warren said that she's not running for president over and over because she doesn't have any differences with hillary clinton, but the style differences are apparent. and hillary clinton in her rhetoric is much more fact oriented and much less inclined to be inflammatory, and i know that she focuses much more on facts. but she's capable. >> given that senator warren's
rhetoric, inflammatory, if you want to describe that, has caught on with people in the progressive wing of the democratic party. >> inflammatory is not the word. i think that arousing an audience's passion and excitement is what politics is all about. i've seen hillary clinton with people on their feet cheering, and that happened in her fall campaign and in her '08 campaign. when she ran for senator, the polls were against her. she's a great candidate. but she has to hit her stride again. every vote has to be earned and there will be competition on the democratic side. and sure, i agree with you, but with passion for an audience, which barack obama did so well, and hillary clinton can do as well. >> one of the best advocates when it comes to clinton, to
>> jpmorgan chase is closing out the year with a look at how it does business. it sounds at times like a confessional. they acknowledge mistakes, and where they fell short and want to do better. it was prompt bid a group of shareholders led by nuns. if that surprises you, you probably haven't been inside of company board rooms lately. activist shareholders are on the rise. >> clashing with public traded companies on wall street may seem like an unlikely choice to do god's work, but it's where she has found her calling. she's a catholic nun and she wants companies to be accountable on mortgages and facts. >> that's my vocation, and not a lot of our sisters to do this work.
but i think, i come from a dominican tradition, of preaching in the context of the reality of the day. >> those realities include the financial crisis of 2008 and climate change. she's credited with nudging ford to pledging it's greenhouse gas emissions. they scour the shareholder reports for retirement invests of the 130 nuns in her congregation. and she works in con junction with the interfaith center of responsibility. combined, they represent 300 groups with $100 billion in assets. by her account, sister pat has filed 20 shareholder resolutions and 50 corporate meetings this year. at times, she has been
encouraged to use what she calls the nun card. >> a lot of people said, if you got yourself into ahabit and got into a shareholder meeting in ahabit. i don't want to be treated any differently. >> mark knows the first way of sisters, and the initiative to improve standards in the industry. even go being as far as meeting at the vatican about it. >> if i used the mother theresa complex, the first response is sisters, nuns, working in tough environments and it communities, and very little reward, what we would consider a reward,.
>> not all of the conversations are so reverent. sister barbara errs, pressing him at a shareholder meeting. >> he was furious and wanted to know who the hell i was telling him to run his company. and he said why are you calling? and i said, i guess i need your help. >> she instills fear among ceos. >> because -- >> i have no idea. >> one current fight is with bank of america. she and other faith based investors filed a resolution to splint the chairman and the ceo's job into two, arguing that it's needed for better oversight. nuns have been in the bank since the beginning of the great recession, it led to the
financial crisis. >> i don't know if we could call it our greatest success that we knew it was happening or our greatest failure, because we couldn't get them to change. >> as for bank of america, the decision to combine the roles of chairman and ceo, brian moynihan defended it,ing a that it was to put the company more in line with its peers who do the same thing. our next guest, a roman catholic priest who works alongside of the nuns that you just met. and father, welcome. the pursuit of profits and the goals of religion seem to be at odds with one another. and how do you reconcile them? >> it seems to me that people look to their religious traditions for guidance. whether they were borrowing or lending or selling at the parkinat themarket. and i think that we're
recapturing some of that tradition. and they want to feel they're responding to the sacred texts. >> what are some of the successes and some of the failures? >> with the apartheid, what would be considered democrat governments. more recently, it's about how banks serve the public good, the common good. and people looking for mortgages and loans, and finding that so many parts are not responsive. >> citibank, for example, was able to put in legislation in the last government spending bill, despite americans getting it passed. >> it's a situation where the
major institutions have felt like they had free rein in terms of regulations and rules put into the system, and they can do it to their benefit. and what we have been pushing them certainly, they need to claim their license to cooperate, and serve ordinary people, who are not trading on wall street every day, and don't have billions to invest. and they have to recalibrate if they want to win back the confidence of the american people. >> i would imagine that a similar experience that you had, came after ceos meet with you, it's if difficult with the challenge for you and others of faith, who care about these issues, to have that meeting in the first place. >> absolutely. like everybody else, they are looking for institutions of internet. and i think -- integrity.
and like many other shareholders, they realize that we don't go away. we been at this for more than 40 years, in a sub formal way, so if i'm there, or center roberts or center pat, we're not going to graduate from wall street in four years, and looking for a job on wall street, we're going to keep looking at the issues, and they don't always agree with us, but we at least want the opportunity to present the issues that we think that they need to pay attention to. >> and you sense that they are paying more attendance now than 150 years ago? >> i certainly think that the financial crisis has brought awareness to folks in the industry, saying that we don't have a way of guaranteeing the future here. we need to manage risks and put into control better risk management systems, and we need to look at the larger public, and what they think about us. otherwise, they're going to be
more likely to ignore us or take their business elsewhere, and it's going to be harder to operate if congress or others get into it. >> the chairman for corporate responsibility. thank you for joining us. up next, water is in dangerously short supply in the state of california, causing the state to take drastic conservation measures but fracking and residents are not happy.
>> after recent, much-needed, heavy rain, california is going through the worst drought in a decade. water is in short supply, and one thing that needs an incredible amount of water, fracking, and it's drying up a precious resource. jennifer joins us. >> reporter: david, fracking is no longer seen as the oil and gas' dirty little secret. and it has been happening in california for decades. though it has always been controversial, many residents are asking, is big oil getting a free pass to use millions of gallons of water to frack, while they're being forced to conserve. >> they're destroying our land and water, and using up our
water. >> she's fed up. >> . >> it makes us pump. >> the reach, they violate the water restrictions, while the oil company next door is free to use millions of gallons for fracking. >> they use quite a bit of drinking water to do this work, when we have no water in our arrives. there's no water in the los angeles basin aquifers at this moment. >> getting up on the property to see the fracking process up close is next to impossible, but we know that getting fracking one well takes from 100,000 gallons to 1 million gallons of water. 15 wells were tracked in california. and gas and geo resources, dogger, the state industry charged with regulating the oil
and gas industry. are they regulating how much? >> water rights in california are not regulated. >> shouldn't the regulatory agency be regulating and having insight over that? he we can't tell somebody that they can't purchase water without it. >> biological diversity, a non-profit, working to ban fracking in california. >> water is such a scarce commodity right now, many communities are struggling to keep their faucets going, and farms irrigated. and in these times, we can't afford to be wasting water.
>> from my point of view, as a regulator, we don't have the authority. >> in california's 2013, 2014 legislative session, 18 fracking bills were proposed and one was passed. it goes into effect in 2015 and though it does have some, it can't regulate how much they can use. as california is trying to survive the worst drought on record. >> we have to get like boots on the ground and stand up as citizens for our rights and say it's enough already. it's enough. >> the residents that i spoke with said they're demanding an out right ban on fracking in the state of california.
but so far they have not taken that action. >> the news hour, following this one, give us a taste of what we can expect. >> part two takes viewers to the state's central valley, where fracking and farming collide as a fight is brewing over water rights and contamination concerns, david. >> jennifer levin, reporting from los angeles, thank you. and up next, sony is now standing up to the hackers and they are putting a controversial movie, the interview, back in theaters.
>> russia has very ambitious space plans. it successfully launch aid new rocket into space today. and it may drop down to the international space station so it can build it's own, but the economy may make it hard for russia to start the space race. >> christmas and new year cheer ended in russia with a horrible year. with the maiden launch of the rocket. two decades, ten years in the planning. it will be 36 kilometers above the equator. ever since he became the first man to orbit the earth in 1961, they were part of the old cold war mindset. now in the new year with the west, the kremlin is anxious to
demonstrate that it's still in the race, with russia hoping to launch it's own flat form, somewhere in the future. russia needs to stay in space, and money is of secondary importance, say space experts. >> this was a project of the ministry of defense. and it's strategically very important to be able to send satellites to russian territory. if you want to stay as a country, this should be a priority. >> inside of russia, not here at the usual launch pad inside of kazakhstan. the former soviet states are not completely reliable partners in space ventures, and there will be a dividend from these ventures. >> we'll have a great impact on the people in russia, because
of symbols. >> a lot of ordinary russians saying forget about putting a spacecraft in orbit. see what's going on the ground and sorting out this horrible economy. >> improving communication, not to have, but it can help to improve the economy in russia. >> you see these old monuments to the soviet race across moscow, but they plan to reach the stars, and they are set to be grounded for some time. and designs for its own orbiting space station, they look impressive, but in the current economic climate, observers say that the kremlin would have trouble finding the money to put the design on paper.
aljazeera, in moscow. today, a major course correction. sony decided to release the film, "the interview" on christmas day. after the cyber attack that have blamed on north korea. what was behind sony's decision? >> they haven't said why they changed their mind. but they confirmed to aljazeera that they will start showing it on christmas day in 300 to 500 independent theaters across the country. they were originally going to release it in 3,000 locations. even president obama called the decision a mistake, but now he's applauding sony's turn around. michael linton said that we will never give up on showing the interview. and we're finding more ways to show the movie so people can
see it. we're proud to release it to the public and have stood up to those who oppose free speech. >> they are standing up, and any expectation of turnout for the movie on christmas day. >> it's likely that it's going to be pretty high, david. one of the theaters that said that it's going to be showing it, alamo draft house, it's going to open the website to books at 12 p.m. eastern time. and one of the theaters, two of the screenings were booked full within an hour or two, and there has been a lot of hype about the movie, the drama around the release of the movie, and i think that a lot of people are curious, and a lot are tweeting about it as well. one person said, this is excellent news, congratulations on this win against terrorism. >> roxanna, thank you very much. and this latest twist in an
ever thickening plot between north korea and sony is unprecedented. and bill, first of all, your reaction to the sony ceo today saying that they're standing up for freedom. >> it's something that they should have done originally. but let's give them a little bit of credit. sony got massively mugged and the fact that their decisions coming out of that mugging were not precise, i think that we can give them all them a leeway. most of the people who have seen it say that it's not a good movie, but the principle is that people should be able to see the movie if they want to, and it's a win as far as that goes. >> and the attention on the words make it a bigger success than the movie might have been otherwise? >> it's not clear. it's a seth rogan movie, and they don't do that well.
the best-case scenario, it will do 80, $100 million. and sony is going to try to put it out on a video on demand scenario, starting on christmas day as well. so that's going to let a lot more people than ordinarily would have an easy option than going to the threat. so we might see a bump on that. and the other point that we should make here. there's a barbra streisand effect, and that's where barbra streisand tried to keep a picture of her house from getting on the internet. and of course everyone started to put it up. if you try to stop something, the internet gives ten times the exposure as it would have, and i think that people are hoping that that's what's going to happen. if north korea is behind this, and showing them that it's a
bad move. >> the fbi is going to be paying close attention to the theaters where the movie is shown, and have you ever seen them regular to monitor threat because of these crazy online threats by hackers? >> it's a -- you have to go back to simon rusky and satanic verses, and what happened, they went to an anonymous publishing house to get the book out. movies are different. they are shown by the studio, and the movie theaters are in shopping malls, so you can give sony a little bit of credit, because there are a lot of moving parts with safety. and all of the parts are coming together to the extent that it's going to be shown, and it's very unprecedented. >> i want to give you a little bit of credit. you've given us a barbara
streisand reference, and in the movie, guilt trip, she plays seth rogan's mother. is that coming full circle in. >> this is an interesting story. it cup touches everyone. it's a national security story, and a hollywood story, and it's a great christmas story. >> are you less of a patriot if you see the gambler or the hobbit on christmas day instead of this one? >> i don't think so, but i think that we can all basically agree, it's not whether you like star comedies, james franco or seth rogan, but these movies should get out and it should have a happy ending in that sense. >> thank you, we appreciate it. >> thank you. >> turn on the radio these days and you hear christmas music, but radio programmers hear something else. the sound of money.
>> sure, we're running out of time, but how much would it cost you to buy your true love all of the things on the 12 days of christmas. well, a little more than $1,000. that's less than a $300 increase from last year, but that's if you buy your partridge and pear tree and turtle doves in stores. the price online is $43,000. and that's not much of a bargain for those of you saying, four calling birds,
some of the most expensive. ten lordsa leaping will cost you $5,000. and nine ladies dancing will cost you $7,500 per performance. if you are looking for a simple item, a partridge will cost you $20, and pear tree not included. there's no escaping the sounds of the holidays. and like it or not, holiday music is back on the radio big time. rudolph the red nosed reindeer to little drummer boy, christmas programming might be one of radio's most profitable gimmicks. mary snow has the story. >> the next time you hear christmas music on the radio, listen carefully. hear the sounds of cash registers ringing across america. this is wezw. >> south jersey's christmas
station. >> a small, automated 4,000-watt radio station located in atlantic city, and transmitted to southern new jersey. what makes the station unique, it's the very first radio station in the nation to go all christmas music 24 hours a day. when does wezw start playing jingle bells, white christmas and silent night? on october 17th. that's right, wezw is in the christmas business a full two weeks before halloween. christmas music can be enormously profitable for a radio station. the industry calls it flipping. and radio station that's flip can enjoy an average of 129% lift in their ratings. in fact, the average all holiday radio audience --
>> when we go all christmas, our ratings double, and we become the number-one station. and the revenues explode. >> according to flesher, flipping provides an extra $200,000 in revenue each year. >> the beauty of christmas radio is that every retailer is a candidate for a christmas promotion. >> it's a. >> it's a trend that's catching on, 229 stations flipped, and by 2013, the number doubled to 488 radio stations. in fact, the positive audience response to all christmas radio is a sign that radio, a 100-year-old technology, can still hold it's own in an age of satellite radio, pandora, spottify and itunes. >> i'm glad that we could make
it work. >> and revenues for all radio stations was $17.7 billion, up from $16 billion in 2013. >> radio is the cockroach of media, it can't be held down. >> radio is simple, it's free, and you don't need to give anybody your credit card or download any software. >> there's no reason we wouldn't continue to do it. if we're making money and continuing to make people happy, isn't that what radio stations are supposed to do? >> and ultimately, the endless loops of felis nav navidad. >> it's the gift that keeps on giving the whole year. >> and don't think that the music phenomenon is just happening on terrestrial radio. pandora radio, the internet company, reports that
subscribers listened to 241 million hours of holiday music, and "have yourself a merry little christmas" was played 200 million times. holiday shoppers are seeing green. the sales are up. during the height of the recession, it slowed, but this year is on track to be a record-breaking. according to the national christmas tree situation, the average shopper spent a little over $35 a tree this year, but stronger sales this year may show that shoppers have less to spend on what goes under it as they pay more for the tree.
>> this is shaping up to be a very good industry for andrew and the entire industry. he's on track to sell 400 christmas trees. >> tree sales for new jersey and the nation are rebounding somewhat. >> tree sales already wet beyond prerecession levels. this year, americans are expected to buy 33 million trees. all of the trees at this farm. the big ones, the little ones, $50. >> it's related to the cost. but it's basically what the market will bear. >> when it comes to christmas trees, the american northwest and the state of carolina are the most productive. three out of every five
american christmas trees are in these areas. the pacific northwest christmas tree association tells aljazeera, growers are earning about $20 on every sale. that's two or three dollars more than they did last year. and by the time these trees make it to big box retailers and nurseries and street corners in u.s. cities, you could be paying anywhere from $35 to well over $100 for a designer tree. >> last year was california, and they're very expensive in california. >> tree producers are quickly evolving to consumer taste.
in milford, new jersey, aljazeera. >> because of the laws of supply and demand, if you don't have a tree yet, you can get the best deal at the end. and by the way, demand is rising for american-grown christmas trees. u.s. farmers routinely ship to japan and mexico. this is the 8th night of hank a. the night that some of us celebrate fest vas. it's the airing of grievances, and so if he says, i have a lot of problems with you people, and you're going to hear about t first, what the 113th congress, the least productive in history, you lawmakers really want to complain now about not getting a pay raise? you passed 18% fewer bills than the last congress, and 4% less
than the do nothing congress in 1978. four times less, seriously. the corporate ceos, this year, you again collected record sales as you refused to raise the wages for most of your workers, come on. to all of you americans who complain about your emails not being private, breaking news from years ago, that digital data doesn't belong to you. how many times do you have to be reminded? to my administration at the alma mater at the university of michigan. what took you so long to fire that damned athletic director in and finally, to everyone pessimistic about 2015, what planet are you on? we're looking at low gas prices and a booming economy. happy new year indeed.
fest mass grievances, i'm david schuster, and thank you for watching. >> good evening, john seigenthaler is off. the sony hack, and there's a catch. defiant demonstrations rally in new york despite the plea from the mayor after the ambush of two police officers. caught in the crossfire. more children killed in syrian civil war. what it takes to final end the fighting. and