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tv   Your Money  CNN  July 11, 2009 1:00pm-2:00pm EDT

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the search for a solution to turning the economy around. is it time for yet another round of stimulus? or for some new ideas? i'm alsli velshi. welcome to "your $$$$$." and i'm christine romans. over 40 and out of work. we unwill be the secrets to landing the elusive job in a very tough job market. and we'll take a look at the role of facebook in this economy. plus ali, my friend ali, on a motorcycle. but, first, we begin with a stimulus reality check, what is the government doing with your money and is it working? just over 10% of the massive $787 billion stimulus has been contributed. >> why hasn't more of the money been spent and why are some democrats calling for yet another round of stimulus? kate bolduan joins us now with more. >> reporter: even as the obama administration touts the jobs being created by recovery act spending -- >> we're starting to see some
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real progress. >> reporter: -- unemployment has soar to 9.5% and 3.4 million jobs have been lost in the past six months. republicans say the stimulus isn't working, and wednesday they pounce. >> i think that we need to justify how much money we're spending, and where are the jobs saved, and where -- how have they been preserved and i think that we've got a major credibility crisis here. >> the president is quoted as saying that, quote, the stimulus has done its job. is that true or not true? >> we believe the stimulus has had the impact which we had predicted which is job kreeps. >> reporter: in the hot seat, the president's deputy budget director rob nabors who said the stimulus plan is slowing the economic free-fall. nabors said 150,000 jobs have been created or saved. >> it's a work in progress, but it's steady progress. >> reporter: the government accountability office says of the $29 billion delivered to hard-hit states so far, most has gone to pay medicaid costs, balance budgets, and avoid
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layoffs. at the same time, tom eslin, vermont's chief recovery officer, says funds for big, job-producing investments like broadband and the electric smart grid are still caught in the stimulus pipeline. >> the frustration has been that the money hasn't come out, and we kept hearing later and later dates for the money coming out. >> reporter: massachusetts governor, deval patrick, says states are ready and waiting. >> no funds, no projects. and no projects, no jobs. >> reporter: now, also in that hearing, rob nabors, the white house's deputy budget director, he seemed to criticize states for making what he called unwise choices to simply use stimulus money to balance their budgets. now, the administration has said actually stimulus spending will peak in 2010. ali, christine? >> kate, you know, it's only a fraction, then, of the $787 billion stimulus distributed so far. why are some democrats already calling for what would be round
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three? last year we had some of the president bush, some dems want a second round. >> many people's eyes pop open and say what are you talking about just five months into this one? but some democrats are saying that, really, it's prudent to start planning now, planning ahead, if this round of stimulus, this jolt, doesn't help the economy recover. but at the same time, christine, it's really politically risky. already republicans are jumping on that as simply they say an admission that the current stimulus isn't working. and economists say it could be october, november, december before we really have a clear picture of the success or failure of this current effort. but i think the big question, and i'm sure you're hearing it as well, is will the american public, can they stomach, even a conversation about round three already? >> all right, kate bolduan, thanks so much. ali, kate, it's so interesting, too, because you look at japan in the '90s, i think they had nine different stimulus plans -- >> and no interest rate, same
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problem. >> a very similar problem, and it's a lot of challenges and a lot of very smart minds have been working on it. when president obama took office in january, he led a chorus of top democrats urgently demanding the passage of that stimulus. you know, their argument then, jobs, jobs, jobs. >> if we do not act, 3 million to 4 million more could lose their jobs. >> we're not going to grow the economy, we're not going to see a lessening of those deficits, if unemployment hits 10%. >> by necessity, we are moving quickly. we're not moving quickly because we're trying to jam something down people's throats. we're moving quickly because we're told that if we don't move quickly, that the economy is going to keep on getting worse. we'll have another 2 million or 3 million or 4 million jobs lost this year. >> today 2.3 million jobs have been lost since the stimulus passed since the president has been making the arguments. is this progress or broken promises? >> let's pose it to democratic congressman chris van holland of maryland, now joining us from
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capitol hill. representative van holland, thank you for being with us. >> thank you. >> what is the situation? the stimulus bill was passed in large measure because it was going to create jobs, amongst other things. but really key to most americans was the creation of jobs. and while things are a little better than they were in february, they're still pretty bad. >> well, look, the recovery act has succeeded in slowing job loss, in many cases creating jobs. i know in my own district people have been put to work on transportation and roads projects that were shovel ready. i know there were a lot of people that would have been laid off, teachers especially, but for the fact that this passed. the president made clear very early that this was going to be a long and painful recovery, but it would be more painful and it would be longer if we had not passed this economic recovery plan. so, it's beginning to kick in. but this is like trying to walk up an escalator that's going down. if you do nothing, you're going to go down a lot faster. but even if you're doing things, because the economy was in free-fall, an economy that the president inherited, progress
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is -- is slow. and you have to measure it in terms of reduced pain. it will take a while before we actually turn the corner. >> you know, unemployment back when they were trying to sell the stimulus was 7.2%. now it is 9.5%. i want you to listen quickly to what the vice president said about a week ago about the economy and how we must thread this. >> the truth is, there was a misreading of just how bad an economy we inherited. now, that doesn't -- i'm not laying the -- it's now our responsibility. >> so, here's my question -- is the white house misread the depths of the problem or how far it would go, because the white house was saying 8% would be the peak in unemployment if the stimulus was passed. does that mean that the stimulus wasn't the right package in the first place and does that mean there needs to be another one? >> no, i think the stimulus was the right package and i think it is beginning to kick in. the fact of the matter is, in the third quarter, the next quarter, you're going to see more of the stimulus funds entering the economy. this was a package that was
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designed to put more funds into the economy over a two-year period. the initial tax cuts went up very quickly. but the transportation moneys and the other moneys are beginning to kick in now. so, you're not going to see a dramatic reversal, i mean, the president was very clear about that. but i do believe that it's pretty clear that things would be worse and that the decline would be steeper if we hadn't done this. >> there have been some criticisms that the states have used the money to plug very immediate holes that they had that addressed some short-term matters and that are not stimulative in the long term. there were budget gaps and the states have used that money and that's not actually going to create jobs or long-term work. what do you think about that? >> well, as you know, the states have to balance their budgets, so if they didn't use the money to balance the budgets through medicaid, they would have to make cuts elsewhere, which means laying off teachers and public safety people. because of the balanced-budget requirements in the states, if
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they don't use the funds to balance the budgets in the states, it means more cuts and layoffs and it continues the virks cycles downwards. it means the teachers don't have money to go to the stores and buy local goods. it's a good thing. and if we hadn't passed that bill and states hadn't been able to use some of the money for their budgets, you would have a continuing, rapid decline. we know even with this money, states like california and other states are having a tough time. imagine how much tougher a time they would be having if we hadn't passed this. >> we know of one school district that kept 2,000 teachers on staff that would have been fired without this money. congressman chris van hollen, democrat from maryland. thank you very much for joining us. i know you have to run out for a vote. thank you very much. we were talking about representative van hollen about unemployment. it stands at 9.5%, as christine said, but would we be in worse shape, would it have been higher if the stimulus bill had not passed? republican paul van ryn is the ranking member of the house budget committee, he joins us
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now. he did not support the stimulus bill. he does not support it now. congressman, give us your views? >> first of all, the claim wax that the stimulus would keep unemployment below 8%. it's now 9.5%. what we've already lost is 2 million jobs since the stimulus passed. more to the point, the stimulus will cost $1.1 billion in borrowing and that's pushing interest rates up and that's hurting people that are trying to buy homes and avoid foreclosure and are trying to invest. so, when we see the stimulus spent very slowly, the kind of spending in this stimulus, most of it doesn't even occur until after 2011, it's not working. we should do something better and only 3% of the stimulus package actually goes to encouraging businesses to keep or create jobs. the rest of it is rebates in spending, most of the spending is slow, wasteful, and ineffective. >> and you fundamentally just don't believe we should be borrowing money. >> that's right. >> money that we don't have and running all the deficits, we should be borrowing money to get out of the debt problem. that's your philosophical view
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on this. paul krugman, who won a nobel prize, a "new york times" economist. i want to read to you something he said how the issues are playing out politically -- so, he's saying that it's not necessarily -- he would like to see maybe even a bigger stimulus. >> that's right. i've heard his argument. i just don't agree with that. more borrowing -- look, we're already borrowing 50% of the federal government's this year alone. we're borrowing $2 trillion just this year. all this borrowing is going to push up interest rates. it's going to give us an inflation problem. and we believe that the stimulus -- and we proposed an alternative -- ought to go to businesses, small and large, to encourage them to keep people working. to encourage businesses to invest and expand and hire more people. more spending through washington. look, if more spending from washington was the answer to our economy, then we wouldn't have a
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problem in our economy, because we're spending more than we ever have in the history of this country. >> let's talk about that, representative. let's talk about that. you're talking about more money to businesses. ultimately businesses don't invest if consumers aren't going to buy. but what specifically are you saying we should do? what kind of incentives do you provide for businesses and who should pay for it? >> what we say is give businesses the ability to write off 100% of their businesses. if they hire people and buy more plant and machinery to put people to work, they can write that off immediately. we also tax our companies, our corporations, the second highest rate in the industrialized world, so what happens in the 21st global economy when you tax your employers a lot more than your competitors are taxing theirs, we lose jobs overseas. we've got to be more competitive. so those are the things we're saying we ought to do. also we think we ought to help people make the money back in their savings portfolio that they lost. we think there ought to be a sunset of the capital gains tax for two years. it's not a huge revenue razor for the government, but it's a
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huge punitive tax on our savings plans. let's help the economy get back into investing. let's encourage investors to take risks and let's help people make back the money in their i.r.a.s and the 401(k)s and their kids' college savings plans that they've lost so much money from. >> democrats are preaching patience. only 10% of the money is, let's give it some time. we have to leave it there, congressman paul ryan. thank you very much. a shocking forecast for the housing market. what's in store for the value of your biggest asset, your home? will it be worth more or less in two years? plus, over 40 and out of work, how to take steps to land the next job. ( honking, news radio update )
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to get worse before it gets better. that's the news from mortgage insurer, pmi group. half of the nation's largest cities will likely see home prices drop in the next two years. many are in hard-hit states, florida and california. i will say they do say that 98% of the homes -- home areas now are higher in affordability and so that's good if you're looking at low interest rates and you've managed to save up money for a down payment. there is some chance of getting that first-time home now for the first time in a long time. >> you know, we use california often as the example of that where back at the height, you know, a house was maybe
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$600,000, now it's under $200,000. >> that's right. >> which means you can get into it with a lower monthly payment and without taking a risky mortgage. but it depends you getting the mortgage. it's an interesting time, a glass half full or half empty depending on where you stand in the housing market. t. boone pickens is shelving his plans to build the largest wind farm ever. it would use thousands of turbines to generate electricity. put he said transmission problems and trouble getting capital have made the project unfeasible for now. pickens talked up the pickens plan, you might remember, with television commercials like these and lobbying efforts. his goal was to wean the u.s. off of foreign oil. move us over to wind and natural gas a little bit more so we use less oil for transportation. i spoke with t. boone pickens about his scaled-back plan for some of the turbines that are already ordered. >> we'll be right on schedule. we may not build the wind farm in pampa texas, you may find it
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in wisconsin or nebraska or someplace else, but we'll be actively building a wind farm someplace with the turbines. my garage is not big enough to take all those turbines. >> i bet he's got a big garage. i really do, but i don't think it's big enough for all those. >> yeah, this is a big bet that he made. he had a lot of money to make a bet and he made a big bet on wind. there were a lot of moving parts to this. it needed private investment and municipalities and states to participate in building the transmission lines and he said it wasn't happening enough fast enough in texas. but he will have to find a way out of it, and it's probably good news for those people depending on greater use of wind or solar or natural gas in this country, that they've got to find someplace to mutt these things. there are a lot of people looking for wind fares. >> we were bullish on oil when it was $140 a barrel. >> he said oil's going back up to the $140s in the next few years, but i guess it's in his interests at this point for oil
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to go higher to push his plan. when oil is lower, he's not worried about it. >> he told us he was long natural gas. bailed-out insurer aig is asking the government pay czar to review $235 million in bonuses that it owes employees of its famous now financial products division. they are reviewing $2.4 million in scheduled payments to 43 top executives. the bonuses are part of pay packages that were already contracted in 2008. that means aig is not required to receive approval before making the payments. a source close to the matter said aig wants to make sure the government a completely comfortable with the company's compensation plan. and ali -- >> which they can't possibly be. >> no one is comfortable with that. >> no one is. >> the people getting the bonuses -- >> it's the world's worst compensation plan. no question about that. however, we've already -- we've already had our chance to be outraged about this. this is the same one we were outraged about. it's another installment of the same outrageous compensation plan that we talked about a few months ago.
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>> it's the same money we were all angry about before. >> yeah. >> taxpayer money has to pay the bonuses, but now it looks like the government and aig are together trying to figure out what's the most appropriate way to do it or not do that. that's not the end of the story. >> i tell you how you do it. your hold your nose and you pretend you don't have to do it because it's terrible. >> all right, we'll leave it there. we'll give the technical advice. we'll draw it up and send to finalburg at treasury. facebook, promoting yourself and your business right online could mean a lot of money in the future. 
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social networking sites are not just places to chat with your friends anymore. whether you're airing your grievances over your shrinking 401(k) or you're networking to find a new job, the way you use the sites has changed with the economy. randi zuckerberg is the marketing director at facebook. she joins me now from palo alto, california, via skype. thank you for being with us. >> great. thank you so much for having me. >> randi, i know that you really do follow the trends what's been going on on facebook and i know that within the last few weeks because of michael jackson and because of iran, there's been really an increase in not only usage but the way people use facebook. but, with respect to the economy, what sort of trends have you seen in terms of people
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struggling through the economy? how are they best using facebook to make things better for themselves? >> that's a great question. and because facebook is really a representation of what people are talking about offline in their daily lives, people have really been turning to facebook in a huge way to discuss the economy, ever since last year we have been tracking how people have been discussing terms like money, the economy, being laid off on facebook. and we've seen a tremendous increase in these terms being discussed with people and their friends. >> all right. so, the first thing that we typically, in business news, discuss when we think about social media and social networking with respect to you is jobs. networking, because you may know someone, there may be somebody in your group of friends who works at a company that -- that you might want to get into, so you can get your resume right to them, or they'll pass it on to someone, so the networking aspect seems to be the most obvious aspect of it. but apparently there are other creative ways, people who are looking for work or coping with being out of work can use
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facebook. >> definitely, the job networking question is interesting. we actually asked over 1,000 facebook users this morning, we asked a question real-time asking if they had looked for jobs. about 25% of people said that they had looked for a job on facebook or a friend had looked for a job, which is a pretty outstanding number. and when you think about the fact that a lot of people really do turn to their friends to connect them, on facebook you can really see very easily where someone works, what industry they're in. and it's -- it's very easy to reach out and make a personal connection with someone or have a friend introduce you. >> now, we don't want go too far away from the things like facebook really developed originally because of social connections and there's a social aspect to people who have been out of work or laid off. you're finding there are some support groups that exist on facebook, ways of coping with recessions or people with similar interests who are out of work trying to sort of create a community? >> that's right. there are groups with hundreds of thousands of people that are
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dedicated to either people who have been laid off, sharing tips of balancing budgets. there are groups that are especially related to people with lots of student debt and what they're doing in this economy to help pay it off. and there's just lots of groups that are around of discussions, so if you're interested in discussing economy or money or a job on facebook, there are tons of groups you'll find with millions of people discussing this topic. >> and there are tons of recession specials that are targeted towards you. in fact, on friday there was one where chick-fil-a said if you dress like a cow, you can get free chicken. so, i actually gathered up a little cow outfit and i made sort of some surgical gloves into an udder and i went to get free chicken. randi, good to see you. >> beautiful. >> always a pleasure, randi zuckerberg, managing director at facebook, joining us. say good-bye to hollywood, we're going to show you which town is trying to ramp up film production as a way to add jobs to one of the highest
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unemployment rates in the country. i think i'll go with the preferred package.
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general motors is out of bankruptcy. it took just six weeks. what does the new gm look like? well, it's keeping the chevrolet, cadillac, gmc, did buick brands. it's keeping most of its overseas operation, and it's keeping about two-thirds of its u.s. dealerships. but it's closing 14 u.s. plants. it's eliminating about 20,000 of its 88,000 u.s. employees. and it is selling off saturn, saab, and hummer brands, and it's discontinuing pontiac. now, the unemployment rate in the metro detroit area stands at 14.9%, more than 5% higher than the national average, ali. >> the contraction of the u.s. auto industry is one factor. but what else is at play in detroit? charles anderson is the president of the detroit urban league, naomi patton is the city hall reporter for the detroit press? what do you think is at play? is it fact that the fact that
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the city was built largely on the auto industry and that industry has collapsed? >> yeah, that's a huge factor, and which would seem obvious, but there are a number of other factors at play, but that's -- that's the most obvious hit. there were these people that relied on these jobs for decades, now they are gone. they are looking to find out what's next. but it's not apparent at this point. >> yeah, charles, let me ask you. what is next? many say that detroit is the birthplace of the black middle-class in america, although chicago claims the same mantle. what is next, i guess, for the middle-class, the middle-class life, in detroit? and what are -- what are people doing to try to -- to proceed with a future that is bright for the middle-class there? >> well, you know, it's not just the jobs that gm has cut and ford and other companies have cut, it's also the jobs that connect to the general motors, automobile dealers and the workers. so, what we have today are a number of people that need to
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readjust their lifestyle, they need to reconfigure and regroup and figure out how to move forward. it will require people to look new kinds of work to do new job training. some are moving into health care, because it's still a growing profession. others are moving into business on their own. but it's -- it's a change in demographic. it's a change in direction. a lot of people need to fake out another way to go. >> naomi, you look at those -- you look at some of those cities that have had similar problems. there's really no city in america that has had the same problems as detroit. but take a look at pittsburgh years ago when we started to see less emphasis on steel and less emphasis on that type of manufacturing. there's a city that sort of started to emphasize its educational facilities and health care, and really, while it is still struggling in this economy, ended up doing better than detroit. we've got a similar situation in detroit. you've got a perfectly located city geographically. you've got a workforce. great highways, waterways, facilities, infrastructure. can detroit reinvent itself as
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something else? because i don't think the auto industry's going to do it for detroit anymore. >> no, it isn't. but it can absolutely reinvent itself. it was headed in that direction prior to the financial crash last year. right now, there's a burgeoning film industry, the state is giving tax credits, and they have sworn to detroit there will be a couple of studios opening up in detroit proper and just outside in the burbs. that's one aspect. the city itself has taken on initiative to provide tuition assistance through its workforce development department to get some retraining, hospitality industry. we have the permanent casinos with hotels, that's provided some jobs. retail programming training, retraining. health care obviously. and in some, you know -- there's still some manufacturing-based elements to -- to the detroit economy that will remain, clearly, and the state is even pushing initiatives, you know, to -- to become a hub for developing these batteries for these future hybrids. i mean, there are some options, and they were certainly headed
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in that direction prior -- prior to the crash, in the fall, which obviously led to the fall of the -- of the domestic three. >> charles, naomi mentioned the film industry. is the film industry so far, is that going to be enough to kind of push this forward? is that going to make up for some of these auto jobs? and the federal government has been -- has been spending money bailing out the automakers. does that translate to the city of detroit? i mean, has that been helping? >> well, i think it will help. i think what the city of detroit needs is a more diverse economy. we don't need to be as reliant as we were once on the manufacture. so, the movie industry is one way to -- to do it. the battery technology, the green technology, all of the opportunities of tech -- even google coming into the vicinity of detroit, all of this is helpful to diversifying the economy of detroit and getting us to rely on a multitude of different careers and opportunities as opposed to
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being so wedded to one. the auto industry paid well. it helped move, as you said earlier in the program, a lot of the african-americans to the middle-class ranks. and some are really struggling to stay there right now. but the opportunity to diversify our economy is what we really need to take advantage of. we certainly can reinvent ourselves, as was said a moment ago. we have all of the right demographics. we're in the right spot. we just have to explore the positive aspects that we have in our community. >> all right, charles anderson, president of the detroit urban league. thank you so much. also naomi patton, reporter for "the detroit free press." >> i spent a lot of too imin michigan covering the auto story. i really look forward to the day when detroit really starts once again to turn the corner. because it's a great place and it can be. michigan can be really prosperous. >> it's a great american city. and as we've said over and again, there was a middle-class born there that set the standard for the middle-class across the
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country. and that means a lot of people look to what's happening in detroit with great fear to how the rest of the country could -- >> it's important that it comes back around. the state of michigan is desperate for jobs, especially outside of the troubled auto industry, as mentioned, there's some hope coming from an unexpected place. cnnmoney.com's poppy harlow explains. >> reporter: don't be surprised to see george clooney or robert de niro next time you're in michigan. those hollywood i-listers have joined others like clint eastwood to make major motion pictures in the embattled state as it works to reinvent itself. >> we are focused entirely on diversifying our economy, for example, in the creative economy, whether it's filmmaking. >> if you stay here, because if i have to come back here again, it's going to be ugly. >> reporter: clint eastwood's movie takes place a few miles from detroit. so, what's the incentive to film here? a 42% tax break for studios that hire local workers. rather than bring in their own crews.
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sounds great, but here's the problem, even though michigan has a skilled labor force, most don't have any experience working on film sets. >> okay. >> reporter: enter mort meisner and the center for film studies. started in march, the school gives michigan workers the chance to hone their skills to meet the needs of movie execs. >> i don't think hollywood woke up this morning and decided, hey, let's go to michigan! they're coming to michigan because the stacks incentives are here. >> these are normally just painted black. >> reporter: a full course isn't cheap, it costs five grand. but stive 75% of the workers in the program are getting a free ride, thanks to funding from michigan's "no worker left behind" program. at this class, construction workers that are used to building homes, are learning how to build sets. >> and i think it was -- >> it seems like the movies are coming here. there's a demand for carpenters. so, i want to be -- we're actually right at the front of it right now, so i want to be right there. >> the real mission, pure and
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simple, is leave a legacy of jobs. >> and, boy, the people across the state of michigan, desperate for jobs of right now. not a movie mecca, but the state is certainly making progress. 35 movies were shot in michigan last year, bringing in $125 million revenue to the state that is up from just $2 million in 2007. so, a big improvement. >> nothing compared to a multibillion dollar auto industry that is shrinking. >> no. >> what is your experience? you spent a week in detroit talking to people, getting a sense will the city be the phoenix from the ashes? >> it just may because of the hope there. the people were so kind, it was that midwest, nice, mixed with hope and people want to stay there. it is their home. they don't want to leave. most of the people, very positive about it. but they have to retrain, and they have to change their mindset. governor granholm of michigan, we sat down with her when we were in detroit, and she said, people have to get out of the mentality that they can graduate from high school and get a great-paying job at an auto factory and make $100,000 a
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year. that's what a lot of the autoworkers were eventually making. you can feed a family well on tha that. she said that's not going to happen anymore. you have to transfer to the film industry and she's big on the renewable energy industry coming to michigan. i have hope for detroit. the people there are fantastic. >> charl anderson said, they have to diversify. it can't just be the film industry. they have to diversify. >> exactly. >> it's interesting to see what they are working on. thanks, poppy. are you middle-aged or out of work or do you know someone who is? grab a pen and paper and we'll tell you how to take control and land a job even in this market, even if you're over 40, next. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen... your power chair will be paid in full.
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soon joining the ranks of those aged 65 and over. the graying of the american workforce is only just beginning, so why, then, is it so hard for those who are middle aged and unemployed to find a job. our next guest says it doesn't have to be that way. he's the ceo and founder of jobs 4.0, a job search engine that is geared specifically to those 40 and older. welcome to the program. i want to look at the graying of the american workforce, because the statistics from the labor department pretty clearly show it's a workforce getting older and older.
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i mean, are employers up to speed on this? how the workforce is changing. >> they're not acting as if they are, christine. what we see in that chart there is a rather startling trend. you know, over the next seven years, about 76 million americans will hit retirement age and only 46 million are going to come and take their place. so, for next year, for the first time in over 50 years, the median age of the workforce is going to be over the age of 40. which means that employers really should get on the bandwagon and start attracting older workers and in an ordinary market older job seekers would be in good shape now, but, of course, with 20 million americans now either unemployed or underemployed it's once again the older workers who are getting the brunt of it. >> there are six job openings for every position out there. >> right. >> so, for someone hiring a job, there's a lot of people to choose from. how to hire a job when you're middle age? when you're young, on your resume, you focus on potential, i'm energyic, i'm flexible, if you're middle age and over, if
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you're over 40, you want to focus our accomplishment, but you don't want what you call the gold-watch resume. >> by which i mean, an older job seeker's resume is typically an exhaustive list, every milestone and every achievement and promotion they ever had. >> it looks like a eulogy or obituary at times. >> a potential employer will say, i want to give them a gold watch for all the work they've previously rendered, but do they have anything for me? i want them to work for me for the next ten years. tailor your resume for the qualifications of the job going forward. >> you have an example of this. >> we got a good example of a salesperson who had meticulously listed everything about their past. they traveled all over the cun there i and had all the achievements and won all the awa awards. you took this resume and you thought this person must be so tired of traveling, why would i want to hire this person. instead, change this resume and
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say i traveled around the country and i have these 75 contacts that i can put today for you when i start. >> how can i make money from you. >> exactly. >> very quickly, you have best employers. if you are 40 and older, you have a lot of experience, where should you be focusing, particular companies? >> our business really is to find employers that reach out to employees of all ages, they want to value people for those skills and their experience and won't disqualify them because of how many birthday candles were on their cake last year. cease are some of the better companies, metlife, ge health care, deloitte, home depot, stryker, they have hundreds of jobs all over the country and older workers, you know, should be pursuing companies like this, many others. >> steven greenberg, and he has another piece of advice. look around your town, who is sponsoring the fireworks and the picnics and the little league teams, if they are not hiring, they have money, they are making good, they might be a future place to look. >> 65% to 80% of all jobs are
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never advertised. >> yeah. >> so, you got to find the employers and not the jobs. >> a little sleuthing there. thank you very much. it's time to get revved up. ali is going to ride with the founders of orange county choppers.
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christine, you know that from time to time we get assignments that are simply no fun, but this particular assignment for me, well, felt like it was no work. i took a trip up on my motorcycle to newburgh, new york, to have a chat and a ride with paul tuttle sr., he's the founder of orange county choppers, and star of the tlc show "american chopper." that's us. me on the left. paulie on the right. we talked about the bike business and his view from the top. take a look. >> reporter: a multimillion dollar business. a hit reality tv program. and a 30,000-square-foot retail store that's become a shrine for
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his fans around the globe. >> thank you. >> you're welcome. >> reporter: with all this, you'd think paul tuttle would want to take a vacation once in a while. >> i love what i do. this is -- you know, i don't take vacations. this is my vacation. >> reporter: senior as he's called around the shop, is the founder and owner of orange county choppers, a custom motorcycle shop with a clientele of celebrities, athletes and politicians. tell me how you got started with the motorcycles and how it became the business that it is. >> well, i mean, i had a fabricating business for 28 years, and when i started my business in 1973, i had a partner that was a real guy from brooklyn that was really into motorcyc motorcycles, and back then they did have after-market parts so you had to do everything yourself. so, i would watch him stretch stringers and frames and whatnot, and i found it intriguing and that was kind of like the beginning. so, it was more about building bikes than riding them. zero gravity we all this. >> reporter: with the price tag
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of a custom bike ranging from $24,000 to $120,000, senior's not immune to the gravity. >> reporter: with the price tag of a custom bike from $2,400, to $125,000, seniors are not immune to the effect of this recession. >> the economy here is like most places. it has been bad. i think it is getting a little bit better. but people who are being very conservative with their money and they're not buying toys. so it is a different type of person that comes in here to buy bikes. i'm very aggressive person. always, my 38th year of being in business. so, failure is not an option. >> reporter: fame hasn't come without a price. his sons, paul jr. and miky, featured in the popular hit tlc show "american chopper." >> did you fire paul? >> yeah. >> reporter: have quit the business that senior thought would one day be theirs.
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>> reporter: in the tv show there was a lot of tension with you and your family. was any put on? or is it real? >> no, it is real deal. it's life. nothing stays the same. changes is good. i welcome it. we could start with this here. >> reporter: you look healthy, energized. but you are very central to this business. will it go on if something were to happen to you? >> yes. yes. yeah. i mean, because it -- it's a business but it means a lot more to me. my whole goal always was for the family to continue the business. but that's not happening. you know, so if i go, there is going to be somebody else who will continue the business because that's what i have been wanting. >> reporter: not just for his sons, senior has a message for the younger generation of workers out there in his new book, called "ride of a lifetime." >> i started out of a pick up truck, no money, no family background. nobody to say here is a dollar. so i am used to old school.
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i am used to using my hand. i am used to, you know if i got to clean the bathroom i will clean the bathroom. people today, younger generation, they think that they can just, you know, have a specialty in what they're doing. in buyness you can't do that. you have to be able to do everything. >> reporter: surrounded by all the bikes and being a motorcycle enthusiast myself. i couldn't resist going out for a ride with senior. >> would i do anything else? no. this is my life. this is what i love. i'm here, seven days a week. because i want to be here. not because i have to be here. >> you can tell why he has done so well with his tv show. he has a lot of passion about that. fun to be out with him. frankly, christine. once in a while fun to have a job that has me go on the motorcycle. >> my glam assignment is going to the resh redepartment. your glam is riding a motorcycle. >> that is why we are so good together. >> all right, that was cool. very cool.
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>> next, we'll go where few shows dare to go. do not move. you are not going to want to miss this.
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we have been doing the shows where we are not in the same place. we have been traveling. people ask me, what are you
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reading? what do i always read, newspapers and business books. that can be a bit of a downer. here is the business book i need to read you an excerpt from. listen to this. there was no mistaking who he was, the silver hair, those beady eyes, the sheepish expression that makes him look like a guilty hamster. hello, he said, i am bernie madoff, i am about to offer you an investment opportunity of a lifetime. end quote. i cringed. madoff had been in prison less than an hour and had made the classic rookie's mistake never set up a ponzi scheme during your first week. >> you are talking about our friend, the sattirist, comedian, funny guy, author of the new book, "who moved my soap" the ceo guide to surviving prison, the bernie madoff edition. you had to update your corporate crime book, so many guys keep coming down the pike, right, madoff was made for you wasn't he? >> absolutely. more and more, we have allen
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stanford, has been indicted see how that plays out. a very upbeat message for them, the book. i am just saying you are trading one gated community for another. don't worry. >> let me ask you about ruth madoff, could she possibly have been involved. she has not been charged. >> the fact that she didn't know wasn't plausible until we started hearing the stories about mark sanford, the governor of south carolina. >> that's right. right. bernie madoff did tell her he was hiking the appalachian trail. a good cover story when you are running a ponzi scheme. perfectly fine. we are making too much of this. a lot of corporate ceos never speak to their wives, we know that is true. who knows she may have known very little. >> when you spend hundreds of millions of dollars with some one, you think you know them. this is not the man i co-own nine homes with. >> she was shocked and appalled. all way the last to know. >> there is a great reference in the books to all these things that you normally see in self-help books pertaining to
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ceos. at one point, if jail is not going to be about being fun then what's the point? >> that's right. it should be fun. this whole book is really like those corporate self-help books. like the seven habits of highly effective prisoners. i am really trying to get people to be proactive behind bars. there is no reason to be the end of your business career. >> tell me about the google chrome, it's google, they're moving towards taking over every part of our computing life. they have the system. it will be like an operating system like microsoft windows. >> google chrome is a brilliant idea. they have been hyping this, google chrome, we want to know more about it. how do we do that. by googling it. so clever. we are just googling more. i am introducing a new system called, borowitzreport chrome. you will have to go to borowitz.com to find out more. >> a new iphone application that has to do with alaska governor sarah palin, what's that? >> it's called the ipal.
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this actually translates the speech of sarah palin into english. real-time text. it's fantastic. very useful. hold it up to the tv. >> hey, listen. lot of talk about our currency, about our debt, china is the biggest holder of new u.s. foreign debt. what's the consequence of this, andy? >> i have just been reporting on this, big news. they're going to buy the rest of the united states. they don't currently own and they're going to rename the united states, panda gardens. it's a big deal. this is going to be huge news. >> andy, we cover a lot of serious subjects around here. for any one who could not. possibly misses the point. trying to have fun. you have to laugh about your money. >> otherwise. >> you will just cry. >> that's why you are here. andy, the book "who moved my soap, the ceos guide to surviving prison the bernie madoff edition." get it quick. another edition with some one else on the cover in the next year. we'll be talking about it.

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