tv Taiwan Outlook PBS October 23, 2013 11:00pm-12:01am PDT
>> we will look at the financial struggles and some of the biggest u.s. cities. we will find a list on what is happening -- find out the latest on what is happening with detroit. and why aspiring authors are bypassing big publishing houses and reaching out to the readers although their own -- all on their own. the government shutdown in the infected may have had on the u.s. has a market to -- for more on this, will the street today thinking live in the newsroom with more. >> first, the newly -- the good news. the u.s. has a market has picked up this year. the national median price for a home in september was just under $200,000. that is an 11.7% jump from a year ago. but even before the government shutdown, it seemed there there are signs that the market might be calling -- might be cooling.
but the worry of the shutdown is this. 25% of all u.s. mortgages are backed by one u.s. government agency or another. most of which would close the 16 -- most of which were closed and the 16 days of the shutdown. we also had the internal revenue service furloughed. that meant income verification checks can he carry out. that is now an essential prerequisite. and while we wait for the october figures and trepidation, fannie mae, one of the big mortgage entities had this warning. in particular, the contentious negotiations that led to congress raising the debt ceiling may have a lingering effect on consumer attitudes and spending as was seen calling the 2011 negotiations. that of course from fannie mae. but as they'll say, housing markets are always local. and you might expect the housing market here in the washington,
d.c. area come america's capital, would be as dysfunctional as the government here. but so far, sales are up 12.1% compared to september last year. we will learn the full impact of the shutdown at the end of october and throughout november. accu. -- thank you. >> brad, good to see you again. nathan's question is a good one. did the shutdown have a permanent impact on the housing market? >> i think that there has been a lingering impact on people's confidence i think americans are a bit panicky about what is ahead in terms of the economy. but i think that will be paired with high register its in years in the future. i don't think it will be a problem in 2014. but as we go further into the
future, higher mortgage rates will be a problem. hopefully, by then, the consumer confidence issues that we are sensing right now will start to subside. hopefully, we will have more job growth that will offset that. >> we talked about housing starts and our guests said that it was still half the worth at the height of the housing boom. my response was, well, just because they arc building a lot of homes, -- they are building a lot of homes, doesn't mean it is a good thing. is the housing market healthy the way it is now? >> here we are about a million housing starts a year at a current pace. a steady, normal amount of production, it would be around 1.5 million. what we have just gone through is warehouse full formations were historically 1.3 million to 1.4 million per year. in 2009 to 2010, it fell to
around 500,000 here. much, much lower. >> can i translate that? when you say household formation, you mean people getting married and having kids? >> is not exactly limited to that. it is any time that somebody goes out and strikes out on their own. we could be a 30-year-old was living in mom's basement. he moves up because he has more savings in the bank and he can buy a place or get an apartment. that is a household formation, too. so it is not just a family starting. it can be two people that unfortunately get a divorce. that creates to households of one. what took the number so low is that people were doubling up for economic reasons. they were getting roommates. there were record numbers of people in their 20s and 30s moving back in with mom and dad. >> you bring up a good point in
for some people, the dream of owning their home isn't the same as it was 10 years ago. some say i like to read because it allows me to be mobile and if i have to go to another part of the country i can move it >> -- i can move. >> there is also a whole group of people who say i don't get this american dream thing. so my parents withdraw kinds of rumbles with ownership. i would rather rent. but surveys do show that, sooner or later, even the generation y group that are currently renting like crazy will want to get their own home, to own their own home. so that is the longer-term trend. we are experiencing a shorter term adjustment. i think the ownership stigma will be going away in the next couple of years. and then people will say any dissing the family home. and then they will start building equity. >> looking across the country, a
lot of people think that the u.s. is one big plays. but it is really not. it is a but of different places. any parts of the country where you see strength in where you see weakness? >> iq said, it's a mixed bag. houston, texas -- like you said, it is a mixed bag. houston, texas is really doing well. florida is really relevant -- is really rebounding. that despite having a judicial foreclosure process. unlike california. it is a nonjudicial state. so they were able to go through foreclosures but more quickly. phoenix has risen from the ashes, phenomenal increases in home prices. phenomenal increases in housing production. and las vegas itself is starting to come back in a big way as well. these are the markets that went down the hardest. they are the ones that are coming back the fastest. >> fascinating stuff.
rad hunter from national city. it to have you on the show. we will also talk about the united kingdom. a sudden jump by 10% in prices partly by a government program to help. i'm -- helpful time buyers. >> many people aspire to own their own home, making property a major driver the economy. part of the reason the government helped to buy a mean to fix a homebuying drought. the u.k. government guarantees 15%. but a survey out this week from right move, britain's biggest website property agency has added to worries that the scheme may be creating a london bubble.
there is a junk of over -- a jump of over 10% between september and october this year. an annual rise of 13.8% with more cash chasing a static property market did even members of the government have urged caution. >> of course, we wouldn't be able to moderate it even turn it off. >> london isn't typical of the u.k.. where asking prices generally have risen .8%. prime minister the property driven by the world superrich has reached $3.5 million. many are moving to former troubled spots like extent -- like brixton. wine bars and sushi restaurants alongside markets is that cater to west indian tastes. the demographics is changing
rapidly because the only people who can afford to buy property. but perhaps london's hoppity prices are in a bubble yet. but the figures are we truly council of mortgage lenders, the people who put up the cash to buy privately. -- to buy property. >> coming up, we will talk about detroit and what possible solutions a have and we will look at another city. san jose is home to big tech names, but it also has some serious financial problems. details coming up next.
>> will come back. the bankruptcy filing of the summer made headlines around the world. now a judge's tried to determine whether the city is eligible for a financial overhaul. detroit has more than $18 million -- $18 billion in debt and bills. public rockers are worried that the government's plan will affect retirement benefits. packard sit down and say that the city should sell off public utilities and artwork. experts say that the outcome of this case will be an example for other cities that are also struggling. the city of san jose is considered the heart of silicon valley, along with the giants like ebay, adobe, oracle, cisco, apple to name a few. companies are doing fine. they are rich. but san jose's not. a budget crisis has led to a bitter fight between the city's leaders and its workers.
>> it is silicon valley's largest city known for its tech companies that come from all over the world. profits that many -- profits at many of these companies may be on the rise, but also some stribling statistics, like murder rates in burglaries. many cause the -- many blame the criminal rise. >> we have had to cut community centers and public safety and layout police officers and higher fighters. so it is a huge problem for the city of san jose. >> the mayor has taken extreme measures to fix the city's budget shortfall. his plan would cut the pensions of new city workers and force current city workers to pay more out of their own pockets for benefits. although voters approve the plan by a 70% majority, city workers led by the local police union sued saying that it was unconstitutional. >> we are not detroit. questec says that, despite all san jose's problems, it has never been close to bankruptcy.
he accuses the city's leadership with scared tact cents -- with scared tactics to make talent leave the city. >> they asked for a certain package and what is due to them legally should be honored. >> a costly finds himself aligned with democratic mayors plan. is that having been a police officer for 14 years, he says the city simply could not provide adequate services to residents without forcing city workers to pay more. >> i would much rather have someone paying more for their benefit during their earning years and get to the retirement years and find that what they thought would be there is no longer there. they make for some tense relationships with some of my friends? yes. in fact, i have members of my bridal party who were some of my closest friends who don't speak to me anymore over this. cities will watch closely. looking for any strategy that will help combat rising pension costs ver.
promises made to state workers and the problem is that the deficit continues to expand. they money that states have set aside for retirees and their benefits versus the amount that they need fall short by almost 1.4 trillion dollars. for the first time in five years, global index shows that the u.s. has slipped out of the top 10 for the best countries for state pensions. european countries made at the top five with denmark on top of that list. the study describes the system is having the features, but with major risks. living in the summer is used to be preferred by a lot of families. but now they are not really that heavy to move back into the city thanks to less crime, but are schools and better transportation options. that trend is displacing some who actually live in the cities. >> after spending most of her life in the suburbs, monica
sparks recently bought an apartment in downtown denver. pre-k's i walked to the grocery store. i can take my guy for a walk and i can go to restaurants. chris monica was tired of the suburban sprawl that requires driving everywhere. >> i would live in these mansion-like homes and we were isolated. the energy is really important to me downtown. i really have a sense that people are still alive. but her move to the city is part of a wider trend. in 2011, for the first time in 100 years, the rate of growth of america's urban population out paste that of the suburban population. >> than various runabout in front of this. the city is out of that riordan is a trend trend. it happened really fast in denver and seattle and portland and austen. >> like many downtown neighborhoods, parkhill has grown in populated as it has
become -- in popularity as it has become safer and schools are better. but that has led to her -- to skyrocketing real estate prices. denver is seeing a chirping divide between popular and gentrified areas. it is mostly white residents in poor neighborhoods that haven't seen any of living conditions. the city invested entrance will -- transforming stapleton into a massive residential neighborhood and homes are in close proximity to stores and restaurants. it is designed to promote interaction with neighbors. >> the front of the houses the porch and there is the detached garage in the back. it really moves your outdoor living space to the street. >> the critics complain that stapleton has the same downfalls as other popular urban neighborhoods. as rice's spy, any hopes for any
real socioeconomic and ethnic diversity is disappearing fast. >> the man who predicted the 2008 u.s. housing crash and the recession is known as dr. jim. down the road are being -- dr. doom. now dr. nouriel roubini wants a new name. his latest insight says interest rates around the world will gradually rise and he is suggesting investors pay close attention to stock market exposure. he is also less pessimistic. he says the economies of the u.k. and japan are showing signs of growth. coming up next, we'll talk about ireland where the economy is getting better. we will take you shopping in our report. and women are giving the retail industry boost. they love to run, jump, throw and hit. that is your hand.
>> welcome back. it has been a rough few years since the 2008 economic crash in ireland. but some parts of the economy are recovering. the consumer confidence. retailers say that shoppers are now willing to spen more. but not all types of retail are on the mend. according to economic and social research institute, ireland's consumer sentiment rose to a six-year high in september. boosted by positive news with jobs and property markets. that is welcome news for retailers who hope their financial struggles over the past few years are mostly behind them. retail businesses say they now see an improvement in spending. although customers are still demanding a lot more for the money. >> a lot of the products are high-priced tonics. we should -- high-priced
products. we offer quality and value. >> demand hasn't increased in every market sector. retailers say ladies fashion, pharmacy and home interiors are still suffering. the collapse of ireland's residential property market in 2008 seriously damaged the retail industry, such as home interiors. for as mrs. looking at recent consumer sales. >> -- four businesses looking at recent consumer sales. >> updating their homes durin. from the blinds to interior furniture, that business. creswell conditional -- while conventional retail sales are improving. >> it is expected to go to $6 billion in a couple of years. four percent of all sales in intro -- in ireland is online.
>> with the industries that would hit the hardest now starting to see some sales growth, analysts say that the country still has a long way to go before it sees strong retail sales again. >> here in the u.s., retailers are struggling like their irish counterparts with consumer confidence taking a hit from the recent government shutdown. but some are booming, especially athletic here for women. >> one of the biggest money makers in the college retail sports market is licensed roddick's you can see in any alleged gift store. from the next assigns to clothing. it is about $4.6 billion in sales a year. and one of the biggest drivers is the female consumer. ask each year, there are more women who identify themselves as truth and the college. that we also see now that manufacturers are more interested in what women want.
>> female college sports fans are doing more than just cheering on their favorite teams good they are buying apparel like t-shirts and jerseys to wear casually and at games. an espn sports poll said that 89 women identified themselves -- 89 million women call themselves sports fans, which means a lot of shopping. >> women comprise over 40% of college undergraduates. you look at sports in general over the last 30 years, televised college sports has skyrocketed. the fact that they are creating now with well-known -- you are the branding recognition with well-known designers advertising in "marie claire" and "cosmopolitan." >> sports marketers say that
retailers can no longer take it and trinket. the strategy used in the past which involved to just -- and shrink it. the strategy used in the past which involved just making smaller sizes and pastel colors for women. >> if someone was more of a casual fan, they wanted more of a disaster -- more of a bedazzled look. if they were a true sports fan, they wanted with the team was wearing. >> women's apparel retail sales exceed $350 million. it is expected to grow. that is a slamdunk for college sports retailers. >> joining us for more on women and sports and shopping, we are joined by jack luckett, ceo from plunket research.
women are becoming bigger fans of team sports and they want to show it in the closing where can is this also a global trend? d.c. women around the world increasingly wanting to support their favorite teams? >> certainly, women are getting more interested in sporting apparel of all caps. and to some extent team sports. so, yes, as incomes increase in emerging nations and big and important team sports continue to read, you can continue to see this. >> why do think women are not getting much more interested in team sports or were they always interested in them and now we do see that there is actually some gear, clothing that is marketed to them so it makes it more appealing for them? >> i'm not sure that women's interest in team sports is increasing. i think it is always -- it has always been reasonably strong. but there is an impact in the united states, for instance, the
high percentage of women who are now universities and therefore get interested in university sports. there are more women in universities today than there are men. and more women are university graduates coming out of the schools every year in america than there are men. so they have learned to like their teams. they transfer some of that in the united states at least two proteins. site -- two pro teams. >> women are exceedingly spending money on spotting goods. cross-country gear grew among women. are we becoming more healthy and more interested in sporting goods as well? >> certainly people want to try to become healthier. the number of gym memberships in the united states is about 50 million people. in the gym ever ships are growing pretty steadily around the world, particularly in emerging markets.
some people join the gym and want to buy the apparel for it. and it is also a certain amount of desire to be more casual and sort of cool looking at the same time. so maybe you can be very comfortable and casual but still wear a nikes swoosh logo as we do so. or on the upper and, you can wear lula mend clothing that is -- lulu lemon clothing that is expensive but cool looking. i see it more and more on women who are shopping for things like groceries and supermarkets. it is deathly a fashion trend as well as an interesting's work -- an interest in sports and gym memberships. >> from a marketing standpoint, how should they market women? what is it they need to do to make sure women will come back to these brands and be loyal to them? >> i think there are two things that are really important.
one is getting the endorsement of really big-name women athletic stars. the williams sisters in tennis, for example. that is a really big and loyal brand. really smart retailers and manufacturers can take advantage. but there are things you can do on a local level that are less expensive if you are a smaller company. i will go back to lula again, which is the massively -- lou lemon again, which is the massively popular active gear. i went to one this morning in houston. they had perhaps 50 or 60 women in the store during free yoga lessons around 6:00 and the morning. so it's wanting to build a brand and build a relationship at the store level. >> so it is building a community around the brand.
i want to talk also aside from sports apparel, we see that women in general are axing their purchasing power like never before. one study says that they will control the two thirds over the consumer wealth in unit states of the next decade. we see women graduating in high numbers from colleges than men. do you think that is the link that is why we are seeing this greater purchasing power among women? is that about them getting better educated and getting better jobs? >> absolutely. women's incomes are rising much faster than men's. there are more women graduating from very high paying -- i should say, there are more female dentists e'en graduated today than male. there are more female physicians and mental students. female incomes are simply growing faster than men's. >> this is desolate time for the women. it is girl power time. thank you for joining us.
straightahead, billing profits surprise again despite ongoing problems with its flagship airliner. it looks like it will be smooth flying for much longer. plus, honing in on a solution. red hot are pretty prices making it virtually impossible for muslims to afford homes. but that may be changing. find out how. >> headlines at this hour, german chancellor angela merkel has called president obama after receiving information that u.s. intelligence may have targeted her mobile phone. she termed it an "serious breach of confidence." france, mexico and brazil have raised similar concerns about
the u.s. spy on their citizens and their leaders. despite long-standing tensions over drone strikes, u.s. president barack obama and pakistani prime minister sharif repligen corporation on security issues. the two leaders met -- prime minister sharif have pledged cooperation on security issues. china and india are striking a positive tone in their relationship. they met wednesday in beijing. the two countries signed an accord to cooperate on border defense. the license -- trade was also the agenda. those are the top headlines. >> welcome back.
the nasdaq and markets in new york. >> in washington, d.c., i am philip kent. we start with boeing. they beat estimates. that is helping the company raises fourth year forecast despite problems with the dreamliner. several health insurance company ceos have met with obama top advisers at the white house to find solutions to the mess online and the glitches that are making it difficult for a lot of people to sign up for obamacare the other website. also, we are following developing new on obamacare and the white house to changes in the plan. the indian prime minister is in beijing and is expected to discuss trade and economic relations. >> we all know how china's property prices have skyrocketed in the last few months and the record growth in september only highlights the runaway trend.
that has made it virtually impossible for families to buy a home. and now the government has unveiled a new program designed to help them buy affordable properties. grace brown joins us live from beijing. >> the local governments new affordable housing scheme launched on tuesday and it has targeted millington families. the government will divide 70,000 units of price cut houses before the end of next year. the houses will be 30% cheaper than those in neighboring areas. but they also have to return it third of their profits when they sell in five years. the government hopes the gap in policies that previously only cover low-income families can now be filled. beijing says that residents only have one logistic property and can apply for the city's new scheme. for nonresidents that do not have any houses in the city are also poseable. >> china has invested heavily in
nationwide affordable housing. how effective has that been? >> yes, it has. about 880 billion yuan or about 445 million to -- 445 billion u.s. dollars. it expects to build 35 million such owns the end of 2016. so china seems well on its way to achieving the ambitious target. construction is the problem. the issue is ensuring fair allocation. corruption has been a major obstacle. earlier this year, the director of a municipal housing bureau was detained and accused of illegally owning 29 copies, of which 11 were affordable homes. in august, the national audit office estimated that 5.8 elaine you one -- 5.8 million
yuan were mr. at the last year. -- were misdirected last year. >> we are joined by the author of "tiger woman on wall street." thank you for joining us tonight. i want to talk about it about home prices in china. in september, we saw a new home prices in beijing that rose 60%, which is compared to the same year ago. our prices out of control? -- are prices out of control? put it in context for us. >> what we see in tier one cities, which are the -- the demand is high and likely to stay high. i think the government is working on the supply with infrastructure and transportation in some ways to connect the outskirts area to the center of the city.
in a way, that effectively increases the supply of homes stock. and that is working. on the demand side, i think one of the reasons that demand is so strong is because there is limited viable investment vehicles in china. now you have wealth management product, which is quite dangerous. the stock market -- i'm sorry, the property market. one way to normalize the demand investment vehicles.able- so the common chinese people can invest in. those are the short-term measures that the -- that the government is engaging in to improve the property market. >> so even though it is heated up, you don't think that china is any real estate bubble right now? you are not one of those people that believe that? >> china is so large.
it doesn't make sense to include all markets as one, just like in the u.s.. detroit is very different from california. california is very different from new york city. >> let's start with tier one. do you think it is a bubble? >> the irony is that we see high and rising prices in tier one. and i see the least sign of bubbles. whereas in tier three, smaller cities, the price is low and not rising. there's oversupply because a real economy is not picking up. in those cities, think there are signs of a bubble. so it's a mistake to paint a broad china market picture with one brush stroke. >> let's see the smaller tier cities, if the bubble were to burst, would it he as bad as it happened in the united states? >> china is drastically different from the u.s. nine in the u.s., -- in th rejig from te
u.s. in the u.s., going to 2008, it was a livered bubble. in china, the households are not levered at all and the mortgage payment is such that china is 20 years versus the u.s. which is 30 years. the size of the bubble and how it will play out. but the margins in china as well, aren't they variable rates?. x and -- isn't there a risk that, if interest rates rise dramatically, there could the and economic problem like in the u.s.? >> outflow is such that payment is traded toward the first payment, the first two years of the payment. so it is significantly different from the u.s. which is spread out through the course of 30 years. but we also saw happy stops fall
recently, and speculation that china will come up with regulation to cool down the market. do you expect the government to implement more changes in its policy to cool down the housing market? >> i hope not. in the short term, the government can work on the demand side i offering more viable investment vehicles. and on the supply side by building infrastructure. in the longer-term, the government should brief -- should focus on restructuring -- rebalancing the economy. >> what other kind of vehicles do think that the government should allow chinese investors to invest in so that there wouldn't be too much investment toward housing here i. >> they can open up the markets
to other chinese people so they can open up overseas and that would put pressure on the demand. >> thank you so much cared after the break, find out why amazon.com shoppers will think twice about making prices online . and why some aspiring writers are not waiting to be discovered by big publishers. details next.
-- your own book? now maybe the time. a trend is turning aspiring writers and to published authors. that is the freelance travel writer and self publisher welcoming me into her manhattan studio apartment where she worked on her first novel that got positive reviews. >> to hold this in my hand, knowing all the time it took to make it, it is a wonderful feeling. >> to do work on a collector of infections for four years. she decided to self publish. >> you don't have to accept no. i wrote for a niche market. i wrote a romance novel. so i decided i would the my own yes and figure out how to do it.
>> she went with amazon's online services using kindle direct publishing. the upside is that many online self mushing services are low- cost or even no cost. the downside is that getting a book out on your own can still be expensive. judith paid out-of-pocket for riding horses website developed and professional editor, the artwork and it's bliss the campaign -- a publicity campaign and a book tour. that the creative control of her labor of love trumped the downside and is what is driving the trend that is turning the page on the traditional publishing industry. if you have read "50 shades of gray" this may not be a jane austen novel, but it has topped the seller lists around the world and sold more than 79 copies. yes, this one was self published.
and more people are acutely aware of this disruptive trend. publishers weekly has been in the book business for 150 years. they offer a supplement that cater to sell publishers who, according to them, collectively turn onto it 50,000 titles a year. >> mainstreamer via media. -- mainstream review medium. an outpouring of books and opportunities, ramping up titles and print on demand can it gave authors their paternity to print on their own and small opportunities and more more people wanted more control.
i'm surprised at how rapidly it has gone in the last couple years. technology has changed. e-books have changed. so technology has escalated it. >> it has also taken storytelling to an interactive level. >> the first horror novel got a positive reviews to spur him on. now he hopes to take the zombies from his second tour book -- second horror book into the realm of gaming. >> we have a funding goal of $50,000 and it will be based on the characters and events in the book. so you will be able to fight the same battles as the characters do and travel with them and have the same inventors -- same adventures that they do. each medium does the same thing as video movies. we are try to engage all five senses to engage the storytelling. >> weather.
-- whether video games or a strong social media following, the first book and bearing bigger opportunities. -- the first book can bring bigger opportunities. traditional publishing houses are adapting by scouting talent based on their own fan base. shoppers on amazon.com may be forced to buy more stuff than they want to. and spend more. amazon has now raised the minimum amount the shoppers have to spend to get free shipping. online purchases have to be at least $35 to qualify. the change will/shipping costs for the company and encourage customers to sign up for amazon prime, the $79 a year service that offers free today shipment for any purchase. the announcement comes a few weeks before the busy holiday shopping season when sales by rocket as well as a shipping costs.
inroads in the u.s. hoping to carve out a niche for themselves, more are gathering at silicon valley's mobile conference. >> dr. zeke chances he hopes to get a hole in one. it is an analysis at. he is one of the many chinese entrepreneurs attending the mobile conference in san francisco. they recently raised $50 million for future company development, proving that mobile gaming is a huge prospect. >> we are advocates of the mobile gaming in china. there is revenue to be made in the china market and we want the top international space to work with us. >> fishing joy has a cult
following in china. it also tiring. free open-source development engine being used by western games. china now has more than 330 million smart phones in use, exceeding all of the cell phones of any kind active in the united states. this is a wonderland that -- so it is no wonder that they are setting the agenda when it comes to the mobile space. when they want to expand to the united states, he helps them bridge the gap. >> in the path, it has always been people who get a u.s. business model in china. but now you have game development, application and sometimes you have china develop a little early and have the model come back to the u.s.. >> this conference has a yearly sister event held in beijing and many u.s. mobile players will attend.
strategies are very different from their american ones, recognizing that knowledge of the local market is critical to any cripple expansion overseas. -- critical to any expansion overseas. >> preparing for the end of the world and or the zombie a cop... -- zombie apocalypse. the prep spurs -- the preppers and their take on armageddon. >> live in hong kong with eurasian market up date you a slow start across region. the china pmi number coming in at a seven-month high. suggesting good news. the naked 225 is down around 0.26%. prices rising sharply in china's
big cities. initial data now explains part of what is feeling that. bank lending to the china private sector hit 600 billion yuan. year-over-year, that is about 44% of, giving assistance of the difficulties policymakers face. the yen working its magic on hitachi in japan. also, tokyo electron, the semiconductor equipment maker had happier projections. it bodes very well for japanese earning season and is set to kick off the report in japan. >> welcome back. these are the stories that we have been covering so far.
u.s. home systems unexpectedly fell for the month of september and analysts say that the government shutdown and more homes entering the market are part of the issue. and china is making housing more affordable for its systems. this came after data shows that the housing there showed record growth in the last month. finally, sports fans, women especially, are helping the u.s. retail industry. women are buying more athletic gear and clothing can their market value in terms of what they buy is $4.6 billion year. now we turn our attentionthis cd quickly becoming a big business here in the united states -- preppers.' these are people who are preparing to live for months and months at a time in the event of a disaster. it doesn't stop there. one group is bracing for the invasion of either zombies or aliens. investigating more than the business of prepping.
>> there are those who believe we prepared now, that the end will come in a flash. others point out that nearly 100 years ago, a pandemic flu outbreak killed as much as 5% of the global population. >> within a matter of months, as many as 50 million would be dead. >> this is where we keep just a little bit of this and a little bit of that and a little bit of the other. >> there are a growing number of people in the united states who call themselves preppers, prepared to live on their own if the worst happens. >> sleeping bags, dry food, canning supplies. >> james knight says he is a practical man. >> there are those who prep as
they know they need to and others because it is a hobby. for me, it is a hobby. >> rice and other grains are frozen and vacuum sealed. >> of things that destroy food are oxygen and uv sunrays. what you take care of the oxygen, you put it in a mylar bag and >> catering to propers -- in a mylar bag. >> catering to them is big business in the u.s. >> it tells us the people are serious and concerned about this. again, two or three years ago, i never heard of it. >> slap the word survivalist on and people here want to buy it. the tactical look is big year. there are food and first aid and some items are cheap. >> how much? >> one dollar.
>> the most expensive we found was $290,000 for a 2800 were foot concrete and steel reinforced underground home. that's right, underground, away from all things bad. >> check out one of our structures. we have all of the amenities and finishes of the traditional house. the only difference is we don't have windows. >> again, living like a gopher, to save -- but safe from this. in the wind that causes this. and perhaps even this. >> ladies and gentlemen, i think something is happening. [dramatic movie] >> most of the middle of the road preppers, they are the aluminum hat crowd. those people who put aluminum on
their head so that the government cannot invade their brains. >> first of all, congratulations on finding the business angle on this. i thought it was a crazy story but i stand corrected. these are people who are happy to have an extended time to live off of basically nothing. what about electricity? wexler is all kinds. even have generators -- >> there are all kinds. you can have generators. some are putting solar panels up. if something happens -- a big ice storm went through an atlanta. his neighbors were out of power. he cranked up his generator, turned on the satellite tv and he was living fine. >> joking around aside, some of this is extreme. sme are preparing for months and months. what is the realistic amount of sort of food and water shoyou
should set aside? >> i spent a lot of time living in new orleans after hurricane katrina and i learned to take that very sicily. it depends on how big the storm is and where you live. the you should have water and stuff on hand for at least three days in that they always tell you. that is what you always see a big run on supermarkets before any kind of ice storm or possible hurricane or stuff like that. but these people enter trained to avoid something like that. >> you will be shot. the probability of dying from a to nominee is one in 500,000. -- from a tsunami is one in 500,000. you're more likely to die in an airplane than from all of these different natural disasters. fair enough? here is my question. there are so many other dangerous things, like crossing the street and things like that. why do people spend so much time to prepare for something that is
honestly not likely to happen. >> it is a valid question and i think you heard mr. knight talk about -- he is a hobbyist. it's partially fund but rooted in something serious. look at what went on here in washington, d.c. the government shutting down for 17 days and they don't want any part of these people in the front line of defense and taking supplies. we want to go on a hiking trip with sean caleb's. thank you very much. >> be prepared, that is boy scouts. that is their motto. [laughter] >> she doesn't need any flashlights. we will see you tomorrow.