tv Real Money With Ali Velshi Al Jazeera September 12, 2014 2:00am-3:01am EDT
america's treasured family, the roosevelt roosevel roosevelts, and the conversation continues on facebook, google+ ♪ the islamic state group rakes in millions of dollars from a black market oil racket, i'll tell you how america could put the squeeze on it. also america is getting ready to drop the hammer on russia's hunt for oil. i'll tell you how some american companies could feel the impact. plus the great middle class migration, i'm going to tell you what has millions of american families on the move. "real money." ♪
this is "real money," you are the most important part of the show, so tell me what is on your mind by tweeting me or hit me up at facebook.com. ten arab states pledged to rally behind president obama's call to quote degrade and ultimately destroy the so-called islamic state insurgents who are reeking havoc in iraq and syria. that happened at a meeting with secretary of state john kerry. the united states is trying to get a brood coalition to fight the insurgents on the ground. and they are calling to take their fight to the islamic state in syria. turkey will be crucial to any effort, but so far it refuses to take
part, probably because the islamic state is right now holding turkish prisoners in iraq. one day after the president addressed the american people, the u.s. is rushing 475 more troops to iraq, and $25 million in immediate assistance to the iraqi military. this comes 13 years to the day after the september 11th attacks that killed thousands of americans on u.s. soil. rightly or wrongly, those events lead to two us-lead wars in afghanistan and iraq, and now americans are looking at new engo engoij -- engagements in the region. whatever commitments the u.s. gets in the end from countries in the region, the military responds to the islamic state's raise will only be half of the battle. the group is believed to have amassed a $2 billion war chest and it's growing.
the islamic state is said to support itself through taxes, smuggling, and extorsion rackets. all of that makes it next to impossible for outside powers to cut off its funding source. the most lucrative areas is believed to be the oil fields it controls in syria and iraq. patricia sabga reports. >> reporter: it's thought to be sthel f described islamic state group's biggest source of funding. sales of seized oil, believed to generate between 1 and $3 million a day. since capturing mosul in june, i.s. has siphoned oil from iraqi storage facilities. the group has also expanded its portfolio of oil fields which now stretch from eastern syria to northern iraq.
i.s. sells the oil directly to truck drivers for reportedly as little as $25 a barrel. the drivers move it through smuggling networks, and borders. >> their main objective is really getting the best price they can for the oil they sell, and then have the middleman sell it on the market, and that's the end of their really role in that supply chain. >> reporter: iraqi forces have recaptured two oil fields from i.s., but protecting the borders is crucial in disrupting the black market oil trade. >> turkey is the best market to parts. >> reporter: turkey has been criticized for turning a blind eye to smuggling operations, but with more than 500 miles of border to police with syria alone, cracking down hard on the
black market oil trade will be challenging, even if they are on board with western plans to take down the islamic state group. the low-hang oil as patricia mentioned was the 4 to 5 million barrels that i.s. siphoned from storage facilities in iraq, and i.s.'s syrian fields are operating at only 25% of their prewar capacity, while its iraqi fields are operating at a mere 20 to 30% of prewar levels. secretary of state john kerry next destination is turkey. for more on that, let's go to nick shiffrin. i was surprised that turkey was not part of that coalition, but
then they said there are 47 turks who are being held by i.s. and that figures into everything that turkky has to do? >> yeah, absolutely. but u.s. officials say there is a big difference between turkey is saying and doing privately and what they are doing publicly. publicly they are very worried about tha-- their diplomats. but behind the scenes in the days before president obama's statement last night in the days when president obama and the g-7 were in wales, i was told they were the most aggressive behind the scenes to really have a no fly zone even. since then what turkey can do is cut off the borders. ali for many many months there was a real open border policy of turkey. anybody who wanted to fight assad was given the red carpet
in southeastern turkey along the border. now that has to change. and the u.s. has really been pushing turkey to cut off that border so that some of the westerners who have been joining the islamic state group cannot get there, and they can't have the large stream of foreigners that it has had over the last year or so. >> it becomes very hard for americans to know what they are supposed to make of saudi arabia, whether they are friend or foe. it's clear that the saudis underwrite the extremist that goes on around the world. but the u.s. government said the saudis are going to host a training base for these fighters in syria, and then today, sitting next to the secretary of state john kerry, a saudi said that's not true. they issued a denial. are the saudis
lying? >> well, again, there's a public and private problem here. all of the governments in this region are very worried about the kind of radically. we have seen in iraq and syria, invading their own countries. so with saudi arabia especially they have been very concerned about radicals threatening the kingdom and the family of assad, so that's why they have been balancing this privately and publicly. they are absolutely going to host this training facility. it has its own reason for do that. a senior u.s. official who was can john kerry i asked him about that, and they said the saudis were probably upset that the u.s. had come out so publicly last night and told reporters that yes, indeed the saudis had agreed to that, but nonetheless it will go forward. and i think it's important that
while we look at these strange bed fellows that are really being created here, iran and saudi arabia, iran and the u.s., sunni states that don't necessarily see eye to eye over egypt or syria, the reason this is happening is this is really, really difficult. there was a senior u.s. general who spoke to the washington today, and he said what the president has asked us to do inside iraq and syria is more difficult than what the u.s. did in iraq or afghanistan. it's the hardest thing since 9/11 that the president has asked the military to do. so that's why they will reach out to everyone to combat the islamic state. critics will say it is not even grand enough. it needs to also be about a long-term way to really remove the skizment between sunni and shia, and go to the political problems that help create the islamic state. we haven't heard a lot of that
from kerry. >> we covering a schism that has existed for 1400 years. the saudis underquite clerics who go around teaching a strict interpretation of islam which amongst other things denigrates and targets shias. and secretary kerry and others are asking other countries to back the shia government and tell them not to side with the islamic state. i mean, is this doable? >> it's going to be difficult to say the least. but let's just put it this way, because of what you just said about the saudis, because of their history, they are the only ones who can do this. if anyone is going to convince sunnis in iraq to back the shia government, if anyone is going
to convince the sunnis in iraq to fight sunni fighters in iraq it is going to be saudi arabia, so regardless of the past, the secretary of state simply has no choice. he has to convince saudi arabia to do this. he has to work with iran, because iran have the only fighters inside iraq who are already fighting the islamic state. so basically the u.s. has no choice. the u.s. cannot be seen as fighting the flash of civilizations. it cannot be seen on any kind of solely adventure in the middle east. it needs saudi backing, all of the sunni backing, and it needs to work a little bit with shia iran otherwise this is not going to work. >> nick schifrin for us in jerusalem. america is getting ready to target russia's big oil companies. and the midterm elections are right around the corner, so why
aren't the candidates speaking more on the economy? that and story and more as "real money" continues. keep it here. >> the boing 787, >> the dream-liner is the plane of the future. >> an all new airplane in a once in a generation achievement of human ingenuity. >> but al jazeera discovers a dark side. >> three years late... fleet grounding... fires on the airplane... >> they're short changing the engineering process... >> we go undercover on the factory floor... al jazeera investigates the boing 787 watch online now
>> fault lines, al jazeera america's hard hitting... >> there blocking the door... >> ground breaking... >> truth seeking... >> we have to get out of here... award winning investigative documentary series... no refuge: children at the border only on al jazeera america ♪ the number of americans filing for unemployment benefits rose last week to a two-month high. first time jobless claims rose by 11,000 to 315,000. that was the most since the end of june. the data covers the week that included the labor day holiday. so no alarms are going off, but just so you know we generally look for a number a little under 300,000 to feel better about the economy. our next guest says we should be very worried about the state of the job market. he was the budget director of
participate reagan, he joins us here in studio. he was a congressman for many, many years. we don't want to undersell you. we have been generating an average of 215,000 jobs so far in 2014, which is better than we have done over that span of time for several years. 194,000 was in 2013. you are suggesting this is a bit of a mirage, why? >> yeah, it's short-term. in january 2000 we had 107 million jobs on the bls payroll outside of education and healthcare. >> right. >> in august we had 107 million jobs in the u.s. economy reported last week by the bls outside of education and health care. in other words in 14 years we have not created one net new job anywhere in the economy, adding
together, manufacturing and white collar professions, and fire and retail, and wholesale, and transportation. now to me that's a sign that the fundamental economy is failing, and all of these stimulants that we are getting out of the fed in washington are only basically causing short-term, you know, cycles in the economy that aren't sustainable. and most of the jobs that are reported every month were actually created ten years ago, lost in the great recession, and now some of them we have earned back. but on net, other than education and healthcare we have gone nowhere for 14 years. >> when you talk about inflation we say leaving out the volatile food and energy sector, and people say why? why are you leaving out education and health care. health care there hasn't been a month where he lost healthcare
jobs. so why are you leaving these two areas out? >> one these are mid- and low-paying jobs for the most part. they are not doctors -- >> even your best-paid teachers -- >> these are high 20s, low 30s, even lower. >> and i suspect your next point is they are government-funded jobs. >> fiscally dependent. and even health care is a big tax sub venn shun through the exclusions. so they are entirely dependent on an expanding fisc, and i believe we're in trouble in the long term, and we won't be able to pile on more and more government funded health and education jobs, even if they were capable of paying our economy's way in the worldly
market, which they don't. finally, none of these jobs depend on low interest rates or easy money or fed stimulus, because they are not driven by borrowing, business, or households. they are funded by the government. so the fed has been massively expanding its balance sheet for 14 years, and the only jobs are in a sector that it is not impacting. >> let me ask you this, i feel like you are avoiding the idea that in this last 14 years we have become a more productive work force, so we do more and people. >> well, there has been a small increase in productivity, i grant you that, but i will point out in the non-farm economy, there were 233 billion labor hours in 1999 and that's how
many we had in 2013. so we have a huge increase in the available adult population. they are not going into the job market. they are not earning a living. they are not paying daks tax -- taxes. we have 26 million moore young people under the age of 16 that don't have a job. so i think we have a social and economic dilemma or even crisis of large magnitude. who is going to support a growing andaging population when there is no fundamental growth in employment. let me just add gdp. it has only averaged 1.8% come pounded for 14 years, and that's half the traditional rate. and inflation i think is probably easily underestimated by a percent. >> so it could be 2% or more.
>> yeah, if inflation was slightly higher, there is no growth in the gdp, no growth in the job number, there is government subsidized jobs and that's it. >> you are making the argument we have stagnated in another way, except i can show you a lot of people who got really rich over the last 14 years. so what does that say? >> that tells you there is massive bubble created by the easy money of the fed. when you have the interest rate in the money market at zero for 68 months running, you are inviting a massive speculation in carry trades, because overnight money is what they fund their positions with, whether they are holding government bonds or junk bonds or speculating in the stock
market. the cost of the carry is free, and so therefore the speculation is enormous, the cap rate for valuation is too low, real estate is massively over valued, and the stock market is able - is a bubble waiting to happen. >> if we go back to mortgage rates that are 6 or 7%, what does the economy look like then? >> well, we go through a huge downward adjustment or repricing of financial and real estate assets, and it will be painful. it will be discourtant and dislocating as it happening. commercial real estate especially on the two coasts is way overvalued, if interest rates normalize, and the cap
rates go up to 7 to 8%, in other words the asset value is the inverse of the interest rate, and when the interest rate is being held down to the floorboard by the central bank, the fast money people have some wonderful years and then it comes to a halt when interest eventually. >> david it's always a pleasure to talk to you, thank you so much for being with us. coming up next, the high-tech gender gap, i'll look at why so few women are in the tech field. plus the united states announcing new sanctions against russia energy industry, but will they work? those stories and more when "real money" continues. >> my name is shaquan mcdowell i'm a 17 year old teenager. i go to a public high school outside of the city limits of atlanta. it's 99% african american we do get a quality
education. you know we have teachers that really care about us as far as the african american stereotypes, all the music they listen too is rap, they only use ebonics, they don't know how to speak proper english, they've never read a book in their life, all they do is get high, smoke weed, no... i've never been exposed to anything like that... coming from a mom who as a single mother, had her first child at 16, who is the ceo of her own company, me being someone who is about to graduate, who is the recipient of a full scholarship, the stereotype is absolutely flawed. >> did it ever cross your mind that. being a single mother that, your children may end up like the statistics say they're gonna fail >> being a single mom... raising five kids, i've always said you guys, you be 100% the best that you can be >> i would like to run for the senate in 2032. then it leads to the great big goal in life, to run for the office of the president of the united states of america >> catch more stories from edge of eighteen on al jazeera america
♪ it is no secret that women are underrepresented in so-called stem fields of science, technology, engineering, and math. women make up nearly half of the american work force, more than half of the college graduates, but less than one quarter of those employed in those four industries. as recently as five years ago there was only one woman among the top 89 venture capitalists. there is a new book that saying the tech world is hurting itself and our economy. he was nominated one of the 40-most influential minds in the tech industry. and among one of the top 100
global thinkers in 2012. he serves in other academic roles at duke university and stanford university, from where he joins me now. good to see you. thanks for being with us. >> thanks for having me back, ali. >> i spoke to david stockman who was former budget director under reagan, and he was saying if you adjust over time our gdp growth in this country for the last 14 years, it has been about 1.8% come pounded. in your book you say if american women participated in the labor market at the same level that men did, gdp would be 8% higher. >> right. every data point you look at tells you how much we are missing out on innovation and economic growth because we are leaving out half of our population. it just doesn't make sense. >> what problem were you solving together?
>> if you look at the percentage of women studying computer science it has dropped from nearly 30% to about 18% over 15, 20 years or so. in other words women are being discouraged from entering engineering and science. if you look at the way they are treated in silicon valley you would be shocked. i have some really horrifying tails in the book of amazing stories like heidi rosen, on what she had to go through to get to where she is. why? why are we disadvantaging them? it's not that they are less educated than men are or less capable, in fact by almost every metric they are better than men. women also have empathy. one of the major requirements is
to design beautiful products. guess what the critical ingredient in design is? empathy. and guess who has an abundance of empathy? women. every metric, women win. yet we leave them out, and therefore, we lose. >> in many other fields we're increasing parity for women. they are half of the work force. they are now half of the college graduates. why is their participation in technology decreasing? >> because it's a boy's club. it starts with parents discourage their daughters from going into science and engineering. and when they do, they are made fun of for being too geeky. and then when they battle the odds and enter the work force, they are the only ones there. they feel discriminated against. i have heard horror stories about how they are treated. they don't get the same promotions and so on, they get fed up and they leave.
the really tough women who battle it out and decide to start companies, they go to venture capitalists, the venture capitalists ask them disgusting questions about their family lives. what does your husband think about you starting a company? so they get discouraged over and over and over again. >> we hear this about wall street a lot. women in finance, women who have difficulty getting promotions in fact there is a court case that we're following closely now. is it worse in silicon valley? this >> a lot of the venture cappalists they are former wall street people who came over here because that's where the big money was. and they still have their sexist attitudes about them. and the problem with venture capital firms are, is they are
good men, but it takes a minority to spoil deals and create problems for women. like heidi, she went to pitch her company and one disgusting jerk over there was making faces to her, expressing disgusting sexual concepts. i don't even want to talking about them on air, but that's what women face when they get in front of some of these sexist jerks. is they are just discouraged and made to feel small and worse. it really bothers me. >> i know. and you and i have often talked about the shortage of technologically skilled workers, and we are struggling to get more people into science and them. >> yeah, ali the funny thing is
if we enable this half of the population to energize the economy, we wouldn't need as many immigrants. if we would have more women studying computer science and joining the work force, we would have thousands of more startups, if we would empower and enable our women. that's the point the book makes. look, we have hurt ourselves now the playing field is changing because of advancing technologies the cost of starting world changing companies has dropped. those who understand the technology, and women are poised to own the new innovation economy. let's help them, let's encourage them, let's stop holding them back and the world would be a better place. >> what a great mission. i'm glad you wrote the book.
he is theco author of this book. coauthor, by the way with a lot of women. all right. russians might find it tougher to hunt for oil in the near future. plus what is making millions of leave town. ♪ >> an astonishing america tonight investigative report >> why are you wearing gloves? >> ocd... taking over this woman's life... >> i don't wanna touch anything... >> now a controversial surgery can literally reprogram her mind >> we can modify emotional circuitry >> is this a miracle cure? or an ethical nightmare? >> there's a lot of mystery right now... >> rewiring the brain an america tonight investigative report only on al jazeera america
>> meet the committed couples >> gay marriages, straight marriages... have the same challenges. >> it's all about having the same options as everybody else. >> that fought for equality >> saying "i do" changed everything. >>every saturday, join us for exclusive, revealing and surprising talks with the most interesting people of our time. "talk to al jazeera" saturday 5 eastern only on al jazeera america ♪ the united states plans to slap tougher sanctions on russia's financial energy and defense industries. president obama saying in a statement today that the u.s. hasn't seen, quote, conclusive evidence that russia has stopped its efforts to destabilize ukraine. the administration will give details on friday. the president said the sanctions might be rolled back if russia sticks to its commitments to end the crisis under the terms of a recent peace plan and ceasefire.
the move by the u.s. mirrors actions that the european union is taking after delaying sanctions agreed to earlier this week. the new sanctions that go into effect friday will reportedly expand the number of russian companies unable to raise money in the e.u.'s financial markets. that will affect three state-owned russian oil companies. nick schifrin has the details for what this means for russia's energy industry. >> what these sanctions mean is that russia will find it very difficult to finance oil and gas exploration in the years to come at least on european capital markets. oil and gas exploration is a capital intensive industry. it costs $10 billion to give you a ballpark figure to look into a new field which may come up with nothing at all. so you need that money.
however, it was difficult for the european union to come to this decision because the sanctions were drafted last friday, and that's right when the ukrainians and the russians and other involved parties came up with a ceasefire agreement in eastern ukraine and some countries amongst the 28 members of the european union wanted to adopt a wait and see approach to see if the ceasefire would hold. however, germany lead the charge, if you will, and said we need to push these things through to keep the pressure up on moscow so it doesn't get involved again. >> that's nick schifrin. we have also learned that the new sanctions gen russia may stop u.s. energy companies from exploring with russian oil companies.
david has the story. >> reporter: this is the picture of what could be the world's last energy frontier. a warming climate is unlocking ice bound energy sources, and five nations have rights to the region. but it's russia that seems to be eye head of the game. >> the arctic to america is a distant place. the arctic to russia is right on their doorstep. they sold us alaska, we wouldn't even have a russian presence if it wasn't for russia. >> reporter: with nearly a third of the world's natural gas and 13% of the oil. the arctic circle has been critical to the russian power. 70% of total exports come from oil and gas, so does more than half of the revenue. but it's conventional oil supplies with dwindling.
without major policy changes oil production could drop to just 7.7 barrels a way. >> their resurgence has been fuelled by hydrocarbons that came from the sub arctic, and arctic. >> reporter: but russia lacks the know how to tap the resources. so it has had to lean on western companies. those like exxon mobil and bp are strengthening their ties with oil companies. >> basically exxon is going to russia because of the opportunities there. and russia wants exxon, because they believe they can bring something which russia does not have or needs more of. exxon began drilling in russia's arctic just this
august, a move hailed by president putin as a model of cooperation, but new sanctions are expected to clamp down and undermine those relationships, and that could halt billions of dollars in arctic oil exploration. joining me now to talk about the effects of sanctions banning western companies from cooperating with russian companies in the arctic is one of the reporters who broke the news. she joins me from washington, d.c. thank you for your great reporting on this. let me understand this, these european sanctions are going forward regardless tomorrow. >> yes, that's right, ali. these are sanctions which the u.s. and the e.u. negotiated and already agreed upon before this ceasefire went into place, so the argument of the u.s. to the europeans and of course among some of the european leaders has
been that russia needs to be punished for what it has already done. so these are going forward tomorrow. the story that we broke is they are going forward what. >> sure. the importance here, particularly as it relates to energy companies is that russia's -- while everybody need's russia's gas there really are no good alternatives from the gas that goes from russia into europe. russia depends a lot more on its oil sales than on natural gas. >> you are absolutely right. and the whole point with the europeans have been really hesitant to cut off anything related to natural gas because they are so dependent on russian gas exports. this goes the other way. this shows that russia relies so much on extracted industries and
more than half of their budget comes from oil exports. i think this is key. look back at the iranian oil sanctions, and putting in sanctions like that have really taken a massive bite out of iran's gdp, and out of their government revenues, and the same thing could happen to russia. one important thing to remember, though, is none of this is effecting the short-term exploration, and conventional exploration, so it's not meant to hit prices or markets now. we're talking about hitting these projects that are five to ten years out, but they are the areas that would yield literally billions of barrels of oil for west. >> and it is important to understand that other european and american companies, russia cannot turn to anyone else for either the technology, the rigs, or the park -- the parts required like drill bits or the arctic.
>> you are right. this is not something where they can have a deal with china. no one other than u.s. and european energy majors have this technology and this know how. so what tomorrow will do is essentially close the loop that had been there before. before they are restricting arctic shale and deep sea exploration, and now they are banning it entirely saying you cannot provide any services, and this is going to be a real hit. remember that exxon alone has the right to drill in an asia of russia that is two times the size of the state of massachusetts. and just a few years ago they signed this $3.2 billion deal. bp owns 20% of rosneft. damage. >> we are all used to big companies being a little tone deaf.
i'm a little surprised at exxon mobil's ceo at the extend of his tone deafness. he appeared at the world petroleum congress with one of these banned russian ceos. he has been on record as saying this will not affect russia. he doesn't seem to be sort of even making the right noises about maybe russia shouldn't do this. for him it's business as usual. >> yeah, i guess ultimately for a lot of companies this is about the bottom line, and if they can elude sanctions without actually breaking the law, that's what a lot of companies have done. when we talked to exxon about this, they told us, we're going to study the law and we will always come play with the law, but you make a good point he was standing on stage with the man who has been personally sanctioned by the united states and the e.u. so that doesn't look good. it seems to be flying in the face of the intention of the
sanctions to sign deals after those last july sanctions went into place, and to even start drilling last month after the last round of sanctions. >> yeah, it has been a long time since they worried about looking [ laughter ] >> thank you for joining us. >> thanks, ali. millions of middle class families are pack up and moves hubs of miles away. i'll tell you where they are headed and what they are looking for coming up. ♪ >> on tech know, imagine getting the chance to view the world. >> the brain is re-learning how it sees again >> after decades in the dark, >> i couldn't get around on my own >> a miraculous bionic eye... >> i'm seeing flashes >> great >> tech know, every saturday go where science meets humanity. >> this is some of the best driving i've every done, even though i can't see. >> tech know. >> we're here in the vortex.
it has some of them leaving areas where the cost of living is high and moving to places where they hope to find a more affordable, better life. >> i'm going to miss it. i'm going to miss it. it has been a good home. >> reporter: an emotional day for chuck and kaine, after living in the northeast their entire lives they are packing up their home in connecticut to move to georgia. >> my three grown children are here. that's heart wrenching. but i think the quality of life and the lower cost of living with somehow balance that out. >> reporter: karen a substitute teacher, and chuck a partner in a small management consulting firm are among a nation on the move. there's an exsy does underway. along with california, the stop
states were in the midwest and northeast. the south and southwest saw the largest gains. this migration trend has been accelerated by a recession-weary middle class. >> the cost of living here is just so much. i'm anxious to get down there and save some money. >> the high cost of real estate. the taxes in big kanu, georgia, the real estate taxes are about one third, and it's for a comfortable home. >> reporter: nearly half of the people who moved between 2012 and 2013 cited housing as their reason for leaving. nearly a sixth of americans born in new york now live in the south. are rebecca is the director at the population center. >> people are saying is our southern culture going away, because we're getting, you know,
all of these darn yankees down here. and that's a big question. what does that mean for people who don't have a long-term history in the area. people are starting to ask questions about what these new migrants mean for culture, politics, and long-term trends in the state. >> reporter: most of the move is to political strong hold. some analysts believe this blue change played a part in the last elections. the northeast had a net loss of degree holders, while the south saw gains. >> there are huge economic benefits for the south to people that are moving there. they are usually young and highly educated. they often have children, which is growing the economy. >> reporter: but for all of the
optimism fuelling the migration, a dose of reality. steven is senior vice president for a division of atlas moving company. >> sometimes we have the same people move back. a lot of times they find it is not cheaper overall once they get down to these areas. the wages aren't quite as good, but the taxes are lower, so i think they are surprised. >> reporter: others thinking of moving from the northeast may also be surprised to learn that in 2012 americans moving to ment toment -- new jersey had higher incomes. but karen chuck say a lower cost of living trumps any concern over smaller salaries. >> i have looked into the substitute teaching pay down there, and it's about 15 to $20 less per day. i have also been doing freelance
writing, and i'm probably going to head in that direction. >> it really doesn't matter where my office is. ail have to do is make sure i can get to the airport. we made a list of pros and cons, and when you put it into the whole picture, the quality of life issues, i think we made the right decision. >> one result is that america's fastest growing cities are no longer in coastal areas. joining us to explain this trend is mila johnson. thanks for being with us. >> thanks for having me. >> this seems logical, people are priced out of the cities that were so popular. they are moving to other cities which will become more popular, and prices will go up. but these coastal cities continue to get more people. when people move out of the
northeast it's not like houses sit vacant? >> no, absolutely not. there are superstar cities that will never see huge declines in population. new york being one of them, san francisco, l.a., but the question is, for the middle class, where do we go? we need to go one where we can get a job, but it does matter how much housing costs when they get there. >> i'm looking at san antonio, columbus, cape corral, florida, orlando, is there a characteristic they share? >> there is. they have two characteristics that are crucial, right. they have good job gains and a lot of that has to do with the oil boom, the energy boom in the frac-ing industry, and they have relatively affordable housing. precrisis, we had all of these
mortgage products available to the average american to buy in expensive areas. so precrisis expensive areas beat out affordable areas in terms of population growth, even if they both had job growth. now it's a different game, it's harder to get that mortgage, and it matters so much more how much housing costs. >> at what point do all of those cities we just named start to see their housing prices increase? are we there yet? or will it be years before those places start to push up? this >> there are some like austin that may be a victim of their own success. it used to be house prices are driven by demand. now they are being driven by supply. there is just not enough housing in the market. it's not just that people want to buy, it's that there are no homes to buy even if you could, so it's a whole other game that
is really affecting the middle class family. >> so many americans feel trapped. they are in a job. they don't think of themselves as mobile. america is one of the most mobile places on earth. you don't need a permit to move to any other city. but americans don't economically think of themselves. the people who can move to inland cities from coastal cities have accepted the fact that they are mobile. are they a certain sort of people? do they work in certain kinds of industries that they can make these choices? >> well, definitely frac-ing is one of those industries, and science booms. you see that in pockets all around the country. the key to america's strong labor market pre-recession was this mobility factor. the fact that we had a very liquid housing market. except for the best and most desirable neighborhoods, it is sometimes harder to sell your homes. you may be underwater.
you may have to come to the closing table with money down, so it's hard to be mobile when you are house poor. and that's the situation that many of the middle class are finding themselves in still. >> thank you for being with us, chief [ inaudible ]. radio shack is looking for a financial lifeline. it says it may have to file for bankruptcy protection if it doesn't raise more money. it is talking about a debt restructuring and other options. they also posted financial results and they look pretty bleak. sales fell 20% in the last 3 months. radio shack has struggled to find its play in today's retail landscape it has been trying to improve its stores and products but it is clearly not making progress fast enough. it's delivery déjà vu
startups that make food and groceries right to your doorstep are hot again. coming up, tomorrow, i'm going to look at how this latest boom could be different this time around. that's tomorrow at 7:00 eastern, 4:00 p.m. coming up next, remembering 9/11, some final thoughts on where we have come since then. ♪ >> it's a chilling and draconian sentence... it simply cannot stand. >> its disgraceful... the only crime they really committed is journalism... >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation...
>> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. >> start with one issue education... gun control... the gap between rich and poor... job creation... climate change... tax policy... the economy... iran... healthcare... ad guests on all sides of the debate. >> this is a right we should all have... >> it's just the way it is... >> there's something seriously wrong... >> there's been acrimony... >> the conservative ideal... >> it's an urgent need... and a host willing to ask the
tough questions >> how do you explain it to yourself? and you'll get... the inside story ray suarez hosts inside story weekdays at 5 eastern only on al jazeera america ♪ today america marked the 13th anniversary of the terrorist attacks of september 11th, 2001. on that day collective shock gripped the nation because of the killings of thousands of innocence on american soil. seems everyone has a story of where he or she was on that sad day. the moment we learned about the first plane is frozen in time for most of us. i was in canada about to embark on a new start here in the united states. i landed a job at cnn and was about to fly here when it happened. i decided along with my new employer that i needed to rush to my new job and report on this story.
but with no planes or rental cars or seats on trains or buses, i rode my motorcycle the ten hours from toronto to new york and reflected on the pain. since that time i have covered and felt the aftermath. the public's real fear of more attacks. the wars, the cruel deaths that followed in afghanistan and iraq, and now as america is about to embark on new military action in iraq and the region, i'm not looking at it from the outside. i like you, am remembering those painful attacks 13 years ago today. and worrying about these new and frightening threats that we're not confronting. that's our show for today. i'm ali velshi. thanks for joining us.
the spread of the islamic state, and the c.i.a. believes the group may be three times bigger than previously thought. hello, i'm darren jordan with the world news from al jazeera. he's been cleared of murder but oscar pistorius could face gaol. a final verdict is expected soon. aid is delivered from flood victims in kashmir. hundreds of thousands stranded in pakistan. the secret from the spsa