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tv   Real Money With Ali Velshi  Al Jazeera  October 10, 2014 5:00am-6:01am EDT

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is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. volatility is back with a vengeance after months of relevant calm. the stock market we'll look at what drove the big drop just one day after the biggest alist year. also fear over ebola. it's a disease that not only threatens lives it puts livelihoods at risk too. we'll look at how the travel industry hopes to head off disaster. plus while the spending and saving habits of the rich have been hurting rest of american, i am jen rodgers in to ali velshi and this is "real money ." ♪
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♪ this is "real money" and you are the most important part of the show. tell us what is on your mind by tweeting at alisrel-y and facebook.com/alivelshi . investors can't seem to stop worry big a global economic slow down and the anxiety triggered a sell off today with the dow jones industrial average experiencing its biggest plunge of the year. the index lost 335 points. that's almost 2%. this follows a 1 1/2% decline on monday and a 1.7% gain yesterday. the dow hasn't had this many big swings since august of 2011 when the u.s. government lost its triple-a credit rating. few stocks were spared today. the s & p and the nasdaq both losing more than 2%. the selling was heaviest in the energy sector that in response to a sharp drop this oil futures. energy companies are vulnerable
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to cheap oil and prices fell today amid fierce that global growth is slowing. but that's just one reason for the selling, there is also heightened concern that europe's economy is nearing another recession. weeks like the one we are having in major sell offs like today have many invest ores wondering if we are in store for a correction, that's when the mark droops 10 presser a recent week, let's ask jim . what i thinks, jim, correction a big word it scare as lot of people do you think that's where we are going. >> we are on the rite on the cusp of it. the economy growing, profits are growing the situation that is bad in europe and if it takes down the rest of the world, a lot of debt has been take own and a credit accident oregon problem with people that borrowed money based economies growing and they don't grow. not a lot more the strain bankers
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can bankers cando. now we are at a mexican standoff. looking for guidance in the fourth quarter. if they say europe is affecting our business and conditions are deteriorating we will go in to a full scale correction. if, on the other hand, they say that the u.s. is strong enough that europe isn't going to offset it, and we think we can power our way through the weakness in europe, then we will avoid a correction and this will have been a good time to buy. >> really pay attention to the earnings when they come out of it. some people are thinking good, earnings season is come, maybe we can get a distraction from all of this news, but you are saying if we get some news in there about europe, if we have some specifics from companies saying this is impacting them, or maybe even stuff on the strong dollar, that you need to buckle your seat belt? >> i don't think the dollar will be -- it is a strong lahr and it will affect translated earnings but people will normalize through that. but if they feel that the u.s. recovery is going to be a are the bod by weakness overseas and what happens in europe will
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spread latin america is not doing so well, china a question, india is a bright spot but enough areas of weakness around the world that the imf is lowering it's forecast for growth worldwide. the fed here, the next move is tighten, not loosening, so there is not a lot more they can do, if the markets conclude that the best we did was get a 2 1/2, 3% growth rate and rollover from there us not an ingredient for an up market from here. on the other hand, if they say that the u.s. is so powerful and the growth is strong enough, that we are going to pull the rest of the world up, then we won't have a correction. so what i would say to investors it's too late to sell, to early too buy next couple of weeks will tell the story but what you want to on is stick with quality, you don't want to own small stocks or junk debt, you want to own the big, large multinationals with dividends, low pitch. ratios, diversified global participate -- >> all the big things.
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>> you can participate if things are good but protected if they go the wrong way. >> one other thing people are talking about in terms of going the wrong way is all of this is happening against this backdrop where we have big joe owe political issues, ebola, isis, how do you factor that in to what's happening, if you layer that in to on top of all the violative at this it's scary. >> ebola and ice isis are backd headaches, they are tail risks the market assumption it won't afternoon the world economy. but the news there can only get worse. right? if isis gets to the point where they affect worldwide oil supplies that will be a problem. if we get draged in to dragged in to i ground war that will be a problem. with ebola if you get quarantines people won't want to go to shopping center or get on planes they are both downside risk buzz it's stale tail risk but fundamental but you have to watch them. >> it's not happening but it is
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in the back of people's minds, coming out front burner well have earnings seasons, jim is chairman of mark capital. thank you so much. >> my pleasure. america is making airports part of its focus in the fight against ebola. we'll look for that could mean to the travel industry. we'll tale you why it's a problem for the rest of the country that the rich aren't spend like they used to. that and more on "real money" keep it here. >> this saturday, a horrific outbreak. >> the death toll from this epidemic could be much higher than anyone knows. >> the search for answers. >> 8000 people are already dead, mr. president. who should answer for those people? >> who brought cholera to haiti? >> so you don't have to explain yourselves? >> no.
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>> "faultlines". al jazeera america's hard-hitting, >> today, they will be arrested. >> groundbreaking, >> they're firing canisters of gas at us. >> investigative documentary series. watch the emmy award winning episode: "haiti in a time of cholera". saturday, 7:00 eastern. on
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a day after thomas eric duncan died in dallas from ebola the fear factor in america is growing, today more than two dozen members of congress released a letter asks president obama to ban travelers from the three west african countries most effected by i bowl arc guinea, lie beer ca an liberia and sierra leone, we learned from that on top general said there is no way
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to keep it contained. he wanted if it breaks out there will be, quote, mass migration in to the united states. all of this comes a day after u.s. health officials announced new screening measures for travelers from those three west african countries at five u.s. airports, new york, chicago, atlanta, washington and newark. and back in texas, attention turned to the sheriff's deputy who entered the apartment where thomas duncan cass staying and sent to the hospital yesterday. for the latest on that let's gee to heidi jo castro in dallas, heidi, what is the deputy status right now? >> reporter: jen, this afternoon there was a huge collective sigh of relief, when the test result came back as negative. for this deputy that you mentioned. since then he has been discharged from the hospital. as you mentioned, he had entered the apartment where duncan briefly staved in order to taillight serve a quarantine order to his family. it's notable that he had never
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come in to contact with duncan himself nor did he touch any bodily fluids that's the only why ebola can be spread. so certainly this was a scare that lasted for more than 20 power hours. coming on the tails of this tragic news of duncan passing. so the timing couldn't have been worse. and i think people here in dallas are certainly very relieved that at this point it seems that ebola only was a contain to mr. duncan that farred away. a passed away and no one else is showing any sim it tombs. >> do you think this new news think doing out will leah lot that have to rest or do you think given the incubation pert, there still will be concern out there? >> right. the incubation period still continues jen it will continue until october 19th that is the end of the 21-day period where the c.d.c. will definitively say that these people, these 48 people who are being monitored as possible contacts with duncan
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will be completely in the clear. so right now, we are actually in the middle of the most critical period because usually symptoms in someone who has ebola appear between eight to 10 days, that's right now. but after this scare and moving forward as each day pass that his risk diminishes and people are just crossing their fingers that everything stays calm from here on out. >> keeping our eye on the calendar, heidi for us in dallas, thanks so much. mean while in washington today united nations secretary general ban ki-moon called on the world to increase the money pledged to fight ebola by 20 times. he spoke at the annual meeting of the world bank and the international monetary fund. the president of sierra leone told the meeting by video conference his country needs millions of dollars. hundreds of doctors and thousands of nurses. so far the united states, the imf and the world bank have pledged more than 1 1/2 billion
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dollars to combat an out break that killed 138 people. the world is quote, way behind the curve in responds to go ebola. now let's talk more about fear. dozens of cabin crew cleaners for delta airlines at la guardia airport in new york walked off the job last night to protest safety conditions in parts because of the recent out break of ebola. today they agreed to return to work, after state officials said they would review their concerns. i should tell you that the workers don't deal with international flights, but no one said fear is completely rational. world bank press kim is a doctor and he said studies of past disease outbreaks show that 80 to 90% of the economic impact comes from, quote, the fear factor that surrounds the out break. zarqawi killed 770 people and took a huge toll on or lines and tourism in late 2002 and early 2003. unlike zarqawi, ebola is not an
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airborne virus . about it's unknown what the impact will be and the willingness of travelers to get on a plaque. airlines cruz companies are keeping their eyes on the virus. according to hugo martin who covers the travel industry for the los angeles times and he joins us right now from the newspaper's headquarters in los angeles. hugo, so i am interested, we haven't heard of cancellation, and people not booking their travel so far. buff people are obviously nervous about this. what are you hearing from industry sources in terms of what they are afraid of and what they are seeing in terms of this? >> it comes at a pretty difficult time for the industry. the industry has been rebounding since the recession. and coming up is thanksgiving of that's the most popular travel holiday in the u.s.
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so for any sort of bump to happen. now is a bad time. now i have talked to industry experts saying they haven't seen mass cancellations they have heard some rumblings from passengers asking is it safe. so far no one is candaeling their bookings and they say that's -- that makes sense, sense we have only had one case here in the u.s., but they worry that anymore cases, anymore reports in the u.s. might trigger panic and that might lead to cancellations in a mass way. >> let's talk about the cleaning crews you heard us doing the story going on in la guardia. they are obviously worried about what they might be cleaning up. are the airlines doing anything to be proactive about that? >> well, so far i think they are just sort of watching here. i did speak this morning with union that represents cabin workers. and they say that they are going to start talking to their work workers about what they can do
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to be better prepared. yeah, the longer this situation continues, the longer that ebola is in the headlines, the more nervous people are getting i reported earlier in the week that the slight attendants union for 19 of the largest airlines at first we are prepared to handle this. we handled sars and h1n1 is a day later they sent out a press release saying we are not prepared to this. we are not medically trained we don't have the equipment to deal with ebola. we need the government to step in ask do something. the longest where ebola stays in the headlines the more nervous people are getting the more they are asking for government to do something to step in and provide some protection. >> it really is the nervousness and the fear. if you go online and on sites like flyer talk and see what people are talking about, they are trying to figure out, okay, what's the safest thing i can do now. one person, group was talking about flying early in the morning, because the planes are cleaned in the evening. is that something that you are seeing recommended?
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>> i don't see that recommended. but that is a good point. i mean, in between flights, the turn around is so fast, there is usually just 20, 30 minutes between flights. and the most that an airline will do, is they'll have the flight attendants come in and pick up, you know, litter and things like that. they don't do a full wipe down of a plane with disinfectant and ink until the end of the day when it's -- when the plane is put away over night. so it makes sense that you'll find a plane a little cleaner if you fly in the morning. and they really don't do a thorough what's called a decheck, where he it take out the carpeting and take out the seat covers and do a complete over haul basically of the inside of the plane, that doesn't happen until maybe four, five years every four or five years. >> wow, i had no idea it took along. i want to talk with cruise lines, he we have seen those stranded with tons of sick people on them. are they making any changes in specific relation to ebola,
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changing any itineraries. >> yeah, carve value cruise line which is the largest cruise line in the world. they did just announce this week that they were changing some stops for two of their subsidiary cruise lines. and these were cruises that started down in south africa and stopped in west africa. now, minds mind you, the ships were not scheduled to stop in the three countries that are hardest hit by bola. nonetheless, i think they felt there was so much anxiety i about being anywhere near west africa that carnival rerouted both ships to stay clear of west africa . princess cruise another large cruise line similarly they have a cruise line i think called the west african adventure which they are considering now changing that route so that it
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does not, you know, drop anchor anywhere near those countries. so, yeah, there is fear there as well. >> huge oh, martin, thank you so much. i am sure you will be a busy guy as this story develops a travel reporter for the los angeles times. >> thanks. coming up, america's wealth gap and how the spending habits of the rich make it worse for the rest of the country. plus we'll go on the ground floor and look at the battle against isil raging in iraq.
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>> on tech know, cars, the science behind... keeping us safe on the road... >> oh! >> oh my god! >> the driving force behind these new innovations >> i did not see that one coming... >> tech know's team of experts show you how the miracles of science... >> this is my selfie, what can you tell me about my future? >> can affect and surprise us... >> sharks like affection... >> tech know, where technology meets humanity only on al jazeera america we have more evidence that the widening gap between rich and poor american is his jeopardizing economic growth for the entire country. the data comes in a recent report lease ed by standard and pours, marry know reports on why the saving and spending habits
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in among the rich is related to dropping revenues. >> reporter: 70 miles north of manhattan lies poughkeepsie new york. the median income is over $29,000, about 23% of the population is below the for poverty line. there are some thriving businesses here. [cheering and applause] >> reporter: but it's not just ribbons the town supervisor sees being cut. cuts. we have a number of major revenue streams, sales tax, mortgage tax, and we have seen all of those drop. we have pretty much cut all of the papers and paper clips that we can at this point. so when we have those tough decisions to make, oftentimes not always, but often it may impact employees' jobs and futures, so those are very gut wrenching decision that his we have to make. >> reporter: according to a new study i'm decline in sales and income tax is also being felt at the state level.
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according to gay pettitte the a no of the report. there is a link between increasing wealth gap and slowing tax revenue growth. >> the correlation between tax revenues and risings income inequality is -- appears to be a weakening of purchasing power among the consumer base and it's showing up especially in the sales tax trends that we see across the states. >> reporter: between 1980 when inequality began eyes through 2011, the portion of total income going to the top doubled from roughly 10% to about 20%. at the same time, the annual average growth rate of state tax revenue slowed by half, from nearly 10% to below 5%. >> when he look at the difference between how the wealthy spend versus the rest of the population, it does appear that the people at the higher end of the income distribution saved a larger share of their income. >> reporter: and the wealthy
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tend to shield much of their income from taxes. they probably have a more sophisticated ability to manage their tax liabilities. and, of course, any of that activity comes at the expense of state coffers which then of course translates to fewer sales tax dollars. >> reporter: and stairs feeling the pain. new jersey saw a budget shortfall of more than $1 billion this year. a massive drop in income tax cited as the main culprit. in california, income tax collections were down $1.5 billion from a year earlier. according to reuters, in most of the 43 states that levee income taxes, drops in collections were as high as 50%. local governments are facing the difficult decision of whether to raise taxes or cut spend to go make up for the deficit. >> infrastructure issues for all municipalities air struggle. years ago when things were going well, we were -- had an aggressive
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rebuilding, repaving program for ouroads, we bond the probably $20 million over a course of five years. we put the brake on his that project. we still try to do, you know, a road a year. it certainly isn't what it used to be. >> income equality is contributing to slower recovery. our reason for bringing it up is credit analysts and economists is to help remind policy makers and investors that this is going to be a part of the environment most likely for sometime. >> reporter: mary snow, al jazerra. while incomes for the theil have picked up speed they are barely keeping pace if inflation for most people. joinings to discuss exactly white the spending and saving habits of the rich are wreaking havoc for the rest of us is director at the rockefeller institute o of got. thanks for joining us. >> thank you. >> mary got there to some of what is going on, you think okay, the richie get how they
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can shield some income from taxes, but aren't they spending more? aren't they buying fancy things and isn't that getting taxed at the same right that you go by buy your grocerys? >> doubt that some people rich spends a whole lot of their money, sports figures, rihanna and a lot of others spends a lot of their income. but for the most port post wealthy people save a much larger part of their income than the rest of us. they may reinvest it. they may put it, save it away. but generally speaking, even though many of us might be spending most of our pay check every month, the wealthy really don't spends most of the money they get every year. >> it's interesting you said salary and then changed it to income. so what is the difference? why is that important to note when you are talking about wealth? >> well, the wealthy get their money from different sources
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than most of us. most of us get our money from wages. it usually comes in a pay check that we get every week or weaver two weeks or every month. and by the way, state taxes are sort of with health or state and local taxes are withheld almost automatically. the wealthy get most of their money from most of their income from nonwage sources. usually money from captain gains. >> investment. >> investments, from stocks and bonds when they sell them off. and, of course, just in the last couple of days, those -- that's a pretty uncertain income. it can be quite volatile. >> it's very volatile. had a little bit of whiplash this week, what does it mean if it's poll tiff for them. does it flow down to the states and the municipalities do they have to deal with that as well? >> it's definitely true. we just put a report out at the rockefeller inte institute about
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state forecasting of revenues and states are having a very hard time forecasting even one year ahead about what kind of revenues they are going to get. >> reporter: and that's partly because they are relying more heavily on the well teaching the wealthy's income it from capital gains is very uncertain from one year to the other. and so states are making big forecasting errors and it makes very difficult to really budget . from one year to the other. some states have two-year budgets. it's hard to understand what is happening two year old down the road in this situation. >> so are there any solutions? >> well, it's always possible to at least theoretically possible for the federal government to help out some of the states. but we know the federal government these days and, virtually nothing gets past. so that's not likely to happen any time soon. the other possibility is to sort of expand the sales tax towards
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more transactions. >> what does that mean? >> services are really not covered very much by the sales tax. the wealthy and other spends more of their money on services than on goods. >> what is an example of that. >> financial transactions are not taxed very much. >> sock. >> so one of the possibilities might be to expand some of the taxation to a wider variety of economic transactions. not just groceries not just cars, but to a lot of non goods services. >> got it. thomas, director of university of al barry rockefeller institute of government thank you so much for helping us breakdown this issue. >> okay, thank you very much. a widening health gap has also helped fuel the most significant political protests in china since tiananmen square in 1989. today we learned that hong kong's government has pulled out of planned talks with leaders of the sit-in demonstrations. demonstrators had been pressuring the government in the name of democracy, but as adrian brown shows us, affordable
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housing in one of asia's richest cities plays a part too. >> reporter: hong kong is one of the world's richest cities. but it doesn't seem that way in the working class district . financial she is 82 and spends each day collecting cardboard to recycle. on a good day he can make $8, his young daughter is the breadwinner making around $1,300 a month. that disqualifies him from welfare so every cent now count. >> translator: life is miserable. no one feels pity for us. we are on our own and we have to live a more frugal life. >> reporter: nearby two children are hundreding home after school. 11 and her brother almost seven. and this is where they have lived for the past three years. a room measuring less than eight square meters. it's a subdivided apartment.
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kitchen, bedroom, bathroom. study area and no privacy. >> translator: we do not have enough money to live on. half of what reeve goes on rent. on top of that, we have to pay utilities. it's a real struggle . >> she is from china but can't work here, that's because she is now separated from her hong kong partner, which means she can't apply for citizenship. wshe can remain in the city because her children were born here, by they can't apply for public housing. >> i feel helpless. before i came to hong kong i did not understand things. like hell on earth or life is no longer worth living. now i know what those feelings me. the government admits, more than 170,000 people now live this way. a third of them migrant from the mainland. adding to the demand on public housing. this city's wealth gap is one of the biggest in the world and the lack of affordable housing is another reason for the discontent here.
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people also complain that public utilities transport systems, telecommunications and even supermarkets are all in the hands of a wealthy elite who also dominate the property sector. >> young people are saying they can't buy a house, they can't even rents a house because rent has become, you know, totally unaffordable. and therefore they have a hard time getting married, and even after they get married cannot have children because there is no room for them. >> reporter: hong kong boasts one of the world's freest economies. this week it announced that its foreign currency reserves stood at more than $325 billion. but that's unlikely to make much difference to the life of many. adrian brown, al jazerra, hong kong. well, up next on "real money," the coalition steps up air strikes against isil, butt militants are proving more
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resilient than expected increasing tensions between the you can i and the your honor on what should be done next. that store any two minutes. >> i lived that character >> a hollywood icon forest whitaker >> my interest in acting was always to continue to explore how it connected to other people >> making a difference >> what is occurring in other places, is affecting so many different ways... >> inspiring others >> we have to change those things, in order to make our whole live better >> every saturday, join us for exclusive... revealing... and surprising talks with the most interesting people of our time... talk to al jazeera, only on al jazeera america
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the u.s. u.s.-led coalition dawned pound isil in kobane
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today. witnesses say it was some of the most intensive strikes in the air campaign so far. but isil fighters are not giving up. the still entered kobane, the main areas of the town are under kurdish control. and the group reported by is bringing in reinforcements. while isil has its sites on kobane the group remains a major threat in iraq. isil fighters are trying to choke off supply links between baghdad and towns in the north. al jazerra's imran kahn reports on how one town is doing all it can to stop isil. >> reporter: it might not look like much but this makeshift bridge has become a key strategic bridge this the battle to defends a town if this bridge goes they will be exposed to an isil take over. they are already blown up the permanent bridge, isil fighters have moved to isolate them from the rest of iraq in the last week. everyone wants stop that from happening. >> translator: we are the local
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fighters of the tribes, we are all ready to fight. we have been attacked by isil, over that orchard, but we imagined to foil the attack and by the help of god we are still resist asking we have not slept for two days already. >> reporter: if it falls to isil, then that cuts off the province from the rest of the country. now, there have been coalition air strikes in the area but they haven't dented isil's advance and it's not just here, there is another town gearing up to fight and local residents there are worried . and inside that town they already know what it is to fight. they have repelled ice it's fight force weeks now they say in the last 72 hours, isil have advanced quickly and are getting even closer. if they take these two towns then the supply lines between baghdad and the north will be cut the no supply lines and the fight gets tougher.
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>> the bad follow co ban and i syria has merged as major test to the air campaign inning end today wipeout isil but it's also train being ties between united states and natural owe ally turkey every over the long-term strategy in syria, mike viqueira it at the why house with more. >> reporter: imran's story says it all in a nutshell you can't do it without air power, everyone agrees on that without american air power and the iraq army. even as they have swept across areas, wide swaths of syria and in to iraq itself. kobane a story now, administrations officials jo john kerry on down over the course of the last 48 hours in washington have prepared the american public for the fall of kobane and other towns just like the one imran was reporting on. the fall until they can get the ground forces up and run, that's the story here, john kerry today said kobane very well may fall but kobane is not the point.
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swing back isil gains and denying them a safe haven to attack the united states is the point. and meanwhile, tensions with turkey are escalating everybody as the high-level delegation from the u.s. government is in there today and tomorrow. what they are trying to do is get turkey very much more involved, both militarily and financially in backing this coalition. they are not making any bones about it here in washington, jen, they say it from podiums, privately on the phone, in back hallways, turkey has to be more involved here. turkey wants to institute a no fly zona long the syrian bored. the united states have a problem with that. one other thing that is vexing u.s. policy makers here, kobane is less important than the larger goal here of denying that safe haven in the long run they are in this for the long game this is contingent on syrian ground forces free syrian army opposition forces take the fight
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against kobane but kobane is televised on the border there are television cameras train odd it 24/7 the battle is unfolding in real time so the outcry around the world has grown ever louder even as those forces the isil forces continue to sweep in from the south. jen. >> so, mike, where it comes to the relationship between our nato ally turkey and the united states, and these talks, is there any sort of time line? can you give us any sense of what people think the outcome will be in d.c.? >> reporter: people of optimistic because turkey has changed its tune in the last separate days the parliament there voted to authorize fighting in the fight against isil although they are not taken any steps to it. it's entangled in so many able they want animosities between the kurds, who populate the town of cobane their ancient animosity towards the turks and the turk irrelevant government. turk is a reluctant to get involved for that reason and the rover riding reason here is the policy goal of turkey it to
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overthrow the assad regime, that's also the stated goal of the u.s. government, although the white husband doesn't want do it militarily. there are all kind of cross current here, all kind of conflict impulses and policy goals, that are making this ever more complicated. as if it weren't. >> i indicated enough. >> mike thank you for trying to simplify it and plain it for all of us. you did a good job thanks so much 123-4678 a different sort of battle is playing out in a courtroom in washington this week. that is where the government bail out of a.i.g. is on trail. today it was former federal reserve chairman ben bernanke's turn to go up against sewner lawyer david boys, he's representing hank greenberg the former chief of the insurance giants he's suing the government over the materials of the $184 billion bail out of a.i.g. other witnesses hank paulson and time geithner, now as for bernanke it seems he was not so happy to be on the witness stand, joining us now on the phone with the details is
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bloomberg business week reporter andrew, so andrew, that's talk about bernanke here he didn't seem to happen is a that right? >> that's right. his body language and the nature of the character of his responses suggested that he would rather be he is elsewhere. >> he wanted to be elsewhere but he was there. what were the key bits of testimony? >> reporter: he testified that the harsher terms that were accorded i.a.g. were injured by the goals that regulators had. they wanted to prevent shareholders of the company from ring a windfall in the company was bailed out and they also wanted to not necessarily to save the company but prevent the systemic damage to the overall economy from the company's collapse. a.i.g. is such a big company, the largest insurance company in the world and did had relationships in the -- in terms
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of the financial products that it insured, with everything -- everybody from investment banks, retirement funds, retail insurance, they just were -- their tentacles were everywhere, if they collapsed regulators, bernanke among them, thought he meet bring down the entire economy. >> a lot of the talk has been around this base rate and the terms of bail out for aig and we talked about this before with geithner. so we are knack i. can you tell us about his recognize lungs of the basis rate and his involvement in that? >> reporter: it wasn't very clear. he said that i was just reacting to or acting on the recommendations of the lawyers who were -- who had done the -- you know , the work to come up with the authority that we had to do this. he said that the ultimately the interest rate, which is one of the issues in the case, that that was set by tim geithner and geithner testified that, yes, it
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was my call. i did that. so enter that can i said we were just trying to -- we were reacting -- remember, this is -- the bail out began on september 16th, 2008, lehman brothers had failed, gone in to bankruptcy the day before. and fannie mae and freddie mac had gone in to conservatorship by the u.s. government a few days earlier. so that was real panic in the air and bernanke, geithner and henry paulson, hank paulson the former treasury secretary all testified that they were worried about harm to the overall economic system. >> it's been a real who's who having everybody on the stand, you ever paulson and quite they are and bernanke. i want to to tell me about the new star we didn't even know about, this guy edward quince, can you tell me about him? >> reporter: yeah, that's just a -- apparently a way of reducing the amount of e-mail the way it was remember explained in court it was the way of reduction the amount of
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email bernanke got by having certain people in the know send an e-mail to edward quince so that way he had a smoother e-mail traffic. >> so ben enter back i aka edward quince now we all know. >> reporter: right. >> andrew, legal reporter bloomberg news, thanks so much. >> reporter: you are well, come you. coming up green money and how some big spenders are getting in to some small town politics, plus what's tesla man of must are you, what does he have up his sleep. >> this sunday, you've witnessed their incredible journey. >> i'm ready to get out man... i'm ready to get out of high school. >> the triumphs, trials and struggles. "on the edge of eighteen". don't miss the class reunion. were the right paths chosen? >> it was absolutely devastating. >> have family wounds begun to heal? >> our relationship still is harsh. >> are their dreams coming true? >> it wasn't my first choice, but i'm glad i made a choice. >> the edge of eighteen class
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reunion. immediately after the final episode. sunday, 10:00 eastern. only on al jazeera america.
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in washington state rich donors from out the state are targeting local elections. they are trying to push through a green initiative. but as allen reports, one state senator is stepping in to
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prevent that from happening. >> if i was doorbelling in that they would see me, wouldn't they? how are you doing, bryce? >> reporter: what january angel jumped in to a special lex for state senate last fall she noticed deep pocket support for her on component. >> we kept wondering where all in this money was coming from to hire all the people that were being hired, to do all the canvassing that was being done. fliers galore. tv galore. >> reporter: television ads like this one. >> the representatives january angel sponsored legislation to reduce access to mammograms and cancer screenings. >> reporter: many funded by a political action committee called she's changed and much of that money coming from billionaire california environment the activist tom stier and his political action committee next g.e.n. climate. >> reporter: he put in a lot of money against you? >> he did. policy change is his passion a
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mission he shares with washington tkpwo*f governo governor jay. highlighting environmental issues pledge to go dramatically cut emissions he has met with him to discuss climate change and local political races in. washington senate republicans hold a one-seat voting edge in a tenuous co longs with two democrats that have jumpedded the aisle. the special elect in angel's district could have tipped the balance. and drew a record amount of campaign money, stier and his pack contributed half a million dollars, huge for such a race. do you welcome that help? >> you bet. i welcome anybody who who is an' at this miss and activist . >> reporter: peter quist says the amount of outside money flowing to local races has jumped. since the 2010 citizens united
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supreme court ruling which loosens restrictions on independent spending. >> if you are trying to affect policy change sometimes the state by state approach is more efficient and certainly those races are less expense itch than federal races. >> reporter: january angel won the special election and tells us she spent more than three-quarters of a million dollars doing it. most of the money raised outside her district. looking ahead the governor has no concerns about getting help from steyer and next gen. >> this is not going to be an unfair debate. oil and gas industry has a few dollars to rub together. they will be able to get their message out across as well. >> reporter: well funded competing messages coming soon to voters across this state and around the country. alan, al jazerra, seattle. some experts estimate up to $2 billion could be spent in outside money during this election season. well, america's first name in online shopping reportedly plans to open a real store. the wall street journal says the
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first brick and mortar amazon store will open across the street from new york's empire state building. just in time for the holiday season. the journal says the store would work like a mini warehouse for same day deliveries in new york city and a place for shoppers to pick up online orders. amazon could also show off its own gadgets in the store like the kindle reader and fire smart phone. well, elon musk is holding the world in suspension, a big surprise coming up just two hours from now. what is it? will it be safe? and is that even the right question? your look in to the future is just two minutes away.
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because you have to make imagine that i've just come from they're exhausted, they've seen a lot of blood, they're panicked
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because they're so the thing to consider here is to get that first person apparently breaking up is easy to do in the tech industry. isemantic became the latest they go no, ma'am company to announce plans to split itself in to two. company one company on security
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and one on information. semantic is best known for norton software they expect to complete the spinoff by the end of the next year. just monday hewlett-packard announce its own plans to polight off personal computers and printers in to a new company and last week ebay said it would spin off its pay pal unit. some of the nation's banks may need a security boost. turn out hackers that went off jp morgan chase over the summer also targeted other banks, bloomberg news reports the hackers hit 13 other companies includes city group, fidel any investments and the payroll firm adp. so far it does not appear that any data was stolen from those companies but just how close did the hack, come to wreaking total financial havoc? well, for that answer let's turn to jake ward, so, jake, just how bad was this? and can you explain the nature of the attack right now as we know it? what actually went down? >> what is so unusual about, jen, it wasn't a back end server-based kind of attack.
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this is sort of through the front door kind of attack, is seems as if in the case of jp morgan chase it was attacking the sort of low-hanging fruit of the various application on his their system. they were going through and checking out every little application ar running throughot the company and exploiting little hoop holes in that they tried it with the other banks that's what the fbi determined by sort of matchingism p. addresse ip addressing between the attackers. it's a peered weired attack, it's stumped people to what they were after. >> they matched i.p. addresses that's how they connected chase. why is chase breached and the other companies aren't? >> it doesn't reflect well on claims' system. security experts have really been saying that it has to do with the applications themselves. if you are running a sort of outdated application and old end one, you haven't upgraded that application may not be playing by the kind of industry standard rules that you theoretically
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want with cyber security, if you are running run an outdated version of management system you may be opening the doors to hackers like this and it may that be these other partner have his been spends morning money and up upgrading more quickly on this. it doesn't have to do a with a funds. the database as much as the applications shuts put on this. >> there's talk about tesla, elon musk is a great p.r. artist promising this surprise, this big announcement that's coming up. it has to be do with the letter "d," speculations running rampant. set us straight. what do you know? >> it's definitely not going to be a discussion of the model three, which is the planned 35,000-dollar it is los angeles tesla model and it's not going to be the model "x" which they are debuting next year. it could be anything from a very super charged version, one that can go from zero to 60 in under three seconds, which would make it on par with a high-end lamborghini that's according to
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one very confident and bold report on the blogosphere it could be of course of course, also a self driving car. just this wiki lon musk talked about the possibility of what he said would be the certainty of their vehicles being 90% autonomous by next year, a lot of other automakers are looking at al autonomy but their lawyers don't want do it. i had a couple of people tell me from inside major automakers the evening years are ready but it's the lawyers that are scared, in this case with a guy with bill wraps of dollars that loves to be risky maybe he is able to take that risk, that's where my money is. >> do you think it could be something that we are not even guess something. >> it could be a 6-wheeled car aircraft mack truck, goes to space for a living, so who knows, right . >> maybe it's individual spaceships. >> thank you very much .
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>> so he with he don't know what elon musk has in store for us. but we know this, it won't be specific. perfect and innovation simply don't go hand in hand. most of the world's great trailblazers live by the motto fail fast. the late steve jobs was essentially tossed from apple before returning to introduce the world to the ipod which then ushered in the i everything en generation, innovators take enormous risks both financial and physical safety. it's society that has to decide how much it's willing to deal w a driverless car may allow young, old, and a 19 reeighted passengers to travel safely. but what is safe in 10,000 americans guy each year as a result of drunk driving think but what level are risk is society willing to accept from a driverless car? what if a malfunctioning car cut the number of drunk driving defts
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to500 deaths a year, a driverles car can be made safer but in the perfect. the same goes for planes if the wright brothers were pursuing a plane that never crashed it's likely a trip to new york and london would ask be for your twos a for you months off so you can travel by boat. society assumption the risk and benefits are the incredible at are adapts little. all this brings us back to where we started the show. ebola. and whether you should feel safe traveling. the cdc director tom frieden was quick to point out whatever we do can't get the risk to zero here in the interconnected world that we live in today. so will you die from ebola? probably not. should you fly on an airplane? depends on how much risk you are comfortable with. you could always take a walk, though, of course just remember to check your iphone first to make sure that there is no lightning in the forecast. that's our show for today, i am jen rodgers in for ali velshi,
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thanks for joining us. >> protestors are gathering... >> there's an air of tension right now... >> the crowd chanting for democracy... >> this is another significant development... >> we have an exclusive story tonight, and we go live...
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