they stopped trials. thank you for that. we are on the markets again in 30 minutes. "street smart" is up next. ♪ >> good afternoon will live from bloomberg world of girders in new york, i'm cory johnson. welcome to street smart on this friday. >> one of the stories that is breaking in the last few minutes eo, they are going to get their day in court, and that is what they wanted. he wanted to show that this interneting over the

is their legal right. to light tube -- the right broadcast it was given to them by the law. yet these pieces of the actor made you promise to broadcast shows. the public owns those rights, not the note works -- networks. the jobs data out today, the , thee really disappointed jock reason really low in the last month just announced. the thing that jumped out of me with the participation rate. the participation rate for jobs are at 1978 levels. that is staying alive levels. people are even looking for work, let alone able to find it. theye lowest number that projected was 100,000. how did they get it so wrong?

, we knewew it was cold that there were less days to shop. >> we all had calendars on our desks. >> they are economist, that's why they got it wrong. >> voice of reason from our guest. maybe economists need to listen to you. investor, economist, on abc's show shark tank. >> a stunt your numbers, you forget about common sense, it is not a good interpretation we always end up in the wrong place. i do not know why anybody is surprised. >> fair, fair. >> you are one of us. upward revision number that nobody talked about, which was a good thing. looked superstrong a day or two before, people really expected to do -- go the way it

seemed to be going. >> retail was really the place to add to the lot. but then we see macy's cutting jobs about retailers coming out and cutting their profit forecast. we have to wonder if this is a momentous thing. >> this adds a significant risk for for investors to expect a big quarter out of big retailers. if you're looking for amazon, ebay, the bar was higher than we knew. if the employment was such with the bar for >> >> the dollars in big numbers is going to be higher. it would be much better if we would talk about who is going to create the jobs, and where we are going to create jobs. they never get the notoriety or the headlines in any way, nobody is focused on how to get more industries to create a majority of the job seared america. i do not know why they grabbed the headlines. >> stephanie ruhle joins us now, and i want to turn the

conversation to who is produced big in the stock market. -- participating in this job market. why you picked a different career bid stephanie -- then stephanie, working in wall street >. >> we went in different ways, but we are both girls. >> you have to wonder why so toy women are driven barbara's industry. real estate, finances. many,state you see finances you do not. corey walked onto a trading said i have a lot of people who look and sell like me, i guess i can do it. women see others like barbara, who got into the real estate industry, that they can say i could do it. in 1997-2010 but

there was a shift. you have to have a very similar skill set. it is about trust. throw out what the numbers are sega but it is about can you trust someone? corey did a good his salesperson that they would is the best idea, and say that stephanie ruhle told me to invest in the red is about understanding customer, emotional d'este motion of it. >> when it comes to dealing with your customer, it is always about trust commanded a business. there is no exception to that, if you're bored to build a business for yourself. what is missing here is when you're in your business, you have to get a guy on top of you to trust you. when you're in my business, all i have to do is trust -- get my customer to trust me. the real question is why are not moral been creating their own businesses -- more women creating their own businesses?

kids, have to leave the workforce, yada, yada . >> the imbalance does not have to do with women anymore, especially when they talk about other things. life balance does not have to do with women anymore, cory is apparent is like i am. there we aren't -- we are not in a situation more word is a father's role, or a mother's role. >> i am interested in terms of how difficult it is for a woman to start up her own business. >> more than 50% of all new businesses today are started by women, and the reason is >> ability of time because they do have children. they make their own hours, they work when they want when they could do it at the cottage and grow it into something big. why is it that women are not starting technology committees? -- companies?

they are almost absent from that field, and that is a big place to make money today. >> we have been talking about sites about, and girls uncertain -- at aot push as hard certain age to not push that hard into the industry. i have two little girls combated girls, and i am pushing them for anything i see. >> in this day and age, your daughters do not identify roles of women and men, and that is new. that is not the case when i was a kid. ? >> they're going to have a certain notion of there is a place of the world for them. >> barbara, people must tell you every day that you're it is

bracing for them. not followed sack leader first steps -- not following exactly her footsteps, but saying that she didn't, i can do it. thingsof the three should isn't it right out to be in your position in 10 years? >> the best time to do it is when you are young, when you do not know any better. when you get a terrific education, what it really happens is you become analytical. analytical has nothing to do with building a business but it is violating under feed. about landing on your feet, bouncing back up, shake your head and moving on. why not say they will work for yourself? no one is doing that with the girls, they do the boys, but not the girls. >> how important it is to be

willing to fail. able in your -- people in the young 20s about tenacity, hard work that is what you have to offer. bricku will run into that wall over, and over, and not focus on declined but not the only networking, your first five years of work just work. be the best at what you do, and then the rest should come with it. >> going to princeton is rumbling better than not going to princeton. a lot of people are spending a lot of money to go to these for- profit schools such as the university of phoenix, such as uti. i do not know if there'll good schools. university of phoenix is better than some of the schools, and has showed a genetic test radically decreasing roll over the last few years. a lot of it is regulatory. i wonder what you think is too much education? a great thing to

have, depending on what field you're going into. wall street, you of course -- want to have one of course. how to be anudying entrepreneur, having all the buzzwords and the fancy talk about when you have never had a ome on. we all protect our kids, but wait until that first negativity it's them. getting --s >> i've no idea what you're tagging about -- talking about. era in silicon valley is very similar to what happened in 2000. they throw these buzzwords around. >> to bring this full circle, i

do say that the majority of people hiring this month were actually women. >> there you go. >> they had more hired an entry- level positions. we do not know the position was, but if you look at the levels, more than 50% of the workforce is women, but they're sadly still making that he five cents to a man's dollar, and they are not they are the top levels. >> kids get in the way. i do not care what people say, having children gets in the way. i have three of them, i know. >> it is tough. >> thank you so much for your perceptions. barbara is sticking with us. more "street smart," in two minutes. ♪

>> will come back to "street smart." guess how much your local congressman is worth? i'm going to that white a bit of cash, but for the first time ever more than half the members of congress are millionaires. megan hughes joins us now. it is this a big surprise? they had to have money to run in the first place. >> it is not a surprise they are risk low but how rich they are, and how many of them. aboutmbers of congress your the room with 270 millionaires. that is a lot of millionaires. who is the richest? let's take a look at the list. the center for responsive darrell has congressman

issa. then you have senator mark warner, representative jared involved in bilbao.com, i couple of other ventures. congressman john delaney another investor with some lending companies. then representative michael mccaul from texas. he hit me at the top of the list, but that then they changed some of the reporting requirements when it came to spouses. his wife is the daughter of the chairman from clear channel. but if you guys look at this list, very well-connected but savvy at making money, self-made businessman. back into what you're saying earlier, if you take a look at this list, all men. >> what a surprise, i'm so shocked to see it. [laughter] why wouldn't they want to go to congress? money, theyton of

have power, they have reach, what is left? they go to congress, become a politician. a tremendously successful business as a whole skill set that could really do good with. that spurs islike a professional politician -- ver sus a professional politician. bloomberg, he was fabulous committee was rich, he was experienced by the building greg is this an he applied it to this great city of new york. >> looking at the u.s. census bureau for new york, 15% were underneath the official poverty rate. in the country. >> it speaks to that bifurcated economy that was the -- that we see. >> we're talking about a congress that has cut food

steps, the fed has cut preschools for kids put it is that things that the poor know firsthand. what that says is that this is not only a congress that is the least of any congress in entry, it is also progress that has trouble understanding the people that need their help. >> it does raise the question, are they out of touch? the president brought this up earlier this week, saying we ould be in these shoes -- would these people really ever be in the shoes of the people receiving these benefits? >> of course not. >> they still have the platinum catalog health care plan -- cadillac health care plan. what is interesting here though, is of the first investments for

congress, canor you guess? real estate. was a gritty, commercial banks, computers, and then oil and gas. >> that is another concert, where the investments lie. we will fight for years, stories, by looking through the stock holdings that these congressional members have. the requirements to disclose this are really weak. ock prices are reporting right now, but these go back. >> are they ever reviewed? >> i have seen these documents filed by hand so the computer cannot scan them so they do not end up in a database. this is difficult in duration to even find when it is really well that where people in congress are deciding to make personal

investments at those of us in the financial markets or people who are journalists cover a talk about.- and talk >> and is not just real estate, but when they are investing in stocks, ge is at the top of the list, procter & gamble, microsoft, wells fargo, and apple. questionerms of that of conflict of interest, a lot of members invest in mutual funds, hedge funds, managed portfolios, because if you on the financial services committee , people are going to raise some concerns. our washington source but it -- correspondent, megan hughes, thank you. >> the latest scandal

about the french president. ♪

a quick check of the headlines in our global outlook. the shipwrecked costa concordia will finally be moved from the waters of tuscany in june. it'll be taken to a port to be dismantled. they comes just before the two year anniversary of the ship running around, killing 32 aground,- on killing 32 people. ran a sevengazine page x was a accusing him of an

affair. >> he's not married, yes have an affair with his friend. the french would be disappointed if he was not. having,ght not even be -- it might not even be him, he just photographed a guy, it's assumed it was him. >> selling magazines, that is the long and short of it. gossip.ove to 26 bethel, olivia sterns on the market. frenchow about the political scandal. docs have fluctuated between gains and losses, investors not to sure what to make of this

major miss of the jobs report. the weakestain since january 2011. message -- most a pessimistic projection. you're saying treasuries rally, and the heels going down. the yield was about 10 basis point, and much bigger move there, some traders unwinding bets that the fed was going to accelerate the taper. we had those much better than expected adp jobs report out was that had people rising their you have but then this disappointing jobs number. tesla, the company owned by elon todays down a little bit after reports the charges the use of the cars were

overheating. this is after the department store forecast a launch for the fourth quarter, it's all holiday sales -- and saw holiday sales drop. ♪

>> welcome back to "street smart ," i am cory johnson. >> i'm am alix steel, we are talking real estate with the mobile, the shark take investor barbara. my husband and i bought a two- bedroom apartment in brooklyn ago.00,000 a year you say that we made a terrible mistake. >> i got a five bedroom, three story house with a separate garage and basement. >> and you have to drive to work. happy that i get to

drive to work. no ice yet. a lot of people are doing this, moving out of the cities and into the suburbs. banization.d exur >> since when is that news? >> the country goes through cycles. we're not only thing a cycle out didn't -- andd into granites, but we are also moving into flyover country, from the coast. moving from the ultra-trendy, super expensive entrances go, new york, into the middle of the country, laces like denver are getting very popular. legal,t because we'd is but because you can afford to buy a real house there. money. is loaded with

why are you not shipping out or get -- to oregon? >> there is a lot of this going on where people are leaving to go to the places where they can get a lot for the money. it has been good for the growth of the technology business, specifically or portland, oregon. center, aa big tech big office for goldman sachs. >> that is their biggest growing office, salt lake city. see use the -- and then you -- >> they have a history of mining in that city. what a fantastic place to live. >> good local schools as well. part of what we have seen is a lot of foreign money coming

into places like new york. that is pushing out the people that are actually litigated -- actually living here. up in anyse prices go market, and people get pushed out from manhattan to brooklyn what happens from san francisco, dorgan, to utah. that is the lay of the land, that is always the way it has been. >> people talk about moving out middle ofand into the the country divide detroit was completely blighted. my mother is telling me that all of these artists are moving to detroit, the kind of people that started williams work, and they're going to detroit because it is affordable. it is the going community, i how for all of these kind of weird, hipster, people can hang out. >> the place that nobody would touch has gone up 22%.

they are always defers first to go in, and then the regulatory people will follow. >> i'm actually being quite serious here, or as a -- there was an article in huffington post talking about adding to a different real estate type of market. you people who might want to grow pot and they have a certain type of government they need to do that. is that a real thing that will perpetuate this real estate market? >> i will start writing great ads, pot in the backyard, and a lovely front door. >> you can still grow pot in new york, -- >> i'm interested in this notion of specialty realty. jerseynt northern new vocus is on to boast -- on divorce people on the specific

levels that they have. his specialty realogy someplace realty a realty place you can grow? money,want to make more see get out of it. the better realize that wife is in charge of the house in the divorce. if you're messing around with the husband of a forgetting about the wife has the say on whether or not she is moving out. >> levy asked about the nature of this market. i am from new york about i left --i movedars ago your 16 years ago. i cannot believe the housing prices here. -- imagineounted there's a simple because

everyone is required to live in such a crummy little apartment. is new york similar to hong kong? london? >> foreign investment saved miami, and what is going to build new york from this day forward to the end of time is foreign investors. level,ot about income but about where your are deploying your money. >> our investors for a more households -- our investors forming more households? kids moving back in with their parents, parents moving in with their kids. >> kid living with their parents are doing it three to four years longer. they want to be out with a job, but he gets awfully comfortable, especially when you do not have a job. >> using foreign investments as the future of new york city, d expect to be able to sell to

foreign investors? >> small apartment buildings -- i have the deficit of my own memory of where everyone is worth three years ago. i cannot touch real estate because the numbers are not make nse,. . you cannot make money off of investment properties in new foreignerse, the are taking them. >> does that mean that it is a bubble? >> do not even mention that word. we've had six years of foreign investment prices, and i've lived there for bubbles, and i can tell you that prices descend very slowly, but when they pick up the go gangbusters. .e are just starting it wait until you see what happens to prices two years from now. >> you few really say the prizes

are going crazy, i know surprised you're not -- i am surprised you're not buying. imi cannot afford to buy, not able to go up against the foreign investors. those have the same rate appreciation as a foreign investments? >> the lower tier properties, the top drags her best that. you get a lot of money on the top, and everything moves up. i like apartment buildings, that is what i have always done well in and made money in. >> what's your favorite one? one i bought was the best, and i did by accident, i felt -- i bought a townhouse a greenwich village. i paid $800,000. townhouse. does,t every rich person

i put a $2 million mortgage on it, and bought my big fancy apartment. new york is golden, do not ever say anything about real estate in new york. ,> it is just too expensive that is why a lot of people are moving out. you cannot afford to get a decent house. >> my husband and i could not the house we have if i did not get a great mortgage. what is going to be the impact year when you see rates begin to rise? >> do you see the difference restrained that -- between 4.5%

and 19%? rates are cheap. everyone would get off the fence, and everyone went be in real estate. >> thank you. we will be back in a few minutes. ♪

jackson did the moonwalk. imagine if was three be captured. -- or michael jordan doing the dog. imagine what 3-d image would of done to popular culture. introducing his new job as a chief creative officer for 3-d systems.

enter -- adjust with entrepreneurs, how you distinguish between something that is truly hot read something that is a complete fad? >> a lot of industries i've is a heatedrecently bad that i want to back off from. i was not ready to facebook in but once thes, hype started, it is not my comfort zone. littleto find my own nuggets that nobody else has thought of and nursed them. warren buffett has this great manager with a great reputation that encounters a business with a crummy revocation, it is the repetition

of the business that survives. >> i agree with warren buffett, but that applies to businesses that have numbers. the businesses that i invest in our tiny little startups. there are no numbers to analyze committed your egging on it -- analyze, and if you're picking on a business, that is not right, you should be taking on the art for nor. i watch how they respond when they are being hammered. that gives you a great indication but look for someone who's going to hit that finished for you in 10 years, not three months. we spoke with the ceo and former founder of netscape, there is this notion that it is really important to fail in silicon valley. ityou start a business and does not work out, keep the investor's money and ginger plant. -- change your plan.

do you like the theme of failure and change? >> i have to say, i like to see failure as long as it is not on my money. i do not want them losing money and experimenting. change their model, i would like input. >> are you willing to take a chance on something you do not know about? >> i am going to take a chance of anything that is driven by great entrepreneur. a loss onhave been talk take -- shark tank, it has been big on a great idea with a lousy arm to router -- entrepreneur. i have got businesses out of my portfolio in three months, one recently in two weeks. the money is gone to i do not want to lose more.

a yearmake it through with a, you're the fast-track to having a success. this gentlemen reveal that he used to have a different name but was kicked out of harvard when i was an investor, i spent a lot of time looking at the uncovered background of whose these executives were. do you do that kind of work? >> i have a great system. i commit to the businesses, and that i have them fill out immense amounts of information and then i have kids from the columbia graduate program and tell -- have them tell me anything wrong but this business. financial background the legal background, where they have been in the world. i pay the beach with thousand

dollars. i the best due diligence and the whole industry. >> what about the background? do you look for those kinds of things that they would not put on the questionnaire? full research and background checks will but i'm not sure that would show up. i would pay you $1000 and get you on my team. >> what about revenue? how important is that? if you look at amazon where they are making a ton of money, but they're not making a lot of profit. how important is that? >> i could not care less about revenue. i focus on sales. if the sales are happy, you have a shot -- this is the silicon valley thing, snapped out of -- snap chat achieved -- >> that is nuts.

>> would you put your money there? >> when you think about cash on cash return, do you think about that at the end of the day? >> when any entrepreneur take anybody out, i take money out in revenue vegemite share -- compared to my share. >> what is your relationship once you give them the money? >> i work with them day in and day out, and i love the great ones. i hate the bad one, and i get rid of them, but i love the great once. ./ tell me one so good-looking, that i just have to take their phone calls every time they call. i like living with a good news

-- i am living my second youth. the they have girlfriends. tremendous has christmas on air, she makes homemade cakes and her little kitchen. anyone was ever ordered a dating cake orders another 10 within daisy cake orders another 10 within the year. havee the caregivers, they people skills. i keep ending up in the food business. >> isn't that risky? prices, the food labor prices, especially if you're in new york city. their growing gangbusters because they have the right entrepreneur. >> they will find themselves

investing. >> the low-priced operation, tom and cheese, they have already of but a 92 franchises -- opened up 92 franchises. >> what you think about kick starter? my husband is making a small film and he is going to go on kick started to try to raise the money. how do you know that they are legit? >> they are monitored, they have a threshold that they have to raise the funds. opinion, the in my crowd funding is the single best thing that has affected the start of his this is. pets, get on your feet and sell it. ch, get on your feet and sell it. >> i am worried that we're going

to see so much fraud on these platforms. uninformedey from an public. >> bet. >> what your duration? >> one year. if it does, i will give you $500. >> barbara, it was a giblet or to have you -- such a pleasure to have you. >> good luck, you're going to need it. more,will have lots you're watching "street smart," live on bbg television and streaming on your phone, tablet, and at bloomberg.com. ♪

we have stocks mixed as we head into the close. we are watching all the for you with three minutes and 45 seconds left on the clock. adam is on assignment today, so i'm lucky enough to be joined by matt miller. >> i'm happy to join you. >> i'm happy to have you. 10,s move on to number abercrombie & fitch. know that abuse to be a model for abercrombie & fitch -- adam used to be a model for abercrombie & fitch? posting up 11% after

strong outlook. model, adam johnson. >> number nine is out,, falling the most in the s&p 500 after rockets missed analyst estimates. -- profits missed analyst estimates. intuitiveeight, surgical raising about eight percent. maker home furnishing being cut from neutral to buy,

and the -- indicating a slowdown with them. a week forin issuing guest after showing revenue normal.s weaker than issuing revenue forecast weaker than normal. lulu lemon bouncing back from embarrassing issues. >> the see-through pants might have been more embarrassing. >> maybe more embarrassing for me. >> what was embarrassing about what chip wilson said. it you do not tell a woman that she doesn't look good, or it is her all but the pants are see

through. >> he was just giving the message out to everyone so that they would know what we are all thinking. >> that was the problem. >> you do not, as ceo, say do not buy my pants if you're a certain weight. >> their action was surprising because he has been saying stuff like that forever. -- it wentit, he was viral, he was no longer chairman. the luxury jewelry retailer is also reiterating its full- year forecast. >> hole. the nearly two percent of as they downgrade the stock from neutral to buy. november anded in december because of its growing competition. was downgraded from

overweight equal weight. >> the bell is ringing, we are at our number one stock of the sears, sales during the holiday time dropped to the and and shedding assets, selling locations. a challenging environment out there the s&p 500 with a gain of four points. .25 of 1%. the dow will in the day down. a bit of a mixed market on the day. jobs,ve some -- 73,000 that is what was added to the economy. people were looking for 200 something. we had 238 out of adp. it was bad. >> the unemployment rate was good.

>> do you buy it? >> it is a good number. >> sears has its own problems but in an economy where you have a shorter holiday season and this year's numbers are so bad, you can see what is happening there. whenad some weather but people are not making money, you have a retailer that depends on a big december to save themselves. >> 2.4 million people in november actually quit your on your. that was up 15%. the idea being if you quit your job you know you will be moving to a better job. some recoverysee there. >> it is a healthy sign if you have more people quitting. i do not think a lot of people want to be unemployed in december. that is not a good month. >> there's a difference in being unemployed and leaving your job

and deciding when to start a new one. >> moving onto the roundup. >> let's do that. >> who has the first story? >> it was the news of the day. aside from the job data. nominating stanley fischer to be the fed vice chairman to replace janet yellen. this has been rumored a few months ago. we had al hunt who spoke about this topic. with center elizabeth warren about this topic to get her take on it. >> you like yellen. do you like fischer? >> i want to be hopeful. i'm not sure. >> i was reading barclays know when they came out talking about stanley fischer what his name was first floated a month or so ago. barclays was saying that critics point to his perceived lack of accommodative

monetary policy and the potential for any asset bubble risk. that was an interesting comment. >> it is interesting that you take someone who was running the central bank of israel and now he is serving on the central bank. could possibly run the central bank of the u.s.. >> what is interesting about that? >> do you not find that interesting question marquee is a general and one army and goes to be a general in another army. >> we are talking about the economy. in some ways much more competitive -- more important than an army. will -- i do not know if he is the right guy. >> does it come down to a choice where you have to decide if you have an action for your country and maybe it could be harmful to another country. >> this is something nationalistic.

the idea here is he is an economist first and foremost. he is an academic and economist, he works with the central bank. asis an american citizen well as an israeli citizen. >> we had americans who served on the board of governors on the bank of england. the head of the bank of england came arm -- from canada. who run the u.s. are concerned about what is good for israel. thatsecurity breach affected a whole lot more people than originally thought. about 40 million, it turns out it was more like 70 million people that were affected. nearly double. falling 2.5 are

sent. the company said it will close eight stores on may 3. all i can say is thank god i did not shop at target. >> i did. am nervous and i am kind of pretending this is not happening. i feel like i -- i am very worried about my debit card. card but my credit linked to my debit card. the bank is good about stopping any purchases. >> there is only 250 million adults. inthey quit their jobs november. >> this is the business for the company that -- companies that do credit protection.

you have companies like , companies that sell these consumer protection programs, credit monitoring programs. >> it is good business for them. corporations need to think about approving their security so they are not in a situation like target. bitcoin. have used let -- charging a fee. paying san francisco $100,000 a year. the -- protesters have been protesting these buses. >> i used to live in san francisco. i know you live out there out oute -- i know you live there. san francisco folks, they just

want to protest anything. culture oute a there. they're taking people and putting them in buses. it helps save on traffic. >> the concern is not on the bus. there is a contingent in san francisco, berkeley. not part of it. that will complain about anything. in technology want to work at the biggest companies like google and apple and ebay. they want to hire city workers and those workers want to experience what a city like san francisco feels like. it feels like new york that has lots of diversity. changing the economic diversity of the city they like. it is about gentrification and what that means. ever taken part in

a protest? it is great fun. >> i am there. are talking about volkswagen. >> they outsold general motors in china for the first time in nine years. deliveries climbed to 3.3 million vehicles and gm said they sold 3.2 million cars in china. volkswagen said it will invest in another $25 billion. it is the fastest-growing car market in the world. it is soon to become the biggest car market in the world. that is one of the more exciting volkswagens. a lot of them are getting incredibly ordering. i am waiting to see what they have at the car show. rex it is all about palladium. the palladium makes a cleaner.

it is good for the commodity. the only reason palladium is the only commodity that was up is because of the catalytic converters in cars. millenials are looking down on double herald shotgun. they will be asked to pay for babyenefits as aging boomers are being not to expect those benefits. we will talk about all this next. ♪

>> the cost of entitlement programs will leave our nation drowning in debt. medicaid hit a cast of the said in 2007 and social security is expecting to hit a deficit in

the next three years. fall squarelyll on the shoulders of all of us. no grossman has a new solution in his new book, "generation wtf ." >> we know what that stands for. >> i will not say. >> why the face? >> this is the problem. you have our parents out there that spent away all this money that we are going to be liable for going forward. -- kids inbout school today. >> i started in this with my father and the argument was you can see the dynamics from a long way off. when igan to accelerate look at my baby daughter in started to realize i was living her or going to leave her with the headache. in debt.

to pay for us. rex and reduce services. >> the economy will become less dynamic and less competitive, less efficient. if you have a child or an today, -- born today, it is inborn with a million dollar tax liability. i am wondering is when we will see a backlash. when we you see young people say , we were talking about protesting earlier. when are those protesters going to come out of the woodwork. when do you think the youth is going to say this is not right and this is not fair, it needs to change and have an uprising? >> there are two things in that. the first is a big piece of what you're talking about with the payroll. children came into the workforce. olderemployment rate for people is over double. the first problem is getting them into the workforce. when you go to work and you

start to take home pay checks and you start to see significant sizes. >> when you finally do get a job. >> that money starts to be withdrawn to pay for these problems. you want to send your kids to school and the kids -- the schools are deteriorating. i do not think we are all that far from that point. it will take a while for the dynamic. this is not so much about the pure solutions from a monetary perspective. to thebout the fact children who are coming, you are fighting against the most organized, powerful political voice this country has seen in the form of the elderly lobby. >> i can remember my parents going down to vote on something that would be important for the school system but not all the parents were going down. you had older people so the

to put they were trying in for the school system could get shot down. it had to get -- to do with parents who could not get down to the voting booth in time. but the retired people could. >> florida is an enormous problem. , we transfersystem $11 million to the elderly well we give one dollar to every child. they will vote for entitlement and benefits themselves. if you're going to rob peter to pay paul you can count on paul's support. in a democracy you will have foryone vote for free stuff them paid by a minority. maybe someone who cannot vote like a block of kids. >> if i recall my political

philosophy, that is the ultimate outcome of democracy. said we may not have a great system but show me why that is better. i have been trying to tell my daughter to organize her friends just lick the people in san francisco and to start to have a voice. there is a solution to the problem which ultimately is -- you will have to rearrange how we allocate resources. i know you guys like this. it used to be $.30 on every dollar the government took in was spent on benefits. $.30 on every dollar went to investment in infrastructure and the economy. those numbers are close to 70%. 15% applying for infrastructure. l when you travel around the roads in america. >> the air traffic system -- they just expended the space

tatian's life or year. we do not launch men into space anymore. absolutely amazing that we stopped investing in rate -- basic research. >> they do not have the money. if we are charging our unborn children for the benefits that we expect that we feel entitled have enough money to continue the space program. -- alsolement is always a dangerous word. congress allocates this every single year and they can stop them if they so choose. but you want to talk about protests when that happens. this will have to be something where the country comes together and they will have to change the formula. there is low hanging fruit, things like means testing. the longer we wait, the more this problem grows, it is growing exponentially. the longer we wait, the more the cost. >> this generation really does f.ed to save -- say wt

bit more weyou in a talk about today's jobs report. >> employers may have added fewer jobs than economists would have liked for december. we are discussing that after the break. about a job as a master sommelier? five surprisingly high-paying jobs are next in the ranks.

>> if you are among the unemployed or just looking for a switch, you might want to start thinking outside the box. we have the five most surprisingly high-paying jobs.

♪

it looks like bodyguard makes most of those five incredibly interesting job but not the most interesting for me. try a phone sex operator. not as a customer. but actually to try that job. >> it does not work for men. i do not think women art -- are calling up trying to get phone sex. >> it does not sound very equal opportunity. i am a liberated man in a liberated world. women should be able to call a phone sex line if they like. >> that is not going to happen. >> i am a good listener.

that is what women want. i would just listen to problems. the newest handbags. more than $160,000 a year. >> bodyguard in storm tracker was up there. -- and storm tracker was up there. very dangerous job. video.are selling that ethical hacker that was pretty cool. are hacking for the sake of protest for the good cause or you are -- maybe you're helping out the website by trying to hack into it and showing where the their security breaches are. >> if you're hacking for the good of the cause you are probably not making that much money. >> you are probably running a

bitcoin operation on the side. >> i am thinking about buying a mining rig. >> we will talk about jobs. addedat many jobs being to the economy. not as many as people thought. what is he going to mean for your investment question mark we daschle for your investment? we will talk about etf's. we will be speaking to the reality tv pioneer. the guy who created this among many others. stay tuned. he is with us next. ♪

>> welcome back. i am matt miller. there was one disappointing area in the jobs report, manufacturing. etf analyst joins us to tell us how we can play this thriving sector. i'm guessing you have a manufacturing etf to talk about. >> the closest you can get his industrials. the industrial sector etf's have grown the fastest. they have doubled in size and people are pouring money into this base. >> as adam johnson says, as jobs go, so goes the stock. when a business is thriving and

hiring, it is obviously doing well. >> that is right. it is out facing the s&p. the flows are chasing performance of it. you have a lot of return dispersion. >> return dispersion, what is that? is market cap weighted and you get a lot of concentration. this is what people go into. more liquid than water. there is another one. the powershares dynamic industrial sector etf. this is not one that does market cap weighting. this is smart beta. they do some things to get it or returns so one of this is a screen on fundamentals than they way to the stocks equally and what you have is small-cap exposure and a lot more exposure to airlines in this one. 10% airlines. that has propelled it to 42% return year-to-date over excel i

-- xli. >> they are based on industrials. we see different levels of return. >> absolutely. that is why looking under the hood is important. the other is the ishares global industrials. the rest is japan and europe. this is up 25%. if you are looking at theindustrial etf's -- looking at the industrial etf's. this is a great example of looking at the choices you have available. >> another group you brought along was though centered around gold. i love gold miners because the matter what the price in gold does they never seem to keep up and the price of gold has come crashing down lately. are they going to pop? what are we looking for and why do they move differently? >> there were other things that were wrong with them. management problems, all kinds of fundamental issues. theave seen is some of

smartest money is going into gold miners. they took in $4 billion last year while the price cap tanking. people kept trying to call the bottom. the price to book ratio on averages about one. it has to have a bottom somewhere. one of those is the market factors, gdx. this is trading $780 million a day. like oracle. >> talk about more liquid than water. >> it is very to quit. this is down 50%. three times as volatile as the s&p. if you want to get more risky, this is five times as volatile. it went down 60%. the thing with this one is the last time the miners had a good -- a big rebound this went down. ce, here's the big risk which is noted. the gold miners three times bowl

which is the leverage play. this took in $1.4 billion last year while it lost 95%. it is a speculation here but this one trades about as much as whole foods. jnub.rection has >> even riskier. risk on. --10 times more valuable volatile than the s&p. >> thank you. >> the jobs report came in for december. discuss with our panel of experts next.

>> the jobs numbers are in. they're not good.

>> you have had a long week. a serious schedule for trish regan. >> it is the end of a long week. the jobs report came in. 74,000. i was really surprised by this. >> very low compared to analyst estimates. >> adp had shown up looking pretty good. >> you said you did not trust those numbers. >> i did say that. i trust economists a little bit more in terms of their predictions. what does it all mean for the economy and what does it mean for janet yellen, what does it mean for you? we have experts joining us. annie bell -- anybody else as surprised as me by the numbers? surprised in aat

sense and i was at the same time. there are statistical issues. as a very short shopping season and you layer on the weather. there was a chance you could get something like this. >> i have seen a number like this in my carmaker sales reports. december was cold. is that an unexpected issue for december to be cold? >> the winter is always cold. usual orcolder than warmer than usual, then you do get these fluctuations in the data. we expected zero construction jobs to be created. we were surprised at the drop. we argued that adp was overestimating the numbers because the expected 48,000 in construction. alluded to, we expected strengthen the retail sector. >> that was -- what does this impact.e weather

how do you measure that? >> we look at the number of folks that reported that they did not report to work because of the weather. it is always high in december so or 20k back at the 20 five year average. it was 150,000 higher this december than the 20 five year average. there were weather effects in this report. those weather effects are going to come off next month and you'll get revisions. >> what amazes me, back to the numbers. there was a time when we were adding and it has happened multiple times throughout our economy since we have not seen it in a while. 441,000 jobs in month >> a long time ago. -- in a month. >> a long time ago. this economy is operating on a different metric. one of the interesting points of this report everyone is looking at is the drop in the participation rate. if you look at the demographic, the country had a thousand people a day who become qualified for senior benefits.

there are two or 3000 young people moving into the work place. >> america is getting older. >> getting older. you have a lot of people moving out of the workforce and over the next 20 years the number of seniors almost double. >> a lot of people are still working. they're collecting social security. >> they are steady. we are six or seven years into a this -- into this. people get to the point where they have to retire. the participation rate does not surprise me. on top of that it is the type of thing to me. the fed cannot do anything about it. if they could figure out how to make this age less we would be in great shape. -- i want to ask, if we extend unemployment benefits, if we continue to extend unemployment benefits out a year, year and a half, two years, is that good or is that bad for the unemployment rate for job creation, for nonfarm

payrolls? >> the argument there is if you are per -- a proponent of extending benefits it keeps those marginally attached in the labor market. they do not have to accept lower positions. y stay in the labor force. >> you get rid of those benefits and you have those workers to get jobs but you have some of those workers that drop out of the labor market altogether. you might end up seeing large fluctuations in the and of limited rate that are unexpected. the fed is dealing with the conundrum. their rate policy guidance to the unemployed rate. and general labor market conditions. they backed off of that threshold because the unemployment rate is falling. >> very fast. >> i had the inner -- dinner with neil last night. are gettingople who paid more in benefits than if they went out and got a job. they made the intelligence

decision because there collecting more in benefits. unemploymentding benefits does not help you. what they ought to be doing is calling corporations and saying we have one million people who are on extended unemployment. we will have -- pay half their salary. train the men let's get them back into the workforce in a productive way. the more you are out of the workforce, the more your skills deteriorate. >> should we be harsher as a society? you think about what spain has done. they had people on unemployment for so long and we have heard part of that compounds the problem because you have no incentive to go get a job. >> the smartest people leave. >> if you can collect the check. this? you balance you want to be human. you want to be sensitive to the fact that it is difficult.

compassionate. you want to make sure the engine and the economy continues to thrive and grow. >> you have to look at the people and say what does it mean to get you to work? and simply saying, here's a job that you do not qualify for is not going to get you there. you need to retrain, you need to reeducate. >> we have a lot of work. underscoring the need for fiscal policy that has been -- it has been difficult in this and vermin. >> you can read about it in his wtf.""generation expect the unexpected and the new season of "the real world." backwards 29th season -- back for its 29th season. ♪

>> very excited for our next guest. he created reality tv that you know today. this is long before any of those shows. world."l >> i thought it was the greatest. you get this sweet apartment and a pool table. >> you ended up in finance news. wrong term somewhere -- turn somewhere. girls also created "bad club." "street smart." you have the 29th season in san francisco. what is different now than 21 years ago when the first season

debuted? >> how hasn't aged? >> it is a difference in the world. and theome research premise was you put seven diverse individuals together. it was unique that we had a gay guy living with a black woman from the city and a southern woman. but today, diversity is very different. for most young people it is whether you like to party, whether you look up too much, it is not the color of your skin. it is not who you sleep with. it is a very different generation. >> i hope you got some who like to party and hook up too much is that i will watch. >> we of course have that. >> this is part of the issue. ewers like matt are accustomed to seeing a lot more on tv. keep upping the ante, how do you keep viewers coming back if they have already seen it all? >> that is why this season we

did something different. eal worldled "r explosion." the cast, it seems like it is a normal cast. seven attractive young people within together and start hugging us and we surprise them for weeks and when all of their exes show up. they come in and their exes have moved in and suddenly they are dealing with those axes. -- exes. there is a sense of propriety to it reallyionship. created some issues. >> it complicates things. >> how do you compete and maybe this is what you do with the new scripted dramas that seem to be winning all the awards. scriptedese expensive dramas are getting a lot of viewers. of awardsot win a lot

and reality tv. [laughter] we are about entertaining people. giving them escape from their typical day. having some fun. maybe having ay little profound moment in there. we are not trying to compete with "house of cards." i am competing with "duck dy boo," thoseey boo shows. >> it is now i can fashion, -- back in fashion. >> i think scripted drama is as realityit is because of tv. when reality explosion -- tv scripted i think the folks realize they would to work

harder. for a number of years, "american these shows were dominating. you had the scripted people thinking and more interesting ways. i think that reality tv has been really good for those folks who make scripted television and we have better scripted tv because of reality tv. >> what are you looking at next? >> i am always looking at something new where we have got a couple of new shows where developing with different networks. it is always the situation where you cannot talk about them until the network is ready to talk about them. we are keeping busy. i saw your previous segment. one thing i can tell you, there are tons of jobs and reality tv. this is a field that just kept growing right through the recent recession. >> there is still hope for you yet. matt miller.

great to have you here. have a great night, everyone. have a great weekend. ♪

>> let's get you caught up on the markets. it was a mixed session overall. most stocks rose. the big story, the major miss on the jobs report. 74,004 -- 74,000 for the month of december. the labor department also revised up the figures for november showing that payrolls rose in november by 241,000. a huge gap there. the employment rate fell from 7% to 6 .7%.

we saw a big moves in the treasury market. treasuries rallying on the back of that on implement data. the king at the 10 year yield down 10 basis points today. joining me now for more on the unemployment report and its impact is jeremy hill. on.ad mohamed el-erian he called it puzzling and worrisome. what is your take? >> it is puzzling and worrisome but we have to take a more holistic viewpoint of what has happened in u.s. economic data. just this week we had a ton of data and i suggested to everybody that it was not such a terrible week. is assigninghe fed a higher value to the jobs report. look at the trade deficit. it was the best we have had in four years. overall not a great u.s. economic data week. not so terrible either. a strong adpe had

report on hiring which had economists upgrading their outlook on the back of that. do you think it is going to change the fed's thinking around tapering? >> i do not. this is a singular data point. we had some weather issues. i know that sounds are general and even a little bit crazy. one can imagine that next report we get a bit of an uptick in this month's numbers. i think that is a very plausible -- that is very plausible. we had an increase from november. if the trend -- the trend continues to be up in jobs. herhis is quite a doozy for intolk in and she walks 74,000. how much worse do the numbers we before the fed decides should not taper? >> it is kind of a confusing concept but this is the first jobs report in a long time that

is not pregnant with the question of should we or should we not taper? what this jobs report is going to point to is is there a trend that will change the velocity of the taper and right now, i do not think it will. >> you manage a lot of money. what are the trades you're looking at? >> i do not think anyone should trade off the back of a singular -- ellen >> we had a big move in the two-year treasury report. >> for those who are in credit markets they are very -- they have to be cognizant of the fact that inflation is a general matter and looking at the two- year could have been mispriced. the two-year gain something like on a five percent in yield terms. -- 25% in yield terms. it dialed back on that. i think you do want to look at the vix. if you compare a five-year chart ,f the vix and a one-year chart

it is different and the difference is quantitative easing. that would suggest there might be an opportunity in volatility. >> we will have to leave it there. thank you. have a great weekend. ♪ . .

>> this is "taking stock" for friday, january 10, 2014. i am pimm fox. today, we are going to focus on fabrics -- these state of the u.s. job market certainly being weaved into the federal reserve role plans him when to accelerate the tapering process. we examine how the market should take today's jobs report. plus, big business for the family court system. dr. drew pinsky is going to tell us all about his new documentary entitled "divorce corp