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tv   Bloomberg Business Week  Bloomberg  July 23, 2016 3:00pm-4:01pm EDT

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>> welcome to "bloomberg businessweek." erdogan presses down. >> peter thiel goes to cleveland. >> all that ahead on "bloomberg is this week -- businessweek." alan, the future story on turkey. the sales -- the two against president arden one last week. there is a massive crackdown on journalists and teachers and different folks. >> this is a story we had in works before the coup.
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we were doing a story about an opposition type newspaper and its editor and what it was like to run a newspaper that felt free to criticize the regime when so many other papers were being cracked down on and what it was like to be in that position. then the coup started and suddenly our story took on sort of a different dimension. turns out the editor we were writing about is one of the people on their list of people they don't like post-coup, because post-coup they are cracking down on opponents. there basically isn't a free press. it's a very complicated situation and we talk about how for the press it's really complicated there. right now the guy we focus the story on is no longer in turkey. david: you approach the story in
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a different way. there's been this coup, you looking at the role of the opposition. how has that changed, being the opposition in turkey? >> they are cracking down on society,erent aspect putting judges on lists for targeting, putting journalists on lists, teachers on lists. it as an excuse to consolidate the power of air to one -- erdogan and prevent another copu. -- coup. david: pokemon go, what's the phenomenon? >> i'm not yet but i promised our department i will. david: we focus on what this means for nintendo that was so late to get into the -- nintendo, which was so late to get into mobile gaming. >> the company that developed the game was niantic and they are a spinoff of google and the people who run this company
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didn't work on location technology at google, kind of google earth projects, that have translated well into this game. kind sort of son of google of thing. carol: in the future section you guys talk about donald trump. specifically, peter thiel. >> we have a fascinating story about peter thiel, who is sort of his own kind of guy in silicon valley. we mention a statistic, something like 70% of donors in silicon valley give to democrats. peter thiel is a libertarian and he is supporting trump this year . he spoke at the convention. is not the kind of trump supporter you would expect. he's an immigrant, he is gay, he has not been a traditional republican, and he finds his own way.
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we talk about why he would be interested in supporting trump and why this would be good for his business and various interests. david: i think of the role he's been playing behind the scenes in the lawsuit. we know of his political beliefs. roleis a very prominent for him, speaking on stage at the rnc. >> it is. some people suggest you actually wants to embrace chaos right now, he wants to bring on trump and sort of wipe the slate clean in washington. he thinks chaos is kind of a good thing, he's a disruptor in the extreme grade he was one of the cofounders of paypal, which changed a lot of the way people view the way they use money. as part of his disruption strategy, and in the story we talk about -- he plays chess. he's a very accomplished chess
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player. but he uses a move that only masters use because he thinks it will shake up the game. carol: i spoke to a reporter. >> is known best as the godfather of the paypal mafia. he found it paypal in the late 90's, they sold to ebay, he got very rich. carol: elon musk was part of that. >> a lot of key members of silicon valley are tied to peter thiel. the thing that's crazy about him is he's on another planet ideologically for most of those people. your average tech person is a mix of socially liberal and a little libertarian, like a lot of business leaders. thiel is a radical libertarian, which makes them a curious fit for donald trump but also a curious fit in silicon valley. carol: what are some of his views? >> may be the most interesting thing from the past week was
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that he said he's proud to be gay. the republicanin party, the log cabin republicans came out with a statement shortly before, saying the platform was the most anti-gay there had ever been, and the fact that peter thiel gets up there and says i'm proud to be gay, that is interesting. he also happens to be pro-marijuana. he has invested in a bunch of marijuana companies. it's interesting to have someone who's -- >> he's also known, you see this mediamismatch -- gawker in 2007 outed him or sort of publish the fact that he was out to certain members of his inner circle, and he just kind of went away quietly and then years later, it was revealed that he had been secretly funding his
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lawsuits. that ultimately led to gawker's bankruptcy. he's at once this supersmart intellectual but also an operator. when we look at this speech, you have to see it in both of those terms. he's putting forth his agenda, but also trying to protect his power. carol: how does he feel about things like immigration, taxes? how does it jive with the republican party and donald trump? >> on taxes he's like a doctrinaire libertarian, so that kind of works. generally speaking, tech companies are more dependent on immigration than almost any industry. is extremely popular in silicon valley. carol: i feel like the tech of avoid often kind politics. they are doing their thing in silicon valley for the most part i don't get too involved. over the past few years we've
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seen a lot of tech, -- tech companies have gotten more involved. >> yes. it's interesting. traditionally tech people were so proudly apolitical. it makes sense if you think about the fact that for like 20 years, tech companies did not have a lot to do with government. in the past few years, the tech world move much more into the regulative sphere. peter thiel is an investor and their main customers are governments. carol: how do his colleagues in silicon valley feel about his connection with donald trump -- is inald trump, as he other industries, is a polarizing figure. in silicon valley, he really kind of rankles people. silicon valley is very sort of touchy-feely. donald trump might call it politically correct. thiel's support for him is very much lyrically indirect even
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among members of his inner circle. even people who are close to him have not really talked about it great david: the cover of "bloomberg businessweek". talk about the decision to go black and white against this fleshy background. >> the photographer is someone great. he actually specializes in black and white. it wasn't super deliberate. we just needed a photographer who loves black and white work. there's something about black and white makes it a little more timeless and a little more iconic. we really like that about it trade in certain respects, you kind of don't know whether it's 2016 or 1950. carol: what was the message you guys were trying to get across? there wasn't like a deliberate intention behind it. i think we just want people to
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read into it however they want to read into it. the process this year is a lot different than it was years before. people maybe alwyas say that -- always say that. david: we associate red with republicans and blue with democrats. you here choose a peach. >what would you call it? trump-tone., like that was very deliberate, not to do red or anything blue or anything that had connotation behind it trade admittedly, this is a weird color, but we thought it paired nicely with the black and white. how many different photos did you guys look at as a possible cover? how many angles of the crowd and so on? >> we looked at maybe five or so. he captured a lot of the big
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republican names. we have a picture of trump on the inside trade something about this crowd photo stood out to us. it is a somewhat subversive crowd. this woman is holding a trump sign and looking admiringly at what i assume is the stage. it captures this very special moment, the people who are part of this. we all of sus over the personalities and trump and things like that but sometimes you forget these people are there because they are being supported by their base. there was something interesting about that turning that sort of lens to the people who are supporting as opposed to the big personalities. carol: just ahead, the mormon millionaire working to build a utopian community and vermont. david: walmart's plan to bring manufacturing jobs back to the u.s. off to a slow start. carol: kaiser permanente designed an automatic hospital of the future.
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carol: you can also find us on radio on sirius xm 119, on a.m. 1130 in new york, a.m. 1200 and boston, 90 9.1 fm in washington, d.c. and a.m. 960 in the bay area. david: walmart discovers is not that easy to bring back thousands of manufacturing jobs to the u.s.. >> former u.s. head of operations at walmart came out and said they feel what is good for the u.s. economy is good for walmart. we are all just climbing out of the recession at this point. and that they were going to spend $250 billion more over the next 10 years on goods that were made in america. about 1/2 of $1
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trillion in sales every year. over 10 years, $260 billion. no other company has come out and done something like this. they felt like they wanted a strong u.s. economy, they want a job growth and job creation in the u.s. i was good for their business. .t is also good er for them -- pr for them. blamed for been helping -- there is wto and nafta and everything they have done. walmart was really famous in the 1990's and early 2000's for pushing companies to lower costs, negotiating ruthlessly over a penny and that drive for lower costs is what needs to go overseas and move production to
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china to meet the demands of walmart. walmart has been blamed for sending hundreds of thousands of jobs outside the u.s. and here they are, the only retailer making a major push to bring made in the usa products back. carol: roughly 2 1/2 years ago they set out on this mission. is it working? >> there's a group that was supportive of what walmart is doing. but they tallied up the number of jobs that have been created aced son public announcement companies have made. we are at about 7000 jobs. carol: is it too early to tell? can they actually make a difference and create a lot of jobs by doing this in the u.s.? >> if walmart spends $250 billion they will be able to create 250,000 jobs in the manufacturing sector. when you count all the indirect jobs, someone is getting there hair done and nails cut, it could be as much as a million.
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group, evenlting they said, it's hard to calculate this. if all goes as planned as well as it could be, we could have 250,000 manufacturing jobs. david: kaiser permanente has a plan to become the most innovative health care program in the u.s. >> they are interested in figuring out how to use technology to prepare for health care 10 years down the road or even further and craft what they see as the future of health care. carol: they have a huge warehouse where they are exploring this. talk to me about it. a they use this to create template hospital when they were about to build 13 new hospitals in california. they built these hospital rooms first with cardboard. when they got a little more then they really tried
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to build a hospital rooms and put in furniture and they built a mock hallway and then they asked about 1000 stakeholders to come in and give comments. these were doctors, nurses, patients, consultants. they even had the janitors come in to test whether the janitors carts could fit in and out the doors and go down hallway smoothly. the idea was that they could save money by having this template hospital in place, and once everybody signed off on it, when they went out and build these 13 hospitals, they can copy and paste. carol: you write about monitoring technology in your story. i'm guessing that ultimately this is all about kaiser permanente being able to improve the bottom line, save costs down the road grade we talked about health care costs and how they keep going up and it's got to be about cost control. >> absolutely. kaiser is looking particularly
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ahead to the population aging and as people age, they tend to have more chronic illnesses. we know patients with chronic illnesses eat up a lot of the budget when it comes to health care. there are things they are thinking about, like how do we keep patients at home? can we have more telehealth visits? they had 59 million virtual exchanges in the last year, whether that his e-mails, telephone calls, or video visits, which is more than the total number of in person visits they had last year, about 50 million. home raidedeople at they don't have to come in for services. -- home. they don't have to come in for services. they are looking into different ways to help people stay healthy at home. carol: up next, the 19th century document is inspiring a massive sustainable community in vermont. ♪
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feature section, a potential utopia in vermont. in january there was a library named nicole and she was putting together a report and she so i series of land purchases, 900 acres in four towns. it turns out joseph smith, the founder of the mormon church, was born in vermont. thistarted looking into company and found out david hollow is behind this and he has this utopian plan based on documents created by joseph smith. carol: and this plan involves these communities trade initially in vermont, 20,000 people's community. >> it's a long ways off, but
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that's the hope. it is supposed to be built on 5000 acres and house 20,000 people. the whole plan is based on a vision that joseph smith had in 1833, i believe. fellow-- and two mormons went into the woods. they had been studying an old testament prophet, enoch. vision, jotted it down, and the document was lost for a long time. the mormon church has never given it much significance but david hollow found it and he has been studying it since the 1980's. he said he's put more than $100 million into developing this plan. interesting. it's like a closed off community or contained community, and a sustainable community. but there's businesses, places to socialize. it's all in one. >> yes, it's all in one. everything is right there. that's the whole plan, you
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should be able to walk everywhere. everything is about 1/2 mile away. the whole place is surrounded by nature. drilling andh into believes it can be sustainably done. carol: i mentioned a community of 20,000 but he really wants to build 1000 of these new vistas in vermont. >> yes. carol: what do the folks of for mont say -- of vermont say? >> they are shocked. it's hard to believe this is happening. 50 engineers already working on plans. they are not at all happy about this. the fact that at this point he has already spent nearly $5 million scooping up more land than is in central park scares people. david: up next, hillary clinton's army of door-to-door canvassers, will they convince likely trump voters to switch
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sides? ♪
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. 'itrestn i, w c u'e e dry.ynebuss. oding uc pwiwiro fi hthatpsusui david: welcome back to --oomberg is this week "bloomberg businessweek." car on "bloomberg businessweek." ♪ we are with the editor of "bloomberg businessweek," ellen. shell, a company we associate with oil, sensibly, now responding more and more to the threat of climate change. of people view this
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as a source of energy as we move toward solar and wind, etc., and natural gas is cleaner. plants oner to turn off, and they are looking at being more of an oil and gas company, and it turns out a lot of the majors are moving in that direction. not that it is going to take over there oil business, but more of what they are digging out of the ground or pumping out oil,e ground is gas than it really the only one is that there's steak is lower. carol: that is not easy. they made an acquisition, but there are obstacles. : it is complicated. you have to build terminals.
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it is definitely a complicated process. complicated, spotify and their plans to go public. there is a huge situation out there. that is the big question, because spotify is not profitable, and for investors, there is a reason to be skeptical, because spotify is right now negotiating with labels, and the question is that is always the question. and those negotiations are ongoing, so into you figure out how much they are giving the record labels, it is hard to know what the profitability outlook is going to be. david: this is a really hard line of business to make money in, it seems. ellen: it is, that is because you have to compensate the labels, and this has been a big
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controversy. there are artists who were unhappy about being compensated, and it is sort of the ongoing transition from vinyl to streaming any to services like spotify. and then you have companies like apple that you are competing against. david: there is a wonderful photo essay on the republican convention. tell us about it. well, we visited the convention, obviously, and we had some great photos, partly due to the crowd and partly due will absolutely recognize in not formal poses, and it sort of takes you there in a way that you did not imagine. carol: edited down to a few wonderful images. yes, it really works and shows it in a good way. david: remarkable, looking at
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the rnc. what did you want to capture with these graphs? >> we led with the notion of getting the unseen convention. we have a recurring column called hidden hand. sort of looking into all the people who operate in the ecosystem of the large political infrastructure. and so we were looking for backstage moments, kind of gladhanding and things like that, and so our photographer, john, has been photographing all of the dnc,ntion and is doing the as well, so really looking for those things he will not see in the daily news cycle. this time in history. carol: what about the photo of donald trump? what determine what you would have of him? david: was it a given that you include him? >> i guess it was. nobody knew he would be at the convention on monday,
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necessarily. carol: that is true. >> it was a bit of a lucky break for us in one way. there is a huge scrum of reporters, and i guess you have seen like 20 or 30 photographers bombing the vip section. and so, just trying to find a moment where you can get to see the candidate is a pretty lucky opportunity. so, honestly, it was a gamble, but i think he got something that is pretty unique. of my favorites is of roger stone. tell us about this. >> roger stone is an informal adviser to the trump campaign manager a fairly outspoken critic of hillary clinton. he was in the media section of like the arena doing interviews, a great moment of like the wizard of oz, the man behind the curtain. he has gone on this white, linen suit. it really takes you back to a
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totally different era. carol: it almost looks kind of creepy. >> there is a camera flash from below casting this shadow on him. we had a couple of different ones, but we thought this one match the spirit. carol: you all must do not know it is him. thank you so much. david: the republican national convention was not the only story in politics this week. bloomberg businessweek also profiled hillary clinton's canvassers. carol: they are going door-to-door trying to win over working-class voters. >> an organization that claims 3 million members with a focus on white, working-class nonunion , voters. in some of the same states that will be front and center in the election, like pennsylvania. focusing onare jobs, and there are also endorsing hillary clinton. they are trying to drum up votes
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for her, aren't they? >> i followed their field director in pennsylvania as he went to make the appeal to white working-class nonunion voters. disproportionally. in pennsylvania in areas that have been hit hard, not just recently but over the last couple of decades and where there is some suspicion about both candidates. it is interesting. you went to pittsburgh. it is a city that has been hit hard economically, and a concern, a lot of individuals who cannot get a break, maybe do not have a job, maybe have struggled, these are potential voters that could go to donald trump. >> i talked to a voter after watching a canvas or talk to the voter, saying i'm going to vote to donald trump -- four donald trump just to send a message, even if it is to send the message that things really, really need to change, and we
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cannot have another politician in there. and this is especially in some of these towns like pittsburgh, where donald trump against that the clinton history with trade deals are going to hurt. how persuasive are they, and how transparent are they out there talking to potential voters? >> they identify themselves as an affiliate of the afl-cio, and that is a brand outside pittsburgh that is a positive for many voters. they insist on making the point that they are not from the theyratic party, and assess the candidates on their issues. of course, as you would expect, arecandidates they supporting our prolabor and union backed candidates, generally, and the issues that they push our economic issues. have morebelieve they credibility because they do not
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go into issues like abortion, for example, or guns. carol: up next, how to maintain your privacy online. we have a handy guide. david: and, how to define autopilot. that is next on "bloomberg businessweek." ♪
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"rol: welcome back to "bloomberg businessweek." david: you can listen to us on the radio on the following stations -- in the center section this week, a step-by-step guide to protecting yourself online. here is reporter jordan robertson. >> the most basic thing you can do to any social media account is sign up for text message login verification codes. they send you a text message. you input it into the site, and that goes a long, long way to protecting your account.
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there are ways around that, so the second step of the ledger we recommend is setting up a pin code so a hacker cannot call verizon or at&t, and then they get access to your account and lock you out. if you do those two things come in you will be a long way down the road to protecting those accounts. it is not bullet proof. there are always workarounds, but those are two things we recommend you start with to protect those online accounts. carol: it is interesting. as you talk about that you , mention a journalist whose twitter account was hacked. >> the worst, 2012, a journalist "wired," the hackers got so deep into his computers they got into his macbook for my iphone and ipad and erased all of his photos, all of his data. he had a little girl, and the hackers erased all of his
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photographs, and you have got to set up these login verifications, as if he had it, that would not happen. carol: you also talk about clearing your cookies. remind everybody of what they aren't you they are basically a blueprint or map of everywhere you've been. >> everyone thinks of cookies as the way advertises -- advertisers target you and track you. but they are also something else, tools for hackers to target you. when you log onto the internet and websites collected about you as you travel around the internet, hackers can use those cookies to target you and find you on the internet and launch attacks that way. this is kinder -- kind of at the higher end of things, the snowden end, but one more way that hackers can find you online. and it is a really important
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point to remember. if all you are doing is compiling this ever-growing dossier on yourself, it's also helpful sometimes to refresh those files, delete the cookies and start over. david: tesla defending itself amid autopilot lawsuits. >> on may 7, an ohio driver was driving along a highway in florida, engaged in autopilot, a tesla tool that allows drivers to allow the car to steer it self. it went on the highway. it seems his hands were not on the wheel and the car did not recognize that an 18 wheeler was crossing the highway at the same time. there was a collision, the driver died. after that, to more accidents --
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those come more accidents. -- after that, two more accidents. the driver was injured, they survived. but what has been happening lawyers have been pontificating, , wondering exactly what these crashes mean. will tesla be held liable? carol: that is a big question. who is liable? is the company liable? what do they say to drivers who our testing out essentially the autopilot function? >> that is the $64,000 question right now. tesla's argument has been clear for actually a couple of years musk has been saying quite clearly that drivers will be held responsible because this is not autonomous driving yet. the technology is not there yet. drivers need to be careful and need to have control of the car like they would any other car. this is a safety function and a bit of a luxury but should not change the way drivers opus on the road.
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the counter argument, which the plaintiff attorneys are beginning to build, is, look. when you call a product "autopilot," you are asking for drivers not to pay attention. and there is this argument called attractive nuisance, similar to if there is a swimming pool not being guarded by a fence and neighborhood children start to jump in, who will be held liable? it is likely the homeowner the , pool owner, the homeowner. similar to that the argument is , it will be tesla held liable in spite of the instructions to keep your hands on the wheel. tesla could be on the hook. carol: there is so much detail in there. put out warnings, but what if there is a design flaw, does that make tesla liable? that will only enhance the plaintiffs' arguments.
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some have asked the same questions. and whether a product defect is testing andd beta yes, tesla could be on the hook. david: up next, rio on the hunt for revenue, trying to unload its governor's mansion. carol: and the art of playing dead. a look inside a business, just ahead. ♪
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♪ carol: welcome back to
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"bloomberg businessweek." david: and i am david gura. the rio state is broke. carol: and now, the governor is selling his own residence. >> the pension system, selling off to the highest bidder, and this was, let's say, a unique asset. it was built in the early 20th century by one of the richest men at the time. carol: this is on an island. a pretty exclusive place. right? >> yes. it is completely isolated from the rest of the city. it is covered with jungle, used to have these big feasts and peacocks roaming around. the elite went there for parties. and, you know, it is part of the state government's effort, let's say to put on a
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, brave face and show they are cutting their some of their own flesh, as well. it will not fix the problem. it is a demonstration that they are selling off their own assets as well. carol: is it likely to sell? what could it go for? they are hoping to close a bit of the gap that rio is facing. david: it is tough to say. the executive is in charge of selling this property. he was really -- first of all he , was unsure about if he was willing to sell it and even less sure of how -- of what the price would be. because it is a truly unique property. every day that the state sells an island with a mansion on it. there's nothing else on the island. just someone's future private paradise. david: a review of elizabeth greenwood's new book "playing dead." a journey through the world of fraud. >> it is called "playing dead." a journey through the world of death fraud.
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elizabeth greenwood wrote it, and she is a writer. i guess she is about 31, and she was drowning in student debt, and i guess sort of joking around with a friend one night over dinner. she talked about what you was going to do and her friends and you could take your death and she decided to look into that and discover there was a whole world or industry -- a worldwide industry cottage industry devoted to that. carol: you reviewed the book -- did you like the book? >> i did. carol: there are interesting characters who could help you fake your death. he helps people disappear. >> he said by taking your death, people will come looking for
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you. helping someone disappear is almost as good. he helped 50 people disappear. carol: how do they do it? >> you have to be ready to cut loose anybody or anything -- the less money have in the bank, the easier it is for you to erase these vestiges of yourself. to go very far. you can hide pretty close by in plain sight, and at one point he told the writer about erasing his life. a lot of people are not happy with their current life. is sadness. what is involved. >> i guess with the philippines,
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it is beyond the cottage industry. it is sort of an industry where dead bodies, and people will stage mock funerals, and you can fake death certificates. and there are also people who are hired by insurance companies. they spend their whole careers chasing people down. businessweek"erg is available online. carol: what was your favorite? david: the convention. going behind the look at these powerbrokers. yours? what was your favorite. buying up tons of properties in vermont, and the plan is to have incredible villages. ultimately, he could have 20 million people, but there are
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specific designs, and it is kind of crazy. david: very cool. a great read. we will see you back. ♪
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