. hi, everyone, welcome to "on the money" i'm becky quick florence's furry, the devastating impact of the storm. it's called virtual kidnapping and it's happening throughout the united states where are these chilling phone calls coming from. >> tell me what you need i don't know. >> it's been ten years since the financial crisis, what have we learned? are your retirement finances safe fall is almost here, find an affordable and tasty wines

'on the money starts right now >> this is on the money. your money, your life, your future now, becky quick >> we begin with the fury of florence the massive storm made landfall on friday, delivering hi winds, heavy rain and tides danger and damage is this week's cover story. seen from space the massive storm is clear it measures 400 miles wide with powerful winds >> this storm is a monster it's big and it's vicious. >> while the total human and financial cost is still not known, we do know that last year was the most expensive hurricane season in u.s. history when three of the five most destructive storms ever all struck within 30 days of each other. august 5th hurricane harvey slammed into texas bringing $127 billion in damage

september 10th, hurricane irma made landfall in florida costing another $50 billion, then on september 20th, puerto rico was hit again by hurricane maria costing an estimated $50 billion in damage. although florence is the first major storm this year, hurricane season in the atlantic will last until november 30th. we're right in the middle of peak hurricane season. what could be ahead with dan leonard, senior meteorologist at the weather company. thank you for joining us. >> nice to see you. >> how is this storm different what makes hurricane florence unique >> we've been tracking it for several days now it made landfall early friday on the carolina coast near wilmington really what made the storm s interesting was the trajectory it came in from the east, typically in the carolinas they're no stranger to big hurricanes in eastern north carolina, but typically storms move from south to north, so you get a glancing blow. they sort of parallel coast.

this particular storm came in straight from the east and that made it much more damaging as far as storm surge because it came in perpendicular. the wind and water was forced in and that came in perpendicular to the coastline that's why we had more damage than you normally get from a typical category 1 landfalling hurricane. >> for those that don't live in the storm's path, there are potentially economic rippling effects. what are they? >> absolutely. i mean, the carolinas are big. you have the economy to talk about. we've basically gone a week now where everything's been shut down in the carolinas. that's probably going to last another week as they start to recover. number two is even though they don't have a real big cash crop down in the carolinas, per se, they actually have a diverse crop economy down there. you have everything from corn to soybeans to tobacco, to cotton these are all things you're starting to get into the harvest season and a lot of heavy rain standing water and flooding is the last thing they need when it comes to harvest. i'm particularly worried about the cotton you're starting to open up a lot

of the balls, the cotton is exposed, you got a lot of heavy rain on top of that and days and days of flooding that's the last thing you want we could have serious damage to the cotton crop in both north and south carolina. >> what about the power grid the carolinas have six nuclear power plants in the paths. how could this storm impact the power grid there >> obviously, we have to deal with a lot of damage and get back on track. our saving grace here was that the storm weakened just upon landfall so instead of a category 4 like a lot of us feared which would have been absolutely catastrophic to the infrastructure, we had a category 1 so winds generally in the 80 to 100-mile-an-hour range on the coastline. that's not diminishing the fact there's going to be a lot of damage but it could have been a lot worse had it been a category 4. i think the power plants are okay we have brunswick on a pretty major river there. that will get into flood stage perhaps record flood so we'll have to watch that. overall, think we're probably okay as far as the power grid and infrastructure there in north carolina it's going to take a few weeks to recover but we will. >> you know, we are into the height of hurricane season right

now. but we're not through this we're still talking about a number of other named storms that are out in the atlantic you've got joyce, helen and isaac. what do you foresee for the rest of hurricane season? >> it's funny, becky, just a few weeks ago, we all thought this was going to be kind of a dud of a season we had el nino when you typically have an el nino summer, you tend to get weaker than normal hurricane activity in the atlantic the last couple of weeks, true to form, right during that peak time for hurricanes, boom, we had three, four, develop just like that. i think that's probably going to continue for another couple of weeks. we have a lot of high heat potential out in the atlantic right now. we'll probably have several more storm systems. but as we get later into the fall, i think we're going to taper it off rather quickly. we will see el nino start to pick up. that decreases the sheer across the atlantic anything that does try to develop i think will be weaker than normal as we head into october, november. fingers crossed. but this is really the peak. as soon as we get over the hump, i think things will taper down over the next 1 to 2 months.

>> dan, thank you so much, it's good to see you. >> you too, becky. now, here's a look at what's making news as we head into a new week "on the money". shoppers were not as busy in august as retailers hoped. retail sales rose by 0.1%. that's the smallest gain in six months but numbers from july were revised higher sales of clothing fell while mail order and online shopping increased. retail sales of course are closely watched because consumers make up more than two-thirds of the u.s. economy stocks had their best day of the month on thursday on word the u.s. invited china to talk about tariffs. the markets were mixed on friday the world's richest man is giving away some of his money. jeff bezos, amazon ceo, and his wife mckenzie will give $2 billion to a project called the bezos day one fund it will commit $2 billion to fund existing nonprofits that help homeless families and create a network of preschools in low-income communities. his net worth is about 164

billion dollar up next, what would you do if you got a chilling phone call that your child has been taken criminals are targeting different parts of the country in hopes of cashing in our investigation, the extortionist later, it's been ten years since the lehman brothers bankruptcy rocked wall street and main street. how much safer are we today from another crisis we'll talk about that. right now, though, take a look at how the stock market ended the week

there is a growing scheme leaving a trail of victims across the country criminals claiming they're

holding your child for ransom in hopes of cashing in our investigation, the extortionist mow real was it? >> someone had my son, who i heard screaming and crying in the background, covering his mouth with a gun to him. >> 30 minutes he says of complete terror. jamie heath had no idea he was being conned but this is no ordinary hoax. an extortion scheme so paralyzing, the feds call it a violent crime. fbi special agent eric

arbuthnot. >> the victims are wealthy, doctors, lawyers, professional people, get the phone call, make the payment. >> heath is a music producer and lives in los angeles investigators say a recent target for the extortionists he was inside his home when we got the call. >> i heard him say they're going to shoot me, they're going to hurt me. then i hear someone cover husband mouth and someone grabs his phone. and then, they grab the phone and say listen to me, how you respond determines if you see your son again. >> you thought it was son right from the son >> yes there was no thinking, it was my son. >> he rushed to the bank. >> i ran there, rushed down the street, ran to the bank. >> once inside he got a text

from his wife. >> that said mack is safe, he's at school. >> that's when he finally called his son. according to the fbi, versions of the scheme have been around for about a decade but it wasn't until recent years that agents made a startling discover while pouring through victim's phone records arbuthnot said they found calls made to people around beverly hills were coming in from one place. >> our investigation has revealed, for the most part these phone calls are being made by prisoners in foreign countries, mostly prisoners in mexico. >> you're telling me that mexican prisoners have this terrifying scheme down to a science? >> yes yes. >> we're talking about thousands of phone calls over the last few years. >> this is undercover video, aired by the mexican broadcast network, it was taken inside a prison inside mexico city. the people you see on the phone here are inmates

according to investigators, casually making cold calls right out in the open. >> so these prisoners are really hoping to strike it rich with these calls? >> absolutely. >> the whole point of this for them is to make money, make money fast, make as much money as possible. >> the call to jamie heath also from mexico do you think you'll ever forget that experience? >> no. no because for me those 30 minutes, my son was taken >> we spent weeks reaching out to different agencies in mexico and finally heard back from the mexican embassy. now, they say the issue is not raised by u.s. authorities during meetings with law enforcement. but the fbi tells us they have been working with mexico to try to come up with a plan to shut this down. when it comes to money, the fbi says victims often end up wiring it to mexico or just leaving it

somewhere in the states to be picked up. the bottom line here is if you get one of these calls, just hang up. becky? >> that is easier said than done thank you very much for bringing this to our attention. andrea day. up next, we are on the money. ten years ago, wall street giant lehman brothers went bankrupt in -- and a financial crisis followed how much safer are we today and could it happen again? and later, put down your pumpkin spiced latte and pick up a glass of wine. we'll give you the perfect picks for autumn inspired dishes

it's been ten years since the fall of the financial giant lehman brothers marking the largest u.s. bankruptcy of a public company the effects rippled throughout wall street and main street. and the great recession soon followed millions lost their jobs, their homes and much more. could it happen again and are we any safer now? joining us is greg iff from "the wall street journal" you followed it so close as it was happening, here we are ten years later. are consumers safer today than we were then >> consumers are safer we've put a lot of regulations in place so that some of the most dangerous products that hurt them ten years ago like negative amortization mortgages where each month you owed a little bit more than the last, they're just not around any longer. because of regulations, because of banks' own caution, you know,

the riskier types of borrows, they don't get mortgages any longer i would say that just because consumers are safer, doesn't mean they're better off. i have real concerns tha in trying to make consumers and systems safer, we went too far the truth is that the standards on lending for markets are so tight now that a lot of people who are legitimately qualified and deserve to buy a home simply cannot do that there are millions of people today who are renting instead of owning, and i think that's pretty unfortunate >> that's a type of situation that really effects the bottom end of the stratus too it's not affecting any of the one percenters or 10 percenters. you're talking about issues of people who -- all of these reforms were designed to protect are the ones who end up getting hurt. >> there's always a balance to be achieved. do you have a system where you take too much risk which is what we had before 2008 or a system in which you take too little rest. i argue we had a lot of that in the last ten years it's not that people can or won't buy homes or take out

mortgages, look at businesses, you know, big corporations seem more interested in buying back stock than in making big gambles with their money on brave new innovations and investments. fewer people start new businesses these days. that's unfortunate >> that is unfortunate you think that's why we've seen slower than expected economic growth at least for much of the last ten years called the new normal? >> yes i do think there's an aversion to risk, which is part l psychological and partly political is one reason growth has been slower. we know risk never disappear no matter how bad the crisis it always eventually comes back. it comes back in the form we don't recognize because it's different from last time when i look around today, here are a few things that kind of worry me a little bit. with these very low interest rates, it's tempted a lot of people who can borrow to borrow a lot. the corporate sector is very leveraged. they've taken out loans in very opaque forms we're not used to i would also look at china this is a country whos booming credit growth looks, you know, suspiciously like what we saw in this country, the united states, ten years ago. >> you say things like that and

people who maybe have been reluctant to participate, who have been reluctant to kind of get back into the market because they got burned so badly may say, okay, i need to step back what would you tell people about their 401k savings or any other savings that might be tied to the market are they safer than they were before, or is this something that if there are bubbles building up, it will hurt them >> that's a very difficult question to answer when you look at the standard metrics of valuation, stocks look expensive but they don't look insanely inexpensive. if interest rates stay low, by which i mean the fed raises interest rates maybe to 3% but not any higher, then i don't see reasons why we're going to have a bubble collapse on us. but i would add the following, becky, which is i probably said the same thing ten years ago, 20 years ago. there's a lot of people who have said things like that and lived to regret it i think everybody has to basically look internally at their own tolerance for risk, listen to their adviser and think about, you know, when are

you going to need that money if your horizon is ten years or longer, you can ride out a lot of stuff even a crisis as bad as we had in 2008. >> yes, a long-term horizon is the most important thing for any investor who is looking to do this it is always great to see you. thank you for your time today. >> thanks for having me. up next, a look at the news for the week ahead and you thought rosette wine was just for summer. think again. we have the perfect pours for the season coming next so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.

here are the stories coming up that may impact your money this week. on tuesday, the national association of home builders will release its housing market index for september. also on tuesday, leaders from north and south korea will meet to talk about how to denuclearize the peninsula on wednesday, we'll be get ing housing starts for the month of august and it's talk like a pirate day. on thursday, the philadelphia fed manufacturing report for september will be released and we'll be getting a picture of the economy with the leading indicators for august. don't look now but fall is almost here. so why not celebrate with a glass of wine. joining us for that is ray aisle, he's the executive wine editor of food and wine magazine ray, i always love it when you are here, and the staff loves it when you're here, and you bring wine >> i do my best to make everybody happy. it's my job in life. >> so you got a nice little selection here >> yes, yes, i wanted to bring some things that are good for,

you know, early fall we're not quite in the entertaining, you know, sort of serious holiday season yet but we are getting into that kind of fall flavors and harvest time and it's a shift in wine for that. >> let's talk about first of all about some of the whites, though i think of white as being a summer favor >> absolutely. white is -- people immediately associate summer with white. i think crisp whites are nice through the fall, especially as you're looking at harves vegetables and things like that. this is coroleo from machala winery what i like is they're not quite as green pep ery grassy as the new zealand ones very citrusy >> how much does this cost >> give or take 14 bucks, something like that. it's a really nice wine for the price. >> another one i always think of as being summer is rose. should you pack this away at this point i'm guessing no. >> what used to be -- really

used to be like labor day, you know, you put away -- and that's changed. rose is becoming a year-round drink. the growth of rose is crazy. it's like 36% over the last year, same over the year before. people are nuts about it i think for fall it's fun for a darker style of rose this is five roses it's from the southern part of italy. a little bit richer. a little -- it's not that pink it's got a little more color. >> do they do it by keeping -- these are red wines they don't keep in with the - >> right, they take them off the skins really quickly but these are pretty darkly colored reds so they give a fair amount of intensity of color quickly to the wine and it's just a little bit of different styles >> it almost tastes like a cider vinegar type of -- >> it's without the vinegar part it has a little appley note to it this wine was originally created -- first rose from italy. it was created for the u.s. troops in 1940, like, end of the war, 1945.

>> nice historic piece what about the pinot >> pinot noir is like the ultimate fall, you know, it just tastes like the autumn it's really hard to find good pinot that's not expensive this pinot project wine which is produced by a wine importer called michael skirnik company they source pinot for this from california and i think for $12.99, 13 bucks, it's a really good bottle of wine. >> that's very smooth. i don't like deeper reds, bu that's smooth. >> it's very subtle, beautiful fruit. it will be great with a mushroom risotto in the fall. then you got to have a splurge you got to spend some money occasionally on something really great. napa valley cabernet honestly has gotten crazy expensive over the past few years but this wine from round pond is about $37 which for napa is actually affordable these days and it's a really beautiful bottle of cabernet >> it's a beautiful body but not overwhelming

like i said, i'm not usually a fan of reds. >> it's got that napa richness napa land prices are so high that the wines have gotten really expensive but this is a nice bottle of wine, like top level napa cab for a good price. >> i haven't had anything to drink for -- >> you're starting with four at once >> ray, thank you as always, it's a pleasure to see you folks, that's the show for today. i'm becky quick. thank you so much for joining us next week, need time off to welcome a new family member? we're not talking about baby but maybe a puppy or a kitten. more companies are actually allowing pet "ternity" leave believe it or not. we're going to talk about all about that each week we're here "on the money," have a great one and we'll see you next week.

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