they're going to say, that dad is so mean, he don't ever let his kids go to the park. sometimes they were tough on us. but i look back and remember what a great time i had. >> a formula of success for the williams family. venus williams has more to say about her love of the game face to face with me and she reveals what's really going on when she competes against her sister serena in singles championships. more face to face, 2:00 eastern time. join us for that. "your money" starts right now. america has hit the debt ceiling. now what happens? i'm ali velshi. welcome to "your money." tim geithner has begun a series of what he's calling extraordinary measures to prevent default. he wants to make sure that lawmakers know the clock is ticking. they say they're willing to withhold a vote to raise the debt ceiling if they don't get

some serious concessions from democrats. >> we have over $50 trillion in unfunded liabilities. all of them are unsustainable. we need to raise the debt ceiling -- both short term, medium term and long term. that's what it would take to get my vote. >> will cain is a cnn contributor. secretary geithner said not raising the debt ceiling would be catastrophic for the economy. he concedes no one knows for certain in the event that it's not raised. are republicans willing to risk sending this fragile recovery that we're in into chaos to find out if they're right? >> no. but neither are democrats. let me tell you why i'm so certain about this. the debt ceiling has been raised 74 times since 1962. second, the consequences for not raising the debt ceiling are

dire and everyone knows it. i have my prop here. the issue is, if we don't raise the debt ceiling, the government cannot issue new debt. the problem is we take in 60 cents for every dollar we spent. we spend 40% more than we take in. at that point, the government has a choice to make -- not pay the interest on your current debt, which amounts to a default. how would the markets react to that? >> that's bad. >> we think so. currently the u.s. is used as the safe haven. would markets continue -- we don't know. the second choice is even more scary to me. that is if we choose not, we have to cut spending by 40%. that comes from social security, medicare -- >> that's a big, big cut. >> it's a huge number. >> where does your arrow go after that if you do that? >> it goes to depression. i want to cut government spending but i don't want to do it overnight. if you have to cut spending by 40%, you're looking at a 10% contraction in the economy. you're looking at depression.

that's a pretty clear choice. >> that's not exactly what we're hearing from a lot of other conservatives. gloria gorborger is with us. 60% of americans say they oppose raising the debt ceiling, just 37% would be in favor of raising it. that would seem to bolster the republican argument that they want severe cuts in exchange for their vote to raise that credit limit. let's say the debt ceiling is not raised and the u.s. does, as will postulates, possibly default on some of its payments. are the consequences as dire as secretary geithner warns? is the public going to blame republicans who voted no or democrats who wouldn't girlfriend them the cuts? what's going to happen? >> the public will blame everyone. i think first of all the congress, and that means democrats, republicans and also the president of the united states needs to go out there as the secretary of the treasury has and explain what the consequences are.

it's very clear from looking at that poll that people may be saying debt ceiling, we don't want to pay more money -- they're not quite sure. >> you're right about that. >> part of the burden of leadership is explaining these things. but i would also say that this is really a test of leadership because when you look back at votes on the debt ceiling, they're always political votes. go back to 2006. none other than barack obama and his fellow senate democrats, 2004, unanimously, all house democrats voted against it. why? george bush was in power. so this again is another test. and if it doesn't get done and there are real problems in the economy, then the american public will turn very quickly and blame all of the members of congress and the president. >> christia freeman is joining us. no one's been able to explain what happens if we don't make those payments. let's go back to september 14th,

2008. a whole lot of smart people sat around a table and said, it's not going to be all that bad if we let lehman brothers collapse. we didn't know what the consequences were either. you are a global financial journalist. what happens? >> this isn't something we need to debate that much. it is absolutely clear if the u.s. defaults on its debt, that's a catastrophic event for america and for the global economy. that is a moment when people stop having faith in the u.s. government and they should stop having faith in fact u.s. government. the u.s. government wouldn't be paying its credit tors. so new creditors are not going to be knocking on america's door. if they do come in, they will require much, much higher rates of interest. >> for viewers out there, that's how it afghanistan you. if the u.s. pays more to borrow money, you pay more for your mortgages, your companies and employers pay more to borrow money. that tends to give them less available cash to hire people.

>> and you would have to pay higher taxes. right now, the trick -- america actually is in a fabulous position in the global economy because even though america has very high debt, it is being charged very, very low rates of interest by the rest of the world. >> because our credit is thought to be very good. >> but republicans want to get something out of this. and in a way, i don't blame them. they're saying, you want our votes to raise the debt ceiling, mr. president, fine, how about dollar for dollar we talk about spending cuts? mitch mcconnell was talking about some grand bargain on entitlements. i don't think they're going to get that. but i do think you are going to get substantial deficit reduction or promises of deficit reduction. >> will, this is not the last word or the last debate on how to cut spending. so if you are a conservative, if you are a fiscal conservative, if you are a republican and you really believe strongly that there need to be cuts, like many americans do, we have the 2012 budget to discuss. we've got until october to sort that out.

why are some republicans picking this as the fight and not that, which is really the place to have this discussion? >> i've said to it you before. democrats have shown no willingness to cut at any point in time. it's like you have to put them in this emergency to make decisions. in the end, this is barely worth a debate because it is going to be raised. it is that clear to everyone what the problems r. here's the perfect metaphor. in "braveheart," the two battles look at each other like they're about to shed all kinds of blood. and the young soldier says, what's going to happen? h older guy says, the noble wills negotiate and we'll go home. that's going to happen here. >> we've been talking about if america defaults, you would see higher interest rates charged to the u.s. government. that's true. what we don't know but what we can predict with high probability is you could plunge the world into a new financial -- >> it may not happen but there's

some chance that it could happen. >> i have to tell you, there are 80 freshmen republicans, 60 of whom have never held elected office before. and some of them are saying, i'm not sure it's going to be so terrible. these are the people that john boehner has to talk to. for some of these people, it's not negotiating talk. but it is the burden of leadership right now because john boehner runs the house of representatives. >> and boehner and cantor aren't freshmen. gloria, great to talk to you. coming up next, the other most important economic issue facing americans today. is it being ignored as a result of all of this focus on the deficit? and emissions like ecopia tires... even making parts for solar panels that harness the sun's energy... working on social activities like clean up programs on beaches in many locations...

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that unemployment is the most important economic issue today. unemployment tops the list of the most important issues. it's at 38%. 10% more, by the way, than the number of people who say the federal deficit is the most important economic issue. will cain is still with us. i want to bring in bob herbert. let's look at this. we both know the unemployment rate is a bit of a red herring. it's at 9%. is washington koidoing everythi it can to create the right environment to create jobs? the government does set the tone. >> it does set the tone. i don't think the government is doing enough. the big problem right now, especially with all the talk about deficits is you lose sight of the need for investments if you're actually going to create large numbers of jobs. it costs money, but it's not wasted money. it's not money just poured into a ditch.

it's money that ultimately would bring a return. right now, there doesn't seem to be much political sentiment in favor of the kinds of investments we need. >> that word "investment" sometimes triggers people to think spending and they want to know what the return on that investment was and they point to the stimulus and say, did it create as many jobs as it was supposed to? john boehner wants trillions of dollars in spending cuts. he wants as much in cuts as they're prepared to increase the debt limit. he also claims to want to help those who continue to struggle in this economy. listen to his words. >> i think america has a strong safety net for those who live near the bottom of our economy. and i think that we should. i'm a big believer that in a country like ours, those who have the opportunity to succeed and do succeed have a responsibility to help those who can't compete. >> a lot of respect for a guy like john boehner who's a small

businessman. he's sort of self-made. where is that safety net? the republicans voted against extending unemployment benefits unless they got a hold on tax increases. we have these groups called the 99ers who are now unemployable. where the the safety net and where should it be? >> i don't know if the conservatives or the republicans better said have the answer to that. but i don't think the democrats do either. bob's characterization was, i don't know that we're doing enough. i don't know that we're doing the right things. the things that we invest in are welfare largely for the middle class. medicare, social security. these are programs designed to help people be comfortable, not to innovate. if we were to invest and create this social safety met for the poor, truly for the poor, i think we need to start looking beyond things like affordable housing or unemployment benefits and start looking at investing in things like education.

fareed zakaria said for every $4 we spend on the elderly, we spend $1 on kids. >> right. bob, he says education, which i fully agree with. retraining because we have a very large population that are just not trained for the jobs that we need them to be trained for and innovation which would be tax credits. >> this is not an issue on which we disagree because when i talk about investments, i was specifically talking about investments that ultimately would create large numbers of jobs. that would include investments in education. i think we should have a tremendous investment in infrastructure and certainly on innovation. so that's moving in a direction that i'm in favor of. >> we can't do everything. so we have to cut back on some of those comfortable welfare benefits for the middle class. >> some of the problems on the hill right now, i don't think it's possible -- i don't think it's workable. one, tax cuts -- tax hikes are off the table.

that's one thing. and they want cuts that are going to bring down the deficits while at the same time saying that we have to maintain a safety net. so that requires spending. i just don't think that that adds up. you can't do that. >> take a 50-year-old man who was an auto worker in the rust belt, in a place -- some sort of factory worker, in a place where the factory, the town has almost shut down. there aren't jobs in the area. they can't sell their house. maybe the kids are not going to college. we keep telling people there are open jobs in this country. that person has to become either an accountant or a software worker or a medical worker or a truck driver, work in the energy industry. but how does that person, my viewer, get from unemployment and trained from the wrong thing into employment? >> i don't have the answer to that, nor does bob no matter what he says.

>> what about this? what can government do to encourage the ability to get that person retrained and into a job? >> we have to use abstract words like retrain, educate older people. the problem is in the end, i don't know that the government can or should be the person who figures out how that man transitions into an entire economy that's transitions. the whole economy is moving from an economy that has a spectrum of jobs from low wage, low skill to high. we're phasing out of those. >> let me answer your question. i've been going around the country interviewing these 50-somethings. there's nothing that can be done for them right now given the current situation. they're falling out of the labor force. they're not even being counted as unemployed. they're taking early retirement when they can. they're going on disability. those roles are increasing. i don't think you can retrain them for these other jobs you're talking about. >> put them on welfare for 30 years? >> no. i think we should have a massive

infrastructure rebuilding effort in this country. and those people who have been working in manufacturing for years, who have been working in construction, construction got killed in the recession, they have skills that you could put to work in rebuilding a modern infrastructure for the 21st century and the industries that we're going to be approaching going forward. >> let me say this. i'm not opposed to that if the right motive is in mind, if we need infrastructure projects. we don't need to create jobs just to create jobs. >> do you agree that we need infrastructure? >> we could stand to pour more concrete on the highways. >> it's not just roads and businesses. it's the electrical grid, it's the inland waterways. it's the ports on both sides and on the southern coast of the united states. infrastructure is in sorry shape in this country. >> if i take a nonpartisan position to invest in education and infrastructure, i have to hear from your side that you're

willing to cut back on these comfortable welfare programs for the middle class, such as medicare because that's where the deficit is coming from. >> i think in the real world, you are not going to cut back sharply on medicare. i just don't think -- as a political reality? >> yeah. >> that's sad. >> we'll have to figure out a way to solve this problem. thanks very much, will and bob. one big city is becoming a hotbed for technology jobs. you might be surprised. building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible.

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where are the jobs? it's a question we ask frequently on this show. but this answer might surprise you -- detroit. the motor city is seeing a technology transformation of sorts. companies like google and ford are hiring tech workers in droves. it could just be the reinvention that detroit has been waiting for. here's cnn's poppy harlow.

>> people don't realize there's five times the computing power in a car than even in the most sophisticated smartphones. >> reporter: could the motor city be turning into tech city, u.s.? some say it just might be. detroit has seen an 82% increase in tech jobs in the past year at companies like ford. is there a tech job boom here, would you say? >> there is. i've never seen this much hiring in technology since i've been here. my particular group, we're going to triple over the three-year period. >> reporter: josh kitchens locked in a job with this ford tech team. >> i was offered other jobs but i chose to stay here. salary was a big part of that. >> reporter: detroit workers make an average of $71,000. >> very competitive. they want us to stay. they want to rebuild detroit. >> reporter: these michigan state engineering students all had jobs lined up before graduation. >> i chose engineering mostly

for job security. >> reporter: is there also a sense of pride in wanting to sort of tell the world, hey, detroit is still here? >> definitely. come in, start up a company. there are people that need jobs badly. >> reporter: google says this will be its biggest hiring year yet in detroit. >> to come out of college and be put on a career path is amazing. >> reporter: so why has there been such a big boom in tech jobs? some people say in cities like right here in detroit, so many jobs have been lost, the only real place to go was up. >> employers, particularly in auto town, usa, are realizing they need to be more efficient with their operations. technology plays a really big part in that. >> reporter: can we call this a tech boom in detroit? >> i think i'd call it a boomlet. markets like new york city and silicon valley are certainly a little bit bigger but they're not growing as fast as detroit is anymore. >> reporter: detroit native and founder of quicken loans, dan gilbert, says his company is making some 1,200 new hires

here, many in tech. >> keep our talent here. we are in a brain economy and not so much a muscle economy. >> poppy joins me now. we have spent a lot of time in detroit and sadly we've watched the erosion of jobs there. this is fantastic. but we constantly talk about engineering being your ticket anywhere you are in the country. what a great deal. they earn good money in a place that costs very little to live in. how does this help everybody else who's been laid off? the auto workers and the industries connected to -- >> that's the key. if you're an auto worker and you've been out of work for a few years in detroit and you don't have these tech skills, you're not going to get one of these jobs. but you can go through retraining, you can do it online. but these jobs aren't for everyone. you need the skills. the advice to young people in college right now, look at these engineering degrees. four or five-year degrees in engineering. all those grads we talked to had multiple job offers. >> grads out of college earning

about $50,000. if you're in engineering, you're pushing $80,000 or if you're in software. >> easily. >> but we've seen hints of a tech bubble again with these ipos. we saw linkedin coming out. is there some sense that these tech jobs, these engineering-type tech jobs are here to stay or is it a bubble? >> this boom started in detroit about 18 months ago. they see slow and steady growth for detroit. if you look at the number, we're not back to pre-recession levels for tech jobs. we're about 50% below those but we're still doing really well. the unemployment rate for people in technology is about 4.5%. it's 9% for everyone else. the jobs here, especially in michigan, finally with michigan, you have a manufacturing base, manufacturing is becoming more technical. so you've also got a low cost base in a city like detroit. for companies, it's a dream. >> you have cheap property, you can train people. there are two-year degrees that people can get to work in technology. excellent. always good to know.

poppy, great to see you. we'll be together as we watch detroit rebuild, i hope. we've come to know the phrase "too big to fail." now nearly three years later, it's a movie. we'll take you inside the film which takes you inside the crisis next. ♪ you love money ♪ well, you know i love it too ♪ ♪ i work so hard at my job ♪ and then i bring it home to you ♪ ♪ i love money in my pocket the markets never stop moving. of course, neither do i. solution: td ameritrade mobile. i can enter trades. on the run. even futures and forex. complex options? done. the market shifts... i get an alert. thank you. live streaming audio. advanced charts. look at that. all right here. wherever "here" happens to be.

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three years ago, the world stood on the brink of financial ruin. too big to fail, had beeno's new movie chronicles how it all unfolded from the bank failures to the bailouts. chrystia freeland is back with us. and we're joined by the film's writer and co-producer, peter gould. let's take a look at the movie in this scene. >> it's another bailout with no legislation. the hill is going to go -- the country is going to go crazy. >> the plane that we flew in on this morning is leased from aig. construction downtown, aig. life insurance, 81 million

policies with a face value of $1.9 trillion. billions of dollars in teacher's pensions. it's everywhere. you want too big to fail? here it is. >> peter, as you wrote the script, who's the villains? who are the heroes of that financial crisis? >> well, it's very interesting because i started off with a lot of preconceptions about who the heroes and villains were. but the truth is one of the ironies of the piece is that there are a lot of heroes and a lot of villains and sometimes it was the same people. you have people in power like hank paulson who went from being the ceo and chairman of goldman sachs and was certainly part of the wall street trend of working washington and trying to deregulate. and now here he is in washington as the secretary of treasury trying to deal with the situation that he himself has been part of the creation of. so that's -- a lot of of it was

very surprising. i have to say, one of the villains of the piece, really, is the idea that financial markets are inherently self-regulating and should be just left alone. >> you're absolutely right. >> maybe it's alan greenspan. not actually one of the big players in the movie, but if the villain of that idea, he's the guy -- >> there's so much deregulation. it's been a few years since this has happened. could it happen again? what's really changed to prevent what happened in 2008 from happening today? >> oh, it absolutely could happen again. i think, in fact, one of the really scary legacies of 2008 is that the bailout, although it was necessary, has probably made another bailout not less likely but more likely because before 2008, we really didn't know, would the u.s. government step in with hundreds of billions of dollars to bail out failing financial institutions? right now, if you're in the

markets, you know the answer to that question. >> which means we don't necessarily take less risk or more. peter, we've been following this for a long time. you as a writer, hen you looked at the world of finance and putting together this film, what did you find out that you didn't know before? what's the biggest lesson you took from this. >> the biggest lesson is how surprisingly interconnected the whole system is. and i think even -- another thing that surprised me was even the people at the top, the people you would think would really understand in depth how the system worked, how it was connected, even they didn't truly understand how things were going together. i think when you watch the film, you see that they're constantly surprised by the fact that aig is hooked into everything or that all the implications of lehman going down -- so those were the things that really surprised me. and the other things that surprised me is basically how

human these guys are. when you think about the market, you think of this giant faceless ocean that's incomprehensible and is ruled by the invisible hand. when you start looking at it, there's a lot of individuals and there's a lot of psychology that's involved. >> chrystia, earlier in the show we discussed how treasury secretary tim geithner's warned that a failure to resolve this debt ceiling debate that we're in right now could launch us back into a financial crisis. he's intimated that it might even be more serious. are we at a dangerous point where the lessons from "too big to fail" are already fading in the distance? >> yes, i think that's an excellent point and really, really true. i think part of the problem is for the people making the rules, for the people on top of the economy and government, actually 2008 turned out to be not such a bad thing. bonuses are back on wall street. you look at people in washington. they're making a lot of money,

too. hollywood is coming back as well. and so -- >> stock market's come back in a big way. >> stock market's come back. we're having a boom now in silicon valley. that sense that, well, maybe it wasn't that catastrophic. and i think really the debt ceiling debate is important because in a way, how you can see what happened in 2008 was this was a failure of commercial financial institutions. and the way that the system was bailed out was the government took on that debt. well, a consequence is a lot of governments around the world, the u.s. government, the irish government, the portuguese government, the spanish government, they now have a lot of debt? so we sort of push the problem down the road. and that could be where we see the next big crisis. >> so we're not out of the woods yet. peter, great movie. it premieres monday night on hbo. peter gould is the writer and co-producer of "too big to fail."

chrystia, thanks for being with us. if you've ever had a mortgage, you know how complicated it can get. soon enough, that mortgage on your house is about to be a simple two-page document. we all have one. that perfect spot. a special place we go to smooth out the ripples of the day. it might be off a dock or on a boat. upstream or in the middle of nowhere. wherever it may be, casting a line in the clear, fresh waters of michigan lets us leave anything weighing us down back on shore. our perfect spot is calling.

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more of a reason to go by buy a house right now if you're looking for one and can afford it, mortgage delinquency rates are falling. the mortgage bankers association says this is an indication that the housing crisis may be becoming to the beginning of the end. if you combine that with the news that mortgage rates continue to be below 5% for a 30-year fixed mortgage, you might think it's a good time to buy a house because prices are historically low. owning a home has always been a part of the american dream, for better or for worse. but in recent years, that dream has turned for some people into a nightmare. not only for millions of homeowners stuck with toxic mortgages but also for the country. out of the crisis, the financial bureau unveiled something called "know before you owe." these are prototypes of new

possible mortgage documents. elizabeth warren is one of the architects of those documents. she has been chosen to get this consumer watchdog group off the ground. elizabeth, the card act, reformed to some degree the credit card industry by mandating some degree of simplicity on statements, including an easy-to-understand disclosure of how much people are going to owe if they just make the minimum payment, how much they'll owe if they make more than that. do you see that as a precursor to this "know before you quo"? >> absolutely. i see the card act as the first step, sort of the down payment on a real shift in what we're trying to accomplish. and "know before you owe" is where we're really going to drive it home. we want consumers to be able to tell what the cost of something is -- in this case, what the cost of that mortgage will be. we want them to be able to see the risks up front and we want them to be able to compare two or three mortgages with each

other so they can know if that's the best deal for me. when we can deliver that, then we have consumers who are better informed and making good decisions, and we start to have a competitive market in consumer credit that actually works, works to deliver lower prices and better products, just like it should. >> so you'll get more information out there. you'll have a more informed consumer. however, that was only one ingredient in the mortgage meltdown. greed was the other, both on the industry side and on the consumer side. what do we do to combat that? >> well, i want to say part of it is greed and hype. people were signing all kinds of documents that it wasn't clear what was going on in those documents. and a lot of people thought they headed one way and headed another. the "know before you owe" project is really about the sober look, there's what this thing is going to cost. it says, before you bite something off, check out the

size of the bite and see what you're going to be involved with here. we've put these things up on the website, consumerfinance.gov. we really want americans to take a look at it and kind of test drive it and say, you know, that's the kind of thing that if everybody face that had sober piece of information, you might make a difference in the margin. not everybody, but it might make differences in how people behave. >> one thing i like about you, you completely know what the criticisms are going to be of this. i don't get what the criticism is of giving people greater information. but there have been some people. and the industry, the banking industry, has said that these types of revisions and simpli simplifications could limit innovation and variety in lending. what do they mean by that? >> you know, i have to say on this one, the notion that telling people the price clearly

means you might not want to offer the product or, more to the point, somebody might not buy it. that just seems to me to be the wrong way to go on this. i really want to say, i'm very pleased about how the industry generally has responded. sure, there are some people who are going to have their remarks about this. but we did this whole project because it started with conversations with community bankers and credit unions. we talked to them about where the paperwork was too burdensome, where there was too much regulatory apparatus and where they weren't able to serve their customers. they identified this project and we're the ones who picked it up, we ran with it. we've talked with them. and right now, what they are telling us, what those folks who are on the ground trying to serve their customers are saying, hey, this looks good for us. it cuts costs for us, it reduces the burden on us. it makes it a little cheaper to put a mortgage forward. that keeps more of us in the

market. and we're behind this, behind it big-time. and i just couldn't be more pleased. something that's good for consumers and good for banks. >> a number of those prototype forms, a couple of of them show exactly what you should be paying for parts of a mortgage, what's optional, what shouldn't be there. i would have loved it for the last several mortgages i've gone through. let me ask you about the consumer financial protection bureau. how much authority does it have? >> well, it has, in my view, enough authority to get the main job done. that is, to be able to work on things like this, to make prices clear and to make it easy to compare products. but it works under real constrictions. when congress built this thing a year ago, they put a lot of constraints on this agency, constraints that are not there on other banking regulators. two big ones, we have a constraint on our budget. our budget is capped.

but importantly, it is capped out of the political process. there are politicians who want to put it in the political process so that the lobbyists will have a real influence over the activities that we take. the other thing that we have that i think there's nothing like it anywhere in government is that the other banking regulators can take a look at our rules and say, well, yeah, it may help consumers. but we think it might not work out for financial institutions or be hard on the economy. and therefore we're going to veto your rules. nobody else does that. i have to tell you, i don't think we'll do anything like that. but you kind of look over your shoulder when you know that your rules could be vetoed. so there are real constraints in place on this agency and of course the ultimate one -- if congress doesn't like what we do, they pass a law and say, not that. they can do that any time. we have real constraints but here's the good news -- come july 21st, we're going to take

over from -- we're going to take over the authority from 19 different federal statutes that are out there right now in consumer protection. right now, they're administered by seven different agencies, none of whom has consumer protection as its central mission. we're going to take that over on july 21st, start to work with these statutes. and once we get a director in place, we're going to be in a position to start rocking and rolling on behalf of the american consumers. >> you have been working on this. this is your passion. you are incremental in your approach. even if you don't have all the authority you need right now, i suspect you will win it over time. elizabeth warren, always a mresh tore speak to you. wish you the best of luck in your endeavors. thank you. for my views on political involvement in the consumer financial protection bureau, refer to my "xyz" from last show. you can invest in the

companies who put shows on television for you to watch. when we come back, i'm going to talk to you about how to invest in media stocks. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ ♪ membership rewards points from american express. they're a social currency with endless possibilities.

talk about a quick return. investors in the linkedin ipo saw the worth of their shares more than double on thursday. the stock priced at $45. it opened at ipo saw their stocks double. it quickly topped $100 a share. if you sold it high, you did well. a few of you out there were able to get in on the stock at the beginning. that opportunity is generally limited to big investment funds and their top clients. it was also a big week for hollywood. broadcast networks unveiled their new prime time lineups this week in what's known in the tv world as up front week. new schedules are announced, new programs showcased. advertisers start placing their business. we all love our favorite tv shows, but is this a good opportunity for you to invest in the companies that actually show the shows? here is matt mccall, the president of penn financial

group and the author of "the next great bull market." let's start by talking about the ipos. the linkedin. these tech ipos that drive the market. >> i got scared watching the market because i was getting these flashbacks of 1998 and '99 before the bubble burst. linkedin is first in the market. next it will be groupon, facebook, twitter. all going public at evaluations that are enormous. ratios of 600. >> should you invest in the media sector in general? we talk about networks and linkedin. is media a good place to be? >> it is because everybody still is in media. there's a couple of risks, if the u.s. economy slows down, they're based on advertising. people are not spending as much money on --

>> banks and autos and things like that. we've seen a big comeback. >> a huge comeback. the stocks have outperformed the market, a great run. if the economy starts to slow down, what happens then? >> give me a network. who do you like? >> i have to say cbs. i hate to say that. the stock is amazing. the chart is amazing. you look at what it's done, even more importantly charlie sheen. she's gone, but ashton kutcher is coming back. >> this doesn't scare you, 82% in a year? >> no, because if you look at the valuation, if i take all of them, it's the most attractive company out there. >> let's talk about a nonnetwork play, what else do you like? >> netflix. that's the future. everybody wants to invest in the future. the future is i'm watching my television show, my movies, wherever i want to watch them. talk about being scared, look at the chart of netflix.

>> 771% in five years, although most of it has been in the last year. >> i look at this and think to myself, where the heck was i-4 years ago? >> you know where you were? you were a subscriber. >> i was spending $15 a month to get the movies. i think that's the future. >> when you started, you said netflix is one of something that could become many. linkedin. that's what netflix was. things changed in the last few years, but ultimately it was just a service that mailed you dvds. >> inkedin, what did they really do? i'm on it and it doesn't give me anything at the end of the day. netflix, i can go home and watch any television show i want on demand. it's the future. it's where we're going. something that's not going to same. worst case scenario, this company gets bought out by somebody else. a big media firm comes in and says, we want your media technology. >> you always give us some option for a slightly more

risk-aversed trader. tell me what you like in media. >> power shares media etf, a basket of 30 stocks. from cbs, time warner, news corp, they're all out there. again, look at the chart, up 21%, beating the market over the last 12 months. this is a great way to just say, you know what? i want to invest in media without picking one stock. >> which for many of our viewers is probably a better way to go because they may not have time to be stock pickers. >> for the individual investor, it's so difficult to pick one stock. >> the ticker on that, etf happens to be pbs, not to be confuse washington, d.c. the media company. matt mccall, the president of penn financial group. to go to college or not to go to college? when jobs for grads are hard to come by, is college worth the expense? i'll tell you next in my xyz. [ male announcer ] redesigned power e-trade pro.

it's like hardwiring the market right into my desktop. launch my watchlist -- a popping stock catches my eye. pull up the price chart. see what the analysts say. as i jump back, streaming video news confirms what i thought. pull the trigger -- done. i can even do most of this on my smartphone. really, it's incredible. like nothing i've ever experienced. unleash your investing and trade free for 60 days with e-trade.

time now for the xyz of it.

what is the value of a college education these days? according to the college board, average tuition at a private university has jumped to nearly $30,000 a year. that's triple what it was just a generation ago. state-run schools and two-year junior college tuitions are also way up because states are trying to trim their budgets. it's not surprising that american families are weighing the financial costs of a college degree. now, according to job placement firm a deco, 60% of those coming into the market since the great recession hasn't been able to find work in their chosen profession. 18% have forced to take jobs outside of their college major, many going into jobs in which their degrees aren't required. you add to that the incredible stress of years of paying back student loans, the return on investment starts to look questionable. despite all the rising costs and the job placement hardships, you'd be wrong to forego a

college education. you need to look at the long-term picture. according to census data analyzed by pew research, over the course of the typical 40-year working life, a college grad is estimated to earn more than a half million dollars more than a worker with just a high school diploma, even after you factor in the cost of going to college. a simple comparison of last month's employment numbers will illustrate what i'm talking about. an overall unemployment rate of 9%. college grads, the rate was half of that, 4.4%. two more numbers. half of all those with a bachelors degree made more than $1,000 a week, while half of those with a high school diploma made just $626. even with rising tuition costs and higher student loan interest rates, it still pays to go to college. that's my xyz. earlier during our conversation with elizabeth warren i mentioned my xyz from last week with my