astronauts have successfully completed the second of four planned spacewalks. astronauts andrew feustel and mike finkel spent's hours performing work. it was the sixth longest spacewalk ever that lasted a little longer than intended because of trouble containing loose bolts. i'll be back in one hour. right now time for "your money." >> america has hit the debt ceiling. now what happens? i'm ali velshi. welcome to "your money." tim guyser has begun a series of what he's calling extraordinary measures to prevent default. he wants to make sure lawmakers know the clock is ticking. yet some republicans argue that there are other means to fund the government after geithner's drop-dead august 2nd deadline. 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 tlts in unfunded liabilities, medicare, medicaid, all unsustainable. i think we need to do something in connection with the decision to raise the debt ceiling. it deals with the debt. both medium and short-term, medium term and long-term. that what it would take to get my vote. >> a cnn contributor, secretary geithner said not raising the debt ceiling would be catastrophic for the economy. now, he concedes no one knows for certain what could happen 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 certain. a, the debt ceiling has been raised 74 times since 1962. second the consequences for not raising the debt creeling are dire and everyone knows it i have my tim russert prop. if we don't raise the debt

ceiling the government cannot issue new debt. we take in 60 cents for every dollar we spend. we spend 40% more than we take in. you can choose to not pay the interest on your current debt, which amounts to effectively a defau default. how would the markets react to that. >> that's bad. >> we think so. >> okay. >> currently the u.s. used as a safehaven. would markets continue to think of us that way? we don't know. the second choice is more scary to me, that is we have to cut spend big 40% and that comes from social security, medicare. >> that's a big cut. >> it's a huge number. >> where does your arrow go if you do that. >> 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, looking at depression. that's a pretty clear choice. raise the debt ceiling. >> that's not what we're hearing from a whole lot of other conservatives. you lay the argument out very well.

gloria is a cnn senior political analyst. 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 extreme 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? will the republicans blame republicans or democrats who wouldn't give 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 as the secretary of the treasury has and explain what the consequences are. it's clear from looking at that poll, that people may be saying, debt ceiling, we don't want to pay more money not sure -- >> you're right about that.

>> part of the burden of leadership is explain iing is explaining these things. when you look back at votes on the debt ceiling they're always political votes. go back to 2006 none other than president obama and his fellow democrats. >> voted not to do it. >> 2004, unanimously all house democrats voted against it, george bush was in power. if it doesn't get done and problems in the economy the american public will turn very quickly and blame all of the members of congress and the president. >> christa freeland the editor of thompson reuters digital. what gloria says is right, no one has been able to explain beyond tim geithner saying it's going to be catastrophic what happens if we don't make those payments. go back to september 14th, 2008, smart people sat around the table and said it's not going to be that bad if we let lehman

brothers collapse. we didn't know what the consequences are either. you are a global financial journalist. what happened? >> i think actually, this isn't something we need to debate that much. it is absolutely clear that if the u.s. defaults on its debt, that is 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 the u.s. government. the u.s. government could not be paying its creditors and so new creditors are not going to be knocking on america's door. if they come in they will require much, much higher rates of interest. >> by the way, for viewers out there, that's how it affects 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. what that tends to do is give them less available cash to hire people. >> you would have to pay hire taxes. right now, the trick is, 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 good. >> but, you know, republicans want to get something out of this. in a way i don't blame them. 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 think you are going to get substantial deficit reduction or promises. >> will cane, this is not the last word or the last debate on how to cut spending. if you are a conservative, if you are a fiscal conservative, you are a republican and you 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 said this before, democrats have shown no willingness to cut at any point in time. like you have to put them and the country for that matter in these positions of emergency to make decisions. i want to agree with something krista said, this is barely worth a debate, it is going to be raised. here's the metaphor in "braveheart" before william wallace comes along, the two armies get together like they're going to shed blood, and the older one says what's going to happen, the noeblts will negotiate and we'll go home. that's what's go to happen here. >> i don't want to pay nightmare scenarios, ali made a reference to lehman brothers. that's correct. if america defaults you would see higher interest rates charged to the u.s. government. what we don't know but i think we can really predict with high probability is, you could plunge the world into a new financial crisis. >> it may not happen but there's some chance it could happen. >> i have to tell you, there are -- there are, you know, 80

freshmen republicans, 60 of whom who have never held elective office before, and you know, a lot of those folks are saying, you know what, i'm not so sure it's going to be so terrible. there are a lot of chicken littles running around and these are the people that -- >> john boehner -- >> that's negotiating talk. >> 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. >> john boehner and eric cantor are not freshmen. hopefully they will be able to convince their team. great to talk to you as always. kris ya, will, stick around. the other most important economic issue facing americans today, is it being ignored as a result of this focus on the deficit. but it's time for your medicine, okay? you ready? one, two, three. [ both ] ♪ emma, emma bo-bemma ♪ banana-fana-fo-femma ♪ fee-fi-fo-femma ♪ em-ma very good sweety, how do you feel?

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your finances can't manage themselves. but that doesn't mean they won't try. bring all your finances together with the help of the one person who can. a certified financial planner professional. cfp. let's make a plan. i'm out of work, i need a job. it doesn't get a lot more complicated than that when you ask americans why they believe that unemployment is the most important economic issue today. unemployment tops the list of the most important issues. it's a 38%.

10% more by the way than the number of people who say the federal deficit is the most important economic issue. will cane is with us, i want to bring in normer columnist bob herbert. let's look at this. you and i know the unemployment rate, bit of a red herring, doesn't tell the full picture, but it's at 9%. is washington doing everything it can to create the right environment for companies to create jobs? i think we all agree that other than in the recession, government doesn't have a particular role in creating jobs but it does set the tone. >> it does set the tone. to answer your question i don't think the government is doing enough. the big problem right now, especially with all the talk about deficits, is that you lose sight of the need for investments if you're going to create large numbers of jobs. it costs money but it's not wasted money, 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 investments sometimes triggers people to think spending and they want to know what the return on that investment was and point to the stimulus and did it create as many jobs as it was supposed to. the speaker of the house wants trillions of dollars in spending cuts because he wants as much in cuts as they're prepared to increase the debt limit and we're talking $2 trillion there. but 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. i think that we should. i'm a big believer 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, small business man, 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 out of work more than two years and are now unemployable almost and not matched to jobs available. where from a conservative perspective is the safety net and where should it be? >> i don't know if the conserve differents or the republicans better said have the answer to that. i don't think the democrats do either. bob's characterization i don't know that we're doing enough. here's how i would change that. i don't know that we're doing the right thing. the things we invest in, are welfare largely for the middle class. medicare, social security, these are programs designed to make people comfortable, not innovate. if we were to invest which i wouldn't oppose, create this safety net for the poor, i think we need to start looking beyond things like affordable housing or unemployment benefits and looking at investing in things like education. fa reed had a great stat, for every $4 we spend on the elderly we spend $1 on kids. >> let's talk about this, i'm

going to address this, education which i agree with, retraining, because we have a very large population that are just not trained for the jobs we need them to be trained for, and innovation which would be tax credits really. >> this is not an issue on which we disagree. 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 in -- on innovation. so that's moving in the direction that i'm in favor of. >> we can't do everything, so we have to cut back on the comfortable welfare programs for the middle class. >> here's the problem as i see it with the republican proposals that are -- that we hear 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 safety

nets. that requires spending. i just don't think that adds up. >> i'll put this to both of you. take a 50-year-old man who was an autoworker in the rust belt. in a place, some factory worker where the factory, town has almost shut down because the factory shut down. 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. that person has to become an account the or software worker or a medical worker or truck driver working the energy industry, all these industries have jobs, how does that person, my viewer, get from unemployment and being trained for the wrong thing into employment? will? >> there is no way ali i possibly have the answer to that nor does bob even if he tries to pretend. >> come on. >> i'll give you a question you might have an tone ann to. >> what can government -- answer to. what can government do to encourage the ability to get that person retrained?

>> we have to use ab instrustras like retrain. educate older people. i don't know that the government can or should be the person to figure out how that man which you described very well transitions a whole economy moving from an economy that has a spectrum of jobs from low wage, low skill to high. we're phasing out. >> let me answer your question because 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 being counted as unemployed. taking early retirement when they can. going on disability. those roles are increasing. and i don't think you can retrain them for these other jobs that you're talking about. >> put them on welfare 30 years? >> what i think we should do, we should have a massive infrastructure rebuilding effort in this country. >> a work project administration? >> 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. >> i'm not opposed to that if the right motive is in mind. if we need infrastructure projects. >> we do know we need better jobs. >> don't create jobs to create jobs. >> do you agree being a guy who travels around the country we need infrastructure. >> we could pour more concrete on the highways. >> better electrical grid. >> the electrical grid, the inland waterways, it's the ports on both sides and on the southern coast of the united states. i mean infrastructure is in sorry shape in this country. >> take a nonpartisan position to invest in education and infrastructure and by the way i'm willing to look at increasing in tax revenues i have to hear that you're willing to cut back on the comfortable welfare programs for the middle class, such as medicare. by the way, that's where the deficit is coming from.

>> let me -- i think in the real world you are not going to cut back sharply on medicare. >> as a political reality. >> that's sad. >> we'll have to continue this and figure out a way. tells you how complicated it is. these are smart guys that know about this stuff. will, thanks very much. bob always good to see you. one big city is becoming a hot bed for technology jobs. you might be surprised by this one. i'm going to show it to you after this break. i love it too ♪ ♪ 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

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personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. where are the jobts? a question we ask on this show. this answer might surprise you. detroit, the motor city seeing a technology transtoremation of sorts. like google and ford hiring tech workers in droves. could it be the reinvention that detroit has been waiting for. here's cnn money's poppy harlow. >> what we do here is simulate the vehicle. people don't realize there's five times the computing power in a car than there is in even the most sophisticated

smartphone. >> reporter: could the motor city be turning into tech town usa. >> we've hired people from silicon valley, microsoft and a number of other countries. >> reporter: some say it 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 positions but chose to stay here. salary was a big part. >> reporter: tech workers make an average of $71,000 a year. less than silicon valley but a great living here. >> it's very competitive and they want us to stay and rebuild detroit. >> reporter: these michigan state engineering students had jobs lined up before graduation. i cheese engineering mostly for job security. >> is there a sense of pride in wanting to tell the world, hey, detroit is still here?

>> definitely. come in, start at the company and people that need jobs badly. >> reporter: google says this will be its biggest hiring year yet in detroit. >> come out of college and put on a career path is amazing. >> 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 do more efficient with their operations. technology plays a big part. >> can we call this a tech boom industry? >> i think i would call it a boom let. >> a boomlet. >> a boomlet. markets like new york city and silicon valley are bigger but they're not growing as fast as detroit is. whether those deals close or not doesn't matter. >> reporter: detroit native and founder of quicken loans, dan gilbert, says his company is making 1200 new hires here. many in tech. >> going to keep our talent here. we're in brain economy, not so

much a muscle economy. >> poppy joins me now. you and i have spent a lot of time in detroit and watched the erosion of jobs there. this is fantastic. 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 little to live in. how does this help everybody else who's been laid off, those auto workers and industries were connected to auto working. >> that's the key. if you're an autoworker and you've been out of work for a few years in detroit and don't have the tech skills you're not going to get one of these jobs. you can go through retraining do it on-line, cheaper on-line. these jobs aren't for everyone. you need the skills. i think the advice to young people and college right now, look at those engineering degrees. four, five-year degrees in engineering, all those grads we talked to had multiple job offers. if you don't have the skills you're not going to get these jobs. >> grads out of college on average earning about $50,000 in engineering pushing $80,000 or software, things like that.

but we've seen hints of a tech bubble again with these ipos, linkedin coming out. is there sense these engineering type tech jobs are here to stay or are we in a bubble? >> in detroit this boom started about 18 months ago and what the experts say they see slow and steady growth for detroit. look at the numbers, we're not back to prerecession levels for tech jobs. about 15% below those but still doing really well. the unemployment rate for people in technology is 4.5%. it's 9% for everyone else. the jobs in michigan, i think with michigan, you have a manufacturing base, manufacturing is becoming more technical, so you also got a low cost base in a city like detroit. for companies -- >> you have cheap property. >> it's cheap. >> train people and these two-year degrees people can get into to work in technology. excellent. always good to know. people in detroit to get jobs to pay taxes that's going to help the place. we'll be together as we watch detroit rebuild i hope. we've come to know the

phrase too big to fail made famous during the financial crisis. three years later it's a movie. we'll take you inside the film which takes you inside the crisis, next.

three years ago the world stood on the brink of financial ruin. too big to fail, hbo's movie which premiers monday chronicles how it unfolded from the bank failures to the bailouts. we're joined by the film's writer and coproducer peter gold. let's look at the movie in this scene, former treasury secretary hank paulson played by william hurt, is desperately trying to save the insurance giant aig. >> it's another bailout. with no legislation. the hill is going to -- the country will go crazy. >> the plane we flew in on this morning leased from aig, construction downtown, aig, life insurance, 81 million policies with a face value of $1.9 trillion. billions of dollars in teachers pensions, it's everywhere, you

want too big to fail here it is. >> peter, as where you wrote the script, who were the villains and heros of that crisis? >> it's very interesting. because i started off with a lot of preconceptions about who the heros and villains were. but the truth is, one of the ironies of the piece is that there are a lot of heros 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 secretary of treasury trying to deal with the situation that he himself has been part of the creation of. so that's -- a lot was very surprising. one of the villains of the piece is the idea that financial markets are inherently

self-regulating and should be left alone. >> you're absolutely right. >> maybe it's alan greenspan. you know, not actually one of the big players in the movie, but if the villain is that idea he's the guy. >> somebody who pushed 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 bailouts, 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 market you know the answer to that question. >> which means we don't necessarily take less risk but more. christian and i are business

journalists. you as a writer when 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 sort of the biggest lesson you took from this? >> so many things. you talk about the biggest lesson, the biggest lesson is how surprisingly interconnected the whole system is. i think even another thing that surprised me was even the people at the top, the people you would think would really understand in debt how the system worked, how it was connected, even they didn't truly understand the -- how things were going together. i think when you watch the film, you see that they're constantly surprised by, you know, the fact that aig is hooked into everything or that all the implications of lehman going down, so it's -- those were the things that really surprised me. one of the -- the other things that surprised me basically how human these guys are and, you know, when you think about the market, you think of this giant

faceless ocean that's -- you know, that's incomprehensible and ruled by the invisible hand and when you start looking at it, there's a lot of individuals and there's a lot of psychology that's involved. >> let me ask you, earlier in the show we discussed how secretary -- treasury secretary tim geithner warned a failure to resolve the debt ceiling debate that we're in right now could launch us back into a financial crisis. some points he's intimated it might be more serious. are we at a dangerous point where the lessons from two, too, big to fail are already fading into the distance? >> yes. i think that's an excellent point, ali, and 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. >> right. >> 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 . >> stock market has come back have in a big way.

we're having a boom in silicon valley. that sense that maybe it wasn't that catastrophic, and i think really, the debt ceiling debate is important because in a way, you know, how you could see what happened in 2008, was this was a failure of commercial financial institutions. >> right. >> 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, irish government, the portuguese government, the spanish government, they now have a lot of debt. we pushed the problem down the road. and that could be where we see the next big crisis. >> we're not out of the woods yet. peter great movie, premiers monday on hbo, it's worth writing. writer and coproducer of "too big to fail", christa freeland, thanks for being with you. if you've had a mortgage you know how complicated it can get. soon enough that on your house is about to be a simple two-page

document. i'm going to explain it to you next. your finances can't manage themselves. but that doesn't mean they won't try. bring all your finances together with the help of the one person who can. a certified financial planner professional. cfp. let's make a plan.

more of a reason to buy a house if you're looking for one and can afford it. a report shows that mortgage

delinquency rates are falling. the mortgage bankers association says this is an indication the housing crisis may be coming 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 been part of the american dream for better or 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 for the country. out of the crisis the consumer financial protection bureau was born and this week, the bureau unveiled something called know before you owe. take a look. these are two prototypes of a simple two-page form to replace the existing length bey and mostly confusing disclosure documents involved in getting a mortgage. elizabeth warren is one of the architects of those documents amongst many other things, and 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 will owe if they just make the minimum payment, how much they will owe if they make more than that. do you look at that and see it as a precursor to the know before you owe. will it be successful in helping people out? >> 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 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. >> 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? >> you know, i want to say part of it was 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, you know, before you bite something off, check out the size of bite. >> right. >> and see what you're going to be involved with here. we've put these things up on the

website at our website, consumer [ inaudible ].gov. we 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 faced that sober piece of information, you might make a difference with the margin. where you might make differences in how people behave. >> you've heard me understand a lot of these things and one thing i like about you, you 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 in the industry, the banking industry, who have said these types of revisions and simplificatio simplifications, could limit innovation and variety in lending. what do they mean by that? >> you know, i have to say on this, 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 seems to be the wrong way to go on this. i want to say, i'm very pleased about how the industry generally has responded. sure, there are some people who will 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 burden somg, where there was too much regulatory ap pa rat tus and where they weren't able to serve their customers. they identified this project and we're the ones that picked it up, ran with it, talked with them, and right now what they are telling us, those folks 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 good for consumers and

good for banks. >> a number of those prototype forms show is what you should be paying for the various parts of a mortgage, what's optional, what shouldn't be there. i would have love 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 clearer and to make it easy to compare products. but it works under real contrickions. one congress built this 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 real constraint on our budget, other banking regulators set their own budgets. ours is capped. importantly it is kept out of the political process. there are politicians now 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 we have that i think there's nothing like it anywhere in government, the other banking regulators can take a look at our rules and say 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 it. i have to tell you, i don't think we'll do anything like that but boy, you kind of look over your shoulder when you know your rules could be vetoed. 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 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 those 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 pleasure to speak to you, wish you the best of luck in your endeavors. thank you. >> thank you. >> for my views on political involvement in the consumer protection bureau refer back to my xyz from last week's show. speaking of shows, you love your tv and hopefully "your money" is one of your favorite shows. invest in the companies who put shows on television for you to watch. when we come back i'm going to talk about how to invest in media stocks. stay with us.

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while i took refuge from the pollen that made me sneeze. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. so lily and i are back on the road again. with zyrtec® i can love the air®. so lily and i are back on the road again. naomi pryce: i am. i'm in the name your own price division. i find empty hotel rooms and help people save - >> - up to 60% off. i am familiar. your name? > naomi pryce. >> what other "negotiating" skills do you have? > i'm a fifth-degree black belt. >> as am i. > i'm fluent in 37 languages. >> (indistinct clicking) > and i'm a master of disguise >> as am i. > as am i. >> as am i. > as am i. >> well played naomi pryce.

tv and hopefully "your money" is

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 $83 and quickly topped and quickly topped $100 a share. if you sold it high you did very well. only problem is 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. also a big week for hollywood. broadcast networks unveiled their new primetime lineups and what's known in the tv world and up front week. no schedules announced, programs showcased. advertisers start placing their bids. we all love our favorite tv shows. is this a good opportunity for you to invest in the companies that actually show those shows? matt mckauly, author of "the next great bull market." let's start by talking about

these ipos. linkedin. sort of makes me go back to the late '90s, early 2000s. >> i was getting these flash backs of 1998, 1999 before the bubble burst. linkedin, they're first to the market. what's next? it's going to be groupon. it's going to be facebook, twitter. they're all going public at valuations that are enormous. trading at p ratios of 600. it's mind blowing. >> should you invest in the media sector in general? we talked about networks. we talk about linkedin. is media a good place to be? >> it is. everybody is still in media if you think about it. there's a couple risks. if the u.s. economy slows down, they're based on advertising. people are not spending at much money on -- whether it be linked -- >> it's mostly banks, autos. we've seen a comeback in advertising spendings.

>> a huge comeback. stocks have outperformed the market over the last few years, had a great run. if the economy slows down, what then? >> what do you like? >> cbs. i hate to say that. the stock is amazing. the chart's amazing. look what it's done. more importantly, charlie sheen. charlie sheen is gone but ashton kutcher is coming. >> this country scare you? 82% in a year? >> you look at the valuation. if i take every cable network, television company it is actually the most attractive right now. taking names away, most attractive company out there. >> nonnetwork, what else do you like in media? >> netflix. the future right now, i'm watching my television shows. i'm watching my movies wherever i want to watch them. you talk about being scared. look at the chart of netflix. >> that's 771% in five years. although most of it's been in the last year. >> i looked at this. i think to myself, where the

heck was i four years ago? >> yeah. you were a subscriber. >> i was. spending $15 a month to get the movie. i look at this now. i think that is the future. >> you said when you started you said netflix is one of something that could become many. that was linkedin. that's what netflix was. things changed for netflix in the last few years. ultimately it was just the service that nailed you dvds. >> think about it. linkedin, what does it really do? netflix, i can go home right now when i leave this show and watch any television show i want on demand. it is the future. it's where we're going. and i think it's something that's not going to change. worst case scenario, this company gets bought out by somebody else. a big media firm comes in, we want your technology, we're taking it. >> you always give us an option for a slightly more risk averse venture. >> power shares media etf. a basket of 30 stocks.

>> yep. >> you think from cbs to time warner, news corp., through them all out there. they're in that basket. take the company specific risk. look at the chart up 21%. beating the market over the last 12 months. this is a great way to say, you know what? i want to invest in media without picking one. >> which for many of our viewers is probably a better way to go. >> for the individual investor, it's so difficult to pick one stock. >> etf happens to be pbs. not to be confused with the media company. great to see you as always. matt mccall. to go to college or not to go to college? when jobs for grabs are hard to come by is college worth the expense? i'll tell you next in my x, y, z. [ male announcer ] for fastidious librarian emily skinner,

each day was fueled by thorough preparation for events to come. well somewhere along the way, emily went right on living. but you see, with the help of her raymond james financial advisor, she had planned for every eventuality. which meant she continued to have the means to live on... even at the ripe old age of 187. life well planned. see what a raymond james advisor can do for you. life well planned. naomi pryce: i am. i'm in the name your own price division. i find empty hotel rooms and help people save - >> - up to 60% off. i am familiar. your name? > naomi pryce. >> what other "negotiating" skills do you have? > i'm a fifth-degree black belt. >> as am i. > i'm fluent in 37 languages. >> (indistinct clicking) > and i'm a master of disguise >> as am i. > as am i. >> as am i. > as am i. >> well played naomi pryce.

time for the x, y, z of it. what's the value of a college education these days? according to the college board avrmg 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. so it's not surprising that american families are weighing the financial costs of a college degree. now, according to jobplacement firm adeco, 60% of recent graduates coming into the job market since the great recession have not been able to find full-time work in their chosen profession. 18% of those recent grads have been forced to take jobs outside of their college major, many of them going into jobs in which their degrees aren't even required. now, you add to that the incredible stress of years of paying back student loans, and the return on investment starts to look questionable. but despite all the rising costs and the job placement hardships, you'd be wrong to forgo a college education. 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 half a 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. we saw an overall unemployment rate of 9%. college grads? the rate was half of that. 4.4%. two more numbers and then i'll let you go. half of all those with a bachelor's degree made more than $1,000 a week. while half of those with a high school diploma made just $626 a week. so even with rising tuition costs and higher student loan interest rates and everything else, it still pays to go to college. that's my x, y, z. earlier during our conversation with elizabeth warren i mentioned my x, y, z from last week with my not so subtle feelings on the consumer protection financial bureau. i'll be tweeting to that in just