[ roger ] same agent and everything. [ kyle ] it's like we're connected. no we're not. yeah, we are. no...we're not. ♪ the allstate value plan. dollar for dollar, nobody protects you like allstate. stay with cnn all afternoon long. with just nine days to go, many viewers still doing your income taxes in our financial fix we'll look at some simple irs mistakes you don't want to make. raising chickens is no longer a country thing. feathers are flying. city slickers doing it, too. i'll be back in one hour. i'm fredricka whitfield. "your $$$$$" starts right now. getting back to work in america, the latest numbers leave us with a few more questions than answers. i'm ali velshi, welcome to "your $$$$$." 120,000 jobs were added in the united states in march.

that actually represents a slowdown in hiring and leaves us wondering why. are there enough jobs out there to sustain our fragile recovery? christine romans, the host of your bottom line, has been studying the numbers. break it down for you. >> i put it on a chart an graphic to show you the jobs report, ali. you make a good mount. 120,000 jobs created is a big slowdown from the pace we've seen over the last few months. 8.2% unemployment is a drop but not making people happy. you had people dropping out of the labor market, 164,000 people dropped out of the labor market. that's why the jobs number went down, unemployment went down. focus on the overall job creation. i want to show one of the things you've been watching also, the public sector jobs. only about 1,000 government jobs were lost. we lost about 6,000 the month before. a slowdown in that trend. private sector carrying things but the private sector slowing

down, too. >> christine some is something we study carefully, consumer driven economy. retail sales came out last week and they were exceptionally strong, much stronger than economists were expecting. why do we see losses in retail jobs? >> it's so interesting. you saw 38,000 retail jobs lost in the month. that was a little bit of a surprise to people. the only people you saw strength in retail is home and garden centers, surprise surprise, because of the great weather. even though you've seen strength from the consumer lately, this is something overall that might be a little concern. we did see strength quickly in manufacturing,ali, 37,000 jobs created in manufacturing. that's a trend we've seen kind of picking up. i don't know how much it eats into all those jobs lost to manufacturing since the '80s really but that's something that bears watching. finally, i know you love this. this is a political number. in an election year no question, right? you look at the overall trend, the trend of job creation.

here is has big job -- this is the financial crisis right here. 8.8 million jobs lost from the peak of labor market to the trough. here is census, stimulus. we thought we were coming back, then faltered. this is the slow, steady, some would say unremarkable recovery. not as strong a recovery as you'd like to see and now a little faltering at the end of it. >> 120,000 jobs, most people say we need close to 300,000 jobs a month to get back to where we were before the economic crisis. so bottom line is this is a glass a third full would you say? >> i would say so. but i want to know why. i also want to know, look, seven reports until the election. all these numbers have noise in them. sometimes they go up, sometimes they go down. a few people were telling me this week, we're due for a disappointment because jobs have been -- it has been steady. we're due for a little bit of a

disappointment. you got it. i think you got that little bit of disappointment but we don't know what's going to happen next month. >> your job and mine is to give you the what. the question is why. let's bring in harvard professor, former chief economist with the international monetary fund. ken, there you go. we've laid out the numbers. you've looked at them. why? why is hiring slowing down when so many other economic indicators indicate strengthening in this economy? >> ali, honestly, i think it's hard to tell from a month's number. you're right, overall things are not so bad. they show a modest recovery. this is really tepid. i think have you to look at the longer term where the arc of the economy has been pointing to moderate growth. people are getting a little hyper excited. 200,000, 200,000, now to 300,000, 400,000. well, it's probably going to continue at this modest rate. let's hope nothing shakes it up. >> that's a good observation

we've had from a number of people who said, guys, this is not 6% gdp growth. this is 2%, hopefully we get 3%. when people say they would like to see 300, 400, 500 a month that might create expectations we can't meet. diane swonk with mesirow financial, massive cuts seem to be over, we've seen few of those in the last months. private sector has been leading this jobs recovery. what is it that's holding us back from, i'm in venting a number here, 300,000 jobs added every month. what needs to happen? >> well, frankly, this is ken's area of expertise. we're still in the wake of a financial crisis and we've still got a lot of things to heal. very uneven recovery there. i think this month's number also is a little reflective. we got an extra boost from unseasonably warm weather over the last several months. there was payback. retailers that didn't hire this month actually already hired because they were selling spring

stuff in january and february instead of march. some of this is a payback to the earlier gains we saw. earlier gains were extra hype because of the warm weather. sub par recovery, 2% in the first quarter, above that the remainder of the year. that's just not fast enough to create jobs quick enough to bring down an unemployment rate in a way that's substantive. it's something ben bernanke brought up as well. we have 38 months running above 8% unemployment. that ties the 1980s and the cumulative effects of that are starting to show. >> you're echoing ken's idea this is not -- these numbers we have, while we may be surprised we have slowed down to 120,000, that may be more in keeping with the economic growth numbers we see. stephen moore, editorial writer with the "wall street journal." stephen, what's your sense of these numbers? if it wasn't an election year, if you had not heard mitt romney, he's already called this a troubling report, other

republicans quick to point out president obama's policies are holding the u.s. back. make the case as simply as possible as to what president obama and this administration could be doing differently that would rumt in your opinion in more jobs created. >> let me first state, obviously this is a bit of a disappointing report. i debate robert reich on your channel all the time. he's told me for years you need 150,000 a month just to keep pace with labor force growth. we fell short of that. i'm very worried. i think the most distressing statistics we've seen on jobs over the last two or three years is what we call the decline in labor force participation rate which means, ali, people dropped out. these discouraged workers are still out there. that means you don't get the out put in the economy you need. looks the unemployment rate

today politically doesn't matter. what matters is what the unemployment rate is in september, october, november. politically i think you can read too much in this. if i were president obama's adviser, which i'm not, i would say maybe we should cancel the big tax increase that's scheduled for january 1, 2013, i think the economy is way too fragile to take that. i think we should have a much more aggressive energy policy. the one thing to think about, let me just add one other policy variable. we've had this kind of crack cocaine of easy money for three years and it doesn't seem to be providing the real revival of the economy most of us would expect and hope. we're three years now into a recovery. if you compare this to past recovers, it's just much lower than we should expect. we should executive 4 to 5% of growth in this phase of the recovery and we're not getting it. >> i want to take that up with the other two guests, how much of this could have been worse if we didn't have that, as you call

it, the crack cocaine of cheap money, where we would be. i want a break before. diane and ken think about that. two threats outside the borders that could threaten the fragile recovery. a bipartisan effort in washington designed to help startups and small businesses. >> if these entrepreneurs are willing to keep giving their all, the least washington can do is help them succeed. >> republican eric cantor was there when the president signed the bill and aol co-founder steve case was there as well. called the jobs act jump starts our business startup. steve case is going to talk to me about what this means for innovation in america and how it creates jobs. that's all coming up on "your $$$$$." the cadillac cts sport sedan was designed with near-perfect weight balance from front to back... and back to front. ♪ giving you exceptional control

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welcome back to "your $$$$$." i keep referring to this fragile recovery in the united states. i'm not just making that up.

there are external factors that could have an effect on this recovery. while the jobs pictures appears to be improving in the united states that is not the case in europe. take a look at the 17 countries that use the euro. unemployment in that area. it's at the highest level since 1999. take a lo at spain, 23.6%. greece, the one that's been in the news all the time, 21% unemployment. portugal back here, 15% unemployment. ireland is at 14.6% unemployment. the three largest economies in the eu are faring a little bit better. france has just 10% unemployment. britain around 8% and germany only 5.7% unemployment. the treasury secretary tim geithner said economic fallout from the debt crisis in europe is a threat to the recovery here in the united states. but that's not the only threat. in fact, one gets the feeling europe is starting to get its act together. oil markets spooked by

geopolitical attention in the persian gulf as the obama administration is moving to tighten sanctions over iran and its nuclear program. take a look at this. this is the strait of hormuz. that's iran above it. a notable oil producer. the u.s. is no longer buying oil but china and india is. the strait of hormuz is a narrow strait through which one-fifth of the world's oil passes. that straddles iran. iran has from time to time threatened that if anything goes wrong, anybody attacks iran, israel or u.s. attack iran, they may close off that strait of hormuz. now, americans are already paying 20% more at the pump for gasoline this year. let's bring the panel back in. ken joins us again. ken, when it comes to this recovery, what is the bigger threat? is it oil prices, europe, something else? is it neither? >> i think europe is the more uncertain threat. i'd have thrown in china by the way. that's the huge economy slowing

down. the big picture is that there's still a lot of debt, household debt, other debt in the economy that's going to take a long time to come down. there are a lot of areas where wages are still too high. stephen said the fed has put the economy on crack cocaine, too easy, monetary policy. i don't want to say ben bernanke should be passing out candy in the schoolyard but i think a bit more inflation is what we need, that it's not that they have been too bold, they have been too timid. >> very interesting. diane, let's talk about what people think is the big threat. recent cnn research corporation poll found 78% of americans said rising gas prices caused them financial hardship. forget recovery. is there a tipping point for gas prices? is it $4.50, $5 a gallon where americans really cut back on spending and send the economy reeling because they are spending more on gas money they

would have been spending at restaurants or making purchases. >> actually i think that gets into the issues we talked about earlier, unseasonably warm winter weather. we had extremely low natural gas prices and low heating bills as prices at the pump went up, which is completely different than 2008. that allowed america to keep spending. what i worried earlier, the crimp higher prices at the pump play, we have to turn on air conditioners, higher electricity and pay for that at the same time we pay higher gas prices a lot of moving parts. i underscore, ken talked about the fed not doing enough. that is something the national association for business economic survey is in complete approval with what the fed has done and setting expectations on the fed's funds rate as well on the majority of us surveyed, which is almost 300 economists actually said we approve and think the fed is doing the right things because committing to

reflating an economy like this, exactly what ken wrote a book on, is exactly what you need to do at this stage of the game. >> you got the answer, two economists think interest rates should remain low. there was definitely a sense it was move on its own but clearly things can set it back. who has a leg up. conservatives spent theler part of the last two years saying obama couldn't get jobs going in america. generally he's had jobs going in america, a bit of a setback. what do conservatives do? which party has a leg up? >> this is not a hard election to predict in my opinion, ali. if people go into the voting booth they are going to ask one more question, can we afford four more years of these policies. if they are confident, feel like jobs are coming back, then barack obama will be re-elected. if they have a real sense of unease and continued sense of panic about their own finances

and about gas prices and about jobs, then i think military will win. look, i just have to say, let's say the economy weakens -- i do think this is just a blip. i think we'll see some better job numbers in the months to come. if the economy doesn't get better, have you to ask yourself a question, what do we do next? what's plan b? we have record amounts of keynesian debt, borrowing money every year, record interest rates, deluge in the economy by the fed, it's like the keynesians are out of ammunition. i respect ken rogoff, i think wees one of the greatest economists in the country. ken, we have more inflation, you're going to see the gas price go to $5 orr $6 a gallon, cold prices go up. i don't see how the economy will proof. it's going to be more like in the 1970s.

>> let's let ken get a word in there. ken, what do you think about that? >> it's true it will affect oil prices. housing prices are too high. it takes a long time for prices to go down. inflation another way to inflate value. same thing with wages in many parts of the economy. still too high. that's why there's unemployment. there's a lot of debt. yeah, it's not a perfect instrument. this is a once in 75 or 100 year problem. i don't really see another way out except grinding it really slowly, can you take some edge off with inflation. >> all right. dine, stephen, thanks for joining us. ken, stick around. former top economic adviser to president bush is quoting you and rogoff as "wall street journal" op-ed this week insisting we're in the midst of the worst recovery of all time. if he's right, what does that mean for your economic future? plus if the kennedys equal camelot, why is mitt romney's wealth a top target in this election? that's all coming up on "your $$$$$." [ barking ] i'm your dog,

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before the break i asked economist ken rogoff to stick around because he was mentioned in a "wall street journal" op-ed this week that makes that claim. it was written by the former economic adviser to president george w. bush. christine romans rejoins us as well. she had a chance to talk to him this week. christine. >> we hear again and again from obama administration stopped the economy from going into the depression. he argues president obama's policies, some of them, that are making this, in his words, the worst recovery in history. >> this hardly kept us from the great depression. what it does, even at best softened the blow. the biggest problem to my mind is what we've done by engaging in those policies is created a situation where we have very serious long-term debt issues right now.

to my mind those are the most important impediments to economic growth as we look to the future. >> okay. let's ask ken rogoff. is this the worst recovery ever, ken? >> well, it's a matter of semantics, but the great depression is worse. it's hard to compare. sure, there were a few good years in the early '30s and he points to them in his article. we got to 25% unemployment first. it was bad here we got to 10. it was really staggering. frankly it didn't come back really until world war ii that things started to improve. this is the worst recovery of world war ii, typical of a deep financial crisis. the great depression, that was another animal. >> you point out the recovery from financial crises are slower than other crises. ewe were quoted and your research is what all sides of

the economic schools of thought use to talk about this recovery, ken. >> well, i think my work with carmen rinehart, we certainly show the recovers are slow after a financial crisis. i think where policies really matter is affecting the arc of the economy in the longer run. how are we competing with china? where are the jobs going to come? we have a population. kids born today are going to have a 25% chance to live and be 100 years old. can we keep our retirement age where it is today? we don't seem to be able to do anything about it. state pension plans, an 8% return every year to break even. infrastructure -- there are a lot of problems that need to be worked on. >> christine, you talked to ed about some of the solutions are. he was heading towards something. >> how do we know which solutions are like. remember he was an economic adviser for george bush. we talked about sharing blame.

i asked him specifically whether he in the bush white house and during a time of excessive home building whether they doesn't see it coming. should they have seen the housing crisis? >> the time would have been as early as the late '90s and going into the early 2000s when we might have thought about that. but you know, again, hindsight is 20/20. i think people at the time thought it was a good thing for the economy. in retrospect, it wasn't a good thing for the economy. >> that's why when so many people hear economists, present company excluded, talk about how we fix problems. i remember alan greenspan, frank paulison, others telling us don't worry subprime won't hurt the economy. people are a little nervous about how far we've come and how we're supposed to fix it. >> which brings us to an earlier sent men when we were talking to stephen more, where you and dine

swonk suggested this is the economy, he's warning the worst thing ever. how do you deal with these things without the benefit of hindsight? >> it's very hard. the kind of situation we're in at the moment where interest rates are near zero, policy interest rates, we almost never see that. there was japan, one example. we have on our black boards, we have theoretically models of what the federal reserve should do but we don't know. a lot depends on expectations, how people are going to think about the future, adjustment processes the likes of which we've never seen. we don't know. nonetheless, my instinct is i would rare air on the side of ending up with a little too much inflation than having this thing drag on another decade. >> ken, good to talk to you as always. ken rogoff, professor at harvard university, former chief economist for the imf and christine romans, host of your bottom line, which you can watch

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mitt romney sure is rich. he's not the first wealthy presidential candidate. don't tell that to his opponents who revelled in holding it against him. his fellow republicans have aimed to tie romney to his riches in the minds of voters. is it working? take a look at this "washington post" poll. when asked what one word identifies mitt romney, more identified him as rich than mormon ongoing the rye side. that's a change from a few months ago when his fate was menti -- faith was mentioned far more than anything else. why and how has romney's wealth, which has been no secret for years, become such a negative on this campaign? >> two reasons. one, his rivals for presidential

nomination have made a big deal about it. especially when we look at some of the primaries that have played out over the past couple of months. mitt romney does very well with voters who are making over $200,000. rick santorum, ali, does very well with voters who are making under $100,000. so the big argument rick santorum has been making over the past few months is that he is better equipped to defeat president obama in december. in addition to that mitt romney has put self-inflicted wounds upon himself. couple of things he said on the campaign trail such as his wife owns two cadillacs. ali, i don't own a cadillac, most americans don't own a cadillac. he also said he wasn't concerned about the poor. he wasn't saying anything terribly bad about the poor. what he was trying to conveying during the interview was basically there are skrol controls in place to take care of poor. yet, mitt romney is stumbling over his own words. you know what, ali, he has offshore bank acts? for most americans, what does

that say? it says you're hiding money. >> thanks. let's take a look back. john f. kennedy, rich. considered american royalty. men and women had their haircut to look like jfk and jackie o. when he was elected unemployment 5.5%, 8.2 now. gdp, 2.5%. roughly where it is now. george h.w. bush also wealthy and yet a popular gop nominee after two terms as vice president under ronald reagan. in his election year unemployment same as under kennedy, 5.5%. gdp, much stronger, 4.1%. compare that with this election year. unemployment right now 8.2%. gdpf we're lucky, 3%. so what is it? is it the high unemployment rate the reason voters seem willing to overlook sizable bank accounts of kennedy and george h.w. bush but seem to be hung up on mitt romney's money? a good question for will cain

planned barber. using occupy wall street lingo, mitt romney represents the 1% in the minds of the 99%. in fact, his wealth would put him in the top 1% of the top 1%. he would be amongst the richest in america. is that a problem? >> i don't know why that would be a problem? we generally hold poverty against someone, why is it okay to burn the wealthy at the stake. unless you can convince me he lied, cheated to km late it, i don't understand why wealth is a negative. >> that's an interesting question. there are some who feel he made his money, some said this morning, by running a company that took apart other companies and divided them up. again, this is one of those things we have traditionally thought of as okay in american society. somehow it's being held against -- >> that's the concept 1% is made up of financial wizards. we don't like finance. when in fact the 1% is 14% of

that, doctors, lawyers, business executives. we don't understand finance, that's sourcery, magic money, how did they get that. >> you say mitt romney puts the wrong face on wealth. romney has certain had trouble with moments, mark preston talked about some. listen to this one. >> i like being able to fire people that provide services to me. corporations are people, my friend. we can raise taxes -- of course they are. everything corporations earn ultimately goes to people. i'm in this race because i care about americans. i'm not concerned about the very poor. we have a safety net there. >> rick, i'll tell you what, $10,000 bucks? $10,000 bet? >> i should tell my story. i'm also unemployed. ann drives a couple of cadillacs actually. >> these are moments romney's opponents have seized on. why is romney's money such a target. >> i think the issue is not

money per se but he allowed money to define him. we've had a lot of rich people in the country. people don't resent money. oprah had a lot of money, derek jeter, roosevelt in much worse times had an awful lot of money. we have not allowed class or money to define people. most of the rich call themselves middle class, the poor define as middle class. that's not the issue. in a peculiar way he's lost any other signifier but money. i wasn't to talk about cars, should have bailed out detroit. he puts a dog on it, has an elevator that brings it home. >> it's weird. >> in nascar he says i know the owners. doesn't know the drivers, fans, he knows the owners. >> he's honest.

>> he's certainly been defined by his wealth but i'm not sure what you mean by allowed himself to be defined by wealth. this is a principled human being, rain or show every year he tithes 10%. he gave away two years of his life on a mission for his church that had nothing to do with money. i don't know what it has to do with allowing people to define you by your wealth. >> it's a politics of perception. he talks about his money. he can say every american loves -- our family likes cars, too. detroit. he says my wife has caddies. >> so does donald trump. >> he doesn't talk about it. >> trump? >> like oprah. donald trump is a celebration of donald trump. it's fun y, who would have thought romney would wish for the days he was defined as a mormon instead of a rich man. >> you concede romney can do something to translate this into, wow, i'm successful and,

hence, should run your country as opposed to these are gaffes. >> they are gaffes because he's trying to deny it, ali. i think that's the exact point. i disagree with ben. i think that's fine to be defined by wealth. do it as he does it. he's a success story. he's a success story. unless somebody can show me he lied, cheated or steal, he's a success story. put it out front. >> that's not what we celebrate in america, we celebrate what you make your money for and how. oprah has made a heck of a lot of money by becoming a celebrity, special adviser to women, an emblem of what an african-american can do. >> romney earned his money, right? >> how? for what purpose? he's got the money but what for. >> in fairness, it's mostly been republicans who have drawn this line, who have said what refresh my recollection perry called them vulture capitalists. this is mostly an internal

republican fight. democrats -- >> they haven't had a chance yet. it's fundamental lack of understanding the role of finance in economies, apportions capitalism. if you don't know that you've got economics 101 to learn. >> right here will drives the wedge into the republican party. because what rick santorum does is onsay to be a republican is about values, how you live, how you relate to ordinary americans. to say about making money, being rich, solving problems technocraticly doesn't speak to americans. we're not talking about fair. we're talking about what works in politics and perceptions. if i had to choose a republican, god forbid, i'd sure take romney before santorum for some of the reasons you're talking about. >> don't we all agree people don't understand finance, they don't understand wall street. they think it's magic or stealing. >> that's finances own problem, its own pr problem.

we know the banking system is essential and necessary. find me ten americans, nine out of tense americans that will tell you that. >> they do not like that. >> it's a simple problem but the reason why romney won't be the next president of the united states. >> we shall see on that. >> thank you so much. a distinguished senior fellow, cnn contributor. stocks up 70% since president obama took office. why? is wall street calling for a change this november? i have hemorrhoids and yes, i have constipation. that's why i take colace®. [ male announcer ] for occasional constipation associated with certain medical conditions, there's colace® capsules. colace® softens the stool and helps eliminate the need to strain. stimulant-free, comfortable relief. no wonder more doctors recommend it. say yes to colace®! [ male announcer ] we're giving away fifty-thousand dollars worth of prizes! enter weekly to win! go to colacecomfort.com to enter!

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stocks have been on a tear the first three months of this year making it the best first quarter for the s&p 500 in 14 years. a lot of your mutual funds in your 401(k), ira will look like the s&p 500. check this outit generate add 12% return. that's where the market has been so far. the question is where is it going? right now you and a lot of folks are wondering if it's time to get back in the mark, time to start selling stuff. before you dig out the password to your etrade account or whatever you use you may want to listen to this discussion. a managing director, rex harris, managing director of cnn money, vice president and senior

portfolio analyst. welcome. you say easy money is gone. >> big gains mathematically it's very tough to replicate that. that doesn't mean we're going to go down a lot. you can have any sort of correction after a 30% gain. don't come in now expecting 30% over the next six months. >> these gains don't come without risk. you say all the data points to the kind of volatility we saw last year. i like to remind our viewers this. while everybody thinks they want gains, what most people do better with slower, steadier, without the volatility we had in a kind of year like last year. tell us your thoughts. >> there's a couple of factors that really haven't been solved between this year and last year. first and foremost, europe. europe has still not been involved. they keep kicking the can down the road. spain and italy are out there with very large debts and a very

unsteady banking system that the eu has to step up and fix. we don't believe that the actions that they have taken lately have really, you know, nailed what's fundamental wrong over there. that is doing to eventually blow up and make investors nervous. then there's the big misunderstanding about what's happening in china. it's very difficult to get good data out of china. we're all depending on china having a soft landing. i don't know that we can count on that. we're always looking over to china to see what they are doing. that affects this global stock market of ours. >> earlier in the show we were talking to ken rogoff and i asked whether europe and oil in iran were the biggest threat to the economy. he said china might be the biggest threat. a survey asking investment strategists what did you find. the list is similar to what kim just talked about. >> absolutely. all those things are addressed. jim and i were talking, too.

can you go on and on with how many risks there are in the market. number one, what washington, d.c. is going to do. there's going to be so much uncertainty. wall street, of course, hates uncertainty. talking about tax increases, spending cuts. no one knows how it's going to play out. point to two other things. we had -- if you think about the two things that drove the market so far, we had profit growth and easy money from the fed. both of those things are a big question mark right now. >> jim, the fact is our viewers should do in a smaller way what you do for a living. you don't sit around and hope you make money because the market is on a tear or hope you don't lose all your money because markets are going down. what should they be looking for? >> well, you're in a low return environment over the next several years. money markets pay nothing, bonds are low. the best way to accumulate capital over a multi-year period is to own shares in companies that have growing earnings, dividends, and growing dividends. so i would buy world-class

companies, some in america, some in asia, some in latin america that are able to show reasonable growth in a slow growth, low return environment. that's the best risk adjusted way to make money. >> kim, the stock market might be up 70% since president obama took office. another cnn money survey show vast majority of investment strategist and money managers actually want a change in the white house come november. take a look at this. stocks are up 70% under president obama and wall street wants a republican president. are you surprised by, that kim? >> i am kind of, because, well, first of all, i don't know that the actual president has a whole lot to do with the economy at large. we like to have him as our mast head on the front of the ship pulling us forward or figurehead on the front of our big ship that's the economy. but i don't know that they have all that much influence. but that being said, if you look at the donations so far from

wall street, it's pretty even. i think that wall street who gave us hedging hedges the bets in the long run and will donate equally to both. let's see what happens by the time november hits. >> that's an astute way to look at it. as much as they say what they want they hedge their bets unless there's an ideological dog in the fight. you guys were on top of the survey. what's your take on it. >> wall streeters always say they want republicans. it sounds good. we want low tacxes, low regulation. what makes money go higher. regulation from the feds which good sifs aren't supposed to like and stimulus spending goosing corporate profits along the way. you definitely see this funny disconnect there. >> that's right. is a strange look at it. either way, don't expect the rally necessarily to continue. do what jim says, take a look at your investments and rebalance them as necessary. thanks to both of you.

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a new law makes it easier to get in on the next big thing. the j.o.b.s. act allows to us become stakeholder in companies that haven't gone public yet. it passed approval and president obama sirened it into law thursday. it targets gross revenue less than a billion and relaxes regulations companies looking to go public. ipo. allows them to advertise to investors using the internet. start-ups can raise up to a million over a 12-month period. the co-founder of aol now the chairman of the start-up america partnership and chairman and ceo of revolution steve case joins me an a member of president obama's j.o.b.s. council, at the bill's signing ceremony. good to see you. this bill is trying to be a pro-business bill. i'm a little surprised at the

amount of opposition out there to it. tell me what this bill is supposed to achieve. >> it's really part of the recommendation the j.o.b.s. council made to president obama in october. a series of things how to jump-start our community. it's a source of all the net job creation over the last three decades. 40 million jobs made by 40 entrepreneurial companies. the way to focus, on the young start-ups. the bill passed was overwhelming bipartisan support in the house and senate and signed by the president does a number of things. allow crowd funding for companies to access capital. lots of people making small investments. another on ramp for initial public offering, later stage companies can access public markets because of the cost and complexity of some regulations. the same regulations ge or ibm or walmart va ply to these young emerges economies. with the new law, that's changed. a five-year ramp. a number of important changes

all about making sure entrepreneurs have necessary to the capital necessary to start and expand their companies drives innovation, and job creation. >> once this gets going, tell me the difference. in some of these start-ups, the way they would get funding now versus the way under the new bill? >> look at high-growth company. only 15% get venture capital. 85% funded in different ways. this creates new opportunities for kpoi without traditional venture capital. people focussed in silicon valley, venture companies there, facebook shot, that's the exception to the rule. look around the country, all sector, not just technology, services and manufacturing, most entrepreneurs are in need of capital. these new tools, funding, allows them to aggregate investments from lots of people and get their company going. it's existed for a while. up until now you could only use

it to fund a project, not invest in a company. perversely, you could use a site like ebay to sell 100% of your company. you couldn't sell 1%. this allows selli ining small interests in your company to lots of people to get the capital to get started. >> where's the criticism coming from? you said, it's bipartisan. we know there's excitement in the start-up sector, there has been for some time. why so much pushback on this? >> i think a lot of support. certainly some critics. the concerns are legitimate. they want to make sure as the new tools are put in place, to give entrepreneurs the capital, the ability to invest in young high-growth company, most agree is a good thing, sufficient investor protections are put in place, so people don't get ripped off. obviously, that's important. the final law that gauss passed had amendments that forced those to go through interimmediate yairs, register with the fcc. that's important. the industries are joining

together to put self-regulatory practices in place, and the fcc itself will put the rules of road in place. even though it was signed by the president this week won't go into effect until early next year, because the rulemaking needs to happen. i'm confident at the end of the day the rules will be right so that investors are protected, entrepreneurs have access to capital to startened grope companies and individual investors up to now have been locked out of investing in these young companies will have that path as well. >> steve, good to talk to you. thanks for joining us. >> thank you. it's an industry everyone loves to hate. yale economist says finance can actually save society as will cane was saying earlier. a sneak peek at how, next.

thanks for joining the conversation this beak week on money." next week, investing, saving, mortgages, insurance, all things that should better life, not complicated it. where did it go so wrong? an economist will be here to tell us how finance can help