...and we inspected his brakes for free. -free is good. -free is very good. [ male announcer ] now get 50% off brake pads and shoes at meineke. far away from any courtroom, when it comes to the economy, there can be no debate. racial inequality exists. the numbers don't lie. in jobs, housing and investing and african-americans lag far behind whites. the u.s. is a country where the unemployment rate for black americans has long been doubled the rate for whites. 43% of african-americans own their own mohammed hoem compared to 73% for white households. the only color that should matter when it comes to money is the color green. and yet the economic disparity between black and white is

unsendab unsendabu undeniable. almost 18 times the median met worth of african-americans about $6,000 and that gap grew significantly in the wake of the financial crisis. why the disparity and what can be done about it? talking race in america is never comfortable. but it's a discussion that is long overdue. revere revere reverend jess reverend jesse jackson, thanks for joining us this morning. so nice to see you. really important conversation we are having about inequality of wealth. inequality money in america. what is the number one factor in your view, the number one factor in your view that 50 years of progress we have not made progress on money? >> we are free but not equal.

as a matter of fact free but less equal. i think one impetus was the housing rate. in chicago, jobs out. the industrial collapse. there's a big factor in it. this past summer, some of grants. last year, chicago 800 students and this year it has 500. grants. more house colors without the king, with the school. parent plus loans. the schools, faculty. >> it's not one thing. it's a lot of things really moved forward and propelled most recently by the housing crisis. when you look at the recovery, even in the recovery, you see people with money, people with

jobs, people with homes doing great. there's one group of america making a lot of money right now. and everyone else is falling behind. >> the banks are doing better because they got bailed out. those who got bailed out are doing much better. 21,000 auto dealerships that were like 800 black dealerships five years ago and now down to 200 out of 21,000. that's not only one black soft drink franchise. for example the stuff that make up the guts of middle america and then 4,000 auto dealerships and 236 african-americans and it's difficult because whites who got those dealerships got them in per petuity. you can't buy them any more. >> when you look at the mobility numbers, this is a land of opportunity. america the place where your ambition is the thing that can drive you. a talent and the opportunities is what america givers you.

several recent studies challenge this notion. one report from pew finds social mobility is on the decline and means u.s. is not the best bet to move up the economic ladder if you're born poor. the rich stay rich more observe in this country. that sounds distinctly un-american. my question to you feels like one america and two economies. is it race that is dividing us in money or is it class? >> well, based upon race you have less access to education. you're more jailed. now, christine, you have the case where in chicago, for example, the prisoners, the county makes $3 million off telephone calls. the poor get the telephone calls to make. the other part is prison labor is on the rise. south carolina, 20% of all prisoners are lease to do companies, for example, that some kids in cook county jail in there five years waiting for pretrial retention.

when you go through a month ago the blooks and whites use marijuana about the same level and blacks third time more likely to be raefarrested then is your record. >> we know all of those credit and background checks every employer is doing 40% of employers i guess do background checks. i can definitely see how that is something that can hold somebody back. >> we do best on the football field. are on the basketball court. in those areas of life that most americans see, playing field is even. >> that is a good point. >> when the playing field is not even, you can't score. >> that is an interesting point. i haven't heard that point been made. what is the one thing we can do to take this moment right now, the people on the streets, people talking about race and uncomfortable conversation and talking about it and again talking about equality and looking at money' equality.

>> deracialize the debate to some extent. you got these poor zones of hard working coal miners. poor folks in appalachians where president barack obama was the organizer you cut public housing. you close private housing and close the post office and the auto dealerships and drugs in, homes foreclosed. it's just a zone, a waste land and where you have the violence coming from. jobs and education and transportation. because if you live in chicago, if you can't get public transportation you can't afford private transportation. you can't get a job disconnect people trapped and living where the jobs are and you simply can't grow. >> nice to see you. we will keep the conversation going. thank you, sir. coming up, black america feeling left behind in this

recovery. >> we don't see how the market is going up. we don't see that point. of course, all we getting is what comes downhill which is the crumbs for the rich mans taking. >> take you to one community in brooklyn. the new guy is loaded with protein! i'll believe it when i--- [ both ] oooooh... [ female announcer ] as you get older, protein is an important part of staying active and strong. ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. [ major nutrition ] ensure! nutrition in charge!

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or "put your feet in the sand at a waldorf astoria." never stop vacationing, dan. book during the great getaway for great rates at our ten top hotel brands. travel is calling you to hiltongreatgetaways.com. the economy. in black and white. one america, two economies. the divide can often be drawn along racial lines. i want to bring in zane asher. you spent some time in one brooklyn community where people are struggling but determined to change their fortunes. >> yeah. i went a community that desperately wants in on this economic recovery. we know that the s&p 500 is up 18% this far and jobs coming back at a rate 200,000 a month. you go to this community i went to and think say when i get rejected from a job is it because of my name? absolutely heartbreaking.

i did speak to one guy who is trying to change that, martin allen who spent 30 years in jail for robbery. he said i made some mistakes but it's my job to help young black and women get to work. take a listen. >> reporter: stocks hitting record highs and housing in recovery and unemployment falling but much of black america is feeling left behind. >> what we see every day is people struggling to put food on the table. >> reporter: at 13.7%, african-american unemployment is more than double the rate for whites. martin allen is trying to change that in his low income brooklyn community after turning his own life around. >> i was in prison, finishing up a sentence and i saw my stepson come through the same prison walls that i was in and right then, something went off of my head to say, enough is enough. >> reporter: he started his own construction company and began offering training classes, opening his doors to the

homeless and excons and anyone else independence. he estimates he has placed more than 2,000 people at job sites around the city. >> i changed my mind dramatically because as a mother, i felt like there was nowhere else to turn. i was stressed out and didn't know what to do. >> reporter: learning what else to do is where financial adviser ryan mack comes in. he is teaching his people in the community about saving and investing. >> they really think it's not for me. i can just put money under my mattress. i can just continue to use this check cashing place. we don't see how the market is going up. we don't see that point. because all we getting is what comes downhill, you understand? which is crumbs from the rich man's take. >> reporter: but even middle class blacks lag behind whites whens it come to investigating. a household making $50,000 a year found 0e% of the whites in the stock market versus 60% of

african-americans. the housing bust made catching up even harder. african-american households lost 53% of their media network compared to 15% for white households. with housing stabilizing, mack seize an opportunity. >> how can we get in on this recovery? the first thing we have to do is you have to start establishing credit immediately. you have to start paying your bills on time. you have to start budgeting. you have to start getting a stable job. >> reporter: a stable job like the ones in construction, martin allen hopes will be a bridge to something better. >> we try to tell all of the people, look. go to work right now. but use that as a stairstep to the next level. four to five to six carpenters can get together and form their own little company. >> reporter: as i was leading the interview, one guy tapped me on the on the shoulder and say we hear about trickle down economics but why isn't this economy trickling down to us?

one said he wwas 47 years ago w he opened his first bank account. you have the stock market highs but 25% of african-americans don't each have a bank account. >> and more people living paycheck to paycheck in america so that is good advice. >> a lot of the jobs coming back in this recovery are the low income, low wage excuse me jobs that sort of part-time so it's not exactly a fair recovery. >> thank you so much for that piece. do you know what this is? your kids know. it's not the latest digital movie device. it's a cigarette. is it safer the device or is it the way great companies are trying to market cool to your kids? dr. sanjay gupta joins me next with the facts. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer.

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the old fashioned marble is getting some competition. if you look closely you might notice people puffing on electronic cigarettes instead of

the real thing. maggie has been following this growing trend. hi there. >> hey there. when is the last time someone lit up next to you in a restaurant? that may be changing because of these electronic cigarettes. sales are soaring and big name investors are getting on board. ♪ you've come a long way baby ♪ >> reporter: it's been decades since cigarettes like virginia slims were considered trendy and fashionable. when madman fame could light up at will and getting a carton of cigarettes was considered an appropriate holiday gift. >> it looks so bright and colorful under your christmas tree. >> today with the dangers of it plastered on every packet. >> led light in here. >> a new generation of smokeless cigarettes are gaining investor attention and even celebrity support. >> this is remarkable. >> i know! >> to the dismay of some in the health industry who worry about their safety, sales are rising.

e-cigarette sales are expected to double to 1 billion market with dozen of brands to choose from. investors who used to smoke out. former facebook president and brains behind napster is among the investors pouring $75 million into njoy. bedford slims a start-up based in brooklyn is attracting outside interests. >> i started on about 5 thousand dollar investment and throughout that course of the year, i raised about $15,000. >> reporter: and don't think big tobacco isn't sniffing out opportunity. >> today, we are unveiling our latest transformative product. that is fused, digital vapor cigarettes. >> reporter: r.j. reynolds the makers of camel and winston and salem cigarettes rolled out vuse. >> there will be some level of cannibalization but however it's

aligned with our transformation >> reporter: smoke-free alternative are only lightly regulated by the government, but there's nothing stopping them from being advertised on tv and in magazines. without government intervention big tobacco may be back on the air waves in a big way. >> and it can be confusing when you see someone smoking it. they look just like a regular cigarette. it's interesting when i talk to people, they're divided. some people think it's great. this is a way they can safely smoke, although the companies themselves are careful not to make that claim. other people, especially former smokers, say it took me so long to break that habit. i don't even want to open the door a little bit. >> you can see the packaging clicks like a lighter. >> they light up at the end. >> also tactile experience. >> concern by minors seeing this, too, and bringing back the cool to smoking that people worked so hard to sort of separate out. >> maggie lake, cnn

international. e cigarettes are growing more popular but what are the health ricks? i want to bring in dr. sanjay gupta. give it to me straight. are they safe? should users beware? >> well, let me put it to you like this. since 2007, roughly, when these have been out, they haven't really registered health complaints. that's not surprising because sometimes it can take time to register the health complaints. but the real answer is we don't know, and that's because this isn't regulated like a drug, christine. typically if you have a drug, you have to prove, you have to go through safety trials ahead of time. something like this, you really have to -- the product gets out on the market, and then if health complaints start to come in, it's subsequently investigated. when we looked into this, i can tell you when you talk about tobacco, you're talking about lots of different chemicals. you're heating them, lighting them, and potentially releasing some of the cancer-causing qualities of them. that's been the concern. here you don't have many of those chemicals. you have nicotine, you may have other chemical that is cause the vapor.

we don't know what the chemicals do for sure. probably there's still not enough data. >> so much, sanjay, about this, the click of the top almost sounds like the old fashioned lighter. the way they look, the way they feel, even faintly how they smell. could they be an effective aid to help people quit smoking like the nicotine patch or the gum or is this something that maybe, you know, people could get addicted to, people could start trying who maybe wouldn't have been a smoker and they like it. >> you know, i worry about the latter part of what you're saying. i think, first of all, there's two reasons, one of them is going to surprise you i think. that is you mention the nicotine patches or the gums. those are designed to give you a certain amount of nicotine and you sort of taper it off. that's how you get off smoking. that's the goal. here even with the ecigs, it's not clear how much nicotine the people are getting. some researchers said it's about every ten puffs they were getting some nicotine. mostz of it is the vapor made up of things like propoe lean glycol and that's going to be

needed to be investigated more. i'm not sure you could say it's going to be a very effective smoking cessation device again for in part the surprising reason that it doesn't actually give that much nicotine at least the brands we've looked at. >> a trend certainly to watch, both a financial trend and health trend. sanjay gupta, thanks. don't miss your point with dr. gupta every weekend. it airs saturdays at 4:30 p.m. eastern, you know, 7:30 in the morning. thanks. right here on cnn. coming up, not everything you do on your cell phone is private. >> you should assume that everything you're saying is being intercepted. >> at least that's what some hackers say. how to protect yourself next. "i'm only human" ] humans. even when we cross our t's and dot our i's, we still run into problems. namely, other humans. which is why at liberty mutual insurance, auto policies come with new car replacement and accident forgiveness if you qualify.

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it's a popular technology for extending cell phone coverage, and it had a major security hole that went undetected for years. cnn money tech correspondent laurie segall joins me with more on that. >> very eye-opening. it was a hack that happened in a network device.

a network e tender is something you take in your home if you have bad service and you can put it in there and you get better service. i spoke with a bunch of hackers and this is a verizon device, who were able to tap into it and see basically everything you're doing on your phone. i want to show you how they were able to actually hack my text messages. check this out. i've got a phone right here. i can text your phone and you're going to be able to use this to intercept and see what i'm texting. >> we see it after it leaves your phone before it reaches the carrier on the recipient's phone. before my friend even gets the text, these guys are reading it on their computer. >> and you can see right here looks like an outgoing sms from this identifier sent a text message to this phone number, hey, what is up. >> you can see my face. i'm clearly shocked. the last thing you think is you're going to text someone and some guy in a room with a

computer is intercepting that. but i will say it got even worse because i was asking so what else can you do? and they can look into your browsing history. i don't know if you have ever looked at your bank account statements, that kind of thing on your phone, they can do that. but he actually was able to record one of my calls. check this one out. what else do you got? >> how about a voice call. >> let's call. hi, andrew, how are you? i'm good, i'm good. >> i will play it back for you. >> hi andrew. how are you. >> i'm great. how are you? >> you can call a family member and someone could record that conversation, very eye-opening. that's just because this flaw has existed for years. people could have been able to do this. the last one i will show you is think how often do you send picture messages? quite a bit. they were able to intercept the picture i sent to someone before it even landed on their phone. check this one out.

you can also see pictures. if i text someone a picture. >> let's do a picture message. >> all right. >> so your phone used your data connection to send a picture message. we intercepted the data connection, logged it, and grabbed the picture out of it. showed it on the screen. >> what does verizon say about this? >> she issued a statement. they said the demonstration cnn saw was for an identified issue that was fixed earlier in year on all network extender devices. they went on to say the fix prevents the nextwork extender from being compromised. they said there were no reports of any customer impact. if you do have one, all i can say is make sure to update your software. >> thank you. coming up, a brand new edition of "your money" 2:00 p.m. eastern. brand new. it's a lesson in hard core negotiating from les gold, the star of "hard core pawn." >> we're getting waffles for the crew. >> how much are the waffles?

>> average $4 to $8. >> $8 for a waffle? why? >> how to get the best price on everything. i learned a ton. a brand new "your money" at 20:00 p.m. eastern. cnn "newsroom" right now. trayvon martin could have been me. >> the parents, the lawyers, and the president himself have spoken out on the trayvon martin case. now, we're just hours away from rallies across the nation protesting the zimmerman verdict. >> they could not leave and get on their own free will. >> hostages held in a house, possibly for years. no, this haven't the cleveland case. it's another one. and the suspected motivation will shock you. ♪ he's the newest star to break into country, but steve grant is not the typical all-american boy. the music and the personal life that has a lot o