your service. thank you very much for spending time with us today. we will see you here at the top of the hour. coming up on an all new "your money." billionaires say if you want to be rich, work harder. do the 1% work harder than you? "your money" starts right now. >> another weak jobs report. a growing gap between the rich and poor. i'm christine romans. this is "your money." the american economy is not working for everyone. just 113,000 jobs added in january. far short of what economists expected. nearly 13% of americans are out of work or can't find a full-time job and want one. participation in the labor force is the lowest since 1978. witness the rise of the low-wage bread winner. 21 million americans rely on low-wage jobs as the main source of income in 2011. who is to blame?

sam zell, a self-made man, epitomizes the story, says people are picked on. >> they should talk about emulating the 1%. the 1% work harder. >> that's right. he says the 1% work harder. steven morris, the chief economist for the heritage foundation and contributor to the wall street journal. steve, zell says the 1% work harder. many americans getting paid not to work because of disability payments record high. food stamps, record high. welfare, record high. those are risen sharply since the '80s. the average ceo made 273 times the average worker.

>> i do think the increase in the welfare has been a problem. i think it is a problem because even during the recovery we have seen more and more people put on welfare. i think it has become a substitute for work. when you talked about the income -- >> a substitute for work or safety net? does it show it was almost another great depression and do those numbers reflect how horrible it was? would you have such a safety net to have people fast pre-sip to usually out of the middle class? >> the unemployment insurance and food stamps has risen as the economy has recovered. i think for too many people, welfare is a way of life. >> whether you envy the rich or emulate them -- >> i like rich people. i want to be rich. >> you know, washington just doesn't have a clue how to fix it.

2/3 of americans say economic conditions are poor. this crisis has been decades in the making. narrowed the choices for middle class. >> christine, that is where i disagree. we had the biggest boom in the country in history in the 1980s and 1990s. under a republican president and democratic president. people moved up the ladder. something has happened in the last eight to ten years. we had a big boom and the middle class did well in the '80s and '90s. >> from 2009 to 2012, 90% of the income gains went to the top 1%. even republicans like marco rubio and paul ryan talk about the social mobility decrease. what is the gop position on inequality here? >> here is the problem. look, there is mobility in the economy. this has been a hallmark of

american economy for 200 years. anyone can pick themselves up. immigrants come to the country with often the shirt off their backs. they move to middle class. the people at the bottom 20%, and i believe that is a result of the fact you have a lot of kids growing up in fatherless homes and a lot of crime in those neighborhoods. lousy schools. i'm saying this is more social factors than it is the economy. if a kid is growing up in a fatherless home, you know, that has to go to a lousy school and doesn't graduate from high school, it is hard to find a way to escape poverty in that situation. >> i think there are a thousand factors. steven, thank you. coming up, what goes up must come down. the stock market took a big hit this week. that's next. olive garden's best 2 for $25 yet is ending soon!

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listen. it gets your attention. don't freak out. the bulls on wall street will tell you the recent drop is a good thing. why? the incredible run last year. the u.s. stock market is one of the safest places in the world in a world full of uncertainty. the fed is still pumping billions each month. it is gradually slowing down the fire hose which is putting the fear factor in the economists these days. think of it as a reality check for a charging bull to get back its energy. the bears say stock prices were way too high in the first place. risk is back. risk aversion. investors are now driven by fear. now that the fed is pulling back, the market will fall. there are questions about the u.s. recovery and the labor

market. new fed chief janet yellen must take the air out of the bubble that ben bernancke inflated. we have matt here with us. i want to show you how far we have come over the past five years in the market. an incredible bull market. you see the four spots i highlighted. those are the only real pull backs. two of them were not corrections. less than 10% declines. is that a good thing? do we need to come down here so we can come back to reality so the bulls have a reason to get back in? >> we do. nothing in life goes straight up. not even the best bull market. the red lines you showed in the chart, at most, 7%. unheard of that it pulled back 7%. the pull back we are having is 6% or 7%. the last time this happened over the last 15 minutes, every time the market rallied to hit a new high. if the pattern continues, we will keep going. >> the fed had its foot on the gas. now it is pulling up. >> true.

from 85 billion now down to 65 billion a month in asset purchases. that is old news. that has been priced since the market. we know it will stop with the asset purchase by the end of the year. it is now earnings. look at the earnings numbers so far. 8% year over year increase. the best increase over two years. >> people should know stocks move based on how much money they are earning and how much investors think they will keep moving. i want to talk about tech stocks. apple. some have come down. more than a correction. apple buying $14 billion of its own stock back. total buy back to 40 billion. that is something to boost stock price, which right now is more than $500 a share. higher than that in 2012. is this a buying opportunity? >> i don't think that will continue because of the buy back. it will have a prop in the stock for a week or so. what apple is saying is they are confident. they are taking their own cash

on their balance sheet and buying. i'm a shareholder of apple. i like that. long term, i need a new product. i need something innovative and change the technology world. >> are you buying apple here? >> i don't buy it. i own some. you can trickle in a bit here. >> i'm looking at something i'm calling a consumer correction. anything that touches the regular joe. those stocks are down. those stocks are down. bed bath and beyond and staples and target. >> you have to be stock specific. numbers came out this week for the national retail federation. they said sales will be up 4.3%. that means the consumers are resilient. americans may not have a job, but they love spending money. times are good, you spend money. times are bad, you spend money. one of the worst months ever for

retail, january, buy into the weakness. >> americans share that trait with their government. look under the hood of twitter now that it is a public company. what did we see? did we see a company that is saturated its niche. 240 million active users. >> this is why i did not buy the stock when it went ipo. the growth is good. you can't fight that. the problem is, have they peaked? that is the question on wall street. stocks sat at $51 a share. if you look at the valuation, this stock can sell at $20. based on valuation, this can be a $20 stock. >> i got a lot of grief from users. 240 million active users. the growth was slowing. maybe the celebrities and politics and snarky snarks gave

me grief. falling rates for now after rising a full percentage rate, mortgage rates are slipping back to 4%. rate on the 30-year fixed loan, 4.23%. the 15-year, a popular refinancing tool. 3.33%. now, lower rates mean more money in your pocket. a $200,000 loan at 4.23% carries a mortgage payment of $982. at 4.5%, it is more than $1,000. interestingly, the return of low mortgage rates has not meant more refinancing or more home sales yet. almost 50 million american adults are smokers. that is 19% of the population. almost one in five. the leading cause of preventible death. which company is snubbing smokers? give me 60 seconds on the clock.

it's "money time." cvs kicks the habit. it won't sell tobacco now at pharmacies and clinics. the ceo says selling tobacco products is inconsistent as its role as a health company. one america. two economies. gm and ford reporting sharp decline in january sales, but luxury cars are selling better than ever. google search results look different in europe. they are giving more screen time to yahoo! and microsoft instead of pushing its own services. get ready for coca-cola k-cups. the company bought a 10% stock in green mountain coffee roasters. every two seconds, an american

becomes victim of identity fraud. that is 13.1 million victims last year. that means in the last 60 seconds, 30 more people just became victims of identity fraud. how do thieves get their hands on your information and what do they do with it? get the scoop from an undercover agent who was part of a huge hacking ring next. ge didn't sta. it began on her vacation in europe on the day she arrived in london. someone set up a bogus hotspot, stole her identity and opened some credit cards in her name. but she's not worried. checking her credit report and score at experian.com allowed her to better address the issue... ...and move right in. experian. live credit confident.™ of the dusty basement at 1406 35th street

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intelligence cyber criminals working behind computers halfway around the world. they want your good credit. they turn it into tens of thousands of dollars. the massive hack at target yet another reminder they are out there. who are the hackers and what are they doing with all of your

information? cnn reporter drew griffin has more. >> reporter: the stolen cards bundled and sold across the world and back again and actually used to commit these crimes many times before anyone, including your bank, the stores or you learn there has been a criminal breach. the criminals involved? according to the inside source, unassuming geeks. don't let this baby face fool you. if you want to know who is behind the hacking, stealing and selling of your credit cards, max sd maxim of the ukraine. max was the kings of the hill. the most prolific credit card are trafficker in the world. organizing and operating a worldwide credit theft ring that hacked into nine

cards jessika jenson da that that would be sold to other criminals who would then go on buying sprees and sell whatever they bought with your stolen credit and state your name turn cash. >> you could potentially take $25,000 from a particular credit card. >> reporter: and it was relatively easy, perfect looking fake credit cards bought online, machines doing code and emboss credit cards bought online, and also available online, freshly stolen credit card information that this cyber criminal was buying straight from a baby faced ukrainian tech geek. >> you had the material to make the cards, you had the plastic to make the cards and then you got the data to actually make the physical cards real and a active, just to be clear you didn't do that. >> reporter: that's because this guy isn't a real cyber criminal

at all, he's an undercover secret service agent who for three years became part of this massive cyber criminal network defriending masik and traveling to ukraine, turkey, southeast asia to immerse himself into one of the fastest growing criminal screams in the world, these are the cyber criminals who electronically break in, into store store, retailers, any company with credit card information and the undercover agent would pretend to be a buyer and use the stolen numbers and literally create credit cards that looked and act exactly like the card in your pocket. >> and before you even realized your credit card numbers had been stolen, crews were out buying up merchandise and selling it on the black-market. >> how many cards were available, how many credit lines were available? >> millions of credit cards.

>> reporter: the secret service was buying up stolen credit cards in bulk in a weekly basis to reel in masik's trust and eventually masik himself. >> did he seem like a criminal? >> some of them came off as looking as a mafia figure or the next big criminal, ordinary individuals. >> after a night out in turkey he brought him back to a hotel where, as planned, they were both arrested, for more than a year the agent continued the charade even as masik was sentenced to 30 years in turkish prison. >> as for the thousands of stolen credit card numbers the secret service was buying up, well, if you were lucky your card was one of them because while pretending to be using to commit crimes with those cards the secret service was actually calling your bank, canceling the cards, and preventing a lot of people from going through the misery of having their credit

swiped. >> it is miserable, i have to say it feel as though, drew, it's the wild west out there your financial information and you have to trust the companies aren't being hacked and that they have the right systems and the banks are going to alert you if something is amiss and i guess you have to trust 17-year-old hackers halfway around the world who clearly are not trustworthy. >> and not to mention, as we learned in target, the suppliers, the people who access those machines, it is crazy and your credit card numbers are everywhe everywhere. >> something that is so convenient for companies to use to help us spend money, it really behooves them to make sure it's safe. up next, anger at the risks playing out on the streets of san francisco, what caused this tension? the answer is next, opened some credit cards in her name. checking her experian credit report and score allowed her to better address the issue...and move right in.

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...and let in the dog that woke the man who drove to the control room [ woman ] driverless mode engaged. find parking space. [ woman ] parking space found. [ male announcer ] ...that secured the data that directed the turbines that powered the farm that made the milk that went to the store that reminded the man to buy the milk that was poured by the girl who loved the cat. [ meows ] the internet of everything is changing everything. cisco. tomorrow starts here. well-paid silicon valley workers are driving up high real estate

prices in the bay area and lon-term residents are feeling squeezed out. dan simon has the story. >> a bus stop in san francisco swarmed by protesters. these people angry at what they see as growing income inequality in the city. but to understand the issue you need to check things out on a regular day, so we did. it's 9:00 a.m. on a wednesday morning, and these google employees are headed to work. same goes for these apple employees, facebook employees, genentech qulemployees and linkn employees to make the hour-long commute from san francisco to silicon valley. 17,000 workers going back and forth each day. >> without the shuttle it would be a huge hassle. i don't even know if i would have taken the job without that additional perk because for me i don't have the car in the city. >> reporter: like many young people in the tech world lindsey

norman lives in the city instead of closer to work. the simple fact is where the frustration begins for many other san francisco residents. the biggest problem they say is well young-paid tech workers are taking up a disproportionate share of housing and driving up astronomical real estate prices. it's outpacing the nation more than three fold. average price of an apartment here is more than $3,000 a month. >> it's very sad to see people being forced out of their homes where they lived for decades. >> it's just a symptom of a larger change, a lot of people are moving to the city and people want to live here. >> reporter: so these buses have become a target of what critics say is the -- >> do the protesters have a point? >> fairly or unfairly the commuter buses have become a symbol of inequality, a symbol of our affordability crisis and this is a very real phenomenon that many americans around the country are really experiencing.

>> reporter: some city leaders say the anger is misguided pointing out the buses take thousands of cars off the road every day and the tech industry's positive ripple throughout the economy. >> and for every one technology and innovation job we've had we've had three or four other jobs in other sectors, whether it be hotel and restaurant worker or tourism or retail that have been helping our economy and that is a good thing. >> reporter: but for those squeezed out of housing it's a tough sale. and for them, this has become a new way to voice anger. >> all right, we're not done yet. coming up on a brand new "your money" at 2:00 p.m. eastern, i've got the store roy behind high-flying legend and savvy business mogul sean white. plus, some of the biggest companies behind the olympics, not feeling the love from their customers. well, what do you get for $100 million? social media grief. i'll explain at 2:00 eastern. coming up at the top of the hour in the "cnn newsroom" veteran broadcast journalist cokie

roberts out with her very first children's book all about the nation's first ladies. which one does she compare to hillary clinton? that, plus her take on the chris christie bridge scandal and more. join victor blackwell and christi paul right here on cnn. a warning about the winter games. the state department tissues a new travel alert amid fresh fears of terror in sochi and tells american, don't expect pry vas privacy while you're there. the filmmaker defends his innocence against molestation allegations saying mia farrow is the one to blame. cokie roberts joins us live on a new book about first ladies in a book and whether she will have a first ge