tv Your Money CNN March 8, 2014 11:00am-11:31am PST
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homeless man that drove him to tears of joy. this story will make your day, too, and maybe you need have hankies handy. i'm fredricka whitfield. "your money" starts right now. -- captions by vitac -- www.vitac.com elephants, bulls and bears, oh my. this is "your money." i'm christine romans. the elephant in the room, it's a russian bear. tomorrow marks five years since stocks hit financial crisis lows. a quick check of your 401(k) let's you know where we've come from there. can the record continue in standing in the way, a slow jobs recovery. europe on the verge of a trade war. america bowing to impose costs on russia for its intervention in ukraine and yet another week, another record for the s&p. investors clearly saying they don't believe russian president vladimir putin will retaliate against u.s. sanctions. richard quest, host of "quest news business" and ken rogoff is
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with us, a friend of the show. guys' russia's stock market took a big hit and so did its currency. a tough start for the ruble. richard, basically the obama betting booten got a taftaste o what's to come. maybe the market will do what -- >> i don't think the market as such. i think the external pressure will give pause for thought, but here's the point. the president -- president putin knew exactly what he was doing, and he knew exactly what the reaction would be. the best form of pressure will come, yes, with the market. yes, with threats to the russian economy, but when russian olegogues, when they say you're causing us trouble and we're now worried. >> incredible. people saying when the stock
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market got hit in russia, how could putin keep going forward when he's hurting, maybe himself. >> especially -- >> he's worth less today, i would bet than he was last week. ken, let me ask you this. so american investors don't seem to be concerned about russia. american investors don't seem to be worried about slow jobs growth. they're growing, not bangbusters. record high for stocks. what's going so right here? >> well, i think first of all on russia, investors just think they'll come to their senses and work something out. >> that putin can't be that -- >> well, he can be, but that they're work out some sort of deal and it won't destabilize things. i mean tshs could. it could. i think as far as growth, there's been this weather, and frankly the latest job numbers were a little better than i guessed. >> so if we hadn't been in the polar vortex, if it hadn't settled on top of us, maybe we'd have had a really good jobs number? >> maybe. we don't know. we won't know until the spring.
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the last few months were not great but it was betterthan people expected, but the stock market was going up before that. europe's been stronger. a higher prediction for their growth than we thought. there's been stability in the global economy and the weather's bad, but i don't think it's undermining. >> you're just coming out of recession. >> this is what is happening. we are talking on the edge of the cliff, and the problem with the russian cries, and the ukraine crisis is that this is exactly the sort of incident, crisis. you have an accident. somebody fires something they shouldn't have. >> that's right. the marge sn too -- >> you fall over. that's what's really worrying about this. >> absolutely. because it's not like we have a lot of padding, if something goes wrong. >> let's talk about the energy side of this ewags. because american officials on a call were asked clearly, what about the energy implications if russia decides to either withhold natural gas or oil
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supplies? russia is a huge supplier of energy. talk to us ow russia is the gateway to energy to europe and what could -- not a lot of margin for error on that either. >> it's very simple. you have russia. you have rue crane. look at map. makes it clear. you have russia, western europe, eastern europe, ukraine and the line goes through ukraine, and russia can turn off gas -- turn off the caps that will not only hit ukraine because of transpayments, but also western europe, and some countries, finland, belarus, germany, all the way down -- they can get up to 60%, 70%, 80% of their gas from russia. so, yes, there is a -- but the other side, of course, is russia switches off the taps. >> and they don't get paid. >> they don't get money and russia's economy is not in a particular healthy shape at moment. >> they're not, either. they depend tremendously on this money. so it's sort of mutual
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deterrence. >> and senior administrators said it's fragile. russia has already felt the cost of sanctions and an official making it clear they've worked ten years with the europeans to try to figure how to diversify energy fellows and will continue to do so. does that mean our energy? >> well, eventually our energy, but they are very vulnerable in europe making them reluctant to be quite as aggressive on this as we are. as, richard, you said, they get all their money from the russians that aren't in a position to just stop their bank roll going, either. thy this isn't just about crimea or ukraine, but where will we draw a line, where will there be a bright red line? we could lose from peace dividend over this. >> that's why this is just the beginning of the secret i. have a dirty little secret to tell you. the united states doesn't have natural gas that you can export to europe.
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>> oh, but, richard, that's down the line. down the line. richard quest, thank you so much. nice to see you, ken, as well. for more stories that matter to ym give me 60 seconds on the clock on "your money." it's "money time." hold the clock. chipotle says global warming may raise ingredient prices and that could force the chain to cut back on salsa and guacamole. the great american gun grab rolls on. smith & wesson says handgun sales jumped 30% last quarter, but the fdi said total sales fallen from their peak last year. new target for bankers your bank's atm. 95% of atms in the u.s. run windows xp and mike soft is ill canning tech noor. april 8th, if banks don't update soon, atms could become a hot spot for criminals. siri wants a ride. a new iphone platform with a text screen and buttons on the steering wheel that activate
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siri, apple the voice command system, plus texts, apple maps and music streaming. s.a.t. gets a re-do, back to the 1600 point scale. no calculator on parts of the math exam, and free prep from the con academy. the essay section, that's now optional. [ buzzer ] >> there a lot of good, no, great, things in these s.a.t. changes but the free prep test services from the con academy, a nod to this fact and it is a fact. the richer the family, the better a student does on the s.a.t. this chart of 2013 s.a.t. scores compared with family incomes yet another powerful example that this is one america, but two economies. it's the house of the future and the future is now. step inside the home that protects your kids, cooks your breakfast and makes sure you are not stuck in traffic. your exclusive look at a home that would make george jetson jealous. next. in 1953. afghanistan, in 2009. orbiting the moon in 1971.
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the next big thing in the digital world, if you blink you may miss it. making sure you don't miss a thing. an exclusive look inside. >> welcome to the home of the future. >> reporter: from the moment you step out of bed -- ♪ fly me to the moon >> reporter: in this house, everything is connected by smartphone. it's owned by tech entrepreneur matt, an investor in smart things. the company responsible for all the technology. >> your home is smart. what can it do? how does it know you're awake? >> it can sense it based on motion or you can, of course, tell it good morning, by hitting the button and you can see -- the house senses it. the lights are coming on in the bedroom. >> reporter: walk in to the kitchen. >> brewing the coffee for you. >> and the coffee's actually brewing behind me? >> coffee's actually brewing now. >> reporter: how's your commute? your kitchen lamp will tell you. green means no traffic. >> you put in your sort of
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commute pattern and it checks the traffic, and then it will tell this lamp to change colors based on the timing of your commute. >> reporter: your home can even tell you the forecast. just open the door. >> the current temperature is 53 degrees. >> reporter: smart things makes use of a hub that's kind of like a router. once installed you can download different apps to control different devices. >> your home becomes programmable in the same way you can put apps on your phone, you can install an app to what kind of coffee you want brewed in the morning. >> reporter: also used to keep your kids safe. >> the chemical cabinet has been opened. >> reporter: a cool one. your connected home plays your music of choice when you step inside. ♪ let me play among the starred ♪ >> reporter: the part of a larger trend of technology moving beyond your smartphone. >> it's almost like when you look at the app you're texting with your home? >> yeah. we wanted to make very intuitive. to make it easy, people are used to texting to each other and we
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give your home a voice. we call it hello home, and you can say good morning and good night and have it react around you. >> reporter: good night, home. >> christine, seems so futuristic. you can see the technology does actually in some folks' homes. in the next years we might see more and more. it's just becoming a little bit more accessible. christine? >> thanks, lori. really cool. it may seem nice to know when you're home, your route to work and the traffic on that route, but is it just more information we're giving away? another crack in the wall of privacy? i want to bring in a computer science pioneer known as the father of virtual reality and the author of "who owns the futch e." jerry, interesting about you, i'm about to give all your dark secrets away, started college at 14. worked along goats, and midwives, as a thank you, one of the parents gave you a car. you drove it right to silicon valley. you're a musician. wants to open for bob dylan.
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where i leshed all this? on the internet. where all of our privacy is gone. this is what we really want to talk about. you said last year will be remembered as a tragic year in our digital lives. made big strides in 3d. you say spied on, tricked and the only way to persuade people to voluntarily accept the loss of freedom is by making it look like a great bargain at first. have we paid too high a price for all of this stuff? >> well, so far we have, but that doesn't mean we can't do better. i mean, the deal we've made is, in exchange for convenience, we'll give you aup all out of ye our information, get the convenience for free. the problem with that is it's not real capitalism. it's not a real market, because the other people taking our data, the only way they can make money for it, since we're not paying them, letting third parties pay to manipulate us.
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we end up getting certain loan offers, certain bargain offers. >> they say they're tailoring it for us, making our lives easy and more efficient? >> yeah, but over time the companies -- it's not just companies. it's intelligence agencies. it's banks. whoever has the biggest computer to take in all this free data can calculate slight advantages for themselves so they take less risk, others take more and that compounds like compound interest and they gradually get wealth like crazy and gradually opportunity fades away. convenience is not the same as wealth. it's not the same thing as opportunity. it's great, but you can't retire on it. >> do you think people know they are this commodity? that american consumers, americans in general, have become this commodity that other people are trying to sell to us, but also to try to use us as data points so they can sell to others? and government, too. government using us as a commodity. watching us to see who -- you
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know what i mean? we are just the product. >> you know what, we're talking about it so far from the point of view of an ordinary person who doesn't realize when they get the benefit of free services, they're also paying the price of reduced lifetime opportunity. they don't get there's a trade-off. they don't get that it comes around indirectly, but that when you choose free stuff, you're actually lessening your own job prospects. even it comes around through a whole cycle in the economy. >> so many look at the security issues from the nsa perspective, and that's one story they talk about, and then they don't seem to think it's connected with the other story, which is look at this great new gadget, new phone, new technology. but this is the same trend just in different applications? >> there's nothing wrong with the gadgets. i love gadgets. i make them. the problem is where the lotus of control. if you give someone else the control. >> and we have. >> we have. >> it will change it.
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there are a lot of ideas how to. i don't want us to jump slew an idea, but one might work, incredibly simple. just pay people for their data. it's so simple. sometimes it strikes people as screwed up. if you're getting paid it means you'll pay. means you're part of an economy instead of an informal economy of reputation and barter. if you pay and get paid you get economic expansion and more people do well. >> so nice to meet you. i could talk to you 25 more minutes. appreciate you coming in. >> thanks for having me on. coming up, a rapidly growing market expected to hit $2.3 billion in sales. quadruple by 2020. why don't banks want anything to do with it? next. create your own perfect plate of pasta at olive garden, with our new cucina mia menu, for just $9.99. choose the homemade sauce that tempts you the most. like our addictively creamy garlic asiago, devilishly spicy diavolo or garden-fresh primavera with roasted vegetables.
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sales are surging but banks don't want to touch this business. seeds, soil, grow lights, blowers. the raw materials to grow pot, but to grow the industry, it takes the oxygen provided by bank accounts, loan, lines of credit. a problem retail marijuana store ownsers are trying to work around t. would be nice if the banks would work with us. >> we've got safes. we don't keep it here. >> reporter: so far the banks just say no. from coast to coast, bank and credit union trade groups advising member banks to steer clear of the marijuana business. the president of the colorado bankers association says, there's only one remedy. >> it literally is going to take an act of congress to address this. >> reporter: the obama administration recently gave the banks a green light for how to do business with legal marijuana companies. but the banks say, that guidance doesn't go far enough. >> this light is redder than ever. it actually moved us backwards
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in terms of banks being able to accommodate the marijuana businesses. >> reporter: here's why -- first, recreational pot is legal in colorado and washington. medical marijuana in 20 states. and washington, d.c. but under federal law, marijuana's no different than hard-core illegal drugs like heroin and ecstasy. second, those new rules from the obama administration say any bank doing business with a marijuana dispensary must prove the pot never makes it into the hands of children, is never trafficked to another state. is not smoked on federal property, and has absolutely no ties to the drug cartels, among other things. >> while we don't really care to be doing the government's work for them, the bottom line is, we can't comply with that. there are simply -- there's simply no way that a bank can assert that marijuana isn't going to be used in certain fashion. >> reporter: powerful tool of capitalism unavailable to the legal pot industry, until the federal law changes.
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what's the legal risk for a bank, allowing a pot dispensary to open up a checking account, get a line of credit, you know, a loan? >> the risk is, if they're a federal bank, they could lose their charter. they could also be prosecuted under a variety of federal regulations that have to do with money laundering. they have to follow these regulations very carefully, and there's a great risk with an all-cash business like a marijuana business. >> reporter: all cash, and nowhere to put it, an increasing safety risk and quandary even the attorney general has noted. >> huge amounts of cash, substantial amounts of cash, kind of lying around with no place for it to be. appropriately deposited. that's something that would worry me just from a law enforcement perspective. >> reporter: thousands of stores. millions of plants. more than $2 billion in sales, but not a bank account to put it in. so who's going to take the risk? smaller local banks? credit unions maybe? the national cannabis industry association tell us us a few
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binks in colorado are exploring the idea. insiders say, now, some dispensaries are getting bank accounts, but they're not telling anyone where, but most banks, they just say, no. the mystery will soon be solved on hbo's "true detective" but the real mystery, how its star went from dazed and confused, to romantic comedy king, to best actor. the business of being matthew mcconaughey, next. i know i'm making the right choice. online or on the phone, we help you hire right the first time. with honest reviews on over 720 local services. keeping up with these two is more than a full time job, and i don't have time for unreliable companies. angie's list definitely saves me time and money. for over 18 years we've helped people take care of the things that matter most. join today.
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of sorts. call it a mcconnaissance, getting more attention and wearing more clothes. first in "dazed and confused." >> that's what i love about these high school girls, man. i get older, they stay the same age. >> reporter: he acted in a wide range of movies in the '90s. >> welcome -- to my world. >> reporter: and hit it big with the legal drama "a time to kill." >> right now. >> reporter: in the 2000s, he became the king of row manti comedy. "how to lose a guy in ten days"ened" failure to launch." >> is that a problem. >> reporter: some say he might be the best actor around showing off skills in edgy and challenging roles in films like "magic mike," and "wolf of wall street ". and with "dallas buyers club" mcconaughey won his first oscar. >> that ain't nothing out there that can kill ron woodruff in 30
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days. >> reporter: altogether his movies brought in more than $2 billion worldwide and he's worth an estimated $75 million. now he's taking on tv, drawing a lot of attention for his role in hbo's "true detective." >> i ain't stupid. >> reporter: mcconaughey is taking endorsements to the left level starring in this dolce and gabbana ad and pushing his own line of clothes named after his motto. >> you just got to keep living, man. >> reporter: part of the clothing sales go to his just keep living foundation, a nonprofit pushing high schoolers to lead healthy, active lives. he's also an advocate for animals rescues dozens of stranded pets after hurricane katrina. >> come on. >> reporter: later this year the leading man will star in the christopher nolan film "interstellar". he says his career is just heating up. >> i'm 12i8 on the approach. >> reporter: the business of being matthew mcconaughey is -- >> all right, all right, all right. >> tomorrow night's episode will
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be mcconaughey's last. he says if there's a season two, whoent be in it. thanks for spending your saturday smart with us on "your money." have a great weekend. "cnn newsroom" starts right now. \s hello, everyone. i'm fredricka whitfield. the top stories we're following in the "cnn newsroom." rescue crews are scouring the south china sea right now looking for any signs of malaysia airlines flight 370 after the jetliner vanished about 26 hours ago. this is new video of the search operations. the biggest clue to the plane's whereabouts. traces of oil in waters over the search area spotted by a vietnamese aircraft. officials say the oil slicks are between six and nine miles long. the bol eing 777
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