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tv   Your Money  CNN  March 15, 2014 6:30am-7:01am PDT

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sometimes the crash site is never found. that's the first line of an article at cnn.com that grabbed my attention this week as the flight 370 mystery unfolded. sylvia, you say the search for the 777 is like searching for a 500,000 pound needle in a haystack. take a look at this. the flight path may have been extended north to kazakhstan and as far south as the southern indian ocean. are chances of finding this plane diminishing by the hour? >> it would seem so. experts i talked to said you
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hope in an investigation like this, the search area narrows. in this, the search area is expanding as the information comes in. that is troubling. >> let's bring in michael kaye. he has flown many tours of duty in kosovo and iraq. you investigated crashes. what are you discerning? >> michael, with 20 years of experience, you have 48 ships and 14 countries still haven't found this. this is a perplexing situation. what i would say about the previous comments and sylvia is correct in the area that is expanding and making it more difficult than zoning in on the problem. one counter of the theory is north or south is the problem of the aircraft going into another sovereign territory. you need to do that with a flight plan and communicate with the sovereign services. most sovereign territories have
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what is called a qra. quick reaction alert. there are defense fighters on the ground to launch to inspect any aircraft that doesn't respond to the transponder. it responds when it is interrogated. if it goes north to kazakhstan, there would be an alert to a sovereign territory, india, kazakhstan, the alerted qra fighters would have seen the blip on the radar. >> that doesn't appear to have taken place. >> absolutely not. it is probably more gone into a vast expansive ocean area where the interrogations or qras. >> sylvia, what military installations have had to be flown over as far north as kazakhstan? >> it seems to be the case when you are flying over any sovereign country. you will know what is flying over them for security purposes. i don't think we had any indication that anybody has reported anything like that.
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>> michael, i'm sure you are familiar with the malaysian prime minister had to say overnight and now the reference to deliberate activity in the cockpit. does it sound to you, including the times report, that the 777 reached an altitude of 45,000 feet that this was manned or unmanned. >> it is impossible to tell. i don't think we can take anything off the table. we have to consider the mechanical aspects and sabotage and hijack. it is looking more like the latter two given the evidence. you have four communication methods. emergency locator transmitters in the tail setoff by seawater. you have two distress signals. also victor on 121.5. you have the a-cars. you have four methods and
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transponders of letting people know that there is a problem on board. >> still it is not enough. i delivered a commentary at the outset. it is hard for me as a non-pilot to come to terms with this because of the way i rely on technology on a day-to-day basis. why aren't they using the functions we get by day-to-day with? >> it goes back to sylvia's point. you are looking at the search area. those detection devices because what goes well in almost 100% of cases because people know and have a general idea of the crash site because of the flight plan and the rest of it. now that the search area is just expanded, you know, quadruple, it makes it difficult to pick up. if you look at the bottom of the ocean 3,000 miles away from the search point, it will be difficult to pick up.
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there should not be a knee-jerk reaction and reassess the pay the locator beacons are positioned. there are secondary systems. this is a perplexing case. >> sylvia, you spoke of a 1972 flight. remind us. >> this was a flight from anchorage, alaska to juneau. it was carrying two u.s. congressmen. it took off. the plane was planning to operate under visual flight rules. the weather was not conducive for that. the pilot took off and made brief contact with air traffic control. it continued on its way. it was a cessna. a lot smaller than a 777. the plane never arrived in anchorage. or in juneau. >> it was never found. >> it was never found. they basically search area was
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325,000 square miles. they searched for 39 days and like i said, there were two u.s. congressmen on board. >> michael kay, quick comment to that. >> we have to be careful not to compare apples with pears. this is a small aircraft. it would have been flying a lot lower and flying in mountain areas. it may not have been picked up on radar. a lot of differences with the small aircraft and training of the crew and simulator. >> michael kay, thank you. sylvia, thank you. conspiracy they' spispiracy. it is hard to take them seriously or is it? you are h! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants, and 9 grams of protein. [ bottle ] ensure®. nutrition in charge™.
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what do we really know of the fate of malaysia airline flight 370? conventional wisdom says it crashed after the suspected hijacking. some are confusing this with an episode of "lost" or think the ending is akin to the movie "capricorn 1" which suggests we never landed on the moon. chris cesar has been cataloging some of the craziness. what are some of the conspiracy theories that are in circulation? >> well, i heard everything from the chinese kidnapped employees
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of the company that was involved with the nsa to a miniature black hole that swallowed the plane. it is a vast range of ideas. >> you know what occurred to me after i read your piece, chris, i can't think of an example where there was an enormous conspiracy theory that was proven correct. despite the inability to look at anything historically, see, that was one that panned out, people still gravitate toward these things. >> yeah, that's true. i think there is a tendency for people to want answers. when they see or are confronted with a big mystery, they are just trying to figure something out and some people get wrapped up in hair-brained ideas. >> i tried to figure out why that is the case. yesterday, i did an interview on radio with dr. nicholas defanzo.
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i said to him, why do we gravitate toward these things? he said it is a twofold reason. we are social beings and we have this innate desire to put things together. at work at the water cooler or church, we are trying to make sense of a cataclysmic event like this. >> absolutely. we have the internet and you can go out and reinforce whatever ideas we have. that makes sense to me. >> my hunch is because of the observation of mine they don't seem to pan out, but movies and books play a significant role. i made reference to "lost" or "capricorn 1" which was a hell of a movie back in the '70s. people are confused. maybe they are remembering
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"lost" and somehow they are confusing reality with fiction. >> a couple of these conspiracy theories outright reference movies. "oceans 11." i saw one theory where they believed the plane was taking a sea landing and few scientists onboard were kidnapped by chinese authorities or iranian authorities or north korean authorities. imagination plays a large role. >> my hope is we get to the bottom of this and figure out what went on here. if and when we do, i don't think it will satisfy the folks that you wrote in the globe about with all of those different theories. it will never been enough for many of them. >> no, i agree. i actually got a phone call from someone yesterday that took objection to the article. he was telling me that he thought it was obvious that the american government took the plane down and kidnapped these
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people and try as you might to argue with them, they have their own conclusions and they don't want to hear any counter fact arguments. >> chris caesar, thank you for being here. it is a dirty secret in new york. the fat cats still think greed is good. now a new book is exposing a house of outrageous fortune. create a three course italian dinner with olive garden's new cucina mia for just $9.99. first, choose unlimited soup or salad. then create your own pasta with one of five homemade sauces. and finish with dessert. three courses, $9.99. at olive garden. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr.
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♪ if sherman mccoy lived in manhattan, he would reside at 15 central park west. the tom wolf novel "bonfire of the vanities." wolf's gift was summing up. now michael gross has done likewise by taking us inside the most powerful address in the world. the book is called "the house of outrageous fortune." it concerns one manhattan address that has housed the likes of lloyd fine and denzel
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washington and a-rod and sting and jeff gordon. one sold for $88 million. 15 cpw writes, gross is the most successful, insanely expensive tie con-stuffed real estate development of the 21st century. the book opens with a bidding war between two titans. >> icahan was the backer. he was the aging lion of the finance and dan is the younger breed of cat. icahan wanted two apartments on the 39th floor. penthouses. he did not want to pay the price. $45 million. lobe came in and paid the price. icahan went ballistic.
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>> are they both new money? >> i like to see it old money versus new money. i think it represents two points of view and two kinds of wealth. >> what was the tipping point that made this the "it" building where people at that level wanted to live? >> a whistle came off and they came like dogs with a pack wanting these apartments. of course, there was a masterful marketing campaign to make sure the world knew this was happening. >> if you and i lived in steerage over there, if we paid only 1.7 million for our units do we get to hang with sting? do we get to hang with denzel? do they want anything to do with us? >> you have to take a separate elevator in the back of the building but you share the restaurant, the lobby, so, yeah, you get to hang with them. >> i was thinking of rodney king, oddly enough. can't we all just get along? what's interesting is will is such an ethnic mix in this building and there are so many clusters in this building and
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everybody seemingly does get along. >> i call them the tribes of 15 cpw. the largest tribe of the alternative investment managers. but there are foreign tribes and religious tribes and economic tribes, tech guys, bankers. and my favorite is the fact that we have arabs and israelis living in peace somewhere in the world. >> given the concentration of wealth and power in this building, security must be a concern. >> it is. especially during the great recession when lloyd blankfein and sandy needed their own security details and there were elaborate procedures. people in the lobby, for instance, was not allowed to address lloyd blankfein by name. their whisked through the garage to get out. there was an occupy visual across the straight, occupy gold machine sacks because lloyd blankfein lives in a duplex. >> you made me wait until the
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final chapter to hear about a-rod and hookers. >> the boy had a very good time. favorite story, two hookers coming down in the elevator while cameron diaz was going up. go, a-rod. >> if i live in this building at a time of the holidays, how much am i ponying up? >> it depends. you know, the average staff worker walks away with about $22,000. some of them make up -- >> in tips? >> in tips, cash, by the way. some of them make up to 100,000. the super god knows he gets paid $600,000 a year. >> the risk that you run if you're not -- somebody gave 90 grand, right? >> yeah. >> sanford weil? >> one year and then cut it in half the next year and they all got really grumpy. >> they entitled to the 90 grand. if you don't pony up, you run the risk. a-rod, he was a tenant. he left that apartment in better condition than he found it but they didn't like him. >> that's true. the realtor liked him but the
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staff called him a douc hhe. >> that's what did him in. what's stunning at your book, michael gross, those who have since sold the units, they are making a fortune. >> tripled in value in just a few years. astonishing. >> one of the -- you know, now that i spend time in new york city i can't help because of you walking by and looking up. and i see that a lot of the lights are off. how do you expect $88 million for a condo and not sleep there? >> when you have five houses and a private jet and a separate wardrobe at every house you don't need to be anywhere very long. they come here for the season, when it's too hot where they live. there's an arab prince who only comes during summertime in his native country. >> and the $88 million unit, fair to say that was a russian olagark who bought it for his 22-year-old college student daughter. >> apparently taking either a
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telephone or computer extension course. i look up every night those lights are never on. >> amazing. the book is called "house of outrageous fortune." you've got a niche here in terms of writing about pieces of real estate and the stories that are lying behind the walls. congratulations. >> thank you. it's a great window into lives. >> it is. one last thing, it's about that interview between two ferns. >> i have to know, what is it like to be the last black president? >> seriously. what is it like to be the last time you ever talk to a president? [ fishing rod casting line, marching band playing ] [ male announcer ] the rhythm of life. [ whistle blowing ] where do you hear that beat? campbell's healthy request soup lets you hear it in your heart. [ basketball bouncing ] heart healthy. [ m'm... ] great taste. [ tapping ] sounds good. campbell's healthy request. m'm! m'm! good.®
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i have to know, what is it like to be the last black president? >> seriously? what is it like to be the last time you ever talk to a
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president? >> it must stink though that you can't run three times. >> actually, i think it's a good idea. you know, if i ran a third time it would be sort of like doing a third "hangover" movie. it didn't work out very well, did it? >> one last thing. this was a real busy "newsweek." the missing malaysian flight, unrest in an upcoming referendum in crimea and smack between the senate and cia. among the headlines there was only one to cause our 26-year-old daughter to e-mail me with a subcheck line marked, have you seen this? what she wanted to make sure i had seen was the president's interview on "between two ferns" at the website funny or die. >> have you heard of the affordable care act? >> i heard about that. that's the thing that doesn't work. how do you get the guy that created it to make your website? >> healthcare.gov works great now. >> the president's appearance was part of the final push for healthcare.gov as we approach the march 31st deadline for 2014
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enrollees. this, too, became a matter of controversy with some questioning whether the appearance was beneath the dignity of the office. such concerns are nothing new. richard nixon faced them after appearing on "laugh in" and richard clinton for playing sacks on arsenio hall. abe lincoln would never have gone on "funny or die." that's true but that's best also because news then was disseminated by individually printed newspapers delivered on horseback. a new nuanced approach is now the hallmark of any advertising campaign. me? i thought the jokes on "between two ferns" were lame. and i say, it doesn't matter if 4 million sign up, it's who those 4 million are. the economic viability of the affordable care act is dependent upon having a sufficient number of young invincibles enrolled to offset those who have pre-existing conditions. that was the target audience on "between two ferns" not me and not bill o'reilly. no, the intended audience was 26-year-old kaitlyn.
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and judging from her e-mail, the president hit the target. thanks for watching. please come back next saturday. it is good to see you. we're always grateful for your company. good saturday to you. i'm christi paul. >> i'm victor blackwell. 10:00 here on the east coast. you're in the "cnn newsroom." ♪ if you're just waking up this morn and you thought when you went to bed last night you knew the theirive of this missing airlines flight 370 it has taken a dramatic turn overnight. we just learned in the last hour that the homes of both the captain and now a