i'm dr. sean danesmond. i thought i'd help, take some of the suffering these women grow try away from them to focus on their babies. it's emotionally draining, and the way the economy now is, people are suffering. >> i didn't think this was going to be -- she's going to be okay. >> they need ex-are money for diapers, clothing, medical expenses. rent. these are families in a time of crisis now need extra help. that's what we're about. >> they helped with our mortgage, gas. >> something as simple as gas cards to be able to make to the nic-u every day helped tremendously. >> i can't think of any other time in one of life where you need someone to be there for you. >> you're good? get you strong right now. >> a very special role in life. i never thought i'd be here, d and, thank god i'm having a great time. >> so in less than six months,

the doctor has, and his organization, rather, assisted 80 families. to nominate someone you think is changing the world go to cnn.com/heroes. i'm fredricka whitfield. thanks for being with us this hour. "your $$$$$" starts right now. if you have a bank account, 401(k), or pulse, you could rewrite the rules for wall street. welcome to "your $$$$$." i'm ali velshi. >> and i'm christine romans at goldman-sachs, prevent being another meltdown, every angle covered. first a look at the president's plan. what he wants to accomplish with new rooms for the road. new rules for too big to fail to prevent the bailouts that americans have come to despise. he wants limits on bank risktaking and a more transparent dlivtive market. did you know how big it is and there are no light shining on corners of this big, big

training market. and stronger consumer protection for everything, ali, from your credit cards to your mortgage to those complicated derivatives contracts that could affect your life. the weekend after president obama brought his case to wall street association many of you still have many questions starting with, what the heck is a derivative? here many the president's explanation. >> they weren't fully aware of the massive bets that were being placed. that's what led warren buffett to describe derivatives bought and sold with little oversight and financial weapons of mass destruction. >> now i would be willing to bet most people out there, christine, know more about derivatives than they think. in the financial sense they're bets. they're bets on the future price of this or that, of corn or oil or the risk of something happening. like a hurricane, for instance. why am i telling you this? reckless trading in derivatives tied to the mortgage crisis helped turn a downturn in the u.s. housing market into a

full-blown ka as it photography from which we're still roving. aig, bear stearns, synonymous with the meltdown and a good chance derivatives are at the core of it. >> ali's not exaggerating this by a conservative simt of the u.s. treasury, some $600 trillion worth of derivatives held by invests as we speak subpoena look how that compares with the entire growth of the global economy. the output for the world, gdp, is only $60 trillion. only $60 trillion. ten times the global economy. >> i have to say, christine, i don't know if had the same experience, on my facebook page, a lot of comments from people troubled by the idea of the secret drivties and worried we're giving up a drerivatives bad name. >> no. >> bring in smoob know as great deal. neil, deputy treasury secretary, the treasury department. very involved in this move. neil, tell us what this new legislation, that's passed the house, the senate is working on, that president and you folks at

treasury want to pass? what is that going to do about the world of derivative, the bad part that nearly brought our economy to its knees? >> first, it's good to be here. derivatives are, been a very big loophole in the financial services to today, we think it's really important for them to be brought with the regulatory structure, to make sure that there's transparency in the markets so that people know what prices are, regulators know what's going on. our world of policing these important instruments. as you say, used properly play a very important role in the management of risk with business ace cross the country. but it needs to be done transapparently where people see what the prices are, what's going on. allow us to manage the risk that these instruments can create if not used properly. that's fundamentally what this legislation would do with respect to derivatives. >> neal, let me ask you this. a lot of folks focused on what, sec charges against

goldman-sachs. allegations only. think about this. a hedge fund manager, john paulson, betting against the housing market. saying mortgages are going to be unpaid. that turned out to be a good bet. this regulation that we're proposing actually would have nothing to do with what goldman has alleged to have done? the rules of their alleged being broken? >> i want to stay away, ali, from the particulars of an sec enforcement action. the sec is an independent agency and it's pursuing this manner independently and frankly we at the treasury and the executive branch don't have anything to do with it's i think what is the case, however, is that with respect to all derivative transactions, this legislation would make sure they're brought out into the open. that people understand what exactly took place. that people understand what the prices were and can understand how that might affect the broader marketplace. we think that's a critical aspect of this legislation that is go for the financial system.

it's good for people who use derivatives and good for the public in general to have confidence that this important part of our financial system is well protected, and well looked after. >> can i ask a simple question, why you think year bet geting it right this time? throughout history we've tended to fix these fires after they've burned themselves out or after the problem has -- you know what i marine? we fix after the fact. how do we know what we're doing today is going to be the right fix to prevent this from happening again? >> well, i think, christine, an important part of this legislation is make sure the loopholes that existed for too long, things that weren't part of the regulatory framework for which there weren't rules of 9 road are brought with the system, and then have regulators have the capacity to make sure that they are looking around corners. obviously, the world will change, but we think that it's important that everything be brought with the framework, that we have full transparency,

strong rules that will protect consumers and also investors, that make sure that financial institutions have adequate capital and other kinds of protections in place to make sure that the system is well buffered in case there are issues that come along that perhaps we haven't planned for. so that the system has the capacity, the about sorptive cast to withstand the kinds of shock that happen from time to time. >> neal good to see pup thank you for joining us and shedding light on this. the deputy treasury secretary. president obama says he wants this, what he call as set of updated common sense rules to ensure accountability on wall street and protection for consumers. is his plan going to achieve that? i think christine, you were sort of getting into that. let's go to peter, university of maryland business professor, and douglas holtz eken, president of the american action forum. gentlemen, thanks for being with us. peter, you and i talked about

thiss with christine this week. will this legislation that the president's pushing achieve what you -- what his goal is? on creating a consumer protection and a common sense updated set of regulations? >> i don't believe that they will add quickly update the regulations because they don't deal with some of the most fundamental problems. with regard to too big to fail, it isn't clear how they'll bring the institutions down to size. we already have resolution authorities for the fdic to deal with citigroup. it's just too big to sell off its pieces. when that bank fails, they basically had to bail it out. now they'll have a $50 billion bailout fund. heck. citigroup alone cost that much, and then a guarantee, $325 billion of its loan. we don't know what that really mean. never mind the other institutions. i don't think we've gotten our arms around this problem. s displaced. other things more fundamental that need to be addressed u. mentioned derivatives.

i want to talk about something the former president bill clinton said over the past week to another -- did you get bad advice from larry and paul when you were president of the united states and was it a mistake not to regulate derivative 15 years ago? this is what he said. >> now, on derivatives, yeah i think they were wrong and i was wrong to take it, because the argument on derivatives was that these thing, expensive and sophisticated, and only a handful of investors will buy them. >> doug, should we have been regulating derivative as long time ago? was that a mistake? >> there's not only a case made for the government having interest in having exchanges in clearinghouses a case made that the business community should want it as well. one 69 things that will happen with derivative, particularly the standardized derivatives, traded on exchanges is you will get better clarity on prices. better competition, and the cost of hedging risks could actually

go down nap would be a tremendous benefit to everyone. >> let me ask you this, peter. you said you think the focus on derivatives is misplace pd. one of the riesens we're focusing on derivatives when there are other parts of the legislation the president is focussed on, the others are agreed upon. this is the contentious one, the one folks are objecting to. what should you focus be on, if not derivative, peter? >> requiring to write a derivative that is, aig had very little money available. increasing capital requirements won't cover the problem. think about it. $600 trillion in derivatives, and in $60 trillion global economy. >> we're talking about the bets that are ten times the size of the global economy, or however you want to measure it. how do you -- >> 500 times the size of the u.s. economy. you just can't. >> what we can agree on is that the derivatives are not the only

problem. mayor bloomberg this week, of course, an advocate for new york city, where there's profit from these thing, but he says, remember, derivatives are downstream from the problem, and the problems can go all the way up to. >> that's my point. >> to shady mortgages being written. go all the way back to the beginning of the crisis. bring it full circle for us. we got a lot of problems that caused this altogether. do we fix all of them in this legislation? >> i think we make great steps forward but i agree with peter that the legislation in the end doesn't change the fact that we have banks that are extremely large. that no one believes they can be unwound quickly in a crisis. the key, avoid a future crisis by doing a better job on mortgage origination, that's where the problem started. doing a better job on transparency and derivatives. what happened in the crisis was not somehow the derivatives market failed. what happened was, people got scared the people trading with were broke and everyone panicked.

having these things on exchanges, having collateral behind them will give people confidence their parties are sound nap would mitigate the fallout from the kind of problems we had this time around. >> great to talk to you's thanks for being with us. douglas, president of the american actions forum and peter the president, professor, sorry, made you the president of the university of maryland. >> thank you. i'll make awe reference. >> at the university of maryland school of business. goldman-sachs is in hot seat, of course, after that sec fraud charge. just how strong is the sec's case? where does goldman take it from here? we'll discuss that when we come back. [ woman ] can't anything help these itchy allergy eyes?

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scrutiny. the challenge of goldman's reputation yet. my favorite player is someone who calls himself fabulous fab. >> you know, ali, we'll meet him on tuesday. he's going to testify on tuesday and we're going to meet the fabulous fab trader who according to those sec documents is the one who said, the wreckage of the market, one survivor. it will be me. the guy who made all the complex instruments. a lot of interesting players in all of this. including number 45 on the forbes billionaire list. goldman-sachs itself. the ceo of goldman-sachs and a lot of interesting folks right down to the "wall street journal" this week tracked down the homeowners who defaulted on mortgages that caused all of this stuff. right down to the homeowners. we're go down to the basics on this story. where it goes from here. contribute be editor of rollingstone and from reuter, talk about the story, guys. every day we're learning more about it.

how big of trouble is goldman zachs s zacs? >> goldman-sachs is not a fly-by-night operation. these were the best, the brightest, the smartest. actually goldman-sachs is a big wall street firm, the one that navigated the financial crisis best. they are the big wall street firms actually figured out subprime was going rotten. the reputational damage is more important even than the charges, and i heard from a lot of people on wall street, people saying, you know, goldman used to be historically a firm that prided itself on putting its clients first, and the tricky thing for goldman now is, are people going to believe that? are people going to say, you know what? we think goldman is too much focused on the house. >> was it last summer you wrote a scathing article in "rollingstone" about goldman-sachs, accusing them of doing all sorts of thing.

is that -- is what has happened, these allegations does that sort of underscore what you wrote or is this something entirely different from what you suggested goldman was up to? >> i wrote last summer that gold man sachs was shorting -- subprime housing market at the same time unloading that same kind of stuff on its customer. what this case is is actually a little worse than that. this sort of accusing them of going out and intentionally gathering up bad subprime investments to short them and then unload them on somebody else. but you know, it's essentially the same thing. it's still basically an allegation of securities fraud, because goldman is trading on the knowledge that its customers didn't have. >> i talked to an analyst this week. they were very aggressive on the conference call with goldman-sachs, earnings. he said there's a lot of blank that went on in the heat, in the peak of the cbo market. he said i'm not quite they're

this is the blankiest of all of them. why did the sec pick this one? a feeling among some this might be a tough sell for the sec and gold man sachs said these are unfounded charge, going on the offensive, talking to clients saying this is politically motivated. it's going to be a hard case? >> the sec has certainly set itself up for a situation in which they can't afford to fail. it's a very high profile case. the sec announcing to the world it is prepared to take on the biggest of the big boy. goldman-sachs doing that, too. goldman did have an option to settle. and that's what normally happens in these cases. i mean, presumably the calculation in goldman is that it's such a high-profile case, to settle would be dangerous, but what i think is really interesting about this is the extent to which we are at kind of a cultural watershed, and i think people now are starting to ask in the wake of the financial

crisis, with this case crystallizing it, what is all of this for? what is the social benefit of these raids? what is the social benefit of this market? >> but chrystia -- >> that means the longer run -- >> what's the social benefit of betting that a team is going to lose a game, or going to the casino? the fact is, john paulson who is the party who allegedly asked goldman to set these up and pick the mortgages that were designed to fail and shorted them -- >> not charged with anything. >> he made the right bets. >> but john paulson can't benefit from cheap debt. john paulson doesn't get bailed out by the government when he fames. that's the difference. >> i was going to say. we don't give $4 trillion to a guy who bets on the diamondbacks to beat the dodgers. that's not the way it works. the problem, these guys have been massively subsidized by the taxpayer and doing completely socially non-beneficial trades. that's why people have to pay attention to this stuff. >> all right.

thank you so much. fascinating conversation. this is not the end of the golden story by any sort of the imagination. we'll talk about it next week. we'll meet fabulous fab, the trader at the heart of it aunchts the moral of the story, don't send e-mails, and if you do, don't call yourself fabulous fab. >> oh, man. a total financial meltdown leaving millions struggling for jobs trying to repair destroyed nest eggs. next what must be done to assure another crisis is averted before it's too late. [ sneezes ] ♪ music plays

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in the wake of the financial crisis, ali, is this lingering question -- did americans capitalism fail? >> a free market was never meant

to be a free license to take whatever you can get, however you can get it. that's what happened too often in the years leading up to this crisis. >> having a discussion on facebook with somebody who says i'm imimplying the free market was responsible for making this into a big recession. let's talk to a co-author of a book called "the road from ruin." how to revive capitalism and put america back on top and also ut biz editor with economists and one of the smartest journalists around. thank you for joining us. appreciate it. straight to it. give me the directions to the road from ruin. >> the book is really about our capitalism failed. had lehman brothers went bust and the rest of the financial system went into meltdown, that was clear evidence that we couldn't carry on as before. capitalism was not supposed to involve the government coming in and bailing out all the bankers.

so in the book we set out an agenda for reforming capitalism so that it can actually work better and serve the public rather than serve a small group of people on wall street and set out a number of idea, the, some in of the current reforms pushing, others are not. more fundamental. >> what of the president's reforms do you agree with and in your road map first? >> one of the ideas i like, set up a consumer protection agency. i wish it wasn't being set up with the federal reserve, but as an independent agency. >> why? >> because i think the banking industry did exploit the ignorance ever the public and design products that took advantage of people who weren't able to really understand what they were being sold. we do need an agency to protect customers and we also do need to make sure that the regulators are able to see what's going on, what sorts of derivative, being traded by banks. what sort of rinks they're taking. the clear regulators failed to

do their job properly during the run-up to the meltdown. >> good to talk to you. thanks so much. great book. "the road from ruin: thousand put america back on top." christine, a number of people who criticize the president's financial reform efforts said that by definition they may actually stop america from being on top. let's talk about that in a little bit. first, we want to show you exactly how you can set yourself up for success in the stock market, which is really where you can play, not in the world of exotic derivatives, but we're going to show you how you can succeed no matter how old you are and which way the market is headed. the reason lies 6000 miles away in japan. where a producer of specialty eggs needed corn for feed grown to precise standards. cargill identified the producer's needs then introduced an illinois farmer to grow the exact corn needed. and developed a system to ship it separately, connecting the farmer with a japanese customer who was very appreciative.

this is how cargill works with customers.

how many times have you heard this about money, right? diversification is the key to weathering uncertain times in the stock market. how you get there? what does it mean to diversify? take a look at etf or also known at exchange traded funds from what our next guest says, in simple term, all the benefits of mutual fund, not all the fees associated with them. the big question, how do you build a portfolio right for you made out of this etf. >> justin: talk to our resident guru, ceo of market writers. you say that most people have

mutual funds in their retirement accounts, but consider an et-it-et-itf to save money in the long wrong. say you're 25 years old. >> don't put all your eggs in the same basket. people don't understand what are the baskets? u.s. stock, foreign stocks, reits. talk about real estate, for example. you can own real estate without ever fixing a poilt in the middle of the night to real estate investment trusts. the reit allocations for a 25-year-old, buy an etf called rwr. if you buy rwr, you own 80 of the top real estate companies in america. apartment building, warehouse, offices. all kinds of things. hotels. >> and the overall stock market you point out vanguard total stock market, dti, the one nap should be the biggest part of your portfolio at this young age. moor, for us into 55. you're 55 years old.

the poor follow yo of the 25-year-old should look different than a 55-year-old for obvious reasons. walk us through 55. >> we get older, don't have a strong stomach lining. you know, 2008 was really tough for a 55-year-old but a 25-year-old, a lot easier. when you're 55, you own the same etfs, christine, but shift the allocations more towards bonds. in this allocation, a 50% bond allocation and et cetera. if you look at this allocation, maybe bnd, the bond. all in one security issue. we also boot out the commodities. they tend to go up and down quite a bit and this is more appropriate for a 55-year-old guessing closer to retirement doesn't want as much volatility any a portfolio. >> another acronym tip, protected securities, but that's

something that should be in an etf. say that ten times. tell us about that one. >> yeah. tips are interesting. people don't fully understand what a tip is, but a tip is a bond. a treasury bond, but it's a little different than a regular bond, because you're dealing with the government. basically, people worry when they're on bonds, rampant inflation, less money when the bond cups due. the tip, dealing with the government, that says we'll make up the difference. it's a treasurery are with inflation treprotection built i. ought to be in an allocation. as you get older, shift the allocations around. our company has software to do that. you can get other places to do that. it's a matter of shifting allocations based on raising your tolerance for risk. >> if you want to hear more about the etfs and do your own research, go to cnn money, put in the ticker, lesh more. ali and i will put them on

facebook pages, christine romans@cnn and ali velshi. put them on there to see what you're recommending and whether it's right for pup it's your own personal preference. thank you, mitch. >> thanks, christine. appreciate it. all right. next, meet america's future financial experts. >> we have to look out for the dividends. >> i like checking the dow. >> my favorite stock laps to be apple. >> apple has been good to her. she's made a killing on apple. they started young at this school in chicago and learned using real money, a lot of money. $20,000 per class. $20,000 per class. the details, next. car insurance.

so, ali, my 4-year-old wants a new train. i said, i don't have the money right now. he said, mommy, let's go to the grocery store and buy some. >> buy money. that's a good one. >> apparently that's where he thinks money comes from. i need to work on the money question already at 4 years old. ale when did you first learn about money? >> well, i started investing at a young age. i think 11 when i bought stock, which i really liked. as you and i discussed, i'm not sure i ever learned the other side about money. i'm not the best saver in the entire world. i learned how to spaend invest. didn't learn the saving part. >> an image of alex p. keaton and ali velshi. >> introduced to the stock market early. >> how many people do you think learn about personal finance at school? >> as a percentage? >> as a percentage. a guess. >> 20%? >> much lower. the roman nuell rap, believe it or not this week, 6%. 6% of people, ali, say they learn about personal finances.

only 6% according to a recent survey by the national foundation for credit counseling, and that many people say is a problem with financial literacy in this country. 6% learning it in school. suddenly going out with student loans a job have to manage your paycheck and buy a car. one school on chicago's south side is trying to change all this. take a look. >> reporter: meet america's future investment bankers and accountants. >> we have to look out for the dividends. >> i like checking the dow. >> my favorite stock would have to be apple. >> reporter: at ariel academy, students learn how to make money. >> it helps the business. >> reporter: save money i. think everybody should at least save half of their money. >> don't forget your decimal. >> reporter: and invest money. real money. thanks to the school's unique saving and investment curriculum. >> the incoming first grade class gets as 20ds,000 endoubtment when they get to

sixth grade we'll start to choose stocks that they think we should be buying. and we will buy them. >> $57.58. and the dividend is 14 cents per share. [ applause ] >> reporter: when students graduate from eighth grade, the $20,000 goes back to the incoming first grade. and any profit above that amount gets split. half goes to improving the school or charity. the other half divided among the kids. >> i'm going to invest in that. >> reporter: some years, like 2009, there's no profit, and the kids learn that investing is no slam dunk. but that doesn't deter kids like ariel graduate mario and myles gauge. >> my own port fop yo. amazing. i'm able to take everything i learnrd at ariel to the next level. >> reporter: they weren't the only ones in the family getting an education i. started looking at the materials they were bringing home. still a little foreign to me, then they broke it down like children do and i started getting a little excited about

that, and i'm like, wow. you know what? this is fun. >> reporter: fun and finance don't often appear in the same sentence. but that's not true at ariel. from age-appropriate learning to an inspirational environment and the ultimate reward. attending mcdonald's annual shareholder meeting, making this all possible is john rogers, chairman and founder of ariel investments after which the school is naped. named. ariel along with a partner put up thes 20ds,000 for each grade. 's in 1991 ariel started work wig this public school on the south side of chicago, because it was one of the most underserved in the city. 98% of the student body is african-american. 78% are considered low income. nowadays, test scores are on the rise. outperforming the distribute and the state average with the help of teachers like connie moran. >> good morning. >> reporter: named teacher of the year by the national foundation for teaching

entrepreneurship in 2007. >> ever since i lived to ms. moran in class i heard her say invest in your money. investing your money and now i'm going to listen to her. >> these kids are awesome. students can opt to get their profit in cash on graduation day, ali or put it in a 529 college savings plan. in which case ariel kicks in an additional $1,000 reward. >> that in itself is a lesson. don't take the cash, think about the future. put it in a 529. there's so many options with that 529. >> totally. >> invest in somebody else's. invest in yours, get a tax deduction. >> the majority of the kids do they take the money or 529 investment? they do the investment. >> great. >> kids have learned as they've gone through that money's going to grow. starting to learn about compound interest. the more time the better it will be for them. it you're not lucky enough to have ariel in your neighborhood, how do you make sure your kids learn all mees these money

lessons? they're the exception, not the rule. >> our good friend joins us again, editor of kiplinger's personal finance and an authority on raising money smart kids. thank you for being with us. obviously this is not the lengthy lesson we can, we'd love to give so many more of america's kids, but what would you say that parents who are watching us should focus on? >> well, as you were mentioning earlier, those teachable moments, even when your 4-year-old, christine, is asking where the money comes from, buy it at the grocery store. lesson, that's not exactly how it works. the bank is the big piggy bank for mom and dad. we freed to put money in the bank like you do. sometimes the bank is empty, like yours. very good lessons. >> in the recording of this piece, my producer and i learned most parents said that they were learning from their kids. i mean, in some cases, there are times, teaching kids some of these things. for parents listening and trying

to figure how to teach your kids, start with the preschool age. kids and money. that's my 4-year-old, buy kiks, ice cream, yogurt and money at the grocery store. what do i need to do? >> well, first of all, you have to remember, as you said before, age-appropriate. has to be very concrete. actually, i write frequently, a kiplinger.com, or website a column for kids and money especially for parents. for younger kids you have to remember concrete. think piggy banks. think putting money in a vending machine and getting something out the bottom. that sort of thing. anything that you can do to deliver ren shiite between coins. and then as kids get older, into the elementary school, middle school year, certainly they can get some kind of allowance or some kind of fixed income of their own. that teaches them how to make choices. you're not talking about plastic -- >> talk about that a second. first of all, give you an

allowance because you are or you work, should otherwise be doing, some parents say for free. when you get that allowance, teach the kid to take a piece of savings out of that or to -- >> right. >> do charity fri that? or is that their money to blow on whatever they want? >> here's my theory, ali, from years of writing about kids and money for kiplinger. you really need to give them the opportunity to make their own choices and to give them financial responsibility. financial jobs, if you will. so that, you know, they're certainly going to be -- i think they should do many things around the house simply because they're part of the family and you shouldn't be paying them for chores they should be doing on their own, but the money shouldn't come with strings not attached. there should be strings. those would be financial string. they have certain responsibilities. certain choices they want to make. then, they need to -- they can earn additional monies attached to additional jobs that they would do around the house, that you would consider over and above the basics.

>> thank you so much. author of "raising money smart kids." kiplinger's personal money -- raising money smart young adults, very young adults, al pip bald young adults. >> good to see you. some positive news from automakers this week. a sign the industry has turned the corner? or is this just a media hype? 24-hour allergy relief, , t comes in a new liquid gel. new zyrtec® liquid gels work fast, so i can love the air®.

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time for reality bites. our reality check of some of 9 bite-sized stories out there. our good friend richard quest is stuck with me here in new york dur to, ever all things volcanic ash. >> thought that was over. >> i think he's trying to stay in new york agents longer to entertain us. >> and even staying at a place i offered him. >> waiting for the bell, no doubt. actually, actually i'm going back this weekend. >> ali doesn't have furniture in

that place because i took the last of it. >> there you go. >> all right. good headlines this week i want to i want to get your opinion on. chrysler posting its first quarterly profit since bankruptcy last year. gm repaid its bailout loan in full and ahead of schedule. there are $50 billion in federal health. are these signs automakers turned the corner or are we making too much of this? >> you can pretty much say it's good evidence that the system worked. now, we can argue whether they should be bailed out or shouldn't be, but the fact is they were bailed out and now you're starting to see the benefits of that program. there will be something horrific if they weren't showing profits by now. there will be something awful if they weren't able to start repaying some of the money. that would be the tantamount of failure of the policy. i think this is a good indication that rightly or

wrongly, the bailout has worked. >> a year ago i wouldn't imagine we would be doing this, you know? >> there are a few things at play. a couple of things at play. one, they kind of have. they hit bottom. number two, we did have cash for clunkers which got inventory moving and got them back in the business of selling cars. number three, we are all feeling a little bit better, so people are buying those cars, people who think they might still have a job. i think the system worked, i think the economy is doing better and i think generally speaking, this could have gone the other way. >> don't forget one other point. their cost base has dramatically been reduced as a result of it. if you can't make money after you've been through the process that was rammed through as fast as possible, then really, you shouldn't be in business at all. for those who believe in chapter 11 and bailouts, this is the evidence it worked, but still early days. >> still early days.

an oil rig explodes and sinks in the gulf of mexico. what it means for the environment, america's crude addiction and the president's plan to drill even more. first, if you back up your business plan with passion, you're more likely to succeed. in this week's turnaround a manhattan deejay school encourages students to follow their dreams. >> time to get down. >> when we opened, it was like inviting friends and family. there's really no source of income for the first eight months or so. so at that point, slowly but surely, we started getting enrollments and were able to use that as working capital. once you have those few months of consistent growth, then i think maybe this is going to continue. >> try to imitate that.

>> maybe i can hire somebody to do one of these many jobs that a few of us are doing. >> right click on the whole thing. >> so once bigger payroll came into the equation, it made things more stressful. monday would come and we're like payroll is friday. where do we get the money for payroll? there is no worst stress than that for a business owner. i had to let those people go. so trying to grow and hiring staff, it's tricky. we work with a lot of manufacturers that make this gear, make this software. all these companies need instructional material. that is something we were able to do and provide for them. we also parted with students. we found out what skill our students had and fit them in. my best advice, i can't emphasize it enough, you need to spend time deciding not only a

business plan, but this plan of your website. essentially, that is your road map, that is your guide. that is what is going to drive your business, especially commerce online. definitely looking to expand. we are going to take another floor in the building and looking to open in a few other cities around the u.s. the plan is in motion. >> the revolution.

back with our good friend richard quest and ali velshi. ali, you've been covering this. an oil rig sinks in the gulf of mexico, 11 men missing. still a search and rescue, but over the weekend it's going to be critical for these men and families. that is the burning platform, then it sank. one of the things we talk about

as we move forward on this story is this is an amazing example of a high tech search for low-tech energy. it comes close on the heels when the president announced and endorsed more drilling. >> offshore. >> there are political ramifications of this, too, right? >> bottom line is we use a lot of oil. we use a lot of coal. you were drilling down looking at some of the numbers, the percentage of energy we consume. >> if you look, you can see petroleum powers this economy. natural gas, the second most common energy source in this country. coal 23% p. then look, nuclear 9% renewable. of everything we talk about, richard, our economic recovery is powered by very old technology and is the cheapest technology. >> it also tells us life is not risk-free.

to get the economic growth we seek, there are men and women who have to put their lives on the line to do so. from the comfort of your living room when you switch the lights on, there is somebody who had to -- >> in west virginia. >> down in west virginia. when you start your motor vehicle and the petroleum sparks up, somebody had to be on an oil rig. why do you say that? because it sounds so obvious. these events remind us what the economic and the real human life cost can be to make the whole thing work. >> as you look at those pictures and we hear more about that oil rig, it's fascinating. just a fascinating look at what it takes to get this country and the world going. >> there is one point i would make which i find quite extraordinary. barely has the rig had the fire out and the first lawsuit has been filed. i'm not suggesting for a moment there won't ultimately be lawsuits, but if you're