tv MONEY With Melissa Francis FOX Business September 7, 2013 12:00am-1:01am EDT
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on this. s s s s s s s s s s s . liz: and in silicon valley. ♪ melissa: i'm melissa francis, and here is what is "money" tonight. the u.s. beefs up its attack plan against syria and is set to trigger enormous blow back from russia and iran. is the u.s. about to fire the first sho of an all out war? posits of the end of the week without franchise friday. how can you squeeze the most of a corporate policy. the right trip can be a boon for your business and brand. trade secrets. and he made -- today. every time more people drop out of the work force these investors seem to be raking in then. stay tuned to find out who they are. even when they say it's not, it's always about "money." ♪
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melissa: preparing for the worst , the state department is ordering all non-essential u.s. diplomats to evacuate women on. fears of retaliatory attacks are spiking in the event the u.s. tax syria. the latest from beirut. >> we got that word from the state department a few hours ago ordering all nonessential personnel from its embassy here in beirut. also telling americans, if they are thinking of coming to this country, maybe think again. as you know, they are getting some ominous signs remarkable of groups in the region, especially the iranian-packed lebanon-based hezbollah outfit. they say that they could retaliate against the united states in the event of a strike on syria. a statement coming out from the group today slamming possible
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u.s. intervention in the region. it was purposely vague about exactly what the retaliation would be and what level of intervention could trigger that retaliation. it could be, u.s. assets. according to analysts, the most likely would be retaliation against its arch enemy and absolutely key u.s. ally in the region, israel. hezbollah is already involved in the fight. militants are over in syria in combat alongside soldiers of the syrian regime of assad, and that has caused a little bit of blow back for their group here in lebanon. take a look at what we saw today in beirut. >> the war in syria is already hitting home in lebanon. this memorial at a hizbollah stronghold, the site of a car bomb blast last month which left 27 people dead. as you can see, people are
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already trying to make repairs, fix this up. but widely seen as retaliation for hezbollah backing of the assad regime. >> despite how important syria is to hezbollah, experts tell me that they might not go big if the united states does not go big. memories are still fresh here in lebanon of the 2006 war between hezbollah and israel. and that left a devastation and destruction all around the country. finally, melissa, one person came up to us. he told us that these -- i don't think there will be a strike on syria. this region cannot handle it. wishful thinking. maybe. understatement. probably. back to you. melissa: thank you so much for that report. the u.s. plan of attack is expanding. blow back looking more ominous.
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president obama ordering the pentagon to widen its target list. russia and iran making clear that they won't watch from the sidelines. with me now, military expert peter brooks, national affairs senior fellow at the heritage foundation and former cia military analyst and author of the new book unthinkable iran, the bomb, and the american strategy. thanks to both of you for joining us. >> id to be here. melissa: i will throw this out to either of you. the russian president saying he will continue with arms sales and aid to syria in case of a strike. to me that means what? what does that mean to you? >> he is not going to abandon syria. the russian toehold in the middle east is through syria. a longstanding relationship, and economic relationship, a russian naval base in syria. you know, there were good friends during the cold war.
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so he has a lot at stake, not only standing up to the united states, but also the russian influence in the middle east. melissa: the freeze syrian army, on fox news earlier this morning. i want to play for you what he had to say and get your reaction from both of you. >> the russian president is lying. lying at the beginning. this man is a terrorist, and he is trying now to deceive. melissa: it makes it feel like this whole conflict is getting bigger and involving more and more people. >> the longer that this drag on the more opportunity that you get for other people to jump on board. and just a kind of piggyback off of some points that peter was just making, i think it is worth considering the fact that before the syrian crisis and in particular before the obama administration announced that there were not going to do anything without u.n. backing,
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russia was dead in the middle east. they had no influence in the middle east. suddenly by saying we're going to go the u.n. route and are not doing anything without, of a sudden the obama administration has brought russia back into the middle east and given the influence that it lacked. so i think it is a mistake to assume that he will ever give that up. all the sudden he has been in power by president obama. he is not going to let that go. melissa: that makes perfect sense. it does not seem like russia is distancing itself from this conflict by a long shot. at the same time of "wall street journal" is reporting that iran has said that it, too, will retaliate on u.s. assets in the middle east of the u.s. attacks. >> absolutely. i mean, his expertise, but trying to deter the united states from acting against its ally. if the united states does do something, we have to expect that they will have consequences
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we cannot expect to do it with impunity. we have to be ready for that. sent out a bulletin to law enforcement around the country saying if the united states attacks syria and you see something suspicious you should take it seriously because their possibilities that we will be subject to reprisals. melissa: do you agree? >> i think that peter put that exactly right. putting on my intelligence had i would say, it is unlikely that iran makes good on these threats, but if i put on my old in sc staffer, you have to -- absolutely have to be prepared. it would be a huge mistake to go into this operation assuming that everything would work out fine. we have to be wary. a lot of stuff going on. they are not looking for a fight with us right now. that said, there are conservative elements, the hard-line elements led by someone who gavehese remarks are issued this morning. he is almost certainly looking
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to kill the effort by the iranian president to reach out to the americans which may be part of what he is up to. melissa: at the same time we're hearing president obama ordered the pentagon to expand his target list. some sources say he has asked them to change the plan up to 50 times now. >> the president is not settled on what they're trying to do with these military strikes. you have a political objective and then put together your plan to support that. at think perhaps they have probably been told, give me as many targets as possible. the president may whittle it down when he decides on a political objective. a couple of dynamics at play. a problem is we don't know what he is trying to achieve. melissa: meanwhile, the clock is ticking, time is going on. is that a positive or negative? >> at this point is it becoming very much a negative. it always was, the longer this
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goes on the worse it gets. let me add to peter's point. if you why the pentagon and you are thinking that you need test track targets associated with this year and chemical warfare complex, if you telegraph that you're giving them time to move everything. the more time you give them the harder it is going to be to actually target. the more they move around. the more they move around it you have to retarget. expand the targets and reflecting the fact that the cities are now having the time to react. president obama basically laying out his campaign plan for them. melissa: thanks to both of you. >> thanks for having me. melissa: next on "money," today's jobs report is stressing enough, but is serious a wild card? plus apparently nothing is safe from the nsa. reportedly cracking almost every type of incorrect -- encryption on the internet. should we be celebrating the new-found power were scrambling to restrain it?
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♪ melissa: the unemployment rate falling, but for all the wrong reasons. labor force participation is at its lowest level in 35 yea. if people are finding work of art is part-time and looming over all of it, a major conflict in syria. is this the wild card that could crush the very weak recovery? our economist, a fox news contributor. thank you for joining us. let me start with you. the labor force participation rate is at the same level it was in 1978. over you doing in 1978? does this feel like 1978 all over again? >> i was beginning my career in washington as a young analyst at and nonprofit. it felt bad. not a great year. it felt a lot better than this. for years into the recovery and we are at this low level of participation. this is a very sick labour market. most of the new jobs are
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part-time. melissa: picking up on that point, three out of five of the new jobs that have been created since the beginning of the year are part-time. you see people out their picketing. whether they are real or not, that part-time wages not enough to support a family. you don't want three of four jobs to be part-time. >> the tragedy of this recovery has been that some many people with college degrees and people who are heads of households have to work at mcdonald's or have to work at walmart or have to work at a retail store. that is a tragedy. you cannot raise a family on that kind of a job. you are exactly right. those are the kinds of jobs that the economy has been created. the to the members of the last year. almost 800,000 of the new jobs have been in either retail restaurant industry, and that is a big problem. i was very surprised that we saw no growth in construction jobs. very little growth in manufacturing. we are supposed to be seeing
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this big boom in housing and an auto production. melissa: absolutely. 312,000 people this month just give up entirely. they said forget it. i cannot take it. i don't want to look for work anymore because i am so discouraged. why is this? people have been debating this on every network all day. why is it that we are seeing such a slow recovery? are the things we could be doing of which speeded up? or is it just the death of the financial crisis? >> it is not the death of the financial crisis. part of it is the dysfunction. a good deal of credit is being made. soon loans, junk bonds to we companies. we cannot do mortgage banking, it seems. think it is time to break up the big banks. the interest lies in something other than banking. it is the trade deficit, the fact that we don't develop our own oil and imported. we should now be energy independent.
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that would be worth 3 million jobs. if we get something done about the china crisis, it keeps growing and growing. well, those are jobs. but also, all of this regulation and obamacare. every time something happens the president wants to hire a thousand new regulators. that makes businesses run to asia. melissa: and all of this, set aside the human toll of of war in syria and less talk about the money. is it good or bad? i can see oil prices spiking. i learned that war could be cared for the economy. >> come on. melissa: and trying to be fair. >> war is never good for the economy. i would make the point. syria is a negative. that is what is slowing things down here. i think it is the factor that
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beecher -- peter mentioned and that this president just as not made job creation the highest. he says he has, but as an example, a month ago in the midst of this very high unemployment rate and this high crisis in labour participation, he starts talking about climate change and global warming which is not the highest party right now when we have 20 million people who cannot find a full-time job. melissa: that is absolutely true instead of dealing with a life-and-death issue, they decided to go after corporate tax loopholes and talk about going after companies like apple who are incorporated in maryland and and not paying tax. this is the pressing issue. in view of work -- is wrong with the global economy. >> absolutely. the government right now is like a government in washington. the city of alexandria where i live for the federal government, the government in germany.
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germany's answer tireless problems was issued raised its corporate tax as high as it was. syria, syria is not the reason we're having this lousy jobs report. if that goes badly, and it has the potential to go badly, it could destabilize turkey and be the thing missing is the global economy as the rebels across the mediterranean. >> here is why domestic oil production is so vitally important as an economic issue and then national security issue. i believe in the next five or ten -- well, ten years now wcanl independent. that dramatically changes the world picture and our mobility. melissa: that is a great point. want to end on that. >> where did you beat your economics training? melissa: it's just like you
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said. you blow up the building. rebuild it. is the broken when the theory. we don't buy it. we are forced to learn it. thanks to both of you. next on "money," the nsa has cracked almost any type of encryption. should the nsa have this much power? is this the final straw to rein in? to top experts join us on what is really a stunning new report. it is the best day of the week. it is franchise friday. taking advantage of corporate doing wonders for your business and brand. to franchise owners return with their top tricks of the trade. and the franchise friday. can you ever have to my "money"?
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♪ melissa: in case you did not think so before, almost none of your on-line data is apparently safe. in as a whistle-blower edwards notes and leaking a shocking set of documents showing they're able to crack almost every type of online encryption, e-mail, bank systems, medical records. they're all open. is an nsa this powerful critical to keeping our country safe, or is now the time to put a stop to it? joining me, cyber experts, former nsa deputy director and ceo of trusted security. welcome to the show. >> thank you. melissa: tsa that wrong? >> you got it right. melissa: let me start with you.
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are you surprised that they have -- i mean, this article is damning. they can crack in the code, any encryption, and the password, whenever it is, it is not safe. is that surprising? >> i think we have to be a little bit careful with lending complete credence to the fact that as reported in the article that they can do everything like that. the nsa is very good, but i would say that every thing is totally at there mercy, probably an overstatement. their good, but no agency is perfect when it comes to a job like cracking codes like this. melissa: if you read down deep, there were talking about all of the encryption technology that they have worked on an algorithm to get through anything. the article made it seem like it didn't matter what it was. they could break it down. >> if you look at what their job
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is, it is a spy agency, and there good at cracking crypto. if they don't have access, and the past, they have billions of dollars, thousands of people dedicated to tracking code. if you look at the document itself, they are heading of the major technologies that we use. everything from ss sell to advanced encryption to things that we use in differe corporations and cpanies. basically everything we do to consider ourselves anonymous would try to protect our data or store it in an encrypted format seems to be broken. melissa: this makes me nervous. either way it makes me nervous. because i feel like they have proven that they will go looking and save first and then ask permission and look for people who might potentially be guilty of something later. >> it does not quite work that way, but i can understand the feeling because it does seem
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like a very pervasive way to get into our networks. that is not what the nsa is job is. we probably have to look at exactly how these issues have been practiced and how we deal with this. the bottom line here is that the nsa has a job to do. it has the job that involves going after threats to the united states through electronic means. that electronic means has graduated from of radio spectrum into the antiworld and on to the internet. so that means that different techniques and procedures and laws need to be put in place so that we can assure ourselves the degree of protection but also make sure we protect ourselves against terrorists to use the internet for their own purposes. melissa: that last part i have a problem with. i don't know if we can assure ourselves a degree of protection against the government would deal with that one. >> that is the problem. if you look at president obama statements in the past it was
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basically if you know what i know you would just as. that does not give us a sense that everything is fine and dandy. i came from the signal intelligence side, the top secret side of the house. things are a lot different. we had to get direct approval to do things, but it is showing now , coming out with a different leaks and everything else to see that is happening, that is not the case. they have a very overly broad consensus to be able to collect on pretty much anybody. there are thousands of infractions that occurred. this is an agency it is out of control and release of the rope back in. we are now in a surveillance tape. everything we do as u.s. citizens is being monitored. think about that. melissa: do you agree with that as someone who is formally with this agency. the article, without congressional action or a strong judicial precedent i would strongly recommend against anyone trusting their private
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date coed company with physical ties to the united states. that is very dramatic. >> i think it is too dramatic, but we have to assure people that there data is safe. in order to do that we need to have some really strict accountability. i do agree on this point. accountability is key. when we work within the signals intelligence system, there were a lot of very strict rules. and they continue to exist through the time that i was there. the problem is technology has evolved so much that the rules that apply during the cold war no longer relief it the kind of data that we are dealing with right now. and we have to make sure that on the other rules right, but they follow the rules in a way that makes them -- melissa: t think there are rules in place that deal with today's date? >> there are rules in place. any to be followed and strengthened. oversight needs to be strengthened to make sure that each branch of the government
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does what it is supposed to do in this case. melissa: always interesting to hear from someone. thank you. melissa: next on "money," you know what day it is, my favorite. franchise friday, getting the most out of your corporate bosses can make all the difference for your success. two of our franchise owners return and tell us how to get it done. plus, who made "money" today. every time people leave the workforce these investors are apparently breaking gains. a money connection you won't hear anywhere else. he think it is? tweet me. coming up. piles of "money" straight ahead.
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melissa: well, you know what that means. franchise friday. each week we sit down to peek into there world, how you add up and up in one of around. given those jobs numbers, you will have to create your own job we find the best ways that a franchise owner can make the most. that is the benefit of joining a big franchise. they've already figured out the strengths and potential problems read it without further ado. welcome to both of you. thank you for coming back. let me start with you. how do you squeeze the most out of your corporate partner? what is your best it? >> i would say training. we have to get some value back for that thing that we call a franchise fee and the royalty repay every week. training is a huge part of it. we have the trainers come out
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two weeks before we open. is it true opening and two weeks after. that is a very important part. the launch is the first impression we have. if we don't make a great impression that will probably not come back. it is important that we get the training down and the grand opening perfect. melissa: what do you think? >> i was said the same thing. we actually have a subway university that owners can use our headquarters, a training class. melissa: that is for you. is that for your employees as well? >> of course. at the same time your managers are privy to the same training if you choose to send them. obviously there's a fee involved, but i think it is well worth the investment. melissa: t think everyone does that? when you look at your competition, they take full advantage of what the corporation has to offer you? >> well, if they don't they are hustling backwards. that is one of those things you learn to do as you give smarter.
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again, one of the other things that you learn with the system, you learn to emulate best demonstrated practices. if you or a mom-and-pop operation you would not have that opportunity. so dealing with the franchise you learn to enable the best practices. melissa: give me one example. what is one thing you learned in training that was surprising to you that has really worked out? >> one way to increase incremental sales. we used to bounce back stamp on the back of our receipt if we see a guest, we empower our managers, if you see a guess that comes frequently, often, come over and say, hey, i'm going to stand the back of your receipt. if you come back next tuesday and will give you a buy one get one free. and that will drive sales on a day that you don't have a lot of sales. that is something we learn through the corporate system. melissa: interesting. >> and use more recede it just came out. the same thing. repeat customers coming in.
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so today, three days to come back and have a repeat. melissa: there is one on my block. i have never offered me anything like that. you also say leveraging different offices. >> you can use resources at headquarters if you get involved. you can get involved. melissa: can you piggyback for free? i those jobs? what you get out of that? >> opportunities, say something is coming and the need someone to take care of it. basically form some type of synergy where you can help each other. you helped subway headquarters. you've come on top. melissa: is there an example of a problem that they were able to up highlight or help you fix? >> they help us avoid a the first one we opened, we were looking at going 247 and having discussions with the franchiser.
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with skill that back to 2014. because we were able to learn about some of the pitfalls. melissa: like what? >> you have big parts or you don't have any sales. are you really going to have sales at 3:00 a.m. on a wednesday at our location? those are the conversations that we had. probably not. 3:00 a.m. on a friday and saturday. melissa: that makes sense. you use the university of subway online and leverage other employees from stores. does that mean you are stealing employees? >> definitely not. melissa: it sounds like it. >> not at all. basically networking. use of the people that have come before you. they can tell you best practices but the fat from their own experiences.
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melissa: one more way that i can go in and leverage my franchise. >> pricing power. again, we are paying to have this franchise. we have to no good for everything we can get. so hopefully you are dealing with the franchise are that has pricing power. did you vendors, supplies at a cheaper price than melissa issue is opening her own pan-cake spot. melissa: how you do that? i would think he would do that anyway. >> that is exactly what you do. they have a co-op. there job is literally to just create great pricing for their franchisees'. melissa: interesting. did you bring me anything? >> what i did bring -- i brought you a gift card. melissa: that makes up for the fact that the one buy me has not been stamping my receipt. all right. thanks. we will see you next week. >> there is a rumor i may be a
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city of next week. i don't know if they will hold. melissa: i will take it. everyone is asking why i have to not cells are up in stores. thanks. next on "money", the gall of man. you won't believe how many are now demanding flexible hours with there jobs. does it really exist? an all-star panel weighs in. at the end of the day it is all about "money." ♪
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and our society is there even such a thing as true flex our jobs? are we expected to be glued to our blackberries an all-time or risk losing customers and money? some of our favorites are here to discuss. author and commentator, a author and small business expert thanks to all of you for joining us. let me start with you. >> i have flexible hours. i work 247. the flexibility to work every single hour. it was said journal of social issues that really did this report. it's more so about gender equality in the workplace. now there granting more man flexible hours. it does not mean a reduction. is the way the you allocate the hours for things like career advancement opportunities. melissa: are you buying this? 40% of men to mandate or it is a requirement. i am trying to figure out what job is it or you can say, money
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going toward today in the evening because during the day and gone to sleep. >> this is why cheryl san birds but got such attention and struck such accord. fundamentally they find it hard to ask for things at work, hard to make that point. men seem to be very well during those flextime. but it was invented for women. melissa: that was a lot. but do you think? >> actually, she's right. they were invented for women. it was a way for companies to keep the talented work pool in the workplace. nuances' started to affect the women's lifestyle. melissa: give me one example. somebody asked me just this week, do we have jobs at fox that are part time? someone can come in a couple days a week and i was like a mall where is that job? give me one example. >> it is not that easy. certainly if you're in a to the
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business we don't have to be there to coordinate with your co-workers are you don't have to be on the air war you don't have to be in the front line then you can work those flexible hours. it does not mean you are working fewer hours. that is a misconception. means you're working hours that are conducive to your lifestyle. will say one thing about this survey. i have found that looking at the research commend you ask for things in the workplace that women don't. they did a survey that found that women who want flextime, want to be able to work from home, maybe take a little bit more time off when they have maternity leave, there are seen as not being serious. man on the other hand, the double its sort, double standard, menacing as, he may be ambitious, but he understands the importance of his family. melissa: i'm having a hard time accepting this as a male-female thing. think it's in your imagination thing. went to look for the list of the jobs that have the most flexible
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hours. here is what we found three senior project manager nit has flexible hours. it is someone who is working in a cave by themselves. >> people who are in the 90 industries, actuaries, attorneys, people largest consulting. melissa: these are service professionals. always at the beck and call of there clients. i think an attorney someone it is not to a lot of work and is not very ambitious. >> is more so about the flexibility of where you can work, not necessarily how many hours. it might be the you come home and spend hours with your children, but you follow up with three or four hours of work at night. so you got all of your hours consistently. it is not a reduction in hours but the allocation in the way you use the hours. melissa: mentioned an actuary. that is where you -- again, another computer-related job or you run algorithms to try to figure out how likely it is. it seems like if you want flexible hours, rather it
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matters if you're in technology. >> yes. oh lot of lawyer friends in london who do a lot of consulting from home. they seem to have worked that one out. the industry, i am a writer, author, screenwriter. i do get to write books. do all of that. it is very, very tough to make money in the media environment right now. hard to make money, as we know. melissa: the flexibility may encroach on your ability to have a big paycheck. i will give you the last word. >> my entire team is virtual. i know people who work for ibm. they have never met in person. i think that it really is not about your paycheck. it's about how you balance your schedule. i know lots of people and makes lots of money, and they might be working at 2:00 a.m. in the morning, whereas i am a morning person properly. melissa: it's settled.
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your dreams, right? that is many mouse. a little kids at a labor day party last weekend. this video is spreading like wildfire across the internet, and that is not even the worst part. when i watched this video, an ad for disney popped up in front of it. how is this happening? how upset she disney be that they are sponsoring ads for a video that is not appropriate for little children, destroying one of their best characters. joining me now to discuss, my favorite marketing expert. you know, you sent me is video because we are friends like that. obviously you spend way too much time on the internet looking at various which is a subject for another time. what was amazing was when i lost it the disney at came up first. as a branding expert, how do you feel about how the brand is being used in this video and
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that they're paying for me to see the brand used like this. >> i love the comment that someone made. this is all sorts of ron. this is something that once you see it, you cannot on see it. now we're going to go from watching many miles -- we will start calling her maile mouse. you can be sure that people at disney are not happy. they're using words over there that would make snow white plush . they worked so hard and are so aggressive about maintaining their brand. this just tosses it out. just like nothing. melissa: to me it says something about ad sales on the internet. the advocates pitch to you when you watch something has to do with an algorithm and what i have looked at on my computer before. obviously have gone on and bond markets disney toys. it knows that i'm a customer somehow and identifies that or matched that this video is
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called many mouse, matched that in the ad with the fact that -- but disney jr., a channel aimed at 3-6 year-old kids was the sponsor. if you word that advertiser, i mean, does the person get fired for not making sure that the ad was in the right place? >> well, you know, when i'm not on this show i actually have a paying job. i've run an advertising agency. i went downstairs and spoke to a media director. very interesting because what happens is they explain the way the process works. disney bought a network of online opportunities based on, as you said, an algorithm, contextual advertising. you being a mom and having search those words before, the places you would be catherine into the mix. it causes a really big problem. even the websites themselves will not guarantee what is going
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to come up on it because based on this contextual nature you never know where the demographics. melissa: so no one gets fired. >> don't be so sure. disney is crazy aggressive. i will be suing that site. you'd make a statement, if you're taking disney money on your side, you had better police it properly because we're not going to play with this sort of thing. melissa: we have to go. thank you so much. appreciated. thank you for sending me that video. >> my pleasure. melissa: up next, who made "money" today? it is one of the hottest money relationships out there. we have the answer right after this. you could never have too much "money." ♪
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>> whether on wall street or main street here is who made many relics like more people exiting the work force is doing wonders for the stock. if more people looking for jobs lazy boy is unstoppable because more people need recliners and sofas pushing the total gain as 64%. spending everyone's many the irs is at it again turning over another perry the video of "the apprentice" paid for with tens of thousands of your tax dollars. >> i have said it is before i make stars out of them but in this case, you're fired.
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