capital markets so far in two thousand and thirteen we've seen sixty four public offerings in the u.s. raising seventeen billion dollars in a record since before the financial crisis and this is the last two years of thirteen billion dollars and may but there are still seven and a half months ago in two thousand and thirteen and we've seen in the last few years the i.p.o. market can easily be shut down whether it's the debt ceiling debate or an i.p.o. blunder itself like last year's facebook offering for now wall street enjoyed the even money here's what's in your private jets.

now the increasing cost of college do it too ition is causing major issues among young americans the average student graduates today with about twenty six thousand dollars in student loan debt the federal government issues direct loans between three point four and seven point nine percent and the rates are set to double on july first now senator elizabeth warren think students should be able to borrow money for the same amount that khalid are that banks are borrowing so last week she introduced a legislature in that would float money from the federal reserve to the department of education so they could cut the loan rate to just point seven five percent well earlier i spoke with me she said lock up from said compass of a capital about senator warner's bill and the student loan industry in general and here is what he had to say about the bill. for the student loan market on. students

are positive for education these are all different questions here yes i think it misses the mark and that's the problem with. what we need is more competition in schools we need to be driving down costs we don't need to be doing sang's just encourage students to take out loans and get educational they don't need perhaps don't even want. education and street fosters on their minds i was wrong of everyone i asked my hat so i think we need to get the government out of this. morning government and the business what it does is. by cutting the rates two percent or whatever bracket started a quarter percent excuse me there is zero percent this encourages more people to take out loans because they look cheap but joining me now in studio is our t. course find that margaret how here again thank you for joining me ok and i just got it way and i in mrs comments and have how do you feel about the city

a lot about what they think a bubble exists there is this. you ask me if i think it's right no it's not right i mean that you know we should be investing in our students not our banks that is the bottom line you know an educated workforce is the crux of society and he's using the term student bubble i mean he's probably calling that from the housing bubble we're not talking about houses here we're talking about people and i think that his argument that we have too many educated people for a society to function just as apply with me well what about. being over educated i mean there's you know plenty of people who go and get a college education and they can't find a job or they end up working in stores or bartenders or something that would not require a college education do you not think that weren't over educated this idea in any capacity in some cases yes what we should be doing in society is placing an equal value on skill in terms of you know what what can you bring to the table along with

that degree and i think that's what we're dropping the ball per se you know people they need to have a skill they can't just show up in it and say ok well we've got the i've got the stick green now i get an automatic free pass into a job it doesn't work that way you know employers want to know what you can bring to the table so you know we need to place that equal emphasis to something i want to tell you about you know we see these students particularly graduating from law schools i was reading an article yesterday and last students are unable to find a job and they're suing their album auditors for misrepresenting lvalue of their degrees so do i think that there is too much value placed on a degree not necessarily but i think that we should have an equal value placed on skilled ok well then. i also brought up expectation it was kind of weighs in on exactly what you're saying is that. student loan bubble i mean just talking about that fueled in expectations about will mean that you have to have a college degree in order to just get a basic job and here here's what me study about it let's listen to his explain.

affairs oh absolutely we're we've been in one it's not actually the only credit expansion we've seeing throughout much of the so-called recovery it was a band where. people were students staying in school longer than what they need. because they can't find a job they go on and get it dance degrees you have people going back to college and middle age because obama tells them they need training but training for a lot. well period you know that i think he might be correct on there there needs to be the expectation needs to match the job market so people need to get a realistic perspective on what's out there before they apply for college that need we need to have an idea of what we want to do prior to entering this this free thought process the forty years is probably not the smartest thing you can do if you're wanting to be gainfully employed at the end of it and i also feel that not

everyone has as made for academia i mean academia is a very specific type of the economy and not everyone needs that type of training there's plenty of jobs out there that don't require this you know advance type of study so it was here we were talk about the expectation about boy ged he could play that clip of his of mischa's. comments on expectations out absolutely we seen the x. . in hiring trends companies insist upon degrees now whether a degree is really required for the position or not just because so many people have a degree so why not hire someone once in a group so. when you look at all of these things in aggregate it's it's just a step in the wrong direction we need more competition not less and that's

what cheapening monny elizabeth warren wants to do it just encourages more people to get your careers they can't use and in fields where there are no jobs there on the first. so i was coming to really interesting so what you're mentioning about lawyers point is they're all a mater i mean do we think think that you know the college degree is really worth because i know you said we need college degrees to be a well functioning society but is it possible that cause you're either over carsten or you know period that is a possibility you know i went to george washington at the time it was for one of the highest per cost for a year i think it was fifty two thousand a year when i went there and i you know there was this question i think that they were paying the university president at the time three million dollars a year to be the university president and you know maybe that cost doesn't really jive with what i got from my bachelor's in hindsight now does that mean that it

wasn't worth it i don't know if i can say that per se but you know again going to an institution like that it sets up a student eighteen nineteen years old for a predatory loan which was the original intent of of our discussion taking it back to those predatory loans you know what what rights are they have defined on the bottom line and maybe maybe the regulations should be a little bit different what about the need for a vote vocational skills and vocational training i mean there's plenty of demand for these types of jobs do you think that we should put more emphasis on vocational training you know i think yes and no. it needs to be individual based if we have a student who maybe isn't fit for academic life who would be better suited in a vocational training sector i.e. welding for example you know there are a lot of jobs like that you are right and perhaps we should be focusing prior to college and helping students find out exactly what their needs and this market fits changing so i'm with you on that vocational training is

a must i think in some cases yes ok now student loans that are in ninety day delinquencies they've increased steadily in the past year and i asked me if you think that governments will. have to increase lending standards because of a and here is what he had to say about that. well we've already seen increase default rates just keep going up or not and we keep reworking requesters what do we do about so raising when the standards are present obama wants to do the exact opposite of that. so because the government is so heavily involved in student loans and they're loaning out so many and now dealing with the rates are increasing do you think that the government should increase lending standards in order not to have a debt issue with i don't know if they should increase the standard i think the standard is pretty strong with as it is you know something a senator elizabeth warren was trying to do she was for

a year we're going to get the fed to subsidize these loans we're not going to leave it up to private banks anymore you know and i think that she made a very excellent step in the right direction in terms of helping these students you know our debt crisis is you mentioned earlier one trillion dollars isn't that amazing student debt and one trillion i don't know if we're ever going to get that paid off but i do know that we have to do something because in july if congress doesn't act student loan interest rates going to are set to double a double but if you can't repay loans you write about i want to be generally that's an excellent point period but at the same time you know there has to be more than just raising the standard i think that that would show a lot of people out of college who maybe are all over educated no i don't think we were over educated at all i think that perhaps there needs to be something else in place besides relying on loans prior to entering college that would that would be what i would say to that thank you so much for weighing in on this. of next we're

going to talk with prime interest producer just seen underhill about the soaring cost of college tuitions and just what the rising default rate might mean for the market university then bob english and i will go at it discussing the latest bloomberg embarrassment across just saying richard branson and car i was latest public brock's the world stage. will see britain. style. that's not on the tireless. markets why not come to. find out what's really happening to the global economy

with mike's cause or for a no holds barred look at the global financial headlines tune into cons a report on r g. p fifty feet. in the. world of. science technology innovation all the list of elements from around russia we've got the future are covered.

an estimated one point eight million students are graduating college this year and

according to a survey commissioned by adam levin of credit dot com almost half of students between the age of eighteen and twenty four so they have borrowed money to pay for college this represents a drastic shift as less than a quarter of all baby boomers went into debt to pay for higher education among recent graduates one the fifth believe that students should borrow as much as they need and that no amount is too much meanwhile ninety percent of baby boomers and seniors disagree for more on shifts in college tuition costs and the rise in student loans we turn to private interest producer justin undergo. justing can you tell us a little bit more about what's happening in this trend and increasing college tuition absolutely so college tuition has been increasing steeply over the past twenty years and that's far more sharply than the consumer price index which is. the low now from one thousand nine hundred seventy one nine hundred ninety the

slopes were roughly the same between college tuition and the consumer price index but between one thousand nine hundred and two thousand we can see that college tuition doubled the slope of the c.p.i. and then between two thousand and now two thousand and thirteen the slope has doubled again while the slope of the. c.p.i. has remained constant. what have cars this skyrocketing cost of education well here we're just looking at to wish and cost we're not looking at the total cost of education so while tuition has certainly been increasing if we look at the total cost of education which involves more than just tuitions this is per student at public universities this is remained roughly constant and we're using the scale on that side. eighty percent of in romans college moment in the u.s. is that state and municipal colleges so if the actual cost per student is an

increasing their tuition is. great what is causing this increase in tuition well that's a good question for that we're going to need another graph and this is tuition as a share of higher education costs so if we look at fiscal year two thousand twenty percent of the cost of higher education was paid for by tuition whereas seventy two percent was paid for by the school by states state funding and we can see that slowly shifted over the years and there is in two thousand and eight there was a precipitous drop in the share that states paid and to make up for that students had to pay more a little bit more intuition and that meant maybe taking out more loans students weren't able to absorb a lot of these costs and so more loans and more more amount for each of the loans so how's the total amount that states are spending has increased as well. as. the

amount of you have been spending has actually decreased in some states but as a dollar amount what we haven't seen is we haven't seen a threefold drop as we've seen in the chart in the amount that states are paying for education that's made up for the fact that there are more people attending colleges so the same amount of money is out there. more or less the same amount of money is out there to see the same amount or more miles and there's not as much funding per student. or it seems that a lot of the shift is now going to the federal government has the federal government are they picking up the bill well what we haven't seen is we haven't seen the same default rate right now as as there was in the nineteen nineties but it's certainly been increasing over the past three years and we're talking about nonprofit particularly public colleges and while it's true that there has been a modest increase in the default rate for federal loans this is far lower than the

default rate at for profit institutions for profit institutions over ninety percent of students take out federal loans and these loans have more than twice the default rate of public colleges so this is the sector that is the most responsible for the increase in the default rate. so do you think it's more important for the government to increase competition or should the government won't more to make up for the well this is a tricky thing you know it's sort of the cycle that that gets itself we see more and more people taking out loans because because they can't afford the cost of and institutions and some people believe that this actually increases the price of colleges that they can they can charge to to their consumers so to say. thank you.

it's time for the day we all joining me now is prime minister producer bob great to start off a new week right here with you. thank you back so we have a great story reporters have admitted that they used the information that they gathered in the company's financial terminals to gain instant financial new now in a market where every microsecond equals profits should bloomberg employees be able to use the bloomberg terminals for reporting well it's funny how this came about because i think one of the reporters of bloomberg noticed that a goldman trader had not logged in for a while and she called goldman or he called goldman and goldman said what do you mean how can you tell that we don't have this log in information or that this

person has a log on and that's how the story came about so i think it's interesting that the chinese walls of bloomberg are not as strong as those that we see j.p. morgan and goldman between their prop and float apartments which is kind of a joke but you see them say well i actually feel that. why not. this is their time and all their infrastructure and their company why can't they use the tools they have well like i said they're supposed to be certain chinese walls between between different departments what i was getting at before is that if you're a j.p. morgan and you're trying to sell your client something you're not supposed to take information from other departments and use that to your advantage now it probably happens every day but that's the way it's supposed to happen so bloomberg is finally getting called out in this and it's interesting maybe you can go into a little history about how bloomberg came about they have almost a near monopoly on the business that they're in which is selling their terminals and here's a story from economic policy journal which i used to write for this comes from november of two thousand and nine and the editor is recounting exactly how this

came about and bloomberg in the one nine hundred eighty s. when he was trying to gain his market share developed a system his bloomberg system and he got a monopoly on what's called the inside so what is the inside quote it's a quote that primary dealers those that trade with the fed show amongst themselves when trading treasury securities with the fed back in the one nine hundred eighty s. the federal reserve didn't announce in advance changes in their fed funds policy you get a sense for what the fed was doing by watching what trades that was putting on this trading was done through the primary dealers and was reflected in the primary to primary dealers inside quote treasury securities so when the fed entered the market you could tell by seeing the changes on the inside quote as a primary dealers adjusted their quotes to the trades before bloomberg the only people that saw the inside quote were the primary dealers themselves and afterwards if you wanted that very insightful information you had to go to bloomberg well i

mean isn't that the nature of this industry you know those what that the largest computers when it doesn't the best infrastructure way so you're drawing an analogy to know. it would be the only one answer according yes it well it would be a money monday if we could get into co-location and high frequency trading which we will be discussing tomorrow. but i guess moving on to the next topic we have well ok so richard branson over the weekend he two and a half years ago he made a bet with tony fernandez and he lost the bat and the bet was team would finish first in the two thousand and ten formula one grand prix and i would dhabi and the loser had to dress and the other four other. flight attendants on their airline they both have airlines right and so the loser has to dress as a female flight attendant on the other person's i don't know if they were. lined up that they had addressed the female flight attendant and that's the level that branson took it to this. and i think we have some pictures. to have years to do

with the event kept getting pushed back because the royal wedding got in the way the house burns out in necker island but as a man of his words he kept his that and one of the biggest advantages to this was he raised over three hundred thousand dollars for the starlight foundation which is for seriously ill children which is which is great and i'm pulling for him especially with virgin galactic i'm excited to see this to go but i don't really have much more to say about this i want to start my own deal with service or variance and ok and honor of mother's day richard branson if you come on in prime interest i will host a fundraiser here in d.c. for your mother's foundation branson foundation which aims to help young girls and . rocco their education and business and health care now mr branson do you do you love how i think i love it i hope i hope he pulls through i hope he's a big prime introspect and. i think we have some news of michael dell to get into

our icon and picking michael. dell out of dell or you know his own namesake has this deal and i guess icahn has a proxy war. icon is trying to sweeten the deal dell wants to pay twenty four points. billion dollars to the shareholders for the company and icahn is offering a little bit more twelve billion dollars a share extra in cash or stock and this is carl icahn is of course the same guy who got into a big time with bill ackman on c n b c a few months ago and that was over herbalife and that's still going on and i can't wait for the next but maybe maybe we'll see dell an icon on t.v. well michael dell is the son of the founder of dell so you was there anything that he had done maybe that didn't help the company well i'm not an expert on this particular company but i will say in terms of carl icahn he is a very powerful and astute activists investor and that means what he's buying

shares in a company he's trying to influence the board of directors and he wants to influence what you want to have my shareholders meeting and yeah i would on this one and they might yeah in august they're supposed to have a shareholder meeting and the question is are they going to vote before that on whether or not to take this dell offer or are they going to hold out for icahn so it's a big deal. thanks for joining me thank you. today we got schooled on prime interest university we learned a lot about student loans thanks to professor shad block and two of our producers

fed mouthpiece john hensel rather serious and now over the weekend in the campus paper not much new but keep the rumors flying out the student loan are the student union john looks like the bloomberg crowe got caught cheating on cold but next time . usual discussion over the econ one hundred one at least the i.p.o. market is looking strong thanks to the fed's monetary gree and whether its chairman bernanke e-r. chairwoman yellen who conducting the grand tightening experiment we hope the q.e. lab is well ventilated the one point six trillion dollars in accessory reserves is quite the power and so richard branson all we can say is we're happy to vote you class clown thanks for watching and make sure you come back to prime interest tomorrow you can follow us on facebook at facebook dot com five time mention with all of us here have a great night. real

damage and complexity of this oil spill was not something you can grasp just by looking at dirty birds we have between four to five million people in this directly affected area of the coast and it's pretty clear why it's not being reported because b.p. can't afford to have a reported all along the gulf coast are clean they are safe and they're open for business and b.p. is the single largest oil contributor to the pentagon the u.s. war machine is heavily reliant upon b.p. and their oil this is a huge step backwards for the marker sea it's a step forward. carex it is toxic as it looked like spraying and b. and it was it was not a picture that either the government or b.p.

really wanted to have out there i don't want dispersants to be the agent. of this you know this. play. play play play. play . play. play. play. play

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sure can confusion that the associated press soft reporters for the new service find themselves targeted in a massive u.s. government surveillance operation. a cia agent carrying one hundred thousand euros in cash is called red headed and literally trying to recruit a russian intelligence officer also has now declared him persona non grata and says the incident still to a blow to the country's relations. and persian says he's against any actions that could worsen the civil war in syria that warning comes as israel's prime minister visits russia after his country was accused of bombing sites near damascus earlier this month. the video appearing to show a syrian rebel but in the heart of the dead soldier human rights watch to condemn in.