to keep all of quarterly profits go when the work involves high dividend payments alleged by the plaintiffs to be you serious so this might be the shareholders a last chance to recoup their money now the administration and visuals have talked about winding down the mortgage giants fannie and freddie already returned fifty nine billion dollars to the treasury after opposing high profits last quarter but most of that was due to a change in tax asset classification. and said even so again that's according to a stock analysts who estimates citi group could lose as much as seven billion dollars if the u.s. dollar appreciates against other currencies despite calls for bans on proprietary trading pursuant to dodd frank and the volcker rule which i have yet to been implemented by the way about half of the bank's profits come from such currency speculation and finally standard and poor's is bullish on the ads but no one seems to care at least on the market two years after downgrading as outlook on the u.s.

to negative the upgrade to stable was not a market mover nonetheless as m.p.'s cited economic resilience and monetary credibility apparently a batch of bernanke kool-aid has and once again been served at the really big. and here is what's in your prime interest. now with all of the new technology creating the crowd funding landscape it's important to recognize that crowdfunding is. not

a recent phenomenon even at the statue of liberty you have crowdfunding origins in the late one thousand nine hundred the committee overseeing the statues completion lacked the funds to its pedestal so it joseph pulitzer the publisher of the new york world newspaper urged his readers to help fund the pedestal within six months he was able to raise over one hundred thousand dollars or around the six million dollars today and most of the donations were under a dollar now flash forward one hundred twenty five years and internet companies like kickstarter and mosaic have taken off thanks to new and invitations and fund raising but there are also many regulations limiting the use of crowdfunding and he currently a hedge fund or venture capital firm looking to attract investors cannot advertise however under new jobs act provisions venture capital firms can now advertise to attract investors but they must verify that all purchasers of the securities are

accredited investors as a stance now a potential investor only needs to check a box to claim a credit investor status in a private offering but new standards impose the burden of proof on companies and regulatory guidance on this is very murky well earlier i talked to ted sol of and he is the chief executive officer of micro adventures about how raising capital has changed over the last few decades. bencher capital started out as operators are entrepreneurs build businesses and have exits reinvesting capital into startups to grow those businesses into the next you know big businesses future . they kept their networks very very tight and close and formed kind of an old boys' network if you will individuals who have access to early stage startups and to that community in over time because of things like the implosion and things

that are happening no wait securities laws and regulations that change things like the jobs act in have been passed. more transparency has been created in inside venture capital so much to the point now there are starting to become ways that better credit investors can really participate with the same level of information the venture capital really only had access to in the past. well how has the funding process changed in terms of risk taking and other words our investor is taking on more or less aggressive in the early stage and. i'm not sure of the profile has changed that much yet but i think that the risk profile is changing and the reason it's changed is because of things like big data and then crowd it all use the example. see the coward's way to the county fair so if you went to the county

fair and try to guess the county gets the cows way if anybody did they'd likely not the expert however the crowd statistically as a group does the expert every time and so getting the momentum and deep and wide domain experience of the crowd involved in those startups the might be the next you know google or apple or whatever you think is a is a great company. increases getting a probability to move is being enabled by by really you know the crowd right now and that's never been possible before i hear in our g m how does crowdfunding fed into venture capitalism and the fund raising and general. there's two types of credit for me right now those would be crowd funding which is a very small part of what crowdfunding is and it's not necessarily when people

think of as credit phoneme and there's her base for being so purposed crowdfunding you can find on sites like kickstarter and indie go go you can actually receive a return on your investment in those types of what you might think of as an investment so if you invest in company a they'll give you an early release of their product or they'll send you a hat or or a sticker or something like that if you want equity you have to be at this point in time due to securities laws that accredited investor which. by definition it's an i.c.c. term so just make a certain amount of money or have a certain amount of network but it really means is that you can afford to lose by your take risk in the eyes of the s.e.c. . those in those types of situations are those platforms the exist that allowed him to do what he crowd when you can actually it's invested in a company and own back what he either directly or indirectly in their company and

the conduit for that type of investing instead really existed until very recently there are ways to become involved through maybe a broker in a private place and getting relaxed that information and getting really deals that open source more by the crowd has has not happened in the past that well are you and what does your business micro ventures do in the crowdfunding space. so we're in the smaller category of crowdfunding platforms we were fairly early in the space for the only player in the space with with a broker dealer which is quite important well everybody else is trying to get a broker dealer approved but they are having a hard time because it's it it takes more than filling out paperwork with with the c.d.o. to become a broker dealer it takes experience in the securities industry with transactions and you're well and good good record you know with clients and that sort of thing.

that a lot of people who are trying to get in this space are very new you know their hearts were as they think it's a neat opportunity they think this is going to be great but they don't really know what they're doing or know how to do it the process is being held up for almost all them. that coupled with the fact that there is an inherent conflict if you're not a proper dealer doing these transactions in the sense that there is no. diligence or providing real information to. to the people on your platform so if you're a good investor on our platform you have access to detail financials and so the company to receive questions answers you know we we that the not only the individuals on the companies but but the actual information that they produce we do criminal background checks as well other platforms don't do that they let the companies self report whatever their numbers and information are i personally feel

it's a disaster waiting to happen so i may be a broker dealer is a huge differentiator for us and those people that are on the path to becoming a broker dealer on the right track what are some of the pet possibly the companies that raise money without their oath and ability to terminations being made and know your customer rules being followed can this hurt their ability to raise money and they can tear. sure there's a few ways that could hurt to the one that a lot of people think about is having an investor is invested in a competitor's offering so they may actually not be investing in order to look forward to the success that company but they may be just trying to invest to get information so that they can have their other bigger investment you know compete with that investment so knowing who the customer is what they're for their investments are what their background is what their education is and things like that is extremely important i think that falls into another category of automation

in this space where platforms are you know what the side of companies listing or the putting of their order from asia if you automate the process of bringing platen customers on the platform and actually don't speak with them and build a relationship with them a you're not going to be able to understand what the needs of your customers on a platform or and b you're not going to be able to read the right clients or investors to a company that's looking to raise money or. if you do things that are by the book and following securities regulations there is potential also to have a deal on while so you as a company could go and raise money on a. maybe they cut corners or some stuff in the gray area see looks back on that two years from now says you know that offering was was not legal we're going to have to we're going to have to wind it essentially so company has to give the money investors get their money money money go on you know who knows but but the outcomes

serve attention the quite bad. i will go back to automation is this something that you're possibly looking at in the future as a strategy for vetting potential investors. we are it is kind of a balance balancing act that we're playing because we want to automate the process to to on war investors if we want to lower the cost for our company so that we can actually maintain. profitable status. but we don't want to lose that interaction with the people on the platform we don't want to be driving the company aggression that is in line with with the people on our platforms desire. it's incredibly important so the base our direction back from the people are for i want to get into the politics of all this protest a minute what about the status of the crowd i think might display sand and other parts of the jobs act where is it in the end that will making process. so jobs act

obviously was was passed there were a number of things that were going to be enacted by the f.c.c. rules that were going to be made that were going to be made and approved. the only rule that is really material the has been approved was changed in a cat table from five hundred best years to two thousand. and three months and. there are a couple of things coming hopefully the boy is live to be in a general solicitation allowance of not accredited or under credit investors to participate in these types of transactions neither of the latter that are approved and i think yes you see me but the big general suspicion sooner than later it's hard for me to wrap my head around how they're going to allow her investors into this space not that they should be allowed to because i believe they should

but making sure that there are enough safety measures that are that are taken so the the wrong people don't enter the space and create. issue for individuals who are and who might. be doing more of. making sound investment decisions you know with these types of things because it is a very high risk i risk asset class even if you increase the probability of. successful deals through crowdsourcing it's still a risky asset class early stage investing is and always will be. and that was ten sullivan the c.e.o. of micro adventure marketplace and stay tuned because up next prime interest producer and justin underhill flushes out the fear and acts for viewers the vix that is and tells us what might be in store for our financial future then bob inglis and i had to all over three d. printed shoes and the new apple i phone to ask.

you know how sometimes you see a story and it seems so for lengthly you think you understand it and then you glimpse something else and you hear or see some other part of it and realize that everything you thought you knew you don't know i'm trying hard bargain is a big picture. i would grab it as questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on r.t.

question more. you know i think. you.

do. not want. to thank you. thank you to. the.

the stock market keeps climbing higher and higher with the dow and s. and p. five hundred index reaching record levels in the past month on the other hand the volatility index also known as the vix have columba did it too remarkable roles over the past year for more on volunteer volatility we turn to prime interest producer adjusting underhill who has an in depth analysis on the vix to siena what do we see going on with the banks all the volatility index or the vix is the market's expectation of thirty day volatility or price range and it's calculated on

the options on stocks of the s. and p. five hundred and as a reminder the options are the right to buy or sell at a pre-determined price and a lot of people buy these options as insurance protection which is why the vix is also known as the fear index as investors become more concerned about market losses the cost of insurance or options goes up and in this graph we have a graph of the vix index which is in green and we have a graph of the s. and p. five hundred index which is tracks s. and p. five hundred stocks now you can see that almost they almost mirror each other so when the vix is up the s. and p. is down and implied volatility one place volatility remains fairly low is during during bull markets during two thousand and seven lead up to two thousand and seven and more recently we saw one of the bull markets were going on we had low

volatility and that means that investors aren't as worried about an immediate price the client in the market on the other. hand when volatility spikes the market plummets and we have three major spikes on the scruff the first one came right after after lehman brothers that was right there and we'll get to that in a minute we also have this one right here and this was during the flash crash when the dow dropped more than a thousand points in a matter of minutes and this was exacerbated by high frequency trading now the third one was right here and this one was during the debt ceiling debate of two thousand and eleven now in all of these events there is a lot of uncertainty and there's a lot of fear and that drove implied or expected volatility as well as realized volatility up while the market drops now let's take a closer look at what happened during a volatility during the lehman bankruptcy and we can see in the in the next graph that of the vix futures and this is from current time to eight months out and let

me get this cleared. from current months out we can see this yellow line which started in september of two thousand and eight right after the lehman brothers collapse and initial volatility was fairly high but it was expected by eight months in the future to decrease over time and investors thought that the market would eventually become less dangerous whereas if we look at august of two thousand and twelve which is marked by the green line right here we can see the lowest it was the lowest vix in five years by the way and even though it starts out low. comes it climbs higher and higher and higher over the eight months period and this means that buying long dated insurance when the market was doing well was very expensive and that's more expensive than the long dated volatility of insurance after the lehman brothers collapse and

a low vix index does not necessarily mean cheap volatility well with the. being at a five year low is there any way to predict when the next bite will occur well a lot of that depends if history is any guide a lot of that depends on what the federal reserve does so if the federal reserve decides to raise interest rates that will affect volatility the vix index and also if there's liquidity sucked out of the market at any point that will also have big impacts on on volatility but it really depends on how fast the fed decides to take away the punchbowl and talking about the federal reserve how has their bond buying program through you whine q e two three how has that affected the begs well when the fed engages and q.e. purchases a large scale asset purchases they're taking. they're taking securities out of the market so they're putting them on their balance sheet and so the banks and primary dealers that own the securities no longer have to hedge against them and housing is

a form of insurance protection and when they unwind these high edges the cost of insurance across all asset classes drops and so in that way that effects the vix as well and so with that you can look at the fed and what they're doing because the fed doesn't hedge against any of the assets that they take on the fed in some ways you can consider them as taking or sucking volatility out of the market thank you so much as just seen on your how do you. welcome to the daily deal with bob english. you know where they were made probably overseas somewhere vides shoot technology has taken

a step forward several companies including nike a deal. and new balance they've all reported that they are prototyping customized shoes using a three d. printing and i have your picture of that new balance released showing a plate on the sole of the shoe the so-called additive manufacturing add super dynamic enervation to everyday products that were once only driven through the aerospace industry these shoes are not ready for consumers they take two hours just to print one shoe but it kind of opens up the idea of where the future of shopping could possibly go or the future of counterfeiting because you could theoretically take one of these designs and download it over the internet what are the copyright law is going to say about this it's really interesting because it's an emerging field and the courts have yet to weigh the patent system the way they have on the copyright system which has already been tested through napster and file downloading

through that and such why i still think that it's important to move on with technology of course we want to innovate here i mean this could improve our standard of living having customized they prototype them on several athletes and you just imagine having a superbly made for your foot the way you run the way you do what that could do to the sports industry maybe this forest industry could make it illegal i use that as a. source to have. i don't tell that to lance armstrong you might have some problems with you know it is a legal to have the compressed socks if your answer and. i did not know the three d. printed. for there is not yet now you have read probably will see them eventually ok . but also this week is apples and you will worldwide developers conference as one of their biggest events of the year they announced products they have speakers work it's supposed to be an exciting event and there's nothing better than what the

market think of this well let's take a look at how the market has responded we have a graph. apple's stock price over the past two days now at about one o'clock yesterday it started to tank and what did they do at one o'clock am twitter account . you know they announced their new products so they're going to have the new macbook pro according to apple it will be available later this year it has the latest and greatest of exxon processors fire pro g.p.s. ok let's lots of great stuff in there but i think people were a little bit disappointed that cook didn't have anything really groundbreaking to share and he's filling some really big three d. printed shoes here now that steve jobs is gone and people expected a little bit more apparently what does this bode for the long term future of apple stock we'll have to see i'm sure these these innovations are going to help people

who are already in these apple products who want the new ones but you know it's not the next i phone it's not the next i pod what do you have to offer well he hired lisa jackson who was the old head of the e.p.a. and she did a lot to influence the environmental agency i would even say she was chief of staff under john corazon and of course of the most global thing just to throw that in there a lot of a lot of ties but if you're not happy with your i phone product apple announced that they are going to reintroduce this apple phone trade in program supposed to start later this month and i said to entice user is rumored to. start later this month and of all anti caesars to upgrade their i phones just to be sure they're going to be selling they're not going to be dumping these refurbished i phones on the u.s. market they're going to be bringing them to emerging markets because i phone because apple wants to sell i phone five here of course and what's interesting is a lot of these companies like you already have buyback programs i think two hundred

dollars or so for a i phone four. so you can basically get an i phone five with no money down just like a car and in this no interest rate or low interest rate environment and is interesting that they change the chargers as well because you can't use well right solid or buy from buy so all sorts of new reasons to get the i phone five move forward with innovation there you go as you're saying with the suits so thank you for weighing in on today show if you want to leave your comments please follow us on facebook at facebook dot com slash prime interest and you can follow bob on twitter at english p.i. and you can follow me at perry and r t bob thanks for joining i do. and

it has been a day of opinions on prime interest fannie and freddie shareholders think they're due some just after the government crowded them out in the two thousand and eight bailout and mr peabody went on a limb and to claim investors should dump city shares thanks to some stacked one way bets on the greenback. revealed its two thousand and eleven call animal spam citing monetary credibility which we find and credible and it's tema sullivan of micro ventures that didn't hesitate to speculate on the future of crowdsourcing we just have to get the f.c.c. in tow now and just steam peered behind the cloak of fear engulfing the begs to reach a startling conclusion thank you so much for launching today show time perry and boring it this is going to interest have a great night. wealthy

british style. pastime. market why not. find out what's really happening to the global economy with max cause or for a no holds barred look at the global financial headlines tune into kaiser report on our. preparations for the first woman cosmonaut was strictly classified. even her own mother knew nothing of the imminent extraterrestrial voyage during her second dog which there was a terrifying and unexpected emergency. one wrong move under segal may never have

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