sewage department is accused of charging exorbitantly high rates to vocal residents and placing the burden of the city's freeing tax base upon the shoulders of its poorest citizens now as detroit struggles to shed some of its eighteen billion dollars in debt a partial privatization of the department is now being considered reporting for us from detroit today is our meghan locos. name standing here in detroit right outside of the detroit water and sewer department and this is a building in a department that is really coming under a lot of scrutiny lately and that is because it's starting in march it started shutting off the water of people who are two months or more delinquent on their water bills so far ninety thousand residents or more oh money to the city forty five thousand notices were sent out in may alone saying that people need to pay their water bills or the city would in fact to shut the water off in may alone they shut off the water of forty five hundred residents within twenty four hours a sixty percent of those residents were about twenty seven hundred people actually

came into this building and either paid off their bills in full made a deposit or made special arrangements in order to have that water turned back on i spoke earlier with the detroit water and sewer department a spokes person named gregory and he says that because the city is in such dire straits they have to take whatever measures they can to help people understand how important this issue is we're not the only ones that where that is a consequence if you don't pay your bill. we know. it's bad debt collection and so as you heard mr you know say there they're trying to commission feels that some of these people are in fact able to pay their bills but are choosing instead to pay there for a rise in bill or their electricity bill because never in the city's history have we really seen a mass water shut off like what we're seeing now now activists on the other side of the spectrum are saying that that is not the case. but the city is already in tough

economic straits and that people are simply having to choose now between taking their medications and paying for them choosing to pay for the food for their children and paying for their water and a lot of them are going ahead and making those tough decisions so i had a chance to speak with somebody from the detroit whiner brigade who kind of talked about the severity of the issue and take a listen to what he had to say how could people pay their bills when you don't even know people situation you know people may have lost their jobs they have their pensions cut their social security many of the how can we generalize that people are just not paying their bills i refute that you know one hundred percent so just to kind of go over some of those unemployment rates that were being highlighted by the detroit water brigade another activist organizations there is a forty percent poverty rate in the city of detroit and also in eight percent unemployment rate you have people that are having their water shut off on a weekly basis the urgency of the matter is becoming a very serious and groups like the detroit water brigade are doing anything they

can to help they're collecting plastic water bottles they're collecting filtration systems and handing those out to families who are asking people for joe nations of water jugs just to be able to do anything they can in order to help those people be able to not only drink water but flush their toilets wash their hands and take showers so as you can imagine this is beyond drinking water and being able to get that glass to water in a really hot day like this it is about sanitation it is about public health so right now we're watching and waiting as this whole situation kind of plays out people are trying to figure out how exactly they're going to get water for their families a question they just don't have the answer to at the moment reporting in detroit michigan. r.t. . now it's the middle of a hot summer but for some reason we're still talking about the lousy winter in the first. order of twenty fourteen but this latest bit of news is serious the data

says that the economy in q one contracted two point nine percent now it was a nasty winter but was it that nasty edward harrison spoke to john mauldin of modern economics and the author of code red how to protect your savings from the coming crisis to get his take on the situation take a look at what he had to say. i want to get you to your book could read shortly but let's persist up with the data coming out of the us a negative two point nine percent g.d.p. figure out for coupons definitely and that's pretty awful are you surprised. oh you know i mean. is is this precisely what i was talking about last summer when i said that i don't think we understand the unintentional consequences the economic consequences of obamacare. and

what we're seeing is that with the higher deductibles and people are having to pay we're now it's we're not forcing transparency into this into the system because when people have to come out of their pocket with more money they're going what i do a lot of the paying for what it was about do i really want to do this do i want to spend five hundred thousand or whatever that number is and. so part of that sort of a rational response if you will the other thing is that the big hospital that i'm talking to. you know eighteen billion dollar hospital systems that i'm talking to management in you know they saw this coming they were already planning for lower numbers and that there are they are beginning to plan for even lower numbers and lower numbers over time though they've seen a rebound. in spending it still down and down like they're expected but it's not down as much as it was in the first quarter so. we're going to see

a little bit of a rebound of a bounce back if you will people can only postpone certain things so long will you know it's a good point because a lot of people are saying q two is looking good i mean obviously this is the backward looking kind of thing in the markets are forward looking so what's and we really take away from these numbers given what you're saying well i mean we saw we saw an odd mix of inventory of we're not seeing it even though employment is is a lagging number we're not seeing it in the him and the employment numbers there's a lot of other things that you know or if not irrationally positive they're not negative. so i would expect that. we'll see some kind of a rebound i don't think we're going to see you know a swing back up to four percent. if we could get through the year with the full two percent. for you know year over year that would be great.

i think frankly two percent a year for the next five or six years through the end of this decade just like we did last decade we did one point nine percent on average the last decade and i think you will get through this decade with you know one point nine or two percent that's about as good as we're going to get we have some structural headwinds in this country that. we're just not. getting around to dealing with our government is creating more and more cost the bureaucratic and regulatory overreach is staggering the those headwinds i have got to be dealt with and if we don't have a significant change in that attitude of allowing. your ocracy to run wild it's not going to change a speck a gui even if let's say we get some massive new reformer who comes in in two thousand and seventeen two thousand and eighteen before anything happens and

then you've got. to a couple two or three years for people to be able to respond and so were you know you kind of built a muddle through world which is what i was writing about two thousand and two and two thousand and three. and we're going to feel that we're going to be right in a muddle through what for a very long time i was in ask you it's good that you mention that i was i was thinking about muddle through you are you wrote the book and muddle through i mean how is or is not how is this data muddle through or is not muddle through in your opinion well. this data is a lot of what all this stuff. we're going to we're going to reset how much we spend on health care and the simple fact is that in four years we will be spending twenty percent less on health care than we were in two thousand and twelve

. and that's not an unreasonable thing. in terms of our economy in terms of what we can afford. but that is a huge had when we needed twenty percent of the economy and you say hey we're going to slash twenty percent of the income from that sector well that's a four percent g.d.p. headwind over four years. part of it was inventory cycle part of it there was the weather factor. you know north of the texas border it was it was a pretty nice one here in texas. but if you get much further than tulsa oklahoma city and you know d.c. you guys in the north had at a pretty cold terrible as. it so. there was some of that. we've had a lot we had a little bit of a rebound. homebuilding last year but it's flattening out.

the you know people keep looking at. the home building statistics for instance and you see all those charts and you say well we're climbing back and i'm going no where we should be. and that means we have a growing economy with with household formation and you have to replace some of your homes over time anyway and that's about where we are we've got three million too many homes and the bulk we more or less absorbed most of them the big bulk of them so now we're just normal house building well. we do mean to make good because if you need to lose to the bottom it's just going to be there and so we're reset it to come to some new normal standards and we're going to have to create a new little bit with health care. we'll grow around it because we were part

of you're doing fine but that's why you look through that's why you don't get this four percent. compound group that was john mauldin of multan economics. time now for a very quick break but stick around because when we return did not know render a is on the show to be a is the founder and c.e.o. of some zero and he's giving us his take on technology finance and the future of investment and remember you can see all segments featured in today's show on you tube at you tube dot coms logic boom bust archie and on hulu ad lulu dot com slash boom and dash bust but before we go here are a look at some airflows the numbers at the bell come on back about.

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welcome back to the show now technology has become one of the defining areas of our lives from unbending the taxi business to ultra fast high frequency trading so i want to check in with. the c.e.o. of some zero to get his take on technology finance and investment now some zero is an online community of investment professionals from hedge funds to mutual funds to a private equity firms which aims to change the way that investors share information with one another now i first asked to view his thoughts on the term networked economy catherine austin fits a recent boom bust guest use this term to describe a major economic shift towards technology based systems now i want to know if divya believe that we are in fact and a technological shift to

a networked and cloud based digital world here his thoughts. suddenly seem more and more. you know more and more folks in the world utilizing the internet and sort of online social networks to you know i think supplement their real world networks and you know i think when you look at the the online network landscape you obviously have some very large players like facebook and linked in. you know kind of applied to very broad. you know user bases or types of people but you also have i think a lot of news networks that are becoming more and more useful as people sort of realize that you know. some networks are more tailored for certain things than others. now what are the challenges that companies face in monetizing a more mobile centric world. well i mean there are obviously physical. limitations to you know mobile devices they're they're small whether it's

a full of phone or a tablet. you know i think for the folks in the ad tech world that itself presents a challenge. and i think you know there's there's a there's a bit of a lag between you know you look at kind of how companies have traditionally advertised you know be it in print or on television kind of trying to understand and quantify the of of advertising on mobile devices that that transition has taken time but certainly that we've seen a very big shift in mobile ad revenues or revenues moving from traditional media to to mobile devices i think people are catching on what in the financial services space how is that network the world changing the way hedge funds mutual funds and private equity firms share ideas and disseminate information this is definitely a wheel house here with some there as i'd like to get your take yeah definitely much more my wheel house you know when i started some zero in two thousand and eight we definitely got a lot of pushback from both sides when analysts as well as compliance officers that

hedge funds that you know who are basically very much against the idea of sharing information i think now they're starting to warm up to it and we're seeing much more information being shared online and i think you know for our members you know in some zero they're seeing so they're seeing our website is not just a way to you know access proprietary information but ultimately helps them do their jobs and find investment opportunities but also as a way to build their brands and reputations as a way to attract capital and really meaningfully drive their business in a way that wasn't possible you know before we built the sub-zero platform so i think it's actually pretty exciting to see the transformation kind of transparency becoming a more standard course of the industry or a kind of a more common theme in in the. versus you know maybe the opaque reputation that the hedge fund industry out in the past that actually leads well to my next question

but i want to ask you do you see anything in this space that makes you think that our networked world is leading to a better information flow to individuals and retail investors. so for resale investors you know one of our goals is actually to not only aggregate the information that we aggregate and make it available to professionals but ultimately to make it more accessible to retail investors as well. you know it's not something that major focus of some zero right now because we can only tackle so much that you know at once but i think there's no question that as we sort of you know continue to build a platform out continue to aggregate research that we're going to have. you know something that would make a lot of sense for the retail investor and get away from a lot of the i think a lot of the noise that's generally out there in the markets you know where you have retail investors investing on recommendations made from people who are you know maybe have

a significant blog following but don't necessarily have the investing credentials that you know you'd expect from somebody promoting a viewpoint so i think our whole goal is really to to make sure the signal to noise ratio is as high as possible so when you know when we aggregate data that data is actually meaningful it's not just you know full of randomness and people just simply talking their book but you know we spend a lot of time thinking how do we sort of inject incentives into some zero such that the quality of the content is really high and then we can figure out how to disseminate it to the right people including retail investors now do information portals like twitter help level the playing field for retail individual investors in terms of information flow. i mean personally i think twitter is a dangerous tool to use or to rely on for an. vesper purposes simply because there's so much the number of tweets or you know we're talking billions of tweets i mean of that you know some subset is going to be directed towards financial

commentary. and then of that i think a very small subset subset is going to be coming from individuals who have real credibility within within the investment world and i think you know i have come across you know other people and companies that are trying to make sense of kind of all the financial commentary that's that's actually on twitter but it's it's dangerous because there's you know there's a big credibility issue and there's a you know you want to be able to filter that all of that all of that data in a sensible way and i think that's a lot harder than some people you know might think it is now can you tell me a little bit about the fact that the tournament to generate investment ideas what is the purpose of overturning and what do you expect will come out of it. yes so one of the things as i mentioned before we're always trying to come up with ways to compel our members to upload not only their their ideas but their best ideas and

the idea behind this tournament is to give them a tangible incentive to share our highly proprietary data onto our platform so fast it was kind enough to sponsor this contest they've you know put up a lot of money we're going to be giving out one hundred sixty thousand dollars in cash prizes to the winners of of this fax a torrent series which consists of four separate contests the first one was actually just added on monday and it was focused only on international stocks so companies outside the u.s. we have one coming up that's going to be focused on shorts one that will be focused on credit oriented ideas and then one focused or one contests split by market caps will have a small cabinet cap large cap contacts or contests and the whole vision is to you know really kind of give emerging managers analysts and portfolio managers who aren't necessarily super well known in the industry a chance to stand out and showcase their best work product and to do so in a competitive environment amongst other really smart investors and we set up an

amazing panel of judges that consists of you know really some of the luminaries in the investment industry investment management history to valuate you know who has the best ideas and at the end of the contest what we're going to do is have a grand prize winner. where their grand prize was actually based upon the actual return and performance of. of the winning ideas and we'll pick the best one and we'll see how it goes. that was dave founder and c.e.o. of some zero time now for today's big deal. big deal time with my partner in crime mr edward harrison and today we're talking about net neutrality the supreme court and the future of the technology industry a lot of stuff there said word are some interesting news to talk about from this past week and i first want to talk about tim with the man who coined the term

network neutrality that's a big term we're hearing it all around lately and most people don't know what it means because it's kind of it makes sense when you can find it but it seems like tim is you know taking more than just an advocate stance here when it comes to network neutrality so can you tell me what he's up to what this is all about you know what i've heard is that he's running for the telling the governor of new york i know what you want to go to action in terms of network neutrality in particular one of the issues that he's looking. for a cable that merger and that's a big merger in the new york area because tom were the cables there he believes this is a competitive that it's going to reduce competition in that space and therefore he wants to block it and so he's running on a platform that includes this as one of his major tenets now yes this is new rules they're up for public comment and they've received a ton of criticism it's not it's not a huge hugely popular thing so what's to take on this. is interesting what he's saying basically is that net neutrality as we know it the way that we talk

about it there doesn't exist because basically the middleman has been caught up so if you look at the middlemen the traditional middlemen which is a broad and backbone provider like level three really when you look at all the tier one providers that don't have to transit through other networks in the world there are only seven of three of them are actually. facilities based providers here in the united states that are you know last mile i like. our arise one eight hundred eighty s. another centrelink is another and then the fourth out of the seven is actually sprint which is a mobile telecom operator so these guys are middlemen as well as the ones who are provided in the last mile so what he's saying that's all wrong because basically what it means is is that you have the content providers hooking up to these as broadband providers and then them hooking up to themselves to the customer so they

can take on both sides of the of the coin they can say you customer at the last mile and they can say to the content provider pay up when there's no one in between those two and he thinks that's a competitor i mean it sounds pretty anti-competitive to me but it also sounds awesome if you're the one you see here getting paid on both hands of course they want to stick like us but now tim well he's all about trust busting that's has been termed but let's talk about another intersection between government and business the recent supreme court ruling on area t.v. basically found that areas business model so legal sideward what's your take on this ruling i think that basically you know given the lack of trust of people in our institutions in the united states it's interesting that you know the supreme court has you look at this deal and you think. you don't think immediately this is the supreme court and therefore i accept it rather you think there's something wrong with this deal and i personally think there is something wrong with this deal and we know for. back in the one nine hundred seventy s.

when we had v.c.r.'s the v.c.r. was almost made illegal by one vote and that was what antonin scalia said in his dissent he said you know we wouldn't have the v.c.r. if we went along with these things and this is going to be it's going to have a negative effect a chilling effect on the industry going forward and i believe that's actually going to be the case now i want to ask you what are the implications of this ruling from his. cloud based systems and cloud based computing you know and copyright laws in the future you mentioned the chilling effect have a chilling effect i think that you know you look at a company like aereo and they know that you know we went all the way to the supreme court we lost if you are a startup in this space and you're thinking i want to get into this space in any way shape or form that that is going to compete with the existing infrastructure with the existing players you're going to think we'll wait a minute you know these guys are going to use every part of the law to keep me out there used to copyright their patent protection and therefore i'm not going to get

in there i'm not going to innovate customers are therefore not going to get because of things they want there to be beholden to the existing companies and again you know that's negative for competition and it's negative for the vision or on ultimately and as always thank you for your time and your insight that's all for now but we love hearing from you so please check out our facebook page facebook dot com slash boom bust our teeth and please tweet us at edward from all of us here and thank you for watching. the to. lead the

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sign. ukraine's president signs up for closer ties with the but it was his predecessors failure to join the club which ignited this deadly february revolution on the ongoing armed conflict in ukraine's defiant east. just hours before it's set to expire ukraine's president extends a cease fire in the east for another three days but it's a true special ready seen both civilians and national guard fighters killed in the latest confrontation. syria's embattled rebels are now in line for a five hundred million dollar military aid package from the u.s. but there are fears the weapons could end up on the wrong side of the barricades.