as the men lead lives of quiet desperation and maybe these tourists found out as a way out of that desperation that we all feel some degree i don't believe in killing innocent people. but i do understand the want to fight the worship of money and materialism that drives our golden calf society if our society could focus a little more on the internal rather than the act. maybe we'd all feel a little less desperate and there'd be fewer people desperate enough to commit a heinous act of jihad as tourists or as residents tonight let's talk about that by following me on twitter at the resident.

technology innovation all the developments around russia. the future covered. there i marinated this is boom bust and these are some of the stories that we're tracking for you today. we're talking tech on today's show and first up facebook is getting into the t.v. ad buying business we'll tell you all about it coming right up then how are the winds and the co-founder of the stock twits down with me to discuss all things technology in particular what's going on with tech companies lately and you definitely don't want to miss what he has to say about subject and with the boom bust the line off to vegas after the show today for the black had twenty fourteen conference we thought it appropriate to bring you the final part of our interview with mr bruce schneier now bruce tells us his thoughts on n.s.a.

reform embedded computing systems and open as a cell phone now to get to. our lead story today on this tech centric episode of boom bust facebook now facebook is getting into the television ad buying business and it's going to be amazing i mean amazing for advertisers that is according to facebook now facebook executives argue that by using the site's massive analytics they can help advertisers reach exactly the right audience and measure exactly the impact that their ads have they can do this by tracking the searches social connections and histories of their one point

three billion users worldwide now while television remains the dominant vehicle for advertisers trying to reach a mass audience facebook claims that it can get your. product in front of the eyes of would be buyers far better than traditional t.v. ads now mind you they've never done this before and most people don't watch t.v. on facebook so how they think they can do this i don't know but ten years ago when facebook began selling ads marketers doubted the value of this type of product placement and facebook has been conned that in some of those doubts basically all of those doubts ever since and while facebook made one point five billion in profits last year on one point seven billion in revenue today the social media giant is seen the benefit of promoting its t.v. like qualities especially given that marketers spend upwards of two hundred billion dollars a year on this particular medium now according to an article published in the new york times this past week quote a few years ago the company was telling brands to increase the number of people following their pages now which says fans are largely irrelevant until late last

year it was promoting the power of ads in such in which people's likes and comments about the brand were turned into endorsements sent to their friends mind you they got sued for this civil action lawsuit so they went away from that but anyway back to facebook switch gears again now embarrassed about its ability to pinpoint potential customers on their cell phones so if you've had a hard time keeping up with how would watch is the best way to promote your product on facebook you are not alone facebook has changed its pitch so many times that marketing execs are now quite weary and as they should be i've said it before and i will say it again facebook does not care about you. them to your.

howard lindzon is the co-founder of the finance oriented social media company stock twits as well as a serious and i mean serious angel investor and early stage tech start ups now i want to get his read on what's going on in the technology space right now particularly with pre i.p.o. companies i first asked him about some of the concerns surrounding valuations among startups and new tech companies here's what he had to say. on the valuations that you're seeing in this earnings for years at the revenue floating is not just because the social world dollars you know new york times had a piece about facebook and they killed it for this fish oil company. one example and on twitter there is money starting to flow in pockets and if you think about all the t.v. money that could end up on social you have the revenue beat which is just generally good compared to nine hundred ninety nine when you know the revenues kind of fake

everybody was well. you know there were no mobile phones and there was no social. show so i think this pocket of silliness continues it's been you know some sharp by gaon along the way but you know if you look at priceline for example it's an internet company and every talked about price on both really it made a great acquisition in booking dot com which is basically a travel through an online travel agency which is you know the largest global travel agency so a lot of these companies just have solid solid businesses behind them and valuation wise though they're stretched and hard to swallow with interest rates remaining low and with revenue growth. there. is so much money on the low end so there are so many start ups you continue to have acquisitions etc so it's just one of those. environments and it's really hard to predict you know how this an. hour

and we've talked a lot about her on the show because it's emblematic of both the promise and the risk in the tech space now it's currently in over one hundred cities and it just made a move into the target rich business travel market that's all good and what not but it's its latest funding round valued the company at eighteen billion dollars why are pretty i.p.o.'s i.p.o. companies like getting such a rich valuation that's my question. yeah i wish i wish i could tell you an exact answer as occurred this crash of the mind or the. the key here for over is it's global you know when a.o.l. came out in nineteen ninety six ninety four with yahoo you know yahoo became big in japan but i mean as a global global franchise this just didn't happen and then you had the bear market in the crash and you had another boom and you had the real estate crash in this

mobile social and local boom barons are global right away whether it's through acquisitions or just through execution right invented this tap to you know excess inventory and i think the market's giving them the larger valuation because they are such a big leader like you said they're in one hundred cities they're probably in thirty countries and the margins are so good in the opportunity because of their execution to date and amount of money they have from google is such a bad although they'll be competitors in a lot an inch players in this business you know on its way to being a one hundred year company a lot of companies a lot of entrepreneurs say they're building hundred year companies by. there are certain companies that are going to be one hundred years from this facebook twitter . air b.n. b. now raising half a billion a nuber raising the kind of money they can use or for companies that have business

models and brands that are going to be here one hundred years and if you look to change a one hundred years ago and said you know jane jane is going to be a hundred year brand you still made money if you got the fact that it was going to be a hundred year brand and i think you know mutual funds and hedge funds are thinking like that and so they're holding their nose or not thinking about today's price because these are hundred year companies. howard a big part of the job of your fund its name and social leverage is helping a company's to series a round so what do companies need to do to get that far and to get beyond series a financing to additional rounds then ultimately i.p.o. or acquisition. great question number one thing we think about is we're not large enough fund to make sure our company you know nothing going to get acquired right away we're not big enough capital and users to make magic happen so our goal is to find companies and management teams in opportunities that will appeal we

think with half a million to a million dollars to investors further along in the life cycle so that's that's our job as angel and micro v.c. whatever we're going to call it our job is to spot jockeys and spot industries in companies that we think can get to the next round at least that doesn't make a fund what makes it fun there are ours and that's why you know the best guys out there have the best guy or ours and they raise the most money but how you build a brand in the angel investing business is to make sure your companies get to the next level otherwise you have no shot show it's a number one thing we think about and that comes from picking you know being able to understand markets and understand trends right now i believe the fin tech industry where our fund is focused a lot is in this massive trend so i rather fish where the fish are and try and find companies that are going to find interesting in six months to two years and that's kind of how you play the game a lot of it is just understanding how markets work. howard spoke to did

drive recently and he's the founder and c.e.o. of sound zero and he was also one of the founders of connect you tube facebook with the winklevoss and but you know it's a finance focused tech startup and he says finance is the next big thing for tech startups so. do you think that financial technology investment space is on the verge of something big and is your fund investing heavily in that space at all. you have been saying this since i started stock to watch star wall street in two thousand and six when the you tube generation and we were purchased by c.b.s. i left c.b.s. before my contract ended to start stock twits in october two thousand and eight which was probably the dumbest time people would think to start a financial. community and we really been growing faster in the last year flash forward five years we have a great c.e.o. that we brought over from x. limburg and seen the c.

person so you have this amazing to the core functions here to to give this amazing shift from wall street finally what they call themselves refugees they have no and to prove how little attack and common sense wall street has with their kongs refugees and they're the wealthiest refugees of all time but you have this convergence. boom you have this convergence of the walls coming down because of twitter and facebook so everybody sharing stuff you have snap chat which is basically how wall street work forever which is sending messages privately you have people leaving bloomberg people leaving c. and b. c. people leaving the newspapers to help start financial journalism you have the stock twits community you have all this money flowing out of wall street into other areas at the same time as banks have shrunk and there's less competition among banks you have these big d. thousand now families globally that have one hundred million dollars or more they can't possibly be service that that growth by the existing banks that remains are

going to all these services focused on these families i know we complain about the one percent but the one percent going to need services and they need services more than most people they're willing to pay more money which means higher margins which attracts more and more entrepreneurs and better entrepreneurs. that was hedge fund manager and tech blogger howard. time now for a quick break but stick around because when we return we're bringing you the third and final part of our interview with noted cryptologist bruce schneier and in today's big deal our chief political correspondent sam sachs is sitting down with me to talk about everything from burgers to kim cardassian we promise it's tech and finance related and remember you can see all segments featured in today's show on you tube at youtube dot com slash boom bust our teeth and on through. dot com slash dash now before we go here a look at summer closing numbers up to tell. me

about. the revolution of the mind it's a revolution of ideas and consciousness. extremely public you would be described as angry i think in a strong no one single. live

. live . live. cross talk rules in effect that means you can jump in anytime you want. well you like what you come to use the same t. what your comedy used to be a bare feasted no holds barred fight to the dad. but the truth vampire whining into the next of the corporate elite billionaire freaks while they're going.

well that's what you get with my new show projected in night. welcome back now boom bust is hitting the road this week and me and my trusty segment producer bianca sheeny are heading to may get this yes vegas after the show today to cover the black hat hacker conference now one of the main topics of conversation at this premier cryptology event is going to be the fundamentally broken security of the u.s.b. drive we learned last week that the security problems with u.s.b. devices run deeper than we ever thought in fact the risks are built into the core of how these little sticks operate and if you've ever casually accepted a u.s.b. that was in any other device then your very own your system's probably been

compromised pretty scary stuff and that's because malware which can be installed on any u.s.b. resides not the flash memory storage of the device but in the actual equipment that controls its basic functions and an attacker can remain hidden from your machine along after the memory stick is removed and the contents deleted it's very very scary stuff and will be looking into it along with many other encryption security and hacking issues all later this week. now speaking of cyber security i want to share with you a bit more from my wide ranging discussion that i recently had with cryptologist bruce schneier now it seems appropriate as the black hat twenty fourteen conference the most well known technology security conference in the world like i mentioned is

celebrating its seventeenth year in las vegas right now so bruce and i talked about embedded computing systems open s.s.l. and his theory on n.s.a. reform take a look. well they're already in refrigerators the new things go to putting them on the internet this is the internet of things as computers get cheaper it becomes cost effective put them everywhere in our major appliances or in a small appliances and tags on our clothing in our sensors you know we have nest thermostats right computers and internet in our in our building control systems and over the next five ten years i think you're going to see computers drop in price to the point where they will be everywhere now that's going to be extraordinary the things we can do will be amazing a lot of people have written about that but yes there are now risks there are the pedestrian risks that your refrigerator can become part of a bot that or a virus can take over your clothing and there are going to be surveillance risks where you are thermostats on the internet it's probably hackable and somebody can

get that data course why they want that data we don't know and maybe that's been i and this could be a lot of very personal data that's going to be in this internet of things or the tags on my clothing right will will know where i am will know what i'm doing just like my phone does so there's a lot of danger of of surveillance of data collection of control but there's extraordinary amount of possibility. yes and power and good things that come out of this but like everything else we're doing there's there's benefits and there's costs that's really really incredible that your clothing can track you but can you explain in layman terms what the open as flaw was and why it was so devastating and what the implications are for security and open source software. you know heartbleed was a really interesting vulnerability it was a very scary vulnerability because the nationally we didn't know how it worked and what it can do it turned out to be more benign they would initially thought but the

the main problem was open s.s.l. was used in so many different products and services this vulnerability is potentially devastating and it was complicated to fix normal vulnerabilities you fix by installing a patch this full ability had a three or four step process to regain security you had a patch your systems regenerate keys you had to do multiple things and that made it very dangerous but it was an open source piece of software mean a lot of people believe that open source was magically more secure it turns out that's not true its software that secure is software that's been analyzed open source software has the potential of being advised by anybody because the source code is available but what happened with open s.s.l. is really a tragedy of the commons everyone thought someone else was reviewing the software so nobody actually bothered. it is very doubtful we have a lot of data that this vulnerability was discovered by any intelligence agency

around the world whether it's us or china or russia or u.k. or any of that sort of the big guys and exploited it probably was exploited during the weeks after it was discovered before everyone patched their systems you know i think all intel's range these do that and you know right now we've recovered security but it really was a wake up call to people who thought that open source meant magically secure it doesn't we have the potential to make open source more secure but we have to analyze the software and we're trying to do that meta it the heartbleed vulnerability because the open source community do stablished these projects to review open source software a lot of very big companies are using this they should help with the analysis and they are doing that so hopefully we're going to do better next time but hartley really was an exception it was a big deal and a little lot of all abilities that happened that aren't as big a deal this one was

a big one. now nobel prize economist joseph stiglitz noted recently that it is trust more than money that makes the world go round so what can we do to restore trust in the system now that the n.s.a. spying scandal has cost us so much trust. we really know how to deal with the fact that we have to give powers lots of ways to invade our privacy invade our systems and we get that through transparency oversight and accountability right so we need to know what's being done what the n.s.a. is doing we need more transparency in both the n.s.a. and other governments are probably not going to get that with other governments or the governments and russia and china are not going to be transparent to the same degree we need oversight you know in the u.s. i want more oversight by congress by regulatory bodies over both government and corporate surveillance and i want to count ability you know when. young someone's had a cat held accountable those three things in general or how we're going to restore

trust or that the mistrust comes from the fact that we don't know what's going on. that was it noted cryptologist bruce schneier time now for today's big deal. big deal time and i'm joined by the wonderful and want to know when mr and i were on the show good to have you here to be now sam is artsy as a political commentator and he's pinch hitting for edward harris and he's on lucky guy and we're discussing tech tech and more tech in fact we're covering everything from tesla if you can believe it madame kim cardassian. now first up fast food sales now while all the other fast food joints slumped in q one in q two of this year mcdonald's is still projected to be the top dog of this

a losing bunch and with americans writing mcdonald's as the more just to stay in fast food restaurant there seems to be plenty of room for a replacement so sam what's going on here well it looks like these sort of fast food hamburger joints are falling by the wayside i think we have some earnings from two thousand and thirteen you can see the top five fast food joints and you can windies in burger king those sort of low cost burger joints they're in fourth and fifth now if you look at the projection of sales for twenty twenty they drop out of it which has people wondering if americans are kind of fed up with the fast food burger i don't think that's happening i think a lot of americans can't even afford fast food burgers anymore they can't afford to get a job because you didn't have the opportunity to get a job at mcdonald's anymore in what you see is you see kind of more expensive fast food restaurants movie in that are promising more gourmet foods. so now you have some wealthier consumers who would have thought about getting past

food before now dropping out of the market today but as for mcdonald's how they're number one and are still projected to remain number one despite all of these these trade. these burger joints are having i think that's explained by mcdonald donald's isn't a fast food or a story more it's more of a it's an institution in america global institution it's everywhere it's like the d.m.v. i mean. you go there for a driver's license in this area. people just assume that's really just go to and i didn't say i don't agree with that view i think donald is delicious yes it's terrible for you it's very tasty but what's interesting about you being that. if they want you they can but anyway interesting thing about that as well we had a burger king in the bottom and they were recently taken over by sao paulo based you know hedge fund three g. and they knew a lot about the food and i know ray yeah it's on its season i have one private equity firm but burger king you know they're they have this new really young management style apparently it's not working out but there was

a there was big problems with burger king they go pretty well. there you go yeah laughs and there but anyway we turned out to electric cars some good news for tesla love tesla not being paid by them either the company had in fact revenue jumped the second quarter so is tesla the real deal and can they shake up the american auto industry and god i hope so i don't awesome i love you i spend many sleepless nights scared to death about climate change i think we've already passed it or very close to passing a tipping point in which you won't be able to stave off some of the worst effects of climate change twenty percent of our greenhouse emissions come from transportation so if we can get more electric cars out there we can maybe save the earth. also tesla's experimented with this new take on patents they've come out and said that they're not going to enforce their patents against anyone if people are going to use tesla patents for good faith they're going to let them use that

doesn't mean there's not selfish motives there are things i want to crowdsource building up the infrastructure needed to create this massive electric car market. but hey they're you know kind of working to reverse climate change as well as getting us away from this this and this is what drives industry right now we have to move on real quickly here but now there's one topic that i've never thought that we'd be discussing here kim carr dashin so how is her smartphone now making hundreds of millions of dollars how sound how this is just bonkers to me i know what it is maybe this is more about climate issues society itself or is it is the future like an exclusive look at her sex is that why it's making so much money. you know it should in short know when you you know it's really amazing i have to say in terms of business like for not having a massively large scale somebody who might assume that maybe they're really do but to make this much money it's bringing in two hundred million a year a year can you risk your current year's new album before everybody else is that how

it's made you so much money. so you do it under the north where it will be there possibly be because people are controlling an avatar of buying expensive grosses in the digital world that they can buy in the real world instead of right so it's not one that is it's heartbreaking sam great having you as always and what a happy day to all of you out there that's all for now but we love hearing from you please check out our facebook page at facebook dot com slash boom bust our t. and please tweet us. at sam sachs from all of us here a group of us thank you for watching we'll see you next time. a. very hard time.

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pleasure to have you with us here on t.v. today i'm researcher. on larry king now the king of visible parodies the legendary weird al yankovic you call yourself weird i made the decision to take it on professionally but i think people were calling me weird al my freshman year in the called storms i don't know why i think of a perfectly normal guy a parody should be funny even if you're not familiar with the source material even if you're not following pop music even if you don't know you know what is at the top of the charts you should be able to listen to this album and still enjoy it on its own merits we mentioned kidding about sinatra you know what happened to that great music will sinatra passed away i don't know nothing because it's like he talks to me plus what his home life like at the end of the activity it's disappointingly normal as you're doing the thing.