right. and i think the trick. on our reporters. 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 winners and the co-founder of the stock twits sat down with me to discuss all

things technology in particular what's going on with three i.p.o. 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 s.s.l. so i'm not against it. our lead story today on this tech centric episode of boom bust facebook now facebook is getting into the television ad. 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 this 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 attracting 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 cuz 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. 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 and boast about its ability to pinpoint potential customers on their cell phones so if you've had a hard time keeping up with how when and what 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 valuation start you're seeing in this earnings or that the revenues are floating is not just

because the social world dollars you know your friends had a piece about facebook and they killed it for this fish oil company. one example and on twitter there's 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 ninety ninety nine when you know the revenues kind of fake everybody was well. you know there were no mobile phone and there was no social. show so i think this pocket of silliness continues it's been you know some sharp bags. 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 with you through basically a travel through an online travel agency which you know the large global travel agency show 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 cheap 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 does the. hour and we've talked a lot about uber 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 pre-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 exactly answer as occurred this crash of the mind or the. the the key here for

is it's global you know when a.o.l. came out in one thousand nine hundred 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 brands are global right away whether it's through acquisitions or just through execution right or 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 and the opportunity because of their execution to date and amount of money they have from google is such a bad although will 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 companies. there are certain companies that are going to be a 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 j's 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 mutual funds and hedge funds are thinking like that and so they're holding their nose are not thinking about today's price because these are hundred year companies. howard a big part of the job of your find 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 traditional round 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 team 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 and 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 mass. trends so you know i rather fish where the fish are controlling from 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. we spoke to did the renderer of recently he's the founder and c.e.o. of some zero and he was also one of the founders of connect you which suit facebook what the winklevoss is but you know it's a finance focused tech startup and he sees finance is the next big thing for tech startups so do you think the financial technology investment space is on the verge of something big and is your fund investing heavily in that space at all. yeah i've been saying this since i started stock to watch star wallstrip in two thousand and six in the you tube generation and we were purchased by c.b.s. i left c.b.s.

before my contract and 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 bloomberg and c. and d. 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 commonsense wall street has with the kong 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 this 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 wins. 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 kardashian and 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 the really we're out dot com slash boom dash but now before we go here a look at summer closing numbers up at the.

crosstalk rules in effect that means you can jump in anytime you want. in justifying their stance they're citing all sorts of what they see as international precedents in cost of the coming referendum in scotland but the response that they're hearing from the one is that what you're saying is illegitimate but what we've been doing is still full of life in america if you break into their story. america does is right. the

people for centuries like russia are all countries like this straight. america does is right because america doesn't. just want to keep building allowing saudi arabia qatar and iran to fund millions and millions of pounds worth of the building of mosques in this country where they have them addresses where we have a hundred thousand four to sixteen year old children who are being schooled in these much which is encouraging complete non integration within the society. good lumber tour. was to build on the most sophisticated robot which on fortunately doesn't give a darn about anything too much mission to teach creation why it should care about

you and. this is why you should care only on the. welcome back now boom bust is hitting the road this week and me and my trusty it 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. 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 an 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 long 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 although 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 they do things that are 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 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 net or a virus can take over your clothing and there are going to be surveillance risks where you're 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

let's give me 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 business benefits and there's costs that's really really incredible that your clothing can track you but can you explain in women terms what the open as law 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 film 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 it was an open source piece of software i mean a lot of people believe that open source was magically more secure it turns out that's not true it's 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 hardly really was an exception it was a big deal you know a little lot of all abilities that happen 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. bung someone's headache held accountable those three things in general or how we're going to restore trust by that the mistrust comes from the fact that we don't know what's

going on. that was 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 here to the big sam is artsy as a political commentator and he's pinch hitting for edward harrison he's on lucky guy and we're discussing tech tech and more attack 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 they can even have the opportunity to 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 there you have some wealthier consumers who would have thought about getting past food before now jumping out of the market to get that 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 store anymore 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 and this is. people just assume just really just go to and i don'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 it you bring to it. if they want to 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 and they know a lot about the fast food and i know radio is it's on its heels now has 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 or their operating about being. very very . lax and now they're not but anyway we turn now to electric cars some good news

for tesla love tesla not being paid by them either the company out in favor of a new jump in 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 and we're true 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 any one of 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 on buskin car dash and 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 do or about climate issues in society is it is the future like an exclusive look at her such there 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 want to say that maybe they're really do it but to make this much money it's going into in a million a year a year can you risk your current year's new album before everybody else is that how it's making so much money. so you know down here in the north where we were 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 right. that 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 out us at sam sachs from all of us here and bring us thank you for watching we'll see you next time. try to. get. to the store everything. somehow it made

the law the weapons of my own life but. most of us think six. miscues is just months. sometimes for nothing which. led to so many of the elements in the film it's not just keep up the story could still be just if you see the stage eight look to be kept but speech because it's sad. to see. the book. clean more zero casualties war this is the great fantasy of war mongering politicians. capturing people is messy what do you do if the innocent

killing them easy we were serve the right to kill any person anywhere any time. soon but they come to the throne to muslim apes these things are birds and politicians who get a new kind of power via this technology sad is very tempting. the luck. dramas that trying to be ignored to the. stories others who refuse to notice. the food system changing the world lights never. filled picture of today's leaves most punters mug from around the globe.

look to. and supplies are running low on an estimated seventy percent of house have fled the area. in the west bank humanitarian crisis is amazing ukrainian cities that have been under siege only. there is no need. as it is continued to be portrayed by our russian colleagues given as a state of affairs is as bad as being made out and says it needs no international help to cope with the.