there are also more problems with the food and side wriggling disgusting maggot contractors hired by states to be prisoners have to meet certain requirements like serving prisoners a certain number of calories per day or only using approved substitution for menu items when they run out but aramark repeatedly uses unapproved substitution like house dog buns to make people mold the mind to or popsicles instead of juice for breakfast or sometimes they just come up short on how many meals they serve altogether aramark insists they aren't as bad as they found they say they're just being targeted by people against privatization but all of these incidents and more are well documented the ones waking his stuff up so when i hear stories like this i can't help but wonder how these companies would land such lucrative government contracts he'd think competition to score of them would make the cream rise to the top but instead the only thing that seems to always rise up is

a bunch of baggage tonight let's talk about that by following me on twitter at the resident. technology innovation and the developments around. 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

leaders in the profounder 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 lion 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. time to get to it. our lead story today on this tech centric up

a sort 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 of their ads 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 progress your. 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 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. 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 know 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 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 are

you're seeing this earnings or that their revenues are floating is not just because of the social world dollar you know new york times had a piece about facebook and they killed it for the fish oil company. one example you know whether there's money starting to flow in the 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 million you know when you know the revenues kind of fake everybody was you know well. you know there were no mobile phone and there was no social. show so i think this pocket of silliness continues and you know some sharp by. along the way but you know if you look at priceline. it's an internet company and every talked about price numbers 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 wait to show a lot of these companies just have solid solid business food behind them and valuation wise though they're stretched and hard to swallow with interest rates remaining low and with the revenue growth there and with so much cheap money on the low end so there are so many start ups you continue to have after. 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 an exact

answer as occurred just crashes a month or. the key here for over is it's global you know when a.o.l. came out in 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 in the ninety's then you had the bear market in the crash and you had another boom 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. 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 the amount of money they have from google is such a bad although they'll be competitors and. 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 but there are certain companies that are going to be one hundred years from the facebook twitter. air b.n. b. now raising half a billion. raising the kind of money they can use are for companies that have business models and brands that are going to be one hundred years and if you look to change a one hundred years ago and said you know jane jane is going to be one hundred year brand you still made money if you got the fact that it was going to be one hundred year brand and i think you know 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 is social leverage is helping get companies 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 and ultimately i.p.o. or acquisition. great question it's number one thing we think about is we're not large enough to make sure our companies are 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 in opportunities that will appeal we think with you know 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 b.c. whatever we're going to call it our job is just spot jockeys and industries and companies that we think can get to the next round at least that doesn't make up what makes it fun there are ours and that's why you know the best guys out there have the best guy or are them they raised the most money but how you build a brand in the angel investing business is to make sure your company's 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 tech industry where our fund is focused a lot is in this massive trend so you know i rather fish where the fish are and try and find companies that are going to find interesting in six months to yours. and that's kind of how you play the game a lot of it is just understanding how markets work. howard spoke to did via neuron drove recently and he's the founder and c.e.o. of some zero and he was also one of the founders of connect you which sued facebook with 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. you

haven't seen 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 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 x. limburg and seen the c person so you have it's amazing to the core functions here to to give this amazing shift from wall street finally what they call themselves refugees they have to prove how little attack and common sense wall street has that they're calling themselves 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 is sharing stuff you have snap chat which is basically how wall street work forever which is sending messages

privately you have people even 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 to be fifty thousand families globally that have one hundred million dollars or more they can. possibly be service the back roads by the existing banks the remains you're going to all these services focused on these families i know we complain about the one percent but the one percent are going to need services and they need to rebuild more than most people they're willing to pay more money which means higher margins which attract more and more entrepreneurs i'm better all intrapreneur. 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 concur to ash 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 throughout the dot com slash boom bust now before we go here a look at summer closing numbers. i'm happy martin the stories we cover here we're not going to hear any right other big story that. is

a reason they don't want to you know aren't there. now let's break the set. market like. you. should have you with us you're on t.v. today i roll researcher.

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 in 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 his 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 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 our 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 or 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 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 soon track you but can you explain in women 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. deployed it during the weeks after it was discovered before everyone patched their

systems you know i think all intel's ange 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 does that we have the potential to make open source more secure but we have to analyze the software and we're trying to do that media 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 you know that a lot of all abilities that happen that aren't as a big deal this one was a big one. now nobel prize economist joseph stiglitz noted recently about 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 these 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 and what the n.s.a. is doing we need more transparency both the n.s.a. and other governments probably not going to get that with other governments or the governments in russia and china are not going to be transparent to the same degree we need oversight 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 and 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 we. were on the show good to have you here 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 and it is tech related now first up fast food sales now while all the other fast food joints slumped in q one in q two with the share mcdonald's is still projected to be the top dog of this losing bunch and with americans reading 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 the 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 if they can even have the opportunity to a job at mcdonald's anymore and what you see is you see kind of more expensive food restaurants movie in that are promising more gourmet foods. so there you have some wealthier consumers who would have thought about getting through it 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 these of these. these burger joints are having i think that's explained by mcdonald

donald's isn't a fast food 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. if. you go there for a driver's license in this you. people just assume this will just go to and i'm going to say i don't agree with that view i think donald is delicious and 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 a sao paulo based you know hedge fund three g. 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 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 bad lands 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 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 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 will 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 experiment with this new take on patents they've come out and said that they're not going to enforce their patents against anyone of people are going to use tesla times for good faith they're going to let them use that doesn't mean there's not selfish motives there to want to crowdsource building up the infrastructure needed to create this massive electric car market. but you know kind

of working to reverse climate change as well as giving us away from this 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 how best can 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 more about climate society so for. future like an exclusive look at her such that why it's making so much money. you know i'm sure it 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 so but who am i to say that maybe you really do 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 making so much money. so you do to the north where it was there possibly be because people are controlling an avatar of buying expensive in the digital world

that they can buy in the real world instead right now. 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 us. at sam sachs from all of us here and thank you for watching we'll see you next time.

i'm abby martin the stories we cover here you're not going to hear a new right separate story extra out why at same time there's a reason they don't want you to know. that we. now let's break the set.

on larry king now the king d.j. exile of i don't rap you do i put the whole record together i don't call a rap i call it doing the cavett you know i might be on the whole it might be on the intro i'm like a berry gordy the place he jones of hip hop but quincy and barry never went on their own voice on the cut log do. because they were called as right nobody really told me clearly when you make you don't topple you know climb the noun talk to people who actually try to you know knock you down yeah i've been into that but not just on another level you know they talk about you when you ain't got nothing they talk about you when you do got some plus you go to the middle east might that some of them in the middle east was in eighty four or it's a long time town on one waltzing stuff line scared you kidding promise

on the tour bus i just drove from miami all the way l.a. just to be right here on larry king all next on larry king now. welcome to larry king our special guest is d.j. khalid the grammy nominated multiplied number do so odd as d.j. and the c.e.o. of the way the best music group dubbed the employment king tell it has sold more than fourteen million singles and worked with everyone from jay z. to rick ross to drake he is a man. mogul collins' eighth studio album called i change the lot will be released later this year have you changed a lot of the what ways have you changed scully you know taking care of myself in saying no big.