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 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 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 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. remote your product

on facebook you're 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 call the item 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 and discerning for the revenue load it. 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. at one example or 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 nine when you know the revenues and everybody was well. you know there were no mobile phone and there was no social. show so i think this pocket of silliness continues you know some sharp by. 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 would do you know the largest global travel wait to show a lot of these companies just have solid solid business who behind 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 startups 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 pretty i.p.o.'s i.p.o. companies like google are getting such a rich valuation that's my question. yeah i wish i wish i could tell you an exact

answer as occurred just crash 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 in the real estate crash in this mobile social and local brands are global right away whether it's through acquisitions or just through execution right 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 and 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 in a lot of players in this business you know is 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 one hundred years from the 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 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 v.c. whatever we're going to call it our job is to 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 the may 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 the 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 in tech industry where our fund is focused a lot in this matter. trends 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 two years and that's kind of how you play the game a lot of it is just understanding how markets work. howard we spoke to dave the neuron drivers and he's the founder and c.e.o. of some zero and he was also one of the founders of connection which sued facebook with the when costas but you know it's a finance and 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

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 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 this 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 with their calling refugees and they're the wealthiest refugees of all time but you have this convergence of 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 amongst banks you have these the thirty 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 you're going to have 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 and 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 lindzon. 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 probabilistic in kurdish and we promise it's tech and finance related and remember you can see all segments featured in today's show on you tube it you tube dot com slash boom bust our teeth and on it really was a clue dot com slash boom dash but now before we go here a look at summer closing numbers up at the.

i.r.s. trade. in december two thousand and ten. more likely to be raped in college and in the real world. i don't think people did that to each other when they knew each other i thought rape was a stranger in the bushes. girl complaining about the son of an alumni. gives millions of dollars to the school why listen to somebody who's going to lose money at the school of schools that make money based decisions are much more common than they would ever admit publicly. school basis tried to. play pulling out of. your life before it's a sure thing every minute. cut may.

go well. like the payment. plus some say the place cases mostly it's blood slaves sometimes for nothing which lead this season and it's important. to look just keep up the story he's just if you see a stage eight look to be seen but the speech was. plenty. to cut.

costs. 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 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 through scary stuff and that's because malware which can be installed on any u.s.b. resides on 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. already in refrigerators the new things that are putting them on the internet are this is the internet of things as computers get cheaper it becomes cost effective put them everywhere in our major appliances are not a small appliances and tags on our clothing in our sensors you know we have nests thermostats right computers and internet in our in our building control systems and over the next five ten years i think we'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 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 it is extraordinary amount of possibilities 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 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. was used in so many different products and services this vulnerability is potentially devastating. 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 be 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 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 and a little lot of all abilities that happened 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. just 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 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 wanted only. 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 tech 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 of this year mcdonald's is still projected to be the top dog of this

losing bunch and with americans reading mcdonald's as the more just tasting fast food restaurant there seems to be plenty of room for a replacement so 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 win these in burger king those sort of low cost burger joints there 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. anymore in what you see is you see kind of more expensive fast food restaurants moving in that are promising more gore may foods. so there you have some wealthier consumers who would have thought about getting food before now jumping 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 try. 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 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 and yes it's terrible for you it's very tasty but what's interesting about you. 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 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 they were pretty much 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 played by them either the company had a fear of revenue jump in the second quarter so is tesla the real deal and can they shake up the american auto industry and 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 we 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 of people are going to use tesla times for good faith they're going to let them use that. i don't 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. 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 don't worry about climate issues in society so for. future like an exclusive look at her sex is 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 for not having a massively large scale somebody who might have say that made me do it 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 making so much money. so you do not do the north where it was there possibly

be because people are controlling. buying expensive grosses in the digital world that they can buy in the real world instead of right so it's not one that it's heartbreaking sam great having you as always and what half a day to all of you out there that's all for now but we love hearing from you please check out our facebook page 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. take. a lot of their sex lives up her

make their lives let's listen. lead leg lifts a bit. of a. there is relativity in the way people get their information there is relativity in the way people value their money there is relativity in the way people. relate to each other but with the blotching technology which is mass based which is completely

objective store transparent and eternal these relative differences are big point away so to speak and read trying a new paradigm or a new era of absolute truth. you got a lot of sneering and negative press for your engagements here in russia especially for your public appearances with putin even though they weren't explicitly political they were just supporting sports one of the scenes that some people who zoom has become very adept at is controlling the media for example right here on c.n.n. do i think c.n.n. is you know completely telling it like it is no i see how the new gender i think through gender is is bought and paid for. league.

it was terrible a. very hard to take i. want to get on here is a live happy ever had sex with her rick perry not. going. to. play. one of. the people.

well it's. a pleasure to have you with us here today. in reality mediation is still there and it is killing our children. hard assed know leukemia but the authorities are still hiding the truth from us still and i don't know why don't they have children on their own hurts so much to know that to protect our children.

a convoy of humanitarian aid heads from russia to ukraine's blockaded city of lugansk off to moscow in kiev agreed to a red cross led mission. police said enraged crowds in the u.s. state and a second night of street violence over the police killing of an unarmed black teenager. the u.s. has to send weapons to cut its militia in iraq which is struggling to push heavily armed islamic state. why his person is biggest thing pulling the plug on accounts belonging to syrian refugees and students.