this is bought and paid for. your friend post a photo from a vacation you can't. call it different. the boss repeats the same old joke of course you like. your ex-girlfriend stupids tear jerking poetry keep. norrish. we post only what we found out our to your facebook you speak. there i marinate it 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 pre 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 scene 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. time how to get to it. art. 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 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. 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 in point potential customers on their cell phones so if you've had a hard time keeping up with how when 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 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 valuations are

you're seeing this earnings or that the revenue flowed and it was 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 in order 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 nine when you know the revenues and the 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 and 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 with you know the largest global travel

wait to show a lot of these companies just have solid solid business who's behind and valuation wise though they're stretched and hard to swallow with interest rates remaining low with revenue growth. there. is so much cheap 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 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 door. the key here for over 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 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 immobile 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 or 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 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. so 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 and 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 the 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 happens so our goal is to find companies and management you know 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 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 or ours and that's why you know the best guys out there have the best are ours and 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 shop 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 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 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 twins but you know it's a finance and focused tech start up 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 it's amazing to the core functions here 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 callings 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 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. thanks have shrunk and there's less competition amongst the 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 backroads by the existing banks that remains you're going 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 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 winans. time now for a quick break but stick around because when i 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 i mean really was a blue dot com slash dash but now before we go here a look at some earth closing numbers up but that.

was a. very hard to take a. look. at that back with her great care. led

to. a. market like. that you. like to 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 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 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 nests thermostats right

computers in the 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'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 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 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 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 will move a little as 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 or 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

does it we have the potential to make open source more secure but we have to analyze the software and we're trying to do that maybe it's 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 that and 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 both the n.s.a. and other governments are 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. bung someone's head of held accountable those three things in general are 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 to be now sam is artsy is 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 writing mcdonald's as the more 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 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 in what you see is you see kind of more expensive food restaurants movie in that are promising more gorham a food. chipotle. chick fil a 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 trade. these burger joints are having i think that's explained by mcdonald donald's isn't a fast food started 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 economy. people just assume that's 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 paid by them either the company had in fact revenue jumped the second quarter so is tesla the real deal and come a shake up the american auto industry. i hope so i don't awesome i love you i've

spent 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 experiment 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 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 today they're you know kind of working to reverse climate change as well as. 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 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 don't worry about climate issues in society so for. future like an exclusive look at her is that why it's making so much money. you know you should ensure you 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 have say that maybe you 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 making so much money. so they do the north when we were there possibly be because people are controlling. buying expensive houses in the digital world that they can buy in the real world and. i know 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 out there and i had at sam sachs from all of us here and boom bust thank you for watching we'll see you next time. in december two thousand and ten. more likely to be raped in college and in the real world. to each other when they knew each other i was a stranger in the bushes. 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 a school of schools that make money based decisions are much more common than they would ever admit publicly.

looked right on the street. in the first street to sleep and i were being put. on a reformist twitter. and instagram. to be a mole. on mom. you got a lot of sneering and negative press for your engagements here in russia especially for your public appearances with food and even though they weren't explicitly political you were just supporting sports one of the scenes that certain people who sheen has become very adept at is controlling the media for example right here c.n.n. do i think c.n.n. is you know completely telling it like it is no i see you say have an agenda i

think through jim is is bought and paid for. audio in reality radiation is still there it's weak and it is killing our children they aren't dying also a heart condition was asked most leukemia but feel florida's are still hiding the truth for most still and i don't know why don't they have children on their own because you heard so much to know the two counts protect our children from just. dramas. it's trying to be ignored. stories of others who refuse to notice. the faces changing the world.

to picture two days. from roads to. drop to the. breaking news on a national give confirms that security services have been holding a russian reporter in charges of aiding terrorists and that's a week after understanding went missing in east ukraine. brussels bites back now that russia's banned food imports in response to sanctions european officials reportedly want to spoil moscow's plans to get alternative supplies from latin america. tear gas and rubber bullets the u.s. police response to crowds demanding justice for the killing of an unarmed black teenager by a missouri cop. and meet a little girl that survived eleven days.