then the latest addition to the boom bust team the octopus she is on the show today she's bringing us her report from the black cat cyber security conference and in today's big deal redacted tonight has we can't seem down with me to talk about the privatization of prison it all starts right now. you've heard of alternative music alternative culture you're even watching alternative media but now we have alternative mutual funds yep welcome to you all to new you now while many investors are embracing these illiquid alternative funds the securities and exchange commission isn't so keen about the whole phenomenon the

f.c.c. has launched a broad examination of alternative mutual funds in an effort to scrutinize one of the hottest and most controversial investment products offered to small investors today all funds or at liquid alternative funds have marketed themselves as a way to hedge against market risk by employing a hedge fund like strategies such as betting on some stocks and against others trading futures and using derivatives to increase leverage they're also a cheaper way for individual investors to gain access to strategies once only available to sophisticated investors now critics say that all funds are just watered down hedge funds and individual investors might not completely understand what they're getting themselves into quickly finding themselves in over their heads so far this year investors have poured roughly sixteen point eight billion dollars into these types of funds and with their surge in popularity the s.c.c. is focusing their inquiry on the liquidity of the funds their use of leverage and the do. three of over say provided by the funds boards so to give you

a better example of how these funds have grown so quickly when a q.r. capital now that's a pioneer in this space launched its first mutual fund in two thousand and nine it managed twenty billion dollars by the end of june of this year managing roughly one hundred thirteen billion dollars that's significant jump other firms like goldman sachs blocks down and bank of new york are boosting their offerings in the space as well by launching their own all funds but not all funds are on board and many financial advisors say that they won't offer alternative funds because of the complicated strategies involved in managing them and their lack of long term track record of success we just don't know they're brand new now my take is it looks fishy and it smells fishy it's probably fishy so buyer beware.

now our next guest is definitely definitely not afraid to speak his mind i recently had the chance to speak with peter schiff they've been best favorite and c.e.o. of euro pacific capital now peter believes that the current housing market is a bubble and says if something doesn't give the country could be flooded with homes that no one wants to buy take a look at what he had to say i think this eco bubble that the fed has reflate it in the housing market is already beginning to lose air and the main difference between this housing bubble and the last one is the last one was more of a main street bubble and this is more of a wall street bubble because the principal speculators are hedge funds and private equity funds and very high net worth individuals who are paying all cash for properties and buying them on the interest of pays you know selling them at a profit or renting them out to all the americans who can no longer afford to buy

but i also think this is a bubble i think a lot of the real state that was snapped up in foreclosure auctions i think people overpaid and i think the investors are now is just now beginning to realize that they overpay so i think the speculative buyers are leaving the market and there's nobody to fill the void because the real buyers are absent in fact if you look at the recent almost a to sticks the percentage of palms bought by first time buyers is at a record low and in fact home ownership among individuals is that generational lows so prices have to come down dramatically from here before real buyers can actually afford to buy all the properties that have been bought by speculators and stump like the speculators who own these properties if they can't collect enough rant to cover. the cost of ownership they're going to be selling these properties and look out below because when they put these properties up for sale again there's no buyers anywhere near the current prices so you're saying that speculators overpaid

when these homes are in foreclosure and i is that correct yeah well initially in the process they probably got a good prices but then the prices began to run up as the supply of foreclosures was dwindling and more and more speculators wanted in on the action they started bidding against each other and prices were too high and some people might have looked at prices and compared them to where they were at the peak of the bubble and said well i'm getting a twenty or thirty percent discount so it's still ok you know what you're talking about a discount to an inflated price you can still be paying an inflated price is specially if you look at what the potential is to rent these properties out because you know the rents are not going to be there i think a lot of people misjudge the market regarding how much they could actually read these houses for because it's very difficult to rent a single family home a lot of renters don't want them because there's a lot of other costs associated with it and i think it's going to cost these hedge funds a lot more money than they think to manage all of these single family homes it's

going to be very difficult i think they've been off a lot more than they can chew and you know a lot of these investors they paid cash for the properties but that doesn't mean they're not in debt they might have borrowed the money through another source they don't need a mortgage but they still have borrowed money that they've brought to the auction house so they still have a lot of debt and if interest rates begin to rise and they have to service this debt but they're not getting enough revenue from the rental income they may be forced to want to put these properties up for sale but again if all the speculators want out who's going to buy nobody. peter treasuries have been doing pretty well with the ten year hovering around two point five zero level so do you see this low yield lasting and if not what impact do you think an uptick in years would have on the real economy well first of all a big uptick in heels would be devastating for the phony economy because it would predict the bubble and stocks would roll stated forced a lot of banks to fail and if we'd have

a worse financial crisis than in two thousand and eight but it would liberate the real economy the real economy is being stifled by the low interest rates and what the fed is doing so but if the surface it would be very positive it might be painful at first but ultimately it would be a you know a pain that would be beneficial because it would lead to some long term gain but i think the main reason that we haven't seen a bigger increase in interest rates since the fed began tapering is because foreigners have come to the fed's rescue if you look at the increase in buying of treasuries from china from emerging markets in general from europe you know look at belgium for example you've seen this big increase that has offset the reduction from the fed which again they announced today they tapered back another ten billion and if it wasn't for all these foreign central banks we would have had a more dramatic impact on rates as

a result the question is how much longer will the well can we count on this support from our friends especially when we're pissing off so many of them with our foreign policy. now many believe u.s. shares are priced to perfection right now with the s. and p. five hundred having had twenty seven records highs this year so some american investors are diversifying into cheaper international shares do you recommend that move and why or why not why been recommending that for years and i've been following that advice personally yeah i think that people should be invested in the stock markets to question is which markets which countries which sectors should they be focusing on because they're all not the same so i do believe that there are certain markets that represent a lot of value that where the stock prices are not inflated like they are here where you get a lot more value for your money you pay a lower p. e.

get a better dividend yield and you have a better prospects i think here in the united states you're right we're we're there's a bubble going on and in fact beneath the surface if you look beneath the average is a lot of stocks so far in two thousand and fourteen are in bear markets there are plenty of stocks that are down more than twenty percent on the year there are a lot of stocks that are down ten percent to twenty percent and there are some stocks that are making new highs but it's not that many when you look at the overall market and a lot of it is based on share buybacks that are financed by cheap money and it's the low interest rates that make possible the valuations and some of the inflated earnings numbers so that if interest rates were to go up that would completely knock the rug out from under these stocks because not only would it reduce their earnings dramatically because they would have to pay more interest costs on all the debt that they've accumulated to buy back all the shares but it would also impact their revenue because their customers who also are levered up they would have to

spend more income on interest payments so they would have less to spend. on their products but now higher interest rates means that you have to discount those future earnings by. bigger number so the multiples have to contract so there's a lot of room beneath the market in less of course the fed comes to the market's rescue with an unprecedented amount of money printing which i actually believe is what's going to happen. that was peter schiff c.e.o. of euro pacific capital. time now for a quick break but stick around because when we return our t. producer beyond the sheeting is telling us about staying one step ahead of hackers and how it's a hard thing to do for even the most seasoned cyber security experts and in today's big deal redacted tonight has a leak have to sitting down with me to talk about the privatization of prison on a little wal-mart stuff in there as well plus remember you can see all segments

featured in today's show on you tube at youtube dot com slash boom bust our t.'s and on hulu at hulu dot dot com slash boom dash bust dot com but. now before we go here a look at some your closing numbers of the bell come on back with. washington will submit. to the list. for me to hand them off receive covering the issues that actually doesn't do too much for our revenue line tech agriculture giant takes on a seventy six year old american farmer in the studio fallout do you think this is going to the create or the cia do you think this is what's triggering a race because the largest economy in the world it's also the largest debtor nation

in the history of breaking the set is mostly about alternatives to the status quo but when i gave you all those points looking toward the american dream the next they were just trying to survive it's time for americans and lawmakers are forced to wake up and start talking about the real causes of the. play. it's technology innovation all the latest developments from around russia we've got the future covered. well you like me to want your comedy news and some t. want your comedy news to be a bare fisted no holds barred fight to the dad. but the truth vampire winding into the necks of the corporate elite billionaire freaks while they're going.

well that's what you get with my new show projected tonight. let's let. the guy with the big. welcome back now computers smart phones tablets we use them for everything these days but just how secure are your

electronics last week the boom bust team attended the blackout conference in las vegas and it's a meeting of the best collective security minds on the planet and what we learn there is that hackers and thieves seem to always be one step ahead of security which certainly isn't good for any of us need tells us more bianca. experts from around the world recently gathered at the black cat conference in las vegas to discuss events mental technology and information security in the post snowden era and way things like this explore some of the most pressing issues of our time like whether or not privacy is at all attainable in the digital age the blacks own the first allegedly fully encrypted smart phone was hacked after one expert at the conference found two new flaws in the device. and this comes after a recent study released by hewlett packard that claims seventy percent of smart devices ranging from t.v.'s to home thermostats to automatic door locks have security vulnerabilities all of this begs the question if the so-called internet of things where essentially any object can have an embedded computing system is really

for our benefit kimberly price the director of syntax red team strategic operations suggested the internet of things might be spying on all of us. my refrigerator has imbedded software in it and they know things about my eating patterns is that really matter i don't know but if we're talking about embedded healthcare systems where you know a couple years ago there was some research done where insulin pump could be remotely hijacked to deliver fatal dose of insulin that's a problem that's a security issue with life and death consequences of versus a privacy breach and we have to be looking at these very realistically in terms of real world impact and not if we overreact to the small things and i'm not saying we shouldn't react but if we overreact to them then we're going to be immune to the things that really do matter. it goes beyond your home car phone and computer though vulnerabilities were also found in airport scanning equipment allowing

hackers to potentially manipulate their vital functions security researcher billy rios claimed to have found the flaws in two t.s.a. approved pieces of equipment it's hard to imagine chaos in the airports of hackers could take advantage of these flaws especially for a security system that's undergone so many changes since nine eleven. the stuff. i don't know if anyone. know but getting onto that quickly through that you can be prepared if it does happen is something we need to do rather than through the hard way that we should have. while the list of potential vulnerable items both big and small continues to grow researchers at black hat say prevention is key and should be the plan to focus on going forward in washington because the sheeny are cheap now aside from security and privacy concerns we also made an effort at black had to get some perspective on the financial markets and tech industry as well now you

heard a little from kate pierce a moment ago and bianca's report and she's a security consultant. i sat down in vegas with her to learn a little more first asked her how well encrypted the new york stock exchange now as jack another massive market exchanges are today here's what she had to say. some of the stuff that encrypt is very very good some of the. optimized for other things with. or. like easy reconciliation. and it's security is a business is a business cost and it's a business benefit of the comp you think of it becomes everything it's doing what you need to do. so there is that balance but it's such a community at the technical level without it. to an extent the predictions technological. on the in crowd with your prove to be on various networks so if you if you financial who can get on this with network that's a problem but once you're in a nothing to do. you get

a lot more freedom i want to switch gears a little here and talk about women in the stem industries which is science technology engineering and mathematics now a recent study says that women account for only twenty four percent of those in the stem workforce so you know how do we encourage women into this field to stop discouraging them and i was very lucky in that i missed that discouragement because i transitioned gender a couple of years ago and until that point you know i was one of the dude walking around i was blending in to this sea of men and in my industry is even worse than steam in general in general is around thirty percent i see numbers that are fifteen percent for my industry and when you take out the people who are in management or in the softer jobs the drops even more but it's terrifying. so there's a couple things they don't discourage them with. it doesn't necessarily need

explicit encouragement just don't don't suit up as folks expect don't tell them that they're not cool for doing that now the other part though is when they get in often the korea trajectory isn't they're not going to glass ceiling is they need to get on the elevator. so i've seen this with some my friends who are. in biology and academia where all the postgraduate students coming through are like sixty seven percent female but the faculty is almost exclusively male and when i have largely who i meet and their. board. maybe i'm just being paranoid but something funny there but also all too often i get people saying oh but it's all about me or it's all about me or well you remember talk or see i've seen tends to devolve into an oligarchy you just mentioned that you noticed a change when transitioning into a woman so what are some of the more prominent changes that you noticed from the workforce and community i've been very lucky in that i've missed most of the worst

ones. most of the differences have been having to justify myself more having to. deal with not being presumed doesn't explode if i will can i have to prove myself in a way that i didn't have to previously and that is. frustrating but also a lot of fun when people go to expect that i slam them down and make them feel insufficient it's great you also mention that some people in the industry just presume that you're an h.r. marketing no depending on how i dress you go out there walk up to any random got man and say so. but then again also if you have social skills i presume your sales and marketing if you know hiding back going then. you must be going to suffer because if you were technical person you wouldn't waste time with it but people also use the lack of social skills as an excuse to be rude or to get away with things they would get away with elsewhere and that is very discouraging that women . i haven't been socialized to put up with that i have been socialized to accept it

and so i don't i people find that jarring but i'm here to live my life i'm not here to be pushed around by people who are being idiots dr kate clancy an assistant professor at the university of illinois recently published a study and if the statistics basically say that the number of women in the workforce or are being sexually assaulted more that statistic is going up and this is just yet another obstacle for women to have to face in a male dominated workforce and a male dominated vironment like this stem jobs so does this problem deserve a thoughtful response and kind of similar to the way that organizations are trying to encourage young girls to apply themselves in science technology engineering and mathematics so partially it's there but a lot of it is also of the nature of the industry of academia it's all about your networks the people you've worked with you need them particularly early career to boom your own credibility and if you that they do something to you you want in a position of power sure you could you could take it you could push something. but

when you suddenly lose your collaborators. they can ruin your career even if it even if it wasn't explicitly because of that people just think you're making a fuss and that's not ok but we do see that in other places too but in steam particularly the way you don't publish on your own you do work on your own it's always a group of people whether it's the people you work with directly or the people across the country or across the globe and you need to keep them on side. and maybe admin started getting sexually assaulted more then would actually start to see some change but until then we have to work out how do we deal with that in the same way that a lot of women publish with the first initial rather than the first name because then they don't hit the gender bias the same way that. this shouldn't happen but you see the same thing with resumes and studies where people see no reason why with mr or a first initial instead of a name and suddenly they get more coolpix you can't prove anything but the

correlation is suspicious. that was security consultant kate pierce time now for today's big deal. big deal time and i'm joined today by the wonderful mr and i'm a big deal you are the big deal you're a big deal now today we're talking about private prisons here's the deal three major companies scope be a capital d.s.m. and a communal insurance have made headlines for denouncing their moment i million dollar investment in the private prison industry now the move comes after an effort made by color of change a nonprofit organization pressured companies today to divest from private prisons in light of exploiting men and women of color so we should corporations that you know operate in the public sphere like public prison systems be allowed to trade on public markets or is there

a conflict of interest there i mean yeah i think it's going it's gross i think it's because the because they're deciding on people's lives these prisons put people lot of people away for god knows how many years of their lives and they pressure politicians to lock them up longer to keep them in jail longer i mean the number of we've three thousand nonviolent prisoners serving life in prison in this country we have five percent of the world's population and twenty five percent of the world's prisoners i mean if we keep locking people up at this rate who's going to be left to wear the snuggies and play the video games no one who's going to wear the snow again this kind of wear and i guess i don't know maybe the companies that are getting paid for each prisoner they have it it's i mean it's terrible but it scope i want to talk about them because they're an alternative asset management firm and they're based in new york city they have four billion under management and they have other other assets under management there they're in real estate they do a. there are things but one of the most profitable sectors is this private prison industry so why do you think it's such a successful business model does have to do with the fact that you know it's kind of like a recession proof industry when you think yeah there's stocks are doing great the

corrections corp's are doing great but it depends on how you measure success right right now we're only measuring success with profit what if we measured success with the number of prisoners rehabilitated or the number of prisoners that didn't get you know didn't because there's more violence apparently in these privatized prisons and less rehabilitation in these privatized prisons so it depends on how you measure success maybe we should measure it on how the groups are by the president so there you go you want to know that we're talking about this because in singapore they still of punishment where they're going to have cane and it's kind of funny i mean from a western perspective you're reading this in the paper you know so and so about six lashings but the recidivism rate on that is extremely low so for us to say it's barbaric to do this but at the same time we actually we. are not so we have every day to school or another but i hear you say your stint has cost wise it's very cost effective and you have the option to go to prison you don't have to but i

hear what you're saying in the sense that like we find that so barbaric right locking someone up for their lives for certainly all drug crimes is saying yeah. yeah it's depending on where you stand it can go either way now private prison companies they're more operationally efficient than public prisons and furthermore why is that and should they be more operationally efficient is it because they have the luxury of not caring they don't have a public they're not possible they're not they're not public servants so they're not responsible for the public's opinion do you think that's all right you know efficiency well dexter is efficient. is quite interesting i mean you know prison prison labor in china is a fish and i think that i think. you measure but yeah they're they're measuring you know they're not trying to rehabilitate. they don't they just want to retain them like the number of prisoners a lot of states several states i think it's maybe nine have signed contracts to these private prisons saying they will have like ninety percent fill these prisons

all at all times and also if they show hotels don't have. time travel so i say we're going to lock people up for you that's incredible now finally i've two seconds left well thirty but i want to talk about wal-mart can you tell me what's going on there there was a leaked memo from goldman sachs you know all about this so quickly give us a heads up and commander share this week to your government acted this way wal-mart of goldman sachs so that wal-mart is on the decline and should continue to be on the decline apparently they're losing out to two smaller more convenient stores and the list of dollar stores is one of them and do you know how crappy does their stuff to be to loosen up the dollar store like lowe's dollar stores a of like repurpose ramen noodles and like stolen shampoo bottles you know that's what they. all use really. is an electrical cords that so you it's a full on them. somehow when you're on it is really fun you have to come back more often that is leak out first of every host of redacted tonight every friday eight pm check it out it is truly awesome here on r.t.

that's all for now but please check us out on facebook facebook dot com slash mr t. and these tweet us at erin eight cam from all of us here thank you for watching we'll see you next time ciao.

please. look. cool so try to. pluck people. like you are it's a sure thing every bit of. luck in the law oh well. why would he. think. it's just to eat lists sometimes for nothing. this season and it's still.

just he still he can still be just if he sees the stage it looked to be. but speech on the seller. lists. we welcome an era nate and abby martin to be terrific hosts on the r.t.d. network. it's going to give you a different perspective give me one stock tip i'll never i'll give you the information you make the decision don't worry about how breaking the work of the mind it's rubbish ideas and consciousness infrastructure with the system streamline . our truths would be described as angry i think i'm a strong enough. well you single.

breaking news on the international security forces kruk down on protesters in missouri as over the killing of unarmed black teenager by police boils over for a fourth night. britain considers sending non the combat troops to iraq where ruthless jihadist militants a tightening their grip western involvement is growing with france on the united states local kurdish fighters. comes under fresh shelling overnight with the u.n. signaling an escalation of violence in eastern ukraine.