for the three hundred fifty million americans out there there are two hundred fifty million people over the age of eighteen in this country and knowing how americans spend most have credit this hack has likely affected half of them here to explain how this could have happened and to foretell the fallout please welcome morgan wright cyber security analyst and senior fellow at the center for digital government can you give us any hints how something like equifax something we depend on for so much of our very personal information could get hacked massive stupidity ok ok they say they had been warned by a government agency last year that their security practices were bad that they need to improve them and they were running software that back in march they were told as well as everybody who used this open source stuff software called struts that this stuff was it was vulnerable and they should patch it so the question is did they patch it or did they know it is i've predicted before and when you look at most of

these lynsey it's usually a third party a third party software third party something else in this case it was this third party software and that's what allowed the hackers in through simply a web browser to be able to get into this information the c.e.o. says that it was from may until july of this year so that puts it after they've actually been warned right and now the company is saying may through july they exploited the vulnerabilities we're talking birthdates addresses some driver's licenses credit card numbers two hundred nine thousand people with those dispute documents with personal information for one hundred eighty two thousand consumers can this get any worse or yes my first rule of data breaches is the number they report is not the real number it always goes higher we saw that with opium we saw it with target we saw it with home depot so this number will get bigger it won't get smaller and what we'll find out to is that my bigger concern is who knew what when did they do it because now you have executives that are selling off stock before they were. supposed to or and it wasn't announced so for them to say that

will these guys did know about it is foolish they were senior executives they should have known about it and lindsey this actually brings up an even bigger issue it's the issue of notification how soon before we're supposed to hear about it this went on for six eight weeks then they set on it for another six weeks on top of that so our information has been out there for you know six months at least you know their defenders of the executives who sold their stock say that these numbers that they give out they made as paltry between the two of them as two million finance chief financial officer john campbell got away with nine hundred fifty thousand worth of stock august first this discovery was made the twenty ninth of july august first then joseph lofgren equifax is president for u.s. information solutions sold six hundred eighty five thousand aren't these numbers low enough to where they thought they might be able to hide it well look as a former detective and somebody who used to do this for a living i don't believe in coincidence july twenty ninth they say oops we have

a problem august first or so off stock i'm sorry this is this will now what will happen this hold now spawn an additional f.b.i. criminal investigation and it should into what's going on here but it renews what i testified before congress back in november two thousand and thirteen on the safety and security of health care dot gov we started talking about you know what there needs to be more accountability one of things i proposed back then and it's the time to bring it up again we need the version of sarbanes oxley for cyber just the way we do on the financial side we had people go to jail in my county it was bernie ebbers and m.c.i. worldcom you know we did there should be this kind of malfeasance there's no reason they should be able to get away with this but yet have to sign a document on their financial saying hey this is all true and correct you know and under penalty of going to jail if it's not why doesn't malfeasance apply to these top executives enough because a lot of american people around the world do not have faith that criminal charges will carry through well it's a whole it's the issue of accountability whether it's in government or the private sector we want some accountability one of the ways you. accountabilities through

lawsuits now there's a nother issue and here's a hidden issue people don't realize if you go to the site and sign into it the consumer financial protection bureau proposed legislation to get rid of this stuff where you could have to agree to binding arbitration while that's in this equifax website that if you go to it and you sign into it you're basically giving up your rights to be part of a class action lawsuit and there is already litigation so look this is a huge mess that they got themselves into and it's the but the people who are going to pay the most are you and me and one hundred forty three other million people who are not going to be sure about is my credit information correct is the is the information authoritative can i depend upon it and how will it affect me when i go to get a house or refinance i want to play for you something that c.e.o. and chairman rick smith via video just say about this tech lesson. will not be defined by this incident but rather. how we respond together we will serve our customers support consumers and strengthen our data security capabilities

in the process we will build a stronger company with many great days ahead. what do you make of that is that even possible written by a professional crisis response person and that's what they're supposed to say how many times have we heard you know the other words at this point are irrelevant what are needed are actions what is needed is transparency and what is needed is there will be some financial compensation but again when you figure the average cost of a record that's breached is one hundred forty one dollars in the u.s. that's the average cost per record hundred forty three million dollars so looking at a twenty billion dollar exposure yeah i'm guessing the trifecta of credit reports they're going to be out pretty soon they're offering free identity theft protection we'll see how far that goes for their credibility thank you so much i look forward to having you back on this as this story continues morgan right senior fellow at the center for digital government and a very good cyber security analyst thank you. the eyes of the world are on the images coming out of the once lush caribbean islands such as barbuda and st martin

in some places they are outright destroyed by hurricane earl and that's just two of the islands and now the devastation is set to unfold as erma head straight to florida we go there now for a report from artie's marina. in miami marina what do you have for us well lindsay more than six hundred sixty thousand residents of miami dade have been structed to leave their homes it's the largest evacuation in that county's history residents who have nowhere to go are encouraged to vision visit and evacuation shelter and that includes undocumented immigrants officials say those without any paperwork and those who live in south florida should seek shelter without fear of deportation this came from the mayor of miami dade who held a briefing and said no no identification will be checked at evacuation centers and anyone who needs shelter in miami should seek it of course this comes after

undocumented immigrants in texas reportedly stayed away from public shelters in the aftermath of hurricane harvey for fear they. deport it now a total of forty three shelters in miami dade will be opened by tonight with enough collective space to accommodate one hundred thousand people by this afternoon many shelters were at full capacity and turning people away at other locations hundreds of people were standing on line before an evacuation center even opened more than eight thousand staff have been deployed to prepare for the agency's chief said no one in florida has experienced a storm with the intensity of irma and he's urged all those in evacuation zones to get out now depending on where irma makes landfall in florida officials are warning roughly nine million could lose electricity during and after the storm while we're focusing on miami mostly because that's where it appears irma is heading most meteorologists and experts say no one in florida is going to be able to duck this

storm it is according to experts over three hundred forty miles wide and everyone in this state is going to feel it so right now if people have not evacuated they are hunkering down and they are preparing to ride it out so you know some people have moved from one part of the state to the other but of course everyone is watching the path of erma wishing hoping it makes a turn doesn't had for the sunshine state but if it does experts are warning it will be the most powerful hurricane possibly that florida or the united states has ever been hit with but we are certainly wishing and hoping that you stay safe as this story thank you very much for joining us our to correspondent marina point. as we wait to tell you the devastation following hurricane irma numbers are in

regarding hurricane harvey which hit the texas gulf just last week the death toll now stands at seventy. hundreds of thousands of people's homes were left either damaged or destroyed completely it's important to note that the majority of people affected had no flood insurance congress has passed a seven point nine billion dollars aid package but harvey is poised to be the most expensive storm ever to hit the united states daniele de martino booth the president of money strong and the author of fed up an insider's take on why the federal reserve is bad for america says this could be a boon for an economy which has showed symptoms of suffering in the very sectors which stand to gain from it. we have the auto sector enter a recession we saw the first spike in construction worker layoffs in august as commercial real estate volumes have collapsed over the past year. we've seen the residential housing market begin to turn because home prices have got to be so high

that we saw a not not just a disappointment in the new but also the existing home sales report pending home sales are in the toilet it's just not been a pretty pretty picture in a lot of sectors of the economy that will by the way directly benefit from the aftermath of hurricane harvey well let me i want to refer to a very interesting piece you just wrote it's in titled houston we have a solution so what is that solution. well i think that it's a matter of i'll share one story with you friend of mine apartment developer one of the particular units that he he happens to have developed four hundred units two hundred were destroyed by floodwaters he bussed in one hundred forty construction workers from florida the fifth day after harvey had hit it was still raining and a whole batch of construction workers hit houston and started tearing out the sheet rock pulling up the floors repairing these units that's one one story one story and

one story alone houston prior to harvey had an oversupply issue when it came to apartments that's vanished overnight all of that excess inventories been absorbed by homeowners as they move into apartments while they start to repair their homes there's also been a hotel issue in the houston market since of oil prices collapsed houston had the distinction not a good distinction of having the most distressed hotel mortgage loans in the in the country that's going to well of course there's price gouging going on with those hotels but that's got to be controlled whole nother story but i see what you're saying there is there i'm just saying accounting had an oversupply issue in a lot of reno's and that that's been eradicated overnight to say nothing of the fact that there were too many cars and united states and used car prices were falling that's true you know what's interesting here is that back during hurricane katrina we saw that devastating catastrophe

a lot of people didn't have flood insurance because they were on that one hundred year flood plain classification the government makes a lot of people here weren't catastrophic flood insurance is expensive how can we expect people just in layman's terms i'm just wanting your opinion on this how can we expect people to be able to foot the bill for the type of construction that needs to happen in these neighborhoods i mean it's as summated two thousand dollars for every inch of damage done in your house. well lindsey look this is going to mitigate not eliminate the odds of a recession barreling down on the u.s. economy you are absolutely correct fifty percent of homeowners who are affected by katrina had that flood insurance estimates right now are that maybe upwards of one million one point two million do not have flood insurance who got flooded so there will be a lot of economic long term economic damage that emanates from this storm because a lot of homeowners simply will not have the means as you described to be able to

repair their homes i think that we will see quite a few homes demolished in the coming weeks and months remember it's still summer time in texas very difficult to stop the mold from growing and the devastation from getting worse if this heat doesn't let up right and you know texas what are we facing as we head through christmas into the holidays gets mighty cold up there can they still bills through that and help to revamp that economy. well so in the case of texas unless we have an unusual winter it's much more so the case in dallas where we get ice storms and snow from time to time houston is not as affected come winter time by severe winter weather so the construction workers should be able to keep hammering and nailing all through the christmas season they really should be well thank god for that as these people try to to rebuild things and it's interesting you look at what we need any silver lining we could possibly get in the

wake of these terrible storms that's right and who knows about puerto rico and what it's facing with its huge burden and what we're facing now much of it is rubble people without power we should definitely bring you one soon to talk about that of course the hard part is we can't exactly assess all of the damage but that will be a sassed thank you so much for talking with us about this daniel de martino both president of money strong and author fed up an insider's take on why the federal reserve is bad for america thank you thank you. time now for a quick break to stick around because when we return we'll take a closer look at the flip flopping on capitol hill just one week after recess and that as we go to break here are the numbers at the closing bell.

match geysers financial survival guide liquid those that you can convert into as quite easily. to keep in mind though as a tremendous place of. record. with this manufacture consent to stick to public wealth. when the ruling closest to protect themselves. with the flaming. lips and be the one. to ignore middle the roots to. the real news group.

as long as you run support still the intel international community should say to run this is not acceptable you should stop financing still from our perspective baseless ballots hamas saw the us is holding doing the place but this is something that i believe israel should see to good or withdraw some of course with the united states and with other states and so you. it's not just small these really pulled the. two men are in the hot seat with the law after the securities and exchange commission took them to court the f.c.c. alleges that in two thousand and fifteen former amazon financial analyst brett

kennedy gave his fraternity brother. access to amazon's earnings results before they were supposed to be released as carney use that information to make over one hundred sixteen thousand dollars in profit from trading amazon stocks as a reward for the tip of his comic gave his frat brother ten grand now both was konnie and kennedy settled with the f.c.c. for a total of thirty thousand dollars however kennedy could see up to twenty years in prison and a five million dollars fine conny is already in prison for five years. on capitol hill and its relationship to the white house as well as the nation itself appear to have split its personality this week just a few days in from the august recess and american lawmakers are crossing party lines in a way that isn't making everyone very happy case in point an oval office meeting between president trump and democrats where they hammered out an agreement to raise the debt ceiling for three months and keep the government running while what in the

world is next here to read the tea leaves with us is ned ryan founder and c.e.o. of american majority ned what do you think is happening because a lot of us are scratching our heads you're on the inside of the g.o.p. what do you think. i don't think it's really perplexing if you understand some of the dynamics that have taken place over the last eight or nine months i mean really gave paul ryan and mitch mcconnell the ability to push through at least some legislative items and all that they really accomplished was removing all doubt as to their legislative incompetence so trump really asserted himself in that situation and what he did lindsey is you realign the legislative agenda between now and the end of the year he didn't want a long drawn out debate over the debt ceiling he wants to get to tax reform because that's one of his big items is one of his big campaign promises he wants them to get to tax reform get debt ceiling off the table push it back to the summer and let them focus on tax reform which you know i certainly hope that next week the g.o.p.

congress led congress takes up tax reform and starts to hammer these things out because you and i both know tax reform is not going to be easy to figure out but it's something that has to be done i think it has to be done for republicans if they're going to have hopes of keeping the majority in the house and the senate in twenty eighteen even though the senate math favors the g.o.p. and twenty eighteen right this is one of his top line talking points and during his candidacy he's got to get this done nothing was done before the recess we don't have a lot of details on that tax reform voters want to see that was this approach that we saw in the oval office you probably saw that photo two through the the window into the oval office you saw them you know in the shoulder and anyway it was it was a dramatic photo for a lot of us going ok something is being worked here and a lot of people say what's being worked between the democrats and the president is not a slap on the rest of the g.o.p. it is a declaration that it's war and less you get things done am i right on that. i think

maybe is a better way to say it is trump is going to get his agenda or some of his agenda passed he will work with republicans or he will work with democrats it doesn't matter to him he is going to get some of his agenda passed and you know quite frankly wenzi i think the thing that was mystifying to me that some of the consternation is trump is not obligated to watch his agenda fail because of the incompetence of g.o.p. leadership and so what you saw this week is him saying ok since you guys can't figure it out i'm going to assert myself and help you figure it out so i don't really think a lot of his base in any way was to any consternation at what he did and let's face it lindsey before they went into recess break congress's approval rating was at ten percent i saw a poll last week from the economist that showed it eight percent with paul ryan strong approval rating at six percent so no nobody's looking at donald trump and blaming him for this they're looking squarely a g.o.p. leadership and saying you have been incompetent you better get your acts together

or guess what there are primaries in twenty eighteen i think a lot of people who saw that photo of him and chuck schumer gazing into each other's eyes breathed a sigh of relief as far as his base went because at least something's getting done and that's right what i want to know is what in the world is going to happen to paul ryan. you know you saw rumors on wednesday from the washington post again the there are some people discussing what is going to look like for his future as speaker of the house i think paul is on a very short lease a very short runway in regards to will he be speaker in the near future because again a he has very low approval ratings b. he's got to get something done he has to get this legislative agenda through and in some ways lindsey it's a little unfair because i think a lot of the blame should rest squarely on mitch mcconnell's shoulders because of the senate's inability to get anything through and so you know paul ryan's in a very tough spot he's got to get something through but at the same time the legislative agenda cannot be successful unless the senate gets its act together and

that really requires mitch mcconnell putting his shoulder into it and making something out of it and how in the world can he do that now we've seen the jabs from trump straight toward him and a lot of people say he hasn't done enough i mean that number you cited about the opinion about congress i would believe the lowest number out there so how can i want to hit back at the president as we go forward to get to get legislation passed for the american people. you know the thing that is interesting about mitch mcconnell in my mind and i say this in some ways not to be too hyperbolic you'd rather be prince in hell than a servant in heaven because i think he's very consents because regardless of what happens in twenty eight scene he will be either men minority leader majority leader he doesn't care he'll still be leader and so i think there is a very small small ball world view of mitch mcconnell he just wants to continue being leader and quite frankly whether there is success with a legislative agenda or not still be in leadership if not the leader of the senate

republican caucus so that to me is a little bit troubling when you start to understand and realize mitch mcconnell really does not feel a strong incentive to push through some of this agenda do you think that this could bleed into foreign policy as speak of forward maybe the g.o.p. wasn't surprised about this donald trump seems to it seems to have been running its own party from the very beginning has splintered off this is just the tip of the iceberg let's go forward but let's face it to have made this comment this week already this isn't in trump's mind about republicanism versus democrat ism it's really about what i call american ism and so he's not going to be an adherent he was an adherent to maybe traditional republican ism in the campaign and so i think for some people to somehow look at him through this lens and say why are you acting like a traditional republican president well you haven't been watching the last couple years so i do think that you're going to see some things that might cause some people to be perplexed but a lot of us that have been in the base and been watching trump this to us is just

you know what he sat back and let them try and do something he's now asserting himself he has strong views on some of these things he's going to make his agenda happen again the thing that troubles me a little bit lindsey is he's going to have to go it alone and maybe work with the democrats i think he will get some of his agenda items passed it might not make all of us happy however ok real quick before we go i want to ask you what you think about tax reform the sticking point is going to face as you said it's it's emergency time you've got to put the pedal to the metal on that sticking point steve do you think. well you know it's one of those things that i've said there's four things that i'd love to see happen shoot for a corporate tax of fifteen percent of the push back and say twenty percent find settle for it in your tax cuts of the middle class and small business and then also repatriate that revenue sitting overseas which is anywhere from two point six trillion to four trillion if they get those four things done lindsay the base and i will be thrilled with that and we think it'll be a right it will be

a good step in the right direction so when the republicans start talking about sweeping and comprehensive tax reform that troubles me as i'm not convinced they can actually walk and chew gum at the same time so you know as i tell people keep it simple stupid the kiss principle when it comes to tax reform take those four things get i'm gone take another bite at the apple for the twenty thousand elections that make sense to me thank you so much for your input good to talk after so long ned ryan adams the c.e.o. of american majority. when you think of nestle you think of candy ness café even hot pockets and sometimes bottled water now it wants you to bring home the bacon egg and bacon that is the swiss company is looking to so it's in the health food game purchasing the california based company sweet earth which makes vegetarian burgers burritos and you guessed it bacon it's a smart move for the company as people turn to healthier are alternatives to packaged meals but with sweet earth advantageously healthy branding perhaps now

people will think nestle has turned a corner with fake names that's all for now everybody check out the show on youtube youtube dot com slash boom bust our teeth thanks for watching next time. coming from a trumpet ministration which is being victimized by this. campaign

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apparently better than food. and see people you've never heard of love redacted tonight was the president of the world bank though kate because many seriously he sent us an e-mail. syrian army says that it's now. just a few days to be liberated in the city perceived by terrorists for three years. for his newly appointed ambassador to the u.s. meets with the american president in washington we look at what challenges the diplomat is likely to face. in an exclusive interview given to germany's foreign minister suggests that sanctions against russia could be lifted if proper troops in eastern ukraine is established.