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the global economy has changed a lot since the two thousand and eight financial crisis not everyone trusts the markets the way that they once did but not too long ago we learned that there is a certain luxury product that promises a better return than most stocks and even gold to hear more on this we're joined now by jeff burke founder of breathe a porter hi thank you for joining us jeff you sell this highly coveted item which is the arm as birkin bag but it's obviously not something that everyone can afford so for that reason alone is it really that strong of an investment. it's not so much not people can't just only afford it is the difficulty to get it even if you can't afford it and there's a secondary marketplace where people are gladly paying those fifty two hundred percent over the retail food and. when it's brand new and i've read

a lot of these articles about burke i'm innocent as an investment vehicle and they certainly appreciate and price every year as a present priest almost every year and but to say that it's squarely an investment getting out of it is only is reputable is the person selling the bag so if it's if a normal woman is carrying a bag and she thinks everyone's so in it for twenty thousand dollars if she jumps on e bay and tries to get twenty herself it's there's an authenticity concern great so the people the reason the birkin does so well as you just said is because it is so exclusive even if you have all the money in the world sometimes you can't necessarily get your hands on one so is that the secret to success in this very crazy retail industry right now to just sell something that you don't make. a commitment to quality you know however the demand that they've somehow built by design or not there is still a high commitment to quality in the making of the bag itself the bag that you have in your mind's eye is probably forty to forty eight hours to make that thing by

hand. so i think a lot of people are going to where do you see not only just beauty but what they're getting for their money and you know. that's what it's so the economy and the job market has have both changed a lot since the recession and not everyone has necessarily felt the recovery so since two thousand and eight how do you think since you work in the industry how do you think the luxury goods market has fared. this comeback in a big way i would have to say the biggest thing they've done is really down on just in time manufacturing you know when the plane crashed it gave birth to this whole industry called flash sale which is gilt common rule on dot com and for a period of time you were able to go on and get why you. polled the purple label at fifty dollars for a three day period. but then people got conditioned so if i'm a pole customer and i roll into a wall in a way for gilt sacks calls. they say killed and now the fly steel industry has

really gone away ok well i want to ask you about amazon quickly because it's hard to talk about online retail without talking about amazon and they just announced that they're going to collaborate with calvin klein for an exclusive exclusive products but the one criticism of amazon is that it doesn't really have the cool factor that some of the other high and online retailers have so do you think there this new project with calvin klein is going to do well i'm sure it's going to do well but you know underwear is really much more a mass market product right then a period valentino pumps or an arm as burke and or. something we talk a lot about on the show is how the internet has disrupted the retail industry every industry in particular retail but you were lying lot on instagram for yourselves which i think is so interesting so what was it like creating a company and relying on instagram in this very tough environment you know my way if i had been tinkering with the birkin's on

e bay and she was studying the few other people there doing this and she just came in to me in two thousand and twelve she's like well no one's on instagram i can figure out the d.n.a. of this the hashtag bird can hash tag thirty five centimeter and we just built a organic community that's like eighty thousand people now when we put up the bag and she also knew that authenticity is a concern for people out there and she was very also about taking pictures in our house on the couch from the wall she just had this theory that if i'm successful people are going to know my house and they're going to know that i have that bag and that's a real bag so we have a community now about eighty thousand people will do probably eighty million this year and over fifty countries thirty five percent of our business is the middle east so what is the difference between uploading pictures from your home on instagram versus e-bay or amazon. for our level of game on we do have an e bay store and then all in all honesty people know who you are so if there's a bag on e bay that's thirty thousand bucks they're probably going to pick. the phone calls

directly on that you know this very sophisticated customer that's a woman who knows that hey maybe i can get a deal or hey if i water them the money at least i can save maybe three percent on the credit card fees and have to charge me so since you're pretty reliant on social media instagram is so big for your company what is what are your security concerns because obviously everything is done online so how do you assure people that you're not just a thief if i don't why are you one hundred thousand dollars on the street or on the street and it's really it's just just like there's a huge community of guys that are motorheads and they just follow these nine hundred sixty seven mustangs they talk about it all the time there's a parallel universe where there's hundreds of thousands of women thing like purse blog and they're constantly do you would you think a preview porters i want to use them or they would just and just work on the street constantly delivering stuff on time sounds like you've gotten up there at a time jeff burk founder of preventive porter thank you so much for joining us.

between stagnant wages higher cost of living and expensive college degrees it's no secret that the american middle class has felt squeezed financially but there could be another factor we've been overlooking that's having an even bigger influence here more on that we're joined now by devon fergus author of land of the feet hidden costs and the decline of the american middle class. devin i want to start out by talking about your book land of the fee which you say the explosion of fees has been overlooked when we talk about wealth inequality so what do you mean by that sure. he's have risen both in the public and private sector of the last generation and those fees are increasingly. grows in the areas of mobility housing education employment and in transportation and so it becomes a barrier to the middle class and so i know you just mentioned

a few of them but the four main areas are housing work transportation and schooling out of the four which is which has the worst when it comes to sure that's a great question i would probably say the worst is perhaps one can argue student loans and often because it's the first first major fee that people face consumer space and also has a sort of hidden hangover effect and so student loans. you get the student loan gets to loan payment. it increases your debt to income ratio which means that it lose your credit score which means that she raised your interest rates for for a home mortgage in order to buy a car or whatever consumer product you want to purchase is so supposedly a student loans to those last ten years but the average person who takes out of the loan as two or three graduated seniors takes twenty one years to pay off their student loan and it's going to continue to increase over time so how and when did

this buildup of fees began i mean did it start with one particularly industry. in part to start with i think it started both with the public and private sector ramy start to the private sector first in the baking industry first. in things like. fees things like that sort of spread to other industries in other fields also to the private sector and for those for the for the publics for the private sector fees or are we to. to raise revenue and also to obscure the true price of a product but for the proposed became a way to sort of to close revenue gets this was a profit stream for the private sector in a revenue stream for the public ok i want to ask you quickly about telecom because according to the consumer federation of america eight hundred t. verizon and comcast are sixty billion dollars annually. which is just outrageous to think about when i first saw that number i couldn't believe it but i mean how do we

let them get away with this why does this keep happening sure it keeps happening. i've actually written about the previously the telecom industry in ways. sort of consumers. have to in part because of lax oversight and my concern is actually down the road with the current administration. boasting about the rule back of regulations that's going to have an impact probably down the road where you move the financial regulatory cops off the beat but to happen is great offense for predation and so that's what you will have in the future and that brings me to my next question about richard cordray who obviously just stepped down from the consumer financial protection bureau he'll be out by the end of the month and he was really looked at as a very tough regulator especially when it comes to things like payday loans and mortgages and so on but obviously he did not come into the picture until after the crisis so how do you think he and his predecessors that were in his role

temporarily beforehand did they make any progress oh no absolutely. pity loans to the ways in which to sort of try to grossly roll back into force payday loan abuses the also had some impact in terms of student loans as well and so i think he had a solid start. to great concern that with the do a bit of congress they might do rollbacks and dodd frank maybe is one reason is that the court is sort of stepped. into. the concern is what comes in the aftermath of richard cordray great so it sounds like you might be concerned about who could replace and precisely who replace him is really the big question though the though of also also heard that because he has to this is going to be less of a of a will push to roll back the influence of powers of c.f.p. be so maybe the congress and the white house might focus on things like like tax reform or other financial issues ok so back to the u.s.

economy for a second if in a perfect world we found a way to get rid of all these hidden what would the u.s. economy look like i mean these companies are making billions of dollars a year it sounds like achieve a few g.d.p. percentage points off sure they would be. looking at the micro level or some level you mean to individual u.s. households and so would add maybe fifteen to twenty percent back to the pocketbooks of the american consumer that would in turn mean more money in their pocket to spend on more goods and services as well so and we're also fees is also a massive transfer of wealth from the middle class to the one percent and so a sense would be less of a transfer of wealth as consumers use the use of money in their pockets to buy goods and services that sounds like it could have a pretty big impact it could absolutely so obviously it's a pretty significant situation in the u.s. how does it compare to other countries i mean is this a problem anywhere else in the world. i mean also in the broader sense the rise of

fees and is certainly a problem particularly u.k. there's a organization called debt on our doorstep which was created really in the middle of the two thousands of on the eve of the financial crisis so deftly the question of fees and more broadly has an impact as an impact everywhere we could almost think of the u.s. as some kind of canary in the mine things my started the u.s. or even more specifically within within africa acutely. didn't protest to the nation in the goes goes abroad. so people talk about the be the america the finish you agree american is as these american products start at home and go abroad to create abusive financial practices ok thank you so much for joining us stephan ferguson author of land of the thank you.

earlier this week pope francis was gifted a two hundred thousand dollar lamborghini that share the same color scheme of the vatican flag but he won't be writing it around the holy see as promises instead he signed it before to. according to the vatican proceeds from the auction will go toward projects helping christians return to their homes in iraq that were destroyed by isis the funds will also help female victims of human trafficking and medical groups that provide services in central africa it was definitely a sight to see considering the pope's dread of the traditional papal limousines on a normal day the only vehicle you'll see him in is in one thousand nine hundred four for. that's all for now be sure to catch boom bust on direct t.v. in the united states you can find us on the r t channel three two one and if you miss us on direct t.v. catch boom bust on you tube at youtube dot com slash boom bust archie thanks for watching next time.

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i seem years ago i traveled across the united states exploring america's deadly love affair with a gun if a bad guy tried to get to one of my family members he would have better luck with that. they are and hurting when i buy my babies says my book was published in the year two thousand more than hoffa million americans have been killed by firearms in the us i point out is thought to me as i did this is a middle school we go through drills and we put ourselves in real scenarios it was interesting to see who actually got hit by the gun fire just saw i did to return to the subject to track down each gun owner who i'd met and photograph those years of

god i don't know this but we are not. the people she like to see people say they see that she made that. up. the headlines ought to international keep global decisions are on the whole. the former ruling coalition in germany and three.