it's quite unique this situation because it is a first i mean it's happened for many many decades ago but the idea is that when someone when the elections. i mean the minister of the state minister will leave the place to one that won the elections the problem is the polling station are different classes and you are a huge gap between the poor under rates and it has been a god has been growing in the last fifteen years we have been different people have migrated for many many years ago that they see themselves not sweets and in need to be included in this guy or not in this kind of politics so what we've been needs is actually not but much more open months more and changed the discourses of of for the politics of migration. yes actor james woods the star of hollywood hits like

a scene and white house down has been locked out of his twitter account for posting a hoax image the picture mocks the us democratic party and urges men not to vote in the country's upcoming midterm elections the social media giant claims the actor's tweet violates its policies and could sway public opinion that would lash out at twitter accusing it of killing free speech. free speech is free speech is not jack dorsey version of free speech the only use twitter accuse me of afflicting the political process when in fact the burning of me is the truly egregious interference. meanwhile while in testifying to congress earlier this month two it is chief executive praised the company's success in combat what he called opinion manipulation we've made significant progress recently on tactical solutions like identification of many forms of manipulation intending to artificially amplify

information we've seen positive results from our work. we're now removing over two hundred percent more accounts for violating our pollsters now surprise a dog this is pretty much what a lot of these other social media you companies in tech valley in california google facebook there are pretty much the same anything that could be considered right wing so called proper game do they going to eliminate they were not justified in doing it was a simple me i'm not really sure how that's consider somehow election interfering if there is going to be election interfering in a people who post off like they have to give. all the political. leader from kennedy center for office it may sound good right now to have the income because of the debt bubble and the black hole of debt there and that there would be bigger deflation and yet here we've seen as janet yellen recently suggested that the fed should create future booms right that the fed to deal with any crash they should promise market participants which eighty four percent of stocks in the us are held

by the top ten percent but that they should promise market participants a boom and is this a sort of melt up are we seeing an irrational exuberance again are we see is this what the fed wanted is this an engineer and you know you do have amazon you do have apple worth a trillion dollars there are several other heading towards that as well. you know this it looks like a mouth up you see in the chart that that chart looks like a melt up right well i mean a flashing lights is just that the dollar is going down in value but the dollar's been moving up gold to moving down so you know from the classical economics perspective we don't see inflation well we see is financial engineering and. money being printed and given to people who support the politicians who print the money i mean that's that's either inflationary deflationary that's that's corruption at least this company did have does have twenty million dollars in revenue so i mean

there were. their shares up ninety percent ninety four percent in one day and then it crashed all the way down below so it was negative for the day and then after market it went up another ten fifteen twenty percent so it was pretty crazy but at least they had revenue back in the dot com days when you had this this was the likes of every single company that went public during those i.p.o. days of the dot com boom negative earnings they didn't have any revenue so it least they have revenue so this was completely normal market action i think what caught people's attention a lot of the numbers you know the size of these ten billion dollars twenty billion dollar moves but again relative to the market as a whole this is the new normal because the multi-trillion dollar corporation so you have to adjust your thinking accordingly you also have to adjust your thinking accordingly in this new era of. you know many free services online this is the new dot com era back in your day there was a different sort of dot com era and there was an irrational exuberance but now you

know you facebook is a free service google lets you search for free they provide you all this content for free robin hood which is one of the most successful trading apps is just an app and millennial so i've downloaded it there's something like four million active users mostly because they offer they allow you to buy and sell shares for a no fee no fee at all and you're trading i don't know what it was when you were a stockbroker back in the eighty's but i'm sure it took a lot of money across investors a lot of money to execute a trade well on robin hood it's nothing well right before deregulation in the eighty's it was forty cents a share standard trading on wall street well here it's free it's free allegedly but in fact robin hood investing app secretly makes millions selling millennial user data to high frequency trading firms so it's not just selling your data like

facebook and google do. it's actually selling it to high frequency traders which explain to the audience what high frequency traders might do with this information whether front running trades and other words if you can trade for one one millionth of a second and you have information fed to you by in this case robin hood about a few trades coming down the pike and several seconds in the future you can put a trade on before then front run the trade and steal money essentially to drain money out of the out of the system so high frequency trading is a way to as we've said before it's like siphoning gas out of your gas tank if your neighbor shows up and sticks a tube in your gas tank and siphons gas you would call that stealing if a high frequency trader shows up with a server next to the stock exchange and steals money they call it market making anyone else or just say hey they're stealing but here robin hood is selling data to high frequency traders to allow them to steal from their clients but they say well the service is free you know where this free come from it came from when the dot

coms were first being rolled out in the one nine hundred ninety s. the cost of building these companies was so low and the cost of the raw materials that being electrons were free so they could say you know it with this get a million users first and then go raise money used to be the completely opposite need to raise money and then go built find users but that that got reverse in the ninety's what happened in the two thousands where the interaction of big data so big data the ability to take that free information that was being given to these platforms and monetize that that's very pernicious that's the introduction of other elements into this economy that many are arguing are highly undesirable well a few things stealing from millennial to give to the rich that's how they describe what robin hood app does when they sell their their data now that robin hood was by the way the founders come from high frequency trading so obviously they're going to

be looking at how. to that's their background they know that they could sell this data that's where they were going that's was their plan it wasn't generosity it wasn't my hey we love you millennial skin involved in the markets it wasn't like a lot of millennial think that they think that it's all social justice warriors that run all these free company here's the latency problem in other words even with high frequency trading on wall street there's still a multi one millionth of a second latency but if your customers are giving you the data in real time there's no latency problem at all you're just right stealing and your cost of stealing is reduced so according to the article robin-hood except payment for order flow but on the back of the envelope calculation they appear to be selling their customers orders for over ten times as much as other brokers who engage in the practice as a conflict of interest and is bad for you as a customer a lot of other brokerages wouldn't do this and more sophisticated investors. would

rather you charge them and not sell their their order flow too high for traders the exchanges like the new york stock exchange are selling the data frequency traders not the brokerages so they're to exchanges were involved in this massive corruption but what robin hood is saying is that we can make it even more efficient by becoming a brokerage and buying gaging in this corrupt activity and by curing alayne see a problem and by stealing from our customers because as they say if the service is free you are the product exactly it's interesting that the data from these millennialist is worth ten times as much as what other brokerages are able to sell to high frequency traders so perhaps it's because. their. execution of trades is free so there's more volume and more front running ability to scalp all of these you know millennial is trading on the likes to tell ray

because a lot of these millenniums most investors will invest in things they know if they know apple and they don't own a samsung phone now they'll tend to buy apple shares rather than samsung my guess is the premium is tied to speed because of the high frequency trading game it's all about speed look at goldman's could figure out a way to go backwards in time and still money from trades in the history they would do it but the second best option is to just increase the speed in the here and now to steal at a much rapid pace yeah i mean they could put some latency on the robin hood app in terms of executing the trade you don't know and they we know from experience we know from the experience of all the facebook information that came out that all your data is being sold to these various groups around the world in order to manipulate you well the fact is nobody really dropped it in fact there was a bump for a while and facebook you know users but it's kind of dropped off now but nevertheless

they know that these people won't give up the free execution of trades even though they're they know now that they're being scalped but most people won't still take the free trade this is the new social contract yeah you know john locke would have argued you know a couple hundred years ago that the social contract is if the government betrays you it's up to you to revolt i think that was the social contract between the governed and the governing bodies the new social contract is the wallet the government constantly pick our pocket twenty four seven donations don't throw us in jail yeah that's the social contract don't throw me in jail and i'll let you pick my pocket all day long that's a new contract in terms of this particular story seemed more like your concept of casino gulag as long as they get just like when you go into it to see. you know in vegas the house always wins but you come out feeling like you won because you got a free drink at the poker table so people feel like well it was

a great time these people probably feel like the same thing but i want to quickly do in the last few minutes here i want to point out that mortgage rates head to six percent ten year yield to four percent yield curve fails to invert and fed keeps hiking there's an interesting thing that just happened which shows that the u.s. treasury ten year yield is ready for the next leg up and the yield curve might not invert just yet the ten year yield climbed over the three percent hurdle again and there was none of the financial media excitement about it as there was when that happened last time it just dabbled with three percent on monday climbed over three percent yesterday and closed at three point zero eight percent today and it was met with shrugs in other words this move is now accepted here's a ten year treasury you see it keeps on surging and will for her at will street dot com is predicting it could possibly surge again and that mortgage rates could be right now they're four point eight percent based on a thirty year mortgage with twenty percent down and most people don't put twenty percent down but he says it's heading for six percent and none of the markets are

pricing any of this stuff because i guess they're on robin and trading for free because the bond pocalypse trade was a widow maker for ten years through and everyone's forgotten about it and that's generally when these types of things rare their ugly head and you talk about mortgage debt there's also student debt which is bigger than the sub prime debt ever was an uptick in interest rates means student debt apocalypse and another bailout so prince another sixty trillion dollars over there in the government because it's a casino ok much more coming your way right after the break don't go away. i. join me every thursday on the alex i'm with. and i'll be speaking to guests of the world of politics school this list i'm show business i'll see you then.

welcome back to the cause report i'm asked guys are time now to. chicago i'll talk to michelle block of miche talk dot com manish welcome back finally back what's with these o's max is that about maybe or chicago or both or. it's kind of. for example you live in chicago have you ever been to second city t.v. . i have been there actually ok fair enough have you seen a chicago cubs game yes i am all right so you know chicago was there for cancer

congo make a decent pizza. i'm well i think they do max but. you claim that pizza pot pie which is a combination of really is really key that looks like pizza you claim as a chicago in that that's real pizza now that's not that's just not possible measure . time actually last move i had zero attorney does. fair enough miss us initial jobless claims that hit their lowest level since one nine hundred sixty nine the temple khana me is saying your thoughts what's your take well you know max i've got to say i've been wrong about this for quite some time so a lot of people here been expecting a stock market. correction somebody were calling for a crash and it could happen it. expect more like

a japanese scenario where the stock market once it finally starts declining just keeps going down for years without ever having a crash but you know but by all measures about everything but ows ing is is looking you know pretty reasonable all but that's always what happens at the top bubbles one could have said that things looked reasonable in two thousand and again in two thousand and seven max so the question here is when this bus not whether or not things look good right at the moment. yeah but jobless claims are down the tromp mix of economic policies has resulted in more jobs that's pretty clear so what is is it the tariffs is it the consumer. friends here's a question for yet kenya have a robust consumer economy because america is seventy percent consumer driven that's what the america is about as da like europe that's

a welfare driven it's america it's consumer driven seventy percent of g.d.p. is consumer so consumer confidence is up where's during the obama consumer confidence was always down how instrumental how pivotal is that with the u.s. economy because if people don't have confidence they're not going to be out there consuming and you're not going to see great numbers but trump just inspires people to consume a mess well i don't think as sure consumer confidence can turn on a dime let's go back to two thousand and seven we had people two thousand and six actually we had people standing outside the straits lining up around the block. for the right to enter a lottery to buy a florida current zero two weeks later there were no lines and no one wanted to condos that's how fast consumer sentiment median person because i just don't report

on their ass. made hand wages especially for a man if you look at it this is really phenomenal are lower than they were twenty years ago incredible all of the increase in household income taxes as i found this study fascinating was all because women's wages are finally catching up with men now that's a good thing but you you average it all together women are going like this or men are going so actually just slightly down here over the course of twenty n. years i mean and this is what causes angry white men max but. the. when you start discussing averages a lot of it is skewed by. wages that are going up really well like eight or nine to ten percent for the top people of course are the ones that spend the money but the

median person and the below the median person is getting killed here max these are the people that are getting hurt and you can see it in the housing sales debt. down no four months in a row today existing home sales were flat mortgage rates are rising it's going to impact the housing market i don't know where stars where the crisis started no one does either exhibit a i don't. know how they missed way of saying is that wages it wages are going up more than a flesh and and housing is becoming more affordable how's that bad ok. coming more affordable you can you can see you can see because it's the bottom and person trying to buy the lower house it is unable to existing home sales were down for months in a row hardly a sign that things are more affordable max you've got this backwards you're saying

house prices well look at the house and that was climbing by two ply one nine in the second quarter on ok the stock market and the jobs numbers. the stagnation in the housing would imply that there's no houses moving at the houses are not moving at the current levels you're going to say an adjustment in prices that sounds like with a rising stock market and higher wages is that the that's the did the housing number is one piece of a bigger economic pie a good agree all right minnesota chain scarcer for a second so janet yellen you're a member he ran the fed for a while she recently suggested that the fed should promise to deliver future booms she said to deliver future booms what it what are your thoughts on this. right crazy the she's got the. a the cart before the. horse here the reason why what she's talking about what she said is the fed needs

to commit to a boom if we have another major decline substantial decline and refuse the word crash or not. but what. what she's failing to look at is the cause of these crashes or recessions. are actually the boom there proceeded it so and the curious thing about this is she is asking the fed it do what it exactly has been doing asymmetric policies at the bottom keeping interest rates too low too long at and at the tail end of every decline adding fuel actually creating the next boom she's just sang let's have more of it when the bigger amplitude than we already have and we saw it first with the dot com bubble in two thousand we saw it again without using bo and we saw

it again right now i believe there's an even bigger bubble now max people think to do bubbles and bonds it is is actually in corporate bonds max. the amount of junk borrowing to propel and actually that's one of the things fueling jobs max is all of the corporate bond junk bond issuance this floating around that supports both jobs and it supports. the low employee unemployment rate it's going to bust max bubbles bust right i mean this is she's just repeating what alan greenspan kind of advantage during his reign at the fed the so-called greenspan put that markets and then we go down the fed's it is it's a vain and make liquidity available they have now a sponsibility unlike paul volcker who took a much different approach to the job federal reserve chairman michel block hopelessly can stay around for another side we got to go for now thanks for being on cause report. but if you're

a vegan that's all stare out for one more fantastic and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert like to thank our guest miche should look talked up com if you want to reach us on twitter it's kaiser report and time by. the merck years so too. did.