i hate it but the law of the united states black or white actually do state that any allegation of sexual of sexual assault or rape or something like that the person has to come forward and talk about their sexual history they have to prove that it actually happened and we're not seeing that we're seeing now congress that says we don't want this anymore anybody who alleges anything should be believed right when they allege that and i do agree that we need to look at the evidence but right now nobody is saying that they need to do that yes those voices should be heard more but all we're seeing right now is people coming out and saying that that this is this is happened because she said it she shouldn't have to testify there shouldn't be cameras there should be transparency but the rules of evidence the federal rules of evidence actually student united states of america that rape people who allege that they were raped yes this is hard yes this is tough but they have to provide evidence of that and their sexual history can be called into question and congress is saying well but if you come against a republican or if you come against the nominee for the supreme court of the united states you don't have to do any of those other things that us normal americans have

to do. is if we look at the broader picture and an individual. an individual is accused of something as serious as sexual assault which is this case is a tendency do you think the media to jump. in and how can that be just and how can it be justified. i mean i think even in the way that this conversation is being framed we're already trying to blame the victim in this way this works i totally agree that you are innocent until proven guilty i don't think that's what's a question here what's our question here is are we going to take these allegations seriously for a person that is about to occupy one of the most powerful positions in this country in the society i do not believe that you know law alone completely neutralizes and makes all. completely objective that has never been the case that is not how societies function that is not how law culture politics economics and whatnot all

come into play together the fact of the matter is some people have different interpretations of the law of the constitution than others that is the whole reason why there is disagreement in how to rule in some of these issues so again we are very infamous as a society to brush away and not take seriously and actually humiliate many women that have experienced sexual assault sexual harassment and i think what i'm suggesting and what many people are suggesting is that we take this seriously and put forward a real process that hears out these voices and puts forward the conversation as to do we want to put this person into this position is that who we want to represent this is that we want to have to have something like that. so the point that you're making was that we need to listen to these voices we need to listen to these women and we need to ensure that they are that their voices are heard that they come out

with something to make sure that there isn't something more serious that to lease find out the evidence yes i agree with that the problem is the question is now going to i mean you stated that yourself the question is now going to is this going to be is this the person that we want in the in the highest office of our judicial system and the supreme court of the united states and so now we're already talking that he's guilty i think the fault is more on the media it's more on some of the loudest voices against this by automatically assuming that only that i don't think anybody is not a horse's aren't your voice isn't those are voices from the u.s. media. ok well i think we're going after and that. i don't have anybody saying that that is guilty. ok thank you we're emphasizing that this is a serious issue that is pervasive in our culture thank you. thank you both legal analysts jennifer has been our president in studies at queens college in new york very heated issue thanks to both for coming on to the program. roundup of the news

for now i'll be back at the top of the hour with more but first on our international it's the kaiser report. guys or this is the kaiser report natural free range organic news like those other guys with their chicken nuggets. i don't know what that means but i do know that you and i talk about markets finance scandal and here is a market story irrational markets crazy markets there's a company called kill ray they have twenty eight million dollars in annual revenue twenty eight million dollars that's like the local cafe practically nevertheless it is worth more than twitter to weigh is now worth more than twitter twitter daily active users three hundred sixty million to way daily active users now tell me is

a canadian company and it's one of these marijuana companies the stock companies and there is a bit of euphoria people are high on these on their supply of stock here and they went public in july of twenty eighteen just a few months ago at seventeen dollars and now they were they were up to three hundred ninety four percent in one day for example it's gone a bit crazy yeah i know the twenty one billion sounds like a lot of money and maybe ten or fifteen years ago that would be considered a lot of money but these days with some companies now with market caps over a trillion dollars like amazon and apple one hundred billion dollars twenty trillion dollars are is a drop in the bucket so we are in a new era of multi-trillion dollar companies and are going to see twenty billion dollar moves ten billion dollar moves on a regular basis as you continue to ramp up this market capitalization so it sounds

on paper like a big move but relative to the market as a whole it's kind of like expected well many people around the world economy in particular the likes of paul krugman have been saying well you know where's the inflation there's no inflation all the peter schiff sort of people said there was going to be massive inflation because of all this money printing and quantitative easing and negative interest rates there's no inflation however 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. future boom is 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 the sort of melt up are we seeing an irrational exuberance again are we see is this what the fed wanted is this an engineered 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 melt up you see in the chart that that chart looks like a melt up right well in a flash it was just at the dollar was going down in value but the dollar's been moving up gold moving down so you know from a classical economics perspective we don't see inflation when we see this financial engineering and we see only money being printed and given to people who support the politicians who print the money i mean that's that's either inflationary do flesh area that's that's corruption at least this company did does have twenty million dollars in revenue so i mean there was 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 this was completely normal market action i think what caught people's attention one 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 they 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 service. 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 it's 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 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 of the 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 is like siphoning gas out of your gas tank if your neighbor shows up and sticks a tube in your gas tank and siphons gas use 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 while 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 on 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 you need to raise money and then go bill to find users but that that got reverse in

the ninety's what happened in the two thousands with the introduction 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 was in my head a we love you millennial kid involved in the markets it wasn't like but a lot of millennial think that they think that it's all social justice warriors that run all these free companies 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 outright 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. 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. welcome back to the guys report i'm asked guys are time now to go oh chicago.

talk to. talk dot com. welcome back to back what's with the ohs rex is that about maybe or chicago or bono or peter you know 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 a cancer kaga 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

measures. max last move i had zero attorney does. fair enough miss us initial jobless claims of 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 by 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 so the trump 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 you at kenya a robust consumer economy because america is seventy percent consumer driven that's what the america is about as da like europe that's welfare driven it's america it's consumer driven seventy percent of g.d.p. is consumer so consumer confidence is up whereas during 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 considering and you're not going to see great numbers but trump just inspires

people to consume. well i don't think as for his or her confidence can turn on a dime let's go back to two thousand and seven we had. 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 oh two weeks later there were no lines and no one wanted the condos that's how fast consumer sentiment can change here. you know as for trump driving this with tariffs small businesses medium size businesses are complaining even large businesses are complaining trump doesn't care he's going ahead with these tariffs anyway the now what we're talking about here so far is he's put tariffs on about two hundred fifty billion dollars in goods that's not two

hundred fifty billion dollars in tariffs rather that's ten percent tariffs on two hundred fifty billion dollars worth we just haven't had time yet for that to filter and it will now he's talking about upping that another two hundred sixty seven billion so over five hundred billion in tariffs and used. talking about upping the percentage from ten to twenty five any expects to do this by christmas ok years threaten to do it by christmas and all it is expectation is actually the now we're talking about the prices of goods all goods from china going up by a certain amount what is that amount while the ones devalued about ten percent some are talking about a fifteen percent rise or twenty percent rise perhaps in the cost of goods and

you know max that's not a good thing and there's no way anyone can climb cherubs which are a tax on consumers and which are going to under do you substantial piece of his tax cut which by the way was front loaded so that's what we're looking at here max yeah on us of course wages go up by twenty percent you know during the whole period when china was taking all american jobs they had a situation where consumer costs at places like wal-mart went down and they went down faster than american wages so that the american worker didn't really feel it because they're able to buy stuff because they got more cheap than the fact that they were getting their wages cut now it's the reverse ok prices are going up but you know we're to look at that with bottlenecks in employment wages got up so wages go up faster than the price of stuff then it's all goodness i mean there's

inflation and that could be a problem how serious is that potentially going to be if the inflation genie is let out of the bottle and by that i would i would mean that wages actually start to enter a wage price spiral something we haven't seen and decades of as you know we've not seen that since one of the seventy's or eighty's maybe the. let's look at this realistically. the. everyone's talking about the big jump in wages ok they jumped there. just as one month by the way so it could be an outlier it could be real it may continue or it may not but what we're actually talking about here is average wages have gone up. about i think the last report i recall was two point nine percent ok. year over year inflation is nearly that not quite so wages average wages

are going up. a little bit more than inflation right now but average wages distort . it's it's not the low end person or even the median person because i just don't report on their us. made hand wages especially for men 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 i found this study fascinating was all because women's wages are finally he's catching up with men now that's a good thing but you you average it all together women are going like this and 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 low median person is getting killed here max these are the people that are getting hurt and you can see it in the housing say. ale's 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 word stars for the crisis start no one does either. how's it oh how they miss you a saying is that what you just said wages are going up more than a placement 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 law 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 the rising stock market and higher wages is that the that's the the housing number is one piece of a bigger economic pie again agree all right michelle a chance here is there for a second so janet yellen you're a number he ran the fed for a while she recently suggested that the fed should promise to deliver future booms decease she said to deliver future booms what it would thoughts on this isn't right

crazy the she's got a heart occurred 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 i refuse the word crash or not. but will. 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 to 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 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 market should never go down the fed should always

it's a vein 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 an aside but we got to go for now thanks for being on cars report. but if you need to go mess 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 book talked up com if you want to reach us on twitter it's kaiser report in.

america so true i. didn't expect their reaction but that's. praise for his own administration and numerous controversies as u.s. president.