hi, everyone. welcome to "on the money." i'm becky quick. the state that had more than 900 earthquakes last year and most were manmade. is cheaper energy worth the price? our conversation with former president bill clinton. he talks the clinton foundation, hillary's chances and how to fix america's tax system. >> this is not rocket science and it shouldn't be considered theology. for most retirees it's their biggtes asset but should you take money out of your home with a reverse mortgage? and looking for a few good men and women, the secret service. our kate rogers gav >> how do you think i did? >> we'll fd out. "on the money" >> "on the money," your money, your life, your future and now becky quick. > earthquakes are frightening

and destructive and mostly they are a force of nature when they are not. fracking is now responsible for half. current oil production in the unitedte sa its aftereffects are also producing earthquakes. that is our cover story today, and brian sullivan has more. >> reporter: these day texas gets most of atten in e oil wor northern rival which may be america's most promising oil producer. areas of oklahoma are considered some of the best and lowest-cost oil and gas regions right now. the area is hotor f a few regions. one, it's a relatively new oil and gas place so, two, land prices never really spiraled out of control and, three, to oil people it's just got what they call good rock. a lot of oil and gas that's relatively easy and inexpensive to get to. but there may be one big risk to the region that has little to do with money. earthquakes. pawnee, oklahoma, recently hit by its biggest ever quake

measuring in at 5.8, the second earthquake in the state exceeding 5.0 this yore and the state has gone from an average of a few a year to more than 100 earthquakes in 2015. many in theci sentific community believe they are linked to underground injection of wastewater linked to fracking. regular lators have ordered operators to stop wastewerat injection around the pawnee earthquake epicenter but in a state where oil and gas with major economic and political forces that change may set off a whole new set of aftershocks. for "on the money" i'm brian sullivan. wha can regular lators and the industry do at this point? joining us right now from oklahoma city is todd halihan, a geologist and professor at oklahoma state university and, todd, thanks for being here today. great to see you. >> thanks for having me. >> you know, i've always thought of observing owing as tornado alley, a place wrehe you see a lot of tornadoes but not earthquakes. now they are talking about earthquakes, small earthquakes

on a daily basis, so what's going on? what happened? >> so with the increased production and increased production of wastewater, we've had higher injection raised which have caused a lot of earthquakes so we flee them -- at a peak you feel them several times a day. >> explain the link between the wastewater disposal and some of the quakes that are happening right now. you're convinced that this is something that's a cause and effect. so there's uncertainty in some parts of it, but basically what you're doing is you're getting water into faults -- you're basically turning the air on on a air hockey table and getting puck to move around. in thi case we're getting pressure changes around fault, faults that already want to move and you're al through to have the pablt to move a little easier. regulators have actually shut down some of the disposal wells around the pawnee area. doou y think the wells need sob shut down or is there any oth

solution? >> one thing they need to deal with as the price of oil comes back up they have to try to firegu out if they can proactively manage these instead of doing these on a reactive basis because the operators are trying to do the right thing. that's managing, can we see these coming before they hit us as opposed to just trying to react, and that's going to be a diff manage that we've done previously. >> how would you change how the fracking is being done? is there something that would allow it to be less of an issue? is there another way to do it? is it too expensive? how it wlork? >> injection is one of your cheapest ways to go so you're disposing of water at about 50 cents a barrel so if you have ten barrels of water per barrel of oil you've got about $5 in disposal cos.st if you start with the technology that costs $5 , now you've got $50 of disposal costs and you can't afford to produce the barrel of oil so you've got to try to figeur out technologies that will work and management strategies that will

work at the same time keeping the economics in check. >> how come this is happening in oklahoma and not other plesac? it's not the only place -- only placg is done bullet only place we hear about the huge increase in the number of earthquakes. there's a coup here. our formations have a lot more water and so people producinga not producing as much water. we're getting about ten barrels of water per barrel of oil on average, and then the other problem we've got is our disposal interval, been using that since the 1930s, but now we're getting pressure differences are generating the earthquakes, and the formation that's going into geologically is m prone to have earthquakes than other areas. >> how does the industry work with regular lateors? how do the regulators work with the industry, and is thereto any sort of middle ground? >> we don't have a legal framework to work in very easily because people don't know what their liabilities are and they don't know how that's going to work out, and so the uncertainty and the number of companies involved make it much more

difficult do tackle the technical problem. >> this reminds me of a lot of areas we're sineeg at this point. technology is advancing so quickly when it comes to things like uber and self-driving cars and things like drones that are going to be delivering packages. it seems like technology is moving a lot faster than the regular industry framework can keep up. you think that that's what the problem is. >> the problem we're not investing in the s side of it and in order to move forward we need information of what's going on which involve collecting datea and drilling holes and that's not a cheap prospect when you're down about a mile down so that investment that we've done for problems previously isn't happening on this one. >> in the meantime, while we figure all of this out, how nerve rack something to be feeling these things on a regular basis? >> it makes you a little unsettled and the pets don't like it very much. a lot of people don't enjoy it, and they are trying to figure out what's supposed to happen and people are looking for who

to blame, and there's blame to go around, and people can worry about those issues, but it's the more important issues to get them to stop because it helps out both parties involved, both the people that are shaking and the industry that's trying to produce energy safely. that combination, nobody wants the earthquakes. >> todd, thank you for joining now here's a look at what's making news. as we head into a new week "on the money." the federal reserve's open market committee did nothing at its meeting this week, and that was seen as big news by the markets. the fed held ratests eady a zero. that was widely expect the, but it does lend to this exuberance on the street when it comes to the stock market. however, the fed chair janet yellen did signal a hike is likely to year. this tim around it was not the unanimity that we've come to expect of the meetings. three members of the fed actuallyis dsented and that's an unusually large number. these are members who wanted to go ahead and raise rates and the

fed lowered its projections for future jumps in th economy. all of this sent stocks soaring and the nasdaq hit an all-time high on wednesday and thursday. the dow and the s&p 500 climbed as well mid-week. though stocks fell on friday. two ceos under fire on jo stumpf of wells fargo faced a blif attack from elizabeth warren. wells fargo bankers opened 2 million accounts for its customers without their new jersey or consent to generate fees and meet sales goals. stumpf said that he accepted fully but senator warren wasn't buying it. >> you haven't resigned. you haven't returned a single nickel of your personal earnings. you haven fired a single senior executive. instead, every dentally your definition of accountable is to push the blame to your low-level employees who don't have the money for a fancy pr firm to defend them selves. it's gutless leadership.

>> and mylan's heather bresch aced harsh questioning from a separate committee. the drug company raised prices for its epipen by 500% over the last ten years. up n we're "on the nemoy." there's so much road rage that people believe that the political and economic order have let them down. >> my conversation with bill clinton on frustrated electorate and what that could mean in november. and later, you've been paying your mortgage for decades. is it the right time for a reverse mortgage? we'll have the pros and cons. right now though, take a look at how the stoc at mercedes-benz, we make every vehicle to be eye-catchingly beautiful. we make them to be exhilaratingly agile. we make them to be meticulously engineered. and for the cla we also made it...for this.

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if you want to know what bill clinton think all you have to do is ask. we had a chance to do that recently, and he smoke about hillary's chance to become

president, fixing america's tax code and whether the clinton foundation would exist if there is another clinton presidency. >> if hillary wins the election, it would be impossible to do it. the economics of it won't work unless there are corporate sponsorships and unless we can have people from all over the world here. a group like this working together can do something faster, cheaper, better, but it can't be generated from somebody like me who is outside government but whose wife may be in it. >> because obviously people would look at you as a conduit to getting through to -- to -- >> yeah. the stuff that they said so far is just bull but if she were actually the president it would raise too many questions and i think it's fair. >> john stumpf, the ceo of wells fargo being called before congress because of widespread

fraud, opening a lot of differ accounts. a lot of people look at these and say that this is emblematic of why americans don't trust big business, why they don't trust police, why they don't trust media and don't trust the establishment. it is. >> is that a valid story line for them to be believing or not based on what we've seen? >> yes. it's one of the reasons the political and economic order are in great disrespect or disrepair. give you an example. i was really surprised by this wells fargo story because if you remember in the housing crash in 2008 wells fargo got pretty good marks. you know, their mortgage practices were less deceptive. they had less failure. they were generally thought of as a really responsible bank, so i was totally dumbfounded when i saw that they had these employees opening all these accounts. they fired all these people, but

they were all lower level people. it's very difficult to believ w policy and that all the policy-makers have been held accountable, and i think wells fargo ought to come clean on this. it's -- just get to the bottom of it, tell the truth and clean this up because we can't afford it. i mean, it really broke my heart. yeah. it was shocking. another topic we haven't gotten to yet is the corporate tax rate. we've got different proposals that are out there. what's the right corporate tax rate to make sure that you're bringing in income but also incentivizing businesses to be investing here in america? is it 15%? is it 35%? is it somewhere in between? >> you know, when i was the president who urged it to be raised to 35%, but when i did it, it was precisely in the middle. oecd countries. it isn't anymore, so i believe -- i think it should be lowered. this is just me now.

i'm not speaking f anybody. i think it should be lowered, and there should be -- do sort of what the japanese did. we should try to get it as close to the international average as we can so we'll be competitive so this is not rocket science and it shouldn't be considered theology. this is a practical problem that should -- we should do whatever is necessary to maximize the job growth in america. >> and finally i'll just ask you. which are less than 50 days to go to the election. polls have changed recently. moment changed recently. are worried? what do you think happened? >> hillary's got to bank on the fact there will be a lot of people watching the last debate and just go out there and talk to people. you know, not being affected by all the meanness and all this stuff that we've seen. you know, everybody's kind of settled down now. i think they just want to settle down the last month and a half and take a good look at this and make a good decision. i still think she will be all

right. you've just got to get out there and work and let the american peop decide, and i still believe that in the end they will choose answers over anger and empowerment over resentment, unity over division and bridges over walls but they may not, and -- and that's up to our fellow americans. they can choose whatever they want. >>sir, i want to thank you very much to have your time. we really appreciate it. >> thank you. >> good luck, mom. >> thank next, we're "on the money." if you're house rich and cash poor a reverse mortgage could help your monthly finances, but is there a downside in the future, and is this right for you? and later, the secret serve is hiring. do you have what it takes to protect the president? our kate rogers takes us t

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for cash-strapped retirees a reverse mort sound like a pretty appealing option giving them access to money tied up in their home while still allowing them to live there but it is a solution that does have some risk involved. senior personnel finance correspond sharon epperson joins us with the details on this, sharon, why don't you just explain to people what these are and who qualify for them. >> well, reverse mortgage saloon that you're taking out. you have to be 62 years old or older to qualify or you have to be living in your primary residence, and you also have to consider whether or you are going to be staying in that home and really are a good candidate for taking out this reverse mortgage. way that it works is a little bit complicate the. it's important to understand that this loan, unlike like a traditionamortgage, it's going to get bigger over time. you go t take out the loan. getting bigger over time because back while have you this hat loan and you still have to have money on the side to pay for taxes and insurance as well. it really works for someone who has paid off some or most of

their mortgage. if you haven't done, that probably doesn't make a lot of sense, but when you leave the home or if you pass away, then have you to pay back that money so the thing to remember is that if you don't have the money to cover that or if you're estate doesn't, there's not going to be much money left for your heirs. >> the house gets taken away if you can't pay it back at the end of it. >> exactly. a lot of us the home is the biggest asset you'll ever have and you can live off that have but what's in the fine print? >> if you've paid off your mortgage, if most of your net worth is tied up in the home and you're extremely house poor, this may be something you want to consider, because the other thing you have to consider is that you are going to stay in that home and that you're healthy enough that you're likely to be able to stay in that home. >> what happens if you leave and get forced into a situation where you can no longer live at home and need to go to a nursing home or something? >> your family members will have to pay that money back so that's something to really consider. it really works best for someone who desperately needs that

money. doesn't have another place to go and most of their equity, most of their knelt work is in that house and then as i said you can take it in -- in monthly installments and take it as a lump sum or as a line of credit and what financial advisers say that this may be a good idea for some people. the only way of really works is if you take it as a line of credit because then it's a more disciplined approach. not getting all this money. >> think it's time for a taking the money as you need it, and that's another key point. you want to use the money that you use from a reverse mortgage for your living -- for things that you really need. >> essentials. sharon, thank you very much. >> my pleasure. up next "on the money" a look at the news for the week ahead, and talk about tough. our kate rogers finds out what police, drop your weapon!

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even if the market crashes, and seniors lose everything. katie mcginty is working for us. a mother of three, and ninth of ten kids, mcginty knows what matters. she'll fight for equal pay, affordable college, and... she'll always protect social security. dscc is responsible for the content of this advertising. for more on our show and on our guests go to our website otm.cnbc.com and follow us on twitter @onthemoney. stories coming up that may impact your money. mononday hillary clinton a donald will face off in the first presidential debate. lester holt of nbc will moderate. and 56 years ago the country watched its first presidential debate ever on television. the candidates, you know this, richard ni and john f. kennedy. on tuesday, we'll be getting a report on home prices with the case schiller index. on wednesday, the latest durable goods numbers are released, and

on thursday we'll get a report on the economy with the final read of the second quarter gdp. also hpyap national coffee day everybody, for any of you who need your caffein kick. look out for deals come thursday. ne a job? guess what. e secret service is hiring, but to say that the training regimen is tough that would be putting it very mildly. our kate rogers visited the beltsville, maryland, training center to see what it really takeur president and she joins us now with more. >> that'right, becky. if you want to become a secret serve agent, first you'll need to pass an extensive background test, drug test and lypograph and then comes an intense round of training. until 2016 only 10% of the 22,000 applicants the agency received even advance to the background check. after spending a day with trainees at the james rowley training center i found out why. >> holster here. >> what goes into secret service t training? >> police. >> please help mean. >> you'll learn how to handle emergencies. police, droppur we!

>> secret service trainees are put through a myriad of challenges including virtual active shooter drills while remaining calm and collected is key, and there's extensive firearms instruction on range. how do you think i did? >> we're going to work on our alignment a little bit. >> future agents also go through intense hands-on training on shutting down threats to their protectees there. i am pretending to be president working a rope line. there's also controlled breaking and evasive driving training. >> let off right here, get back on and minimize your input. you' doing well, very well. among the most important qualities for the agents, being physically fit. not for the feint of heart. >> i'm going stay here at nbc. >> at the academy put through grueling workouts every day because the job of protecting can and will get fimpts at a go todlim are the the academy but i think i'm better suited to did go through the

polygraph and the background check and the drug test? >> they didn do any of that but i'm pretty clean cut. i would have passed that and the physical training, like wrapped in eyes in a bathrobe at the end of the day after spending the day at the academy. >> how sore were you? >> i work out and exercise a couple times a week? thought i would be doing fine. doing straight up cross-fit stuff up there. but my weights werect aually wood. they had 70 pounds and i said, listen, i'm game to try a lot of things. i' n going to get that up in th it was 35 pounds. >> you're a very good sport. >> thank you, i had a good time. >> i'm never going to qualify to be a secret service agent. >> i don't kno if i want to. really tough. >> kate, thank you so much. >> thank you so much. >> that's the swho for today. i'm becky quick. thanks so much for joining us. next week chip cards turn one. they slow you down at the register, but are they doing any good in terms of protecting your safety? each week keep it right her "on the money."

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today, wilmington is mourning the deaths of two firefighters killed in the line of duty, two others remain in the hospital in critical condition. we're live with the latest. shooter caught. police in washington state arrested a suspect whom they say opened fire at a shopping mall killing five people. what we are learning about him straight ahead. and another night of protests in charlotte, this as police released some dash and body cam tapes of their deadly confrontation with an african-american man earlier this week. good morning, this is nbc 10 news today i'm