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tv   PBS News Hour Weekend  PBS  December 7, 2014 5:30pm-6:01pm EST

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>> sreenivasan: on this edition for sunday, december 7. six guantanamo detainees are released for resettlement a closer look at the attempt to rescue hostages in yemen. assessing one of north korea's most powerful weapons-- the cyber attack. and in our signature segment, risk or reward: raising money online from small investors for start up businesses. next on pbs newshour weekend. >> pbs newshour weekend is made possible by: corporate funding is provided
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by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support is provided by: and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. from the tisch wnet studios in lincoln center in new york, hari sreenivasan. >> sreenivasan: good evening and thanks for joining us. the pentagon announced today that the u.s. has transferred six detainees from guantanamo bay prison this weekend, sending them to uruguay. human rights activists say the six were never charged or given a trial during their 12 years of detention. this is the largest prisoner contingent to leave gitmo since 2009, and it's the first group of detainees sent to south america. the transfer has been in the works since january, but uruguay's presidential elections delayed the deal. the state department expressed its gratitude and called the transfer a "milestone in u.s.
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efforts to close gitmo for good." uruguay's outgoing president jose mujica said friday that the detainees are, "coming as refugees and the first day that they want to leave, they can leave." 136 detainees remain at the prison, including 67 who've been approved for future transfers. in saudi arabia 135 people suspected of plotting terrorist attacks inside the kingdom. most of them are saudi nationals. saudi arabia is stepping up security after getting threats from islamic state militants in recent weeks. in mexico, at least one of the 43 students missing since september has now been identified. family members say the remains had been mostly burned to ashes. the discovery adds weight to the prosecutor's theory that the students were killed after being abducted by local police and turned over to a drug gang. the students disappearance touched off massive protests in mexico city last month. today the father of one of the students says the protests will go on. >> ( translated ): as of today, our days of fighting will continue until we find the other missing forty two friends alive.
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>> sreenivasan: mexican authorities are holding more than 70 people in custody, including the mayor, police officers and gang members from the town where the students were abducted. here in the u.s., protests over recent police killings turned violent in northern california last night. at least 300 people marched in mostly peaceful demonstrations near the berkeley campus. but authorities say a splinter group of protesters smashed windows and threw bricks, wrenches, smoke grenades and even sandbags at police. officers fired back with tear gas. two police officers were hurt and several businesses were vandalized. another round of protests is expected tonight in new york, chicago, minneapolis, miami and philadelphia. in louisiana, democrat mary landrieu lost yesterday's runoff election to bill cassidy by a large margin, bolstering the republican's control of the senate. cassidy promised to seek the repeal of the affordable care act throughout his campaign. with cassidy's victory, the republicans have gained a total of nine senate seats, giving them 54 senators and firm
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control going into the new session of congress. two more louisiana republicans won their runoff elections for u.s. house seats. landrieu's loss means louisiana will not be represented by a democrat in the u.s. senate for the first time in 131 years. and the u.s. birth rate has reached an all-time low, as women wait longer to have children. this, according to the centers for disease control. birth rates for women over 35 reached the highest levels in about 50 years. birth rates for women between the ages of 15 and 44 have dropped 10% since 2007. the sharpest drop occured among teens whose birth rates fell 10%, just in the last year. >> sreenivasan: we're learning more about that failed hostage rescue attempt in southern yemen. u.s. special forces tried to free photojournalist luke somers from al-qaeda militants yesterday.
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but the kidnappers fatally shot somers and another hostage, south african teacher pierre korkie, just before the commandos could get to them. the bbc reports u.s. special forces didn't know korkie was being held there. a charity working on korkie's release says he was set to be freed today. i'm joined now by reporter adam entous who chronicled the raid for the "wall street journal." ed in the past24 hours,3 we know any more information about any other casualties during this raid? >> no. the latest wead was the as assess that about six or seven aleda mill and none of the special that were involved in the operation, at0 totalone of them but of course, the outcome asenow was not what was intende. with the death of the to hostages. >> and at whatnt during this operation did thing gs south? >> what happened was is thate am
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to a landingot about 10&eters fd being held. and they hiked by footugh thisaa hud yards of theound when a nois heard. one official told me that it might have been a dg bark,psome. and that tipped off thels insidt were alreadyprettygger y since there was as raid late e theyen. and at that point,u w, the coulds were still on he outsif the compound and that's when am believed that one of the militants went inside a building and fired shots3 killing the two hostages. >> let's talk about the intelligence that went into that operation. obviously the timetable was acceleratedh the deadline of aossibleo governmeng together with all the intelligence resources that theyhey still didn'tknow that ts
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other hostage there? >> well, they knew that there was anothert&. but they know who it was.ally after the raid around thanksgiving or just beforetng,e . saw twoes being movedm the previouse which wasa cave. they didn't know whohsepople wes the time that it d not include the americans. that raid in november hed3 lead a specialorceso this compound. was correct in the sensethat ita secd hostage, h the americans didn't kno that second hostage wa. but gettingie inthis part of ths iny difficult. and as you know, intelligence is perishable.ightt tle bit of time, if the weather isn't right and the droneschpeopleming and ,
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quicy be out ofdate. >> so what doesso to that some ofhe u.s. officials you spoke to were devastated by thisfa., this is d yemen,at the white house i'm also talking to3 officials. were reallyrn that itas notessful. they really did take a huge risk here. they wereng0forceso rescue e yemen where,u knowa lot of things can go wrong with suicide bombers ands&t.pyu n,t t shot that s had. because they were threatening to execute himpslyte that thes taking
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place.l right,m s,oining us. thank you so much. >> thankou. >> sreenivasan: in tonight's signature segment, we look at efforts to boost the prospects of new businesses, a move that could lead to more job creation. it's a form of what's known as crowdfunding, raising a large sum of money online from many small contributors. and, it represents a big change to depression-era laws that were designed to protect those small investors from being fleeced. but as you'll see in this updated segment, the law itself hasn't quite gotten off the starting blocks. special correspondent karla murthy has our story. >> reporter: artur makylyervsky runs a start-up company that allows users to customize original artwork online to make prints, t-shirts, or mobile cases. >> takes two clicks to just
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essentially change the product. >> reporter: it's an idea that he thinks could take off. so he's working on building his business and hopes to be able to sell his idea to big investors. and that can be a time consuming and difficult process that takes face to face meetings, networking, and luck to hook an investor with big bucks. >> there's only so much that they're going to invest per year. and every hour, there is exponentially more and more and more and more start-ups getting into the market. so it's gonna be harder for us to kind of bubble up. >> reporter: but now, startup businesses could soon have another source of cash. >> for start-ups and small businesses, this bill is a potential game changer. >> reporter: that's because a little-known provision in the 2012 jobs act, signed by president obama, allows non- publicly traded companies to use the internet to raise investment capital. it's a practice known as crowdfunding, raising a large pool of money from many small contributions. companies can raise up to one million dollars a year. before the jobs act, to invest
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in most startups an individual had to be accredited meaning that they earned more than $200,000 dollars a year or were worth at least a million dollars. now, even if you earn less than $100,000 a year, you'll be allowed to invest up to $2,000 or five percent of your annual income in these new companies. >> for the first time, ordinary americans will be able to go online and invest in entrepreneurs that they believe in. >> reporter: the question is this: will it provide an opportunity for someone of ordinary means to get in early on a potentially lucrative investment? or is it a disastrous rollback of laws meant to protect investors from risky ventures that often fail? steve case co-founded aol and is now c.e.o. of revolution, an investment firm in washington d.c. he's convinced the law will encourage the creation of more startups. >> i think it's gonna unleash another wave of entrepreneurship all across the nation.
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>> reporter: case served on president obama's jobs council and was a major supporter of the jobs act. >> we need to really make sure we're doubling down on our nation's entrepreneurs, and the jobs act will help do that by providing more entrepreneurs in more places in more sectors of our economy the ability to raise the capital, either to get started or to... to grow their company. >> reporter: artur maklyarevsky says this new law can make it easier for him to raise money. >> essentially it will allow us to focus on growth much faster and not have to deal with the standard funding adventures we have to go on. >> reporter: is this also gonna create more jobs? >> absolutely. if we want to get our unemployment rate down, the place to focus is startups. if we want to get our economic growth rate up, the place is to focus is startups. if we want to make sure we're competitive, the place to focus is startups. >> reporter: according to the bureau of labor statistics, each year since 1994, startups have created more jobs than the total number lost and gained by all us
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businesses, and supporters say that by updating the law so companies can raise money from anyone over the internet, entrepreneurs will have more access to capital and will in turn create more jobs. >> the internet didn't exist 80 years ago. most people didn't have television, you know, 80 years ago. most people didn't have cars 80 years ago. the world has changed and it was time to update our securities law to reflect that. >> reporter: but at what risk to small investors, who could be putting their money in the riskiest of startups: businesses that may have failed to raise enough money from venture capitalists. >> the issue is, is it a good idea for investors? and i think the answer to that is a resounding no. >> reporter: attorney mike stocker represents investors. he says this new provision in the jobs act undoes protections put in place during the great depression. >> if we change them now we are forgetting not only what we learned then, but what we learned in this great recession that we've just come through. >> reporter: a lot of the
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supporters are saying we are just bringing these laws into this century, i mean the internet wasn't around back then and we really need to update these laws in order to reflect the way business works now. what's your response to that? >> well, that's certainly been part of the huge mass appeal to crowdfunding that it sounds kind of sexy and kind of 21st century, and most importantly kind of democratic because everyone can get involved. the thing that they are actually asking to be updated is traditional limitations on the ability of small, private companies to raise money from mom-and-pop retail investors. and those restrictions have been in place historically because those are very risky investments. >> reporter: isn't there some benefit for having this just open to accredited investors that are wealthy and maybe more sophisticated and know exactly what kind of what's entailed with the risk and are more knowledgeable about investing? >> i understand that concern. we don't have that limitation in terms of letting people buy a house which is risky.
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we don't have that limitation in terms of people investing in the stock market which is risky. we don't have that limitation in terms people gambling in las vegas which is really risky. why should we tell people they shouldn't be able to invest in startups? for the last 80 years, you essentially had to be a millionaire to invest in startups. so it was kind of a way for the rich to get richer, but everybody else was being left out. >> reporter: i know some skeptics are really worried about fraud and protecting the investors. i mean, is that something you're concerned about, that maybe some of these mom and pop investors, might get fleeced? >> i think there's always risk of that. i think the right protections are being put in place and i remember, since we started aol almost 30 years ago when the internet just beginning to be an idea. when people started talking about the idea of e-commerce, when people entering their credit cards on the internet, they said, "that's never going to happen. people are never want to enter their credit cards." over time, people got comfortable that they were going
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to be protected. these new technologies, these new ideas will take some time to really settle out and really have the kind of impact they can have. >> reporter: but there's a catch, even though startups were supposed to be able to use this new tool to raise money by january 2013, the s.e.c. still hasn't fully implemented the crowdfunding provision of the jobs act. >> i think they want to be deliberate and make sure they get it right which i understand. but i think they also need to understand there are a lot of entrepreneurs out there with companies that aren't getting started because they don't have access to capital or with existing companies that could be growing and creating jobs that aren't doing that because they don't have access to capital. >> reporter: in october 2013, the s.e.c. released proposed rules for crowdfunding and has received hundreds of comments. but today, using crowdfunding to raise investment capital from ordinary investors is still not legal for entrepreneurs. many supporters of the provision have expressed concern that the proposed rules, and even some of the requirements in the original bill, make it unworkable for many small businesses. >> it is now clear that the
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current statute has failed. >> reporter: even though the crowdfunding provision still hasn't been enacted. congressman patrick mchenry, who helped author the original bill, introduced "the equity crowdfunding improvement act of 2014" in may, the new legislation would increase the amount a company can raise using crowdfunding from $1 million to $5 million and companies would not have to provide audited financials when raising up to $3 million, up from $500,000 in the original bill. while that bill has not yet been voted on and the s.e.c. still works on final crowdfunding rules, many states are not waiting. fourteen states and the district of columbia have allowed companies raising money in their own borders to use crowdfunding an exemption allowed under federal law. at least 12 others are considering joining them. but for many entreprenuers, including artur maklyrevesky, crowdfunding remains out of reach, more than two-and-a-half years after jobs act was signed
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into law. when companies like facebook, >> sreenivasan: should small investors be allowed to fund start up businesses, or is it too risky? take our poll at newshour.pbs.org. investigators are calling the recent cyber attack on sony pictures unprecedented, well- planned and possibly the most destructive corporate security breach reported on u.s. soil. sony happens to be releasing a comedy movie called the interview which depicts a plot to assassinate kim jong un, pointing to north korea's possible involvement in the attack. there's also speculation that china aided in the security breach. joining me now via skype from seoul south korea is james pearson, a reporter for reuters and the co-author of "north korea confidential," due out in february.
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the evidnce point to north korea? >>l, there is still no evidence that-- at least no conclusive evidence that north korea was behind attacks on sony pictures. whe do know are that there ee ares te beens attacks onh korea bya gang-- which security researchers have nick named the dark-- gang which was the name e malused at thee. these hackers were on the surface looked like hacktivists. they were defacing web sites. but the code they had writtenyy designed for south korean and military secrets and also fruchlt is bases, which theree manyo whileo conclusive evidence that north korea is indeed behindsk e
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also denied it. just todayd that it was a rightous deed that perhaps some pro north thet is that if they wanted to do that attack, they would have the capability to do so. >> tell us about the structure of what amounts to the northn cyberunit.lnha&ike is has its own military intelligence which is specifically designedo its enemy. now within north korea there ant called the generale bureau.dn t, essentially.u have spoken to noh
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korean did-- they told you hackers areentivsof this. >> the defectors that we to inls hacking as af the north korean eliteaer,.s a highr pfficial dr -- profession tlferxe meaning peep that do computer science in p, you don'to be the elite. we spoke to some defectors who saidyd friendsa that came fo study atiyf automation.d learn-- and r.-now ite theses, one thing you have to remember is if you are ina higly controlled state like northa, and are you given that task of information from thee world, then it is quite threatening. the one thingu can do the state to sweetenlre hackerssurtu
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will beea nice. you may have probably a computer in yourhouse. and you will live quite comfortably. you will probably also be able to travel overseas to thef the north korean trading-- and have s to thingst most3h koreas simpe think of.sn via skypeeoulhk you very much. >> thank you.finally tonight, te so-called central park five, are rep >> sreenivasan: finally tonight, the so-called central park five are reportedly suing the state of new york for $52 million. the five were wrongfully jailed for the 1989 rape of a central park jogger. the men have already settled their suit against new york city for $41 million dollars. the price of gas has dropped 12 cents over the past two weeks hitting its lowest point in more than four years, according to the latest lundburg survey the
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average gallon nows. andr joe dimaggio sent to marilyne sold for more thann an. in the letter dimaggio asks monroereconsider their divorce. monroe'seereer3sprsfs newsr weekend.-ms for watching. captioning sponsored by wnet captioned by media access group at wgbh access.wgbh.org corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support is provided by:
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and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you.
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(man) support for this program is made possible by contributions to your pbs station from viewers like you. thank you! from american university in washington dc, best-selling author and financial expert, suze orman, answers critical questions about your money. tonight is all about you! the goal of money is for you to feel secure. the goal of money is for you to feel powerful. you have problems-- but here's the good news-- i have the solutions. (man) suze provides essential advice in... please welcome suze orman! [drums, guitar, & keyboard play in bright rhythm] ♪ ♪

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