proving to be a make a pain in the you know what officials are now trying to extradite founder kim dotcom to the u.s. to face the american justice system we'll bring you the latest in this cyber scandal. it's thursday may third four pm in washington d.c. i'm adding martin you're watching our t.v. starting up this hour the f.b.i. is calling it a victory against homegrown terrorism five self described anarchists were arrested after allegedly blowing up plotting to blow up a bridge near cleveland the bombing was supposed to take place on occupy wall street's huge day of action but the good guys rush to the rescue stop the men in their tracks and save civilians from danger right as it turns out the government agency was instrumental in helping the cleveland flight plan this terrorist bridge plot the entire event was provoked and orchestrated by agent provocateurs who supplied the motive and the means to carry out the plot. well now f.b.i. entrapment is nothing new in terrorism cases currently the f.b.i. has fifteen thousand undercover operatives in their ranks who get paid as much as one hund

the dotcom bubble, if the fed had raised interest rates to deal with the dotcom double, i think it would have tipped the economy in recession punishing workers and companies across the country for no good reason. influencing the federal funds rate through open market prices is simply not an effective way of calming an asset price bubble. we learned that lesson again in the early 2000s. while we should not have needed a ka castro fi to learn this lesson, the dodd/frank act now gives the fed and the financial stability oversight council responsibility for financial stability and new tools with which to help achieve it. the dual mandate is not inconsistent with strong emphasis on controlling inflation when appropriate and even with an explicit target for inflation. indeed, last january the fed confirmed a long run inflation goal of 2%. operating under the dual man date, the fed has successfully controlled inflation for three decades tp to change the language of the law to imply the fed's only concern should be inplation would send a misleading signal to a public rightly concerned with jobs

we know in the dotcom era how it really cost us a lot of years to get back after it exploded. we have legions of people putting lipstick on the pig. gm says something and everyone goes after them. we also have someone who will not give voting rights to their shareholders to try to keep it in check. i'll hang up, hear your answer. bye. >> i think that there is justifiable concern that not just facebook but tech companies at large are overvalued right now. again, i'm not a financial analyst. so i could not give you a definitive opinion on whether or not they are. i will say that having covered technology and covered the markets for some time there are signals and signs of epithucnth that are similar to some of the things that took place at the turn of the century when we experienced the first real dotcom bust. one of them is that regular people are selling shares to buy facebook. that's not a comment from me on facebook's long-term prospects but rather this idea that everyone thinks it's a way to get rich quickly, that if i buy these shares they're definitely going to go up. per

what's my worry about the crop of dotcoms coming out? pandora.aybe they're more focused on profitability but it's a bust and it will be a bust until it puts together several good quarters. pph, we think the ceo, we believe anyone can navigate troubled european waters it's this one. might best be played with deep in the money calls to cut off downside and give you upside but only after ralph lauren reports, not before. thursday's costco day. we already missed jim senegal as new ceo, craig gellinik, don't know the guy. remember, costco put through membership dues increase. we also hear from tiffany. they just gave you a 10% dividend boost yesterday. that's terrific sign of a company's prospects, but tiffany is in the penalty box after the last quarter. we have to wait and see. typically i don't care about popular sentiment indicators but as we get close to election this is different. we have -- we need to stay focused on the may michigan sentiment index. a strong one and domestic retailers that did report good numbers might get another pop. i also

parks dotcom is an amazing website. actually this is it right here. us-parks.com. have no idea where you want to go. and you're just looking for some great ideas. they have some of the best road trips in the country that are all preplanned for you. but if you do know where you want to go, click on the parks locator and you'll see in that state you're traveling to, all the parks, and even national monuments and historical sites like for example if you're going to north carolina, you can go where the wright brothers took their first flight. it will tell you where to go. >> obviously you're not going to be the only person visiting a national park. there are restrictions that apply. >> absolutely. you'll have all the restrictions, you'll get all the information that you need to go to the national park. >> everything you need to know. for a lot of people, staying in the park is not so much an option, so they're looking for camp grounds, maybe for hotels or motels nearby. >> yes. >> where do you go? >> well, u.s. parks.com actually has camp grounds and also hotels. >> ev

if you go back to the dotcom boom, has the system figured out, when you don't have bricks and mortar, things? >> they really haven't. they can use all kinds of metrics, price to book and price earnings ratios, price to sales, all that, but, basically, tomorrow is going to be mob rules. there were a lot of boom and busts back in the day as you suggest, back in 1999/2000, the dotcom busts. there are companies with real staying power, ebay, amazon.com. i think facebook is more like that, a huge company. it has tremendous potential. it is no the going anywhere. the price may be expensive. when p ale and google went public, they were very expensive and the stocks went up. that's what makes tomorrow so exciting. it is going to be really cool to watch. >> i am going to read to you from your magazine. this is a book called not buying facebook. at what is basically the last minute for this offering, we learned that some of facebook's biggest venture investors were putting up more shares than originally planned. these early investors don't just want to cash out, they want to run away. that's no

ipo road show dotcom. some of the highlights include mark zuckerberg, ceo, wants to maintain the social network as a free service for everyone and that mobile will be the key to growth and as we get more details as we're listening to this thing we'll bring them to you. >>> meantime, trade the facebook halo. the carlisle, priced appropriately give didn't traded about flat on the day overall. i'm -- it's an interesting sort. >> well i do think the guys at carlisle weren't looking necessarily to underprice it. >> right. >> but they're looking at the peer group and want people to have very good shareholder returns from carlisle, but it's a totally different company. okay. this is a state, private equity company, great returns for the lps. getting great returns for shareholders. facebook is a totally different entity and to karen's point, people right now are behind the red rope, not getting into the nightclub. they're looking at this thing. they've got a facebook account. they've got their pictures up on faceb

his assets in new zealand after a local court ruled the confiscation of his fortune was illegal kim dotcom was currently facing extradition to the united states where he faces charges of money laundering racketeering and copyright infringement american authorities shut down make a load in january and had to call in his fellow executives arrested in new zealand but voices are growing louder in the u.s. prosecution of the website and its owners is unlawful law professor eric goldman argues that the shutdown was simply a gift to the entertainment industry. there are very tightly in kitchens between the government and the content industry so for example many of the people who were in the government worked in the content industry and many of the people in the government will get jobs in the content industry after they're done as a result they understand each other's issues very well they've been there firsthand in addition the content industry contributes a significant amount of money to the administration and to other politicians who are decision makers as a result they get a great deal of inf

for nearly 30 years the city essentially grew but for the dotcom boom, which was an an anonymous amount of job growth for the city has seen relatively little job growth of all. in the context of the bay area, which is a rapidly growing economic region for most of that time, san francisco has lost its share of the bay area job market. which was formally upwards of -- 25% and is now less than 20%. though it started to track up during the recession when we did better than some other places. so that's one example of a fairly stark contrast between a growing outer ring if you like of the bay area and fairly stagnant core of san francisco. you may think the main reason for this is so much housing and population outside the rest san francisco and other areas over the past 40 years. naturally there will be jobs to support that population. and that's certainly true. suppt population. that is true. there has been a whole new neighborhoods with a retail- supporting areas and health-care and those things. but it is not only those industries where san francisco has lost its area of the regional tota

of we look at just what it is and what they plan to learn there about five minutes time also kim dotcom was make upload felt the full force of america's copyright crusade but legal experts say the moves against the sites owner a deeply flawed and suspicious we explain why. germany's foreign minister's labeled a rans nuclear energy program as an enormous danger adding that an atomic rand will never be accepted despite that berlin's just sold israel of force a nuclear missile capable submarine at a discount a key concern now is whether that submarine could be used in a strike on iran an attack that the pentagon claims would be one in three weeks it is going to teach you can report. the pentagon says they're just doing some contingency planning in case you ran attempts to close the strait of hormuz or attacks u.s. ships in the persian gulf but analysts say it's the kind of planning that drives the tensions to a whole new level now it doesn't take a rocket scientist to figure out that iran is encircled militarily here is the iran and here are the countries in red where the u.s. has military

called one of the biggest copyright infringement cases and history may go up load and its founder kim dotcom has taken steps to throw out the case the company is accused of getting rich off the massive piracy of copyrighted movies and t.v. shows causing the movie industry over five hundred million dollars in lost profit but the defense is now arguing that mega upload can't be held reliable for copyright infringement by its users they also say the u.s. simply has no jurisdiction over this case since it's a foreign company. based in hong kong and mega upload says the u.s. should have known that basic fact before taking down the service and there owing the operators and jail the u.s. government is now trying to extradite dot com and the other defendants to stand trial which they are fighting will of course keep you updated on how this all plays out. well in just a few days a statewide election will take place that may set the stage for not only the november presidential election but the future of politics overall last year governor scott walker took on unions in the rights of workers to collect

it rolls back a lot of the protects for investors that really came home to hurt people during the dotcom buzz. you know, a lot of those conflict of interest issues. you know, so that didn't work great the first time. why is this going to be so much better now? >> well, i understand there are some concerns. i think any of these concerns, it's a balancing act. how do you make sure you have access to capital that can fuel these entrepreneurial companies and innovate and create jobs and be xet fif in a global world. at the same time, how do you protect investors. i think what was put in place struck a reasonable balance. the s.e.c. is writing specific rules that won't go into effect until early next year so, there's a lot of work to be done. but the basic framework makes sense. i remind you the securities act with some of these things were kind of based on, you know, 1933. 80 years ago. other things out there were 30 years ago. 80 years ago most people were not individual investors, mutual funds didn't exist, the internet didn't exist. to say nothing should change doesn't make sense. the iss

proven to be a mega pain in the you know what official or not are now trying to extradite founder kim dotcom to the u.s. to face the american justice system we'll bring you the latest in this cyber scandal. as the republican establishment circles the wagons around mitt romney the race isn't over yet ron paul is still racking up delegates and that has the r. and c. worried we'll tell you how this texas congressman is working the system in his favor and teaching the g.o.p. a few lessons along the way. plus you know the saying ignorance is bliss for parents about the new policy for sex education for the department of health and human services coming up one cover the truth about abstinence only education in the u.s. . it's thursday may third five pm in washington d.c. i'm abby martin you're watching our t.v. the mega seizure of mega upload what is the government takedown of the popular hosting site mean for internet freedom and copyright law apparently the government doesn't need a lot of stand in their way of going after people for copyright infringement days after soap and people were voted do

this reminds me of the initial dotcom with entities that everyone was excited about and this could bease where facebook doesn't live up to what the promise of it is. >>trace: if that is the deal and people feel vulnerable with their pictures and information getting out, and we know facebook uses the stuff to build marketing profiles, but when your personal information is getting out there, do you see a situation where people start veering away from facebook? >>guest: trace, what is so interesting about the culture we live in, facebook is very cool, and in an instant it is not. and that could very well happen here. whether it is privacy. and folks just getting tired of it. it has saturated people's time, and it is all encompassing site that everyone is linked up to and it started out as a way to reconnect and share photo was people and it has, become, really, almost obsession for a lot of folks and, again --. >>trace: don't we share some of the blame? we have to share some of the blame because we put the information identity there and maybe we not use, privacy setting like zuckerberg s

butterscotch blankies dotcom, $56. >> also glows in the dark just about. >> also fun. >> and then i lovet the idea here. i love camp nights. you have your french fries that says sign me. and this is just a great way to jazz up your bed in an inexpensive way. >> i never went to camp now i want to go to camp. >> i was so much fun. last night i said, i want to go back. >> jill martin thank you. for more fun finds pick up this week's issue of "us weekly." up next, comfort food greek style. first, this is "today" on nbc. >>> in "today's kitchen," what's for dinner? how about a classic greek favorite. a pasta dish that's kind of a cross between lasagna and baked ziti. ellen is the author of "love laughter and lunch." good to see you. >> thank you. nice to be here. >> this is very exciting because kids like a pasta dish. what is this called? >> this is basically, we have -- making a lamb and we're adding -- >> i love lamb. a lot of people aren't crazy about it. could you substitute beef or ground chicken? >> you can. you can mix and match it. this here, i want to talk to you about this dish a l

facebook isn't the epitome of a dotcom era mindset that lost people fortunes.a tremendous company that made people tremendous growth. eyeballs, the old stupid metric that got people in so much trouble the last time around. you could analyze the stock by the numbers. you don't have to be an ophthalmologist to count how real the eyeballs are. facebook could be a great investment if you get it at the right price. that's core valuation analysis. it's more important than the huge number of shares that everyone's yapping about, or the fact that there are a ton of insider sellers. of course, yeah, sure, i'd like to see no expansion or insider stock, but come on, at that point, that's a distraction. why am i so confident the anti-facebook bubble heads will be wrong? first of all, people might be excited about all the latest social media ipos, but what's happening now is nothing like the insanity that gripped the market in 1999. unlike a lot of the scolds out there, i can actually remember the dot-com era, i lived through it like almost no one else. i was running my hed

we'll talk to one who is trying to be the next dotcom wonder kid. ca refu l, pringles are bursting with more flavor. [ crunches ] mmm. ♪ [ male announcer ] pringles... bursting with more flavor. [ crunch! ] all in one account. keep watch on the markets. or use our exclusive tools to help find ideas. it's powerful, easy-to-use technology for trading stocks, options, and futures. keep trading whether you're at home, in the office, or on the go. optionsxpress, the broker smart traders deserve. open an account today at optionsxpress.com. and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. >>> welcome back. it was supposed to be one of the hottest stock debuts ever and while facebook did not get the pop many w

and he remembers how crazy things got during the dotcom boom. people coming in with cash. >> yeah.not going to see your car for a month. i don't care. here's a deposit. he doesn't expect the new facebook millionaires to party like it's 1999, but california hopes they do. this week jerry brown updated the budget. the state now says facebook's ipo could add $14 billion in additional income this year. 20% of all income growth in california. taxes on that would be close to $1.5 billion. and over the next few years, total ipo-related taxes could reach $2.9 billion. >> we've had a structural deficit for a long time. let's pay down our debt. >> controller john says that's not something usually happens. google helped generate new spending instead of fixing the budget. there's currently a $16 billion deficit. and facebook cannot fill the entire hole. >> any progress is good progress. >> and any sale is a good sale. like the one mark putnam just made to a facebook employee. >> she brought us some facebook t-shirts. >> those could be valuable. he even sold a car to zuckerberg's sister, but he

does it represent the dotcom bubble again? i mean is that what is happening? i don't think so.hink facebook is going to be a no-brainer, and i hate using that term. we all know this is going to pop like crazy on the first day of trading. if you get in on the deal, try to get your hands on as many shares as possible. 10 shares, 15 shares, 50 shares, get some. once it starts trading in the after market, that's a very, very different story. whether or not this stock is worth buying in the after market depends entirely on price. and i think the valuation might end up being too much of a stretch. but we'll talk more than later this week. right now, though, we need to focus on what you would actually be buying, because you see, this market loves growth. and facebook has an incredible growth story. in the most recent quarter, its revenues were up 45% year-over-year. as of the end of march, the company has 901 million active users, a 33% increase from the year before. staggering growth. that's out of 2 billion total internet users around the world. while facebook's new user growth will

relative to its growth rate, but that's because the growth rate is slowing like the dell during the dotcom clasp during 2000 to 2003. as the competitors copied the company's business model and ate into its earnings power. in those case, the stock traded well below the one times growth floor. the p.e.g. kepted sink and sinking. it's what is known as a value trap. on the other hand, the best time to buy cyclical stocks, the smokestacks is when they look outrageously expensive because the earnings estimates are way too low and need to be raised to catch up with the reality. you need to know these things. they're not easy. try to make them as clear as possible. the bottom line, know what you own. know what others will pay for it. that's more important than what you own. that means you need to understand the risk reward, the potential downside and the potential upside before you purchase anything, like figuring out where the growth investors put in the ceiling and the value cohort creates the floor. "mad money" will be right back. ♪ will be sitting at the table carfirmation. only hertz gives yo

and without a game changing new money making idea, facebook is destined for the dotcom graveyard.el wolff is joining us, and john carney, senior editor of the cnbc.com, michael, how likely is it do you think facebook will go to to the gra? it won't go to the graveyard, but what we are looking at is a -- a real problematic issue, as exist stenchal issue in the middle of the business, which is that it's a business founded on advertising, but tiesing doesn't work that well in this medium, and what people are willing to pay for ads in this medium keeps going down and down and down. that is not a recipe for a big growth business. >> michael, is that your biggest concern about facebook, is really the burnout factor. people say they get on it, have reconnected with every exboyfriend or ex-girlfriend they possibly can -- >> no, that's not it at all. what i said is it's an advertising problem. i think people love facebook. i think probably many, many more people will continue to come to facebook. i think lots of people will continue to use foible that's great, but that's not how the compan

dotcom. why henry wouldn't touch facebook with a 10-foot poll. and then steve rat ner, he says investors shouldn't buy individual stocks ever. i'm sue herera with simon hobbs down at the nyse. and tyler mathisen is at a special mutual fund conference in washington. we'll hear from ty coming up. but first, breaking news on greece. the third greek leader this week to try to form a government says he's closing in on a deal. but this greek drama is far from finished. michelle caruso-cabrera just finished speaking exclusively with greece's new most popular leader. but he would not be included in this particular government. michelle. >> no. it is confusing. the man i spoke with this morning is alexis tsipras. we care about what he has to say because now according to dow jones, there are new polls today showing he is the front-runner if there are new elections in june. tsipras caused turmoil in the financial markets this week when he said in his opinion the greek bailout program is null and void. that led market participants to believe that greece could

as we continue on "power lunch," a new trend in dotcom shopping. women, click aside.100,000 and put it into one of the big dividend mutual funds or etfs, you've done pretty well. in the past six months you would have made $8,320. in two years that $100,000 investment has made you almost $13,000. back in a minute. back in a minu. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. >>> welcome back to "power lunch." let's get you up to date on the markets. the dow is holding steady off of its worst levels of the day, down about 22 points on the session. nasdaq has turned positive. we're up about 6.5 points, almost a quarter of a percent. the s&p a quarter of a percent in the red. and the yield on the 10-year now traded at 1.9 2%. lending credence to jeffrey's comments on cnbc the other day saying there is another wave of tr

and we all talk about the bad or the good old days depending on how you want to look at it with the dotcomshares that did take off on day one with the companies that didn't have much there. if this is a slow and steady climb up in the stock, that's probably a win for everyone. i don't know where it's written that every retail investor should get a pre-ipo share and be able to flip it in the first two hours of trading. this is actually the fear of retail investors, i think, is that they are going to flip it, they're not going to be long-term holders and everybody wants a book made up of t row price. wary of individuals. in a way, i don't think the spin is necessarily wrong. i think this is a win. >> do you think so, kayla? >> i do. remember the headline, facebook wants to be a blue chip. the big corner stone investors like to see something predictable like the deal we've seen today. if you ask some of our sources, they expected what we're seeing right now. the problem is you're seeing some of the follow on trades, zynga, gsv, the market clearly expected there to be a giant pop. that's why y