Transcripts For ALJAZAM Real Money With Ali Velshi 20131026

The show. Join our live conversation for the next half hour by using hashtag aj real money on twitt twitter. Today we received a worrying sign of how much you the consumeconsumehow much confide that you the consumer have in the economy. Its weighing down confidence, and when that happens it usually brings a drop in spending and causes a drag in the economy yet, that has not stopped you from shopping. Amazon, ford, reported an average profit gain of 9. 2 . Thats backed by a 6 up tick in revenues which means business has been good. Regardless of dipping sentiments since the summer. Consumers may be right most of the time, but in this case they appear to be doing Something Different than what theyre saying. The question is will this disconnect last especially as america heads into the holiday season. The one thing that boost Consumer Confidence is rising income. They show the pace of hirings that started to show, and income is the one thing that makes or breaks Consumer Confidence will remain stagnant. Lets take a look at the u. S. Job market of 2013 and how fast jobs were created or lost. It will have profound implications for spending and economic growth. Many forecasters say a lot depends on how businesses across america respond to what happens or doesnt happen in washington. Reporter snapshots of an economy struggling to get people back to work. When we get the employment numbers for october the picture could turn bleaker. Because of the Government Shutdown and all the furloughed workers the jobs report for october is going to look pretty dismal. The white house put a number on it tuesday. 120,000 fewer jobs than we otherwise would have had in the month of october. Even before the shutdown jobs growth started to slow. 2013 kicked off respectively with the economy adding around 200,000 jobs per month. The average dropped to 180,000 in the spring and kept falling through the amen to roughly 140,000. Its probably not surprising because the sequester is being rolled out. There are several trillions of dollars of cuts taking affect. There is reason to think that the slow down may continue through the Fourth Quarter and into the First Quarter of 2014. Reporter but some economists see the job growth picking up. At the end of october we see employment growth averaging 165 to 170,000 new jobs. If there is a budget agreement we could see acceleration and maybe 185200,000 jobs here. Reporter 200,000 is still little cause for celebration. Especially when you consider the pool of available workers had grown since the Great Recession. Some economists say at the current rate of job growth it would take ten years for the job market to recover. Businesses have little incentive to create jobs. And economists say washington needs to do its part. If Something Like tax reform comes down the line or other sorts of policies that are really stimulating growth. We can borrow at really low rates. We should be borrowing, we should be spending more money, filling in the potential gdp that were lacking, but thats simply not in the cards. I dont expect things to get better and they could get worse. Reporter al jazeera, new york. Today on twitter and facebook weve been asking you are you confident about earning a higher salary in the years to come and why . Peter said not at all. Im pushed harder to produce more and weve only got 2 raises for the last three years. And no, because the current u. S. Business model is to suppress wages via labor surplus and demand more labor activity. Leave us a comment. If unemployment remains high, businesses are under no pressure to raise wages because there are so many people out of work and applying for jobs. In the state of wage stagnation is on the way in the economy that depresses standing. So what is the outlook for wage growth . Lets go to the chairman of Public Policy department in l. A. He joins us from los angeles, michael, what is the outlook for wage growth particularly in the middle class . It looks very dire as the reports says. The wage versus been stagnant for 20 to 30 years. We did see some bump in the 1990s, but thats when we had a full employment economy. What will it take, a full employment economy. We lost 8 million jobs and gained 4 million of those and at the current pace of hiring it will be between 5 and 7 years before we get back to a full employment economy. We also heard in that set up that tax policies, tax cuts simulate growth. But what will the Government Spending to pick up the slack . If consumers arent spending then someone else has to spend. One of the ways that we know historically how that has worked is direct job creation by a third entity which would be government. There is high speed rail and so much Infrastructure Development investment we can make now that would have huge returns not only for now but for later. That seems to have the best bang for the buck for any dollar spent including tax breaks. How much job creation do we need to see to drive you have competition and wages . What is the figure, what is the number youre looking at . It varies by industrial sector, but all sectors were hit by the Great Recession, and we need to produce 4 million jobs. And there are some industrial sectors that have done pretty well since we moved past the Great Recession, industry, high tech has been a bright spot in the economy where you might see wage increases, but it would take a lot of job creation across the spector in order for us to see wage constraint to tart to drivstart to drive wages. Might workers see a wage increase at the end of the year. There is wage growth in construction. The Housing Market has picked up. Construction jobs are picking up again. There is some evidence of some movement on manufacturing. There are no manufacturing jobs that are the pathway to the middle class jobs, those have been disappearing over the last 20, 30 years, but there has been some resurgence, and we could shift resources to these areas, generate economic activity, and hope that job growth will follow. How much is washington contributing to this drag. How much does this hurt job growth . Reporter i think the dropping says a lot. When government is not able to function like it has in the last month and a half people have dire thoughts about economic prospects. If government can get together and do things that are smart like pass a comprehensive jobs bill i think we could see some of the jobs numbers move as well as wage increases over the future. Michael, thank you for being part of the program. We appreciate it. We want to give you an update on a story weve been following for you on real money. Jp morgan chase has agreed to pay 5. 1 billion in penalties for bad home loans before the housing bubble burst. Its reported to be a bigger agreement that between the government and the bank ceo jamie dimon. It could end up costing jp morgan 13 billion. Detroit is for sale to the highest bidder, well sort of. The bankrupt city is auctions off 19,000 foreclosed and abandoned properties. One mans commitment to make sure that local residents have a shot at buying the properties before big account investors sweep in. Every morning from 6 to 10am Al Jazeera America brings you more us and global news than any other American News channel. Find out what happened and what to expect. Start every morning, every day, 6am to 10 eastern with Al Jazeera America. All next week america tonight investigates the campus rape crisis. Serial rape is the norm on college campuses. I know that when i did report, i was blamed. Then on friday, november 1st at nine eastern, we open up the conversation in a live townhall event. Sex crimes on campus, a special week of coverage and live townhall on america tonight nine eastern. Only on Al Jazeera America. One of the largest land sales in the world are wrapping up in michigan. Auctioning off 19,000 foreclosed properties online. Most delinquent in paying taxes for three years. Blighted structures, vacant lats, industrial buildings, homes that are practically movein ready. The minimum bid is 500. The goal rejuvenate detroit and generate a little money for the struggling city. Around 9,000 properties already have been sold, almost 700 properties have not gotten any bids and will go back to the city. Our cameras followed one of the detroit residents who is trying to help. Its a busy time for herb who heads up his own Real Estate Investment firm in detroit. Detroitborn and raised he wants others to get involved and buy back the real estate. Its 7300 to current high bid. What do you want to do . In the thick of a class to teach and help other detroiters to buy foreclosed homes. All together he and his class bought over 200 homes at an 80 discount. This is crazy. The houses are going for twice as much as they went for last year. But its not just about profit. He normally deals in commercial real estate. He wants to help people stay in their homes. Somebody staying inside the house. They always get in. Reporter as he drives through detroit neighborhoods checking out foreclosure listings, he checks to make sure that they are not occupied. There is somebody in the driveway. Were going to take and go up if they would give us a little discussion, hopefully no guns come out. If they are, he offers people the chance to stay in their homes renting from him with an option to buy. Are you aware of the fact that the home is being auctioned . Would you be interested in staying here . Herb is chairman of the real estate firm. He joins us live from detroit. Herb, first of all, why is it so important for detroiters to buy in a city as opposed to anybody else . This is because we live here, david. Its important that detroiters get their equity back. As you know weve had tough times here in the city, and it wasnt our fault that the Great Recession occurred. But i am trying to encourage detroiters not to sleep through the greatest recession they will ever see. How easy and to participate and buy their property. How easy is it for someone to buy a foreclosed property or an abandoned lot there . Well, you know, there was 19,000 properties auctioned off, and 12,000 properties sold. Its just as easy as clicking on the computer. But the most important thing before you put your hard earned money in is to make sure that you underwrite the property and you buy quality property. Otherwise you could end up losing big time. Its important also to have a guide. There are a lot of gems in our community. Downtown is a nobrainer. A guy named dan gibbard has bought up 40 buildings downtown. There are gems in the community. The important thing is to do your home work before you buy. Look at what youre thinking about buying. Has it made the Real Estate Market for competitive . Yes, it has made the Real Estate Market more competitive. As a matter of fact what is happening now is the prices have essentially doubled. Last year you could buy properties 0. 10 on the dollar. There are other people entering the market, but were trying to encourage detroiters not to sleep through the Great Recession. This sounds like a great Investment Opportunity in southeast michigan. What do you say to all those folks outside of detroit, outside of southeast michigan who have written off the motor city . Well, you know, i will encourage to you take another look at the motor city. Cap rates run 6 to 9 in most major cities. In detroit they start at 9 , and on turn around properties you could get as high as 15 to 20 . The most important thing is to take someone with you who is an expert. Join up with someone who is in the city because it is a complicated place just to dump your money without visiting the city or without doing your proper home work. And herb i understand that the proper home work is something that you did as far as the location where were filming you from. This is an office that is a foreclosed opportunity . Absolutely. This is four stories and the busiest location in the city of detroit. Unfortunately, the property went to the auction, and we were able to buy the property back for less than 1 a foot. We have now moved we have to end it here we have now moved our office here. Its an inspiring story. We wish you the best of luck. For all of us who wish the best for detroit. Thank you for all that youre trying to do to help. Coming up, the underdog, why in business and life should not be under estimated. And if you wanted to watch hbo without paying for all those on august 20th, Al Jazeera America int having to pay for lots of channels you may not want, but now comcast is offering a basic service plan that is 50 a month. Good news for those who want access to program but dont want to pay for more expensive passage. Lets gletslets go to leslie s sounds like a la carte service. How big of a deal is this for consumers who say i want this, i just have to pay just for this. It is a huge deal. So many people dont care about the channels they get on cable. They just want to watch hbo. They want to be able to pay for hbo like they do for netflix. Isnt comcast cutting their own throat . If they can charge a lot of money for channels people dont want, but then all of a sudden pay for this channel, arent they hurding their business model. I dont think its a bad idea for them. Everyone wins. Its 20 cheaper than the regular cable internet deal but i think people would be inclined to pay for it because its hbo. You have this trial right now, you pay between 40 to 50, it will go up gradually. Right now depending on the market youre in its 40 or 50 a month for the First Six Months to a year, and then after that it goes up to 60 or 70. So its a good deal. Espn, showtime, discovery, are they looking at this and saying, aha, we can move forward as well. We have popular programs. Why should we be stuck with the channels people dont want . The Cable Companies really dont have an incentive to release these channels because say it was just espn. It would be maybe 10 a month. Whereas if you got espn along with all the other channels, its 70 a month. There are really no incentive there . Isnt there an incentive for espn who dont want fox sports to compete with them. Thats where it gets more complicated. Because you get tied up into who owns what. Its not just espn. Its the company that owns espn. This a la carte model, john mccain offered a bill that would allow people to buy their cable a la carte and the industry hates it. Time warn cable, making tons of money, and there is no monetary incentive to let people choose. Leslie horn. Shes the staff writer, i know a lot of people will be signing up for this. Thank you for discussing this. We appreciate it. Maam cool gladwell is out with a new book, in david and goliath. He takes a look at the little guy facing big challenges should not be under estimated. Ali velshi asked gladwell how playing by unconvention al rules can lead to success. Thank you for joining us. Congratulations on the new book david and goliath. You turn the story as we all thought about on its head. Even the most critical thinkers among us would not have thought of another explanation than it was improbable that david would have beaten goliath. You take an entirely different look at this. You say not only was it probably that david would have felled goliath but statistically likely. Yes, if you go back and read about ancient warfare, you discover that the sling with which david was armed, it was a devastating weapon. Hes taking a rock, and he is rotating it six or seven revolutions per second in a leather pouch, releasing it flying at 35meters per second. The stopping power of this rock is the equivalent of a bullet fired from a. 45caliber handgun. Now he has the upper hand. He has superior technology. We have shepherd boy who has changed the rules and not told anybody. Hes armed with superior technology, and hes up against a lumbering giant with severe limits in vision. Why is he the underdog. It changes all of history if you accept the fact that he should have won. Not all of history, but its just that we have exaggerated the advantages of giants, and under estimated the advantages of small, nimble, audacious people with cuttingedge technology. Anyone living in the 21st century this reinterpretation should not come as a surprise. You have actually given thought to how this applies to other things. We have some research in the book that suggests that a lot of times when an inferior army has taken overtaken up against a superior army they have won. Yes, if you look historically at combat system which is fascinating, the wars between countries that are ten x difference in size. One country is ten times greater than another, you look at the smaller country that has chose ton fight unconventionally. America is ten times the size of canada. And america attacks canada, and canada decides to fight guerrilla warfare, you should put your money on canada. Not saying that because im canadian. Youre canadian. Were not saying that this will happen. The fact that america is larger and wealthier and has better weapons, it is an advantage but not nearly as much of an advantage as we think. The fact thatif you think about it, you are canada, and youre invaded by the united states. What weapons would you have . You would have the weapon of anger. You would be willing to fight for your own country in a way that an invader may not be committed to battle. We saw that in vietnam. They were willing to fight for generations. How does the average reader read this book and apply it to them . Im ethnic and poor, im disadvantaged. Can i win . Yes, the original lesson of the david and goliath story is that david refused to be passive in the face of the circumstances he was faced with. He had no businesshe wasnt a warrior. He didnt have armor. He had no ability with a sword. But instead of accepting his defeat what he said was, o im going to change the rules in such a way that i have the advantage. You can see the rest of alis interview with Malcolm Gladwell at 10 3 10 30 eastern time and 0 pacific. Lets stay on the topic of the underdog an facing the gian. The three giants, ford, gm and chrysler. Others have tried to make a profit but they have always failed until now. We learned recently that teslaen an electric car make Something Different<\/a> than what theyre saying. The question is will this disconnect last especially as america heads into the holiday season. The one thing that boost Consumer Confidence<\/a> is rising income. They show the pace of hirings that started to show, and income is the one thing that makes or breaks Consumer Confidence<\/a> will remain stagnant. Lets take a look at the u. S. Job market of 2013 and how fast jobs were created or lost. It will have profound implications for spending and economic growth. Many forecasters say a lot depends on how businesses across america respond to what happens or doesnt happen in washington. Reporter snapshots of an economy struggling to get people back to work. When we get the employment numbers for october the picture could turn bleaker. Because of the Government Shutdown<\/a> and all the furloughed workers the jobs report for october is going to look pretty dismal. The white house put a number on it tuesday. 120,000 fewer jobs than we otherwise would have had in the month of october. Even before the shutdown jobs growth started to slow. 2013 kicked off respectively with the economy adding around 200,000 jobs per month. The average dropped to 180,000 in the spring and kept falling through the amen to roughly 140,000. Its probably not surprising because the sequester is being rolled out. There are several trillions of dollars of cuts taking affect. There is reason to think that the slow down may continue through the Fourth Quarter<\/a> and into the First Quarter<\/a> of 2014. Reporter but some economists see the job growth picking up. At the end of october we see employment growth averaging 165 to 170,000 new jobs. If there is a budget agreement we could see acceleration and maybe 185200,000 jobs here. Reporter 200,000 is still little cause for celebration. Especially when you consider the pool of available workers had grown since the Great Recession<\/a>. Some economists say at the current rate of job growth it would take ten years for the job market to recover. Businesses have little incentive to create jobs. And economists say washington needs to do its part. If Something Like<\/a> tax reform comes down the line or other sorts of policies that are really stimulating growth. We can borrow at really low rates. We should be borrowing, we should be spending more money, filling in the potential gdp that were lacking, but thats simply not in the cards. I dont expect things to get better and they could get worse. Reporter al jazeera, new york. Today on twitter and facebook weve been asking you are you confident about earning a higher salary in the years to come and why . Peter said not at all. Im pushed harder to produce more and weve only got 2 raises for the last three years. And no, because the current u. S. Business model is to suppress wages via labor surplus and demand more labor activity. Leave us a comment. If unemployment remains high, businesses are under no pressure to raise wages because there are so many people out of work and applying for jobs. In the state of wage stagnation is on the way in the economy that depresses standing. So what is the outlook for wage growth . Lets go to the chairman of Public Policy<\/a> department in l. A. He joins us from los angeles, michael, what is the outlook for wage growth particularly in the middle class . It looks very dire as the reports says. The wage versus been stagnant for 20 to 30 years. We did see some bump in the 1990s, but thats when we had a full employment economy. What will it take, a full employment economy. We lost 8 million jobs and gained 4 million of those and at the current pace of hiring it will be between 5 and 7 years before we get back to a full employment economy. We also heard in that set up that tax policies, tax cuts simulate growth. But what will the Government Spending<\/a> to pick up the slack . If consumers arent spending then someone else has to spend. One of the ways that we know historically how that has worked is direct job creation by a third entity which would be government. There is high speed rail and so much Infrastructure Development<\/a> investment we can make now that would have huge returns not only for now but for later. That seems to have the best bang for the buck for any dollar spent including tax breaks. How much job creation do we need to see to drive you have competition and wages . What is the figure, what is the number youre looking at . It varies by industrial sector, but all sectors were hit by the Great Recession<\/a>, and we need to produce 4 million jobs. And there are some industrial sectors that have done pretty well since we moved past the Great Recession<\/a>, industry, high tech has been a bright spot in the economy where you might see wage increases, but it would take a lot of job creation across the spector in order for us to see wage constraint to tart to drivstart to drive wages. Might workers see a wage increase at the end of the year. There is wage growth in construction. The Housing Market<\/a> has picked up. Construction jobs are picking up again. There is some evidence of some movement on manufacturing. There are no manufacturing jobs that are the pathway to the middle class jobs, those have been disappearing over the last 20, 30 years, but there has been some resurgence, and we could shift resources to these areas, generate economic activity, and hope that job growth will follow. How much is washington contributing to this drag. How much does this hurt job growth . Reporter i think the dropping says a lot. When government is not able to function like it has in the last month and a half people have dire thoughts about economic prospects. If government can get together and do things that are smart like pass a comprehensive jobs bill i think we could see some of the jobs numbers move as well as wage increases over the future. Michael, thank you for being part of the program. We appreciate it. We want to give you an update on a story weve been following for you on real money. Jp morgan chase has agreed to pay 5. 1 billion in penalties for bad home loans before the housing bubble burst. Its reported to be a bigger agreement that between the government and the bank ceo jamie dimon. It could end up costing jp morgan 13 billion. Detroit is for sale to the highest bidder, well sort of. The bankrupt city is auctions off 19,000 foreclosed and abandoned properties. One mans commitment to make sure that local residents have a shot at buying the properties before big account investors sweep in. Every morning from 6 to 10am Al Jazeera America<\/a> brings you more us and global news than any other American News<\/a> channel. Find out what happened and what to expect. Start every morning, every day, 6am to 10 eastern with Al Jazeera America<\/a>. All next week america tonight investigates the campus rape crisis. Serial rape is the norm on college campuses. I know that when i did report, i was blamed. Then on friday, november 1st at nine eastern, we open up the conversation in a live townhall event. Sex crimes on campus, a special week of coverage and live townhall on america tonight nine eastern. Only on Al Jazeera America<\/a>. One of the largest land sales in the world are wrapping up in michigan. Auctioning off 19,000 foreclosed properties online. Most delinquent in paying taxes for three years. Blighted structures, vacant lats, industrial buildings, homes that are practically movein ready. The minimum bid is 500. The goal rejuvenate detroit and generate a little money for the struggling city. Around 9,000 properties already have been sold, almost 700 properties have not gotten any bids and will go back to the city. Our cameras followed one of the detroit residents who is trying to help. Its a busy time for herb who heads up his own Real Estate Investment<\/a> firm in detroit. Detroitborn and raised he wants others to get involved and buy back the real estate. Its 7300 to current high bid. What do you want to do . In the thick of a class to teach and help other detroiters to buy foreclosed homes. All together he and his class bought over 200 homes at an 80 discount. This is crazy. The houses are going for twice as much as they went for last year. But its not just about profit. He normally deals in commercial real estate. He wants to help people stay in their homes. Somebody staying inside the house. They always get in. Reporter as he drives through detroit neighborhoods checking out foreclosure listings, he checks to make sure that they are not occupied. There is somebody in the driveway. Were going to take and go up if they would give us a little discussion, hopefully no guns come out. If they are, he offers people the chance to stay in their homes renting from him with an option to buy. Are you aware of the fact that the home is being auctioned . Would you be interested in staying here . Herb is chairman of the real estate firm. He joins us live from detroit. Herb, first of all, why is it so important for detroiters to buy in a city as opposed to anybody else . This is because we live here, david. Its important that detroiters get their equity back. As you know weve had tough times here in the city, and it wasnt our fault that the Great Recession<\/a> occurred. But i am trying to encourage detroiters not to sleep through the greatest recession they will ever see. How easy and to participate and buy their property. How easy is it for someone to buy a foreclosed property or an abandoned lot there . Well, you know, there was 19,000 properties auctioned off, and 12,000 properties sold. Its just as easy as clicking on the computer. But the most important thing before you put your hard earned money in is to make sure that you underwrite the property and you buy quality property. Otherwise you could end up losing big time. Its important also to have a guide. There are a lot of gems in our community. Downtown is a nobrainer. A guy named dan gibbard has bought up 40 buildings downtown. There are gems in the community. The important thing is to do your home work before you buy. Look at what youre thinking about buying. Has it made the Real Estate Market<\/a> for competitive . Yes, it has made the Real Estate Market<\/a> more competitive. As a matter of fact what is happening now is the prices have essentially doubled. Last year you could buy properties 0. 10 on the dollar. There are other people entering the market, but were trying to encourage detroiters not to sleep through the Great Recession<\/a>. This sounds like a great Investment Opportunity<\/a> in southeast michigan. What do you say to all those folks outside of detroit, outside of southeast michigan who have written off the motor city . Well, you know, i will encourage to you take another look at the motor city. Cap rates run 6 to 9 in most major cities. In detroit they start at 9 , and on turn around properties you could get as high as 15 to 20 . The most important thing is to take someone with you who is an expert. Join up with someone who is in the city because it is a complicated place just to dump your money without visiting the city or without doing your proper home work. And herb i understand that the proper home work is something that you did as far as the location where were filming you from. This is an office that is a foreclosed opportunity . Absolutely. This is four stories and the busiest location in the city of detroit. Unfortunately, the property went to the auction, and we were able to buy the property back for less than 1 a foot. We have now moved we have to end it here we have now moved our office here. Its an inspiring story. We wish you the best of luck. For all of us who wish the best for detroit. Thank you for all that youre trying to do to help. Coming up, the underdog, why in business and life should not be under estimated. And if you wanted to watch hbo without paying for all those on august 20th, Al Jazeera America<\/a> int having to pay for lots of channels you may not want, but now comcast is offering a basic service plan that is 50 a month. Good news for those who want access to program but dont want to pay for more expensive passage. Lets gletslets go to leslie s sounds like a la carte service. How big of a deal is this for consumers who say i want this, i just have to pay just for this. It is a huge deal. So many people dont care about the channels they get on cable. They just want to watch hbo. They want to be able to pay for hbo like they do for netflix. Isnt comcast cutting their own throat . If they can charge a lot of money for channels people dont want, but then all of a sudden pay for this channel, arent they hurding their business model. I dont think its a bad idea for them. Everyone wins. Its 20 cheaper than the regular cable internet deal but i think people would be inclined to pay for it because its hbo. You have this trial right now, you pay between 40 to 50, it will go up gradually. Right now depending on the market youre in its 40 or 50 a month for the First Six Months<\/a> to a year, and then after that it goes up to 60 or 70. So its a good deal. Espn, showtime, discovery, are they looking at this and saying, aha, we can move forward as well. We have popular programs. Why should we be stuck with the channels people dont want . The Cable Companies<\/a> really dont have an incentive to release these channels because say it was just espn. It would be maybe 10 a month. Whereas if you got espn along with all the other channels, its 70 a month. There are really no incentive there . Isnt there an incentive for espn who dont want fox sports to compete with them. Thats where it gets more complicated. Because you get tied up into who owns what. Its not just espn. Its the company that owns espn. This a la carte model, john mccain offered a bill that would allow people to buy their cable a la carte and the industry hates it. Time warn cable, making tons of money, and there is no monetary incentive to let people choose. Leslie horn. Shes the staff writer, i know a lot of people will be signing up for this. Thank you for discussing this. We appreciate it. Maam cool gladwell is out with a new book, in david and goliath. He takes a look at the little guy facing big challenges should not be under estimated. Ali velshi asked gladwell how playing by unconvention al rules can lead to success. Thank you for joining us. Congratulations on the new book david and goliath. You turn the story as we all thought about on its head. Even the most critical thinkers among us would not have thought of another explanation than it was improbable that david would have beaten goliath. You take an entirely different look at this. You say not only was it probably that david would have felled goliath but statistically likely. Yes, if you go back and read about ancient warfare, you discover that the sling with which david was armed, it was a devastating weapon. Hes taking a rock, and he is rotating it six or seven revolutions per second in a leather pouch, releasing it flying at 35meters per second. The stopping power of this rock is the equivalent of a bullet fired from a. 45caliber handgun. Now he has the upper hand. He has superior technology. We have shepherd boy who has changed the rules and not told anybody. Hes armed with superior technology, and hes up against a lumbering giant with severe limits in vision. Why is he the underdog. It changes all of history if you accept the fact that he should have won. Not all of history, but its just that we have exaggerated the advantages of giants, and under estimated the advantages of small, nimble, audacious people with cuttingedge technology. Anyone living in the 21st century this reinterpretation should not come as a surprise. You have actually given thought to how this applies to other things. We have some research in the book that suggests that a lot of times when an inferior army has taken overtaken up against a superior army they have won. Yes, if you look historically at combat system which is fascinating, the wars between countries that are ten x difference in size. One country is ten times greater than another, you look at the smaller country that has chose ton fight unconventionally. America is ten times the size of canada. And america attacks canada, and canada decides to fight guerrilla warfare, you should put your money on canada. Not saying that because im canadian. Youre canadian. Were not saying that this will happen. The fact that america is larger and wealthier and has better weapons, it is an advantage but not nearly as much of an advantage as we think. The fact thatif you think about it, you are canada, and youre invaded by the united states. What weapons would you have . You would have the weapon of anger. You would be willing to fight for your own country in a way that an invader may not be committed to battle. We saw that in vietnam. They were willing to fight for generations. How does the average reader read this book and apply it to them . Im ethnic and poor, im disadvantaged. Can i win . Yes, the original lesson of the david and goliath story is that david refused to be passive in the face of the circumstances he was faced with. He had no businesshe wasnt a warrior. He didnt have armor. He had no ability with a sword. But instead of accepting his defeat what he said was, o im going to change the rules in such a way that i have the advantage. You can see the rest of alis interview with Malcolm Gladwell<\/a> at 10 3 10 30 eastern time and 0 pacific. Lets stay on the topic of the underdog an facing the gian. The three giants, ford, gm and chrysler. Others have tried to make a profit but they have always failed until now. We learned recently that teslaen an electric car make Center California<\/a> is making money and getting stronger. The Underdog Company<\/a> turned profitable this year and is expected to report its third quarterly profit next month. Some analysts say tesla stock is up 400 is overvalued. But hurling a stone with an electric plug in car called the model f. Consumer reports cal called the model f as the best automobile they have ever tested. Ingenuity, hard work can be just as excellent as sheer brawn and power, something that we can take heart as we face our own goliaths every day. Thats our show today. Well tell but money that nobody has claimed and one man whose doing his part to hunt down the rightful owners. Wrmg thithis is al jazeera. Is hello and welcome from me, david foster. These are the stories were covering in detail in the next 60 minutes. Live in teheran. Driving changes stall in saudi arabia as the government warns women against protesting in their cars. Let down by the world,","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia803007.us.archive.org\/24\/items\/ALJAZAM_20131026_093000_Real_Money_With_Ali_Velshi\/ALJAZAM_20131026_093000_Real_Money_With_Ali_Velshi.thumbs\/ALJAZAM_20131026_093000_Real_Money_With_Ali_Velshi_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240620T12:35:10+00:00"}