Transcripts For ALJAZAM Real Money With Ali Velshi 20140220

ALJAZAM Real Money With Ali Velshi February 20, 2014

If you like facebook, facebook. Com aj real money. President Obama Meeting tonight with his counterparts with canada and mexico. On the agenda u. S. Immigration reform. Americas foreign borne population reached 40 million in 2011 or 13 of the total population. 11 of that 40 million are believed to be undocumented. More than half that number are thought to come to america o frm or through mexico. The debate is to give them formal status or to ship them back home. Unfortunately, our focus, our obsession on mexico and the border detracts from a deeper discussion about the economics of immigration. Putting aside much of americas agriculture industry relies on Migrant Workers without whom man argue the price of your food would go up. Through high tech relies on immigrants of a different sort. Highly skilled immigrants and foreign workers. 819,000 foreign students studied in the united states. Thats 3. 9 of the total student population. Burnt immigration rules put restrictions on those who try to stay on and work in this country. Many high tech firms try to get around that by applying for an annual quote of h 1 or temporary work visas. Quitics say companies abuse those visas by hiring students from like india instead of hiring americans to do the same jobs. Therjobs. The legislation if passed into law would increase employment by 3. 5 over the next two decades and would grow the economy by 5. 4 percent more than it otherwise would have grown over the same 20year period. An estimated 9. 6 million new workers joining the legal workforce would mean more tax revenue for the federal government and for state governments. That plus shifting spending away to other priorities other than Border Control would lower budget deficits by 900 billion. Its not clear that the same legislation will pass in the house. We asked Mike Viqueira and it was unclear if it will at all. But estimates are estimates. Chew on this last number. 20 billion a year. Thats the estimated amount of payroll taxes lost each year from undocumented workers who work over the books in this country. For more on Immigration Reform and where its heading or not heading, we go to the white house with Mike Viqueira. We will will get Immigration Reform any time soon . Reporter its unlikely it will happen. Speaker of the hour john boehner through water on it, and it took the space of one week. This isnt about sweet reason or lodge. Its about politics at this point. We are in an election year. The thing about that is most people are not aware of that. This is a Midterm Election year. The president , a president ial candidate is not on the ticket. Who turns out in those elections . 40 turn out. Who are they . The base, the hardest of the hardcore of both parties. Who are the hardest of the hardcore in the Republican Party . Those who oppose what they term as amnesty. What many people you refer to, the shorthand, comprehensive immigration we form that includes a path to citizenship as the bill that passed the senate with considerable republican help or the pass to leaguety which was on the table in the house of representatives for a brief glimmer of time. John boehner said at his annual retreat of House Republicans just three weeks ago that they were going to take a piecemeal approach. They were going to bring this to the House Republican conference and the house as a whole, a week later a reversal, of course, the reality is that theyre not going to put it on the floor simply because its bad politics at this point. The base of the party is dead set against it. This is an issue that cleaves the Republican Party in half. When george bush downed this building behind me six or seven years ago butt it before the congress it went nowhere for the exact same reasons. Meanwhile the republicans think theyre going to be losing ground in the polls. Texas and arizona burgeoning hispanic oppositealation. New citizens from mexico, Central America are going to be voting democratic is just pure raw politics. For all those numbers i present to my viewers youre giving me the reality on the ground in washington. Mike viqueira in washington. Since 2005 the percentage ever start ups founded by immigrants in Silicon Valley has dropped from 52 to 44 . Were losing out on the benefits that foreign students can bring our economy by sending them home too soon. A fellow at Stanford Law School and the author of the immigrant exodus, an entrepreneur who argues were bleeding competitiveness as a result of u. S. Immigration policy. He joins us from stanford, california. You heard the statistics that i cited. You know them off the back of your hand, and you heard what Mike Viqueira had to say for the whole thing. Had a is your take . Look at the announcement about facebook buying whats app for 19 billion. Guess where the development was done . In russia, not the u. S. You have two kids developing it abroad. What has changed over the last three or four years really is that software can be developed anywhere right now. What used to be necessary towhen it was necessary to have teams together, everyone wanted to come over here, now they can be everywhere. Our politicians live in the 1960s. They think that Everyone Wants to come over here and they can close the doors as much as they want to. The problem is the more they close the doors, the more were going to have innovation happening abroad. So these 19 developers in moscow are now going to be very rich, and theyre going to be starting other companies, and it will be over there. Thats the problem with this delay of our politicians are causing over here. Were losing the ability to have innovation happen in america, and its happening in other countries. What about the argument that some make that this visa issue for skilled workers, particularly Software Engineers as you say, coders, is a masking a different issue, and that is wee like to get these people in here from india, where you give them an h 1 visa, which does not allow them to get a job somewhere else, and it keeps wages down versus hiring the equally trained american engineers. There is abuse of the system without doubt. Every Government Program has abuse. We dont shut the systems down because some crooks abuse the system. Thats a tiny percentage of the immigrant population that is taken advantage of. Now take for example the developers in moscow, facebook paid 19 billion. Do you think they would care paying someone 10,000 a year less in salary . They dont care about money. What facebook, instagram, google, what all of these Companies Look for is top talent. They want the best of the best from wherever they can get it. By closing the doors were locking out great talent. Were hurting ourselves unnecessarily because there is some small abuse in the country. Its sort ofyou live in california, so you see both sides of the issue. You see the Migrant Workers and the issue of the border and border security. It seems like its two separate issues. At the end of the republican primaries a couple of years ago you had all the candidates saying staple a green card to every immigrant we educate in america so they dont go home. Yes, the democrats are holding the skilled immigrants hostage. Theyre worried, a start up visa, nobrainer. What theyre doing is making it all or nothing. That they have to have assistship. They havcitizenship, they have e all or nothing. Lets do a start up visa. Lets legalize the dreamers, the children of these immigrants, readily agree to those. But democrats are saying its all or nothing. And they i hold equally responsible for the mess that were in. Both sides are equally guilty. Lets hope both sides get to sorting it out. Vivik, a fellow at Stanford Law School. All right, the number of americans filing Mortgage Application which is considered a leading indicators for home sells fell since 2011. Thats according to the mortgage bangers association which said that refinancing applications fell 2. 7 , which stands for reason. The average Interest Rates rose from 4. 45 to 4. 5, why would you refinance if rates are going up. Much more on the recovery numbers, and florida, eight metro areas across the Sunshine State have some of the highest foreclosure rates in the country. Well have more on that as we continue keep it here. Clouding the outlook for the u. S. Housing market Housing Starts fell 16 in january compared to december. Housing starts had been picking up over the last year but still fell 2 in january chaired to the same time last year. Now there are dramatic differences when you break this down by region. Month over month the starts rate drop at a stunning 68 in the midwest. Thats a record low. Activity fell 17 in the west. 13 in the south. In the northeast it rose 62 . Economists have warned the regional data tends to be more volumvolatile, and it was mostly driven by apartment construction rather than Single Family homes home Builder Sentiment plugged this month. Citing usually weather conditions as one of the factors. Even sow Home Builders believe home sale conditions are poor rather than good which is what weve been seeing for the last several months. Nearly every recent economic report has indicated some slowdown, which some but not say is extreme weather. 62,000 americans said they didnt make it to work because of the weather. December was worse. But beth an, the chief u. S. Economist at Standard Poors believe the risk facing the economy has decreased over the last couple of months, and she joins us now. Thank you for being with us. Great to be here. First of all this weather thing is just not clear. There are some indicators that weather has caused some problems, and yet we saw construction jobs growing. We see Housing Starts didnt grow. Is weather hurting this with economy or not . When you look at the window there is snow everywhere, its across the u. S. We have the coldest winter in 35 years. And when that happens people dont go to work. People cant go to school. Trying to dig a hole to build a foundation is going to be difficult. I think its a big factor in whats happening right now. When you see these reports on housing, the home Builder Sentiment seems to suggest that its something more than weather. People are turning a little bit. How much of a slow down in all these reports do you attribute to things other than weather. I wasnt surprised about the Housing Starts data because of the weather. The building sentiment was a concern. We have higher Interest Rates coming down the road, and thats going to push back some potential buyers. From what i understand the Builder Sentiment a lot of that was driven by supply, not demand. Theyre seeing a lot of labor shortages and shortages of ready land or places to whether on. Thats where the problem land. Thats an interesting point you make. Even in some places where we have seen sales slow down, a number of people have gone out of their way to say that sales have slowed down because they havent had enough inventory to sale. Interest rates have been knowledging up for a 30 year fix mortgage. Still in the low 4s. What likely is that going to have on home buyers . When you put it into perspective, 4. 5 for the 30year mortgage or around that . Of course everyone is disappointed that they lost the chance of having a home at what was a record low. But historically the average is around 7 for a mortgage rate. Again i think people if we see the jobs market continue to turn around, which i expect, i think people will be able to fork out the cash and by that home. Youre expecting Stronger Economic growth in 2014 than you were, and you lowered the chance of a recession to 10 to 15 chance of recession. Is that serious . 10 to 15 chance of a recession . That is what im expecting. Keep in mind that because of thei do see the economy turning around, particularly one of the reasons why i brought down the risk of recession from 15 to 20 from the 1 to 15 because were seeing government gridlock. There is no risk of another shutdown of the government, nor is there risk of another debt ceiling debacle or crisis in 2014. It has been pushed into next year. It gives the economy, businesses a road map to be able to drive on. It doesnt fix the income inequality, but youre thinking that were going to do better in 2014 than some thought we had. Well take the good news where we can get it. Beth a ann, chief economist at standard and patios. The 40th, the u. S. Is recovering in leaps and bounds from the housing crisis, but the state struggling the most to recover is florida. There are two florida markets. The booming markets along coasts and the rest of the state. Middle class families who live and work in florida, many of them working in the housing industry, realtors, builders, landscapers, they make up part of the 300,000 homeowners mired in a home process in florida. Home auction surged to a high, florida is start to go recover, is it enough, though . Theyre saying right now for being late for the last 13 months not paying my mortgage. Linda powell has june been served foreclosure papers. She has tried to get a better raid on her adjustable mortgage but it just didnt work. Honestly i think im by myself sometimes, and i think a lot of people are doing that. Maybe if i can hang on a little longer, something will come up, ill get another job. But her journey in foreclosure is just beginning. On average it takes two and a half years for a foreclosure to finalize and often longer. Florida is third longest in the nation behind new york and new jersey. A main reason it takes so long, florida is a judicial state meaning every foreclosure has to be heard in court. But since the housing bust the courts have been overwhelmed with cases. There might be 50 lawyers sitting there from 8 30 to noon. You probably get a minute, minute and a half before a judge. Theyre called cattle call hearings. Theyre calling in retired judges to hear some of these cases now. I mean, criminal judges. 300,000 homes stuck in some form of foreclosure, homes and family in limbo. The state of foreclosure in the state of australia is exactly where the country was three to four years ago when we were still in the midst of this. Florida is still struggling. Kathleen was behind a bill that went into effect in july that has helped to streamline the foreclosure process. What we have send to the lenders was dont file the foreclosure unless you have all the ducks in the row. The fact that both sides banks and borrowers have been stalling in court. Lenders are not in the business ever being property owners. There was no market for them to sell the property, i think the longer they kept it off their books might have been better for them. But floridas economy is seeing the first glimmer of recovery. The Unemployment Rate is the lowest in eight years and home prices are starting to appreciate. Its one reason why in january over 12,000 homes were moved to the Auction Block. The most homes to hit the market in 39 months. Its a very good time for banks to unload these properties and get them sold, particularly at the Auction Block where the winning bidders are required to pay with cash. But the it could mixed results for floridas Housing Market. Thats a lot of problems and that is going to continue to be a drag on home prices and home markets as they continue to be sold. It will still take years before those hundreds of thousands of homes make it through the court system. Adding to floridas delicate Housing Market is a looming problem. 30 of homeowners are underwater. They owe more on the home than its worth. Thats your number one incentive not to pay your loan. And folks are becoming fatigued and wondering if theyll ever get out from underwater. Those underwater borrowers could become foreclosures in greater numbers. Well, its worth noting in between those pockets of booming vacation markets most of florida is struggling. It has the largest foreclosure rate in the nation. Of the top ten metro areas in america, eight of those cities are in florida. If youre among the 50 of americans using natural gas to heat your home your monthly bill is about to go up. More cold weather and supply concerns hitting levels not seen in more than five years. The National Weather forecast another round of freezing temperatures for the rockies and midwest. Snow in the Pacific Northwest and cooler temperatures in the south. Natural gas prices have risen 46 since the beginning of this year. Coming up next, our favorite toyshop owner checks out the toys of tomorrow. When i get here i want to buy everything that i see. And i have to pull back a little bit and take stock. That story and more as real money continues. Keep it right here. The number of lawyers is plummeting, and youre asking why. Given the polls only 19 of Americans Trust lawyers. Some might think this revelation is not that bad but it has significant consequences. I would suspect a firms ability to stay in business but it has issues for affordable legal forces. And the financial implications for those who graduate with hundreds of thousands of dollars in debt and no way to pay it off. That is the stream right after real money. Formal Business Owners getting ahead of the competition and major retailers can be a daunting challenge. Coulder consumers can make all the difference. Here to attend the toy fair. Great to see you. We talked to you a few

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