Or there was a circuit. Megan there is also a way to make enough money to only work on the circuit. We looked at people using these marathon coding sessions to test a product or take it to the next level. There are are rewards, sometimes cash, swag. We find people whose entire apartment is littered with tvs, printers, shoes, anything you can think of from participating in these sessions. Oliver the idea was popularized in the social network. Its a very real thing for anybody who knows a bunch of coders. The thing is these guys are topoftheline and they could go work for these major companies. Megan it is almost this cycle, this rite of passage, when you are young and dont have a lot of obligations, you probably feel free to have an allnight hackathon and come back to your gross apartment. Once you get a family, once use you start thinking about longterm goals, kids, a much or it is appealing. Oliver maybe not the most sustainable. Lets talk about an adjusting here these story , different means of communications through texting on platforms that are hard to track. Megan one thing that has come out through the litany of scandals since the crisis was that a lot of these activity of alleged collusion between traders moves into this social chat services which are known to disappear and cant be tracked. Basically carol great for compliance. Megan how they are using these services to explicitly go around the compliance protections, banks have worked so hard to get ahead commit to be in compliance ahead, to be in compliance and monitor these conversations. Bankers are no different from anybody else. They will migrate to the platform that provides them privacy. Whether that is to get ahead in work or send images they dont want to be seen sharing. Carol some companies are aware and are turning a blind eye. Megan we talk about this with uber, airbnb, the migration towards Disruptive Technology and how regulators and executives are one step behind. Yes, they are trying to get ahead of it and know it will be an issue, but they are only as good as the technology. Carol lets talk about the cover story. It is a photo essay. We talk about building a wall along the border with mexico. I feel like these pictures tell a true story of what is going on. Megan this is one part of the country that i am not familiar with. It is the area we call north of the border, south of the wall. There is a large amount of area, farming, trade, trucks across the bridges, childrens, family, playgrounds, territory caught in the middle of where the wall will go and where the border with mexico will be. One of the things that is most fascinating is that there are huge gaps to facilitate these people to come across where they legally live on United States soil but are south of where that wall would run. Oliver it really is fascinating. We talked to the photo editor about those photos. One of the main points of interest is you are looking at the Border Patrol manning and opening, but for the most part, these fences are not manned, so you have openings so that land owners can access their land. Carol that is an important point. Where this wall, there are farmers, golf courses. State and national parks. Carol there is activity going on. Yes, and there has to be access to these places because it is owned and use. In most cases, the wall is punctuated by these openings that are like you see later in the essay, built on levees which were fortified when this project took place around 2006, so part of the buy in on the part of the land owners is that the levees would he made better because it is a floodplain. She found one man who was of hunting on at friends private land, undocumented workers harvesting spinach and beets. There is a hotspot for finding migrants trying to cross. 500 million in commerce is facilitated by the border crossings. Carol the bridge that goes between mexico it is actually like an incredible chunk of International Commerce taking place here. This is a huge economic story, and one that we say the topography runs against the rhetoric of what this wall should be. Oliver just looking through this come you capture a great deal of the labor that happens in this sliver that is north of the border and south of the wall. They are able to move backandforth and Border Security premuch looks the other way. Again, private land, private commerce. There are tacit arrangements built around trust between the Border Patrol and landowners, so it is not to say anybody is doing anything wrong, but there is a presumption of giving people access to the land they own. Carol at the same time you have immigrants trying to come across. One of the pictures is a photograph with the Border Patrol agents as they got a call about a car that was trying to run across, and there was a concern this was a migrant vehicle. What the vehicle did was make a run for the river and try to hit water. In fact, the car crashed and exploded, so he ended up running back on foot to get across the border. There is also real action taking place. At the bridge, people cross frequently and present themselves requesting asylum from central america. Carol using these photos was the job of rob vargas. We knew we wanted a picture of the fence. Some photographs were at an angle and the fence looked solid, but we thought this one was at a good instance and we could tell what the fence looked like, and it also has an opening. Part of the reason we did the photo essay was to explain why the fence needs to be porous. Oliver i thought it was interesting the way you used to the space, the arrangement of the photo. A lot of the fence is unmonitored. This photographer explored this 55 mile stretch, and there are lots of openings that are devoid of any Border Patrol or anything like that, so this also gets at that. It is impossible to have people stationed at all points of this enormous fence. Carol north of the border, south of the wall, there is this land behind the wall that is u. S. Land because you cannot put a wall between the two nations. Offense seems like a simple thing, but there are nuanced parts to it. Oliver up next, the real motive behind Donald Trumps registry of crimes committed by undocumented immigrants . Carol this is bloomberg. Carol welcome back to Bloomberg Businessweek. I am carol massar. Oliver i am oliver renick. Carol a look at President Trumps efforts to document stories committed by undocumented immigrants. Oliver we talked to our reporter. Voice stands for victims of immigration crime engagement. It was called for and an executive order by donald trump and elaborated on by a memo by john kelly. I heard about this organization and was intrigued by the acronym, so i reached out to ice. You the agency is not operable yet, and there are still uncertainties about what it will are look like, but ostensibly being sold as an organization to engage with big himself crimes committed by undocumented immigrants. The memo by john kelly calls for funding for the program to come from services that previously had been devoted to advocating on behalf of of undocumented immigrants going through the enforcement system. Ice has said this is about serving victims, but some of the actions and statements made by the administration also allude to another purpose for this agency. Donald trump said in his first address to the joint session of congress that it was about giving a voice to people forgotten by the Mainstream Media. Oliver these Community Relations officers, how different will their role be from those previous officials who were in charge of facilitating relationships and getting to know the community . Will it be separate people . Who will be in charge of finding these instances . A the Community Relations officers working with voice are drawn from the same pool of officers doing their work. We dont know what their job will entail. The Voice Program will issue a you will Quarter Report and will weekly report compiling going instances of crimes committed by undocumented in carol they started doing that in february. I should be clear it is not explicitly tied to the Voice Program, but was mentioned in the same executive order that called for the creation of the Voice Program. In we also know they will have a system in place for notifying victims of alleged crimes when undocumented immigrant is released from a detention facility or has a court date or is supported. Carol it feels like so much is now focused on the victims of crimes from undocumented immigrants versus may be helping the undocumented immigrant community assimilate. Ostensibly this is about helping victims, but when the president announced the creation of this in his speech to congress, he said it was about a giving a voice to those maligned by the Mainstream Media in the community and then went into highlighting these inflammatory cases of crimes and committed by undocumented immigrants, so there is this disconnect between the press release and the actions of the department are indicating. From what we can tell, it seems like a huge part of this mission is influencing narrative as much as influencing policy. Carol isnt it, doesnt the data show that undocumented immigrants dont do the majority of crimes . Despite the assertion that Illegal Immigrants routinely victimize americans, Research Show this is not a crime prone cohort. There is no correlation between high immigrant areas and high instances of crime. There is research that suggests that nativeborn americans are twice as likely to be incarcerated as undocumented immigrants. If you remove the undocumented immigrants from detention facilities, native born americans are three times as likely to be incarcerated. Oliver how the bank of canada inspires some fed governors. Carol the strategies competing for the big slice of 10 billion market in actively managed funds. Oliver this is Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. Carol i am carol massar. You can also listen to us on the radio. Oliver in the Global Economic section, bill dudley has a special trick when it comes to Monetary Policy. Carol he looks north for inspiration. This story goes back 20 years to when he was chief economist at Goldman Sachs before he joined the fed. He has been on a crusade to get central bankers focused on the stock market and how that interacts with Interest Rates, and so what he tries to say is that if the stock market continues to go up when we are raising rates, that does not necessarily mean conditions are getting tighter even though we might be trying to tighten them, so the reason why it has become relevant in 2017 and this tightening cycle, this idea that goes back 20 years, is that is what we have seen so far this year since the election, the fed raising Interest Rates, raising them twice over the last three months, but stocks keep going up, so on balance, conditions have been getting easier so that raises the question do they need to start raising rates faster to counteract that at some point. Oliver how far does this go back . He brought it from the bank of canada in the early 1990s. At the time, the bank of canada was having a similar issue where they were setting Interest Rates, but they were being subjected to big swings in the Canadian Dollar because of the time there were a lot of international investors, capital flows, a lot of the problems we deal with today, but they needed to figure it how to communicate that. They needed to adjust Interest Rates based on these moves in the Exchange Rate, so they combine Interest Rates and the Canadian DollarExchange Rate into a single index of people could see netnet weather conditions were getting easier or getting tighter regardless what they were doing with Interest Rates, then that could get investor to expect them to respond in kind with Interest Rates to what was happening with the Exchange Rate. Carol it shows there is another thing we as investors have to think about when it comes to the fed and Monetary Policy. They have this dual mandate, but it shows through bill dudley and his thinking and impact on the fed that there is more at work here. Thats right. This goes beyond the traditional notion of central banking, if we raise the Interest Rates, we are tightening. If we reduced rates, we are easing. You have to look at Everything Else going on in the world. In 1996, he was saying it is not enough to judge the stance of Monetary Policy based on where the Interest Rate currently is because we cannot observe that equilibrium Interest Rate that fed officials have been obsessed with trying to figure out, so he says you need to look at the stock market, broader financial conditions, to guide your next steps. Carol in the markets and finance section, the race to corner the market in etfs. With the active etfs being proposed, we have a situation where passive investments have been taking more market share from active management. Where you are seeing outflows and stagnation is the active mutual funds. These active etfs are a hybrid to stop the rot. Carol it is a story we have been talking about a lot at bloomberg. Why do folks see active etfs as a good solution . The Fund Provider see it as a good solution to their situation. That is the real question. We have seen 100 million for low in two funds, drop in the ocean compared to the amount of money that flowed into Exchange Traded funds at the same time. We have these Fund Managers who want to keep the money and active funds, but we have the investors who are moving into passive funds because they see those as better value for money, so there is an interesting disconnect between the supply and demand for these products. We havent seen demand pickup to show there is a point to these funds. Oliver when you say a mutual fund wrapped in a package, how do they get the disclosure to trade intraday . When it comes to etf pricing, it will probably still be cheaper. An Exchange Traded fund has tax efficiencies a mutual fund does not have and brings the costs down. When you get to the disclosure side, the way they get around this is they are trying to give investors a different type of disclosure, so it varies from structure to structure, but the way they are trying to approach this is rather than disclose holdings day in and day out, they are hoping they can do that once a quarter and give the markets and intraday value. Carol transparency risks exposing the secret sauce that active managers use. Thats the whole idea, not disclosing what is in the fund, and that is where the active side comes in. When it comes to active etfs, what they have done so far is disclose their holdings every day. The problem with that means you can potentially if you are another investor, you can front run those funds. These new structures are trying to get around that by not disclosing day in and day out, but in order to do that and get regulatory approval, they need to give Something Else in return. Carol up next, torontos hot housing market. Oliver this is Bloomberg Businessweek. Tually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Sim happy for the distraction. Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Are you my uber . [ horn honks ] hold on. [ upbeat music playing ] the biggest week in tv is back. [ doorbell rings ] whos that . Show me watchathon. Xfinity watchathon week now until april 9. Get unlimited access to all of netflix and more, free with xfinity on demand. Oliver welcome to Bloomberg Businessweek. I am oliver renick. Carol i am carol massar. How much to trust or ignore and the Chinese Tech Company dominating the drum business. All that ahead on Bloomberg Businessweek. Oliver we are back with editor in chief megan murphy to talk about some must reads. Lets talk about housing. This is a big focal point in the economic recovery here, but you look at it in canada where there is a shortage of housing. Megan the average home price of a toronto house, 905,000, rivaling some of the most expensive metropolitan areas in the night, but this story takes it from a different angle. People are so desperate that people are forgoing the house inspection. It is usually unnecessary process. While you are seeing a huge raise for these properties, theyre saying prices drop by 30 , people desperate to get their offers accepted. One time there was a house with a bathroom that looked like a bathroom, but the plumbing was not hoped up. Banks and consumers dont care, but it will open up problems later on. Carol it is happening in other c