The barrels in one of the biggest markets for beer. All of that how stone brewery is tapping the barrel some of the biggest markets for beers. All of that and more, but first, my cohost. Bill ackman, given the right to fasttrack litigation. That meeting of shareholders would surround the 54 billion hostile takeover. For allergan. For september 6. Williamssonoma is down in afterhours trading. While profits rose nearly 5 , is outlook missed on estimates. Falling in afterhours trades and shares of gas falling in afterhours trade. Top is a check of your stories this hour. Thanks very much, carol massar. The American Family is an insecure one, that is what Marianne Cooper discovered when she look at how the recent recession has affected the American Family. The title of her new book is titled cut adrift families and insecure times. In teaches gender research at Stanford University and was the lead researcher on the book lean in women and work and the will to lead. That was coauthored by sheryl sandberg. Did you decide to write this book . I decided to write it because most of the discussion about inequality and insecurity is statistics and its presented in graphs and charts. But theres a lot of humanity in this story, so i wanted to but the human face on it. Putting that human face on stress, innxiety and doing so, what did you discover . I discovered we are weighed down by something very similar, which is the anxiety generated in hard times. From wealthy Business Executives to lowpaid domestic workers, everyone is feeling insecure. We just deal with it differently. Lets talk about some of the ways in which people deal with it. Have we learned anything through the recession about what is and is not important when it comes to money . I think, after the recession, median Family Income is down. Many families are doing this belt tightening and they are trying to get by on very little amounts of money. This is worrisome from an economic perspective, because then they have to turn to credit to get the things they need. We saw how that worked last time, which is that they take on too much debt and they buckle under the weight of that debt and our economy goes down as well. There are some elements to this. Lets talk about someones jobs. Do you have any longterm assurance that he will have a job . Not even longterm assurance, but whether you will get a good wage and benefits. It used to be that we shared risk with our employers. They used to provide us with benefits, health care, retirement, all these things that enabled us to have a good, it secure life. That has begun to unravel and the risk goes on to the families. Does that encourage more individual responsibility . Toit does, but it leads insecurity for families. Families need to have a Foundation Upon which they can plan and execute toward longrange goals. If they do not have stability, its hard to plan. One of the longterm goals can be providing for the education of children in the family. What did the book reveal about people who anxiety their . There is only a portion of americans that can set aside anything for sending kids to college, and that is upperclass families. Many wanted to send their kids to elite educational institutions. That set that cost a lot of money. Harvard and princeton is close to 500,000. They are worried as well. What about the notion that the eames that used to be considered luxuries are now . Onsidered necessities whether it is entertainment or , in previousravel recessions or even during the depression, those things were unheard of. I think a lot of americans have reduced their spending on several things. Most of us are focused on the basics. I found that people were trying to make insecurity seem more secure than in actually was. They were talking themselves through insecurity and putting a brave face on what was actually a very sad reality. What is the role of the u. S. Government when it comes to providing some kind of foundation for peoples financial future . Think its central, and Public Policy has failed us. When people experience insecurity, they often experience as a personal failure. It is not something they did wrong necessarily. It is that policy has failed them. Policy needs to change to get us out of it. Is it other institutions, maybe social commodity groups, or religious institutions can provide the basis for this Financial Health . Religious institutions are right now. Welfare has been outsourced on the federal government out to state based and faithbased urbanizations command they are doing an amazing job providing people with food, shelter, and clothing. The problem is, people in need that should not be only place to go. It can lead to people feeling like they have to say things or believe in things that they might not necessarily believe in order to get the help they need. People need to be able to turn to their employer, their community, and two other time gets of institutions to these things. It is obviously a mosaic and there are different pieces to the fabric of wealth in america. What about the upper income brackets . What do they worry about . They worry about creating an economic firewall the chewing their family and this economic insecurity. Between their family and this economic insecurity. Is, affluent families respond by pushing for more and more. Workingclass families actually lower their expectations and try to get used to less. We actually make inequality worse. And then we do not have the political will to come together and stop it. Education to lift people out of this morass of Financial Anxiety that you have described, is this successful . Is that the right path to try to alleviate these kinds of worries . Its one thing we absolutely need. We need more americans in higher education. What we are seeing is that middleclass and workingclass plates are enrolling at lower rates and graduating at lower rates. That is opposite of what we need. As far as the prognosis, after coming complete circle with the book, are you more or less encourage . Im optimistic because it is something people are talking about. We need to come together and realize we have a problem. 12need to create, like a step program to get out of it. People are talking about it, and that is the first up in addressing it. I want to thank you for giving us his research and enlightening us about this issue. Mary ann cooper, sociologist and author of the book cut adrift families insecure times families in insecure times. Coming up, taking a look at the Central Government and whether responsible these are being shifted to the poor. We are talking about poverty capitalism next. This is taking stock on bloomberg. Im his pimm fox. There is always been a relationship, for example, between defense contractors and the United States military. What happens when services are shifted to the poor . , aare joined by tom edsall professor at columbia university, and author of age of austerity. He joins us from washington. I wonder if you can just iscribe to people what poverty capitalism. Itrns out that turns out that the government and private companies are finding that the poor are a great source of revenue. Costs, inift the missouri, for example, 20 of the City Government is financed through Municipal Court fines that are imposed weigh disproportionately on the poor are records that the poorer residents of ferguson. You also have Court Services like probation overseeing, and collection of fines. And they dont charge the government anything. What they do is make their profits by charging the people on probation, or the people who owe money to the Municipal Court a fee for services. Backave two mutual scratching processes where municipal governments are reducing their costs both transferring and services. You recently wrote an oped piece for the New York Times and you gave a description of an Electronic Monitoring Service that is employed by orange county, california. I wonder if you could describe what you found. The company, which actually has over 200 contracts across the country, sentinel offender , tracks people on probation, provide all the services basically of a probation the parliament probation department. City governments can then stop paying the cost of maintaining their own probation department. Sentinel then collects a finance system, they call it, where the offender costs pays for the cost of electronic monitoring, the costs of drug testing, the whatever fines they owe. All of these costs are shifted to the defendant or probationary person. And the Company Comes out making money and them invisible government comes out making money. I wonder if you could also describe these private Probation Service companies and their relationship to government oversight or regulation. Well, theres a big problem in that they are not so subject to the same kind of transparency requirements that governments are. And in many cases, it is very difficult to find out what fees they charge, how much profit they are making. They are usually closely held companies, so you do not see any public annual reports. Functiona public taking place in the private sector without any real oversight. And in addition to that, these companies, when they are collecting money from people who owe fines, they use the threat of sending someone to jail for failure of failure to pay the fines as a true Collection Agency tool. Sometimes that is appropriate, but sometimes thats inappropriate. The ares the be jesus bejesus out of people. For regulations instance, with judges . For judges, they want to keep and have a down lowcost system. Its to their dentist to turn to these companies. Thishere is making calculation, the people me paying the penalty, in other words the defendants and those paying off fines, often dont vote and in most cases cannot vote against they have committal records. Many states prohibit them from voting. They are not a constituency that judges have to worry about, and they are not a constituency that the general public cares much about. Of a free shot for the judiciary to turn to this kind of process. Much appreciated. Tom edsall, a professor at columbia university, and author of the book age of austerity. Coming up, alibaba is set to go public in september for a potential 19 billion. How is the Company Actually going to sell its stock, and what happens to yahoos stake in the chinese online giant . Find out next. This is taking stock on bloomberg also im pimm fox. Alibaba going public has boosted its spending on public platform. Joining me to discuss this ipo process is leslie picker, who covers ipos for bloomberg news, cory johnson. Leslie, i want to be in with you. Taken,ps that will be once the roadshow, you know, the kind of entertainment portion of the ipo takes place, where they try to dazzle potential investors with all the wonderful things alibaba is doing, what does that look like echo the circus is set to begin and what im hearing from sources is that this will take place over the course of two weeks. They need to go is to as many places as possible because they need investor brian and investor byin and investor Investor Feedback much more so than with the average deal. It starts in hong kong and moved to london and then the u. S. , and not just big cities like new york, boston, san francisco, but places like kansas city, denver, some of the smaller places in the midwest. Why . A broader exposure to do for class of investor base. Roadshow, they get a sense from investors were they are essentially modeling the shares for a year or so. And then they will have a set range and a perspective to see the best place to price the shares. And the goal is to price them in a way that pops a little bit on the first day and shows a good outcome for the investors that bought into the ipo. Cory johnson, more art than initialwhen it comes to Public Offerings echo theres a point where they will have to yes,the temperature, but this is such a big deal. They have a lot of stock to move. To individual investor wants and only the banks best customers will get them. So much stock will be offered that they are looking at a price that will take this deal down, but also looking to anyone to take it, because they got to sell so many shares. Leslie, anyone can take it. All right, lets describe what would happen if you were a Retail Investor and you want to buy 100 or 200 shares of alibaba. Im assuming, that you can do pretty easily. Is more complicated than that. T is very difficult you have to request it through your broker, who will then get allocated a certain number of shares. Certainly characterize alibaba as being one of those. Tois much more to the goal get allocation. The way the bankers are devising this deal is, they have two clients. They have the Institutional Investors on the one hand, those who come deal after deal and buy the shares of the company. And on the other hand, they are advising the company and they have to borrow against both of those interests. As you can tell, in that equation, there are no Retail Investors. There is no incentive to get Retail Investors in there. And it has been ruled that those are ok. Ipos are a risky asset class and getting more retail involvement in there may not be a good outcome for everyone. What about institutional . You go to one of the cities on the roadshow and decide alibaba is a good investment. You raise your hand and say, ok, i will take 500,000 shares. There are a couple of dutch couple dozen investors known there are a couple of dozen investors, the big names. And they will be doling them out to their customers. Exactly. Alibaba will follow the money. They will go to baltimore to visit hero and they will visit t. Rowe price and they will visit fidelity. But it is a step letter allocation where they say, i and this many at this range fewer shares at the high end. It is called the Book Building process where bankers gather that information be able to tell exactly where they price it. Once they do price it, certain institutions will get allocations that they may or may not expect. They may say, i want this many shares at this price, and its given to them and they may keep it until the next day and buy more shares, thats the goal to get the firstday pop, or they may flip it. One company that will be selling some of its shares is yahoo . They have a stake in alibaba. How does that work, cory johnson . In this case, yahoo has been looking for a way to get out of their stake and looking for a way to do that. They will not be selling all their shares. They are threading the needle by keeping some to participate in any of side Going Forward in terms of their valuation. At the same time, getting cash offers. Corporate leslie, lets say, you want to buy as an institutional investor, you you want to buy and then sell your shares. Is there a ready market for . Will you be able to lou to move large blocks of stock . That is where the trick comes in. Remember, with facebook, that of onrse, was 16 billion, so par we are looking at alibaba. Certain Institutional Investors said, actually, im not taking any allocation here. And other institutions heard the same rumor. They also decided not to get allocations, which led to, of course, the spiraling effect the firstday. Investors realize when they were not joined by their marquee investors, they also had to sell. And guess who picked up the brunt of those sold shares . The Retail Investors. There you go. We have to leave it there. Leslie picker and cory johnson. Coming up next, i will tell you about houlihans restaurant. This is taking stock on bloomberg. Im pimm fox. Carol massar. Russian hackers were able to steal data from Jpmorgan Chase and at least one other bank, according to people familiar with the case. The fbi is investigated whether was meant as retaliation against economic sanctions against russia. Members of the Central Workers Union are blocked major thorough fairs in a protest over taxes and wages and the overall cost of living in argentina. A town in eastern spain were awash in red pulp as people pelted each other with 125 tons of ripe tomatoes. The event was inspired by a food fight between local children in 1945. Nonresidents for the second year in a row were charged to join in. The money was raised to help pay off some debt. But thanks very much. Thanks very much. Restaurant, big expansion plans. The company owns for restaurants four restaurants and has grown. The chief executive, bob hartnett all is with us. And also with us, leslie picker. I will let her tell you why she still here. Lets Start Talking about houlihans. How did you get involved with the Restaurant Group . With houlihans . Yes. But i was the co of einsteins. Einsteins eagles. Bagels. But we took that through bankruptcy and i was looking for something to do and in 2001, houlihans was in a bit of trouble. Toot recruited by ge capital take a look at it for 30 days, and that turn into a 14 year career. Dirty days turned into 14 years . Yes. 30 days turned into 14 years . Yes. How do you compete with the competition . Menu ande an upscale what separates us from the competition is that our menu is a bit broader than most. Our check average is about 16 and a lot of other casuals are in the 20 range. And we have a robust bar scene. Most casual diners have about a 15 liquor mix. We are at 25 will stop you can go on one side of the restaurant and get a casually elegant meal. Or the other side of the bar is cool and hip with a lot of energy and you get a drink and an advertiser appetizer. Its the best of both worlds. Leslie picker, not only are of an expert in the world initial public offering, but you brought polish to houlihans. You said you worked at houlihans. First job at 16. It was the first job i ever applied for. The reason i went there is because we ate there all the time