Shows Syrian Refugees rescued off the coast of malta. Libyan traffickers shot and sank their boat leaving them to drown. 400 were on the boat, and its believed 200 drowned. Mortgaged sold by countrywide financial which bank of america bought in 2008. The Justice Department said it will ask bank of america to pay more than 800 million in damages. Those are the headlines. Real money with ali velshi is next. Well, the stock market is still hot but the economy is still cool to the touch. Ill make sense of the disconnect so you know what to do now. And good news about the soaring cost of tuition, and ill introduce you to a space pioneer whose new mission is to tackle the true final frontier, the ocean. Im ali velshi, and this is real money. This is real money you are the most important part of the show so join our live conversation for the next half hour by using this, the hashtag aj real money on twitter. Lets talk stocks. If youre invested right now you know the markets have gone gang busters. The s p 500 is up 22. 5 . And stocks closed lower today breaking a sixday streak so that may be reason enough to ask whether this market has gotten a bit of ahead of itself. Once every three months Companies Report earnings, and were in Earnings Seasons right now with companies coming out daily and telling us how they did in the Third Quarter which is from the beginning of july to the end of september. But investors can look at forecasts that predict earnings into the future. The key way to determine the value of the stock is to try to figure out how much money the company will take in. Profits are increasing. The stock price should, too. Stock analysts are now predicting that companies who make up the s p 500 could see earnings increases in the fourth quarter, the final three months of this year, by 9. 2 compared to the same period last year. Thats pretty strong. But not all earnings are the same. This is an instance where quality matters. Those same stock analysts predict those same Companies Revenue will only increase by. 9. 9 . How do you increase profits by not increasing the amount of money you make . You cut costs. And then there is the economy that these companies operate. They are not in a vacuum. Consumer confidence has been lagging, all told that the outlook is far from rosy but you wouldnt know that by look at the stock market. Tuesday we saw disappointing job numbers for september, and stocks reacted by rallying to another record high. Another reason, a not great jobs report means that the fed will keep Interest Rates low by continue to go pump money in the financial system. As long as the fed does that the stock market remains the only game in town. That brings us to the possibility that the feds low Interest Rate policy, which was designed to revive the economy after the Great Recession may have created or creating a stock market bubble. Thats the view of a man joining me now. He believes that they have been creating the stock market bubble since Alan Greenspan was the man in town. He has written an enormous book called the great deformation. Former congressman david, good to see. You great to be here. Is this real . This is the greatest rally weve seen since 2007 the last time the economy went to the top of the bubble. So my argument is that the fed is a serial bubble machine when it bumps this massive amount of liquidity into the market, 85 billion a month. Everybody knows that. It is not getting out of the canyons of wall street. Its going in with speculation leverage trade and it drives up the value of Financial Assets but its not helping the private economy because the main street economy has so much debt already that it doesnt need low Interest Rates. This whole policy i think is misbegotten. Let me say this, its the greatest gift to the 1 ever given by the state. Because it helps speculators the hedge funds, the fast money. It does nothing for main street. Its a bad policy. But there are people watching me sayingthere are many people watching who would like higher Interest Rates. They are conservative investors, but a lot of people say, i dont want higher Interest Rates. It will ruin the housing market, why do you say keeping Interest Rates low helps th the 1 more n anybody else. Because you cant by a house, you can speculate, buy some bonds, junk bonds, put them up on repo. Borrow . 0 on the dollar. The fed has told you its going to keep the Interest Rate to zero until 2015 and it started all the way back in late 2008. There is nothing in history that shows seven years of zero overnight money brings money. Its irrational. There is talk that they will hold back. If they decided not to put 85 billion in the economy every month that something would go wrong with this economy that is not firing on all its cylinders right now. This is an artificial economy. We had a little bit of a refi boom. We have not had a Real Recovery in the economy. So my point is that you cant have false Interest Rates. You cant fool the economy indefinitely. If the market rate should be 5 or 6 , then it should be 5 or 6 . You were elected into office 40 years ago. Things were different back then. If congress was doing its job right now we wouldnt need the fed to be this involved, would we . No, we wouldnt, but its not a good excuse for the fed to be that involved. Right now our deficit structurally is so big. This year is deceptive because we have the onetime revenue, and the phoneybaloney money from fedy mac and fannie mae. Were in the fifth year of a recovery. By the time you get into the fifth year of a recovery the cycle is over, and youre supposed to be in balance or maybe even surplussed to make up for all the didnt you had. I should tell our viewers dont be squared that its 750 pages but the sub title of your book is corruption of america. Thank youforbeing with us. Thank you. What should you be doing in the last couple of months of this year. Its a particularly tough call when the economy is going slowly. Interest rates are low, and the stock market has run up a lot. Thats what we want to tap into the research who is paid to figure this out. Mark mccarron, the chief strategist, the firm that manages 3. 5 billion for clients including individuals, families, and pension plans. Mark, good to see you. Whats your sense of how real this market is so far . Weve been pretty surprised as the resilience of the market as well, but its not all based on fed policy although that has helped. There has been improvement in earning, particularly in the u. S. Thats against a fairly slow market outside of the u. S. Including europe and asia. If you look at the u. S. Market it cleared up pretty fast but were seeing improvements in earnings as well. Are you worried at some point the fed might get out of the business of putting 85 billion in the economy, the Interest Rates go up, what does that do to stocks . We saw a preview of that particular thing this summer in may and june when talks started. Thats when you saw stock prices fall, and bond prices fall. I would say that was a pretty good indication of what will happen when they start the paper. You are right in believing the ultimate success or failure of this economy is about what consumers do. You are confident that the consumer will keep on going. Theyll keep buying things. You know, we see some evidence of that, and you know, there is that trend. Its not as high as it could be. But then again thats probably a good idea because the consumer has been over the last couple of years trying to get out of their own debt, if you will, and the debt were talking about just before, which is federal debt, while large, is improving and what we have seen is general improvement in the consumer. Mark, good to talk to you. Chief investment strategist as Drexel Morgan capital advisers. It looks like jp morgan is going to shell out more money. It will reportedly pay 6 billion to a group of constitutional investors to settle claims over ba bad mortgages. The payout is separate from the 13 billion that the bank is negotiating with the Justice Department. They settled similar claims with bank of america. Another case related to bank of america and bad mortgages. A federal jury found that bank of americas countrywide unit defrauded fannie mae and freddie mac by selling them thousands of shoddy home loans. This is considered a big win for the u. S. Government because this is the first time that a major bank has been brought to trial for misdeeds during the financial crisis. Now its up to a judge to decide what penalty bank of america will pay. Youll remember bank of america bought countrywide in july of 2008. Would you believe me i if i told you that we have explored space more than our own oceans . Humans have never laid eyes on 65 of the worlds oceans. Oh well tell you how one man plans to change that. When you think about the final frontier of exploration you think about space, right . It turns out that oceans are the true final frontier. Humans have only explored about 5 of the ocean. We know more about the dark side of the moon than we do about our own oceans, and they are at a tipping point. Some say our actions in the next ten years will determine the state of the ocean for the next 10,000 years. That will have an impact on everything from the air we breathe to jobs and the economy. The Urgent Mission to explore the ocean and protect them take a look. Reporter if you think of x prize at all you probably think of space. In 2004 x prize awarded 10 million to the makers of spaceship one. The first privately manned aircraft to fly in suborbital space. It help launch the 1. 5 million private space industry. But x prize is not just about space. Its goal is to find a problem that the market has failed to solve and offer prize money as an incentive to attract teams that will compete to solve that problem. The idea is that the combination of the purse and the prestige may stimulate creativity and innovation that was otherwise lacking. In 2010 it awarded 10 million to edison two for a fuel efficient car that tops the equivalent of 100 mph per gallon. In 2011 after the gulf of Mexico Oil Spill x prize awarded 1 million to the team that tripled the rate to the removal of ocean water. Full disclosure ive reported on and been a fan of x prize for so long that im even on its board. The teaming up with the Schmidt Institute to save and explore the ocean. I sat down with them to talk about why we need the innovation for something that we take for granted. I think when you say we should explore space people will come up with an answer for it. But in the ocean we turn out more about the surface of the moon and the surface of mars than the ocean floor. We think of the ocean thats always been and will always be. It is so huge you think we cant affect them, but we do. At the X Prize Foundation we see the ocean as the tragedy. No one owns the oceans so therefore no one is watching out for them. We think there are a number of places where innovators can help us fix and understand the ocean in greater detail. If i produce to you a martian who said what is this problem of which you speak in the oceans, what is the problem . There are several aspects to the problem. Its really a reflection of the scale of the human foot print. We not only fish the ocean but overfish the ocean. 90 of the big fish are gone. The run off from our industrial practices are creates no oxygen and no life. This is a crisis. I still have a hard time drawing a line between everything that you said. I dont disbelieve you, but what will it do to me . What will it do to us if we dont fix it . Almost 3 billion people make a living on the ocean. If there is nothing in the ocean those people are out of work. There are many whose diet come from seafood. Were at risk. Our future is at risk. When you do the space stuff with the X Prize Foundation thats easy because you can get every kid who wants to be an astronaut and their parents involved in it. We have not created this culture around the ocean. We had it a little bit with jack could yojaques couteau. We have outside of this beautiful new york skyline behind us we had this multi trillion dollar atmosphere service, the ability to predict the weather, the ability to predict what is going on in terms of hurricanes and tsunamis and affects everyone on the world. Our goal is to create that same kind of Service Business for the ocean, help us understand what is going on the fisheries, whats going on with the oceans ability to maintain the eart eas ecosystem. When you look at what x prize has done, its been some innovation that addresses the market failure, whether its a spaceship, car, or getting oil out of seawater. This seems like a major societal problem that governments cannot deal with, and we need a change in behavior. We need a breakthrough in technology. You believe technology could help. What were asking for in this x prize is an association salidification. Wendy is underwriting a prize asking innovators to create a new creation of super low cost, to understand the health of the ocean. We have teams registering and it will run for the next couple of years. This is interesting because this is some area that x prize is going into. Typically its been really senator peoplsmartpeople and tes corporations who win these prizes. Youre creating an opportunity in addition to wanting those people to compete for this, for individuals to get involved. Tell me about this. We have again two ocean x prizes under our belt, and were making a commitment right now to launch three more in the next seven years. The question is what are those three . Were asking the public to step up go to x prize. Org and give us your ideas. What do you think is a problem that needs to be solved . So what do you think is a problem that needs to be solved . What ideas do you have . What should x prize tackle next . You decide. Ill give you the website again. Go to www. Xprize. Org to let them now. The bad news, College Tuition is still rising, but ill tell you where students and parents can smile or maybe not cry as much. That when real money returns. I like to bring you good news and provide a Silver Lining around the dark cloud. The dark cloud is the cost of college. Instate tuition and fees to public fouryear university increased by 2. 9 this year. That is the smallest percentage increase in more than 30 years. That according to a report put out by the college board. Public College Tuition runs an average of 8,893 a year. Private college, by the way, around 30,000 a year. This is just for tuition. Add in the cost of room, board, books, the prices score. It jumps to 22,000 a year. Private school, more than 44,000. The Median Household Income in the United States is 51,000. Now about twothirds of full time college kids do get Financial Aid but there has been a slowdown in assistance this year. This gives a sense of Student Loan Debt tops Credit Card Debt and how the average students graduate with 27,000 in debt. Trying to figure out college for her daughter teresa who is with her. Navigating financial said options has been a daunting process. Jackie and teresa join me now from staten island, new york. A tough year. You have to think about where youre applying, the he i easies youre writing, and you have to think about Financial Aid. Go to school and you work. Yes, i do. Tell bus that . Its a lot. Well, school is pretty okay. Its easy for me. I have my college classes, i have my regular classes, and then i work. Its fairly simple. I work at mcdonalds like a Typical High School job. Jackie, she sounds like at the has got it together on that front. So shell get into a school. Thats a theres for a lot of parents. But you have to think about how youre financing this. Is it obvious how youre going to finance teresas education . We dont know how were going to finance teresas education. My older daughter is in her third year of college and were struggling with Student Loans with that, but teresa is a bright, bright young lady with a lot of opportunities. She has great ambition but were worried if were going to be able to afford the school she gets into, and how can we support her dreams. For those who dont know, jackie, you apply first. Your college Financial Aid will come after, so youre struggling with how to figure out how do you apply to the schools you would like to go out and at the same time go to the schools where youll get the Financial Aid. How do you figure that all out . Thats just it. We have to do our fasa which were doing in january. Were trying to see what we can budget in, how we can do it in the household budget, and we dont know what were going to be able to afford. Thank goodness we have until may, but we have now to get the applications in. Were paying a ridiculous amount of money in application fee. Were doing all types of searches for scholarships. We just try to figure it out. Thank goodness teresa is a bright, ambitious young lady. Where is she going to go . I dont know if we can afford it. Held break our hearts to not give her her dream. You understand that you could come out of college with good debt, but youre not aafraid to work, obviously. No, im not scared of work at all. But im definitely ready for those loans that i know will come after. I wish you both great luck on this. Well follow your story with interest. Let us know as soon as you find out where youre going, where you decide to go, teresa, jackie, well follow up with you after she gets in about how youre going to pay for this. Were with you on this. Thank you for joining us. Weve been asking you does your income justify the cost of your education . From ohio, the cost of my education justified in that i qualified for work that i love, social work. But the pay has been abysmal. And lorbe tweets, yikes, i hate the thought that exclusively thinking that education equals money. Tell me what you think about tweeting me at ali velshi real money. Weve had such remarkable comments on this question. Please keep them coming. We go back to where we started the show and the question whether the stock market has gotten ahead of itself. No one, no one knows where stocks will be a day, month or year from now but after 20 advance in the stock the s p 500 your own portfolio may need some rebalancing. Assets tend to behave differently under the same conditions. If your properly diversified your portfolio may be a little out of whack. If you have stocks and bonds you may have too High Percentage of stocks right now, but take a look at what youre invested in, and prepare yourself psychologically for a pull back in stocks. I dont know if stocks will pull back but this is a market, and markets move up and down. And i want you to be ready if this market pulls back and you dont panic that youll lose all your stocks if it does pull out. While you might avoid some losses by selling quickly, you make a sudden move like that you might loss out in gains when the market starts rising once again. Leave the trading to professionals. Stick with investing. Thats the show for today. Thursday, why knee investments in the United States costs three times as much as in the u. K. Ouch. Im ali velshi. Thanks for joining me. Uncovers unheard, fascinating news stories . It drives discussion across america. Share your story on tv and online. Hi im lisa fletc fletcher ad youre in the stream. Were talking with innovators working to stop 35 million tons of food from being wasted every year in the u. S. Our digital producer wajahat ali is taking your comments. To