#139 When Will Wall Street Crash? Diana Henriques

The U.S. stock market has soared about 40% since the Trump election. But is it over-valued and ready for a meltdown?

Shortly before the worst one-day crash in history in November 1987, the market had been charging ahead, with a 40% rise that year. The economy was on a roll, just like today.

What would happen if giant investment funds bailed out of stocks at the same time? Would there be another financial crisis, even worse than the events in 2008?

"We are more vulnerable to a radical readjustment," says our guest, New York Times journalist, Diana Henriques, author of the widely praised  "A First Class Catastrophe: The Road to Black Monday, the Worst Day in Wall Street History." She is also the author of “The Wizard of Lies: Bernie Madoff and the Death of Trust,” a New York Times bestseller

"It is important for us always to remember that markets go up and they go down, says Diana. "What we need to worry about is do they fall apart when they fall."

"Even professional money managers today are alarmed at the fragility of market structures on which they rely."

In this episode, we look at potential solutions, including streamlined financial regulations, guaranteeing that authorities have a 360 degree view of where financial brushfires are erupting, and scrapping the highly fragmented system that we have today. We also take a second look to the findings of the Brady Commission, the post-mortem report after the "catastrophe" in 1987.

Hear more about the financial system and its flaws from our previous guests:  Roger Lowenstein on why we need The Federal Reserve; Rana Foroohar, of The Financial Times, on Wall Street's giant threat to the economy; ABC News Chief Business, Technology and Economics Correspondent, Rebecca Jarvis, on fixing everyday money mistakes.

Web Extra: How can you tell if a mutual fund is a good investment and or well regulated?

#132 The Truth About Robots: Peter Cappelli

Once again the alarm bells are ringing. A new study by the McKinsey Global Institutes estimates that within 12 years, up to 800 million of today's workers may be replaced by robots or some other form of automation.

Other recent research reports on the impact of technology are even more disturbing. A survey by PriceWaterhouseCoopers, the professional services company, claims 38% of U.S. jobs are at high risk of being replaced by robots and artificial intelligence over the next 15 years.

But what if many experts are wrong? 

Peter Cappelli, Director for Human Resources at the Wharton School is our guest in this episode. His research is both contrarian and eye-opening. Peter has been named one of the most influential thinkers of the decade by HR Magazine, and is the author of "Why Good People Can't Get Jobs." 

In this episode, we discuss the paradox of the tax code, which gives incentives to companies to spend money on new technology INSTEAD of re-training workers. Peter also gives constructive insights into business culture and why it needs to change.