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Speaker 1: You're listening to KFI AM six forty on demand.

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Speaker 2: So have you gone out to eat lately? Could be

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Speaker 2: the last ten could be the last time. Restaurant owners

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Speaker 2: across the country bracing for the brutal reality that inflation

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Speaker 2: is squeezing them, and not in a fun way. Customers

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Speaker 2: pushing back. Food costs are soaring, eateries are considering menu

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Speaker 2: price hikes as much as thirty one percent just to

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Speaker 2: stay afloat. So remember when you were complaining about inflation

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Speaker 2: in like twenty two and twenty three and you went, wow,

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Speaker 2: I can't believe that a big mac meal is now

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Speaker 2: up to eighteen dollars or whatever the cooint complaint was

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Speaker 2: at the time. And then you were like, ah, this

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Speaker 2: is because of wages. Wages are a component of it.

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Speaker 2: Wages are component, very small component, but they are a

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Speaker 2: component of it absolutely. But come to find out, it

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Speaker 2: has everything else to do with otherwise inflation. Operators of

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Speaker 2: restaurants say that inflation is the biggest issue.

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Speaker 3: Marketing costs have gone up. Mark, that's uh.

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Speaker 2: They're complaining because you got a raise, Remember that big

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Speaker 2: raise you got. Remember you're gonna have to refresh me

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Speaker 2: on that because well, marketing because they, you know, costs

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Speaker 2: more to market, which which must mean that we're charging

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Speaker 2: way more. And if we're charging way more, it must

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Speaker 2: be in order to pay these exorbitant costs.

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Speaker 3: I'm looking forward to this raise.

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Speaker 2: I think I was doing math on this because somebody said, uh,

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Speaker 2: you know, I was telling him I was doing the

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Speaker 2: show again tonight, and they said, you make a lot

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Speaker 2: of money doing that, and I go, no, what are

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Speaker 2: you doing. I mean, I get to I get to

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Speaker 2: be on KFI. It's great, and uh, and I realized

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Speaker 2: I'm making the same amount now I was. I think

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Speaker 2: in twenty eighteen.

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Speaker 4: For every show I do, when people ask me that,

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Speaker 4: I just give the same answer Johnny Carson used to give,

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Speaker 4: which was I have no other skills.

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Speaker 2: Oh my gosh did he say that, yes, because I

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Speaker 2: get people are like, oh, why do you do? And

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Speaker 2: I have no other employable job skills? I have none,

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Speaker 2: you're channeling Johnny none.

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Speaker 3: But it's true though. My father is the worst at this.

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Speaker 2: My father goes because I was, you know, I was

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Speaker 2: on the beach for a while, and uh, my father's like,

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Speaker 2: you need to good a job, and I go, I'm

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Speaker 2: doing some fill in work. You know here, I was

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Speaker 2: doing some stuff in San Francisco. I did some stuff

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Speaker 2: in Dallas, and so I was doing filling work.

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Speaker 3: And it was I mean it was.

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Speaker 2: It wasn't steady, but it was often enough that I

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Speaker 2: was I was contributing to the household income. But my father,

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Speaker 2: you need to do something. I think you could be

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Speaker 2: a great product demonstrator. You could travel around to all

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Speaker 2: the shows telling people about the great products. Oh, I'd

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Speaker 2: like to see you hanging out free samples at Costco.

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Speaker 2: You'd be great at that, exactly. Yeah, And I got

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Speaker 2: you know how much. I would just start yelling at people.

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Speaker 2: I go move it, Ethel. They kind of already do

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Speaker 2: that at closing time. Oh how many sausages is.

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Speaker 3: You gonna eat? Walter? Get moving, you know.

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Speaker 2: So, No, I'd be terrible at it. I think I

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Speaker 2: could do product demonstration. That's great, but it doesn't pay anything.

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Speaker 2: My father seems to think that the people who are

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Speaker 2: standing there next to you know, new Ford trucks are

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Speaker 2: making a killing because they know the stats and they

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Speaker 2: can answer questions.

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Speaker 3: No, they're not. They're not making a killing.

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Speaker 2: Not they're sleeping in two people in a crappy hotel

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Speaker 2: room every night is what they're doing anyway, and then

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Speaker 2: the other operatortionity hiring is another big issue that they've got.

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Speaker 2: So what's happening is a number of restaurants have to

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Speaker 2: hike things up. Some are blaming the president's terariff strategy.

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Speaker 2: Price hikes tied to President Trump's tariff aggressive tariff strategy.

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Speaker 2: And while tariffs can be enacted with a penstroke, it

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Speaker 2: takes years to rewhite to rewrite excuse me, global supply chains.

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Speaker 2: This according to a supply chain expert. They say, so

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Speaker 2: go ahead and savor that fourteen dollars burger. It might

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Speaker 2: be the cheapest one that you're going to see for

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Speaker 2: a while. This is a restaurant owner who's trying to

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Speaker 2: figure out how he's going to survive.

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Speaker 5: I think Hot Passa is a family affair for Sunday

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Speaker 5: Gravy in Inglewood, California. Owner Soul Basherian's family has operated

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Speaker 5: an Italian restaurant in the same spot for decades.

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Speaker 6: My dad put an offer together and grabbed all his

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Speaker 6: savings and bought this place, and here we are now,

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Speaker 6: like what almost fifty years later.

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Speaker 1: But the legacy could go stale.

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Speaker 5: Vasherian says he is spending thousands more a month on

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Speaker 5: imported ingredients. Well, Sunday Gravy has seen a thirty percent

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Speaker 5: bump in sales since last year. Tariffs and inflation are

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Speaker 5: eating into his profit.

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Speaker 3: Oh how dare you? You can't say that.

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Speaker 2: It sounds like you're trying to blame the president for

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Speaker 2: his economic strategies, which has generated a tremendous amount of

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Speaker 2: new tax dollars. Those tax dollars are simply coming from oh, tariffs.

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Speaker 3: Yeah, that's oh yeah, that's it.

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Speaker 5: So you're barely breaking even.

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Speaker 6: Yeah, we're definitely barely breaking even. It's just the reality

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Speaker 6: of where the food industry is at. R. J.

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Speaker 5: Hannaby with placer Ai advises restaurants across the country. He says,

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Speaker 5: the eatery.

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Speaker 3: Hear that mark, that's an AI guy, that's restaurants.

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Speaker 4: How could you go wrong? I know that makes you

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Speaker 4: happy always. They're infallible, So you have to listen, yay.

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Speaker 3: I told me. And how could it go wrong?

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Speaker 5: Is that catered to lower and middle income consumers are

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Speaker 5: hurting financially, and so are their customers.

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Speaker 7: That group is facing cost pressures on a number of fronts,

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Speaker 7: not just food, but are the things like rent and inflation.

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Speaker 2: Yeah, now keep this in mind. It's not just when

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Speaker 2: he talks about inflation. So you've got yeah, your rent

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Speaker 2: is going up. The inflation also hits not just the foods.

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Speaker 2: And we do have a beef shortage. But good news.

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Speaker 2: We sent forty billion dollars to Argentina to get more

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Speaker 2: beef from them. So make Argentina great again. Argentina first,

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Speaker 2: good agenda. So now you have food costs are up.

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Speaker 2: Egg prices are still high. They've come down from their peak,

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Speaker 2: but they're still high. You have a number of restaurants

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Speaker 2: that are going okay, buying the food is high. What

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Speaker 2: happens when that refrigerator breaks. Happens when the deep prior

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Speaker 2: is no longer operable. Your steam jackets aren't working, Your

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Speaker 2: convection evens are toast.

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Speaker 3: Even if you have to have it, you're got to

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Speaker 3: pay to have it fixed.

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Speaker 2: The repair costs have gone up because parts have got

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Speaker 2: more more expensive because the parts are manufactured elsewhere, and

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Speaker 2: if you have to replace the item in general, even

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Speaker 2: if it's manufacturing in the United States, the metals that

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Speaker 2: are being used, the aluminums, the steels, those.

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Speaker 3: Are going up in costs. Because we've added tariffs.

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Speaker 2: Everything is going up, and it takes a while for

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Speaker 2: the tariffs to trickle into the economy, and it takes

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Speaker 2: a while for it to trickle down to to those

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Speaker 2: of us who are paying for it. But it's happening.

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Speaker 2: So what do we do?

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Speaker 5: A new report out by cloud based management company Toast

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Speaker 5: shows that nearly half of the restaurants surveyed plan to

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Speaker 5: raise menu prices if costs continue to rise.

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Speaker 2: Be honest, do you think costs are not going to

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Speaker 2: continue it arise?

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Speaker 3: I have no faith in that.

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Speaker 2: I don't see inflation plateauing. It has been steadily climbing

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Speaker 2: over the last six months, ever since we put the terrace.

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Speaker 2: It's slowly, slowly climbing. Now we didn't have some sort

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Speaker 2: of a terrible fall off of a cliff. Some economists

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Speaker 2: we're talking about how this would push us into an

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Speaker 2: instant recession that would be tough to dig out of.

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Speaker 2: It could be worse than that. It could be a long,

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Speaker 2: slow stagflation where you've got high unemployment and high inflation

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Speaker 2: and then the FED is basically paralyzed.

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Speaker 5: The National Restaurant Association says menu prices would need to

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Speaker 5: increase by more than thirty percent just to maintain a

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Speaker 5: thin profit margin.

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Speaker 6: It sounds easy, but there's such a process behind it.

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Speaker 6: It's reprinting a menu and the printing costs associated with that.

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Speaker 5: Do you think that sticker shock would drive away people

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Speaker 5: from even walking into the door.

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Speaker 6: Absolutely, it's pasta, and pasta is not supposed to be

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Speaker 6: crazy expensive, right.

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Speaker 3: The atmosphere, of course, is expensive.

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Speaker 2: Never could figure out how Olive Garden got away with

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Speaker 2: charging their prices, but they do for now.

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Speaker 5: Senney Gravy is adding a five percent surcharge on the

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Speaker 5: bill to offset tariffs. Restaurant owners in California are allowed

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Speaker 5: to add an extra fee if it's clearly and conspicuously

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Speaker 5: displayed on menus. Ptavey says that charge could turn away customers.

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Speaker 1: Yeah, is price fatigue.

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Speaker 7: I think consumers have been paying higher prices for many

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Speaker 7: years and there's a breaking point for a lot of

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Speaker 7: these consumers.

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Speaker 2: Boyd, did he hit the nail on the head when

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Speaker 2: he said we've been seeing it go on for many years.

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Speaker 3: He called it price fatigue.

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Speaker 2: Economists have another term for it, and it has everything

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Speaker 2: to do with how our brains process it. You'll find

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Speaker 2: out what that is and why these price changes are

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Speaker 2: about way more than just tariffs.

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Speaker 3: Tariffs are a big one, way more than just teriffs.

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Speaker 3: That is next. I'm Chris Meryldon.

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Speaker 1: You're listening to KFI AM six forty on demand.

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Speaker 2: After marks eight thirty news, we got foreclosure fever happening

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Speaker 2: all over southern California.

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Speaker 3: It is such a great time to go broke.

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Speaker 2: It is not. Number of restaurants are struggling. They're on

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Speaker 2: the struggle bus, and for good reason. Inflation is hitting them.

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Speaker 2: Tariffs have hit them, whether it's imported foods or that is,

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Speaker 2: the materials that they need in order to function. Things

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Speaker 2: are getting more and more expensive. Few big reasons. CBS

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Speaker 2: News did a report on just this very thing.

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Speaker 8: It's no secret that your trip to the supermarket is

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Speaker 8: costing more compared to last year. Overall, grocery prices have

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Speaker 8: risen nearly three percent. Food prices went up by half

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Speaker 8: a percent from July to August. That's the fastest monthly

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Speaker 8: increase since fall of twenty twenty two. It was driven,

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Speaker 8: in part I commonly imported groceries.

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Speaker 2: What you mean imports are dropp Wait a minute, we're

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Speaker 2: seeing grocery prices increase as quickly as they were since

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Speaker 2: the middle of the Biden administration.

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Speaker 3: What could possibly be causing this? It's weird.

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Speaker 9: Tariffs have a huge impact on grocery prices.

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Speaker 8: Food industry analyst Phil Lumpert is known as the supermarket Guru.

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Speaker 8: Why are we seeing these increases?

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Speaker 9: Number one is climate change. We can't grow our food

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Speaker 9: where we used to grow it. Now it's had to

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Speaker 9: move to Central and Latin America.

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Speaker 3: Okay, well, that's woke answer number one.

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Speaker 9: Number two is a labor shortage.

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Speaker 3: And then third is.

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Speaker 2: What's causing the labor shortage when it comes to fresh vegetables?

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Speaker 2: All right, beats me, completely unexplainable. They're tariffs, tariffs, more

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Speaker 2: woke nonsense.

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Speaker 8: Among the biggest price jumps, coffee prices have shot up

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Speaker 8: more than twenty percent compared to a year ago.

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Speaker 9: We got fifty percent tariffs on coffee from Brazil, and

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Speaker 9: we import about thirty five percent of our coffee beans

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Speaker 9: unroasted from Brazil. Coffee is gonna get more expensive?

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Speaker 3: Okay, No, that's just.

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Speaker 10: No, no, no, don't make coffee more expensive because I'm

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Speaker 10: not gonna stop drinking it, but I'm gonna have to

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Speaker 10: give something else up like a child.

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Speaker 8: Unfert also says brace for something called a shrink free s.

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Speaker 9: What they're doing is they're trying to put less in

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Speaker 9: the package, hoping that you and I are not going

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Speaker 9: to observe that and keep that price either stable or

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Speaker 9: just slightly increased.

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Speaker 3: Yeah, and that's gonna start happening at the restaurants too.

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Speaker 2: The restaurants are gonna start shrink flating things because they've

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Speaker 2: got increased prices for beef and poultry and dairy and

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Speaker 2: produce and all of these other things. And as a

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Speaker 2: result of that, eggs are going up. I mean, eggs

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Speaker 2: are still high. We have the bird flu outbreaks and

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Speaker 2: that spike things that wasn't tariff related, but eggs.

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Speaker 3: Are still expensive. So what ends up happening.

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Speaker 2: Is they go, we got to either raise our menu

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Speaker 2: prices or our three egg ama just became three small eggs.

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Speaker 3: That's it.

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Speaker 2: No longer are we selling a quarter pounder, Now we're

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Speaker 2: selling a standard burger. That's how it's going to start

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Speaker 2: shaking out. This is going to be shrink flation.

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Speaker 8: Higher prices are changing consumer behavior too. More shoppers are

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Speaker 8: choosing less expensive store brands, going to multiple stores and

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Speaker 8: buying in bulk.

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Speaker 2: Now what happens when we've already done that. So I'm

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Speaker 2: a big fan of the store brands. I don't buy

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Speaker 2: the brand name stuff very often. And there's some coffee

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Speaker 2: creamers you know that's name brand because honestly, the store

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Speaker 2: brand is not any cheaper. But for the most part,

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Speaker 2: stuff I get is off brand, and I do buy

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Speaker 2: in bulk when I can. So if prices are still

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Speaker 2: going up and I'm still filling, squeeze, what's next?

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Speaker 3: What's your advice on how to save? Number one?

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Speaker 9: Always have a shopping list, don't waste food, take doggy

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Speaker 9: bags from restaurants, use leftovers.

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Speaker 2: God, I wish I could teach my kids this stuff.

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Speaker 2: Wait to took my mother in law out for her birthday.

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Speaker 2: She wanted to go someplace fancy Texas Roadhouse, so we

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Speaker 2: went and had steak there and she she then gets

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Speaker 2: the whatever the Texas Roadhouse equivalent is of the bloomin

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Speaker 2: onion that they have it out back, but she picks

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Speaker 2: the onions out, so she just eats the.

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Speaker 3: My mother in law special. So she she pulls the

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Speaker 3: onions out of.

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Speaker 2: The deep fried onion and just eats the deep fried,

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Speaker 2: crispy part whatever, and then she orders, of course I'm buying,

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Speaker 2: so she orders what, you know, more than she needs?

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Speaker 3: Took you to the cleaners? Did she?

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Speaker 2: She always does? But you know it's my wife's mother.

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Speaker 2: What am I gonna do? Tell her that she can't

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Speaker 2: have it? You know, so I'll take the onion away

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Speaker 2: from her at the very least. That's obscene, isn't that crazy?

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Speaker 2: She just throws onion on her plate, and you're like,

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Speaker 2: what are you doing with it?

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Speaker 3: What are you doing?

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Speaker 2: We can't have that, Thank you. You and I are

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Speaker 2: on the same page on this one for once. But

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Speaker 2: then then she's got steak leftover, and she goes, you

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Speaker 2: won't take this home? And I said, no, it's your stak.

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Speaker 2: Why don't you take it home? She I don't eat leftovers.

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Speaker 2: What do you mean you don't eat leftover? I don't

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Speaker 2: eat leftovers out like them. By the way, it's a

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Speaker 2: running gag in my house that my mother in law

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Speaker 2: is always out like that, out like that, out like that.

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Speaker 2: She's the pickiest eater you will ever out like that,

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Speaker 2: out like I ain't eating that.

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Speaker 3: I ain't eating it.

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Speaker 2: So anyway, when we go out to eat, we figure, okay,

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Speaker 2: she can order whatever she wants and she's gonna want it.

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Speaker 2: And then she orders it, she doesn't like it, put

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Speaker 2: salt on her salad. It's goofiest person.

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Speaker 3: But then she's got leftover steak and she wants to

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Speaker 3: throw it away.

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Speaker 2: I ain't eating that. I can just throw it away.

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Speaker 2: And I'm thinking, I just paid for your stake. Prices

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Speaker 2: are up, and you're gonna throw it away. And I

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Speaker 2: said why, I've never been rich enough to not eat

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Speaker 2: leftovers out like that. So what happens when I'm eating

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Speaker 2: my leftovers. I'm buying in bulk. I'm buying the store brands,

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Speaker 2: part of, part of. And we heard this in the

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Speaker 2: last segment, the restaurant owner that said people are getting

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Speaker 2: sticker shocked when they come in and they see the

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Speaker 2: menus because their the minds are affixed to a price

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Speaker 2: from before. Experts call that price anchoring. So we and

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Speaker 2: you'll hear this. Maybe you've done it. Older people do it,

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Speaker 2: of course all the time.

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Speaker 3: They go I remember when it used to be.

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Speaker 2: I remember when a gal and I gus was only

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Speaker 2: sixty four cents.

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Speaker 3: You know whatever.

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Speaker 2: So that's called price anchoring, and our perceived value seems

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Speaker 2: to freeze at a certain point in time, and so

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Speaker 2: no longer do we say, well, I suppose of you

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Speaker 2: adj just for over the course of the last five years,

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Speaker 2: when we've seen some high inflation numbers, that is in

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Speaker 2: line with what the price would have been back in

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Speaker 2: twenty nineteen.

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Speaker 3: But we don't think that way.

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Speaker 2: We think, I remember when, and I do the same

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Speaker 2: thing when it comes to buying a house. So I

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Speaker 2: look at houses in the area and I go, Wow,

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Speaker 2: Orange County median home values a million dollars, and I

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Speaker 2: think you should be closer to like five point fifty.

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Speaker 2: Because when I moved to California thirteen years ago, it

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Speaker 2: was we were we were coming off of a little

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Speaker 2: mini recession in twenty eleven, and the four bedroom house

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Speaker 2: still blew my mind. That was five hundred fifty thousand

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Speaker 2: or six hundred thousand dollars. Okay, right, sounds cheap all

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Speaker 2: of a sudden, doesn't it. But I was coming from

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Speaker 2: the Midwest, where I sold my house for two eighty five, right,

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Speaker 2: So all of a sudden, I'm seeing a house that

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Speaker 2: was smaller than one I just sold. It's more than

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Speaker 2: double the price. But now median value is over a

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Speaker 2: million dollars. But my mind is anchored. Thirteen years ago

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Speaker 2: at five fifty or six, says price anchoring.

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Speaker 4: I didn't know there was a term for that. So

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Speaker 4: all those times when my grandparents were telling me, you know,

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Speaker 4: we used to be able to buy a whole side

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Speaker 4: of beef for two bits, and I was like, they

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Speaker 4: don't measure money in bits anymore, Grandpa, price anchoring is

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Speaker 4: what that was called?

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Speaker 2: Price anchoring, Okay, although if they're using bits, it was

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Speaker 2: probably price anchoring.

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Speaker 11: Roy.

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Speaker 4: No, they weren't cockney.

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Speaker 3: I did not have cocky grandparents. Two bits, two bits

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Speaker 3: and sae. I hate to.

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Speaker 4: Break this to you, but I am not all over twist.

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Speaker 4: That's not my childhood. But thank you.

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Speaker 2: In this life, one thing counts in the bank, large amounts. Yeah,

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Speaker 2: I'm afraid these don't grow on trees. You've got to

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Speaker 2: pick a pocket talk, Tony. Hit the brake for God's sake,

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Speaker 2: not to pick up.

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Speaker 3: Pocket talk too.

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Speaker 12: Boys.

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Speaker 2: You've got to pick a pocket talk. O, My god,

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Speaker 2: what have I started? Your mortgage is actually eating you alive.

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Speaker 2: Experts are saying, though, don't panic, which is exactly what

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Speaker 2: they say right before you should pay. You're gonna find

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Speaker 2: out why you got to keep the panic button at

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Speaker 2: least close. Next Chris Merrill, I am six forty Live

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Speaker 2: Everywhere on the iHeartRadio app More.

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Speaker 3: Don't nobody asks for more?

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Speaker 1: You're listening to KFI AM sixty on demand.

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Speaker 2: Richie's producing today, and he and I are just talking

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Speaker 2: during the break, and he's laughing about my mother in law.

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Speaker 3: Out like that, out like that.

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Speaker 2: Oh, my mother in law is amazing in small doses.

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Speaker 2: I really I got lucky with my mother in law.

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Speaker 2: She's great, but she is nuts, and so we're just

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Speaker 2: sharing some stories about her. So my mother in law

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Speaker 2: wants accidentally trafficked people, she wants accidentally robbed the bank.

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Speaker 2: She wants accidentally drowned someone. She wants let me think. Oh,

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Speaker 2: she doesn't like pain medication because she's convinced she's gonna

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Speaker 2: be addicted. She's never she's never had any reason to

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Speaker 2: think that. But she won't even take tiland all. So

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Speaker 2: she sits in a dark room and she has a headache.

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Speaker 2: You might be in the house.

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Speaker 3: You know.

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Speaker 2: She lives with my sister in law, So we'll visit

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Speaker 2: my sister in law. Hey, where's uh where's Verda? And

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Speaker 2: they go, oh, she's not feeling well, she's in the

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Speaker 2: other room.

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Speaker 3: Then you just hear h.

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Speaker 13: Oh, Verda, Okay, yeah, I'm fine.

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Speaker 3: Is that what she sounds like out like that?

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Speaker 4: Yeah, you kind of sound like a Southern version of

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Speaker 4: mister Hanky, the Christmas poof from Second Well.

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Speaker 2: She's from Uh, she's from a very small town. She

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Speaker 2: grew up in one of those like one room houses

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Speaker 2: you know, in uh, in the forties, in very rural

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Speaker 2: southern Illinois.

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Speaker 3: So she got basically Kentucky. So she's got I don't like.

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Speaker 11: Oh.

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Speaker 3: Oh, she broke her leg.

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Speaker 2: One time she was at she was at some like

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Speaker 2: a touristy type train thing right where they like take

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Speaker 2: you around a little park. And so she's there with

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Speaker 2: one of her friends and all of her friends that

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Speaker 2: have all these different medical maladies, and our friend was

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Speaker 2: having trouble getting on or off the train. So my

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Speaker 2: mother in law was helping this friend, and she stepped

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Speaker 2: backward and stepped between the train and the platform, which

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Speaker 2: is it's got a big yellow stripe on it, right, Yeah,

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Speaker 2: not recommended, no, So she stepped back and she she

403
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Speaker 2: broke her leg. Really, Uh, it was a bad break,

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Speaker 2: you know, bone sticking out of that kind of thing.

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Speaker 2: So oh, you know, uh, and we're oh my gosh,

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Speaker 2: you okay, so you know, we all rush and we're out.

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Speaker 3: Visiting her at my sister in laws. Are you okay?

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Speaker 2: She's sitting there with her leg up and she's got

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Speaker 2: one of those giant contraptions with the pins sticking out,

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Speaker 2: you know, so her legs stays straight.

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Speaker 3: Oh yeah, yeah, those are festive. Yeah. So she's lying

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Speaker 3: there on the couch, verna. What do you do it hurts? Well?

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Speaker 2: Here, take something the doctor gave you. I ain't taking that, why,

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Speaker 2: I don't want to get addicted. Okay, yeah, but she's

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Speaker 2: the one suffering.

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Speaker 3: What am I gonna do? Make her do it? But

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Speaker 3: then we all suffer too, Oh all night long? You know.

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Speaker 4: The more you do that, the more I think that

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Speaker 4: make a killer ring tone.

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Speaker 2: I kind of want that now. Very good, very good.

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Speaker 2: She's uh. I have so many stories about her. She's fantastic,

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Speaker 2: she's she's just a nut. At some point, I'll tell

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Speaker 2: you about how she accidentally became a human trafficker, or

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Speaker 2: accidentally robbed a bank and didn't know she was a

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Speaker 2: bank robber until she saw on the news that her

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Speaker 2: husband was wanted in the bank robbery. Well, don't be

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Speaker 2: a tease, okay. So she's at home with her friends

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Speaker 2: and she's very, very social. She's always had friends, and

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Speaker 2: so she's at home with her friends and and she

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Speaker 2: doesn't know where her husband is. He hasn't come come back.

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Speaker 2: This is before she met my my wife's father. So

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Speaker 2: she doesn't know where the husband is. And her friend's

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Speaker 2: there and they got the TV on. One thing about

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Speaker 2: my mother in law, she's always got the TV on,

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Speaker 2: always always.

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Speaker 3: Uh.

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Speaker 2: So she got the TV on and they're talking about

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Speaker 2: authorities are looking for this. You know, a bank was

439
00:22:33,640 --> 00:22:37,280
Speaker 2: robbed in whatever this city was. Authorities are looking for suspects.

440
00:22:37,280 --> 00:22:41,280
Speaker 2: They say fled in a maroon station wagon and this

441
00:22:41,320 --> 00:22:45,840
Speaker 2: was in the seventies, and they said the police had

442
00:22:45,880 --> 00:22:50,560
Speaker 2: like a sketch or something. And her friend goes, Verda,

443
00:22:51,040 --> 00:22:54,840
Speaker 2: that's your husband. She goes, no, it ain't. She says,

444
00:22:55,160 --> 00:22:57,680
Speaker 2: yeah it is. You don't know where he is. She goes, well,

445
00:22:58,520 --> 00:23:00,359
Speaker 2: I don't know what. He wanted me to take him

446
00:23:00,359 --> 00:23:01,840
Speaker 2: to the bank. So I took him to the bank.

447
00:23:01,920 --> 00:23:03,400
Speaker 2: He told me to wait in the car and he'd

448
00:23:03,400 --> 00:23:05,520
Speaker 2: be right out. So him and his buddy go in

449
00:23:05,560 --> 00:23:07,160
Speaker 2: there and then they come out and they said, well,

450
00:23:07,160 --> 00:23:08,840
Speaker 2: get us out of here. So I drove him off

451
00:23:08,840 --> 00:23:13,560
Speaker 2: and dropped him off at his buddy's house. You realize

452
00:23:13,600 --> 00:23:15,200
Speaker 2: you drove the getaway car, right.

453
00:23:16,440 --> 00:23:18,200
Speaker 4: Yeah, When they tell you to keep the engine running,

454
00:23:18,240 --> 00:23:20,600
Speaker 4: that's a warning, that's a little little red flag.

455
00:23:23,240 --> 00:23:25,040
Speaker 2: She's like, no, I didn't, and so we give her,

456
00:23:25,080 --> 00:23:26,560
Speaker 2: We give her a grieful with that like a verna.

457
00:23:26,640 --> 00:23:29,520
Speaker 3: Remember when he robbed a bank, No I didn't. No,

458
00:23:29,760 --> 00:23:32,639
Speaker 3: I didn't rob no bank. I didn't do that. My

459
00:23:32,800 --> 00:23:35,800
Speaker 3: husband did. He got caught for it and he went

460
00:23:35,840 --> 00:23:39,000
Speaker 3: to prison for it. She divorced him. She drove the

461
00:23:39,000 --> 00:23:41,000
Speaker 3: getaway car, still says, no, I didn't.

462
00:23:41,040 --> 00:23:42,760
Speaker 2: He just told me to turn it around and be

463
00:23:42,840 --> 00:23:44,960
Speaker 2: ready for him when he come out. He was an hurry.

464
00:23:45,520 --> 00:23:49,280
Speaker 2: Took him over to his friend's house. You drove the

465
00:23:49,320 --> 00:23:52,480
Speaker 2: getaway car in the bank robbery. It was just a withdrawal.

466
00:23:52,800 --> 00:23:58,119
Speaker 3: Oh my gosh. Yeah, Now she's nuts. She is nuts.

467
00:23:59,080 --> 00:24:01,199
Speaker 2: I got the so many of these stories too. I

468
00:24:01,240 --> 00:24:03,320
Speaker 2: need to start writing them down because there's there's there's

469
00:24:03,359 --> 00:24:05,399
Speaker 2: those few that I just mentioned that that are always

470
00:24:05,400 --> 00:24:07,000
Speaker 2: at the top of my mind. But every time I'm

471
00:24:07,040 --> 00:24:11,679
Speaker 2: around there's another one. There's always it's just wild, just wild,

472
00:24:12,080 --> 00:24:13,960
Speaker 2: just terrified of water. So when she saw a body

473
00:24:14,000 --> 00:24:15,280
Speaker 2: floating in the water, she was.

474
00:24:15,240 --> 00:24:18,399
Speaker 3: Like, I ain't getting it. Between that and kyl and

475
00:24:18,400 --> 00:24:19,240
Speaker 3: all she.

476
00:24:19,359 --> 00:24:21,880
Speaker 2: Found a body in the water, it was like, did

477
00:24:21,920 --> 00:24:23,959
Speaker 2: you check to see if they like had a pulse.

478
00:24:24,080 --> 00:24:26,920
Speaker 3: She goes, No, I ain't getting in there. I'm fred water.

479
00:24:28,760 --> 00:24:30,720
Speaker 2: They may have you may have been able to save

480
00:24:30,840 --> 00:24:31,840
Speaker 2: somebody from drowning.

481
00:24:31,880 --> 00:24:35,040
Speaker 3: She goes, I don't. I ain't going in there.

482
00:24:35,119 --> 00:24:37,160
Speaker 2: You know, weigh that against getting your hair wet. If

483
00:24:37,160 --> 00:24:39,800
Speaker 2: that was it. The map is in there, I don't

484
00:24:39,880 --> 00:24:44,520
Speaker 2: like that water. I ain't going in Okay, nuts, nuts,

485
00:24:44,960 --> 00:24:46,880
Speaker 2: all right, I tech I told you I would tell

486
00:24:46,920 --> 00:24:49,640
Speaker 2: you about a great time to be foreclosed on. Indeed

487
00:24:49,800 --> 00:24:53,560
Speaker 2: it is. I don't like being fore closed down. But

488
00:24:54,520 --> 00:24:56,080
Speaker 2: there may be a place that you don't have to

489
00:24:56,080 --> 00:24:59,280
Speaker 2: get foreclosed on. You can just buy up all the foreclosures.

490
00:24:59,400 --> 00:25:01,080
Speaker 3: You could be. You could be a.

491
00:25:00,960 --> 00:25:03,320
Speaker 2: Slumlord in no time. I'll tell you where next time,

492
00:25:03,400 --> 00:25:04,280
Speaker 2: Chris Merril.

493
00:25:04,119 --> 00:25:07,480
Speaker 1: You're listening to KFI A six on demand.

494
00:25:07,760 --> 00:25:11,119
Speaker 2: Poor Richie is being regaled with more Verda stories. She's nuts.

495
00:25:11,680 --> 00:25:15,280
Speaker 2: My mother in law is absolutely not. She is a riot.

496
00:25:15,480 --> 00:25:19,840
Speaker 2: But yeah, you just I can't look.

497
00:25:20,920 --> 00:25:21,240
Speaker 3: I can do.

498
00:25:21,359 --> 00:25:23,000
Speaker 2: I can do a week's worth of shows just on

499
00:25:23,320 --> 00:25:25,280
Speaker 2: stories of my mother in law. But let me just

500
00:25:25,280 --> 00:25:27,879
Speaker 2: trickle them in there. Okay, I'll just periodically drop you

501
00:25:27,960 --> 00:25:33,760
Speaker 2: stories about crazy Verta who almost pooped in my car.

502
00:25:35,840 --> 00:25:37,479
Speaker 3: She's crazy, She just nuts.

503
00:25:38,520 --> 00:25:42,400
Speaker 2: I did tell you that, I tell you about foreclosures

504
00:25:42,400 --> 00:25:44,320
Speaker 2: are on the way up. Oh, that's not a great sign.

505
00:25:44,800 --> 00:25:50,600
Speaker 2: Foreclosers are upskis and what does that mean? It means

506
00:25:50,640 --> 00:25:55,360
Speaker 2: that the economy is starting to show some signs. However,

507
00:25:55,480 --> 00:25:57,760
Speaker 2: experts are not exactly freaking out right now. If I

508
00:25:57,880 --> 00:26:01,560
Speaker 2: told you that foreclosures nation wide we're up nearly twenty percent,

509
00:26:01,600 --> 00:26:05,280
Speaker 2: you'd go, uh, oh, that's not good, except that everything

510
00:26:05,359 --> 00:26:08,959
Speaker 2: is relative. What do they say, Liars figure and figures lie.

511
00:26:10,160 --> 00:26:13,879
Speaker 2: So the figures are factual. It's just that you have

512
00:26:13,920 --> 00:26:18,960
Speaker 2: to have context. Foreclosures were weighed down, and so the

513
00:26:18,960 --> 00:26:21,640
Speaker 2: fact that they're up twenty percent still means that nationally,

514
00:26:21,680 --> 00:26:26,360
Speaker 2: foreclosures are below where they were pre pandemic. It's not

515
00:26:26,400 --> 00:26:29,639
Speaker 2: actually a terrible situation. Still, they are coming.

516
00:26:29,440 --> 00:26:32,440
Speaker 12: Up as more homeowners in the US struggled to keep

517
00:26:32,520 --> 00:26:35,560
Speaker 12: up with mortgage payments and maintenance costs. New data shows

518
00:26:35,560 --> 00:26:39,919
Speaker 12: the number of property foreclosures is steadily rising. According to

519
00:26:40,040 --> 00:26:41,040
Speaker 12: property data.

520
00:26:40,800 --> 00:26:42,680
Speaker 3: From I Think I just said that from ADAM.

521
00:26:42,440 --> 00:26:46,680
Speaker 12: Foreclosure filings rose for six months straight year over year,

522
00:26:47,080 --> 00:26:49,679
Speaker 12: and as of August the number of FLO foreclosures that

523
00:26:49,800 --> 00:26:52,920
Speaker 12: was up eighteen percent from the same time last year.

524
00:26:53,200 --> 00:26:56,240
Speaker 12: Those numbers put the US on track to surpass the

525
00:26:56,440 --> 00:27:00,520
Speaker 12: roughly three hundred and twenty two thousand total properties that

526
00:27:00,600 --> 00:27:02,560
Speaker 12: went into foreclosure last year.

527
00:27:03,200 --> 00:27:04,440
Speaker 3: Right, but that's down.

528
00:27:04,840 --> 00:27:07,520
Speaker 12: CBS News contributor Hobby ardv joined the study. Is also

529
00:27:07,560 --> 00:27:08,679
Speaker 12: a business editor.

530
00:27:08,400 --> 00:27:10,640
Speaker 3: For Skip A d to where Hoavier starts talking about things.

531
00:27:10,720 --> 00:27:13,199
Speaker 11: Honestly, it's not just one thing or the other, but

532
00:27:13,240 --> 00:27:16,280
Speaker 11: one big reason inflation. It's a stealth tax on everything

533
00:27:16,359 --> 00:27:19,520
Speaker 11: and when prices rise, and it evitably triggers a bunch

534
00:27:19,560 --> 00:27:22,080
Speaker 11: of series of trade offs, especially for the working in

535
00:27:22,160 --> 00:27:24,720
Speaker 11: middle class. And because housing is more than just one

536
00:27:24,720 --> 00:27:28,160
Speaker 11: monthly payment, there's all sorts of costs associated with home ownership.

537
00:27:28,280 --> 00:27:31,640
Speaker 11: The things you can't control, plumbing, maintenance, storm damage.

538
00:27:31,440 --> 00:27:35,600
Speaker 3: Great points, all of those things. Everything has gone up insurance.

539
00:27:35,640 --> 00:27:36,640
Speaker 11: That's a really big.

540
00:27:36,440 --> 00:27:40,280
Speaker 2: Cost, especially here. Oh did you see I think I

541
00:27:40,280 --> 00:27:43,080
Speaker 2: got the story. They just basically said that they're going

542
00:27:43,119 --> 00:27:45,800
Speaker 2: to raise insurance rates for everybody to pay for the wildfires.

543
00:27:46,520 --> 00:27:48,840
Speaker 2: So if you weren't a fact, it doesn't matter. Everybody's

544
00:27:48,880 --> 00:27:55,480
Speaker 2: going to get hosed. Yeah, I had the story somewhere here.

545
00:27:56,880 --> 00:28:00,240
Speaker 2: Yeah I lost it. Anyway, everybody, everybody's gonna get screwed

546
00:28:00,320 --> 00:28:03,480
Speaker 2: by the by the wildfires and any other natural disaster.

547
00:28:03,480 --> 00:28:06,520
Speaker 3: We're all just gonna get hosed. All of that redistribution

548
00:28:06,600 --> 00:28:07,000
Speaker 3: of pain.

549
00:28:07,359 --> 00:28:09,159
Speaker 11: It costs money in an aero of high inflation. It

550
00:28:09,280 --> 00:28:12,080
Speaker 11: just costs more than it used to. So, for example,

551
00:28:12,240 --> 00:28:16,159
Speaker 11: there's a Stata statistic that single family homeowners with a

552
00:28:16,240 --> 00:28:19,479
Speaker 11: mortgage today pay on average nearly twenty four hundred dollars

553
00:28:19,560 --> 00:28:23,160
Speaker 11: more a year for property coverage, nearly seventy percent from

554
00:28:23,160 --> 00:28:23,920
Speaker 11: five years ago.

555
00:28:24,359 --> 00:28:25,600
Speaker 3: Yeah, and even higher here.

556
00:28:26,640 --> 00:28:28,159
Speaker 2: And if you're in if you're in one of the

557
00:28:28,160 --> 00:28:31,639
Speaker 2: canyons or one of the high risk areas, if you

558
00:28:31,640 --> 00:28:33,520
Speaker 2: can even get it. I mean, I've talked to people

559
00:28:33,560 --> 00:28:37,040
Speaker 2: that think our our insurance quotes are ten thousand dollars

560
00:28:37,119 --> 00:28:37,480
Speaker 2: a year.

561
00:28:38,560 --> 00:28:40,240
Speaker 1: I mean, who could do that.

562
00:28:40,240 --> 00:28:42,280
Speaker 12: That's a huge difference for people's budgets.

563
00:28:42,440 --> 00:28:44,080
Speaker 3: What thank you, captain obvious.

564
00:28:44,160 --> 00:28:46,720
Speaker 12: What are the options that people have if they're struggling

565
00:28:46,720 --> 00:28:48,520
Speaker 12: to keep up with these payments?

566
00:28:48,800 --> 00:28:51,920
Speaker 3: You could start selling sperm.

567
00:28:52,320 --> 00:28:55,160
Speaker 11: Yeah, they're a slew of you know, I'm believing or not.

568
00:28:55,280 --> 00:28:57,640
Speaker 11: The government, which of course is now shut down, as

569
00:28:57,680 --> 00:28:59,920
Speaker 11: a number of foreclosure assistance programs to help.

570
00:29:00,600 --> 00:29:03,520
Speaker 2: But again, as you pointed out, it's shut down, so

571
00:29:03,840 --> 00:29:05,160
Speaker 2: good luck getting that application in.

572
00:29:05,440 --> 00:29:08,960
Speaker 11: HUT and FHA have loss mitigation programs. It's designed to

573
00:29:08,960 --> 00:29:13,120
Speaker 11: ease financial hardships shut down. Cities and states also have

574
00:29:13,200 --> 00:29:17,320
Speaker 11: their own sort of programs. California We're Broke, nonprofit counseling

575
00:29:17,360 --> 00:29:19,720
Speaker 11: that will help cash strap borrows. And a lot of

576
00:29:19,760 --> 00:29:22,080
Speaker 11: people will certain time to go into hiding whenever they

577
00:29:22,480 --> 00:29:25,560
Speaker 11: owe money, and that's not a good idea because when

578
00:29:25,560 --> 00:29:28,000
Speaker 11: you're behind, you can contact your bank or your mortgage

579
00:29:28,080 --> 00:29:31,040
Speaker 11: issued directly because they have their own sort of forgiveness

580
00:29:31,040 --> 00:29:33,600
Speaker 11: and grace programs to address some of these hardship cases.

581
00:29:33,640 --> 00:29:35,719
Speaker 11: And even if it's just temporary.

582
00:29:35,560 --> 00:29:41,200
Speaker 2: All right, so that but if you are not facing

583
00:29:41,200 --> 00:29:45,320
Speaker 2: the hardship, might be a good time to buy well,

584
00:29:45,360 --> 00:29:46,880
Speaker 2: not a great time, but it's getting up to be.

585
00:29:46,840 --> 00:29:47,400
Speaker 3: A better time.

586
00:29:47,440 --> 00:29:50,240
Speaker 2: I see that in Orange County, forty two percent of

587
00:29:50,320 --> 00:29:54,440
Speaker 2: home prices that were for sale in Orange County they

588
00:29:55,080 --> 00:29:58,160
Speaker 2: came down. Home price is falling forty two percent of

589
00:29:58,160 --> 00:30:01,440
Speaker 2: OC in August. This is from Johnathan Landsner from the

590
00:30:01,480 --> 00:30:05,680
Speaker 2: OC Register. So sales were up in thirty eight zip codes,

591
00:30:05,720 --> 00:30:08,400
Speaker 2: sales were down in forty four zip codes Flatten four,

592
00:30:08,600 --> 00:30:11,960
Speaker 2: and home prices coming down in nearly half of the

593
00:30:12,000 --> 00:30:15,040
Speaker 2: Orange County place, which means if you extrapolate that out,

594
00:30:15,040 --> 00:30:15,960
Speaker 2: we're probably gonna start.

595
00:30:15,840 --> 00:30:18,800
Speaker 3: Seeing some home prices that are at least leveling off.

596
00:30:20,160 --> 00:30:25,640
Speaker 2: Shortly, hopefully for those of us that don't own right now,

597
00:30:26,800 --> 00:30:28,760
Speaker 2: I'm just kind of hoping that the bottom falls out.

598
00:30:29,200 --> 00:30:32,000
Speaker 2: I mean, perfect situation for me would be if I

599
00:30:32,080 --> 00:30:33,960
Speaker 2: had a job and then the bottom fell out of

600
00:30:34,000 --> 00:30:35,880
Speaker 2: the market and then everything went back to being what

601
00:30:35,920 --> 00:30:39,720
Speaker 2: it was fifteen years ago. Unfortunately, I don't think I

602
00:30:39,760 --> 00:30:42,360
Speaker 2: get all three of those things without at least everyone

603
00:30:42,400 --> 00:30:45,360
Speaker 2: around me having incredible pain. And I don't want you

604
00:30:45,400 --> 00:30:46,880
Speaker 2: to have to suffer just because I want to buy

605
00:30:46,920 --> 00:30:52,200
Speaker 2: a house. But I mean, if you know, if it happens,

606
00:30:52,280 --> 00:30:54,320
Speaker 2: what am I gonna do sit it out. Mortgage rates

607
00:30:54,320 --> 00:30:58,160
Speaker 2: are down thirty or mortgage rate is at the six

608
00:30:58,200 --> 00:31:00,160
Speaker 2: point two seven percent last I saw it. I know

609
00:31:00,160 --> 00:31:02,040
Speaker 2: they fluctuate a little bit day by day, but I

610
00:31:02,080 --> 00:31:06,000
Speaker 2: was seeing, you know, around six y three, and you

611
00:31:06,040 --> 00:31:08,360
Speaker 2: would think that with the mortgage rates coming down, that

612
00:31:08,360 --> 00:31:10,160
Speaker 2: that would spur people to start buying more.

613
00:31:10,200 --> 00:31:10,600
Speaker 3: But they're not.

614
00:31:11,320 --> 00:31:14,600
Speaker 2: They're still not. The housing market is. We're kind of

615
00:31:14,640 --> 00:31:17,360
Speaker 2: sitting back and we're waiting. We're waiting for them to

616
00:31:17,400 --> 00:31:20,680
Speaker 2: come back and and hit a lower rate because of

617
00:31:20,680 --> 00:31:23,880
Speaker 2: that term that we talked about earlier.

618
00:31:23,560 --> 00:31:25,840
Speaker 3: This hour price anchoring.

619
00:31:27,080 --> 00:31:30,920
Speaker 2: So I want to see the mortgage rates come back

620
00:31:30,920 --> 00:31:34,040
Speaker 2: down below five because they were there for so long.

621
00:31:34,120 --> 00:31:36,440
Speaker 2: In my mind, that's where they should be, and anything

622
00:31:36,480 --> 00:31:40,880
Speaker 2: over that means I'm overpaying for my mortgage. So I'm

623
00:31:40,880 --> 00:31:42,640
Speaker 2: sitting on the sidelines. And I know a lot of

624
00:31:42,640 --> 00:31:44,520
Speaker 2: people say, no, no, no no. If you see the

625
00:31:44,560 --> 00:31:46,640
Speaker 2: house you want, you want to get that house in

626
00:31:46,720 --> 00:31:49,200
Speaker 2: the location because that's not going to change and you

627
00:31:49,240 --> 00:31:53,320
Speaker 2: can always refinance later. That's what a number of advisors say,

628
00:31:53,520 --> 00:31:57,960
Speaker 2: and that makes perfect sense to me. But psychologically, I'm

629
00:31:57,960 --> 00:32:00,880
Speaker 2: still anchored at that four and a half percent four

630
00:32:00,920 --> 00:32:04,600
Speaker 2: and a half percent, something under five, and I don't

631
00:32:04,600 --> 00:32:05,880
Speaker 2: want to feel like I'm overpaying. And I had a

632
00:32:05,880 --> 00:32:07,520
Speaker 2: buddy said, well, why don't you buy down points? And

633
00:32:07,560 --> 00:32:09,240
Speaker 2: I said, well, that's a great idea. I could buy

634
00:32:09,240 --> 00:32:11,560
Speaker 2: down points and that pays off after so many years.

635
00:32:11,800 --> 00:32:13,640
Speaker 2: Say I get a mortgage at at six three, and

636
00:32:13,640 --> 00:32:15,160
Speaker 2: I go, I want to buy some points down so

637
00:32:15,280 --> 00:32:17,400
Speaker 2: that my my mortgage rate is down there closer to

638
00:32:17,400 --> 00:32:19,440
Speaker 2: where I want it at that at that five range,

639
00:32:19,760 --> 00:32:23,240
Speaker 2: and maybe I put some more money up front. So

640
00:32:23,280 --> 00:32:26,240
Speaker 2: the problem is, in my mind, what happens if the

641
00:32:26,240 --> 00:32:29,160
Speaker 2: mortgage rate does come back down. Now I'm just paid

642
00:32:29,200 --> 00:32:31,520
Speaker 2: to buy down the mortgage rate. It naturally came down

643
00:32:31,520 --> 00:32:33,200
Speaker 2: on its own, and then I feel like I wasted

644
00:32:33,200 --> 00:32:39,320
Speaker 2: my money. Right, So, people like me, you're just sitting

645
00:32:39,320 --> 00:32:41,600
Speaker 2: on the sidelines waiting for things to come down even further.

646
00:32:43,440 --> 00:32:45,520
Speaker 2: And I don't know when that happens, especially if we

647
00:32:45,600 --> 00:32:47,920
Speaker 2: end up in a stagflation situation. I just don't know how.

648
00:32:48,160 --> 00:32:49,920
Speaker 2: I don't know where that balance is out. I don't

649
00:32:49,960 --> 00:32:56,840
Speaker 2: have any idea. Right, Uh, mark right up your alley here.

650
00:32:56,920 --> 00:32:59,280
Speaker 2: I want you to crack out some of your two

651
00:32:59,320 --> 00:33:01,080
Speaker 2: b expertise because it might be the only thing you're

652
00:33:01,080 --> 00:33:02,400
Speaker 2: going to be able to watch from now on.

653
00:33:02,680 --> 00:33:06,520
Speaker 3: Uh oh you. The FCC is floating the nuclear option.

654
00:33:06,600 --> 00:33:09,840
Speaker 2: They want to pull broadcast licenses over differences of opinion,

655
00:33:10,320 --> 00:33:12,520
Speaker 2: which means you're about to find out why KFI could

656
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Speaker 2: be in the crosshairs.

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Speaker 3: That's next.

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Speaker 2: I'm Chris merrilf I AM six forty. We're live everywhere

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Speaker 2: in the iHeartRadio

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Speaker 1: App, KFI AM six forty on demand