1 00:00:00,240 --> 00:00:02,880 Speaker 1: Not to follow in illegal order. Yeah, they know Clay 2 00:00:03,000 --> 00:00:07,320 Speaker 1: and Buck Today at noon point fifty five KRC the 3 00:00:07,720 --> 00:00:14,240 Speaker 1: talk station A six If if you have KRC the 4 00:00:14,360 --> 00:00:20,079 Speaker 1: talk station, stay home, says everybody. It's a bat out there. 5 00:00:20,079 --> 00:00:21,520 Speaker 1: So there's no reason to be on the road unless 6 00:00:21,520 --> 00:00:23,880 Speaker 1: there's a really important reason to be on the road. 7 00:00:24,000 --> 00:00:27,360 Speaker 1: Just please stay off if at all possible. Someone who's 8 00:00:27,400 --> 00:00:29,440 Speaker 1: on the phone, and I guess the markets are open 9 00:00:29,520 --> 00:00:31,960 Speaker 1: even though we got Snowmageddon going on. Welcome back from 10 00:00:31,960 --> 00:00:34,800 Speaker 1: all Worth Financial Brian James for another edition of Money Monday. 11 00:00:34,840 --> 00:00:36,520 Speaker 1: It's always great having you on my program. Brian. 12 00:00:36,560 --> 00:00:39,000 Speaker 2: Welcome, It's always great being here. Appreciate it. Yeah, the 13 00:00:39,040 --> 00:00:41,800 Speaker 2: market's open. Doesn't usually close for snow. 14 00:00:42,360 --> 00:00:43,600 Speaker 1: Has it ever closed for weather? 15 00:00:44,280 --> 00:00:46,720 Speaker 2: Not that I can recall. Maybe I'm trying to think 16 00:00:46,760 --> 00:00:49,400 Speaker 2: of a hurricane Sandy shut it down. I can't remember 17 00:00:50,360 --> 00:00:51,720 Speaker 2: nine to eleven that was a big thing. I do 18 00:00:51,800 --> 00:00:53,760 Speaker 2: remember kind of wondering that week what was going on, 19 00:00:53,800 --> 00:00:55,640 Speaker 2: But I don't I don't recall any weather closures in 20 00:00:55,680 --> 00:00:57,080 Speaker 2: my twenty nine years doing this. 21 00:00:57,120 --> 00:01:00,720 Speaker 1: Fair enough and off to the race's guard. What the impacts? 22 00:01:00,800 --> 00:01:02,760 Speaker 1: I mean, I'm looking at the market this morning. So 23 00:01:03,440 --> 00:01:08,440 Speaker 1: the whole shooting in Minneapolis apparently no impact on Wall Street. 24 00:01:08,480 --> 00:01:12,640 Speaker 1: Futures are about flat and just a little tiny down 25 00:01:12,800 --> 00:01:15,199 Speaker 1: for the S and P five hundred, like point zero seven, 26 00:01:15,360 --> 00:01:17,080 Speaker 1: he says, I'm staring at it now right now, Dow 27 00:01:17,200 --> 00:01:21,080 Speaker 1: up point zero one, so zero impact. What does it 28 00:01:21,120 --> 00:01:23,319 Speaker 1: take to really impact the market these days? I mean, 29 00:01:23,360 --> 00:01:25,800 Speaker 1: the whole idea of Trump taking over Greenland didn't seem 30 00:01:25,840 --> 00:01:28,720 Speaker 1: to really do anything. He announced one hundred percent tariffs 31 00:01:28,720 --> 00:01:32,080 Speaker 1: on Canada the other day, I mean that hasn't registered apparently, 32 00:01:32,120 --> 00:01:35,440 Speaker 1: and Davos and his energy policy and his standing in 33 00:01:35,560 --> 00:01:39,440 Speaker 1: defiance to the world leaders, that apparently had no ripple effect. Like, so, 34 00:01:39,440 --> 00:01:43,480 Speaker 1: I'm wondering what it takes to actually impact the market. 35 00:01:43,520 --> 00:01:47,000 Speaker 2: Brian, Generally, I would I would point out the tariffs, 36 00:01:47,000 --> 00:01:50,440 Speaker 2: because no, the Canadian tariff threat over because that that's 37 00:01:50,520 --> 00:01:52,160 Speaker 2: not real yet. Right over the weekend, that didn't have 38 00:01:52,200 --> 00:01:54,360 Speaker 2: an impact. However, a week and a half ago or so, 39 00:01:54,520 --> 00:01:57,600 Speaker 2: we did have a tariff threat and that did take 40 00:01:57,640 --> 00:02:00,000 Speaker 2: the markets down for a day, right we put it 41 00:02:00,120 --> 00:02:02,360 Speaker 2: right back. And then you go back to April when 42 00:02:02,880 --> 00:02:05,520 Speaker 2: this round of tariffing really really kicked in and the 43 00:02:05,520 --> 00:02:08,920 Speaker 2: market went down almost twenty percent, so the tariffs do so, 44 00:02:08,960 --> 00:02:11,840 Speaker 2: I would say it is it's when the news results 45 00:02:11,880 --> 00:02:15,160 Speaker 2: in a calculable impact of profits. There's an awful lot 46 00:02:15,200 --> 00:02:18,120 Speaker 2: going on out there that I hate to boil it 47 00:02:18,160 --> 00:02:19,839 Speaker 2: down to just are we making money or not. There's 48 00:02:19,840 --> 00:02:21,280 Speaker 2: so much going on out there, and we're just not 49 00:02:21,360 --> 00:02:23,240 Speaker 2: in a great spot on a lot of levels at 50 00:02:23,280 --> 00:02:26,240 Speaker 2: the moment. But to answer the question specifically, if you 51 00:02:26,280 --> 00:02:29,880 Speaker 2: can't calculate the impact on dollars flowing in and out, 52 00:02:29,960 --> 00:02:32,040 Speaker 2: then it's probably not going to have an immediate impact 53 00:02:32,040 --> 00:02:33,200 Speaker 2: on the market's overall. All. 54 00:02:33,280 --> 00:02:35,679 Speaker 1: Right, Well, currently penning before the Supreme Court, and it 55 00:02:35,720 --> 00:02:37,320 Speaker 1: doesn't look like we're going to get a respond or 56 00:02:37,440 --> 00:02:40,280 Speaker 1: an answer very quickly. It's given that they're I guess 57 00:02:40,280 --> 00:02:43,320 Speaker 1: they're on a four week recess or something thereabouts. Right now, 58 00:02:43,680 --> 00:02:46,359 Speaker 1: the Supreme Court's going to rule on Trump's terriff actions, 59 00:02:46,400 --> 00:02:50,760 Speaker 1: and most observers of things Supreme Court are suggesting that 60 00:02:51,240 --> 00:02:55,320 Speaker 1: they may very well override his unilateral actions on tariffs. 61 00:02:55,360 --> 00:02:59,720 Speaker 1: I guess it would be complicated unwinding what's been done 62 00:03:00,080 --> 00:03:02,480 Speaker 1: so far, because say what you want about tariffs, he 63 00:03:02,560 --> 00:03:05,480 Speaker 1: was able to negotiate some pretty decent agreements with some 64 00:03:05,520 --> 00:03:09,320 Speaker 1: foreign nations because of the tariffs. Will all of that 65 00:03:09,360 --> 00:03:13,520 Speaker 1: be undone? Will the promised investments from so many countries 66 00:03:13,560 --> 00:03:16,440 Speaker 1: and the trillions of dollars that apparently have been committed, 67 00:03:16,880 --> 00:03:19,160 Speaker 1: will that be Will the plug be pulled on that? 68 00:03:19,240 --> 00:03:21,320 Speaker 1: And that seems to me that would have a profound 69 00:03:21,760 --> 00:03:22,720 Speaker 1: impact on the market. 70 00:03:23,120 --> 00:03:26,160 Speaker 2: Well yeah, because again to my earlier point, that would 71 00:03:26,160 --> 00:03:28,240 Speaker 2: involve I mean, if we're gonna unwind these tariffs, well, 72 00:03:28,280 --> 00:03:30,360 Speaker 2: guess what the people who paid them have to have 73 00:03:30,440 --> 00:03:32,119 Speaker 2: to go back. Now. Now, what I'm what I'm really 74 00:03:32,160 --> 00:03:33,960 Speaker 2: curious about is how are we going to unwind this 75 00:03:34,040 --> 00:03:36,040 Speaker 2: without If we have to do this right, We're not 76 00:03:36,120 --> 00:03:38,960 Speaker 2: in nowhere near to do with the the the way 77 00:03:39,000 --> 00:03:41,240 Speaker 2: you kick this off, the Supreme Court punted, it's probably 78 00:03:41,280 --> 00:03:43,640 Speaker 2: gonna be February before they talk about it again. So 79 00:03:43,760 --> 00:03:46,000 Speaker 2: it's not sew any panic right now. But at the 80 00:03:46,080 --> 00:03:48,480 Speaker 2: end of the day, if it does need to be unwound, 81 00:03:48,960 --> 00:03:51,640 Speaker 2: well then I supposedly we would be writing checks back 82 00:03:51,680 --> 00:03:54,200 Speaker 2: to the countries that paid these tariffs, and I cannot 83 00:03:54,240 --> 00:03:55,800 Speaker 2: imagine there's not going to be a big hue and 84 00:03:55,840 --> 00:03:58,360 Speaker 2: cry from from consumers here in the United States saying, hey, 85 00:03:58,400 --> 00:04:01,360 Speaker 2: prices went up immediately after these tariffs went in place 86 00:04:01,360 --> 00:04:03,120 Speaker 2: on a lot of different things. So these countries didn't 87 00:04:03,120 --> 00:04:04,760 Speaker 2: pay it, We're going to be writing them checks for 88 00:04:04,800 --> 00:04:07,720 Speaker 2: absolutely no reason, which would literally be the opposite of 89 00:04:07,760 --> 00:04:09,120 Speaker 2: the intent of the tariffs. 90 00:04:09,360 --> 00:04:12,119 Speaker 1: Well, I guess you know that raises another question which 91 00:04:12,120 --> 00:04:14,720 Speaker 1: I haven't really been quite able to figure out. Brian James, 92 00:04:14,720 --> 00:04:17,400 Speaker 1: maybe you can answer it. Where did all this tariff 93 00:04:17,400 --> 00:04:19,880 Speaker 1: money go? It clearly had not gone to pay down 94 00:04:19,920 --> 00:04:23,440 Speaker 1: the national debt, which is still rising as we speak. 95 00:04:23,680 --> 00:04:27,080 Speaker 2: I can't remember the last administration that really cared about 96 00:04:27,080 --> 00:04:29,880 Speaker 2: the national debt and barely even mentioned it, you know, 97 00:04:29,960 --> 00:04:33,120 Speaker 2: in the campaign periods too. So it goes into the 98 00:04:33,160 --> 00:04:35,240 Speaker 2: general fund, and this is something I've looked up before 99 00:04:35,480 --> 00:04:37,640 Speaker 2: the decision, is that it goes into the general fund, 100 00:04:37,680 --> 00:04:40,279 Speaker 2: which is sort of means that it kind of supports 101 00:04:40,279 --> 00:04:42,200 Speaker 2: everything we do, but it also sort of means that 102 00:04:42,200 --> 00:04:44,479 Speaker 2: it's not assigned to anything. To your point, and we've 103 00:04:44,480 --> 00:04:46,800 Speaker 2: done an awful lot of things to spend money that 104 00:04:46,880 --> 00:04:49,800 Speaker 2: really has nothing to do with, you know, with propping 105 00:04:49,880 --> 00:04:52,560 Speaker 2: up the American economy or paying down the debt or 106 00:04:52,600 --> 00:04:54,640 Speaker 2: anything like that there's a lot of money being spent 107 00:04:54,760 --> 00:04:59,560 Speaker 2: on things that really aren't related to the intent of 108 00:04:59,560 --> 00:05:01,279 Speaker 2: the tariff the way it was kind of laid out. 109 00:05:01,480 --> 00:05:05,440 Speaker 2: So the Supreme Court is debating whether the president has 110 00:05:05,480 --> 00:05:07,000 Speaker 2: the power to do this in the first place. There 111 00:05:07,040 --> 00:05:09,480 Speaker 2: are decisions in the past. There's one from eighteen ninety 112 00:05:09,480 --> 00:05:12,760 Speaker 2: two that holds that Congress, not the president alone, is 113 00:05:12,800 --> 00:05:14,880 Speaker 2: the only one that can delegate tariff authority. So that's 114 00:05:14,920 --> 00:05:18,320 Speaker 2: what the Supreme Court is looking at. Presidents could administer 115 00:05:18,400 --> 00:05:21,080 Speaker 2: tariffs under laws like the McKinley Tariff, and that was 116 00:05:21,279 --> 00:05:23,720 Speaker 2: There's also the smoot Hally Area, right, this is oh, 117 00:05:24,200 --> 00:05:26,640 Speaker 2: we have to remind everybody that they did see Ferris 118 00:05:26,680 --> 00:05:28,480 Speaker 2: Bueller's Day Off once and that's all we know about 119 00:05:28,480 --> 00:05:32,360 Speaker 2: the Smooth Holly Area era. But in those tariffs did 120 00:05:32,400 --> 00:05:34,640 Speaker 2: worse than the Great Depression, and so rules were put 121 00:05:34,680 --> 00:05:37,360 Speaker 2: in place that says that would say that you can't 122 00:05:37,440 --> 00:05:39,760 Speaker 2: do this this easily. Well, that's exactly what we've done 123 00:05:39,760 --> 00:05:41,720 Speaker 2: over the past twelve months. That's what the Supreme Court 124 00:05:41,760 --> 00:05:45,600 Speaker 2: is debating. I have a feeling the history, the history 125 00:05:45,720 --> 00:05:48,839 Speaker 2: and the precedents are fairly clear to the Supreme Court, 126 00:05:48,839 --> 00:05:50,279 Speaker 2: who relies a lot on two and andre and fifty 127 00:05:50,320 --> 00:05:52,679 Speaker 2: years worth of presidence. Oh yeah, but they're probably worried 128 00:05:52,720 --> 00:05:54,760 Speaker 2: about the impact of undoing it if they're going to 129 00:05:54,839 --> 00:05:56,000 Speaker 2: try to follow those presents. 130 00:05:56,080 --> 00:05:58,760 Speaker 1: Oh absolutely, that's I think it's at the heart of 131 00:05:58,800 --> 00:06:03,960 Speaker 1: the heart of the matter. And can you address, if possible, 132 00:06:04,480 --> 00:06:06,839 Speaker 1: on a fly? What's the story? And thank you Maureen 133 00:06:06,920 --> 00:06:08,480 Speaker 1: for reminding me of this is a great time to 134 00:06:08,520 --> 00:06:11,480 Speaker 1: ask money Monday's Brian James, what's the story with gold 135 00:06:11,520 --> 00:06:13,559 Speaker 1: and silver? I mean, we're looking at north of five 136 00:06:13,680 --> 00:06:17,640 Speaker 1: thousand dollars gold and north of basic one hundred and 137 00:06:17,640 --> 00:06:19,960 Speaker 1: ten dollars an ounce silver. We haven't seen prices like 138 00:06:20,000 --> 00:06:20,520 Speaker 1: this ever. 139 00:06:21,279 --> 00:06:25,279 Speaker 2: That's true, well, those types of assets, those speculative types 140 00:06:25,320 --> 00:06:28,440 Speaker 2: of commodities, right, because a commodity is just something that 141 00:06:28,600 --> 00:06:30,800 Speaker 2: is worth what the crowd says it is. That doesn't 142 00:06:30,800 --> 00:06:32,520 Speaker 2: mean it's a good or bad investment. But there's nothing 143 00:06:32,560 --> 00:06:35,920 Speaker 2: else driving it. It's just the crowd, the auction crowd, 144 00:06:35,960 --> 00:06:37,880 Speaker 2: wanting to buy more and wanting to sell one. That's 145 00:06:37,880 --> 00:06:40,760 Speaker 2: the only thing drives these prices. But you can't look 146 00:06:40,800 --> 00:06:43,479 Speaker 2: at gold and say, well, there's industrial demand for it. 147 00:06:43,480 --> 00:06:45,200 Speaker 2: All of a sudden they're putting it in cell phones 148 00:06:45,240 --> 00:06:47,000 Speaker 2: or anything like that, or silver or anything like that. 149 00:06:47,240 --> 00:06:50,400 Speaker 2: It's just the flight of money to save spaces. And 150 00:06:50,560 --> 00:06:54,080 Speaker 2: whenever there is there is concern about all these types 151 00:06:54,080 --> 00:06:56,200 Speaker 2: of things, that's where you'll see it happen. And so, yes, 152 00:06:56,240 --> 00:06:59,120 Speaker 2: gold has just surged past five thousand bucks, got to 153 00:06:59,160 --> 00:07:01,680 Speaker 2: about fifty one hundred, and that's been going on for 154 00:07:01,680 --> 00:07:04,320 Speaker 2: a while now. Silver is above one hundred dollars an ounce. 155 00:07:04,400 --> 00:07:08,040 Speaker 2: That's also a record. And the thing is, though, there 156 00:07:08,080 --> 00:07:10,080 Speaker 2: is a limited amount of people who are willing to 157 00:07:10,120 --> 00:07:13,920 Speaker 2: adjust their portfolios to this extreme, and there's a limited 158 00:07:13,960 --> 00:07:15,680 Speaker 2: amount of time that they're going to be willing to 159 00:07:15,680 --> 00:07:17,160 Speaker 2: do it. So it's like a flock of birds. You 160 00:07:17,200 --> 00:07:20,240 Speaker 2: can't look at earnings reports. You can't look at you know, 161 00:07:20,360 --> 00:07:23,720 Speaker 2: gold's forecast of what they think is coming, you know, 162 00:07:23,760 --> 00:07:25,840 Speaker 2: the next quarter, because there is none. It's worth nothing 163 00:07:25,840 --> 00:07:28,200 Speaker 2: more than what people say it is. And the herd 164 00:07:28,280 --> 00:07:30,119 Speaker 2: is going to stampede the other direction at some point. 165 00:07:30,400 --> 00:07:32,320 Speaker 2: So you know, there's nothing wrong with owning these types 166 00:07:32,360 --> 00:07:35,440 Speaker 2: of things, but be reasonable about it. Don't throw everything 167 00:07:35,480 --> 00:07:37,680 Speaker 2: at it just because the headlines are scary. There is 168 00:07:37,760 --> 00:07:41,520 Speaker 2: ample evidence over the past several decades of the time, 169 00:07:41,560 --> 00:07:43,520 Speaker 2: that is not a good idea to buy gold, and 170 00:07:43,560 --> 00:07:44,760 Speaker 2: that's when it makes a new high. 171 00:07:44,840 --> 00:07:47,440 Speaker 1: Well, and apparently you anticipated my next question. I was 172 00:07:47,480 --> 00:07:50,600 Speaker 1: going to ask you, are there any historic parallels with 173 00:07:50,680 --> 00:07:54,200 Speaker 1: the current spike we're seeing. I realize we've never seen 174 00:07:54,280 --> 00:07:57,160 Speaker 1: five thousand dollars plus goal, but have we ever seen 175 00:07:57,240 --> 00:07:59,760 Speaker 1: a jump and a spike like this over a period 176 00:07:59,800 --> 00:08:02,000 Speaker 1: of time. I'm only to fall back to what you 177 00:08:02,080 --> 00:08:06,040 Speaker 1: and I might consider normal or you know, back to normal. Uh. 178 00:08:06,120 --> 00:08:10,040 Speaker 2: Yeah, So there. Gold is usually consistently known as a 179 00:08:10,080 --> 00:08:13,040 Speaker 2: store of value whenever there's confidence in governments, you know, currencies, 180 00:08:13,080 --> 00:08:15,000 Speaker 2: those kinds of things, and it tends to perform best 181 00:08:15,040 --> 00:08:19,200 Speaker 2: when we've got high inflation, geopolitical conflict, financial system stress, 182 00:08:19,480 --> 00:08:21,960 Speaker 2: you know, loss of trust, and monetary fiscal policy, those 183 00:08:22,040 --> 00:08:25,800 Speaker 2: kinds of things. Well, guess what, that's what we have happened, right, yeah, 184 00:08:25,840 --> 00:08:29,000 Speaker 2: precisely what's going on? So some histories of this. So 185 00:08:29,080 --> 00:08:32,280 Speaker 2: in nineteen seventies we had inflation and policy chaos. This 186 00:08:32,400 --> 00:08:35,439 Speaker 2: was remember that the US abandoned the gold standard in 187 00:08:35,520 --> 00:08:39,080 Speaker 2: nineteen seventy one, So talk about question that drove inflation 188 00:08:39,200 --> 00:08:41,360 Speaker 2: and gold went from thirty five bucks an ounce to 189 00:08:41,400 --> 00:08:44,880 Speaker 2: over eight hundred by nineteen eighty and in the eighties 190 00:08:44,880 --> 00:08:47,079 Speaker 2: of the nineties it was weak. We had falling inflation. 191 00:08:47,160 --> 00:08:49,160 Speaker 2: This was the birth of the stock market as we 192 00:08:49,240 --> 00:08:51,319 Speaker 2: know it today, right, This was the first couple decades 193 00:08:51,440 --> 00:08:54,000 Speaker 2: where really nothing bad happened. Nineteen eighty seven no longer 194 00:08:54,080 --> 00:08:56,840 Speaker 2: counts Black Monday or whatever we called it. Then that's 195 00:08:56,880 --> 00:08:58,520 Speaker 2: just you can't even find that in a chart anymore. 196 00:08:58,640 --> 00:09:00,600 Speaker 2: But that was a period where gold was got weak 197 00:09:00,600 --> 00:09:04,079 Speaker 2: because investors looked toward other things. So if you believe 198 00:09:04,200 --> 00:09:07,000 Speaker 2: in what this administration is doing, if you believe in 199 00:09:07,040 --> 00:09:08,880 Speaker 2: these business deals that are being put in place, and 200 00:09:09,360 --> 00:09:14,040 Speaker 2: in the notion that a good business supporting administration is 201 00:09:14,080 --> 00:09:16,319 Speaker 2: good for the stock market, then don't fall asleep on 202 00:09:16,760 --> 00:09:19,960 Speaker 2: those types of investments just because in the shorter term 203 00:09:20,320 --> 00:09:21,880 Speaker 2: gold is getting a lot of attention. 204 00:09:22,080 --> 00:09:24,760 Speaker 1: We will continue with Brian James on this Money Monday. 205 00:09:24,800 --> 00:09:27,800 Speaker 1: Find out about interest rates. The Fed gonna pause the 206 00:09:27,840 --> 00:09:30,760 Speaker 1: lowering of interest rates, They're gonna raise them, They're gonna 207 00:09:30,800 --> 00:09:32,760 Speaker 1: remain static. Is Donald Trump gonna get his way? 208 00:09:32,760 --> 00:09:33,000 Speaker 2: More? 209 00:09:33,040 --> 00:09:34,800 Speaker 1: With Brian James stick around you right. 210 00:09:34,640 --> 00:09:38,719 Speaker 2: Back in the morning, we have Breaking News. 211 00:09:38,760 --> 00:09:41,600 Speaker 1: Eight eighteen, if you do have KROCD talk station, very 212 00:09:41,640 --> 00:09:44,439 Speaker 1: Happy Monday Tea doing that money Monday thing or financials 213 00:09:44,480 --> 00:09:47,640 Speaker 1: Brian James, who will strongly urge you to get a 214 00:09:47,640 --> 00:09:49,480 Speaker 1: financial planner sitting on the same side of the table 215 00:09:49,520 --> 00:09:52,120 Speaker 1: as you, someone who's charging a fee based upon your 216 00:09:52,280 --> 00:09:55,439 Speaker 1: account and its value. That encouraged them to increase the 217 00:09:55,520 --> 00:09:57,959 Speaker 1: value of that, which is a fiduciary obligation a financial 218 00:09:57,960 --> 00:10:01,240 Speaker 1: planner should have to you, James. 219 00:10:01,240 --> 00:10:04,840 Speaker 2: Yeah, pretty much. I think that's a pretty close assessment 220 00:10:04,840 --> 00:10:06,240 Speaker 2: of what it is. Really, what it means is I 221 00:10:06,280 --> 00:10:08,439 Speaker 2: got to understand what you need and so I can 222 00:10:08,600 --> 00:10:10,280 Speaker 2: justify what I do with your portfolio. 223 00:10:10,600 --> 00:10:12,520 Speaker 1: Well, it's worked out well for the Thomas family over 224 00:10:12,559 --> 00:10:14,480 Speaker 1: the years, So I strongly encourage someone to do the 225 00:10:14,520 --> 00:10:16,360 Speaker 1: exact same thing because I don't want to have to 226 00:10:16,400 --> 00:10:19,520 Speaker 1: pay attention to it and interest rate we do. Yeah, 227 00:10:19,559 --> 00:10:21,840 Speaker 1: I know that's your job. I mean I don't have 228 00:10:21,880 --> 00:10:25,120 Speaker 1: to deal with it interest rates obviously. You know, Donald 229 00:10:25,120 --> 00:10:26,960 Speaker 1: Trump in a war with the Fed. He wants the 230 00:10:26,960 --> 00:10:29,600 Speaker 1: interest rates low. This reminds me of the Carter administration 231 00:10:29,640 --> 00:10:33,240 Speaker 1: when we had stagflation and he bickered back and forth 232 00:10:33,280 --> 00:10:35,559 Speaker 1: with the pet FED chairman. He was on his knees. 233 00:10:35,600 --> 00:10:37,720 Speaker 1: Carter was begging him to lower the interest rates, which 234 00:10:37,760 --> 00:10:40,800 Speaker 1: were in the double digits back then, to no effect 235 00:10:41,720 --> 00:10:45,120 Speaker 1: because of the you know, the the inflation realities and 236 00:10:45,160 --> 00:10:48,760 Speaker 1: the employment reality Stagflation, I guess required high interest rates 237 00:10:48,760 --> 00:10:51,680 Speaker 1: to keep things in check. But fast forward to now 238 00:10:51,720 --> 00:10:53,880 Speaker 1: Donald Trump's looking at thirty three point five to three 239 00:10:53,880 --> 00:10:57,439 Speaker 1: point seventy five interest rate currently. But once I'm even lower, 240 00:10:57,559 --> 00:10:59,480 Speaker 1: what's the Fed going to actually do? They don't have 241 00:10:59,480 --> 00:11:02,080 Speaker 1: any oblo gation to listen to any president what he 242 00:11:02,160 --> 00:11:03,680 Speaker 1: or she desires, right. 243 00:11:04,040 --> 00:11:06,120 Speaker 2: They don't, except for you know, part of me feels 244 00:11:06,120 --> 00:11:08,440 Speaker 2: like Brian that there's there's this sort of weird, lame 245 00:11:08,559 --> 00:11:10,679 Speaker 2: duck period we've got with this FED chair because he 246 00:11:10,760 --> 00:11:13,080 Speaker 2: may he may hang around for the rest of his term, 247 00:11:13,520 --> 00:11:17,320 Speaker 2: he may not, depending on whatever the Trump administration can accomplish. 248 00:11:17,360 --> 00:11:20,120 Speaker 2: They would very much like him gone, even though Trump 249 00:11:20,160 --> 00:11:23,480 Speaker 2: is the one who kept him in during that whole transition. So, 250 00:11:23,720 --> 00:11:26,680 Speaker 2: you know, I feel like there's gonna be there's not 251 00:11:26,720 --> 00:11:28,199 Speaker 2: a whole lot of news coming out of this one 252 00:11:28,200 --> 00:11:30,719 Speaker 2: that the general consensus is that there's nothing coming out 253 00:11:30,760 --> 00:11:34,760 Speaker 2: of this upcoming meeting, simply because there's there's a there's 254 00:11:34,800 --> 00:11:38,000 Speaker 2: more descent among the Fed Committee than than anything else 255 00:11:38,080 --> 00:11:40,520 Speaker 2: right now, there's there was in the last meeting there 256 00:11:40,520 --> 00:11:43,839 Speaker 2: were two members who wanted no change, one was looking 257 00:11:43,840 --> 00:11:46,800 Speaker 2: for a half percent reduction, but anyway, a lot of 258 00:11:46,800 --> 00:11:49,560 Speaker 2: descents against another quarter point cut. So I think the 259 00:11:49,600 --> 00:11:52,120 Speaker 2: markets are gonna be paying much more attention to whether 260 00:11:52,240 --> 00:11:55,680 Speaker 2: Chair Powell is able to unite the committee as opposed 261 00:11:55,679 --> 00:11:59,200 Speaker 2: to actual rate changes. There's not really much change anticipated 262 00:11:59,200 --> 00:11:59,640 Speaker 2: for this one. 263 00:11:59,720 --> 00:12:02,320 Speaker 1: Well, doesn't that just sort of stay out loud that 264 00:12:02,400 --> 00:12:05,800 Speaker 1: this whole thing is alchemy. If you got all these 265 00:12:05,840 --> 00:12:08,840 Speaker 1: brilliant you know, FED chairs sitting in different parts of 266 00:12:08,840 --> 00:12:11,120 Speaker 1: the country and all coming up with different conclusions on 267 00:12:11,160 --> 00:12:13,559 Speaker 1: whether we think keep things status qull raise them or 268 00:12:13,600 --> 00:12:15,920 Speaker 1: lower them. They're all looking at the same data. How 269 00:12:15,920 --> 00:12:17,360 Speaker 1: do you come up with a different conclusion on that 270 00:12:17,440 --> 00:12:21,400 Speaker 1: unless there's different, you know, sort of economic methodologies to 271 00:12:21,480 --> 00:12:23,360 Speaker 1: look at it. Do we have a bunch of Keensians 272 00:12:23,400 --> 00:12:25,640 Speaker 1: out there mixed with a bunch of I don't know, 273 00:12:26,360 --> 00:12:32,960 Speaker 1: Chicago Schoolsians, Malethusians, Australian economy schools, or you know, Chicago 274 00:12:33,040 --> 00:12:35,680 Speaker 1: School of economics, Milton Friedman stuff. I mean, what is 275 00:12:35,720 --> 00:12:36,520 Speaker 1: the reality of that. 276 00:12:36,720 --> 00:12:38,839 Speaker 2: We just lost a third of our listeners. I think 277 00:12:38,880 --> 00:12:42,920 Speaker 2: I'm sorry now Now, of course, there are there are 278 00:12:43,240 --> 00:12:45,320 Speaker 2: different ways of thinking about this, and that's why we 279 00:12:45,360 --> 00:12:47,560 Speaker 2: have a chair. That's why, you know, that's why there 280 00:12:47,640 --> 00:12:49,959 Speaker 2: isn't a you know, a group think type decision. It's 281 00:12:49,960 --> 00:12:52,280 Speaker 2: the chair who makes the ultimate decision, you know, And 282 00:12:52,600 --> 00:12:54,880 Speaker 2: so that's the person who is sitting in that seat, 283 00:12:54,880 --> 00:12:57,800 Speaker 2: and that's the person Trump doesn't agree with. His his 284 00:12:57,920 --> 00:13:00,880 Speaker 2: background is a little bit different. Trump is a no 285 00:13:01,000 --> 00:13:04,160 Speaker 2: holds barred, all profits at all cost type of a leader, 286 00:13:04,200 --> 00:13:06,080 Speaker 2: and that's every decision that he makes. So he wants 287 00:13:06,080 --> 00:13:08,800 Speaker 2: the rates down yesterday. He wanted them down during the 288 00:13:08,840 --> 00:13:12,480 Speaker 2: campaign two years ago. So I think that part is 289 00:13:12,520 --> 00:13:15,400 Speaker 2: pretty clear. And that's that's why there is the battle 290 00:13:15,440 --> 00:13:18,920 Speaker 2: against between the White House and the Fed chair, simply 291 00:13:18,960 --> 00:13:22,160 Speaker 2: because he's not acting the way that we feel would 292 00:13:22,360 --> 00:13:24,760 Speaker 2: the way the administration feels would be the most friendly 293 00:13:24,800 --> 00:13:28,040 Speaker 2: toward business and the quickest manner possible. You mentioned you 294 00:13:28,080 --> 00:13:31,480 Speaker 2: mentioned the Carter administration, and this is a little bit 295 00:13:31,559 --> 00:13:34,360 Speaker 2: similar to the Nixon administration too. Part of the reason 296 00:13:34,360 --> 00:13:38,360 Speaker 2: that we had stagflation was Nixon badgering the FED chair 297 00:13:38,400 --> 00:13:40,559 Speaker 2: at the time to lower interest rates because there was 298 00:13:40,600 --> 00:13:43,200 Speaker 2: an election coming up and he wanted to goose the economy, 299 00:13:43,240 --> 00:13:45,480 Speaker 2: and so that happened. By the time the impacts of 300 00:13:45,520 --> 00:13:49,400 Speaker 2: that were felt, that was the roots of stagflation. Then 301 00:13:49,840 --> 00:13:52,640 Speaker 2: Nixon was out of office and we had a period 302 00:13:52,760 --> 00:13:55,960 Speaker 2: of that long period where we had inflation but no 303 00:13:56,120 --> 00:13:59,760 Speaker 2: economic growth, no really identifiable economic grow because usually at 304 00:13:59,840 --> 00:14:03,720 Speaker 2: leads comes along with accelerated activity, which trickles through the economy. 305 00:14:03,880 --> 00:14:05,880 Speaker 2: Prices are getting higher, but people are making more money, 306 00:14:05,880 --> 00:14:08,400 Speaker 2: and no, it's not keeping up, but there's still there's 307 00:14:08,400 --> 00:14:10,920 Speaker 2: still growth there. That is not what happened in the seventies. 308 00:14:10,960 --> 00:14:13,000 Speaker 2: We got the inflation with none of the good stuff 309 00:14:13,040 --> 00:14:13,600 Speaker 2: out of it either. 310 00:14:13,720 --> 00:14:15,400 Speaker 1: Good point, well, and you met another good point you 311 00:14:15,480 --> 00:14:18,360 Speaker 1: made there in brief in passing about the interest rates. 312 00:14:18,679 --> 00:14:23,480 Speaker 1: It lowers businesses borrowing costs because they too borrow money. 313 00:14:23,760 --> 00:14:27,480 Speaker 1: Now that's something that isn't I would argue, at least 314 00:14:27,480 --> 00:14:31,320 Speaker 1: across the board generally speaking, a problem with supplying demand. 315 00:14:31,680 --> 00:14:34,320 Speaker 1: Most of my audience, I imagine once the interest rate's lower, 316 00:14:34,360 --> 00:14:36,040 Speaker 1: because they've got young people that would like to buy 317 00:14:36,080 --> 00:14:37,840 Speaker 1: a house, or they would like to buy a house themselves, 318 00:14:37,920 --> 00:14:39,320 Speaker 1: or they bought one with a higher interest rate and 319 00:14:39,360 --> 00:14:42,800 Speaker 1: want to refinance down to something else. You can refinance 320 00:14:42,880 --> 00:14:45,560 Speaker 1: what you got, But this is not A lower interest 321 00:14:45,600 --> 00:14:47,960 Speaker 1: rate is not going to change the housing problem, is it. 322 00:14:47,960 --> 00:14:49,120 Speaker 1: It's just going to make it seems to me. It 323 00:14:49,160 --> 00:14:52,520 Speaker 1: will only increase demand on on a housing supply that 324 00:14:52,600 --> 00:14:53,480 Speaker 1: is limited already. 325 00:14:53,800 --> 00:14:55,840 Speaker 2: Exactly, there's a lot of people out there who could 326 00:14:55,880 --> 00:14:58,280 Speaker 2: These are conversations I have in my office. Yeah, who 327 00:14:58,320 --> 00:15:00,720 Speaker 2: want to buy, need to buy, but are just you know, 328 00:15:01,080 --> 00:15:03,080 Speaker 2: but they can hold off. So they're waiting for lower 329 00:15:03,120 --> 00:15:05,240 Speaker 2: interest rates on those mortgages and so there, Yeah, there 330 00:15:05,280 --> 00:15:07,720 Speaker 2: is a there's pent up demand out there that's going 331 00:15:07,800 --> 00:15:09,680 Speaker 2: to prop up a housing priceis and that will go 332 00:15:09,760 --> 00:15:11,320 Speaker 2: directly in the face of some of the things that 333 00:15:11,360 --> 00:15:13,400 Speaker 2: the President has thrown out there that he would like 334 00:15:13,440 --> 00:15:15,280 Speaker 2: to fix. Remember, we wasn't that long ago we talked 335 00:15:15,280 --> 00:15:18,360 Speaker 2: about fifty year mortgages and maybe bonuses for first time 336 00:15:18,400 --> 00:15:21,120 Speaker 2: home buyers, those kinds of things. None of that reacts 337 00:15:21,160 --> 00:15:23,840 Speaker 2: to the idea that that houses are way more expensive 338 00:15:23,920 --> 00:15:26,560 Speaker 2: now for people at that stage of life than they 339 00:15:26,560 --> 00:15:28,800 Speaker 2: were over the past decade and then maybe there's not 340 00:15:28,880 --> 00:15:30,720 Speaker 2: much you can do about that. But all that's gonna 341 00:15:30,720 --> 00:15:32,640 Speaker 2: do is goose demand and push prices up. 342 00:15:33,320 --> 00:15:36,200 Speaker 1: Yes, now, sort of a boiled down question. I don't 343 00:15:36,200 --> 00:15:37,920 Speaker 1: know whether you can answer it real quickly or not, 344 00:15:38,040 --> 00:15:41,240 Speaker 1: but got to ask it as a financial planner, when 345 00:15:41,280 --> 00:15:44,240 Speaker 1: you're having these conversations with individuals, is it still a 346 00:15:44,280 --> 00:15:45,960 Speaker 1: good idea to buy house? 347 00:15:46,760 --> 00:15:49,440 Speaker 2: I think once you know for darn certain that you're 348 00:15:49,520 --> 00:15:51,760 Speaker 2: where you're gonna be, you're ready to put roots down, 349 00:15:51,840 --> 00:15:54,320 Speaker 2: you know your your your jobs are secure, you know 350 00:15:54,360 --> 00:15:56,120 Speaker 2: those kinds of things, then I think it makes sense. 351 00:15:56,160 --> 00:15:58,880 Speaker 2: Because if you're gonna, if you're gonna subscribe to the 352 00:15:58,880 --> 00:16:00,280 Speaker 2: idea that all they need to do is rent and 353 00:16:00,320 --> 00:16:03,040 Speaker 2: so it'll be somebody else's problem and it's too expensive anyway. Well, 354 00:16:03,080 --> 00:16:07,560 Speaker 2: now you are completely beholden to whatever the rental landscape is, 355 00:16:08,200 --> 00:16:10,800 Speaker 2: and you'd you'll be paying as much or more over 356 00:16:10,840 --> 00:16:13,720 Speaker 2: the decades with those annual increases than you would if 357 00:16:13,760 --> 00:16:15,600 Speaker 2: you had to deal with mowing your lawn and fixing 358 00:16:15,640 --> 00:16:17,480 Speaker 2: your own home, you know, hot water heater and all 359 00:16:17,520 --> 00:16:20,440 Speaker 2: that shovel the driveway, show them, Yeah exactly, you know. 360 00:16:20,840 --> 00:16:22,600 Speaker 2: Then I got another one, another round of that coming 361 00:16:22,680 --> 00:16:25,160 Speaker 2: up today. So if over the longer term, if you 362 00:16:25,200 --> 00:16:26,840 Speaker 2: feel like, yes, I know where I want to be, 363 00:16:26,920 --> 00:16:28,720 Speaker 2: this is the neighborhood, this is the you know, these 364 00:16:28,760 --> 00:16:30,440 Speaker 2: are where our jobs are, then I think buying a 365 00:16:30,440 --> 00:16:32,400 Speaker 2: home is a good idea. Buying a home for the 366 00:16:32,720 --> 00:16:35,680 Speaker 2: decades old notion that it's the best investment you'll ever know. No, 367 00:16:35,840 --> 00:16:37,680 Speaker 2: it's the worst investment you'll ever own. 368 00:16:37,720 --> 00:16:39,800 Speaker 1: But you gotta have one, Yeah, gotta have a place 369 00:16:39,840 --> 00:16:41,840 Speaker 1: to live, and it's nice at the end of the day, 370 00:16:41,880 --> 00:16:44,560 Speaker 1: whenever that day is, at least you got some equity 371 00:16:44,560 --> 00:16:46,520 Speaker 1: to show for it. You may have been break even 372 00:16:46,640 --> 00:16:48,720 Speaker 1: all along. You bought the house, you put all kinds 373 00:16:48,720 --> 00:16:51,320 Speaker 1: of money and effort into it, you sell it. Maybe 374 00:16:51,360 --> 00:16:53,880 Speaker 1: it's a wash, but at least a wash is better 375 00:16:53,920 --> 00:16:55,960 Speaker 1: than just a hole you dug with yourself for rent 376 00:16:56,000 --> 00:16:56,760 Speaker 1: over those years. 377 00:16:56,920 --> 00:16:59,360 Speaker 2: Couldn't agree more. You don't. You don't necessarily that starter 378 00:16:59,440 --> 00:17:01,560 Speaker 2: home concept I think has changed a little bit. It's 379 00:17:01,560 --> 00:17:03,840 Speaker 2: all right, you're gonna get into your late twenties even 380 00:17:03,880 --> 00:17:06,560 Speaker 2: early thirties before you figure out exactly the spot. That 381 00:17:06,680 --> 00:17:07,720 Speaker 2: is not a bad thing. 382 00:17:07,800 --> 00:17:10,000 Speaker 1: All right. One more with Brian James got a question 383 00:17:10,040 --> 00:17:12,320 Speaker 1: for him, what is this deal with the ten percent 384 00:17:12,400 --> 00:17:15,320 Speaker 1: cap on credit cards? And also, speaking of housing, Trump 385 00:17:15,400 --> 00:17:20,280 Speaker 1: endeavoring to prevent commercial acquisition of housing private housing for 386 00:17:20,320 --> 00:17:22,760 Speaker 1: the purpose of rentals, and that seems to only sort 387 00:17:22,800 --> 00:17:25,200 Speaker 1: of exacerbate what we were just talking about. But that's 388 00:17:25,200 --> 00:17:27,200 Speaker 1: what we have. Brian James for one more with Brian James, 389 00:17:27,240 --> 00:17:32,320 Speaker 1: Stick Around Freedom Hey, twenty nine fifty five KRCD Talk Station, 390 00:17:32,480 --> 00:17:36,480 Speaker 1: Happy Monday, doing Money Buck Monday with Brian James. Brian James, 391 00:17:36,560 --> 00:17:40,439 Speaker 1: this one's got me a little bit torn. I am. 392 00:17:40,560 --> 00:17:43,520 Speaker 1: I regularly describe myself as a little l libertary, in 393 00:17:43,520 --> 00:17:45,720 Speaker 1: other words, not a capital little party libertarian. Just I 394 00:17:45,760 --> 00:17:48,120 Speaker 1: believe in free markets. I don't believe in government intervention 395 00:17:48,240 --> 00:17:50,879 Speaker 1: with markets or the way we run our businesses. I 396 00:17:50,920 --> 00:17:53,840 Speaker 1: think businesses can decide on their own. So it struck 397 00:17:53,840 --> 00:17:55,720 Speaker 1: me as rather odd because I always kind of thought 398 00:17:55,800 --> 00:17:58,120 Speaker 1: Trump might have been that kind of guy, but then 399 00:17:58,119 --> 00:18:00,439 Speaker 1: he would come out and embrace something that's sound like 400 00:18:00,520 --> 00:18:04,560 Speaker 1: it is a Democrat platform position, which is capping the 401 00:18:04,640 --> 00:18:08,480 Speaker 1: credit card company's interest rate charge. Now I think we 402 00:18:08,480 --> 00:18:13,840 Speaker 1: can all agree thirty percent sounds userrous. That's outrageous. But 403 00:18:14,200 --> 00:18:16,920 Speaker 1: is there a reason that the interest rate might be 404 00:18:17,000 --> 00:18:19,840 Speaker 1: twenty or thirty percent? And I think the answer is 405 00:18:19,920 --> 00:18:23,479 Speaker 1: probably yeah, because the credit card companies have to eat fraud, 406 00:18:23,480 --> 00:18:26,840 Speaker 1: wasted abuse. I mean, our individual liability is capped at 407 00:18:26,840 --> 00:18:30,399 Speaker 1: fifty bucks. If someone steals our card, uses our number 408 00:18:30,520 --> 00:18:32,719 Speaker 1: or whatever, we let the credit card company know. They 409 00:18:32,720 --> 00:18:34,840 Speaker 1: go and try to unring that bell. But we don't 410 00:18:34,880 --> 00:18:36,760 Speaker 1: have to pay more out of pocket than fifty bucks. 411 00:18:36,840 --> 00:18:39,240 Speaker 1: Somebody's got to eat it. That's the credit card company, right, 412 00:18:39,359 --> 00:18:40,360 Speaker 1: Is that one of the reasons. 413 00:18:40,560 --> 00:18:42,440 Speaker 2: Yeah, And I would say that fifty bucks is rarely 414 00:18:42,480 --> 00:18:45,280 Speaker 2: even applied to most of the time. They just eat it. Yeah, 415 00:18:45,800 --> 00:18:49,280 Speaker 2: So yeah, there's a reason for that. I don't know. 416 00:18:49,440 --> 00:18:52,040 Speaker 2: I think a little differently about this. I feel like 417 00:18:52,119 --> 00:18:54,840 Speaker 2: over the decades, the pendulum swings back and forth because 418 00:18:54,880 --> 00:18:58,720 Speaker 2: if businesses are allowed to operate unbridled and completely unregulated, 419 00:18:58,760 --> 00:19:00,800 Speaker 2: well they're going to look under absolutely every stone for 420 00:19:00,920 --> 00:19:03,560 Speaker 2: profit and they will get to a point, you know. 421 00:19:03,600 --> 00:19:06,480 Speaker 2: That's why that's currently the current structure. Is why your 422 00:19:06,520 --> 00:19:09,640 Speaker 2: mailbox is full of credit card applications every single day, 423 00:19:09,920 --> 00:19:12,400 Speaker 2: every other day from the exact same company, because they're 424 00:19:12,440 --> 00:19:14,879 Speaker 2: simply looking for people to take out more debt, and 425 00:19:14,920 --> 00:19:17,240 Speaker 2: they're just hoping that you go one day, one minute 426 00:19:17,280 --> 00:19:21,080 Speaker 2: beyond that zero percent balance transfer period, because that's when 427 00:19:21,080 --> 00:19:22,800 Speaker 2: you start to pay that twenty seven to twenty eight 428 00:19:22,840 --> 00:19:25,159 Speaker 2: percent all the way back to day one. So you know, 429 00:19:25,200 --> 00:19:27,399 Speaker 2: the rest of us who are on top of things 430 00:19:27,480 --> 00:19:30,280 Speaker 2: are benefiting from the fact that credit card companies are 431 00:19:30,280 --> 00:19:32,560 Speaker 2: making money off of people who just aren't as on 432 00:19:32,600 --> 00:19:34,640 Speaker 2: top and are letting those things get out of control. 433 00:19:34,880 --> 00:19:37,240 Speaker 2: So on one go, I go both ways with it. 434 00:19:37,280 --> 00:19:39,280 Speaker 2: I mean, it's wonderful to have these rewards, and it's 435 00:19:39,280 --> 00:19:40,800 Speaker 2: great to play the credit card game, and I do 436 00:19:40,840 --> 00:19:43,040 Speaker 2: it myself. I don't pay any interest. But at the 437 00:19:43,080 --> 00:19:44,639 Speaker 2: same time, I know that I'm not the one that 438 00:19:44,640 --> 00:19:46,399 Speaker 2: they're making a ton of money off of. It's the 439 00:19:46,440 --> 00:19:48,840 Speaker 2: people who forget and the people who just rely on 440 00:19:48,880 --> 00:19:51,919 Speaker 2: that to pay their bills. And that's societally, that is 441 00:19:51,960 --> 00:19:53,399 Speaker 2: not a great thing. That's not going to lead us 442 00:19:53,400 --> 00:19:56,280 Speaker 2: to a great conclusion. But at the same time, it's 443 00:19:56,320 --> 00:19:58,760 Speaker 2: all about supply demand. If the demand is yeah, sure, 444 00:19:58,800 --> 00:20:00,280 Speaker 2: I want to have a bunch of debt and willing 445 00:20:00,280 --> 00:20:03,359 Speaker 2: to blindly pay thirty percent, then so be it. That's 446 00:20:03,440 --> 00:20:05,639 Speaker 2: kind of the situation that we're currently in. As to 447 00:20:05,720 --> 00:20:08,760 Speaker 2: why Trump is pushing this now, my best guess is 448 00:20:08,800 --> 00:20:10,520 Speaker 2: it's a way to get the attention of a lot 449 00:20:10,560 --> 00:20:13,720 Speaker 2: of people who who would have painted him a certain way. 450 00:20:13,800 --> 00:20:15,480 Speaker 2: You're right, this is this is you know, maybe he's 451 00:20:15,480 --> 00:20:17,240 Speaker 2: dipping into a crowd that he hasn't been able to. 452 00:20:17,240 --> 00:20:21,760 Speaker 1: Reach before populist. Well, the other thing, the other component 453 00:20:21,840 --> 00:20:23,959 Speaker 1: of this is if you cap the interest rate that 454 00:20:23,960 --> 00:20:26,960 Speaker 1: the credit card companies can charge, the likelihood that those 455 00:20:27,359 --> 00:20:30,600 Speaker 1: least likely to obtain credit will no longer be able 456 00:20:30,680 --> 00:20:33,840 Speaker 1: to obtain credit increases dramatically. So to the extent he's 457 00:20:33,840 --> 00:20:36,480 Speaker 1: trying to help, you know, folks that might need credit, 458 00:20:36,520 --> 00:20:38,479 Speaker 1: he's not doing them any service if that actually, if 459 00:20:38,480 --> 00:20:40,120 Speaker 1: this actually comes to fruition, right. 460 00:20:40,359 --> 00:20:42,200 Speaker 2: Right, But that's not the headline. He's after the headline. 461 00:20:42,359 --> 00:20:46,080 Speaker 1: No, No, well, come on, Brian, I know that. 462 00:20:46,240 --> 00:20:48,760 Speaker 2: We're not worried about what happens six months a year later. 463 00:20:48,840 --> 00:20:50,680 Speaker 2: That's that's unimportant at the time. And besides, then he 464 00:20:50,720 --> 00:20:52,879 Speaker 2: can change the rules and then make the headline again. 465 00:20:52,960 --> 00:20:54,760 Speaker 2: So but no, you're exactly right. If we're going to 466 00:20:54,800 --> 00:20:56,679 Speaker 2: make it, if we're going to restrict the ability for 467 00:20:56,760 --> 00:20:58,600 Speaker 2: these let me, let's face it, Brian, we are the 468 00:20:58,680 --> 00:21:00,720 Speaker 2: United States of profit margin. That's it, that's all we 469 00:21:00,800 --> 00:21:02,760 Speaker 2: care about. So if we're going to restrict the ability 470 00:21:02,760 --> 00:21:04,560 Speaker 2: for credit card companies to make profit, they're going to 471 00:21:04,640 --> 00:21:06,840 Speaker 2: restrict the expenses they have to lay out. That means 472 00:21:06,880 --> 00:21:09,800 Speaker 2: goodbye rewards programs, goodbye to a lot of things that 473 00:21:09,840 --> 00:21:11,760 Speaker 2: a lot of people benefit from, and those were already 474 00:21:11,760 --> 00:21:13,679 Speaker 2: on the chopping block anyway for a lot of reasons. 475 00:21:13,760 --> 00:21:15,280 Speaker 1: Yeah, fair enough, And it seems to me the more 476 00:21:15,359 --> 00:21:19,359 Speaker 1: opportunities for credit from different sources, that's competition among the 477 00:21:19,400 --> 00:21:23,320 Speaker 1: credit companies, which would necessarily suggest that they can make 478 00:21:23,359 --> 00:21:25,199 Speaker 1: the choice to lower the interest rates in order to 479 00:21:25,200 --> 00:21:27,840 Speaker 1: get more people on their card, as opposed to somebody else's. 480 00:21:28,080 --> 00:21:30,679 Speaker 2: Oh sure, but there's no demand for that, because you know, 481 00:21:30,840 --> 00:21:33,520 Speaker 2: if you're somebody who really you know, if you're really 482 00:21:33,560 --> 00:21:35,520 Speaker 2: really paying attention, then you're not going to care that 483 00:21:35,560 --> 00:21:37,480 Speaker 2: this one's only going to charge me up to twenty percent. 484 00:21:37,520 --> 00:21:39,399 Speaker 2: You're not going to touch that one either. You're going 485 00:21:39,440 --> 00:21:41,119 Speaker 2: to find a different way too, if you're willing to 486 00:21:41,160 --> 00:21:43,359 Speaker 2: do the research. These things are not hard to avoid, 487 00:21:43,680 --> 00:21:45,880 Speaker 2: but they're banking on the fact that no pun intended 488 00:21:46,440 --> 00:21:49,680 Speaker 2: that that people are paid don't pay attention, and unfortunately, 489 00:21:49,760 --> 00:21:51,879 Speaker 2: in a lot of cases, that's exactly what happens. 490 00:21:51,920 --> 00:21:53,560 Speaker 1: All right, Well, I got to use this as an 491 00:21:53,600 --> 00:21:56,480 Speaker 1: opportunity to complain about how your credit score is calculated. 492 00:21:56,760 --> 00:22:00,320 Speaker 1: You know, I at one point had a perfect credit 493 00:22:00,640 --> 00:22:02,439 Speaker 1: credit score, and I'm not bragging about this. I'm just 494 00:22:02,480 --> 00:22:05,399 Speaker 1: using it as illustration and event my frustrations. The only 495 00:22:05,480 --> 00:22:09,359 Speaker 1: reason it isn't is because I don't have enough credit 496 00:22:09,400 --> 00:22:12,560 Speaker 1: cards open. That pisses me off, Brian James. I don't 497 00:22:12,600 --> 00:22:14,919 Speaker 1: need more credit. I got enough with what I have. 498 00:22:15,080 --> 00:22:16,919 Speaker 1: And yet if I'm looking at a credit score go 499 00:22:16,960 --> 00:22:19,560 Speaker 1: out and get more credit. That's screwed up, man. 500 00:22:20,119 --> 00:22:22,679 Speaker 2: Yeah, it is. It is, and it focuses on the 501 00:22:22,680 --> 00:22:23,359 Speaker 2: wrong things. 502 00:22:23,440 --> 00:22:23,600 Speaker 1: Right. 503 00:22:23,680 --> 00:22:27,040 Speaker 2: So, you know, here's what's important with this. It's your 504 00:22:27,080 --> 00:22:29,520 Speaker 2: payment history. This is for the fight O model. This 505 00:22:29,600 --> 00:22:31,040 Speaker 2: is the most widely used one. There's a lot of 506 00:22:31,040 --> 00:22:33,639 Speaker 2: different models out there. Your payment history. Don't screw up 507 00:22:33,680 --> 00:22:36,439 Speaker 2: your payments. That's about thirty five percent of it. About 508 00:22:36,480 --> 00:22:38,280 Speaker 2: thirty percent, so close to a third. And this is 509 00:22:38,320 --> 00:22:41,000 Speaker 2: what you're talking about. Brian Thomas is the amounts owed 510 00:22:41,160 --> 00:22:44,399 Speaker 2: versus your credit utilization. So what you might notice is 511 00:22:44,440 --> 00:22:47,280 Speaker 2: that and I saw this, we bought so early in COVID. 512 00:22:47,320 --> 00:22:50,640 Speaker 2: We were going to take the family trip, our Griswold 513 00:22:50,680 --> 00:22:53,760 Speaker 2: family European vacation. COVID killed it. That turned into a 514 00:22:53,800 --> 00:22:56,600 Speaker 2: hot tub. Opened a credit card with Watson's because they 515 00:22:56,600 --> 00:22:58,920 Speaker 2: had a zero percent deal going on. My credit score 516 00:22:58,960 --> 00:23:01,600 Speaker 2: went through the roof because I had more that my 517 00:23:01,680 --> 00:23:04,320 Speaker 2: ceiling went up. I took out actual debt, I took 518 00:23:04,320 --> 00:23:06,399 Speaker 2: the draw on it, we paid the nothing percent, and 519 00:23:06,440 --> 00:23:08,960 Speaker 2: my credit score went up because of it. So yeah, 520 00:23:09,040 --> 00:23:11,040 Speaker 2: that that what you're talking about about a third of 521 00:23:11,080 --> 00:23:13,240 Speaker 2: your score is related to how much of your credit 522 00:23:13,320 --> 00:23:15,520 Speaker 2: you use, Meaning you have to have credit, but then 523 00:23:15,560 --> 00:23:17,199 Speaker 2: don't use too much of it so you can have 524 00:23:17,240 --> 00:23:18,919 Speaker 2: the same amount of debt. But if you if you 525 00:23:19,040 --> 00:23:22,240 Speaker 2: increase that limit by opening another card, your credit score, 526 00:23:22,280 --> 00:23:23,680 Speaker 2: believe it or not, it's probably gonna go up. 527 00:23:24,280 --> 00:23:27,360 Speaker 1: Well, they understand that I pay my bills on time, 528 00:23:27,440 --> 00:23:29,800 Speaker 1: I never carry a balance forward, so I've got the 529 00:23:29,840 --> 00:23:31,760 Speaker 1: seal amount of credit, and I will say I think 530 00:23:31,760 --> 00:23:35,560 Speaker 1: it's adequate. Yeah, yeah, I even paid off I mean, 531 00:23:36,080 --> 00:23:38,720 Speaker 1: what what why am I a bad guy for that. 532 00:23:38,800 --> 00:23:41,919 Speaker 1: I I'm sorry. This just screams injustice. 533 00:23:42,760 --> 00:23:44,360 Speaker 2: So what you should do go out and open another 534 00:23:44,400 --> 00:23:46,200 Speaker 2: credit card? It'll bounce the other way. Play the game. 535 00:23:46,280 --> 00:23:48,919 Speaker 1: I'm not playing the game, Bryan James. I'm not playing 536 00:23:48,920 --> 00:23:52,000 Speaker 1: that game. But besides, I've taken your advice and device 537 00:23:52,040 --> 00:23:54,119 Speaker 1: of so many other people who are prudent in matters 538 00:23:54,119 --> 00:23:58,480 Speaker 1: financial and frozen my credit limits or my credit with 539 00:23:59,000 --> 00:24:02,280 Speaker 1: TransUnion and all that, so no one can open credit 540 00:24:02,320 --> 00:24:02,800 Speaker 1: in my name. 541 00:24:02,880 --> 00:24:03,720 Speaker 2: Yeah, including you. 542 00:24:03,720 --> 00:24:04,679 Speaker 1: That's right, including me. 543 00:24:04,840 --> 00:24:06,720 Speaker 2: Yeah. These aren't bad things, those are good things. Here's 544 00:24:06,760 --> 00:24:09,919 Speaker 2: the biggest thing. I would say, go through, clean up 545 00:24:09,960 --> 00:24:12,240 Speaker 2: the old credit cards from the stores you never use 546 00:24:12,320 --> 00:24:14,399 Speaker 2: or and those you can close. Don't even if you 547 00:24:14,440 --> 00:24:17,159 Speaker 2: don't use it anymore, though, don't, don't. Don't close your 548 00:24:17,440 --> 00:24:19,879 Speaker 2: your oldest credit line. Put something on it, put the 549 00:24:19,920 --> 00:24:21,840 Speaker 2: ten dollars streaming account on it, and let it pay 550 00:24:21,880 --> 00:24:24,880 Speaker 2: itself automatically. That is a big chunk of your score too. 551 00:24:25,440 --> 00:24:27,400 Speaker 2: But also, you know, just make sure you've got enough 552 00:24:27,680 --> 00:24:31,040 Speaker 2: credit access ability out there, and then that'll keep your 553 00:24:31,040 --> 00:24:31,760 Speaker 2: score in a good place. 554 00:24:31,880 --> 00:24:33,920 Speaker 1: Fair enough, and very briefly, since we're out of time, 555 00:24:33,960 --> 00:24:37,040 Speaker 1: I just got to ask you this Donald Trump decree 556 00:24:37,280 --> 00:24:41,159 Speaker 1: or populist gesture again seems inconsistent with free markets. But 557 00:24:41,640 --> 00:24:43,880 Speaker 1: telling like the Black Rocks of the world that they 558 00:24:43,920 --> 00:24:47,400 Speaker 1: can't hoover up houses and tournamental rental units. That isn't 559 00:24:47,400 --> 00:24:50,400 Speaker 1: going to solve the housing problem by stopping that from happening, 560 00:24:50,480 --> 00:24:50,639 Speaker 1: is it? 561 00:24:51,200 --> 00:24:52,520 Speaker 2: Well? I mean, I think what he's trying to do 562 00:24:52,560 --> 00:24:54,520 Speaker 2: is reduce to man and again, this could also just 563 00:24:54,560 --> 00:24:57,000 Speaker 2: be headline generating. He's not pushing it that hard. He 564 00:24:57,040 --> 00:24:59,000 Speaker 2: made a few comments about it, and there was an 565 00:24:59,040 --> 00:25:02,320 Speaker 2: executive order out there, but I haven't heard that any 566 00:25:02,400 --> 00:25:05,920 Speaker 2: of these major financing companies are going under because of it. 567 00:25:06,359 --> 00:25:09,879 Speaker 2: There was restricting activities to it to enable large institutional 568 00:25:09,960 --> 00:25:14,520 Speaker 2: investors from purchasing single family homes framed as prioritizing families, 569 00:25:14,520 --> 00:25:17,240 Speaker 2: but not Wall Street. So we'll see if this really 570 00:25:17,280 --> 00:25:19,399 Speaker 2: truly has an impact. But I have a feeling right 571 00:25:19,400 --> 00:25:20,480 Speaker 2: now it's just window dressing. 572 00:25:20,720 --> 00:25:22,879 Speaker 1: Brian James, thank you all with Financial, your employer, for 573 00:25:23,000 --> 00:25:25,360 Speaker 1: louning out every Monday. I appreciate the segment, the opportunity 574 00:25:25,359 --> 00:25:26,840 Speaker 1: to speak with you about matters money. We'll do it 575 00:25:26,840 --> 00:25:29,919 Speaker 1: again next Monday, and good luck shoveling that driveway. Hopefully 576 00:25:29,920 --> 00:25:31,439 Speaker 1: you don't have to do it again for a while. 577 00:25:31,520 --> 00:25:33,080 Speaker 1: And stay warm, Brian James. 578 00:25:33,160 --> 00:25:34,720 Speaker 2: Yep, I'm gonna head out and get that final three 579 00:25:34,760 --> 00:25:36,280 Speaker 2: inches off the driveway. Stay warm as well. 580 00:25:36,560 --> 00:25:39,720 Speaker 1: There you go, Is that what she said? Joe A 581 00:25:39,840 --> 00:25:41,520 Speaker 1: thirty eight fifty five krs The Talks to