1 00:00:00,040 --> 00:00:02,440 Speaker 1: Good afternoon, getting right down to business here. We're doing 2 00:00:02,440 --> 00:00:05,600 Speaker 1: it live, doing more at four weekday afternoons, right after 3 00:00:05,640 --> 00:00:07,720 Speaker 1: Guy Benson and just before the news blitz here in 4 00:00:07,760 --> 00:00:10,840 Speaker 1: seven ninety KBC Motech on Money Live on the air 5 00:00:10,960 --> 00:00:14,760 Speaker 1: seven ninety KBC streaming live online worldwide at KBC dot 6 00:00:14,800 --> 00:00:17,800 Speaker 1: com and the on demand Motech of Money podcast KBC 7 00:00:17,960 --> 00:00:22,279 Speaker 1: dot com, Apple, iTunes, YouTube, all your favorite podcast platforms. 8 00:00:22,840 --> 00:00:25,360 Speaker 1: Let down instead of lift off on Wall Street today 9 00:00:25,400 --> 00:00:27,440 Speaker 1: this as all eyes at the moment are on the 10 00:00:27,560 --> 00:00:30,520 Speaker 1: Artemus two mission with four astronauts about to splash down 11 00:00:30,560 --> 00:00:32,440 Speaker 1: off the coast of San Diego in about an hour 12 00:00:32,479 --> 00:00:34,880 Speaker 1: from now. The astronauts went around the Moon to the 13 00:00:34,920 --> 00:00:37,800 Speaker 1: farthest point ever traveled into space by humans during their 14 00:00:38,280 --> 00:00:40,480 Speaker 1: week or so mission. We're told there will be twins 15 00:00:40,520 --> 00:00:44,240 Speaker 1: sonic booms announcing the return of the Orion capsule. Splashdown 16 00:00:44,280 --> 00:00:47,479 Speaker 1: now sent for five oh seven this evening, and space 17 00:00:47,560 --> 00:00:50,239 Speaker 1: fans later this evening. SpaceX is sent to launch a 18 00:00:50,280 --> 00:00:54,160 Speaker 1: Falcon nine rocket from Vandenberg Space Force Base at eight 19 00:00:54,160 --> 00:00:56,880 Speaker 1: oh one tonight, So that's another thing to look forward to. 20 00:00:57,000 --> 00:01:00,400 Speaker 1: It'll be visible throughout southern California and another reason to 21 00:01:00,720 --> 00:01:04,080 Speaker 1: keep looking up. Things were looking up on Wall Street 22 00:01:04,120 --> 00:01:06,440 Speaker 1: this week, but did pull back today, with the NOW 23 00:01:06,520 --> 00:01:08,560 Speaker 1: down two hundred and sixty nine points, the S and 24 00:01:08,600 --> 00:01:11,600 Speaker 1: P five hundred down to eight. The Nasdaq moved higher 25 00:01:11,680 --> 00:01:14,000 Speaker 1: by eighty points, so we did see a mix finish. 26 00:01:14,440 --> 00:01:16,120 Speaker 1: The S and P five hundred and the NOW were 27 00:01:16,200 --> 00:01:18,520 Speaker 1: up more than three percent over the past five days, 28 00:01:18,520 --> 00:01:21,920 Speaker 1: while the Nasdaq surged more than four percent. One of 29 00:01:22,000 --> 00:01:24,440 Speaker 1: if not the best week so far this year for 30 00:01:24,480 --> 00:01:27,600 Speaker 1: the major averages, and what's been a tumultuous week. All 31 00:01:27,640 --> 00:01:32,160 Speaker 1: three averages traded mostly flat today as we watched the 32 00:01:32,319 --> 00:01:35,520 Speaker 1: tenuous cease fire continue in the US Iran War, and 33 00:01:35,600 --> 00:01:38,360 Speaker 1: also the March inflation number that came out today showed 34 00:01:38,360 --> 00:01:42,000 Speaker 1: a surge and consumer prices following the start of the war. 35 00:01:42,200 --> 00:01:45,240 Speaker 1: Inflation spiked in March as the Iran war pushed up 36 00:01:45,240 --> 00:01:49,360 Speaker 1: gas and other prices for consumers. The consumer price index 37 00:01:49,440 --> 00:01:51,760 Speaker 1: up three point three percent in March compared to a 38 00:01:51,840 --> 00:01:55,000 Speaker 1: year earlier. That was the big reading we got this morning, 39 00:01:55,040 --> 00:01:58,000 Speaker 1: up from two point four percent the previous month. The 40 00:01:58,040 --> 00:02:02,000 Speaker 1: March report represents the first consumer price index report since 41 00:02:02,040 --> 00:02:05,520 Speaker 1: the Iran war started in February. Twenty eighth and indicates 42 00:02:05,640 --> 00:02:09,160 Speaker 1: the financial fallout for consumers from the first month of 43 00:02:09,200 --> 00:02:12,680 Speaker 1: fighting in the Middle East. I'll discuss the latest reading 44 00:02:12,720 --> 00:02:15,760 Speaker 1: on inflation and the outlook for business, the economy, and consumers. 45 00:02:15,760 --> 00:02:19,240 Speaker 1: I'll speaking live later this hour with economist Kevin cloudon 46 00:02:19,240 --> 00:02:22,680 Speaker 1: Fellow at the Milkin Institute in Santa Monica. More billionaires 47 00:02:22,760 --> 00:02:25,080 Speaker 1: checking out of California as well as New York, with 48 00:02:25,200 --> 00:02:28,160 Speaker 1: taxes and the costs of living being big reasons in 49 00:02:28,160 --> 00:02:31,280 Speaker 1: California the possibility of this new so called billionaire's tax 50 00:02:31,320 --> 00:02:33,800 Speaker 1: causing an exodus of the wealthy. We'll get an update 51 00:02:33,840 --> 00:02:35,720 Speaker 1: on all that and what billionaires are up to these 52 00:02:35,800 --> 00:02:39,520 Speaker 1: days with the authoritative source and all this, veteran business journalist, 53 00:02:39,560 --> 00:02:44,320 Speaker 1: Charlie Krumpley, editor of The Billionaire Reporter at Billionairereporter dot com. 54 00:02:45,240 --> 00:02:47,679 Speaker 1: But first on your money, the markets, and the economy 55 00:02:47,680 --> 00:02:49,400 Speaker 1: and the whole works. Now, I'm delighted to say we're 56 00:02:49,440 --> 00:02:52,959 Speaker 1: joined by Michael K. Farr, chief market strategist at High 57 00:02:52,960 --> 00:02:56,160 Speaker 1: Tower Advisors and president of the DC investment advisory firm 58 00:02:56,440 --> 00:02:58,880 Speaker 1: far Miller in Washington. He's also author the book A 59 00:02:58,919 --> 00:03:01,280 Speaker 1: Million Is I Don't Enough? How to Retire with the 60 00:03:01,280 --> 00:03:04,160 Speaker 1: money you'll need. Michael Farth, thank you very much, sh 61 00:03:04,240 --> 00:03:05,840 Speaker 1: for taking the call this afternoon. 62 00:03:07,240 --> 00:03:09,560 Speaker 2: Rank. It's always good to be with you. I appreciate it. 63 00:03:09,760 --> 00:03:12,040 Speaker 1: Wonderful to have you with us here, especially on such 64 00:03:12,080 --> 00:03:15,320 Speaker 1: an eventful week, and it was actually a big week 65 00:03:15,480 --> 00:03:17,840 Speaker 1: for the market. Give us your assessment of things here 66 00:03:18,080 --> 00:03:18,720 Speaker 1: this afternoon. 67 00:03:20,680 --> 00:03:23,040 Speaker 2: I think we saw a bit of a relief rally 68 00:03:23,200 --> 00:03:27,000 Speaker 2: this week, and I think a relief rally certainly in order, 69 00:03:27,320 --> 00:03:30,800 Speaker 2: but it's not resolution. I don't feel like we've solved 70 00:03:30,800 --> 00:03:33,400 Speaker 2: a whole lot. We're not seeing that volume of ships 71 00:03:33,560 --> 00:03:36,520 Speaker 2: pass through the Strait of Horn moves, and that's really 72 00:03:36,560 --> 00:03:40,680 Speaker 2: the key I think to things economically. Certainly, the war 73 00:03:40,920 --> 00:03:44,720 Speaker 2: and the battle and the military efforts and missiles in 74 00:03:44,760 --> 00:03:48,600 Speaker 2: the air are of enormous concern, But to the global economy, 75 00:03:48,680 --> 00:03:51,120 Speaker 2: it's that oil that goes through the strait. It's about 76 00:03:51,160 --> 00:03:54,360 Speaker 2: twenty percent of the world's oil that goes through the 77 00:03:54,400 --> 00:03:58,400 Speaker 2: Straight of Horn Moose. We're seeing those prices spiked. We 78 00:03:58,440 --> 00:04:02,280 Speaker 2: saw a consumer sentiment drop and it was a big drop. 79 00:04:02,680 --> 00:04:06,720 Speaker 2: And consumer sentiment, as you well know, Frank, matters a lot. 80 00:04:06,800 --> 00:04:09,160 Speaker 2: It matters how you feel as to whether you're going 81 00:04:09,200 --> 00:04:12,640 Speaker 2: to spend money or not. If you feel confident you do. 82 00:04:12,840 --> 00:04:16,440 Speaker 2: If you are worried about things, you don't. And with 83 00:04:16,640 --> 00:04:19,960 Speaker 2: oil prices this much higher, this kind of puts the 84 00:04:20,040 --> 00:04:26,120 Speaker 2: FED on hold. I've heard hopes, and certainly from Hassett 85 00:04:26,120 --> 00:04:29,280 Speaker 2: in the White House saying we could still have cuts 86 00:04:29,320 --> 00:04:31,599 Speaker 2: coming up. I don't see it. I don't think the 87 00:04:31,640 --> 00:04:34,440 Speaker 2: FED sees it. I think that's a lot of wishful thinking. 88 00:04:34,760 --> 00:04:39,360 Speaker 2: And we've also had a flurry of FED speak, most 89 00:04:39,400 --> 00:04:42,240 Speaker 2: of all of which has been saying we're gonna sit 90 00:04:42,320 --> 00:04:44,720 Speaker 2: on our hands for a while until we see where 91 00:04:44,760 --> 00:04:47,640 Speaker 2: this goes. And the real problem, of course, Frank, is 92 00:04:47,680 --> 00:04:51,440 Speaker 2: that the Federal Reserve, the Central Bank can't lower rates, 93 00:04:51,720 --> 00:04:55,680 Speaker 2: meaning can't add money to the system if prices are rising, 94 00:04:56,120 --> 00:05:00,479 Speaker 2: if prices are really rising because of inflation, they add 95 00:05:00,560 --> 00:05:03,280 Speaker 2: money to it, or they make money less expensive by 96 00:05:03,279 --> 00:05:08,200 Speaker 2: lowering rates. That fuels further inflation, and that can be crippling. 97 00:05:08,279 --> 00:05:10,479 Speaker 2: We saw that in the seventies and eighties. It is 98 00:05:10,600 --> 00:05:14,200 Speaker 2: really a killer. So we've got to see if this 99 00:05:14,839 --> 00:05:18,280 Speaker 2: ceasefire holds. If there's been a ceasefire, I guess if 100 00:05:18,320 --> 00:05:20,760 Speaker 2: there's been a real truth that we can measure, and 101 00:05:20,839 --> 00:05:24,200 Speaker 2: I think this weekend will be important. Frankly, frank, I'm 102 00:05:24,200 --> 00:05:26,320 Speaker 2: happy to have a couple of days off where I 103 00:05:26,360 --> 00:05:30,320 Speaker 2: can exhale instead of watching this market minute five minute, and. 104 00:05:30,400 --> 00:05:32,960 Speaker 1: They're live with Michael K. Far chief market strategist at 105 00:05:33,040 --> 00:05:36,039 Speaker 1: High Tower Advisors and president of the DC investment advisory 106 00:05:36,040 --> 00:05:39,080 Speaker 1: firm far Miller in Washington. It's so terrific to get 107 00:05:39,080 --> 00:05:42,520 Speaker 1: to your expertise on such an important week, and certainly 108 00:05:42,560 --> 00:05:45,360 Speaker 1: with the Middle East and oil in focus. We did 109 00:05:45,400 --> 00:05:48,520 Speaker 1: see oil come off the recent highs, and as we've 110 00:05:48,520 --> 00:05:53,320 Speaker 1: seen in the past, this pattern plays out almost automatically, 111 00:05:53,400 --> 00:05:56,800 Speaker 1: when the gas prices go up, consumer confidence comes down, 112 00:05:56,600 --> 00:05:59,960 Speaker 1: and you're correct a point to that consumer confidence reading 113 00:06:00,000 --> 00:06:02,320 Speaker 1: we got to today along with the inflation number. Consumer 114 00:06:02,400 --> 00:06:05,119 Speaker 1: confidence as a matter of fact, plunged weight record low 115 00:06:05,600 --> 00:06:08,760 Speaker 1: last month as fears mounted over rising energy prices and 116 00:06:08,960 --> 00:06:11,680 Speaker 1: the impact of the Iran war. That's the University of 117 00:06:11,720 --> 00:06:15,080 Speaker 1: Michigan survey that came out today. What do you see 118 00:06:15,120 --> 00:06:19,279 Speaker 1: ahead for oil prices and gas prices? And it's been 119 00:06:19,320 --> 00:06:23,880 Speaker 1: a whipsaw week for oil company stock investors, So give 120 00:06:23,960 --> 00:06:25,520 Speaker 1: us your assessment of things here at the moment. 121 00:06:26,880 --> 00:06:30,080 Speaker 2: It was a big drop in that consumer centiment. It 122 00:06:30,160 --> 00:06:33,560 Speaker 2: went from fifty three point three in March to forty 123 00:06:33,680 --> 00:06:37,760 Speaker 2: seven point six. I mean that was that was big. 124 00:06:38,080 --> 00:06:42,240 Speaker 2: And the expectations for inflation as part of that survey 125 00:06:42,520 --> 00:06:46,160 Speaker 2: with it that rates would continue to inflation. We continue 126 00:06:46,160 --> 00:06:48,520 Speaker 2: to go up at like four point eight percent over 127 00:06:48,560 --> 00:06:52,920 Speaker 2: the next year. So folks are having a tough time, 128 00:06:53,040 --> 00:06:55,880 Speaker 2: and inflation, of course, hits the most vulnerable part of 129 00:06:55,920 --> 00:06:59,880 Speaker 2: the population. If you're wealthy and prices of your groceries 130 00:06:59,880 --> 00:07:03,640 Speaker 2: go up five percent, okay, maybe that's gonna it could 131 00:07:03,720 --> 00:07:07,520 Speaker 2: irritate you. It might even say you might even say, well, 132 00:07:07,520 --> 00:07:09,720 Speaker 2: I'm not going to buy this or that. If you 133 00:07:10,040 --> 00:07:14,520 Speaker 2: are in the lower half of the economic cohort in 134 00:07:14,560 --> 00:07:19,080 Speaker 2: the US, that's real pain. And when prices are going 135 00:07:19,160 --> 00:07:22,280 Speaker 2: up with the pump by a dollar a gallon or 136 00:07:22,320 --> 00:07:25,160 Speaker 2: more just a couple of weeks, all of a sudden, 137 00:07:25,480 --> 00:07:27,520 Speaker 2: it costs you more money to go to work if 138 00:07:27,560 --> 00:07:30,920 Speaker 2: you can continue to afford to do it, and it's 139 00:07:30,960 --> 00:07:35,000 Speaker 2: eating away at your paycheck. So these are all things 140 00:07:35,520 --> 00:07:38,040 Speaker 2: that kind of put the brakes on a more robust 141 00:07:38,520 --> 00:07:42,360 Speaker 2: on a more robust economy, we've got to kind of 142 00:07:42,480 --> 00:07:47,040 Speaker 2: endure this right now, and that straight frankly just has 143 00:07:47,080 --> 00:07:49,800 Speaker 2: to open up. That oil has to move. I read 144 00:07:49,800 --> 00:07:52,360 Speaker 2: an article you probably saw a two franc later this 145 00:07:52,480 --> 00:07:56,320 Speaker 2: afternoon that said jet fuel in Europe is all of 146 00:07:56,360 --> 00:07:59,360 Speaker 2: a sudden in somewhat of a short supply, and those 147 00:07:59,400 --> 00:08:01,760 Speaker 2: prices are going to a spike. If they can find 148 00:08:01,840 --> 00:08:04,280 Speaker 2: jet fuel in another couple of months in Europe, they're 149 00:08:04,280 --> 00:08:07,240 Speaker 2: going to start to run shortages, so that begins to 150 00:08:07,320 --> 00:08:11,440 Speaker 2: affect the tourist trade and the people who are traveling, 151 00:08:11,720 --> 00:08:15,120 Speaker 2: and those people spend money too. So we need to 152 00:08:15,160 --> 00:08:17,920 Speaker 2: get through this before it really snowballs. 153 00:08:18,800 --> 00:08:22,080 Speaker 1: From an investment standpoint, where would you be placing your 154 00:08:22,120 --> 00:08:25,440 Speaker 1: bets your higher oil prices, lower oil prices, and what 155 00:08:25,480 --> 00:08:28,360 Speaker 1: about the oil stocks which you've seen a wild ride 156 00:08:28,360 --> 00:08:28,760 Speaker 1: this week. 157 00:08:30,040 --> 00:08:32,400 Speaker 2: Oil stocks have seen a wild rise rise, and I 158 00:08:32,440 --> 00:08:37,120 Speaker 2: would expect those prices to be sustained. I think the 159 00:08:37,160 --> 00:08:40,080 Speaker 2: longer this lasts, the more problems you have with production, 160 00:08:40,440 --> 00:08:44,440 Speaker 2: and production is stopping and slowing at different facilities throughout 161 00:08:44,480 --> 00:08:46,920 Speaker 2: the Middle East because they don't have anywhere to put 162 00:08:46,920 --> 00:08:49,880 Speaker 2: the oil. You filled your storage tanks and now you 163 00:08:49,960 --> 00:08:52,680 Speaker 2: have to kind of stop pumping slow pumping because you 164 00:08:52,720 --> 00:08:56,240 Speaker 2: can't offload it into ships. So I think these oil 165 00:08:56,240 --> 00:08:59,920 Speaker 2: prices stay high. I think they it's a path signific 166 00:09:00,280 --> 00:09:03,640 Speaker 2: Lee Lower will be more emotional than it will be physical, 167 00:09:04,000 --> 00:09:06,920 Speaker 2: so I think higher for longer on oil prices. I 168 00:09:06,960 --> 00:09:11,079 Speaker 2: think in terms of stocks, this rally is great, It's welcome. 169 00:09:11,320 --> 00:09:13,520 Speaker 2: I saw Tom Lee came out and said that he 170 00:09:13,520 --> 00:09:17,280 Speaker 2: thought the bottom was in because stock prices stopped going 171 00:09:17,320 --> 00:09:21,080 Speaker 2: down when the war news got worse. Last week, Tom 172 00:09:21,160 --> 00:09:25,000 Speaker 2: Lee said that he thinks that the stock market could 173 00:09:25,040 --> 00:09:27,120 Speaker 2: go up seven and a half percent this year before 174 00:09:27,120 --> 00:09:30,120 Speaker 2: the end of the year. Okay, maybe, but I think 175 00:09:30,160 --> 00:09:32,720 Speaker 2: this is more of a pause. I don't trust this 176 00:09:32,800 --> 00:09:36,000 Speaker 2: particular bottom. I don't feel like we have a real resolution. 177 00:09:36,800 --> 00:09:39,440 Speaker 2: I think we have some relief. So I think you 178 00:09:39,480 --> 00:09:42,880 Speaker 2: can look at stocks, of course that are down, that 179 00:09:43,000 --> 00:09:46,199 Speaker 2: have come down significantly to where earnings are continuing, and 180 00:09:46,280 --> 00:09:49,520 Speaker 2: then a lot of that has happened in those Magnificent 181 00:09:49,600 --> 00:09:51,600 Speaker 2: seven and a lot of the tech stocks, but also 182 00:09:51,679 --> 00:09:55,120 Speaker 2: broadly across the S and P five hundred. You have 183 00:09:55,240 --> 00:09:57,560 Speaker 2: to do your research and you have to be I 184 00:09:57,559 --> 00:10:02,160 Speaker 2: think very careful. But longer term investors are being presented 185 00:10:02,200 --> 00:10:06,280 Speaker 2: with some values. We've had a narrow rally. This reef 186 00:10:07,160 --> 00:10:11,640 Speaker 2: relief rally has been narrow. Those leading names did rally back. 187 00:10:11,880 --> 00:10:16,040 Speaker 2: And these narrow rallies are not as they're more fragile 188 00:10:16,080 --> 00:10:18,960 Speaker 2: because they're not as broad based. So I think you 189 00:10:19,080 --> 00:10:22,240 Speaker 2: have to be cautious, but I certainly see opportunities out there. 190 00:10:22,720 --> 00:10:24,839 Speaker 2: I'm looking. I haven't done it this week, but I'm 191 00:10:24,840 --> 00:10:28,199 Speaker 2: looking to add to some positions, some very strong, big 192 00:10:28,280 --> 00:10:32,719 Speaker 2: cap names on these pullbacks, because that's what my discipline 193 00:10:32,720 --> 00:10:35,400 Speaker 2: tells me to do, not my emotion. I'm going to 194 00:10:35,400 --> 00:10:37,640 Speaker 2: get into next week. I'm going to go through my 195 00:10:37,720 --> 00:10:40,559 Speaker 2: numbers with a fine toothcomb and a very sharp pencil, 196 00:10:40,880 --> 00:10:43,319 Speaker 2: and I'll probably add this some things. 197 00:10:43,280 --> 00:10:46,280 Speaker 1: On They're Live with veteran market strategist Michael k. Far 198 00:10:46,480 --> 00:10:48,960 Speaker 1: And we haven't seen the price of gold to pull 199 00:10:49,080 --> 00:10:52,560 Speaker 1: back from all time highs once the shooting started in 200 00:10:52,720 --> 00:10:56,199 Speaker 1: last month or so. Gold right now harving just below 201 00:10:56,280 --> 00:10:58,800 Speaker 1: forty eight hundred. Silver, of course had that huge run up, 202 00:10:58,800 --> 00:11:02,280 Speaker 1: and right now having it around seventy six an ounce. 203 00:11:02,600 --> 00:11:04,360 Speaker 1: What's your rebok on the precious metals here? 204 00:11:04,360 --> 00:11:09,319 Speaker 2: In all this look when we get into an inflationary environment, Frank, 205 00:11:10,160 --> 00:11:15,360 Speaker 2: precious metals will price that inflation. They will price the inflation. 206 00:11:15,720 --> 00:11:19,800 Speaker 2: So whether we've got a pullback in oil and silver 207 00:11:19,960 --> 00:11:24,200 Speaker 2: and some of the precious metals now, I think longer term, 208 00:11:24,320 --> 00:11:26,640 Speaker 2: this inflation problem is going to be with us for 209 00:11:26,679 --> 00:11:29,280 Speaker 2: a while. The longer this conflict goes on in the 210 00:11:29,320 --> 00:11:32,800 Speaker 2: Middle East, the longer that oil doesn't move, the longer 211 00:11:32,880 --> 00:11:35,679 Speaker 2: term that problem takes a longer time it's going to 212 00:11:35,720 --> 00:11:39,720 Speaker 2: take for that problem to resolve. And just one final 213 00:11:39,760 --> 00:11:42,520 Speaker 2: note as to my bio, I'm sorry I didn't get 214 00:11:42,520 --> 00:11:45,800 Speaker 2: this to you, Frank. It's totally my fault. But my 215 00:11:45,960 --> 00:11:48,640 Speaker 2: time at var Miller and High Tower ended in December. 216 00:11:48,679 --> 00:11:52,880 Speaker 2: I've started Farcrest Capital with my son Robert, and it 217 00:11:52,960 --> 00:11:56,679 Speaker 2: is a family office company and we are going at 218 00:11:56,720 --> 00:12:00,440 Speaker 2: it as strong as ever. Taking care of family things 219 00:12:00,480 --> 00:12:03,160 Speaker 2: for the time being. I'm continuing to write and continue 220 00:12:03,160 --> 00:12:06,440 Speaker 2: to do my podcast and it's a great honor as 221 00:12:06,520 --> 00:12:08,880 Speaker 2: always to talk to you. I think it's this is 222 00:12:08,920 --> 00:12:10,840 Speaker 2: one of the best shows I think you get to 223 00:12:10,880 --> 00:12:13,560 Speaker 2: listen to on radio because every time you listen to 224 00:12:13,559 --> 00:12:14,480 Speaker 2: Frank Modek, you. 225 00:12:14,480 --> 00:12:17,719 Speaker 1: Learn something that is so wonderful. Thank you very much, 226 00:12:17,800 --> 00:12:19,880 Speaker 1: coming from you that means so much to me. And 227 00:12:20,120 --> 00:12:23,640 Speaker 1: congratulations on that big announcement. I missed that and it 228 00:12:23,640 --> 00:12:26,040 Speaker 1: has been a while since we've chatted behind live microphone. 229 00:12:26,080 --> 00:12:29,400 Speaker 1: So congratulations on the establishment of your new firm with 230 00:12:29,440 --> 00:12:32,560 Speaker 1: your son. And that's Farcrest Capital, right, and where can 231 00:12:32,600 --> 00:12:34,520 Speaker 1: people get more information about that capital? 232 00:12:34,760 --> 00:12:40,640 Speaker 2: H You got a website, Ohfarcress dot com. 233 00:12:40,679 --> 00:12:43,760 Speaker 1: All right, that's true. And you're also doing a podcast, Michael. 234 00:12:43,760 --> 00:12:45,280 Speaker 1: I know you have a lot of followers as well. 235 00:12:45,280 --> 00:12:47,679 Speaker 1: I mean you used to be interviewed by Paul Kangis 236 00:12:47,679 --> 00:12:50,440 Speaker 1: on the Nightly Business Report and you've always done such 237 00:12:50,440 --> 00:12:53,360 Speaker 1: a fantastic job. Where can people access your podcast? 238 00:12:54,559 --> 00:12:56,880 Speaker 2: It's called The Far Blast And I was going to 239 00:12:56,960 --> 00:13:00,400 Speaker 2: remind you that mar every time this Michigan consumer as 240 00:13:00,720 --> 00:13:03,240 Speaker 2: survey came out and I was on hosting with Mark 241 00:13:03,320 --> 00:13:05,920 Speaker 2: Haynes for Squawkbox. He used to say, why do those 242 00:13:06,040 --> 00:13:09,959 Speaker 2: University of Michigan kids, Why are they so pessimistic? Why 243 00:13:10,000 --> 00:13:12,840 Speaker 2: aren't they optimistic? They should always be optimistic. I worry 244 00:13:12,840 --> 00:13:15,600 Speaker 2: about these university kids. He was a funny man. I 245 00:13:15,640 --> 00:13:16,960 Speaker 2: know he was a friend of yours. 246 00:13:17,520 --> 00:13:20,679 Speaker 1: That's wonderful. Yeah, And well, Michigan should be in a 247 00:13:20,720 --> 00:13:23,960 Speaker 1: good mood after they won the national championship this past week, 248 00:13:24,080 --> 00:13:27,800 Speaker 1: so it's another reason. And you mentioned Thomas. You mentioned 249 00:13:27,840 --> 00:13:32,079 Speaker 1: Thomas Lee. I know you're from our previous conversations. I 250 00:13:32,120 --> 00:13:34,320 Speaker 1: don't think you're a big fan of crypto, but we 251 00:13:34,400 --> 00:13:38,440 Speaker 1: have seen a bitcoin recover a bit this week. Any 252 00:13:38,480 --> 00:13:40,560 Speaker 1: any thoughts on the crypto moves this week. 253 00:13:42,080 --> 00:13:47,600 Speaker 3: I still don't understand it. I'm fascinated and I own some, 254 00:13:48,160 --> 00:13:50,240 Speaker 3: but I can't tell you why it goes up or down. 255 00:13:50,320 --> 00:13:53,280 Speaker 3: So I break all my rules by buying it, and 256 00:13:53,320 --> 00:13:55,520 Speaker 3: I really bought it so that I could understand it, 257 00:13:55,760 --> 00:13:58,720 Speaker 3: and that didn't work. Frank, I don't understand it any 258 00:13:58,760 --> 00:14:02,720 Speaker 3: better than I did before I bought it, but I 259 00:14:02,760 --> 00:14:04,520 Speaker 3: hope it works out now because I own some. 260 00:14:05,840 --> 00:14:08,560 Speaker 1: Right, we're looking at a bitcoin just both seventy three 261 00:14:08,640 --> 00:14:12,200 Speaker 1: thousand now, so it has rebounded from it got down 262 00:14:12,360 --> 00:14:14,560 Speaker 1: as low as sixty coming off the all time high 263 00:14:14,600 --> 00:14:17,719 Speaker 1: of one twenty six or so in the last year now, 264 00:14:17,760 --> 00:14:20,200 Speaker 1: so we do track it here theoeum at around the 265 00:14:20,240 --> 00:14:22,800 Speaker 1: twenty two or forty at the moment doze, which is 266 00:14:22,840 --> 00:14:25,440 Speaker 1: fun to say, at nine cents here at the moment, 267 00:14:26,120 --> 00:14:28,920 Speaker 1: any specific places at this point where we are putting 268 00:14:28,960 --> 00:14:31,400 Speaker 1: money now and or taking it off the table. 269 00:14:33,000 --> 00:14:35,000 Speaker 2: Right now, I think the levels are so high for 270 00:14:35,120 --> 00:14:39,480 Speaker 2: socks anyway that I'm in general, I'm going to hold 271 00:14:39,600 --> 00:14:43,720 Speaker 2: off now. A year ago, Frank, right after Liberation Day 272 00:14:43,760 --> 00:14:46,720 Speaker 2: and stock prices fell so dramatically, I couldn't figure out 273 00:14:46,720 --> 00:14:48,880 Speaker 2: what to buy, So I just bought the spy, I 274 00:14:48,920 --> 00:14:51,960 Speaker 2: bought the index. I need my discipline, said I have 275 00:14:52,040 --> 00:14:55,040 Speaker 2: to buy on this pullback, it was significant enough. Right now, 276 00:14:55,080 --> 00:14:58,240 Speaker 2: we're still near these all time highs. I think stocks 277 00:14:58,240 --> 00:15:00,280 Speaker 2: are struggling. There are a number of headwinds, and this 278 00:15:00,320 --> 00:15:02,560 Speaker 2: is a good time to keep your hands in your pocket. 279 00:15:02,640 --> 00:15:05,920 Speaker 2: But make your shopping list. I've got mine and I'm 280 00:15:05,920 --> 00:15:08,240 Speaker 2: going to have it out on my desk next week. 281 00:15:08,440 --> 00:15:11,000 Speaker 1: All right, anything in the tech space, I looked like 282 00:15:11,040 --> 00:15:13,960 Speaker 1: the tech names had a pretty good week as well. 283 00:15:14,280 --> 00:15:16,720 Speaker 1: Any thoughts on the Mac seven, And of course, no 284 00:15:16,800 --> 00:15:20,440 Speaker 1: conversation would be complete without mentioning AI and Nvidia. 285 00:15:20,440 --> 00:15:24,400 Speaker 2: At this point, AI and Nvidia and everything. I think 286 00:15:24,440 --> 00:15:26,680 Speaker 2: AI is going to continue to drive things and it's 287 00:15:26,720 --> 00:15:30,720 Speaker 2: still being underestimated. In Vidia's numbers in this growth rate 288 00:15:31,040 --> 00:15:34,440 Speaker 2: are compelling. I think the same thing about Amazon. I 289 00:15:34,440 --> 00:15:36,800 Speaker 2: think the same thing about Microsoft. I think the same 290 00:15:36,840 --> 00:15:41,880 Speaker 2: thing about Google. So I own all of those, but 291 00:15:42,000 --> 00:15:45,000 Speaker 2: those are actually every one of them's on my list 292 00:15:45,080 --> 00:15:48,160 Speaker 2: to add to I'm still a great fan. I know 293 00:15:48,240 --> 00:15:50,840 Speaker 2: some aren't, but I think I invest for the next 294 00:15:50,840 --> 00:15:53,920 Speaker 2: five to ten years. I'd I'd love to buy those 295 00:15:53,960 --> 00:15:56,200 Speaker 2: stocks and never sell them. I hope I will never 296 00:15:56,240 --> 00:15:59,240 Speaker 2: sell any of them out of my portfolio. And I 297 00:15:59,280 --> 00:16:02,400 Speaker 2: can't believe that Microsoft has been my laggard in my 298 00:16:02,520 --> 00:16:06,200 Speaker 2: portfolio for my last six months. It's something you don't 299 00:16:06,200 --> 00:16:07,920 Speaker 2: get a chance to say too often, and when you 300 00:16:07,920 --> 00:16:09,760 Speaker 2: can say, you've got to think about buying it. 301 00:16:10,520 --> 00:16:13,440 Speaker 1: And last, but not least, we're all wishing godspeed to 302 00:16:13,480 --> 00:16:16,760 Speaker 1: the Artemis two crew is expected to splash down within 303 00:16:16,760 --> 00:16:19,680 Speaker 1: the next forty five minutes or so. Here what are 304 00:16:19,680 --> 00:16:22,680 Speaker 1: your thoughts on space related names. We're going to get 305 00:16:22,680 --> 00:16:26,960 Speaker 1: that SpaceX IPO soon and it looks like aerospace experiencing 306 00:16:27,000 --> 00:16:28,160 Speaker 1: a renaissance at the moment. 307 00:16:30,000 --> 00:16:32,200 Speaker 2: Well to say that it's the new frontier as a 308 00:16:32,200 --> 00:16:36,480 Speaker 2: great understatement. Also, as I talked to government contractors in Washington, 309 00:16:36,760 --> 00:16:40,040 Speaker 2: and I had a dinner last night with some of 310 00:16:40,040 --> 00:16:45,120 Speaker 2: those contractors who are government contractors in the defense business. 311 00:16:46,000 --> 00:16:50,840 Speaker 2: We're explaining how actually the Moon will likely be a 312 00:16:50,880 --> 00:16:54,200 Speaker 2: defense space, how China is trying to get there, how 313 00:16:54,240 --> 00:16:59,200 Speaker 2: our satellites are indeed going to be a great source 314 00:16:59,320 --> 00:17:02,240 Speaker 2: of our military very strength, and perhaps part of the 315 00:17:02,280 --> 00:17:05,080 Speaker 2: next war will be fought in space. So those defense 316 00:17:05,119 --> 00:17:10,399 Speaker 2: contractors and defense companies that are participating, I think, have 317 00:17:10,480 --> 00:17:13,000 Speaker 2: to yet really have to take a close look and 318 00:17:13,119 --> 00:17:16,359 Speaker 2: think about a much wider and new market that we 319 00:17:16,440 --> 00:17:19,560 Speaker 2: haven't really thought about yet. There's great potential out there 320 00:17:19,880 --> 00:17:23,280 Speaker 2: and a good analysis, a good analyst with a sharp pencil. 321 00:17:24,080 --> 00:17:26,359 Speaker 2: I know I son old when I even mentioned pencils, 322 00:17:26,640 --> 00:17:31,360 Speaker 2: but I still use one along with this fabulous Claude 323 00:17:31,680 --> 00:17:35,000 Speaker 2: and Gemini and chet GPT. I'm using them all all 324 00:17:35,080 --> 00:17:35,520 Speaker 2: day long. 325 00:17:35,560 --> 00:17:39,600 Speaker 1: It's fabulous, fantastic. Well elated to have you with us, 326 00:17:39,600 --> 00:17:41,680 Speaker 1: and let's do this some more often. Thank you, very 327 00:17:41,760 --> 00:17:45,520 Speaker 1: very much. Michael K. Far, chairman of Farcrest Capital private 328 00:17:45,560 --> 00:17:49,200 Speaker 1: family office, dedicated a long term stewardship and previously with 329 00:17:49,320 --> 00:17:52,520 Speaker 1: var Miller and Washington and Cheap Market Strategies to Tight 330 00:17:52,600 --> 00:17:54,600 Speaker 1: Tower for many years as well. Also a long time 331 00:17:54,680 --> 00:17:57,920 Speaker 1: contributor to CNBC and this program. Michael Pharr, thank you 332 00:17:57,960 --> 00:18:00,240 Speaker 1: again very much for joining us liver this after. 333 00:18:01,480 --> 00:18:03,479 Speaker 2: Thank you, Frank. It's always an honor and a pleasure. 334 00:18:03,520 --> 00:18:03,840 Speaker 2: Thank you. 335 00:18:04,080 --> 00:18:06,120 Speaker 1: Likewise, thank you very very much for taking the call 336 00:18:06,240 --> 00:18:08,639 Speaker 1: on seven ninety KBC. A bit of a shame that 337 00:18:08,680 --> 00:18:11,080 Speaker 1: we had a mixed finish after a pretty good week 338 00:18:11,160 --> 00:18:13,360 Speaker 1: on Wall Street today. A bit of a pullback though 339 00:18:13,400 --> 00:18:16,119 Speaker 1: today with the Dow down two sixty nine at forty 340 00:18:16,160 --> 00:18:19,200 Speaker 1: seven and nine sixteen, the S and P five hundred 341 00:18:19,240 --> 00:18:22,520 Speaker 1: down eight at sixty eight seventeen. The NAZAC though moved 342 00:18:22,560 --> 00:18:27,200 Speaker 1: higher by eighty points twenty two thousand and nineh three. 343 00:18:27,720 --> 00:18:30,080 Speaker 1: Taking a look at the yield and the tenure note, 344 00:18:30,280 --> 00:18:33,760 Speaker 1: looks like that moved the needle today, looks like it 345 00:18:33,800 --> 00:18:36,600 Speaker 1: did a bit on the inflation number. The yield and 346 00:18:36,640 --> 00:18:40,240 Speaker 1: the tenure note now at four point three four percent. Yeah, 347 00:18:40,240 --> 00:18:42,480 Speaker 1: the news ran out of the gate this morning. The 348 00:18:42,520 --> 00:18:46,040 Speaker 1: consumer price Index came out this morning which came in 349 00:18:46,240 --> 00:18:50,520 Speaker 1: hotter than expected and also reflected the effects for the 350 00:18:50,560 --> 00:18:54,240 Speaker 1: Iran war. According to the latest reading we got today 351 00:18:54,280 --> 00:18:56,680 Speaker 1: from the government, the consumer price index of three point 352 00:18:56,720 --> 00:19:00,240 Speaker 1: three percent year over year in March, up from two 353 00:19:00,280 --> 00:19:03,240 Speaker 1: point four percent February according to the Bureau of Labor 354 00:19:03,280 --> 00:19:06,200 Speaker 1: Statistics and the report that came out this morning. Of course, 355 00:19:06,359 --> 00:19:09,040 Speaker 1: the war has caused oil prices to spike, raising prices 356 00:19:09,040 --> 00:19:12,360 Speaker 1: for gas, diesel, and airfare, and leading the higher prices 357 00:19:12,359 --> 00:19:15,920 Speaker 1: for food and e commerce, among other things. Volt Holy 358 00:19:16,000 --> 00:19:18,960 Speaker 1: index pulling back today by one percent. Gold hovering just 359 00:19:18,960 --> 00:19:21,240 Speaker 1: below forty eight hundred an ounce heading into the weekend, 360 00:19:21,359 --> 00:19:24,359 Speaker 1: down forty seven dollars at forty seven to seventy one 361 00:19:24,400 --> 00:19:28,399 Speaker 1: in ounce, Silver down forty one cents seventy six oh 362 00:19:28,600 --> 00:19:31,960 Speaker 1: three an ounce. Bitcoin had a good week right now, 363 00:19:32,000 --> 00:19:35,280 Speaker 1: just below seventy three thousand. Ethereum is hovering it around 364 00:19:35,359 --> 00:19:38,000 Speaker 1: twenty two to forty doze at the moment at nine cents. 365 00:19:38,080 --> 00:19:40,520 Speaker 1: Nike taking a hit, believe it's at a twelve year 366 00:19:40,560 --> 00:19:42,800 Speaker 1: load today down a dollar thirty eight at forty two 367 00:19:42,920 --> 00:19:47,720 Speaker 1: and change. Taking a look at the consumer confidence reading 368 00:19:47,760 --> 00:19:51,800 Speaker 1: we got today as well. That consumer confidence reading hitting 369 00:19:51,840 --> 00:19:54,080 Speaker 1: a record low in the month of April. Is fears 370 00:19:54,080 --> 00:19:56,800 Speaker 1: mounted over rising energy prices and the broader impact of 371 00:19:56,840 --> 00:19:59,960 Speaker 1: the Iran war. According to that survey by the Universe 372 00:20:00,000 --> 00:20:02,840 Speaker 1: City of Michigan. My attack of Money continues here seven 373 00:20:02,840 --> 00:20:06,159 Speaker 1: to ninety KABC mix finish to a winning week on 374 00:20:06,240 --> 00:20:08,920 Speaker 1: Wall Street. In fact, the major averages had a very 375 00:20:08,920 --> 00:20:12,359 Speaker 1: good week, with the SMP five hundred in Dow moving 376 00:20:12,440 --> 00:20:15,040 Speaker 1: higher by about to three percent. The NASDAG gained about 377 00:20:15,080 --> 00:20:16,240 Speaker 1: four percent for the week. 378 00:20:16,240 --> 00:20:16,480 Speaker 2: Today. 379 00:20:16,520 --> 00:20:20,040 Speaker 1: We didn't get a mixed finish on some tough economic 380 00:20:20,080 --> 00:20:24,040 Speaker 1: news today, including the latest reading on inflation. Inflation spiked 381 00:20:24,080 --> 00:20:26,200 Speaker 1: in the month of March as the Iran War pushed 382 00:20:26,280 --> 00:20:29,720 Speaker 1: up gas, diesel, and other prices for consumers. The consumer 383 00:20:29,760 --> 00:20:33,200 Speaker 1: price index of three point three percent in the month 384 00:20:33,200 --> 00:20:36,280 Speaker 1: of March compared to a year earlier, from two point 385 00:20:36,320 --> 00:20:41,000 Speaker 1: four percent in February. Also the latest reading on consumer confidence. 386 00:20:41,040 --> 00:20:43,399 Speaker 1: This is a tough one here. Consumer confidence plunged to 387 00:20:43,440 --> 00:20:46,479 Speaker 1: a record low in the month of April as fears 388 00:20:46,480 --> 00:20:49,840 Speaker 1: mounted over rising gas and energy prices and the broader 389 00:20:49,880 --> 00:20:52,320 Speaker 1: impact of the Iran War. That reading came out today 390 00:20:52,320 --> 00:20:56,240 Speaker 1: from the University of Michigan's survey. Following all of this 391 00:20:56,440 --> 00:20:59,280 Speaker 1: closely joining US Live now is prominent Los Angeles area 392 00:20:59,359 --> 00:21:02,760 Speaker 1: based economy Kevin Clouden, fellow at the Milkin Institute in 393 00:21:02,880 --> 00:21:05,840 Speaker 1: Santa Monica. Kevin Cloudon, Thank you very much for taking 394 00:21:05,840 --> 00:21:06,960 Speaker 1: the call here this afternoon. 395 00:21:08,160 --> 00:21:10,400 Speaker 4: My pleasure of Frank, and I hope everyone is having 396 00:21:10,480 --> 00:21:13,600 Speaker 4: a good afternoon in spite of the Sumil confidence. 397 00:21:13,119 --> 00:21:16,679 Speaker 1: Issues absolutely well. Things that we're looking up today, of course, 398 00:21:16,840 --> 00:21:19,280 Speaker 1: with the Artemis mission said to conclude in the next 399 00:21:19,320 --> 00:21:22,240 Speaker 1: half hours, so everybody's excited about that. And then we 400 00:21:22,280 --> 00:21:25,080 Speaker 1: have a Falcon nine launch out of a Vandenburg, a 401 00:21:25,200 --> 00:21:28,359 Speaker 1: space Force base, and that's always spectacular. We're looking forward 402 00:21:28,359 --> 00:21:31,399 Speaker 1: to that, so reason to be looking up tonight. But 403 00:21:31,760 --> 00:21:33,639 Speaker 1: as far as the economy, and this is where you 404 00:21:33,680 --> 00:21:36,720 Speaker 1: come in, give us your assessment of these latest readings 405 00:21:36,760 --> 00:21:39,800 Speaker 1: on inflation and that real tough one on consumer confidence 406 00:21:39,800 --> 00:21:40,520 Speaker 1: that came out today. 407 00:21:41,920 --> 00:21:46,320 Speaker 4: Well, the inflation issue is really shouldn't be a surprise 408 00:21:46,560 --> 00:21:50,280 Speaker 4: because not only did we see a massive served in 409 00:21:50,400 --> 00:21:55,639 Speaker 4: gas prices, we haven't yet seen anything even in spite 410 00:21:55,680 --> 00:22:00,880 Speaker 4: of the declared ceasefire actually really over those pressures. Well, 411 00:22:01,080 --> 00:22:04,800 Speaker 4: not only we've seen those ripple effects effects food and effects, 412 00:22:04,920 --> 00:22:11,560 Speaker 4: transported effects manufacturing. It has a distribution. We were seeing 413 00:22:11,720 --> 00:22:15,960 Speaker 4: even declared search arges by the US Postal Service and 414 00:22:16,119 --> 00:22:20,320 Speaker 4: package delivery, so it's happening all over the economy and 415 00:22:20,400 --> 00:22:23,920 Speaker 4: at the same time, shifts are still not going through 416 00:22:24,160 --> 00:22:26,920 Speaker 4: those straits or Hormoncial the ones that were allowed through, 417 00:22:27,119 --> 00:22:30,800 Speaker 4: or some Cargner ships. No oil is moving at nothing 418 00:22:31,760 --> 00:22:35,040 Speaker 4: is happening at this moment, and even though there are 419 00:22:35,359 --> 00:22:40,080 Speaker 4: their negotiations going on, for the average consumer, that doesn't 420 00:22:40,359 --> 00:22:43,879 Speaker 4: particularly help. That's something in the future, that's not something certain. 421 00:22:44,119 --> 00:22:48,679 Speaker 4: And consumers were already feeling the pinch from the terraces, 422 00:22:48,800 --> 00:22:52,560 Speaker 4: they were feeling the pinch from various other disruptions going 423 00:22:52,600 --> 00:22:56,240 Speaker 4: on to this really is like almost a blow too 424 00:22:56,359 --> 00:22:58,400 Speaker 4: far as far as consumer congress goes. 425 00:22:59,320 --> 00:23:02,600 Speaker 1: And as we've seen the past, when gas prices go up, 426 00:23:03,480 --> 00:23:07,720 Speaker 1: consumer confidence comes down. And it looks like gas prices 427 00:23:07,760 --> 00:23:09,840 Speaker 1: here in the Los Angeles area, by the way, still 428 00:23:09,840 --> 00:23:12,240 Speaker 1: about fifty cents a gallon below the all time high 429 00:23:12,280 --> 00:23:15,239 Speaker 1: we saw back in twenty twenty two, but diesel hit 430 00:23:15,359 --> 00:23:18,040 Speaker 1: record highs again this week. It looks like it's been 431 00:23:18,760 --> 00:23:21,600 Speaker 1: leveling off the last couple of days, just slightly off 432 00:23:21,680 --> 00:23:23,720 Speaker 1: the all time high. We're looking at seven eighty three 433 00:23:23,760 --> 00:23:26,640 Speaker 1: a gallon now for diesel six won the average price 434 00:23:26,720 --> 00:23:30,080 Speaker 1: for regular six forty one the average price for premium, 435 00:23:30,160 --> 00:23:33,800 Speaker 1: and that certainly flies in the face of consumers here 436 00:23:33,960 --> 00:23:36,800 Speaker 1: filling up here in the Los Angeles area today, with 437 00:23:37,000 --> 00:23:39,440 Speaker 1: oil still hovering at around one hundred dollars a barrel, 438 00:23:39,480 --> 00:23:43,639 Speaker 1: it has come down from its peak recently now that 439 00:23:43,720 --> 00:23:47,080 Speaker 1: this ceasefire has kicked in. What's your outlook for where 440 00:23:47,359 --> 00:23:49,439 Speaker 1: for gas and oil prices that go from here? 441 00:23:50,960 --> 00:23:56,119 Speaker 4: Well, Unfortunately, disruptions that happened to the flow of oil 442 00:23:57,840 --> 00:24:01,360 Speaker 4: we'll effect go on weeks and months because what you're 443 00:24:01,520 --> 00:24:04,560 Speaker 4: seeing when oil is being shipped down is you're not 444 00:24:05,000 --> 00:24:08,720 Speaker 4: seeing the gas that you're going to be filled up 445 00:24:08,760 --> 00:24:12,359 Speaker 4: with the tanks tomorrow. You're seeing shortages that are going 446 00:24:12,400 --> 00:24:14,640 Speaker 4: to ripple for the next several months down. The good 447 00:24:14,720 --> 00:24:18,720 Speaker 4: means for the US and for consumers in LA is 448 00:24:18,800 --> 00:24:23,120 Speaker 4: that you know, California doesn't source its oil or its 449 00:24:23,240 --> 00:24:27,320 Speaker 4: gas for the Mid East, but it does create incredible 450 00:24:27,320 --> 00:24:30,400 Speaker 4: amount of pressures because when there's a shortge of oil 451 00:24:30,560 --> 00:24:35,320 Speaker 4: going to India, Japan, China, let alone Europe, that has 452 00:24:35,640 --> 00:24:39,360 Speaker 4: effects on the prices and the supplies for everywhere else. 453 00:24:39,480 --> 00:24:41,680 Speaker 4: Is it's not like we're going to be going back 454 00:24:41,800 --> 00:24:44,879 Speaker 4: to the oil and bargood days to the seventies, but 455 00:24:45,000 --> 00:24:48,560 Speaker 4: we're definitely going to see these ongoing pressures. And the 456 00:24:48,680 --> 00:24:52,240 Speaker 4: fact is that if you think about it, that we're 457 00:24:53,720 --> 00:24:56,800 Speaker 4: getting within record prices diesel, but at the same time 458 00:24:57,600 --> 00:25:00,320 Speaker 4: oil and only going up to maybe at most hundred 459 00:25:00,320 --> 00:25:02,880 Speaker 4: and twenty dollars of barrel one hundred and fifty or more, 460 00:25:03,480 --> 00:25:07,720 Speaker 4: or we seem as the record searchs. So there's plenty 461 00:25:07,800 --> 00:25:11,560 Speaker 4: more room potentially if destructions continue, for prices to go 462 00:25:11,720 --> 00:25:12,280 Speaker 4: back up again. 463 00:25:13,320 --> 00:25:16,160 Speaker 1: On They're live with the economist Kevin Clouden Fell about 464 00:25:16,160 --> 00:25:20,000 Speaker 1: the Milkin Institute in Santa Monica. So, taking in the 465 00:25:20,200 --> 00:25:24,000 Speaker 1: latest inflation reading which came in hunter than expected today, 466 00:25:24,119 --> 00:25:27,120 Speaker 1: and then the jobs report that came out a week 467 00:25:27,240 --> 00:25:29,560 Speaker 1: or so or ago, what do you think the Fed's 468 00:25:29,640 --> 00:25:32,399 Speaker 1: next move will be here? Will will short term interest 469 00:25:32,480 --> 00:25:34,000 Speaker 1: rates be coming down anytime soon? 470 00:25:35,480 --> 00:25:36,600 Speaker 2: Well, it's a tough. 471 00:25:36,480 --> 00:25:39,520 Speaker 4: One because that is kind of trapped. They're trying to 472 00:25:39,680 --> 00:25:44,080 Speaker 4: avoid the stagflation trap where you have a stagnant economy 473 00:25:44,280 --> 00:25:47,280 Speaker 4: at the same time as you have interest rates swimming. 474 00:25:47,400 --> 00:25:50,760 Speaker 4: For anybody who goes back and remembers the polls over 475 00:25:50,960 --> 00:25:56,879 Speaker 4: days of the early Reagan administration, he aggressively released interest 476 00:25:57,000 --> 00:26:01,080 Speaker 4: rates because he wanted to avoid that stagflation, right, now 477 00:26:01,520 --> 00:26:06,920 Speaker 4: there's the stagnant economy pulls in one direction, and inflation 478 00:26:07,119 --> 00:26:11,520 Speaker 4: hasn't gone completely prasy even in spite of everybody's pressures 479 00:26:11,560 --> 00:26:14,040 Speaker 4: the way it did in the late nineteen seventies early eighties. 480 00:26:14,680 --> 00:26:17,639 Speaker 4: So the likel that's probably going to stay where it is, 481 00:26:17,880 --> 00:26:23,360 Speaker 4: And they'd already made announcements that your postponing planned rate 482 00:26:23,560 --> 00:26:30,720 Speaker 4: decreases for at least projected one for the next few months. Obviously, 483 00:26:31,440 --> 00:26:33,560 Speaker 4: you know, when there is a new FED chair, we 484 00:26:33,640 --> 00:26:37,560 Speaker 4: would be likely to see a very strong interest in 485 00:26:38,440 --> 00:26:42,920 Speaker 4: adjusting course. But the truth is that that becomes a 486 00:26:43,040 --> 00:26:46,280 Speaker 4: lot easier if inflation is un'er control. So right now 487 00:26:46,359 --> 00:26:48,359 Speaker 4: I expect the FED is going to see where it 488 00:26:48,480 --> 00:26:53,359 Speaker 4: is and wait and see to see if the various 489 00:26:53,480 --> 00:26:56,920 Speaker 4: energy pressures and other price pressures is loft before it 490 00:26:57,000 --> 00:26:59,000 Speaker 4: makes another move on. 491 00:26:59,040 --> 00:27:02,640 Speaker 1: They're live with the economist Kevin Cloud, And certainly California 492 00:27:02,960 --> 00:27:06,000 Speaker 1: paying the highest gas prices at this point and has 493 00:27:06,080 --> 00:27:10,639 Speaker 1: for some time now, even higher prices consumers certainly getting 494 00:27:10,720 --> 00:27:15,280 Speaker 1: hit hard here. What about the southern California economy, you're 495 00:27:15,320 --> 00:27:18,639 Speaker 1: also an expert on that, as the rebuilding process that 496 00:27:18,720 --> 00:27:21,359 Speaker 1: continues in the fire zones I know you work closely 497 00:27:21,400 --> 00:27:23,760 Speaker 1: with the LA Area Chamber of Commerce and all the 498 00:27:23,920 --> 00:27:28,560 Speaker 1: big business groups here and trying to get things in 499 00:27:28,800 --> 00:27:31,760 Speaker 1: recovery mode here, which has been a painfully slow process 500 00:27:31,960 --> 00:27:33,840 Speaker 1: for a number of reasons. Can you give us your 501 00:27:34,040 --> 00:27:36,320 Speaker 1: assessment of what you're seeing on the local economy and 502 00:27:36,440 --> 00:27:38,000 Speaker 1: also on the rebuilding effort. 503 00:27:39,160 --> 00:27:41,800 Speaker 4: Well, I mean, the good ones is that the rebuilding 504 00:27:41,880 --> 00:27:46,160 Speaker 4: effort is absolutely continuing. And one of the things that's 505 00:27:46,240 --> 00:27:50,160 Speaker 4: actually positive to watch is the problem solving that's going 506 00:27:50,200 --> 00:27:53,920 Speaker 4: on in the number of cases where there's not been 507 00:27:54,080 --> 00:28:00,840 Speaker 4: effective coordination between federal, state, local, let alone shancel and 508 00:28:00,880 --> 00:28:03,159 Speaker 4: everybody else, that a lot of these problems are being 509 00:28:03,240 --> 00:28:07,440 Speaker 4: worked through. That catches that we are seeing as time 510 00:28:07,640 --> 00:28:11,920 Speaker 4: is on, more and more pressure on homer who lost 511 00:28:11,960 --> 00:28:15,920 Speaker 4: their homes to sell out because they just simply can't 512 00:28:16,000 --> 00:28:20,639 Speaker 4: wait to be various allowances that were housing allowances or 513 00:28:20,720 --> 00:28:23,680 Speaker 4: there for runts, many of them have been expiring. And 514 00:28:23,960 --> 00:28:27,200 Speaker 4: so the key question is what will happen to these 515 00:28:27,280 --> 00:28:30,600 Speaker 4: communities in terms of who's can be able to move 516 00:28:30,720 --> 00:28:33,200 Speaker 4: back in once the rebuilding is I mean, is they're 517 00:28:33,200 --> 00:28:35,600 Speaker 4: going to look the same And that's the real question. 518 00:28:36,359 --> 00:28:39,480 Speaker 4: At the same time economy, you think about the fact 519 00:28:39,520 --> 00:28:45,360 Speaker 4: that there are a number of reasons for construction level 520 00:28:45,400 --> 00:28:50,400 Speaker 4: and rebuilding, obviously between the upgoing World company, the Olympics 521 00:28:50,480 --> 00:28:53,640 Speaker 4: coming up in a couple of years, but at the 522 00:28:53,720 --> 00:28:58,719 Speaker 4: same time with issues such as the terriffs, obviously fold desruptions, 523 00:28:58,760 --> 00:29:03,360 Speaker 4: and someone in many ways keeping it from being quite 524 00:29:03,360 --> 00:29:07,120 Speaker 4: as robust an opportunity and as source for growth as 525 00:29:07,160 --> 00:29:10,240 Speaker 4: we'd like to see. So when you combined out to 526 00:29:10,320 --> 00:29:14,000 Speaker 4: the fact that some of the reports are from census 527 00:29:14,120 --> 00:29:17,520 Speaker 4: numbers that La County lost more people than any other 528 00:29:17,720 --> 00:29:20,160 Speaker 4: county in the country, you can look at it and 529 00:29:20,440 --> 00:29:24,960 Speaker 4: understand why people are concerned about being able to either 530 00:29:25,080 --> 00:29:27,960 Speaker 4: move back into their homes or burned down or find 531 00:29:28,040 --> 00:29:32,000 Speaker 4: places to live and thrive under the circumstances. 532 00:29:33,000 --> 00:29:35,320 Speaker 1: Kevin Cloud and thank you very much for taking the 533 00:29:35,400 --> 00:29:39,720 Speaker 1: call here at this afternoon with that comprehensive update and analysis. 534 00:29:39,760 --> 00:29:41,800 Speaker 1: As always, we appreciate it and look forward to the 535 00:29:41,920 --> 00:29:44,760 Speaker 1: Milk and Institute Global Conference coming up the next month 536 00:29:44,800 --> 00:29:46,920 Speaker 1: and hope to see you there. That is prominent Los 537 00:29:46,960 --> 00:29:50,000 Speaker 1: Angeles area based economist Kevin Cloud and fellow at the 538 00:29:50,080 --> 00:29:52,520 Speaker 1: Milkan Institute based in Santa Monica. We wish you a 539 00:29:52,560 --> 00:29:54,480 Speaker 1: great weekend, Kevin, and thank you again very much for 540 00:29:54,840 --> 00:29:56,120 Speaker 1: taking the call here this afternoon. 541 00:29:57,000 --> 00:29:58,840 Speaker 4: My pleasure in a good weekend to everyone. 542 00:29:59,280 --> 00:30:02,080 Speaker 1: Thank you very ver much. Seven ninety KBC MO Attack 543 00:30:02,120 --> 00:30:05,520 Speaker 1: of money continues here in seven ninety KABC. More businesses 544 00:30:05,560 --> 00:30:08,120 Speaker 1: and billionaires are checking out of California as well as 545 00:30:08,480 --> 00:30:11,280 Speaker 1: New York, with taxes, state regulations, and the cost of 546 00:30:11,360 --> 00:30:14,400 Speaker 1: living being big reasons that Z you're about this story. 547 00:30:15,160 --> 00:30:18,360 Speaker 1: KB home based in Westwood, you probably see their headquarters 548 00:30:18,400 --> 00:30:20,640 Speaker 1: building if you're stuck in that horrible traffic jam where 549 00:30:20,640 --> 00:30:24,920 Speaker 1: they're doing that subway construction there for the Westwood UCLA station. 550 00:30:25,040 --> 00:30:28,560 Speaker 1: That's where KB Holme's building is. And it looks like 551 00:30:28,720 --> 00:30:31,400 Speaker 1: KB home is going to be leaving that building and 552 00:30:31,720 --> 00:30:34,720 Speaker 1: their headquarters no longer will be there. They're going to 553 00:30:34,760 --> 00:30:37,600 Speaker 1: be heading to Phoenix. That's the big news, LA based 554 00:30:37,640 --> 00:30:40,920 Speaker 1: KB home moving its corporate headquarters back to Phoenix. That's 555 00:30:40,920 --> 00:30:43,480 Speaker 1: where it was, by the way, in the early nineteen sixties. 556 00:30:43,520 --> 00:30:47,560 Speaker 1: Of course, KB home was founded by Eli Broad of 557 00:30:47,640 --> 00:30:52,200 Speaker 1: Blessed Memory, and that's where they had been for many 558 00:30:52,240 --> 00:30:55,760 Speaker 1: many years there in Westwood. So we're watching another company 559 00:30:55,920 --> 00:30:59,160 Speaker 1: leave California. Across the street from KB home, by the way, 560 00:30:59,320 --> 00:31:02,280 Speaker 1: was Occidental Trollium, which left for Euston already some years ago. 561 00:31:03,080 --> 00:31:05,360 Speaker 1: Here in California, the possibility of a new so called 562 00:31:05,400 --> 00:31:08,000 Speaker 1: billionaires tax is causing an exodus of the wealthy, they're 563 00:31:08,000 --> 00:31:10,960 Speaker 1: not so wealthy and the formerly wealthy. Let's get an 564 00:31:11,040 --> 00:31:13,040 Speaker 1: update on what building aaires are up to these days 565 00:31:13,080 --> 00:31:16,560 Speaker 1: with veteran business journalist Charlie Krumpley, the editor of Billionaire 566 00:31:16,640 --> 00:31:20,600 Speaker 1: Reporter at billionairereporter dot com. Charlie, thank you very much 567 00:31:20,720 --> 00:31:22,560 Speaker 1: for taking the call here this afternoon. 568 00:31:23,800 --> 00:31:24,560 Speaker 2: Well, thank you, Frank. 569 00:31:24,640 --> 00:31:25,800 Speaker 5: Good good to hear from you. 570 00:31:26,360 --> 00:31:28,000 Speaker 1: Wonderful to have you with us. You, of course do 571 00:31:28,120 --> 00:31:33,640 Speaker 1: a comprehensive job covering billionaires and following the exodus of 572 00:31:33,720 --> 00:31:36,680 Speaker 1: these days of buillionaires, the movement of billionaires out of 573 00:31:36,720 --> 00:31:39,720 Speaker 1: California as well as New York. Give us an update 574 00:31:39,960 --> 00:31:41,400 Speaker 1: on how you see things here at the moment. 575 00:31:42,760 --> 00:31:47,720 Speaker 5: Yeah, it looks like the flow of billionaires out of 576 00:31:47,800 --> 00:31:51,720 Speaker 5: California is you know, it's really substantial. You look at 577 00:31:52,360 --> 00:31:56,280 Speaker 5: the three wealthiest people in California who are Larry Page 578 00:31:56,360 --> 00:31:59,880 Speaker 5: and Sergei Brand, the two founders of co founders of Google, 579 00:32:00,240 --> 00:32:03,239 Speaker 5: along with Mark Zuckerberg, the founder of Facebook. They've all 580 00:32:03,520 --> 00:32:06,520 Speaker 5: you know, bought properties out of the state and moved 581 00:32:06,600 --> 00:32:10,200 Speaker 5: business entities out of the state. And while they haven't 582 00:32:10,280 --> 00:32:16,120 Speaker 5: confirmed that they're leaving their California residents officially, they haven't 583 00:32:16,160 --> 00:32:21,080 Speaker 5: denied it either. And that's pretty significant because you know, 584 00:32:21,200 --> 00:32:25,760 Speaker 5: if you think about the billionaire tax, but the point 585 00:32:25,800 --> 00:32:29,440 Speaker 5: of the billionaire tax is to raise one hundred billion dollars. 586 00:32:29,960 --> 00:32:32,040 Speaker 5: But if you look at the taxes that these three 587 00:32:32,120 --> 00:32:34,000 Speaker 5: people I just mentioned, if you look at the taxes 588 00:32:34,400 --> 00:32:38,040 Speaker 5: they would pay, it comes to thirty six billion dollars. 589 00:32:38,400 --> 00:32:40,680 Speaker 5: You add that into some of the other billionaires who've 590 00:32:40,680 --> 00:32:43,520 Speaker 5: already left, and we're already looking at at least forty 591 00:32:43,560 --> 00:32:46,320 Speaker 5: billion dollars of that one hundred billion dollars that appears 592 00:32:46,400 --> 00:32:50,120 Speaker 5: to have fled the state. So there looks like they're 593 00:32:50,160 --> 00:32:52,160 Speaker 5: not going to get merely the money they say. And 594 00:32:52,240 --> 00:32:54,840 Speaker 5: what's you know, what's even worse is that if the 595 00:32:54,880 --> 00:32:59,360 Speaker 5: billionaires have, if they do leave in California, they won't 596 00:32:59,360 --> 00:33:03,160 Speaker 5: be paying permal income tax in the future. In California, 597 00:33:03,200 --> 00:33:06,520 Speaker 5: as you know, really relies on high income earners that 598 00:33:06,600 --> 00:33:09,520 Speaker 5: pay an outsized portion of its revenue. In fact, I 599 00:33:09,600 --> 00:33:13,080 Speaker 5: think billionaires account for something like close to a quarter 600 00:33:13,280 --> 00:33:16,600 Speaker 5: of all the income tax revenue a personal income tax 601 00:33:16,640 --> 00:33:17,920 Speaker 5: revenue the California gets. 602 00:33:18,440 --> 00:33:19,680 Speaker 4: So if you chase out. 603 00:33:19,600 --> 00:33:22,800 Speaker 5: The billionaires, are really hurting yourself or California is really 604 00:33:22,880 --> 00:33:24,000 Speaker 5: hurting itself in the future. 605 00:33:25,040 --> 00:33:26,840 Speaker 1: And we're waiting to see if this thing is going 606 00:33:26,920 --> 00:33:29,680 Speaker 1: to be on the ballot. But just the possibility of 607 00:33:29,760 --> 00:33:34,600 Speaker 1: this is causing this exodus. Is confiscatory tax on billionaires 608 00:33:34,960 --> 00:33:37,160 Speaker 1: which would be retroactive to the start of this year. 609 00:33:37,280 --> 00:33:41,440 Speaker 1: So it's no surprise that these folks are clearing out 610 00:33:41,560 --> 00:33:45,560 Speaker 1: ahead of this possibility. Do we know how this thing 611 00:33:46,200 --> 00:33:49,239 Speaker 1: looks as far as possibly getting on the ballot at 612 00:33:49,240 --> 00:33:51,480 Speaker 1: this point, I know there's some new efforts to try 613 00:33:51,560 --> 00:33:51,920 Speaker 1: to block it. 614 00:33:53,360 --> 00:33:58,080 Speaker 5: Yeah, they have until the end of April, the end 615 00:33:58,120 --> 00:34:01,360 Speaker 5: of this month to gather enough signatures to qualify for 616 00:34:01,480 --> 00:34:04,120 Speaker 5: the ballot. You know, we really don't know. It's not 617 00:34:04,240 --> 00:34:05,520 Speaker 5: really clear what, you know, how. 618 00:34:05,520 --> 00:34:05,920 Speaker 2: Many they have. 619 00:34:06,080 --> 00:34:09,879 Speaker 5: They claim that they'll have no problem, you know, meeting 620 00:34:09,960 --> 00:34:12,480 Speaker 5: the threshold. And as you know, I think some of 621 00:34:12,560 --> 00:34:15,560 Speaker 5: the some of the polling suggests that if it makes 622 00:34:15,600 --> 00:34:18,480 Speaker 5: it to the ballot, that voters would approve it, so 623 00:34:18,640 --> 00:34:20,919 Speaker 5: at least as of now, so it looks like there's 624 00:34:20,920 --> 00:34:24,520 Speaker 5: a there's a really good possibility that the billionaire tax 625 00:34:24,600 --> 00:34:28,040 Speaker 5: will go into effect. And as you mentioned, the provision 626 00:34:28,920 --> 00:34:32,320 Speaker 5: or you know, a crucial provision says that if you 627 00:34:32,600 --> 00:34:35,080 Speaker 5: were a resident of the state on January one of 628 00:34:35,160 --> 00:34:37,640 Speaker 5: this year, of twenty twenty six, he'd be subject to 629 00:34:37,719 --> 00:34:40,640 Speaker 5: the tax. And already that's getting you know, a fair 630 00:34:40,680 --> 00:34:44,560 Speaker 5: amount of push at because you know, you know, the 631 00:34:44,960 --> 00:34:47,080 Speaker 5: people are saying that you can't you know, kind of 632 00:34:47,880 --> 00:34:50,759 Speaker 5: retroactively tax people, and that's in effect what it would be. 633 00:34:51,320 --> 00:34:54,200 Speaker 5: So you know that that provision will get challenged. But nonetheless, 634 00:34:54,280 --> 00:34:57,520 Speaker 5: if that provision stands, gosh, a lot of a lot 635 00:34:57,560 --> 00:34:59,680 Speaker 5: of the billionaires who have fled might end up having 636 00:34:59,719 --> 00:35:00,479 Speaker 5: to pay the tax. 637 00:35:01,360 --> 00:35:04,160 Speaker 1: And of course, with the change in leadership there in 638 00:35:04,280 --> 00:35:06,840 Speaker 1: New York with the new socialist mayor there looks like 639 00:35:07,000 --> 00:35:10,359 Speaker 1: you follow things on a national scale when it comes 640 00:35:10,400 --> 00:35:13,680 Speaker 1: to building airs are more building aaires fleeing from New 641 00:35:13,800 --> 00:35:16,359 Speaker 1: York and heading down to Miami, which by the way, 642 00:35:16,440 --> 00:35:17,839 Speaker 1: is the only place where you have to go north 643 00:35:18,120 --> 00:35:20,640 Speaker 1: to be in the South because there's so many people 644 00:35:20,680 --> 00:35:22,799 Speaker 1: from New York and up north now in the South 645 00:35:22,840 --> 00:35:23,439 Speaker 1: Florida area. 646 00:35:24,440 --> 00:35:26,239 Speaker 5: Yeah, yeah, that's right. Yeah, it does look that way. 647 00:35:26,239 --> 00:35:28,120 Speaker 5: And by the way, you're absolutely right. We did a 648 00:35:28,239 --> 00:35:33,200 Speaker 5: list a few months ago the fifteen wealthiest people in Florida, 649 00:35:33,320 --> 00:35:37,800 Speaker 5: and fourteen of the fifteen were basically immigrated from other states. 650 00:35:37,840 --> 00:35:41,000 Speaker 5: In other words, they were already successful, they were already billionaires, 651 00:35:41,320 --> 00:35:43,759 Speaker 5: and they fled to Florida, which is you know, has 652 00:35:44,040 --> 00:35:47,120 Speaker 5: no personal income tax. So yeah, and a lot of 653 00:35:47,160 --> 00:35:50,480 Speaker 5: those folks were from the northeast, although a few of 654 00:35:50,560 --> 00:35:53,960 Speaker 5: them also came from California. Now you asked about New York. Yeah, 655 00:35:54,080 --> 00:35:58,600 Speaker 5: And the new mayor there, Zor and Mom Dolly, has 656 00:35:59,719 --> 00:36:03,759 Speaker 5: at for increases in the corporate income tax, and he's 657 00:36:03,800 --> 00:36:06,920 Speaker 5: gotten some pushback from the state from the governor Taffy local. 658 00:36:07,040 --> 00:36:11,279 Speaker 5: But he's also threatening to raise local property taxes nine 659 00:36:11,320 --> 00:36:14,359 Speaker 5: and a half percent if he doesn't get his way 660 00:36:14,440 --> 00:36:17,160 Speaker 5: with the other taxes. And so yeah, so people are 661 00:36:17,200 --> 00:36:21,279 Speaker 5: starting to leave. At least Apollo Global Management, which is 662 00:36:21,360 --> 00:36:24,520 Speaker 5: really a big company on Wall Street, they announced recently 663 00:36:24,600 --> 00:36:27,760 Speaker 5: that they were looking to establish a second headquarters outside 664 00:36:27,760 --> 00:36:30,279 Speaker 5: of New York City. They're looking at not surprising late 665 00:36:30,320 --> 00:36:33,960 Speaker 5: Texas or Florida, two states that don't have a personal 666 00:36:34,040 --> 00:36:37,279 Speaker 5: income tax, and they said that they just openly said 667 00:36:37,320 --> 00:36:39,879 Speaker 5: that they assumed that most of their future growth will 668 00:36:39,920 --> 00:36:43,000 Speaker 5: be in the new second headquarters. And then last Sunday, 669 00:36:43,040 --> 00:36:47,040 Speaker 5: there was an interesting radio show locally in New York 670 00:36:47,239 --> 00:36:51,200 Speaker 5: in which the head of a local business group said 671 00:36:51,640 --> 00:36:55,440 Speaker 5: that he's gotten word from a lot of people, a 672 00:36:55,520 --> 00:36:57,640 Speaker 5: lot of his members in the business group, that they're 673 00:36:57,840 --> 00:37:02,320 Speaker 5: also like Apollo, they're also looking for new headquarters in 674 00:37:02,760 --> 00:37:07,560 Speaker 5: other states. And I'm looking for the actual quote, but yeah, 675 00:37:07,600 --> 00:37:14,520 Speaker 5: he said that the fact is that corporation continue to 676 00:37:16,160 --> 00:37:21,200 Speaker 5: look for, you know, homes in other states, and yeah, 677 00:37:21,280 --> 00:37:25,000 Speaker 5: it's yeah, so it's not surprising that, you know, to 678 00:37:25,080 --> 00:37:27,839 Speaker 5: see that a number of businesses, like maybe KB Homes 679 00:37:27,840 --> 00:37:30,240 Speaker 5: were looking for greener pastors. 680 00:37:30,640 --> 00:37:32,800 Speaker 1: Yeah, and that's something. And of course, so many of 681 00:37:32,840 --> 00:37:36,680 Speaker 1: these billionaires are philanthropists. You, of course do a fantastic 682 00:37:36,800 --> 00:37:40,960 Speaker 1: job there at Billionaire Reporter covering all things of buillionaires 683 00:37:41,000 --> 00:37:44,840 Speaker 1: and one billionaires. Still here, Steve Bomber, who owns the 684 00:37:44,920 --> 00:37:47,600 Speaker 1: Clippers I see here, according to your reporting, gave one 685 00:37:47,680 --> 00:37:51,360 Speaker 1: hundred and ten million dollars to train social workers. So 686 00:37:52,080 --> 00:37:57,600 Speaker 1: Steve Bomber involved in philanthropy here and social issues. He's 687 00:37:57,800 --> 00:37:59,799 Speaker 1: one of the leaders in that space. 688 00:37:59,840 --> 00:38:03,880 Speaker 5: Now, yeah, he's yeah, his corporate armor. Excuse me, the 689 00:38:03,960 --> 00:38:08,200 Speaker 5: philanthropic arm gate three big grants to local universities. It 690 00:38:08,440 --> 00:38:12,200 Speaker 5: was let me see, cal State La got forty eight million, 691 00:38:12,520 --> 00:38:15,879 Speaker 5: UCLA got thirty three million, and cal State Domingus Hills 692 00:38:15,920 --> 00:38:18,640 Speaker 5: got twenty nine million. And this money is to help 693 00:38:18,840 --> 00:38:24,320 Speaker 5: them help those schools support students and programs that you know, 694 00:38:24,680 --> 00:38:28,919 Speaker 5: encourage their students to get you know, degrees in psychology 695 00:38:29,040 --> 00:38:32,319 Speaker 5: and social work and the like. The La Times had 696 00:38:32,360 --> 00:38:34,880 Speaker 5: a story that said that, I think it was fifty 697 00:38:34,960 --> 00:38:39,000 Speaker 5: five of California's fifty eight counties say shortages of these 698 00:38:39,120 --> 00:38:42,120 Speaker 5: kinds of workers psychiatrist, psychologists, social workers. 699 00:38:41,880 --> 00:38:42,279 Speaker 4: And the like. 700 00:38:42,719 --> 00:38:44,920 Speaker 5: And one of the reasons is that, you know, the 701 00:38:45,160 --> 00:38:48,279 Speaker 5: cost of getting a degree is, as you know, fairly high, 702 00:38:48,840 --> 00:38:55,319 Speaker 5: and the wages for these workers usually aren't particularly high. 703 00:38:55,719 --> 00:38:58,920 Speaker 5: So I think Balmber's thought is that by by supporting 704 00:38:59,000 --> 00:39:01,879 Speaker 5: them in school and by giving them grants and scholarships 705 00:39:01,920 --> 00:39:04,800 Speaker 5: and the like, it'll make it easier for the schools 706 00:39:04,960 --> 00:39:10,839 Speaker 5: to attract and train social workers for the state. But yeah, 707 00:39:10,880 --> 00:39:15,200 Speaker 5: Bomber is. Bomber's phenomenally wealthy. He's got more than one 708 00:39:15,280 --> 00:39:19,839 Speaker 5: hundred and twenty billion dollars and he is. Yeah, he's 709 00:39:19,840 --> 00:39:21,520 Speaker 5: a pretty big philanthropist unfortunately. 710 00:39:22,320 --> 00:39:24,800 Speaker 1: Charlie, thank you very much for that thorough update on 711 00:39:24,880 --> 00:39:27,680 Speaker 1: all things at Billionaires. Let's stay in touch and do 712 00:39:27,800 --> 00:39:30,279 Speaker 1: this again very soon. Charlie Crumpley, editor of Building Air 713 00:39:30,360 --> 00:39:33,840 Speaker 1: Reporter at Building Airreporter dot com, minutes away from the 714 00:39:33,920 --> 00:39:38,439 Speaker 1: splashdown of Artemis two capsule the Orion Capsule, and I'll 715 00:39:38,440 --> 00:39:40,520 Speaker 1: be back with more four Monday, right here at seven 716 00:39:40,600 --> 00:39:40,880 Speaker 1: ninety