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Speaker 1: Welcome to HATA Money. I'm Joel, I'm Matt, and today

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Speaker 1: we're talking just in case planning, consumer cast systems, and

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Speaker 1: credit scores crashing. That's right, buddy.

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Speaker 2: This is our Friday Flight, a little collection of some

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Speaker 2: of the best headlines out there, the ones that pertain

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Speaker 2: to your personal finances.

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Speaker 1: We hope everyone has had a good week so far. Yeah,

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Speaker 1: it's been a good one for me, Matt. Nice and

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Speaker 1: lovely weather, although still too hot. I'm ready for real fall.

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Speaker 1: Come on, yeah, real fall, let's pick it come soon.

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Speaker 1: Let's protest? Can we can you protest that? Yeah? Why not?

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Speaker 1: Who listens? You can protest anything? Yeah, that's true. Okay,

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Speaker 1: So one thing I wanted to highlight a smart financial

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Speaker 1: move my daughter made the other Day's kind of like

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Speaker 1: a small thing. But you're like, ah, man, they're learning,

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Speaker 1: they're listening. But she by the dip. She bought the dip. Nice. No, nice, Alma. No,

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Speaker 1: she's not investing yet. I'm investing on her behalf in

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Speaker 1: five point nine plans, which might turn in the Rath

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Speaker 1: dollar someday. We'll see. But no, what she did, this

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Speaker 1: is a little shopping decision she made. She and my

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Speaker 1: wife Emily. They stopped by a vented shop after school.

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Speaker 1: There's a cool little vented shop that's not I know,

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Speaker 1: which is the one you run past? Yeah, right all

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Speaker 1: the time. I've actually never stopped foot in there. But

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Speaker 1: they keep putting stuff out, like out onto the curb,

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Speaker 1: and it keeps catching my eye and I'm like, I

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Speaker 1: need to go check that out. I step in when

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Speaker 1: I get tired of running it, and then they're like,

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Speaker 1: you're sweaty, get out of here. So she went in

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Speaker 1: there and she saw an old cabbage patch doll. And

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Speaker 1: if you don't know what a cabbage patch doll is

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Speaker 1: like old, look it up.

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Speaker 2: Old school, like one of the ogs from the eighties. Yes,

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Speaker 2: I'm assuming that's when they were initially. Oh yeah berthed right, yes, no,

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Speaker 2: you can actually go. We went this spring back to

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Speaker 2: the cabbage patch right what they call the nursery, general

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Speaker 2: hospital or whatever it is. Yeah, and cabbage patch doll

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Speaker 2: get get birthed from a tree.

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Speaker 1: It's a weird like that's exactly how they do it. Yep, yep,

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Speaker 1: just like that. That's how you were made. Son. Uh, Well,

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Speaker 1: I had one of these dolls when I was growing up.

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Speaker 1: Do you wanna do you want to venture a guess

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Speaker 1: as to what my cabbage patch doll's name was? You

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Speaker 1: had an actual cabbach. I thought they were mostly for

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Speaker 1: the little girl. Some boys have them too, I really did.

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Speaker 1: I didn't know that. Don't shame me. I thought the

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Speaker 1: boy dolls were. I liked him the my buddies, you

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Speaker 1: remember my buddy that might have been after the cabbage

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Speaker 1: I don't know wherever I go he goes. And then

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Speaker 1: they came out with a kid's sister of the next year.

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Speaker 1: Oh that's right, Yeah, kids sister. They have boy cabbage

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Speaker 1: patch dolls. And okay, I've got all the accessories and

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Speaker 1: stuff my cabbage patch Yeah no, no clue. Dick Rubin Okay,

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Speaker 1: that's a great name for a cabbage patch doll, isn't it.

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Speaker 1: Is he also like a hip hop art I think

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Speaker 1: my mom still has Is he a producer? For sure?

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Speaker 1: For sure? He was a mobile multi media mobile. Okay,

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Speaker 1: But so mine was named Rick Ross. So back to

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Speaker 1: my story, I had a cabbage Patch stal This runs

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Speaker 1: in the family. It's this place in Georgia, rural Georgia.

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Speaker 1: You can go you can actually see the cabbage patch dolls.

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Speaker 1: But Selma sees the vintage one and she's like, I

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Speaker 1: want this nice, And she's like, you know what, though,

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Speaker 1: I'm not sure how much I want this. I think

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Speaker 1: it was twenty five dollars. Do I want it? Twenty

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Speaker 1: five dollars.

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Speaker 2: Kind of pricey for an old doll Yeah, no, it

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Speaker 2: it is, but I guess like the vintage ones actually

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Speaker 2: go for more, and the new ones are actually kind

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Speaker 2: of expensive.

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Speaker 1: Like we went in the spring, I was like, oh much, really,

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Speaker 1: I forget they have different tears, right, So some of

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Speaker 1: them were like fifty bucks and some of them were

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Speaker 1: like one hundred and fifty bucks. They got really expensive.

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Speaker 1: That twenty five bucks actually seems reasonable based on we saw.

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Speaker 1: And so she was like, I'm gonna, actually, mom, can

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Speaker 1: we come back tomorrow. I'm going to think it over.

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Speaker 1: So she instituted the twenty four hour rule to decide

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Speaker 1: whether or not she actually wanted to spend twenty five

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Speaker 1: bucks on this doll She did go back the next day.

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Speaker 1: She bought it. She's glad she did it, but that

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Speaker 1: only like confirms I think that she made the right move.

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Speaker 1: She waited it out to see, and this is I

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Speaker 1: think something more of us should be saying I want

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Speaker 1: that thing, but how bad do I want it? I

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Speaker 1: don't know. Let me sleep on it, and I don't

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Speaker 1: think I'll go back to that website or I'll go

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Speaker 1: back to that store tomorrow. And I realized that can

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Speaker 1: be inconvenient sometimes, but it will in all likelihood prevent

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Speaker 1: us from making some poor choices that we come to

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Speaker 1: regret later on. Yep, I think that's awesome. I think, yeah,

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Speaker 1: I totally agree.

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Speaker 2: More of us should implement that, like a cool down

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Speaker 2: period where we just like step away from the item,

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Speaker 2: rethink our life choices exactly. So I was like, I

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Speaker 2: was proud of her. Yeah, you should be a man.

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Speaker 1: But hey, let's talk about is this related at all?

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Speaker 2: No, it's not related. No segue here, Let's talk about

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Speaker 2: tariffs the generally speaking. I feel like the impact of

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Speaker 2: teriffs on the American economy it's been muted, at least

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Speaker 2: so far, but we are starting to see some price increases,

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Speaker 2: including a recent inflation uptick that seems to be connected.

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Speaker 1: To tariff policy.

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Speaker 2: I think that's one of the concerns that the FED

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Speaker 2: had when it came to lowering rates, is that.

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Speaker 1: Oh, But on one hand.

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Speaker 2: We're seeing inflation maybe start to take back up. But

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Speaker 2: on the other hand, I think they're certainly more concerned

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Speaker 2: with the soft job market.

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Speaker 1: It's the needle they have to threat because they have

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Speaker 1: that tool mandate. It's a tough, tough job, I think.

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Speaker 2: But the Supreme Court they're going to hear the case

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Speaker 2: four in the case against tariff mandates by the President soon.

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Speaker 2: But specifically, if you like coffee, I would pray for

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Speaker 2: a quick end to the tariff policy madness. Fifty percent

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Speaker 2: terariffs have been imposed against Brazil. These were implemented for

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Speaker 2: largely political and for relational reasons, but they have led

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Speaker 2: to quick run ups in the cost of raw beans

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Speaker 2: coffee beans.

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Speaker 1: We get something like a third of our coffee beans

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Speaker 1: from Brazil in particular, so that's gonna have a big

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Speaker 1: implant impact on the market.

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Speaker 2: It's is it the Robusto genus or whatever oly beans?

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Speaker 1: Or is it which are those better or worse? I forget?

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Speaker 1: Or is it the Arab, Arabic or Arabica. I think

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Speaker 1: those are the superior beans. Yeah, I forget.

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Speaker 2: My favorite beans come from Ethiopia, So oh, what's the

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Speaker 2: terrific against Ethiopia? I should looked that up no idea

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Speaker 2: right now, it's probably like ninety per.

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Speaker 1: It's probably changed sixteen times in the past few months,

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Speaker 1: that's true.

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Speaker 2: But generally speaking, we've seen price increases of twenty percent

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Speaker 2: or so on coffee beans. Prices could obviously get even higher.

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Speaker 2: But I think this means we're gonna start We're gonna

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Speaker 2: have to start making some you know, Like folks are

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Speaker 2: always like, oh, should I take my luncheon? It seems

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Speaker 2: like such a pedestrian move right, Like it's not very

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Speaker 2: a very attractive thing as opposed to like going out

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Speaker 2: to eat. But this is a case where I think

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Speaker 2: making a cup of coffee at home it's going to

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Speaker 2: become more and more attractive. And coffee specifically is just

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Speaker 2: an example of something that we can't really produce here

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Speaker 2: in the United States. The coffee beans that we make

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Speaker 2: are of genus tarrapicus. Yeah like that, but I don't

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Speaker 2: want to Hawaii. It doesn't make it home solid.

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Speaker 1: Why that's right, But not enough to fill all our

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Speaker 1: cups in the morning in Hawaiian coffee.

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Speaker 2: So they're all keep they're keeping all the really good

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Speaker 2: stuff for themselves. They send over like the partially ten

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Speaker 2: percent comans.

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Speaker 1: Yeah, I brought you back some real hundred percent Hawaiian coffee,

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Speaker 1: and it was I told you it was quite expensive,

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Speaker 1: so demired, I must really like you if I brought

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Speaker 1: back one hundred percent? Do you really like me? Yeah?

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Speaker 1: I really appreciate it. I brewed. I brewed the heck

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Speaker 1: out of that coffee. It is. It is just shocking

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Speaker 1: how and I guess it makes sense why it's so

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Speaker 1: expensive there, and it's it's just much cheaper in some

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Speaker 1: other countries. But I guess I'm going to be angling

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Speaker 1: maybe for some Costa Rican coffee mat instead of Brazilian coffee.

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Speaker 1: But it's going to impact the entire coffee market. And

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Speaker 1: then has got some good stuff. Specifically, there's some single

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Speaker 1: origin from ald oh Man. I don't even think about that.

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Speaker 2: You can specifically choose. I've never thought about the single

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Speaker 2: origin stuff though. There's from a tariff's perspective, and so

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Speaker 2: there's there's a Peru Costa Rica they've got oh Man.

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Speaker 1: Yeah, the Brazilian coffee is going to be a luxury

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Speaker 1: good soon.

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Speaker 2: I'm curious if they've seen those sell out, because folks

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Speaker 2: are one of those prices are holding steady and therefore

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Speaker 2: just driving demand, let's just reduce in the supply of

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Speaker 2: the coffee on the actual shelves.

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Speaker 1: Fascinating. It is so fast, it's crazy, all the domino

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Speaker 1: effect of the tariffs, and then write the on that note,

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Speaker 1: like the ex inventory that many US companies had purchased,

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Speaker 1: it is starting to run thin, which means that new

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Speaker 1: orders are going to cost individuals more because of these terraffs.

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Speaker 1: And I don't see a way in which most of

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Speaker 1: the price increases are not going to be passed on

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Speaker 1: to customers. There have been like some people saying, oh, well,

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Speaker 1: maybe the companies are just gonna eat the tariffs and

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Speaker 1: they're not going to pass on price hikes, but that,

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Speaker 1: especially in low margin industries, that's just not possible. And

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Speaker 1: so like shoe companies are are one example of a

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Speaker 1: sector that is now feeling the price hikes with each

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Speaker 1: order that they place. And other companies now are being

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Speaker 1: accused of evading tariffs by undervaluing imports. So it just

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Speaker 1: kind of creates a bunch of crummy reactions right where

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Speaker 1: companies feel like they have to try to minimize the

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Speaker 1: impact of tariffs by lying about the value of the

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Speaker 1: of the goods that their import.

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Speaker 2: Under reporting the goods. So yeah, yeah, I saw that

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Speaker 2: whirlpool specifically. It was accusing some of the figures like, hey,

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Speaker 2: how like we've seen some significant declines on some of

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Speaker 2: these guys, but they're the same number of boat what's

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Speaker 2: coming across what's going on here?

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Speaker 1: Yeah, yeah, which I get. It feels starts to feel unfair.

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Speaker 1: And then you know, another surprise bill that's hitting individual

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Speaker 1: consumers directly is coming from online shopping. It's becoming more

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Speaker 1: of a regular currents that you get like a bill

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Speaker 1: after the fact that you weren't expecting. Many international post

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Speaker 1: offices and companies are suspending shipping to the US for

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Speaker 1: the time being. That there's this little Australian boutique, clothing

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Speaker 1: boutique that Emily likes and I got something for a

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Speaker 1: while back, and I went back to their site just

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Speaker 1: to check it out, and they were like, hey, guess what,

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Speaker 1: for the time being, we're not shipping to the United

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Speaker 1: States at all until we kind of figure out what's

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Speaker 1: going on with the tariffs. And it is just this

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Speaker 1: continual moving target that they have found it safest to

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Speaker 1: cut themselves off from even selling to American citizens, So

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Speaker 1: be careful buying internationally until more clarity comes on these tariffs.

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Speaker 1: But I just hope even if tariff policy remains somewhat

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Speaker 1: in place, that we just kind of settle on something

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Speaker 1: and it's not a whack a mole sort of thing anymore. Yah.

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Speaker 2: Yeah, No, I think that's one of the biggest implications.

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Speaker 2: Like on an individual level, it leads to and they

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Speaker 2: cided different stories of folks who were getting Yeah, they're

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Speaker 2: getting slapped with like these tariff bills that weren't paid

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Speaker 2: at the port. And so therefore you as the consumer

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Speaker 2: before it's like, hey, you can either pay for this

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Speaker 2: now or once you receive the item, you can pay

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Speaker 2: for it right there on the spot. And that's just

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Speaker 2: going to lead to people not making these purchases. And

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Speaker 2: so as individuals it decreases expenses and small business owners

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Speaker 2: from a small business standpoint, you don't invest because you

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Speaker 2: are uncertain what the future holds. And ultimately, eventually, at

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Speaker 2: some point, this is going to lead to the economy

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Speaker 2: grinding to a halt as folks are kind of like,

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Speaker 2: what is about to happen because there is no uncertainty.

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Speaker 2: And I'm sure that's something that that the current administration

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Speaker 2: is wanting to avoid. Actually, that's one of the reasons

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Speaker 2: why why Trump was pushing so hard for the rate cuts,

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Speaker 2: because what does that do. It juices the economy, right,

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Speaker 2: and so that allows him, I think a little more

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Speaker 2: runway to be able to use these terrors from a

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Speaker 2: political negotiation standpoint. As to whether or not he will succeed,

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Speaker 2: we shall see. But on a related personal finance note CNN,

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Speaker 2: they were advocating for a just in case financial plan,

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Speaker 2: and they contend that with this economic uncertainty that we're

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Speaker 2: all experiencing, that it's wise to have plans for unpleasant

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Speaker 2: potential scenarios. And some folks might find that to be depressing,

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Speaker 2: but I think the exact opposite. I think the more

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Speaker 2: that you can game plan these different nasty scenarios that

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Speaker 2: might unfold, the easier it's going to be to prepare.

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Speaker 1: So what that.

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Speaker 2: Means is keep an eye on your expenses. I would say,

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Speaker 2: to check your insurance, make sure that you are properly

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Speaker 2: insured and certainly well I guess this goes with expenses,

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Speaker 2: but make sure we talk about a bare bones budget.

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Speaker 2: That is something that we highly suggest. We've heard that

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Speaker 2: thing back up, We've dedicated an entire episode. I forget

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Speaker 2: what number it is, but I'll link to it in

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Speaker 2: the show notes for this episode when we talked about

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Speaker 2: what a bare bones budget is. But also from and

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Speaker 2: from an investing standpoint, you might want to think through

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Speaker 2: how you would react to just a big stock market

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Speaker 2: drops and just make sure that you are invested accordingly

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Speaker 2: that you can if you've got a long enough runway,

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Speaker 2: all right, I can handle the volatility, the ups and

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Speaker 2: the downs.

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Speaker 1: But maybe not.

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Speaker 2: If you are close closer to retirement, or if you

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Speaker 2: are an early retiree. But ultimately, I think just in case,

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Speaker 2: financial plan is something that you hope you don't have

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Speaker 2: to use, but it is a smart exercise and it's

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Speaker 2: certainly great to have when the need arises. It's like

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Speaker 2: having that first aid kit. You don't get it thinking

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Speaker 2: like I can't wait to use this. You get it thinking,

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Speaker 2: all right, this is something that's I'm going to have

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Speaker 2: on hand because I'm gonna I am an adult and

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Speaker 2: I want to be prepared.

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Speaker 1: So that makes me think of when we were. When

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Speaker 1: I was in the woods a couple months ago with

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Speaker 1: some of my friends and a rock hit the Achilles

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Speaker 1: of one of one of the guys on the trip,

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Speaker 1: and it was pretty nasty. But we had fortunately a

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Speaker 1: nurse practitioner with us, and of course he had all

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Speaker 1: the proper accouterments, and someone else had brought some whiskey

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Speaker 1: that you could pour on to disinfect the wound. It

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Speaker 1: was a waste of whiskey, but it actually worked out.

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Speaker 1: It was good.

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Speaker 2: I would have been like, no, that's fine, pretty sure,

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Speaker 2: there's no nasty germs on the rock.

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Speaker 1: We're in the middle of nowhere, right, yeah, which he

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Speaker 1: probably would have been fine. But man, having that needle

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Speaker 1: and thread and sewing it up while, I mean, it

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Speaker 1: was pretty awesome to watch. I can't lie. Yeah, but

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Speaker 1: just that, yeah, that being prepared, right, having it just

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Speaker 1: in case. He was like, most every other time I've

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Speaker 1: gone out in the woods, I've never needed this. I've

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Speaker 1: always had it, and I've just never used it before.

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Speaker 1: This was the first time. It makes makes think of

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Speaker 1: another friend who.

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Speaker 2: Makes it makes me before you move on. It makes

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Speaker 2: me wonder if folks who are in the medical industry,

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Speaker 2: and in particular first responders, EMTs. It makes me wonder

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Speaker 2: if they tend to be more financially prepared, because if

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Speaker 2: that's how you approach your work and how you sort

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Speaker 2: of see physical activity and the risks involved there. I mean,

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Speaker 2: certainly it would be very easy to translate that into

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Speaker 2: your personal finances.

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Speaker 1: It also makes me think of a friend who, by

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Speaker 1: the way, when he goes to a restaurant, he's always

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Speaker 1: like game planning. One of some bad dude comes in

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Speaker 1: here and you know, starts making threats or whatever, like

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Speaker 1: what's what am I gonna do? Is there table I

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Speaker 1: can kick cober and hide behind? Is there an exit

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Speaker 1: quick to my left or something like that? And I

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Speaker 1: think I always kind of laugh at that, but I.

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Speaker 2: Was gonna say that was me until you talked about

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Speaker 2: the table, because, like I got I also always do that,

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Speaker 2: like whenever kid and I, like we went out for

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Speaker 2: a date night last night, and I always prefer the

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Speaker 2: seat where I can see the front door, because if

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Speaker 2: someone comes in there and it's act at all acts,

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Speaker 2: it all crazy.

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Speaker 1: I want to be able to get you know, have

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Speaker 1: a game plan. Yeah, And that's exactly what you're talking

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Speaker 1: about here. The game plan, but for your finance is

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Speaker 1: like is it likely to occur? No, but like if

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Speaker 1: it does, you'll be ready. You want to be prepared, Yeah,

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Speaker 1: I was talk about investing for a second, Matt, we

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Speaker 1: talked about Robin Hood for a second. Last week. They

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Speaker 1: have a new fund. They're starting up a new fund

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Speaker 1: that is going to allow you to invest in startups,

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Speaker 1: companies that are just getting launched and so that they're

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Speaker 1: so called venture fund is going to allow individual investors

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Speaker 1: on the platform to make money on the hottest startups

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Speaker 1: before they go public, which sounds so awesome, like, Yeah,

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Speaker 1: you're gonna give me access to those Marc Antreesen companies,

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Speaker 1: right the Ubers before they were Uber, before anybody knew

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Speaker 1: who they were. Cutting edge, give me some of that. Well,

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Speaker 1: when you look at the numbers funding startups, it doesn't

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Speaker 1: typically work out very well. Morning Star and I quote

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Speaker 1: said this fund could spell disaster for investors. Basically, they

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Speaker 1: highlighted the structure of this fund, the likely fees investors

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Speaker 1: are going to pay, and Robinhood's inexperience in this space.

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Speaker 1: And it's cool, like the proliferation of investment options that

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Speaker 1: we have, you can invest in almost anything under the

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Speaker 1: sun these days, but we think disciplined investors are going

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Speaker 1: to avoid sexy funds like this. They're going to opt

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Speaker 1: for the boring route to build wealth instead, I think

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Speaker 1: this is like the candy version of what you should

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Speaker 1: be including in your diet. Yeah, maybe a small amount

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Speaker 1: on occasion is good, but like we're all for the

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Speaker 1: meat and the potatoes and the veggies, right, And that's

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Speaker 1: really index funds when it comes down to it, that's

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Speaker 1: going to give you your whole balanced diet. And you

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Speaker 1: just don't really need anything like this in your life.

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Speaker 1: That's true. Okay.

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Speaker 2: So on a related note, one of the goat investing writers,

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Speaker 2: Jason's Wig, he had an excellent article about why you

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Speaker 2: don't want to trade like a member of Congress. In

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Speaker 2: his first line in that piece, he lays out the

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Speaker 2: problem and he writes, the peak of a bull market

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Speaker 2: and the bottom of a bear market have one thing

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Speaker 2: in common. Buy and hold investing starts to feel like

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Speaker 2: a total waste of time, which is that's like the.

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Speaker 1: Pushback I feel like we hear, especially now, they're like,

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Speaker 1: I could have made so much more money doing all

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Speaker 1: this other stuff. Matt Joel, why were you telling me

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Speaker 1: to do the basic boring thing?

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Speaker 2: Yeah, it could be really tough to watch others out

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Speaker 2: there crush it, in particular while they are investing in

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Speaker 2: what seems like a more haphazard way. Not just in

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Speaker 2: a haphazard way, but in a very insider trading kind

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Speaker 2: of way, because we've seen this with politicians both on

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Speaker 2: the right and the left, when it comes to the

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Speaker 2: information that they have access to, and it's like they're

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Speaker 2: essentially day trading, Like it's like it's their job, their

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Speaker 2: actual job, what they should be doing is legislative, but

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Speaker 2: instead what they're doing is making trades.

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Speaker 1: On the daily I guess. I mean, they haven't done

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Speaker 1: much legislating, so maybe they feel like they've got extra

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Speaker 1: time on their hands.

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Speaker 2: I know. Well, so that's I think that's the biggest

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Speaker 2: That's one of the things that bothers me the most.

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Speaker 1: First of all.

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Speaker 2: I mean, I think members of Congress they should be

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Speaker 2: forced to not liquidate, but either put their folio under

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Speaker 2: lock and key while they are in Congress, while they

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Speaker 2: are on special committees, or you are just invested in

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Speaker 2: the overall American stock market right either S and P

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Speaker 2: five hundred or the total US stock market, because like,

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Speaker 2: don't you, as a member of Congress want to just

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Speaker 2: see the entire country improve as a whole. So that's

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Speaker 2: one issue, But you speak to a whole other problem. Yes,

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Speaker 2: it totally sucks to see these individuals getting rich off

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Speaker 2: of some of this insider information. Some of that can

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Speaker 2: be mitigated a little bit by the fact that they

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Speaker 2: have to disclose their trades and you can even in

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Speaker 2: what sixty days typically right, otherwise you're penalized, but the

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Speaker 2: penalty is really small. And so, but bottom line, like, like,

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Speaker 2: there's a Nancy Pelosi tracker and you can invest.

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Speaker 1: Literally the fund in anc that's the.

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Speaker 2: Ticker, and you can invest just like she does and

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Speaker 2: attempt to outperform the market. And she has done incredibly

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Speaker 2: well for herself because of information that she is privy to.

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Speaker 2: But it's one thing if they were actually doing their

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Speaker 2: job and legislating and engaging in great debate, having these

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Speaker 2: conversations and pushing forward bills. But you don't see that, right,

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Speaker 2: And so it's what it appears to be is that

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Speaker 2: members of Congress are getting wealthy and wealthier based on

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Speaker 2: the information that they have while not actually doing their job,

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Speaker 2: the thing that they're supposed to do. So it's coming

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Speaker 2: at the expense of everyday Americans. It's like, why does

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Speaker 2: my qualify myself as why does mister Smith go to Washington.

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Speaker 1: Now, it's to enlargen his own balance sheet, and it's

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Speaker 1: not to do his civic duty for the country. Is

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Speaker 1: what it feels like. And you call it Nancy Pelosi,

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Speaker 1: but like truly Republicans and down both participate in this.

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Speaker 1: And we've actually seen she's just the most notorious. Yeah,

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Speaker 1: and we've seen Democrat senator say, hey, actually we want

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Speaker 1: to put austock for this. John Assof from Georgia said,

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Speaker 1: here's a bill, guys, let's get behind this. Let's stop

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Speaker 1: the insanity of single stock trading by elected officials. And

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Speaker 1: there were crickets crickets in response to that proposal. So

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Speaker 1: there have been efforts, but nothing has actually happened so far.

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Speaker 1: And I think too, Matt, like, when stocks are flying high,

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Speaker 1: it just feels easier for people to make riskier bets,

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Speaker 1: especially because they're feeling some of that FOMO. But the tortoise, right,

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Speaker 1: the index fund investor wins and does quite well over time.

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Speaker 1: Don't give into that, and you'll be glad. You'll be

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Speaker 1: glad that you invested in the simple, boring way. I

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Speaker 1: think down the line, when other people are reeling maybe

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Speaker 1: from some of their single stock bets or from some

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Speaker 1: of their targeted investments that don't really pay off and

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Speaker 1: real quickly. I wanted to touch on quarterly earnings because

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Speaker 1: that's been something that's kind of been going around lately.

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Speaker 1: President Trump has basically said quarterly earnings reports should go away.

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Speaker 1: Actually President Obama said something similar like fifteen years ago.

433
00:20:01,280 --> 00:20:03,560
Speaker 1: And I wonder if investors like what this is? This

434
00:20:03,600 --> 00:20:05,720
Speaker 1: is not good? What's going to happen here? Well, one,

435
00:20:06,160 --> 00:20:07,720
Speaker 1: we don't know what's going to happen with this, and

436
00:20:07,720 --> 00:20:09,520
Speaker 1: whether or not quarterly earnings reports are going to be

437
00:20:09,520 --> 00:20:12,560
Speaker 1: turned into like semi annual earnings reports. They might be,

438
00:20:12,600 --> 00:20:14,520
Speaker 1: and this could be a multi year long process to

439
00:20:14,560 --> 00:20:18,200
Speaker 1: get there. But Alison Schreger, who we've had on the show,

440
00:20:18,200 --> 00:20:20,879
Speaker 1: she's a Bloomberg colonist, she wrote about why that's actually

441
00:20:20,880 --> 00:20:23,359
Speaker 1: probably a good thing to not have quarterly earnings reports,

442
00:20:23,400 --> 00:20:27,000
Speaker 1: and it's because you know, transparency is important, right, and

443
00:20:27,040 --> 00:20:29,800
Speaker 1: it's a necessary thing from our publicly traded companies. But

444
00:20:29,920 --> 00:20:32,280
Speaker 1: she also said, and I think I agree with her,

445
00:20:32,320 --> 00:20:35,000
Speaker 1: that quarterly reports are overkill, right, and they lead to

446
00:20:35,080 --> 00:20:38,560
Speaker 1: riskier company behavior focusing on short term results and as

447
00:20:38,640 --> 00:20:41,159
Speaker 1: long term investors I don't know. I don't really care

448
00:20:41,160 --> 00:20:43,680
Speaker 1: about quarterly earnings reports myself, Like, you know, we should

449
00:20:43,680 --> 00:20:46,760
Speaker 1: be immune to some of that news. Yeah, so some

450
00:20:46,960 --> 00:20:50,440
Speaker 1: people say, hey, less information means riskier markets. But again,

451
00:20:50,480 --> 00:20:54,800
Speaker 1: I think for index fund investors, yeah, whether quarterly earnings

452
00:20:54,840 --> 00:20:57,360
Speaker 1: reports stick around, whether we go to semi annual, shouldn't

453
00:20:57,359 --> 00:20:58,360
Speaker 1: be a big deal for any of us.

454
00:20:58,440 --> 00:21:00,720
Speaker 2: Yeah, this is something that this isn't entirely new, not

455
00:21:00,760 --> 00:21:02,520
Speaker 2: only in the US, but abroad too. This is something

456
00:21:02,560 --> 00:21:06,160
Speaker 2: that the EU did back in twenty thirteen, and there's

457
00:21:06,200 --> 00:21:09,199
Speaker 2: no conclusive evidence that it was good or bad. Like,

458
00:21:09,240 --> 00:21:11,560
Speaker 2: the only thing that they can definitively point to is

459
00:21:11,560 --> 00:21:14,520
Speaker 2: the fact that the administrative costs have gone down because

460
00:21:14,520 --> 00:21:16,840
Speaker 2: they don't have to report totally as opposed to just

461
00:21:16,840 --> 00:21:19,320
Speaker 2: a couple of times a year. So either way, I

462
00:21:19,359 --> 00:21:23,159
Speaker 2: don't think this should be something that should impact.

463
00:21:22,800 --> 00:21:25,199
Speaker 1: Individual investors one way or the other. But buddy, we

464
00:21:25,200 --> 00:21:25,879
Speaker 1: got more to get to.

465
00:21:26,000 --> 00:21:29,520
Speaker 2: We're gonna talk a little bit about Andrew Yang as

466
00:21:29,520 --> 00:21:31,720
Speaker 2: well as casinos.

467
00:21:31,720 --> 00:21:32,800
Speaker 1: More politician talk.

468
00:21:32,840 --> 00:21:36,680
Speaker 2: Yeah, but actually a little little less political in this case.

469
00:21:36,680 --> 00:21:38,080
Speaker 2: We'll get to those stories though, and more.

470
00:21:38,200 --> 00:21:48,080
Speaker 1: Right after this, we're back to the break It's now

471
00:21:48,160 --> 00:21:50,040
Speaker 1: time for the ludicrous headline of the week. This one

472
00:21:50,080 --> 00:21:53,399
Speaker 1: comes from Business Insider and Matt. When I saw this headline,

473
00:21:53,560 --> 00:21:55,280
Speaker 1: it just made me mad. It just made me mad,

474
00:21:55,359 --> 00:21:56,680
Speaker 1: and I was like, I gotta click through, I gotta

475
00:21:56,680 --> 00:22:00,440
Speaker 1: read this article. And it only made me madder. Headline

476
00:22:00,600 --> 00:22:04,760
Speaker 1: read America's new consumer caste system. And when you hear

477
00:22:05,080 --> 00:22:07,600
Speaker 1: cast system, you're like, oh my gosh, what is happening

478
00:22:07,600 --> 00:22:10,720
Speaker 1: that divides people into these groups that they can't get

479
00:22:11,000 --> 00:22:14,239
Speaker 1: out of at all? That sounds frustrating or terrible, Like

480
00:22:14,280 --> 00:22:17,520
Speaker 1: what is this that this author is talking about. Well,

481
00:22:17,560 --> 00:22:20,359
Speaker 1: the rest of the article is not much better than

482
00:22:20,560 --> 00:22:25,400
Speaker 1: the headline, and the writer accuses companies of dividing consumers

483
00:22:25,440 --> 00:22:27,960
Speaker 1: into categories, right, the haves and the have nots, essentially,

484
00:22:28,640 --> 00:22:32,080
Speaker 1: and the writer highlights in particular well once she's going

485
00:22:32,119 --> 00:22:34,760
Speaker 1: after one of my favors here at Costco. She said,

486
00:22:35,040 --> 00:22:38,800
Speaker 1: Costco's new hours for executive members. That's one of the

487
00:22:38,840 --> 00:22:41,600
Speaker 1: main culprit It's like the richie riches can get in

488
00:22:41,640 --> 00:22:45,720
Speaker 1: an hour early and the rest of the unwashed masses

489
00:22:46,040 --> 00:22:48,120
Speaker 1: have to sit in the parking lot and watch while

490
00:22:48,119 --> 00:22:51,840
Speaker 1: other people shop, Like, what are you talking about? That's

491
00:22:52,000 --> 00:22:56,400
Speaker 1: utterly ridiculous to step back, don't talk to back about

492
00:22:56,400 --> 00:22:59,840
Speaker 1: my costco. Yeah. She also talked about paying to eliminate

493
00:23:00,000 --> 00:23:02,280
Speaker 1: ads on streaming service. This is another sign of the

494
00:23:02,880 --> 00:23:06,639
Speaker 1: cast system that she's pointing out. Some people can pay

495
00:23:06,760 --> 00:23:09,840
Speaker 1: for the no ad services and others have to watch

496
00:23:09,880 --> 00:23:12,679
Speaker 1: the ads. How terrible is that? Well, I think the

497
00:23:12,760 --> 00:23:16,360
Speaker 1: problem with the reference to cast is that individuals had

498
00:23:16,359 --> 00:23:18,600
Speaker 1: no choice about their position in society inside of a

499
00:23:18,640 --> 00:23:21,680
Speaker 1: cast system. It's like you're born into something and there

500
00:23:21,760 --> 00:23:24,159
Speaker 1: was no way to get out of it, right, Yeah.

501
00:23:24,880 --> 00:23:27,840
Speaker 2: You literally have no choice. It depends on your family,

502
00:23:28,160 --> 00:23:31,800
Speaker 2: your family of origins like this. Does that sound like America, Joel, No, it.

503
00:23:31,800 --> 00:23:34,800
Speaker 1: Was this immovable fate from birth, and that's that's not

504
00:23:34,840 --> 00:23:37,320
Speaker 1: the case in American society. And you and I, we

505
00:23:37,800 --> 00:23:40,200
Speaker 1: can choose to pay for ad removal on our streaming

506
00:23:40,600 --> 00:23:43,200
Speaker 1: or we can choose to spring for the executive membership

507
00:23:43,320 --> 00:23:46,359
Speaker 1: or vice versa. We can choose the opposite. So different

508
00:23:46,400 --> 00:23:50,440
Speaker 1: tiers of service are a benefit to consumers, allowing more choice.

509
00:23:50,440 --> 00:23:53,560
Speaker 1: It is not some sort of dastardly sorting mechanism that

510
00:23:53,640 --> 00:23:56,359
Speaker 1: this author tries to make it sound like it that

511
00:23:56,440 --> 00:23:59,439
Speaker 1: one frustrated me. Let's call her out. Her name is Emily.

512
00:23:59,760 --> 00:24:02,800
Speaker 1: I think her name's Emily Stewart. Okay, Emily Stewart. And

513
00:24:02,840 --> 00:24:04,639
Speaker 1: you're welcome to come on here and defend yourself if

514
00:24:04,640 --> 00:24:06,240
Speaker 1: you want to chat about it. But I'm sorry, I

515
00:24:06,280 --> 00:24:07,080
Speaker 1: just completely.

516
00:24:06,800 --> 00:24:09,760
Speaker 2: Just I will say, she doesn't she leans into like

517
00:24:09,800 --> 00:24:12,439
Speaker 2: the cast sort of framework a little bit in the article.

518
00:24:12,480 --> 00:24:14,240
Speaker 1: I'm willing to cut her a little bit, a little

519
00:24:14,240 --> 00:24:15,440
Speaker 1: bit of slack because.

520
00:24:15,200 --> 00:24:19,120
Speaker 2: I know that when you are online, when you're a journalist,

521
00:24:19,160 --> 00:24:21,959
Speaker 2: you come up with these articles and oftentimes there's an

522
00:24:22,040 --> 00:24:24,080
Speaker 2: editor that takes it, they edit it, they slap a

523
00:24:24,119 --> 00:24:25,960
Speaker 2: new headline up there, and then they publish it. So

524
00:24:26,000 --> 00:24:28,199
Speaker 2: it may not be her as much, but maybe they

525
00:24:28,200 --> 00:24:30,720
Speaker 2: were wanting to lean more into that sort of cast system.

526
00:24:30,760 --> 00:24:33,639
Speaker 2: But that being said, I completely agree with what you're saying,

527
00:24:33,720 --> 00:24:37,600
Speaker 2: Like no need to cue the Lee Greenwood music, but

528
00:24:37,640 --> 00:24:40,080
Speaker 2: like this is why America is so amazing. We have

529
00:24:40,200 --> 00:24:41,920
Speaker 2: the freedom, We have the liberty to make the kind

530
00:24:41,920 --> 00:24:43,360
Speaker 2: of choices that we want to make when it comes

531
00:24:43,400 --> 00:24:45,720
Speaker 2: to how we what we do with our in life,

532
00:24:45,880 --> 00:24:48,000
Speaker 2: Like what we choose to do not just with our money,

533
00:24:48,000 --> 00:24:50,440
Speaker 2: but what we can do whatever we want, as long

534
00:24:50,480 --> 00:24:52,680
Speaker 2: as we're of course not impinging on the rights of

535
00:24:52,720 --> 00:24:54,840
Speaker 2: other people around us. But like, that is what makes

536
00:24:55,200 --> 00:24:58,960
Speaker 2: America so great, and we have nothing close to any

537
00:24:58,960 --> 00:24:59,680
Speaker 2: sort of cast system.

538
00:24:59,720 --> 00:25:02,000
Speaker 1: Yeah, and some people choose not to be members of

539
00:25:02,000 --> 00:25:05,600
Speaker 1: Costco at all because they're like, bulk buying sounds dumb.

540
00:25:05,600 --> 00:25:07,600
Speaker 1: I don't care about that, don't need it, awesome, don't want.

541
00:25:07,600 --> 00:25:09,720
Speaker 1: Some people choose to live in vans Now by the river,

542
00:25:09,840 --> 00:25:11,960
Speaker 1: like where whatever you want to do, man, this is

543
00:25:12,000 --> 00:25:17,040
Speaker 1: the kind of place where that is viable. And yeah,

544
00:25:17,119 --> 00:25:19,720
Speaker 1: I think that's actually probably that's part of the problem

545
00:25:19,800 --> 00:25:21,800
Speaker 1: is that we pit We make it sound like, oh,

546
00:25:21,800 --> 00:25:23,760
Speaker 1: this is what the elites can afford, and this is

547
00:25:23,760 --> 00:25:25,760
Speaker 1: what the non elites are stuck with. And I think

548
00:25:25,800 --> 00:25:27,520
Speaker 1: there's just a lot of choice in there, Like there's

549
00:25:27,520 --> 00:25:30,160
Speaker 1: a lot of things I could afford, Matt, I choose

550
00:25:30,200 --> 00:25:32,080
Speaker 1: not to because I don't care about it and I

551
00:25:32,080 --> 00:25:34,040
Speaker 1: don't want that in my life. You've got that freedom, man.

552
00:25:34,160 --> 00:25:37,240
Speaker 2: Yeah, we also need more Chris Farley references in our podcast.

553
00:25:37,320 --> 00:25:39,240
Speaker 1: Yes, The Las Vegas Review.

554
00:25:39,080 --> 00:25:41,800
Speaker 2: Journal had an article about the rise and surge pricing

555
00:25:42,440 --> 00:25:46,360
Speaker 2: on everything basically at many of the bigger casinos now,

556
00:25:46,600 --> 00:25:49,080
Speaker 2: so prices on the strip bar are certainly already high

557
00:25:49,440 --> 00:25:52,560
Speaker 2: by comparison, but they can vary now by the hour.

558
00:25:53,000 --> 00:25:56,399
Speaker 2: So for instance, maybe you want a bottle of water

559
00:25:56,880 --> 00:25:59,280
Speaker 2: at the MGM, Well, it might cost you two dollars

560
00:25:59,320 --> 00:26:01,560
Speaker 2: in the morning, but it'll be three dollars and fifty

561
00:26:01,600 --> 00:26:04,760
Speaker 2: cents later that night. The same thing is the case

562
00:26:04,800 --> 00:26:08,199
Speaker 2: with beer six bucks and then eight bucks later on

563
00:26:08,240 --> 00:26:11,080
Speaker 2: in the evening. It's interesting because I think most folks

564
00:26:11,080 --> 00:26:14,040
Speaker 2: staying out of casino, they're not terribly price conscious anyway,

565
00:26:14,440 --> 00:26:17,760
Speaker 2: so it's likely why they will depend that it's before

566
00:26:17,880 --> 00:26:21,400
Speaker 2: or after their Yeah, how much they've gambled away their

567
00:26:21,560 --> 00:26:23,800
Speaker 2: all their money. It's true, so maybe this is a

568
00:26:23,840 --> 00:26:27,239
Speaker 2: good target market to try this to try this out on.

569
00:26:27,680 --> 00:26:30,359
Speaker 2: But what I don't like here in particular is the

570
00:26:30,400 --> 00:26:32,600
Speaker 2: fact that like we've seen these models when it comes

571
00:26:32,600 --> 00:26:35,760
Speaker 2: to airlines and when it comes to like uber pricing, right.

572
00:26:36,320 --> 00:26:37,040
Speaker 1: Surge pricing.

573
00:26:37,600 --> 00:26:40,159
Speaker 2: But the reason that works is because there is a

574
00:26:40,280 --> 00:26:43,399
Speaker 2: limited amount of supply, and I think folks are willing

575
00:26:43,440 --> 00:26:45,800
Speaker 2: to let surge pricing like they're willing to give it

576
00:26:45,840 --> 00:26:48,840
Speaker 2: a buy if they know that the actual supply is limited.

577
00:26:48,880 --> 00:26:51,600
Speaker 2: There are only so many flights going to Las Vegas,

578
00:26:51,680 --> 00:26:54,639
Speaker 2: and all those limited flights, there are only so many seats,

579
00:26:54,840 --> 00:26:56,919
Speaker 2: and so if there is a massive demand, we'll shoot,

580
00:26:56,920 --> 00:26:57,840
Speaker 2: maybe we need to up.

581
00:26:57,800 --> 00:26:58,640
Speaker 1: The price a little bit.

582
00:26:58,960 --> 00:27:02,720
Speaker 2: That's a way of essentially the market prices are telling

583
00:27:02,800 --> 00:27:06,119
Speaker 2: you what it is worth to consumers. In this case,

584
00:27:06,440 --> 00:27:09,840
Speaker 2: I would wager that they basically have an unlimited supply

585
00:27:10,200 --> 00:27:12,840
Speaker 2: of water bottles and of beer, so they are imposing

586
00:27:12,840 --> 00:27:16,880
Speaker 2: this artificial scarcity on the supply. I think that right

587
00:27:16,880 --> 00:27:19,040
Speaker 2: there is when consumers are going to get pissed because

588
00:27:19,080 --> 00:27:20,560
Speaker 2: they're going to say, wait a minute, you've got tons

589
00:27:20,600 --> 00:27:22,479
Speaker 2: of this stuff. It shouldn't cost any more now than

590
00:27:22,520 --> 00:27:24,760
Speaker 2: it does than it did earlier. So that is the

591
00:27:25,359 --> 00:27:28,959
Speaker 2: that's it's a fine line between it being acceptable and

592
00:27:29,040 --> 00:27:31,960
Speaker 2: it being this what feels like a cash grap as

593
00:27:32,000 --> 00:27:35,560
Speaker 2: different companies are trying to adopt these pricing models where

594
00:27:35,600 --> 00:27:38,320
Speaker 2: they are in a lot of cases are necessary. I

595
00:27:38,320 --> 00:27:41,080
Speaker 2: think dynamic pricing can be a fair and just way

596
00:27:41,320 --> 00:27:44,359
Speaker 2: of allocating goods, except for when there are plenty of

597
00:27:44,400 --> 00:27:46,560
Speaker 2: goods and you're just doing this because it's worked in

598
00:27:46,600 --> 00:27:49,480
Speaker 2: other industries. Is why Wendy's backed off. If you remember,

599
00:27:49,520 --> 00:27:49,960
Speaker 2: they were like.

600
00:27:49,920 --> 00:27:52,200
Speaker 1: Hey, we're gonna do dynamic pricing. A burger might cost

601
00:27:52,560 --> 00:27:55,080
Speaker 1: this much at eleven am and this much at twelve

602
00:27:55,119 --> 00:27:57,359
Speaker 1: thirty when there's like more foot traffic. It's probably gonna

603
00:27:57,359 --> 00:28:00,480
Speaker 1: cost a little more then in the store. And Winny's

604
00:28:00,560 --> 00:28:04,640
Speaker 1: was like, got so much crap for that that they decided, Okay,

605
00:28:04,960 --> 00:28:06,960
Speaker 1: people are so mad, we got we gotta completely.

606
00:28:07,040 --> 00:28:09,080
Speaker 2: They've got a limitless no liah burgers back there in

607
00:28:09,080 --> 00:28:11,760
Speaker 2: the cooler. Right, they're not frozen. Yeah, they're in the fridge.

608
00:28:11,800 --> 00:28:14,240
Speaker 2: That's right, that's what I hear, never frozen. And so yeah,

609
00:28:14,280 --> 00:28:15,760
Speaker 2: I think the best thing you can do as a

610
00:28:15,760 --> 00:28:18,400
Speaker 2: consumer is just to walk away from stupid prices. Yes, yeah,

611
00:28:18,560 --> 00:28:20,359
Speaker 2: literally vote with your dollars, vote with your feet.

612
00:28:20,400 --> 00:28:22,480
Speaker 1: And some people are like, oh, but I'm thirsty, And

613
00:28:22,520 --> 00:28:24,440
Speaker 1: I'd be like, you know what, I'm gonna go keep

614
00:28:24,440 --> 00:28:28,240
Speaker 1: walking and find a water fountain. If prices for parking

615
00:28:28,320 --> 00:28:30,560
Speaker 1: are too expensive around the event, I'm going to I

616
00:28:30,680 --> 00:28:32,920
Speaker 1: park further away. Matt like, these are the kind of

617
00:28:32,960 --> 00:28:35,879
Speaker 1: decisions the other are annoying, Right, It annoys people. They're like,

618
00:28:35,920 --> 00:28:37,560
Speaker 1: but I don't want to have to do that. But

619
00:28:37,600 --> 00:28:39,040
Speaker 1: these are the kind of decisions I think we have

620
00:28:39,080 --> 00:28:40,880
Speaker 1: to make as consumers in the kind of society we

621
00:28:40,920 --> 00:28:41,200
Speaker 1: live in.

622
00:28:41,240 --> 00:28:44,000
Speaker 2: Like that we're free to make. Yeah, as Americans, that's right,

623
00:28:44,080 --> 00:28:47,719
Speaker 2: Maybe that's right, speaking of a lot of singing this America. Well,

624
00:28:47,760 --> 00:28:51,960
Speaker 2: American politician Andrew Yang just launched a new NB and O,

625
00:28:52,360 --> 00:28:54,600
Speaker 2: which is basically one of those you know, tiny cell

626
00:28:54,640 --> 00:28:58,800
Speaker 2: phone network networks mobile virtual network operators what that stands for.

627
00:28:58,960 --> 00:29:01,160
Speaker 2: He calls it no Mobile.

628
00:29:01,120 --> 00:29:04,320
Speaker 1: And he's awesome. The goal is, fun to say, Noble Mobile,

629
00:29:04,400 --> 00:29:07,680
Speaker 1: Noble Mobile. He's trying to align the profit motive with

630
00:29:07,720 --> 00:29:11,480
Speaker 1: the behavior that individual cell phone users are trying to achieve.

631
00:29:12,320 --> 00:29:14,800
Speaker 1: And so the price initially sounds like it's too much

632
00:29:14,840 --> 00:29:17,280
Speaker 1: fifty bucks a month for unlimited talk, text and twenty

633
00:29:17,280 --> 00:29:21,440
Speaker 1: gigs of data, But Noble Mobile wants to incentivize you

634
00:29:21,480 --> 00:29:24,040
Speaker 1: to be on your phone less. So for every gig

635
00:29:24,080 --> 00:29:26,800
Speaker 1: of data you don't use, you're going to basically get

636
00:29:26,840 --> 00:29:30,160
Speaker 1: rewards equivalent to something like a dollar per gig for

637
00:29:30,360 --> 00:29:33,480
Speaker 1: the data you're not using. And so I like this idea, Matt,

638
00:29:33,600 --> 00:29:36,520
Speaker 1: I dig what Noble Mobile is trying to do. But

639
00:29:36,600 --> 00:29:38,520
Speaker 1: here's the flip side of that. Even if you didn't

640
00:29:38,600 --> 00:29:41,000
Speaker 1: use a single gig, you get twenty bucks back, right,

641
00:29:41,000 --> 00:29:44,320
Speaker 1: which means you're still paying more for Noble Mobile service

642
00:29:44,520 --> 00:29:47,400
Speaker 1: than you would be for Mint Mobile or US Mobile,

643
00:29:47,440 --> 00:29:50,360
Speaker 1: who are a couple of our favorites. So you know, yes,

644
00:29:50,400 --> 00:29:53,040
Speaker 1: you would be paying less than the average cell phone bill,

645
00:29:53,040 --> 00:29:55,240
Speaker 1: which is I think something like eighty eighty three eighty

646
00:29:55,280 --> 00:29:57,600
Speaker 1: five bucks around the country. But you can do even

647
00:29:57,600 --> 00:30:00,600
Speaker 1: better than that. So I like the incentive thing. I

648
00:30:00,600 --> 00:30:03,360
Speaker 1: think it's kind of cool. I like the proliferation of

649
00:30:03,720 --> 00:30:06,880
Speaker 1: you know, fairly inexpensive cell phone carriers. I'm still gravitate

650
00:30:06,880 --> 00:30:08,160
Speaker 1: towards a couple of those other guys.

651
00:30:08,160 --> 00:30:09,880
Speaker 2: So yeah, but then you wouldn't be able to say

652
00:30:10,160 --> 00:30:12,800
Speaker 2: Noble Mobile on the basis or on the regular he

653
00:30:12,840 --> 00:30:14,640
Speaker 2: does have a nice ring to it, it does, sure,

654
00:30:14,680 --> 00:30:15,320
Speaker 2: Nobyl Mobile.

655
00:30:15,760 --> 00:30:17,560
Speaker 1: That'd be different. I would probably went with you, I

656
00:30:17,600 --> 00:30:18,040
Speaker 1: don't think so.

657
00:30:19,000 --> 00:30:21,800
Speaker 2: Credit scores are dropping across the country, Joel. Did you

658
00:30:21,840 --> 00:30:23,360
Speaker 2: know that you knew that I heard that we talked

659
00:30:23,360 --> 00:30:27,400
Speaker 2: about this. We've been seeing scores rise pretty significantly over

660
00:30:27,400 --> 00:30:30,320
Speaker 2: the past twenty years, from an average of six eighty

661
00:30:30,360 --> 00:30:32,800
Speaker 2: eight back in two thousand and five to an average

662
00:30:32,840 --> 00:30:37,600
Speaker 2: in twenty twenty three of seven eighteen, and you might

663
00:30:37,720 --> 00:30:38,640
Speaker 2: be thinking.

664
00:30:38,480 --> 00:30:41,400
Speaker 3: Oh, maybe this is the era of Personal Finance podcast.

665
00:30:41,480 --> 00:30:45,360
Speaker 3: Maybe Matt and Jewell finally had a positive impact on society.

666
00:30:45,520 --> 00:30:48,880
Speaker 3: Maybe maybe feels probably I'm gonna say probably, yeah, yeah.

667
00:30:48,960 --> 00:30:53,240
Speaker 3: But it's also a case of credit score inflation. Basically

668
00:30:53,720 --> 00:30:56,280
Speaker 3: that seven twenty isn't isn't the seven to twenty of.

669
00:30:56,760 --> 00:31:00,000
Speaker 1: Yesteryear, which is like great inflation at schools where yeah,

670
00:31:00,080 --> 00:31:02,120
Speaker 1: four point zero zho isn't what it used to be

671
00:31:02,160 --> 00:31:04,160
Speaker 1: back when we're in school jool. But I have many

672
00:31:04,400 --> 00:31:06,880
Speaker 1: teacher friends in my life and relatives, and the way

673
00:31:06,880 --> 00:31:09,520
Speaker 1: they talk about how they have to grade their students now,

674
00:31:09,800 --> 00:31:11,840
Speaker 1: it's so different than what we experience when we don't

675
00:31:11,880 --> 00:31:12,840
Speaker 1: have to, yeah, have to.

676
00:31:13,000 --> 00:31:15,800
Speaker 2: Although it's maybe they do because it's been implemented from

677
00:31:16,160 --> 00:31:19,080
Speaker 2: the top by that principle or in that district. But

678
00:31:19,560 --> 00:31:21,000
Speaker 2: there's some pressure, for sure.

679
00:31:20,800 --> 00:31:21,760
Speaker 1: There definitely is.

680
00:31:21,960 --> 00:31:24,720
Speaker 2: But generally speaking, what we're saying is that folks scores

681
00:31:24,760 --> 00:31:28,680
Speaker 2: have increased due to this gentle upward trend that we

682
00:31:28,800 --> 00:31:32,200
Speaker 2: have all been experiencing. But that being said, debt is

683
00:31:32,240 --> 00:31:35,320
Speaker 2: becoming more of a problem now. Both from a headline

684
00:31:35,600 --> 00:31:38,800
Speaker 2: amount of debt that is out there, balances that are

685
00:31:38,840 --> 00:31:42,360
Speaker 2: being held, amounts that are delinquent also from an interest

686
00:31:42,440 --> 00:31:45,280
Speaker 2: rate perspective. But because of that, credit scores are slipping.

687
00:31:45,560 --> 00:31:48,920
Speaker 2: Fourteen percent of gen Zers have seen their score decline

688
00:31:49,480 --> 00:31:53,120
Speaker 2: by fifty points or more. And I think the resumption

689
00:31:53,240 --> 00:31:55,200
Speaker 2: of student loan payments that likely has a lot to.

690
00:31:55,200 --> 00:31:56,120
Speaker 1: Do with it.

691
00:31:56,200 --> 00:31:59,840
Speaker 2: And specifically, I want to call out quick fixes that

692
00:32:00,080 --> 00:32:02,560
Speaker 2: are marketed, that are advertised out there, because those can

693
00:32:02,600 --> 00:32:06,680
Speaker 2: create more problems in your life. But generally speaking, one

694
00:32:06,680 --> 00:32:07,840
Speaker 2: of the things we tried to do here on the

695
00:32:07,880 --> 00:32:10,480
Speaker 2: show is to explain how the credit scoring model works.

696
00:32:10,720 --> 00:32:12,320
Speaker 2: We want folks to pay attention to it. We want

697
00:32:12,320 --> 00:32:14,240
Speaker 2: folks to pay attention to their scores because it has

698
00:32:14,280 --> 00:32:18,120
Speaker 2: a wide ranging influence on your financial life, not just

699
00:32:18,160 --> 00:32:20,640
Speaker 2: your ability, not just the rate that you're paying on

700
00:32:20,680 --> 00:32:23,480
Speaker 2: a credit card balance, which we don't want you to do.

701
00:32:23,800 --> 00:32:27,400
Speaker 2: But yeah, it has a wide again, wide ranging impact.

702
00:32:27,600 --> 00:32:31,600
Speaker 1: And maybe I overstated it with credit scores crashing at

703
00:32:31,640 --> 00:32:33,360
Speaker 1: the beginning of the pod, maybe max, because I think

704
00:32:33,400 --> 00:32:36,400
Speaker 1: the average decline has been something like two points. But

705
00:32:36,840 --> 00:32:39,719
Speaker 1: I think we are in an era where we saw

706
00:32:39,760 --> 00:32:42,640
Speaker 1: a lot more leniency being baked into the models of

707
00:32:42,680 --> 00:32:44,920
Speaker 1: the credit scoring system, and we're just seeing less of

708
00:32:44,920 --> 00:32:48,720
Speaker 1: that now, and especially with the multi year long posit

709
00:32:48,800 --> 00:32:52,200
Speaker 1: student loans, it's just shocking for people to have that

710
00:32:52,240 --> 00:32:54,960
Speaker 1: payment back in their lives again, and many cannot afford

711
00:32:55,080 --> 00:32:58,200
Speaker 1: to make that payment. And because of that, I think, yeah,

712
00:32:58,240 --> 00:33:00,440
Speaker 1: they're going to start to see their credit scores get hit.

713
00:33:00,720 --> 00:33:03,440
Speaker 1: And there's a lot of collatteral damage from having a

714
00:33:03,480 --> 00:33:06,800
Speaker 1: falling credit score, So make sure you're paying attention to that.

715
00:33:08,160 --> 00:33:10,640
Speaker 1: One other thing worth considering while we're talking about credit scores,

716
00:33:10,680 --> 00:33:14,120
Speaker 1: maybe updating the credit scoring system. We're not a huge

717
00:33:14,200 --> 00:33:16,520
Speaker 1: fan of the way it works, and the three major

718
00:33:16,560 --> 00:33:21,360
Speaker 1: credit bureaus often they are unresponsive to individuals who have

719
00:33:21,440 --> 00:33:23,560
Speaker 1: a problem or feel like that their credit score isn't

720
00:33:23,560 --> 00:33:28,840
Speaker 1: reflective of and their credit report has misinformation on it right,

721
00:33:28,880 --> 00:33:31,360
Speaker 1: like it's not accurate. And a new study reveals that

722
00:33:31,400 --> 00:33:33,560
Speaker 1: there might be a better way to calculate credit scores,

723
00:33:34,520 --> 00:33:38,000
Speaker 1: basically only looking at prior borrowing history. That's not always

724
00:33:38,440 --> 00:33:42,200
Speaker 1: the best way, the best tactic to take because it

725
00:33:42,240 --> 00:33:45,080
Speaker 1: does leave some folks out of the credit market. And

726
00:33:45,120 --> 00:33:48,160
Speaker 1: so this study found that they looked at shopping habits right,

727
00:33:48,200 --> 00:33:51,160
Speaker 1: and they said, well, actually someone's shopping habits can shed

728
00:33:51,280 --> 00:33:55,200
Speaker 1: light on their likelihood of repaying debts. So I think

729
00:33:55,280 --> 00:33:57,680
Speaker 1: expanding maybe the pool of data, there's a lot more

730
00:33:57,720 --> 00:34:00,760
Speaker 1: we can draw from now, including like whether or not

731
00:34:00,800 --> 00:34:03,000
Speaker 1: people make their rent payments on time. That's a big

732
00:34:03,040 --> 00:34:05,680
Speaker 1: one that is getting factored in more and more, but

733
00:34:05,720 --> 00:34:09,840
Speaker 1: it's still there's a huge lack of that data in

734
00:34:09,880 --> 00:34:13,080
Speaker 1: the credit scoring models, including more of the buy now,

735
00:34:13,080 --> 00:34:15,040
Speaker 1: pay later stuff, which the buy now, pay later companies

736
00:34:15,080 --> 00:34:16,759
Speaker 1: are kind of like kicking their feet. They don't really

737
00:34:16,840 --> 00:34:19,279
Speaker 1: want that to be the case. That data would be

738
00:34:19,320 --> 00:34:23,080
Speaker 1: helpful in kind of coming up with better credit scoring

739
00:34:23,080 --> 00:34:27,480
Speaker 1: models and credit scores. And then I think based on

740
00:34:27,480 --> 00:34:29,279
Speaker 1: the study it said, hey, when we go with this

741
00:34:29,320 --> 00:34:32,440
Speaker 1: shopping data, it actually it helps more people get into

742
00:34:32,760 --> 00:34:36,720
Speaker 1: their ability to get into the credit economy, but without

743
00:34:36,880 --> 00:34:37,799
Speaker 1: really distorting it.

744
00:34:37,840 --> 00:34:39,360
Speaker 2: You know, I almost see that as like a negative

745
00:34:39,400 --> 00:34:43,200
Speaker 2: though as far as getting more folks in, because like especially,

746
00:34:43,520 --> 00:34:45,319
Speaker 2: I mean, do we want to more easily be able

747
00:34:45,320 --> 00:34:48,480
Speaker 2: to provide higher amounts of credit for new borrowers?

748
00:34:48,640 --> 00:34:48,799
Speaker 1: Right?

749
00:34:49,080 --> 00:34:51,520
Speaker 2: Like as in personally, I'm like, I don't think I

750
00:34:51,600 --> 00:34:54,480
Speaker 2: necessarily want to. It's a trade off, like we're always trading,

751
00:34:54,640 --> 00:34:58,800
Speaker 2: in particular these days, our information for better rates, free apps,

752
00:34:58,840 --> 00:35:01,520
Speaker 2: different things like that. A person, I'm less interested in that,

753
00:35:01,840 --> 00:35:04,480
Speaker 2: But I'm also like, I don't know. Maybe it's okay

754
00:35:04,560 --> 00:35:06,319
Speaker 2: that there's a twenty five year old out there who's

755
00:35:06,320 --> 00:35:09,000
Speaker 2: never had a credit card, you know, for whatever reason,

756
00:35:09,040 --> 00:35:11,680
Speaker 2: that's fine, But as our twenty three year old, I

757
00:35:11,680 --> 00:35:14,400
Speaker 2: should say, and they're like, Okay, I'm kind.

758
00:35:14,200 --> 00:35:16,240
Speaker 1: Of getting my own place now I'm not in college.

759
00:35:16,880 --> 00:35:18,440
Speaker 2: Maybe I need to get a student credit card that's

760
00:35:18,440 --> 00:35:21,919
Speaker 2: got like a tiny revolving balance or whatever.

761
00:35:21,960 --> 00:35:23,960
Speaker 1: Yeah, like a small credit limit, a.

762
00:35:23,880 --> 00:35:26,279
Speaker 2: Small credit limit, Yeah, like five hundred dollars credit limit

763
00:35:26,400 --> 00:35:28,719
Speaker 2: or eight hundred dollars credit limit, and the ability for

764
00:35:28,760 --> 00:35:31,840
Speaker 2: them to make some small mistakes with a limited amount

765
00:35:32,120 --> 00:35:34,560
Speaker 2: of dollars. Right, It's kind of like you get the

766
00:35:34,560 --> 00:35:37,759
Speaker 2: guardrails up a little bit when you're like when you're bowling. So,

767
00:35:37,920 --> 00:35:41,520
Speaker 2: I don't know, I think regardless, being aware of how

768
00:35:41,560 --> 00:35:42,080
Speaker 2: it is.

769
00:35:41,960 --> 00:35:44,640
Speaker 1: That the scoring models work and paying attention.

770
00:35:44,440 --> 00:35:47,640
Speaker 2: To that is like, that's the biggest takeaway, regardless certainly

771
00:35:47,760 --> 00:35:50,000
Speaker 2: the data breaches. I think that's a big improvement. I

772
00:35:50,040 --> 00:35:52,480
Speaker 2: think that's an area where we and luckily, hey knock

773
00:35:52,520 --> 00:35:53,520
Speaker 2: on Wooden was the last time we.

774
00:35:53,480 --> 00:35:55,799
Speaker 1: Heard about a data breach. When it comes to the

775
00:35:57,000 --> 00:35:59,120
Speaker 1: at least it had. It might be because all of

776
00:35:59,120 --> 00:35:59,960
Speaker 1: the data has been breached.

777
00:36:00,160 --> 00:36:04,520
Speaker 2: I don't know, there's like no more data to reach, Like, yeah,

778
00:36:04,560 --> 00:36:06,880
Speaker 2: they has all the data.

779
00:36:07,680 --> 00:36:09,440
Speaker 1: No, I get what you're saying. I do think that

780
00:36:09,480 --> 00:36:11,480
Speaker 1: there are other elements, especially for like let's say a

781
00:36:11,480 --> 00:36:14,760
Speaker 1: recent graduate, Well, hey, what about what were your grades?

782
00:36:14,840 --> 00:36:16,719
Speaker 1: Like what was your attendance like in school? Like those

783
00:36:16,800 --> 00:36:20,279
Speaker 1: kind of things could factor into somebody's whether or not

784
00:36:20,320 --> 00:36:21,879
Speaker 1: those that person who's a credit worthy borrow.

785
00:36:21,960 --> 00:36:24,520
Speaker 2: Let's start this starts feeling really technically. You know, it's like,

786
00:36:24,560 --> 00:36:26,719
Speaker 2: oh man, they know everything about you. And it's one

787
00:36:26,719 --> 00:36:29,480
Speaker 2: thing if you're going to take out a two hundred

788
00:36:29,480 --> 00:36:32,200
Speaker 2: thousand dollars he lock on your home, it's like, okay,

789
00:36:32,280 --> 00:36:35,399
Speaker 2: let's make sure we have all the financial information that

790
00:36:35,640 --> 00:36:37,359
Speaker 2: we can find on you that you know you're gonna

791
00:36:37,360 --> 00:36:39,719
Speaker 2: have to scrape together all this info. It's another thing

792
00:36:39,760 --> 00:36:43,560
Speaker 2: when you're talking about like access to an additional five

793
00:36:43,600 --> 00:36:46,480
Speaker 2: thousand or something like that. But it'll be interesting, I think,

794
00:36:46,520 --> 00:36:48,560
Speaker 2: to see how how it all shakes out and how

795
00:36:48,840 --> 00:36:51,759
Speaker 2: different scoring models evolve. Especially like you said, as by

796
00:36:51,760 --> 00:36:54,560
Speaker 2: now pay later, he was able to get incorporated, which

797
00:36:54,560 --> 00:36:55,240
Speaker 2: I think is vital.

798
00:36:55,360 --> 00:36:57,839
Speaker 1: That's so important. I think the biggest problem here, what

799
00:36:57,880 --> 00:37:01,279
Speaker 1: it comes down to, is that too many people who

800
00:37:01,360 --> 00:37:04,440
Speaker 1: exist in the credit scoring system, because we all do,

801
00:37:04,520 --> 00:37:08,239
Speaker 1: whether whether or not we want to, we are we're

802
00:37:08,320 --> 00:37:12,040
Speaker 1: essentially in this grandfathered into this system that we didn't

803
00:37:12,080 --> 00:37:15,680
Speaker 1: choose to be a part of. Understanding the system is crucial,

804
00:37:15,760 --> 00:37:18,719
Speaker 1: and there's just a huge chunk of Americans who are

805
00:37:18,760 --> 00:37:20,280
Speaker 1: a part of it, but they don't know how it works.

806
00:37:20,560 --> 00:37:22,680
Speaker 1: And the more you understand how it works, you know

807
00:37:22,719 --> 00:37:25,520
Speaker 1: that paying your bills on time is crucial, that having

808
00:37:25,760 --> 00:37:28,920
Speaker 1: you know, a low credit utilization rate is one of

809
00:37:28,920 --> 00:37:31,040
Speaker 1: those big things that impacts your score in a massive way.

810
00:37:31,239 --> 00:37:33,279
Speaker 1: If you can learn how the credit scoring system works,

811
00:37:33,320 --> 00:37:35,600
Speaker 1: we have information up on our site if you're curious.

812
00:37:35,800 --> 00:37:38,000
Speaker 1: But I if you can learn how the system works

813
00:37:38,000 --> 00:37:41,000
Speaker 1: and then act inside of that system accordingly, you might

814
00:37:41,040 --> 00:37:44,320
Speaker 1: be frustrated by it occasionally, but you can succeed inside

815
00:37:44,320 --> 00:37:47,120
Speaker 1: of it even if the system is you know, not

816
00:37:47,480 --> 00:37:49,560
Speaker 1: the best. And we would have done something different if

817
00:37:49,560 --> 00:37:52,360
Speaker 1: we were starting something if we were starting over completely

818
00:37:52,360 --> 00:37:54,480
Speaker 1: from scratch. That's true. All right, man, let's get out

819
00:37:54,520 --> 00:37:54,680
Speaker 1: of here.

820
00:37:54,760 --> 00:37:57,160
Speaker 2: We hope everyone has a fantastic weekend and we will

821
00:37:57,160 --> 00:38:00,719
Speaker 2: see you back here. We will be back here your podcatcher,

822
00:38:00,760 --> 00:38:03,520
Speaker 2: in your earbuds, in your car stereo, or wherever it

823
00:38:03,560 --> 00:38:05,799
Speaker 2: is that you happen to listen to our podcast here

824
00:38:05,840 --> 00:38:08,680
Speaker 2: on Monday with a fresh ask how To Money episode.

825
00:38:08,960 --> 00:38:13,120
Speaker 2: But buddy, until next time, best Friends Out, Best Friends Out.