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It is time for another chick checking
episode. Was Zach Abraham, who is

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the CIO of Bullwark Capital Management and
he is our go to when it comes

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to all things money and finance related. And we're about to We're about to

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have a conversation Zach, because we
are mad, not at you. She's

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she's gonna throw down, Like this
morning, she was losing her mind,

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like she's in such a rage about
this. And I don't blame her because

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you're about to buy a house,
so like and I get it, I

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totally and listen, I'd be the
same way. I am the same way

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because there's like this such a lack
of personal responsibility and like it's just nobody

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cares anymore. Nobody cares. And
this is why I was very, very

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excited to talk to you today because
this is the news of the day that

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we're hearing about it, and you, as a friend and sponsor of our

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show, we know that you're the
go to. We're hearing now about this

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new Biden rule that takes effect May
first, that is going to basically make

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it so that if you have good
credit and if you followed the rules and

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played the played ball the right way
and you've paid your bills on time.

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You are now going to have to
take care of those people who haven't in

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the form of a mortgage interest rate
hike for just for people with great credit

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and who have done all the right
things. Help us understand this if it

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actually makes any sense at all,
because I'm in a rage. Well,

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I mean we we look, we
all have to pay the expense of our

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white privilege, so that that that's
right, that's I mean, we come.

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We knew the bill was coming due, right, Um, right,

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I didn't know this bill was coming
due, Marcas, Like I wasn't aware.

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No, And the pace at which
this stuff we were talking offline about

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some of the stuff that was going
on in our state. The pace of

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this stuff and the and the progression
of it and the speed of it is

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is talking right, Yeah, it's
crazy. What you're going to do here,

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though, is that you're I think
this this bill that he's signing in

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uh, you know, with all
the deep intellectual retrospection and deep thought that

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I'm sure buying put into it.
Uh, he probably sought console from John

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Fetterman about it. Oh yeah,
Yeah, there's the uniting of the great

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minds of our time. Right,
right, another deep banker, another really

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deeper um. I think ironically,
this will probably backfire on them. It's

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going to you know, it's going
to further pressure the real estate market in

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ways, right because let's face it, the majority of the home purchasers are

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coming from good credit, right,
It's most most of the people buy house

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have good credit. And this is
just another socialistic transfer capital. Right.

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Uh, we're rewarding those that haven't
made the best decisions. And the irony,

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guys, too, is is that
it is there. It is the

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it is really the lefts policies that
have put these people in an unadvantageous place,

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right, Like, look at well, what about the kids that come

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all stacked up with student loans?
You're like, well, who who did

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that? Right? That was Hillary
Clinton's brainchild back in ninety three when it

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made you know, student loans the
only type of loan that cannot be you

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know, rinsed away through a bankruptcy
proceeding. So you look at you look

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at all the setup of all this
stuff that they're saying that they're trying to

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combat. When the guy that starts
the fire tells you he's the fireman,

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right, you should probably sit back
and go, hey, something's going on

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here, right, But yeah,
just another form of socialism and wealthy redistribution,

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and it's going to result in people
that are not financially able to own

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a home own a home. And
we've seen that movie before, guys,

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right, yeah, how can they
do this? How how can they repeat

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especially when the I just saw an
article too that said, like the price

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of homes has dropped dramatically, like
another three percent. Yeah, and so

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so that happening at the same time
is that it's like it's a recipe for

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disaster. Yeah, And I think
they're just going for a grab, right,

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this is the land grab. They're
just trying to pass as much of

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this progressive nonsense as they possibly can. The other thing I think if Biden

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is going to try to do is
he's going to try to give away the

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farm going into the next election,
you know, just because by votes,

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right, I mean, then that's
effectively what they're doing. It's the appeasement

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thing. It's like it's the low
hanging fruit. It's what I'm gonna give

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you free crap. Here's your free
crap. And this is what they've done

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before, and we saw it in
two thousand and eight right. I mean

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we saw this in the election.
Here's all your free crap, and then

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people are like, oh, thank
you for all my free crap. And

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then it ends up and it ends
up being a total disaster, and then

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who ends up paying? Well,
we end up paying. We end up

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paying. Nothing is nothing is free. But then it ends up in a

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disaster, and you wonder, okay, like what three four years on the

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road. It may not even be
that long or that far off, but

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what are the ramifications of that,
like what happens? What? Yeah?

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And then how is it even going
to work? Right in terms of the

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infrast rate differentials and how they're going
to package this. Then you've got to

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start looking at the different class like
what is this going to do to collateralize

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mortgage securities? Right or what we
call you know, see it collateralized more

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or CMBs collateralized mortgage back securities.
It's going to create other I mean it.

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And but look, we've been watching
this for a long time. I

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mean, these these people are the
definition of shoot first and aim later.

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You know, um, you know, look at look at the Inflation Reduction

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Act, right, Hey, just
give it out. It's like an OPRAH

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winfree show. You get a car, You get a car, You get

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a car, and um, you
know, with no thought to hey,

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maybe if we spend another eight hundred
billion dollars we don't have, maybe that

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gin's up inflation even more, you
know. And so the way I keep

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thinking about this, and the joke
that we have on our show is third

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grade diplomacy, meaning if you want
to know the practices or the or the

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ideas that these people are going to
roll out, right, take a problem

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to a third grade class and ask
them to do right, and they're going

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to give you this same answer.
Right, oil is bad, it's hurting

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the economy, will make oil illegal. Right, a third grade class would

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come up with these answers. People
can't afford houses, We'll stick those guys

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with a higher rate and give the
poor people a lower rate, or you

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know whatever. And so you just
continue down this path and the outcomes are

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very predictable. Right, They're not
good, not for anybody. Nobody wins.

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The other thing, too, is
watch lending pull back in these areas.

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They're probably gonna get the exact because
think about that, in order to

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facilitate this, it's going to have
to be government backed mortgages, which they'll

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probably do, right, they k
already do during FHA and stuff. Oh

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my god, is right. But
what I'm saying is you're going to crimp

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lending, right because if you're a
lender, if you're a free lender or

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a bank out there, you're going
to give So you you us three walk

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in there with you know, seven
eighty to eight twenty credit scores and another

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guy walks in behind us with six
fifty. You're no natural lender is going

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to give him a lower rate than
he get us? Why because he presents

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more risk? Right? Right?
So what's going to happen. Available credit

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in that bracket is going to pull
back and they're going to end up with

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the exact same opposite effect of what
they're trying to get. And to me,

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the weirdest thing about it, I
think is that it shouldn't be a

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partisan issue. Like the people that
are going to be impacted by this,

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I would assume, I would like
to believe that Democrats also have people on

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their side that have really good credit
that want to buy houses. I mean,

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how are they not mad at that? How is this like only like

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a conservative issue that conservatives are mad? Everybody should be mad at this,

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right, what did you miss it? But then again, you think that

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they would have been mad about the
student loan thing too, because I knew

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people who are I thought the same
thing about people who are high income or

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whatever, who I thought would feel
the same way about at student loans.

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And they didn't. They really didn't. So it is surprising, you know,

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you think they feel the same way
about socialism in general. But the

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joke because because they're capitalists. But
I'm like, you're a capitalist, but

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yeah, you believe in socialism,
so what the hell? But they but

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they do fall in. It's it's
bizarre how they think this is all okay,

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Yeah, it is really weird.
And I don't really think. I

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don't really know if capitalism well I
do, I shouldn't say I know,

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But I don't think capitalism is life
and well in this country. I think

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that at some point we've decided and
there have been abused as a capitalism which

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they're always have been right, and
we always I always use an analogy that

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capitalism is like a really good guard
dog, right, and that guard dog

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is excellent at doing its job as
long as you don't leave the gate open,

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right, And and but look at
that. You know they're sitting there

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saying they want to help, you
know, people of lower incomes and help

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wages. Then quit sponsoring this this
unholy marriage between business and government, right

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yeah, quit subsidizing consolidation. When
you look at it's really interesting when they

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talk about we got to address low
wages. Okay, Well, look at

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the consolidation that's happened inside of industries. And there's really great numbers on this,

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and there's a bunch of great books. I've actually interviewed a couple of

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guys on our show that that have
written books on this topic, talking about

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how these buyouts of these companies.
Right, these consolidations. When you look,

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if you go back like thirty years, you had the average sector,

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the average industry on a nationwide basis, had somewhere between like twelve to sixteen

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players. If you go run those
same metrics today, you're down to like

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three to four. Okay, And
then everybody wonders why wages aren't increasing.

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When there is less competition competition for
labor, you will have lower wages.

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Right, It's just it is what
it is. It's a it's a it's

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not a crazy theoretical thing of mine. It's just less competition. Competition equals

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lower wages, and so they're never
going to address the real issues. And

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the reason they're not going to address
the real issues is those giant global conglomerates

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or who we're paying for their re
election campaigns. You know, Yeah,

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that makes sense. It's all such
a mess, it is it is.

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Do you have any good news about
anything? Well, my son's pitching and

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is literally gamed more an right,
So yes, well that's great and I'm

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coming down to Arizona see you guys
next week. I mean, I consider

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that that is true. That yeah. Other than other than that, guys,

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I mean, that's kind of the
crazy thing is it's pretty bleak out

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there. And the thing that I
that is so troubling to me is that

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so many average people in the populace
don't seem to really see it, you

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know, don't seem to be that
concerned. And I don't think we're dealing

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with political issues right now, you
know, like you guys have said,

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we're not debating tax rates, right
We're not debating social spending. We're debating

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whether parents have any parental rights anymore. We're debating whether good credit is a

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penalty or you know, they it's
just it's madness. It's madness. Yeah,

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you're absolutely right. I mean,
I guess the good way to look

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at it is that we have you
to to bounce these you know, these

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discussions off of, and we can
actually get an informed opinion about things that

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are happening in the world of finance. I don't know how much comfort that

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is to the general public, but
I know we're very glad that you're there

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and that you're helping take care of
people and their finances at Bulwark Capital.

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Where can people learn more about you
and what you can do for them,

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Yeah, I think one of one
of the easiest ways to do is is

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the radio show, So Know Your
Risk Radio Podcast. We have a show

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that airs in Seattle, Portland and
Phoenix and then we broadcast it out.

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You know, we podcast it just
like you guys do. So they can

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Know Your Risk Radio podcast. Go
to the website Bulwark Capital Management dot com.

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And our whole focus is on risk
management, meaning, you know,

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right now, our portfolios are very
defensively positioned because I think what's coming down

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the pipe is pretty obvious, and
you know, I think a lot of

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people are going to get hurt,
and we're just trying to prevent that as

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much as we can. I love
that well, Zach Abraham. If you

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guys are just now tuning in,
Chief investment officer at Bulwark Capital Management,

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and again check him out at Know
Your Risk Radio dot com. Thanks print

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these at us again and we will
see you soon. All right, ladies,

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see you next week. Investment advisory
services offered through Trek Financial LLC,

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n SEC registered investment advisor. Information
presentatives for educational purposes only. It should

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not be considered specific investment advice,
does not taken to consideration your specific situation,

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and does not intend to make an
offer or solicitation for the sale or

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purchase of any securities or investment strategies. Investments involved risk and are not guaranteed,

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and past performance is no guarantee of
future results. For specific tax advice

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00:12:26,360 --> 00:12:31,360
on strategy, consult with a qualified
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