It is time for another chick checking episode. Was Zach Abraham, who is
the CIO of Bullwark Capital Management and he is our go to when it comes
to all things money and finance related. And we're about to We're about to
have a conversation Zach, because we are mad, not at you. She's
she's gonna throw down, Like this morning, she was losing her mind,
like she's in such a rage about this. And I don't blame her because
you're about to buy a house, so like and I get it, I
totally and listen, I'd be the same way. I am the same way
because there's like this such a lack of personal responsibility and like it's just nobody
cares anymore. Nobody cares. And this is why I was very, very
excited to talk to you today because this is the news of the day that
we're hearing about it, and you, as a friend and sponsor of our
show, we know that you're the go to. We're hearing now about this
new Biden rule that takes effect May first, that is going to basically make
it so that if you have good credit and if you followed the rules and
played the played ball the right way and you've paid your bills on time.
You are now going to have to take care of those people who haven't in
the form of a mortgage interest rate hike for just for people with great credit
and who have done all the right things. Help us understand this if it
actually makes any sense at all, because I'm in a rage. Well,
I mean we we look, we all have to pay the expense of our
white privilege, so that that that's right, that's I mean, we come.
We knew the bill was coming due, right, Um, right,
I didn't know this bill was coming due, Marcas, Like I wasn't aware.
No, And the pace at which this stuff we were talking offline about
some of the stuff that was going on in our state. The pace of
this stuff and the and the progression of it and the speed of it is
is talking right, Yeah, it's crazy. What you're going to do here,
though, is that you're I think this this bill that he's signing in
uh, you know, with all the deep intellectual retrospection and deep thought that
I'm sure buying put into it. Uh, he probably sought console from John
Fetterman about it. Oh yeah, Yeah, there's the uniting of the great
minds of our time. Right, right, another deep banker, another really
deeper um. I think ironically, this will probably backfire on them. It's
going to you know, it's going to further pressure the real estate market in
ways, right because let's face it, the majority of the home purchasers are
coming from good credit, right, It's most most of the people buy house
have good credit. And this is just another socialistic transfer capital. Right.
Uh, we're rewarding those that haven't made the best decisions. And the irony,
guys, too, is is that it is there. It is the
it is really the lefts policies that have put these people in an unadvantageous place,
right, Like, look at well, what about the kids that come
all stacked up with student loans? You're like, well, who who did
that? Right? That was Hillary Clinton's brainchild back in ninety three when it
made you know, student loans the only type of loan that cannot be you
know, rinsed away through a bankruptcy proceeding. So you look at you look
at all the setup of all this stuff that they're saying that they're trying to
combat. When the guy that starts the fire tells you he's the fireman,
right, you should probably sit back and go, hey, something's going on
here, right, But yeah, just another form of socialism and wealthy redistribution,
and it's going to result in people that are not financially able to own
a home own a home. And we've seen that movie before, guys,
right, yeah, how can they do this? How how can they repeat
especially when the I just saw an article too that said, like the price
of homes has dropped dramatically, like another three percent. Yeah, and so
so that happening at the same time is that it's like it's a recipe for
disaster. Yeah, And I think they're just going for a grab, right,
this is the land grab. They're just trying to pass as much of
this progressive nonsense as they possibly can. The other thing I think if Biden
is going to try to do is he's going to try to give away the
farm going into the next election, you know, just because by votes,
right, I mean, then that's effectively what they're doing. It's the appeasement
thing. It's like it's the low hanging fruit. It's what I'm gonna give
you free crap. Here's your free crap. And this is what they've done
before, and we saw it in two thousand and eight right. I mean
we saw this in the election. Here's all your free crap, and then
people are like, oh, thank you for all my free crap. And
then it ends up and it ends up being a total disaster, and then
who ends up paying? Well, we end up paying. We end up
paying. Nothing is nothing is free. But then it ends up in a
disaster, and you wonder, okay, like what three four years on the
road. It may not even be that long or that far off, but
what are the ramifications of that, like what happens? What? Yeah?
And then how is it even going to work? Right in terms of the
infrast rate differentials and how they're going to package this. Then you've got to
start looking at the different class like what is this going to do to collateralize
mortgage securities? Right or what we call you know, see it collateralized more
or CMBs collateralized mortgage back securities. It's going to create other I mean it.
And but look, we've been watching this for a long time. I
mean, these these people are the definition of shoot first and aim later.
You know, um, you know, look at look at the Inflation Reduction
Act, right, Hey, just give it out. It's like an OPRAH
winfree show. You get a car, You get a car, You get
a car, and um, you know, with no thought to hey,
maybe if we spend another eight hundred billion dollars we don't have, maybe that
gin's up inflation even more, you know. And so the way I keep
thinking about this, and the joke that we have on our show is third
grade diplomacy, meaning if you want to know the practices or the or the
ideas that these people are going to roll out, right, take a problem
to a third grade class and ask them to do right, and they're going
to give you this same answer. Right, oil is bad, it's hurting
the economy, will make oil illegal. Right, a third grade class would
come up with these answers. People can't afford houses, We'll stick those guys
with a higher rate and give the poor people a lower rate, or you
know whatever. And so you just continue down this path and the outcomes are
very predictable. Right, They're not good, not for anybody. Nobody wins.
The other thing, too, is watch lending pull back in these areas.
They're probably gonna get the exact because think about that, in order to
facilitate this, it's going to have to be government backed mortgages, which they'll
probably do, right, they k already do during FHA and stuff. Oh
my god, is right. But what I'm saying is you're going to crimp
lending, right because if you're a lender, if you're a free lender or
a bank out there, you're going to give So you you us three walk
in there with you know, seven eighty to eight twenty credit scores and another
guy walks in behind us with six fifty. You're no natural lender is going
to give him a lower rate than he get us? Why because he presents
more risk? Right? Right? So what's going to happen. Available credit
in that bracket is going to pull back and they're going to end up with
the exact same opposite effect of what they're trying to get. And to me,
the weirdest thing about it, I think is that it shouldn't be a
partisan issue. Like the people that are going to be impacted by this,
I would assume, I would like to believe that Democrats also have people on
their side that have really good credit that want to buy houses. I mean,
how are they not mad at that? How is this like only like
a conservative issue that conservatives are mad? Everybody should be mad at this,
right, what did you miss it? But then again, you think that
they would have been mad about the student loan thing too, because I knew
people who are I thought the same thing about people who are high income or
whatever, who I thought would feel the same way about at student loans.
And they didn't. They really didn't. So it is surprising, you know,
you think they feel the same way about socialism in general. But the
joke because because they're capitalists. But I'm like, you're a capitalist, but
yeah, you believe in socialism, so what the hell? But they but
they do fall in. It's it's bizarre how they think this is all okay,
Yeah, it is really weird. And I don't really think. I
don't really know if capitalism well I do, I shouldn't say I know,
But I don't think capitalism is life and well in this country. I think
that at some point we've decided and there have been abused as a capitalism which
they're always have been right, and we always I always use an analogy that
capitalism is like a really good guard dog, right, and that guard dog
is excellent at doing its job as long as you don't leave the gate open,
right, And and but look at that. You know they're sitting there
saying they want to help, you know, people of lower incomes and help
wages. Then quit sponsoring this this unholy marriage between business and government, right
yeah, quit subsidizing consolidation. When you look at it's really interesting when they
talk about we got to address low wages. Okay, Well, look at
the consolidation that's happened inside of industries. And there's really great numbers on this,
and there's a bunch of great books. I've actually interviewed a couple of
guys on our show that that have written books on this topic, talking about
how these buyouts of these companies. Right, these consolidations. When you look,
if you go back like thirty years, you had the average sector,
the average industry on a nationwide basis, had somewhere between like twelve to sixteen
players. If you go run those same metrics today, you're down to like
three to four. Okay, And then everybody wonders why wages aren't increasing.
When there is less competition competition for labor, you will have lower wages.
Right, It's just it is what it is. It's a it's a it's
not a crazy theoretical thing of mine. It's just less competition. Competition equals
lower wages, and so they're never going to address the real issues. And
the reason they're not going to address the real issues is those giant global conglomerates
or who we're paying for their re election campaigns. You know, Yeah,
that makes sense. It's all such a mess, it is it is.
Do you have any good news about anything? Well, my son's pitching and
is literally gamed more an right, So yes, well that's great and I'm
coming down to Arizona see you guys next week. I mean, I consider
that that is true. That yeah. Other than other than that, guys,
I mean, that's kind of the crazy thing is it's pretty bleak out
there. And the thing that I that is so troubling to me is that
so many average people in the populace don't seem to really see it, you
know, don't seem to be that concerned. And I don't think we're dealing
with political issues right now, you know, like you guys have said,
we're not debating tax rates, right We're not debating social spending. We're debating
whether parents have any parental rights anymore. We're debating whether good credit is a
penalty or you know, they it's just it's madness. It's madness. Yeah,
you're absolutely right. I mean, I guess the good way to look
at it is that we have you to to bounce these you know, these
discussions off of, and we can actually get an informed opinion about things that
are happening in the world of finance. I don't know how much comfort that
is to the general public, but I know we're very glad that you're there
and that you're helping take care of people and their finances at Bulwark Capital.
Where can people learn more about you and what you can do for them,
Yeah, I think one of one of the easiest ways to do is is
the radio show, So Know Your Risk Radio Podcast. We have a show
that airs in Seattle, Portland and Phoenix and then we broadcast it out.
You know, we podcast it just like you guys do. So they can
Know Your Risk Radio podcast. Go to the website Bulwark Capital Management dot com.
And our whole focus is on risk management, meaning, you know,
right now, our portfolios are very defensively positioned because I think what's coming down
the pipe is pretty obvious, and you know, I think a lot of
people are going to get hurt, and we're just trying to prevent that as
much as we can. I love that well, Zach Abraham. If you
guys are just now tuning in, Chief investment officer at Bulwark Capital Management,
and again check him out at Know Your Risk Radio dot com. Thanks print
these at us again and we will see you soon. All right, ladies,
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