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Welcome to another edition of the Chicks
on the Right podcast, where we bring

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on our sponsor and BFF, Zach
Abraham, to talk about all things financial.

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So there's some haullabaloo in the news
today, Zach about the City Group

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chief economist, a fellow by the
name of Andrew Hollenhorst, who is echoing

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something that Jamie Diamond said very recently, which is that things are looking sketch

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and we are in for a hard
landing. So, first of all,

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are they right? And second of
all, should we even listen to what

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Jamie Diamond says? I know everyone
consults him all the time, but should

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we man? So I actually know
quite a bit on this topic. I

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wrote a term paper about how Jamie
Diamond came to power in college. No

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way, Yeah, Yeah. He
was the understudy of a guy named Sandy

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Wild who at the time in direct
violation of a law called Glass Stiegel that

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was put together right after the Great
Depression. Okay, so after the Great

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Depression they passed a law called Glass
Steagle, which in retrospect was probably a

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pretty good law. And it said
that different times of bank so like an

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insurance an insurance investment company, and
like a commercial bank and a consumer bank.

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They can't become one empty, right, keep them split up, kind

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of spread that risk out. And
it's interesting that that law was repealed,

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I want to say, in ninety
eight ninety nine, and within nine years

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of that law being repealed, you
had the financial crisis, right, So

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without glass Steagel being repealed, the
financial crisis wouldn't happen anyway. That was

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done by a guy named Sandy wil
who was the mentor of Jamie Dimond a

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City Bank, and at the time
I remember it being big news, and

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this kind of gives you an insight
to where Jamie Diamond came from and what

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he's about. So at the time
Sandy Wilde merged City Bank with Travelers Insurance

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Group and it was in direct violation
of the glass Stegel room. And so

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I remember the time sitting back and
going, how can they do this?

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Well, within six months or seven
months something like that of them merging it,

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Glass Stiegele was repealed, right,
So they knew, right they inside

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baseball, they knew they were going
to get away with it. So I

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think it kind of gives you insight
into Jamie is a political animal. He

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really knows the ropes and he's a
very very smart bank or two. I

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think that Jamie Diamond's hard landing message
might have some political bend in it because

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I think he's probably a guy He's
never going to come out and say this,

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but I think he's probably more in
favor of a Trump presidency than he

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has a Biden presidency. Interesting,
yeah, because see he Diamond's more into

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personal responsibility, and you can when
you hear a when you hear a Wall

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Street banker, go out there and
not be woke. You know, you

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know what I'm saying, Like,
if they have any of those leanings,

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they're going to be screaming them from
the rooftops because it's you know, it

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gets some invited to more cocktail parties
and all that kind of stuff. Yeah.

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Yeah, But I think his economic
assessment is correct in the sense that

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and you always have to caveat that
with the government, meaning if they launch

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any other stimulus or more handouts or
something like that, that could really push

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things off course. But I think
when you look at the economy, it's

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not so much an issue and we've
been talking about this for a while,

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it's not so much of an issue
of a big collapse coming. But when

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you think about the wind that was
put underneath the wings of the economy,

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right, the greatest monetary handouts in
history, three hundred and fifty billion last

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year to bail out the banks,
you know, the Fed spent what two

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and a half three trillion something like
that. I think it's more of an

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issue of unless you keep pumping artificial
stimulus into this thing, it's gonna have

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to sort of revert to more of
a more normal footing. And I think

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a return to a more normal footing
will look more like a hard landing.

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So I think so, and again
I think you have to caveat this with

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you know, if Trump gets elected, does he pass another kind of stimulus

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or or or tax cut type situation
that could change the calculus. So so

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looking for more, you know,
keeping an eye out and assuming that there

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aren't going to be any more big
injections of money or liquidity, it does

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look like things are heading that way. That being said, the government is

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still we're still running two point one
two point two trillion dollar deficits, so

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that is gonna that's gonna help booi
things. But I think you're looking at

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kind of I think what we're seeing
right now is kind of a good indicator

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of of what we think is going
to be in place for a while,

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which is, Look, there are
parts of the economy that are absolutely in

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recession, right like you look at
you know, look at Red Lobster,

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look at the Rubio's Tac Taco deal, right and there's and there's tons of

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corporate and retail real estate. It's
just getting flushed out right that they're experiencing

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recessionary you know, uh conditions right
now. The parts of the economy that

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are are standing in the way or
or associated with so much of the printed

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money that's coming down, they look
good. So it really is kind of

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a tail of two cities right now. And yeah, barring government intervention,

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I think some kind of recession is
unavoidable. How hard that landing is is

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really all dependent on government intervention,
right, So we got to we got

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to brace ourselves. Yeah, and
I and and now the flip side of

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that is is that I think regardless
of who gets elected, you know,

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it's not like Trump is some kind
of really tight pursed fiscally, you know,

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so he's going to keep the money
flowing either be a way of handouts,

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probably not so much that way,
but certainly I would think in tax

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cuts, so you know, and
I think the other thing we've got to

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consider too, is that I think
COVID changed. I think COVID will kind

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of be seen as like a miniature
eight o nine in the sense that,

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you know, eight o nine,
nothing has really returned to normal since then.

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I think COVID is going to be
like that to a certain degree,

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meaning every time there's a recession,
I think the populace is going to be

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looking at the government and going where's
the money? Right, Yes, right.

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I think they've changed the expectations going
forward of their constituents and the electorate

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at large. So I continue to
believe. I think that we need to

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brace ourselves against shocks, because we're
definitely prone to those and could have one

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at any moment looking at it the
way things are laid out. But I

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think that we always have to remember, you know, we want to guard

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against those shocks, but when they
happen, you probably need to resume investing,

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because you know, they're not just
gonna sit back and let things go

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that way anymore, right, They're
just gonna keep spending money. It's the

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easiest thing to do right. Well, now, now I feel like I

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can actually whenever I see Jamie Diamond
in the headlines, I don't have to

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go. I don't have to wonder
if I'm like getting scammed. So you're

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saying he's probably somebody that knows what's
up. Yeah, well, he sure

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is good at running a bank,
I'll tell you that much. I think

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he's, like I said, I
think that he's very politically moderate compared to

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his peers, which I find that
somewhat comforting. I think he is more

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of a free market guy, which
I found, But he'll also slit your

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throat. I mean, you know, he's the head Morgan, right,

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This isn't a guy that i'd want. I mean, I wouldn't want my

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grammar to get between him and a
hundred dollars bill. Yeah right. I'm

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not going to trust him with my
you know, I'm not going to trust

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him with my family. But he
is very shrewd and very sharp. The

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other thing is, think about the
the head of JP Morgan. It doesn't

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do him any good to be wrong, right true, And you think about

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commercial lending and all that other kind
of stuff that they're involved in. It

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doesn't benefit him if there is a
recession, but his bank touches so many

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parts of the economy, he's not
a guy to be He's not a guy

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to be just summarily dismissed if he
sees weakness in the economy. He's looking,

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he's seeing it right. He's got
credit cards, mortgages, business loans,

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floating rate business loans. They have
a really good picture of what's going

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on in the economy and tons of
data points. Yeah, he's not a

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guy that should be dismissed for sure. Well, and neither are you.

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And so this is why we always
tell folks to attend your seminars and to

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make sure that they're checking out your
radio show. Tell people how they can

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do that. Yeah, pretty easy
to find. So you can just go

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to any podcast site. You can
find our show on our podcast just Know

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your Risk Radio. It's free,
no pay walls, and then go to

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Buwardcapitalmanagement dot com. Know your Riskradio
dot com. Just google that Know your

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Risk Radio. We're pretty easy to
find, so it shouldn't be tough.

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Thank you so much, Zach,
Thank you appreciate it. Investment advisory service

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is offered through Trek Financial LLC and
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educational purposes only. It should not
be considered specific Investment advice. Does not

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take into consideration your specific situation,
and does not intend to make an offer

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or solicitation for the sale or purchase
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That past performance is no guarantee you of

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future results. For specific tax advice
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professional before implementing any strategy discussed here.