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Speaker 1: Yeah, I mean there really is a tail of two cities, right.

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You know, you've got the difference between Main Street and

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Wall Street. And you're talking about the working poor, Well,

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the reality is, I mean the middle class they're becoming

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the working poor. You know, here in Ohio they passed

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a rating increase just for power electricity that kicked in

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the summer, and so people's utility bills went up as

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much as thirty percent. You know, not to mention the increase.

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You know, every time we go to the pumps and

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to the grocery store. So in taxes, right, I mean,

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the property taxes, everything has just been increasing, and so

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you know, people continue. We've had more people borrow against

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the retirement accounts. They're four to one keys now than

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they did. You know in two thousand and eight and

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two thousand and nine.

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Speaker 2: You are listening to Carrie Let's as Financial Survival Network

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where you get valuable information. You just can't find anywhere

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else to thrive in today's trying times. You need the

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Financial Survival Network now more than ever. Go to Financial

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Survivalnetwork dot com and get your free newsletter and gift.

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Financial Survival Network now more than ever.

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Speaker 3: And welcome you are listening to and watching the Financial

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Survival Network. I'm your host, Carrie Letz. Hey, it's August sixth.

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This first week of August has been mind blowing here.

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The brash in the markets, I mean, I guess it

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qualifies as a crash. Is this the start of something bigger?

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Or is there something else afoot here? And Sidell is

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with us now, Ed. It's great to have you back. Hey.

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I'd like to be laughing like our vice president here,

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but I just can't find it in myself.

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Speaker 1: Oh yeah, there's not a whole lot of things to

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be laughing at for for sure, But thanks for having

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me back. Yeah. You know, I think what we're seeing

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right now, Carrie, is you know, we saw some profit

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taking followed by by panic, and honestly, I think this

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is what the feds. I mean, they've been reactionary the

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whole time. They've never been proactive under Pal's leadership or

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lack of it, And you know, but it does give

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them the ability to lower rates and dumb more money

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into the system, do some more quantitative easing I think

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is going to happen as well. But I think they're

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going to lower rates as much as one percent if

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not a little bit more before the end of the year.

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Speaker 3: Hey, so is this good for gold? Is it good

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for stocks? What do you do? Because the average person

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out there, which I feel like I'm one of them,

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is not really sure what to do. My gut field

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tells me this little mini crash here, the fact that's

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happening in August, the fact that you know, they were

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leaning towards cutting rates the FED, but they didn't do

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it yet. There's something afoot here.

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Speaker 1: Yeah, yeah, you know, I mean we were expecting a

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correction as far back as is March April, you know,

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and we did. We hit correction, you know, territory, we

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you know, we almost did bear territory with a with

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a Nasdaq. But again, you know, I think it was

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this this panic you know, the the the panic index,

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the VICS that that went up like one hundred and

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whatever it was one hundred and fifty percent, one hundred

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and sixty percent or one hundred and eighty percent whatever was,

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you know, in a in a seven eight hour period,

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you know, just showed that.

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Speaker 3: The sell off.

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Speaker 1: You know, I don't want to say that it was planned,

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but you know, those the powers that be, you know,

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the these hedge funds, these large institutional investors. You know,

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they were taking profits knowing that you know, the the

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FEDS would be able to come back in law rates,

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you know, do some more easing and then have the

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ability to uh uh, you know, turn around and make

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some more money. But I think the reason that they're

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going to lower rates as a bigger picture thing from

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an election cycle standpoint, is to have the market rally

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right before the election and say, see, I told you so,

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everything's great.

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Speaker 3: You could very well be correct there. I certainly wouldn't

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put it past them, But you know, little things like inflation. Now,

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I'll admit I'm affected by it just like you, but

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not so much as the people, the working poor, the

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middle class. Those people are being decimated, being crushed. Yeah, yeah,

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I mean there really is a tail of two cities, right.

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You know, you've got the difference between Main Street and

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Wall Street, and you're talking about the working poor. Well,

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the reality is, I mean the middle class, they're becoming

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the working poor. You know, here in Ohio they passed

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a rating increase just for for power electricity that kicked

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in the summer, and so people's utility bills went up

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as much as thirty percent, you know, not to mention

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the increase you know every time we go to the

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pumps into the grocery store. So in taxes, right, I mean,

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the property taxes, everything has just been increasing, and so

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you know, people continue We've had more people borrow against

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the retirement accounts. They're four to one keys now than

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they did, you know, in in two thousand and eight

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and two thousand and nine. You know, we've got you know,

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bankruptcies up, We've we've got repossessions on vehicles up. So

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all of these.

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Speaker 1: Things that we continue to look at. I say it

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all the time, right, the dead bubble, and it just

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keeps mounting and mounting and mounting. And we're just talking

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about lower rates. You know, all that is going to

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do is continue to kick the keyn down the road,

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and inflation is going to you know, just get higher

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and higher, especially under the current economic policies were lack thereof.

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So we may get temporary relief as far as the

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market goes, but Main Street, I mean it's really it's

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not going to benefit them nearly as much as it is.

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Speaker 3: You know, Wall Street, for sure, main Street's bleeding. Wall

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Street is profiting right as usual, right, Yeah, which is typical. Yeah,

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well that's the way the system is designed. I hate

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to say that everything's rigged, but everything is rigged. Yeah.

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Speaker 1: You know when when you see the same hands being dealt,

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you know, it's it's cyclical.

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Speaker 3: You know.

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Speaker 1: We we saw it, you know, in in the you know,

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early eighties, we saw it the tech bubble with the

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housing bubble, and you know, we're we're kind of seeing

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it right now.

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Speaker 3: You know, every.

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Speaker 1: Every couple of years there there seems to be a

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reset where we get to a certain point and you know,

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things back off, and you know, those who make money

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make more, and you know those who don't, you know,

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they they don't, they lose out. And so that's I

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think that's why, you know, having a strong economic policy

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and in a more importantly strong energy policy and bringing

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manufacturing back to the US is going to be so

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very important in order to have the you know, the

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the American dream be reinstituted, be because I think it's

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faltering right now.

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Speaker 3: I think you are correct on that one for sure.

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So this looks like it's going to be good for gold,

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precious metals. Maybe crypto crypto even got hit ed.

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Speaker 1: Yeah, crushed, Yeah, I saw a gain all the way

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down to forty nine thousand. Obviously bounced back up, but

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then you know that was a pretty steep drop. Gold

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went down a little bit. But you know, I think, uh,

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with what we're seeing right now, the US dollar, you know, dropping,

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not getting a little bit weaker, you know that's going

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to be good for gold. I mean, that's telling us

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that there's some inflationary pressure still on the horizon. You know,

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everyone's so focused on the jobs numbers, and you know

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those I think those stats are skewed. You know, goes

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back if you hold saying. My economic professor used to

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say all the time, right, there's lies, there's damn lies,

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and there's statistics.

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Speaker 3: Mindset that break. We have the same we got to

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the same school there we mayn't.

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Speaker 1: And you know, so you really have to do your

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own research. You really have to look at the big picture.

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You know, everyone's just so myopic and they're thinking until yesterday,

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right when you know the market was tumbling and you know, well,

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you know, now's the time to run, you know, go

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ahead and cash in your chips and everything else. Well

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by that time, it's already too late, right, those in

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the know already got out, you know, and but I

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think there's still some good buys out there.

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Speaker 3: But well, i'll tell you what, if you have.

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Speaker 1: Cash shitting on the sidelines. I don't think this is

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done yet. I think there's still going to be some

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yo yoing going on and until they lower rates, and

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I think that that's going to cause a rally in

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the near term, right.

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Speaker 3: So between now and the end of the year.

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Speaker 1: But I'm telling you, I, in my heart of hearts,

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I think the election is going to have a huge

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effect on the outcome of not just the economy, but

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the markets that everyone's retirement savings.

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Speaker 3: Eight. I want to talk about housing for a minute,

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because that got his hand in hand with rate cuts.

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Already got inventory shortage. Although as rates have gone higher,

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less people buying, but the inventory is so low. We

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do have pockets and weakness like in Miami, in Florida

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the condom market for different reasons. Those are localized reasons,

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you know, due to state law requirements, insurance crisis in Florida.

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But I will point you to we're talking here. August sixth,

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lenaar just made a new all time high all right

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or close to it. It's all time high fifty two

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week high it was what eighty two fifty three, it's

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barely under that at one seventy four. You know, it's

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the same with like you look at the h Horton

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and all of the all of if you look at

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the charts on them, all of them are going higher

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as of today. So what does that tell you? Huh?

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Speaker 1: Well, absolutely, And I think that's part and parcel to

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you know, the you know, the bonds going down, the

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treasure US treasuries, the two year and the ten year,

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you know, dipping down so much. I saw yesterday where

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you know, uh, thirty year fixed rate mortgage. You know

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it's five point eight percent, you know, and and and

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so I think that's spurring on okay, you know people

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that may have been waiting on the sidelines, but you know,

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housing is so unaffordable. In order to make it more affordable,

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you know, interest rates have to come down. You know,

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it's a double edged sword. But then the prices are

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go back up, right, So it's and it's supplying demand.

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You know, you were talking about inventory, you know here

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in our area, I mean there's hardly any inventory. I

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mean people are knocking on doors, you know, hey, do

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you want to sell your home because there just isn't

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anything out there. There's definitely not anything affordable. I mean,

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you know, you're lucky if you can find any kind

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of a home under a half a million dollars in

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any neighborhood. And that's you know, when the average price

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of our home four or five years ago was you know,

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just a couple hundred thousand. Now, and don't get me wrong,

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that's a lot of money too, but to have it,

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you know, more than double in such a short period

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of time, you know, that's telling you that there's something

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else afoot for sure.

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Speaker 3: Yeah. Yeah, So once the election madness is over, we're

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going to have a real crash or rate's going to

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be firmly rate cuts ensconced. We go on and on,

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and how does this fit in with the carry trade

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as well?

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Speaker 1: So, you know, I think the outcome of the election, right,

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if if the current economic policies it's the current administration

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and the current policy caes are being furthered on, it's

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going to create a huge economic downturn and I think

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the market is going to suffer dramatically.

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Speaker 3: You know, if there is a change in the.

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Speaker 1: Administration and more imporly the economic policy and we we

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become energy independent again. Uh you know, I I think

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that's we're gonna see, you know, a spurt of economic

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growth that's going to be continued on, you know. I

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you know, talking about the the carry trade, especially as

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it relates to the end, you know, I I don't

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think that that's what caused the the huge fear issue.

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Speaker 3: Uh yesterday and the and the big decline.

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Speaker 1: It was the first time that the Nasdaq was ever

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down a thousand points, you know, in in one day,

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ever at any point in time, you know. And so

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when Japan raised their rates, you know, it shrunked that

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arbitrage and and so a lot of people were buying

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that on margin. So they were borrowing money from foreign

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banks and Japanese banks especially in buying it in the end,

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and you know, paying er point one percent or quarter percent,

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and you know, even putting it in the US treasuries

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at you know, five percent and that you know, that's

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a huge arbitrage. But then when you margin that account

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and you're having to pay interest on top of the loan,

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now all of a sudden you have a negative arbitrage.

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Speaker 3: You know.

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Speaker 1: As as they went Japan raised rates and so that

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affected the end. So I think that added insult to injury,

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you know. But when you look at the global scale,

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you know, the the global economy, you know, there is

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you know, continued inflation everywhere. Uh, you know, we already

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saw the EU, you know, lower rates. I think everyone's

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kind of waiting on the US because if the US

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economy falters, it's going to affect the you know, the

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the global economy as well. So I think that will again,

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you know, lower the end, you know, so as not

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as low as what it was. But you know, there's

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all these things that we have to look at. But

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as a standalone, you know that carry trade, I don't

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think that that was the cause that affected the huge

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decrease over the last couple of days in the markets.

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Speaker 3: Yeah, it's a kind of a pile on effect, I think, yeah, absolutely.

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You know, one thing that nobody's covering is the implosion

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of the Chinese economy, the the solution of the Chinese

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economic miracle over the past forty years. It's going it

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went up like that and now it's going down like that.

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It's it's downright scary, and like you said about statistics,

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as much as you can't believe US government economic statistics,

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you can't believe anything the Chinese say, well exactly.

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Speaker 1: I mean, you know that's why, you know, investing in

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Chinese companies I think is so risky because they don't

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follow the you know, the gap principles, so you don't

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really know what the underlying profitability of these companies are.

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And you know, so having our pensions and you know

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sometimes a lot of government pensions in the and these

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funds that they have that are investing in these Chinese companies,

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I think is you know, the lack of a really

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good fiduciary standard. I you know, I don't think that

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it's it's proper because you know, I think they're at

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a tipping point. You know, you still have all these

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cities in China that that are completely vacant and they're struggling.

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So I think they're faltering way more so than we

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are right now.

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Speaker 3: I couldn't agree more. And the massive bloods they've been

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having downright biblical business leading Shanghai the really the business

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capital of the country. And you know, they said somewhere

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around a million restaurants have closed in China and all

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of these problems multi did you say a million restaurants?

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Million restaurants in China.

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Speaker 1: Have Okay, but I knew it was a lot, I

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didn't that. Well, okay, that's significant no matter how you

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cut it. I mean that's huge. Mm.

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Speaker 3: Yeah, so a lot of things. But of course the

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American press doesn't cover any of this, so it really

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is only giving giving you like a small portion of

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the story and then blaming it on sun spots or something.

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Speaker 1: Well, yeah, I mean we all have like we're surprise, right,

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you know, it's it's yeah, you know what, Oh my gosh,

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now my mind went playing acount and now you know

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the rest of the story. Well, you know, we're not

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being told the rest of the story.

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Speaker 3: That's that's the problem, multiple stories on China. That's one

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million restaurant enclosures this year, just this year, been many

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many more in prior years. But of course, again that's

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the rest of this story. So it's the global economy

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here the only thing holding it up, but really is

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the United States. And that's another reason why this stock

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market is doing better here because yeah, there's a lot

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of monkey business going on, but there's a lot of

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flight capital and you can only own so much goal

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that physically account for it, and then you've got to

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put it into paper to some extent.

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Speaker 1: And yeah, because you have to be able to I

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mean currency, you have to be able to spend it.

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And that's why you know, Brisa is is a big deal. Right,

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I'm not mitigating that at all, but you know it's

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I do not right now if depending on the outcome

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of the election. You know, I do not foresee the

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US dollar being surpassed as the reserve currency, because where

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else are you going to put your money?

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Speaker 3: I mean you know there is an alternative? Right? Yeah? Well,

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quite a mess they've gotten us into, hopefully, like go, well,

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Rogers said, ignorance got us into this mess, and ignorance

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I'll get us out right, well said, well set So

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all right, ED, just tell us where do we find you?

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How do we connect with you on the web.

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Speaker 1: Yeah, you can find us at egsifinancial dot com. That's

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the best place to find.

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Speaker 3: Us, excellent, And that link is in the shut out

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to this interview on Financial Survival Network dot com. When

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00:18:25,440 --> 00:18:28,240
you go there, please sign up for your free newsletter.

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00:18:28,519 --> 00:18:30,839
You just click Ed's link you get to a site

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find out all about it. Ed I like your approach.

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You're not locked into stocks which sometimes are really a

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four letter word like yesterday. And you know you got

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to keep an open an open attitude, an open mindset

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when you're looking for the long term, because things change

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and therefore your investments need to change with them. Absolutely

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all right, we'll see you soon. Thanks for stopping by it.

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Speaker 2: Thanks for having me, Thanks for listening to Carey Leuxes.

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Financial Survival Network your solution to today's trying times. For

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00:19:05,880 --> 00:19:10,680
the latest, go to Financial Survivalnetwork dot com. Financial Survival

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00:19:10,720 --> 00:19:13,119
Network now more than ever,