WEBVTT 1 00:00:00.080 --> 00:00:04.200 Been across my street, locally, statewide, nationally, before all the 2 00:00:04.280 --> 00:00:05.759 happenings across the globe. 3 00:00:05.919 --> 00:00:08.919 Fifty five krc the talk station. 4 00:00:12.039 --> 00:00:15.240 Heyoh, five fifty five KRCD Talk Station, A very happy Monday, 5 00:00:15.279 --> 00:00:18.000 see you. Oh he's made extra special because we get 6 00:00:18.000 --> 00:00:21.039 to hear from money. Monday's Brian James. Brian James, Smallworth 7 00:00:21.120 --> 00:00:24.079 financial financial planner. He is, so he's on top of 8 00:00:24.120 --> 00:00:26.000 money matters. Welcome back, Brian James. Hope you had a 9 00:00:26.039 --> 00:00:26.719 wonderful weekend. 10 00:00:27.519 --> 00:00:30.320 Thank you, and good morning and happy President's Day to you. 11 00:00:30.440 --> 00:00:32.479 I hope your family got you something nice. 12 00:00:33.079 --> 00:00:37.320 Yeah right, My wife and I don't even get it. 13 00:00:37.759 --> 00:00:39.840 Give it's all right. My wife and I his anniversary 14 00:00:39.880 --> 00:00:42.600 of our our engagement is Valentine's Day, and we don't 15 00:00:42.600 --> 00:00:45.159 even bother getting each other something for Valentine's Day. So 16 00:00:45.320 --> 00:00:47.759 less less likely that something's going to show up on 17 00:00:48.240 --> 00:00:51.280 President's Day. But stranger things have happened in this world. 18 00:00:51.359 --> 00:00:53.079 Do you get a president for President's Day? 19 00:00:54.200 --> 00:00:54.399 Uh? 20 00:00:54.439 --> 00:00:55.079 No, I don't. 21 00:00:55.119 --> 00:00:57.679 I was really hoping that you maybe maybe the Thomas 22 00:00:57.679 --> 00:00:59.560 family had something going so we can steal it and 23 00:00:59.759 --> 00:01:00.560 start it up here. 24 00:01:00.560 --> 00:01:02.280 But now we're kind of the same way. 25 00:01:02.359 --> 00:01:05.159 We really just celebrate whatever we bought together last Well, 26 00:01:05.159 --> 00:01:06.599 happy Valentine's. 27 00:01:06.079 --> 00:01:08.280 Day to us. There you go at that time. 28 00:01:08.319 --> 00:01:10.680 That works for anniversaries too, just as he puts up 29 00:01:10.680 --> 00:01:14.959 an inflatable William Henry Harrison in his front yard to 30 00:01:15.000 --> 00:01:16.200 celebrate President's Day. 31 00:01:16.680 --> 00:01:19.840 All right, that's a small fan club, that is, You. 32 00:01:19.959 --> 00:01:22.719 Got that right, And maybe everybody's now curious to where 33 00:01:23.120 --> 00:01:26.040 wants to know where Joe got that particular inflatable item. 34 00:01:26.120 --> 00:01:26.680 Anyway. 35 00:01:27.120 --> 00:01:30.359 Pivoting over to money matters and something a lot of 36 00:01:30.400 --> 00:01:33.920 people economists of different stripes are saying Trump tariffs could 37 00:01:34.000 --> 00:01:37.040 lead to some temporary inflation. I mean, if you just 38 00:01:37.120 --> 00:01:39.200 do the numbers on it, it kind of makes sense, 39 00:01:39.280 --> 00:01:42.879 doesn't If if you increase the price or the tariff 40 00:01:42.920 --> 00:01:45.400 on something by twenty five percent, and it's important into 41 00:01:45.400 --> 00:01:47.640 the United States, that cost is going to be passed 42 00:01:47.640 --> 00:01:49.480 along to the consumer on some level. 43 00:01:49.480 --> 00:01:51.519 Brian, Yeah, it absolutely is. 44 00:01:51.560 --> 00:01:54.920 A tariff is literally nothing more than making stuff cost more. 45 00:01:54.959 --> 00:01:56.079 That's the definition of it. 46 00:01:56.159 --> 00:01:59.959 Now, we hope, of course, that that will be absorbed 47 00:02:00.200 --> 00:02:04.079 by the manufacturers overseas, but again that's hope, and you 48 00:02:04.079 --> 00:02:05.840 know hope in one hand, and you know what and 49 00:02:05.840 --> 00:02:09.240 the other Literally what happens is is this just gets 50 00:02:08.919 --> 00:02:10.240 passed through to. 51 00:02:10.240 --> 00:02:11.400 The end consumer. 52 00:02:11.479 --> 00:02:15.360 That's literally the why we call ourselves consumers. We are 53 00:02:15.360 --> 00:02:17.439 not the ones who get to control anything. We have 54 00:02:17.520 --> 00:02:20.240 to consume whatever is put out at whatever price it 55 00:02:20.319 --> 00:02:23.599 is produced. So yeah, generally speaking, prices will be going up. 56 00:02:23.599 --> 00:02:26.000 We're already seeing it anyway, And you can look at 57 00:02:26.039 --> 00:02:28.240 what happened in twenty sixteen. Not only have we done 58 00:02:28.280 --> 00:02:30.680 this in the past over over the you know, centuries, 59 00:02:31.120 --> 00:02:35.919 we've done it very recently in twenty sixteen. So for example, 60 00:02:36.039 --> 00:02:38.120 the cost of a car went up about three thousand 61 00:02:38.199 --> 00:02:41.080 dollars back then when we increase the cost of steel 62 00:02:41.159 --> 00:02:44.639 and the other components that go in. So it's not 63 00:02:44.800 --> 00:02:47.039 going to be a shock at all. What would be 64 00:02:47.080 --> 00:02:50.919 really surprising to me, honestly, Brian Thomas, is if when 65 00:02:50.960 --> 00:02:53.599 we get the effect that we desire, will we pull 66 00:02:53.680 --> 00:02:57.360 those prices back down or will manufacturers continue to do 67 00:02:57.400 --> 00:02:59.719 what they've done in the past and hope that Americans 68 00:02:59.719 --> 00:03:02.919 don't notice that the tariffs have gone away, and we're 69 00:03:02.960 --> 00:03:05.960 just gonna leave the prices alone and just consider that 70 00:03:06.159 --> 00:03:07.439 as part of our profit market. 71 00:03:07.680 --> 00:03:11.520 Yeah, and it would really be insightful to know what 72 00:03:11.560 --> 00:03:13.719 the profit margin is. You know, like obviously you point 73 00:03:13.759 --> 00:03:15.639 to grocery stores and you think, oh my god, they're 74 00:03:15.639 --> 00:03:19.479 gouging me. But grocery store profit margins, like restaurant profit margins, 75 00:03:19.520 --> 00:03:21.960 are always in the single digits. You know. They they 76 00:03:22.080 --> 00:03:23.800 got a lot of waste, and they've got a lot 77 00:03:23.800 --> 00:03:26.120 of problems, they have a lot of theft, and price 78 00:03:26.159 --> 00:03:28.039 of groceries just go up, but you know, the margins 79 00:03:28.080 --> 00:03:31.719 really don't go up. But insofar as automobiles are concerned, hell, 80 00:03:31.879 --> 00:03:35.639 you can't find what I would call an inexpensive car anymore. 81 00:03:35.680 --> 00:03:37.759 It just seems to me that they're not manufactured. Even 82 00:03:37.759 --> 00:03:40.280 the cheapest car has gone through the roof a lot 83 00:03:40.280 --> 00:03:43.120 of reasons why they have all of these obligations, you know, 84 00:03:43.159 --> 00:03:46.879 for an install safety feature this, and you know, electronic 85 00:03:46.960 --> 00:03:51.719 that or whatever. But ultimately, what is the margin? And 86 00:03:51.800 --> 00:03:55.080 have the margins for these manufacturers changed over the years, 87 00:03:55.120 --> 00:03:57.400 And if so, let us see it in a chart. 88 00:03:58.800 --> 00:03:59.439 Yeah, that's right. 89 00:03:59.560 --> 00:04:01.400 And I think you can look at the stock market 90 00:04:01.439 --> 00:04:03.159 and figure out the ustory of the stock market and 91 00:04:03.199 --> 00:04:06.400 figure out when those margins widened, when when they narrowed. 92 00:04:06.439 --> 00:04:08.719 Because that's literally the definition of the stock market, the 93 00:04:08.800 --> 00:04:12.800 opinion of shareholders of any level as to how profitable 94 00:04:12.800 --> 00:04:17.040 these companies are, and more importantly, how profitable do we anticipate. 95 00:04:16.519 --> 00:04:18.279 They're going to be in the very near future. 96 00:04:18.480 --> 00:04:20.399 If I'm an investor and I feel like things are 97 00:04:20.399 --> 00:04:24.240 moving in the direction of increased profitability, then that's a 98 00:04:24.240 --> 00:04:26.040 good sign for the stock market. But if I'm going 99 00:04:26.079 --> 00:04:28.720 to if I'm concerned that those profit margins are going 100 00:04:28.759 --> 00:04:31.000 to be narrowed, that doesn't mean we're going over the cliff. 101 00:04:31.040 --> 00:04:32.319 It just means it's going to be harder. 102 00:04:32.759 --> 00:04:35.199 And the industries that will survive better are the ones 103 00:04:35.240 --> 00:04:38.519 with arguably with wider profit margins. But at the same time, 104 00:04:38.560 --> 00:04:40.360 those are the ones who may have to sacrifice the 105 00:04:40.399 --> 00:04:43.199 most of that profit margin versus the grocery stores, as 106 00:04:43.240 --> 00:04:45.160 you mentioned, which are already razorsin to begin with. 107 00:04:45.399 --> 00:04:47.079 Well, you know, and the other component. I just have 108 00:04:47.120 --> 00:04:49.519 to raise this because every time I read another article 109 00:04:49.560 --> 00:04:53.600 about how much any particular automobile manufacturer is losing per 110 00:04:53.720 --> 00:04:56.879 vehicle that they produce that are evs and how much 111 00:04:56.879 --> 00:04:59.480 money they're actually making on the say the internal combustion 112 00:04:59.560 --> 00:05:02.959 engine trucks, for example, I guess the salvation of Ford 113 00:05:03.040 --> 00:05:06.519 because Ford trucks move like crazy and their evs and 114 00:05:06.680 --> 00:05:10.000 lose millions and millions of dollars annually, so the price 115 00:05:10.040 --> 00:05:12.439 of the truck goes up to cover the losses for 116 00:05:12.480 --> 00:05:14.839 the evs. Now, Trump may end up saving the autobile 117 00:05:14.879 --> 00:05:17.360 industry by get rid of these ridiculous cafe standards and 118 00:05:17.360 --> 00:05:21.360 eliminating this obligation to become carbon neutral, giving people a 119 00:05:21.439 --> 00:05:24.680 choice and maybe ultimately bringing down the costs ices if 120 00:05:24.680 --> 00:05:26.360 they don't have to manufacture evs. 121 00:05:27.720 --> 00:05:30.639 Yeah, and I think that that's part of the political argument. 122 00:05:30.680 --> 00:05:31.439 You've got. 123 00:05:33.519 --> 00:05:35.319 Those kinds of things should be put in place. And 124 00:05:35.720 --> 00:05:37.920 remember that the other weird thing about this that he 125 00:05:37.959 --> 00:05:41.079 has been particularly quiet on is the second in command, 126 00:05:41.199 --> 00:05:45.639 Elon Musk, some say first in command, is obviously directly 127 00:05:45.680 --> 00:05:48.240 connected to this, and he hasn't said a whole lot 128 00:05:48.279 --> 00:05:51.560 at all about the political rhetoric that goes directly after 129 00:05:51.600 --> 00:05:53.959 one of his companies. And I think that's very telling 130 00:05:54.000 --> 00:05:55.519 in terms of what are we really after here? 131 00:05:56.560 --> 00:06:00.319 Well, and it was observed, I know Rachel I to 132 00:06:00.639 --> 00:06:03.759 argue the other day on her program that somehow Musk 133 00:06:03.800 --> 00:06:07.279 has gotten a four hundred million dollar armored Tesla vehicle 134 00:06:08.000 --> 00:06:11.360 State Department contract that actually went in place during the 135 00:06:11.360 --> 00:06:13.800 Biden administration, so it didn't have anything to do with Trump, 136 00:06:14.319 --> 00:06:17.639 but it didn't go through period. End of story there, 137 00:06:17.639 --> 00:06:21.319 And there are no current plans to issue a request 138 00:06:21.399 --> 00:06:24.639 to Tesla to make these vehicles or any other manufacturer 139 00:06:24.639 --> 00:06:27.560 for that to that end, and then I pivot over 140 00:06:27.639 --> 00:06:31.040 to another one. Tesla is a doge loser article from 141 00:06:31.079 --> 00:06:32.879 the Wall Street Journal which I brought up this morning. 142 00:06:33.399 --> 00:06:36.920 Trump putting a pause on this mandate for electric vehicle 143 00:06:37.040 --> 00:06:39.519 charging stations. That's not going to work to Tesla's benefit 144 00:06:39.560 --> 00:06:41.240 at all, and it certainly would in your to its 145 00:06:41.240 --> 00:06:45.839 benefit if that mandate went through. So anyhow, everybody's beaten 146 00:06:45.920 --> 00:06:49.680 up on Elon Musk for trying to ferre it out fraud, waste, 147 00:06:49.680 --> 00:06:51.600 and abuse. He's doing the job for free, and he 148 00:06:51.680 --> 00:06:54.519 has obviously no vested interest in it other than helping 149 00:06:54.680 --> 00:06:58.519 us out. But speaking of tariffs making prices go up, 150 00:06:58.680 --> 00:07:03.120 it looks as though it result in Nissan moving manufacturing 151 00:07:03.120 --> 00:07:05.560 from Mexico to maybe the United States. 152 00:07:06.399 --> 00:07:08.759 Now maybe, But I don't know reading through this article 153 00:07:09.120 --> 00:07:11.560 that this is another case of re read the article, 154 00:07:11.600 --> 00:07:14.959 not the head of Top auto maker. Yeah, Top Automaker 155 00:07:14.959 --> 00:07:18.000 could move some production out of Mexico a mid Trump tariff. 156 00:07:17.720 --> 00:07:20.399 Talks, according to the CEO. But to read to me, 157 00:07:20.639 --> 00:07:21.279 yeah exactly. 158 00:07:21.399 --> 00:07:23.399 That reads to me if you read that too quickly, 159 00:07:23.439 --> 00:07:25.079 you go, hey, cool, they're going to pull those jobs 160 00:07:25.120 --> 00:07:26.199 back across the border. 161 00:07:26.360 --> 00:07:27.560 But in reality, some other. 162 00:07:27.439 --> 00:07:31.800 Sources are indicating that they they they may just reduce production. 163 00:07:31.959 --> 00:07:34.439 So in other words, Nissan is simply making possibly making 164 00:07:34.439 --> 00:07:37.360 a business decision that this isn't the best time for us. 165 00:07:37.920 --> 00:07:39.879 Things are not going as well as they could be. 166 00:07:40.279 --> 00:07:41.600 We're not going to shut things down, but at the 167 00:07:41.680 --> 00:07:43.600 same time, we're just not going to produce as much. 168 00:07:43.639 --> 00:07:45.879 We're gonna kind of wait it out. Nobody has said 169 00:07:45.879 --> 00:07:48.120 that they're building that Nissan is building a new factory 170 00:07:48.160 --> 00:07:50.759 in you know, some farmtown in the middle of nowhere. 171 00:07:50.920 --> 00:07:52.839 That's not on the docket at all. All they've said 172 00:07:52.879 --> 00:07:55.199 is that there's going to be fewer jobs in Mexico. 173 00:07:55.519 --> 00:07:57.519 So if your goal is to poke Mexico in the 174 00:07:57.600 --> 00:08:00.720 eye over the immigration issues, then may maybe this helps. 175 00:08:00.720 --> 00:08:02.360 But on the other hand, this is not at this 176 00:08:02.439 --> 00:08:04.319 point a job creator in the US. 177 00:08:04.879 --> 00:08:06.399 Well, and I had I listen. 178 00:08:06.439 --> 00:08:08.319 I know where the source was from because I read 179 00:08:08.399 --> 00:08:10.879 the same thing you had read, which is silent on 180 00:08:11.000 --> 00:08:13.920 the where the plant might move the jobs to issue. 181 00:08:14.519 --> 00:08:16.800 Still some speculation swirling about it. One of my listeners 182 00:08:16.839 --> 00:08:19.199 called this morning and said that it was moving them 183 00:08:19.240 --> 00:08:21.680 to Flint, Michigan. Now I don't know where that source 184 00:08:21.759 --> 00:08:24.560 came from, but I suppose it's a possibility. 185 00:08:24.600 --> 00:08:28.279 Brian, Yeah, anything is possible at this point. But you 186 00:08:28.319 --> 00:08:30.399 would think if that was the goal, if the goal 187 00:08:30.519 --> 00:08:34.039 was to orchestrate, you know, these tariffs to drive that 188 00:08:34.159 --> 00:08:36.720 exact activity, then that would have been tied to the 189 00:08:36.799 --> 00:08:39.360 initial announcement. Now, of course, we can't force Nissan to 190 00:08:39.360 --> 00:08:41.559 do or any company to do anything. All we can 191 00:08:41.600 --> 00:08:44.879 do is make them uncomfortable in directions that so that 192 00:08:44.879 --> 00:08:46.200 they'll start behaving. 193 00:08:45.840 --> 00:08:46.840 The way we would like them to. 194 00:08:47.200 --> 00:08:49.840 But we can't force the absolute outcome. This is where 195 00:08:49.840 --> 00:08:51.879 tariffs can kind of blow up on people. And if 196 00:08:51.879 --> 00:08:54.639 you go back in the you know, throughout history, and 197 00:08:54.679 --> 00:08:57.039 this is this is a flashback from Ferris Bueller. If 198 00:08:57.080 --> 00:08:59.960 you remember ben Stein talking about the Holy Smoot tariffs. 199 00:09:00.080 --> 00:09:02.759 Oh yeah, well he was talking about terrfact. 200 00:09:03.679 --> 00:09:05.360 Did they work? No, they did not. 201 00:09:05.679 --> 00:09:08.519 And the United States saying further into the Great Depression, 202 00:09:08.639 --> 00:09:11.519 so they don't always work well. 203 00:09:11.519 --> 00:09:14.159 It's going to be an interesting economic experiment we're all 204 00:09:14.159 --> 00:09:17.279 going to be living through. Keep your popcorn out. It 205 00:09:17.320 --> 00:09:19.960 may hurt, it may help. We have no idea at 206 00:09:19.960 --> 00:09:23.480 this point but to speculate, including where Nissan might or 207 00:09:23.559 --> 00:09:27.480 might not move its manufacturing facilities from Mexico. Brian Javes, 208 00:09:27.519 --> 00:09:29.919 let's pause for a briefly a little bit early in 209 00:09:29.919 --> 00:09:32.480 this segment because we've got two more topics to go over. 210 00:09:32.840 --> 00:09:37.159 More homes are being pulled from the market, which is 211 00:09:37.200 --> 00:09:39.320 an interesting development in the real estate area. And then 212 00:09:39.320 --> 00:09:41.759 Americans are now finding it harder to pay off debt. 213 00:09:41.919 --> 00:09:44.360 So those two topics coming up. More with Money Monday's 214 00:09:44.360 --> 00:09:47.879 Brian James. Stick around. I'll be right back fifty five 215 00:09:49.159 --> 00:09:52.559 the talk station for more information about contests. Eight seventeen. 216 00:09:52.559 --> 00:09:54.960 Here fifty five KRCD Talk Station. A very happy Monday 217 00:09:55.000 --> 00:09:56.960 to you, Doing Money Monday with Brian James from all 218 00:09:56.960 --> 00:10:00.639 Worth Financial. This is a curious development, Brian, I thought 219 00:10:00.639 --> 00:10:02.759 the real estate market was on fire and your house 220 00:10:02.840 --> 00:10:06.360 was getting buyers lined around the corner, bidding wars going 221 00:10:06.360 --> 00:10:11.240 on all over the place, and I see that this 222 00:10:11.360 --> 00:10:14.200 article says, no, that's not the case anymore. What's going on? 223 00:10:15.159 --> 00:10:17.639 Yeah, So the Walsters Journal is reporting that seventy three 224 00:10:17.679 --> 00:10:20.519 thousand homes were pulled from sale in December of twenty 225 00:10:20.519 --> 00:10:24.279 twenty four, meaning that some people said seventy three thousand 226 00:10:24.279 --> 00:10:25.440 people said, you know, what, the heck with it? 227 00:10:25.480 --> 00:10:26.240 I don't want to deal with it. 228 00:10:26.279 --> 00:10:28.240 We're just either going to stay here or we will 229 00:10:28.240 --> 00:10:30.919 come back and try again. That's a sixty four percent 230 00:10:31.000 --> 00:10:34.200 increase compared to December of twenty three, when there were 231 00:10:34.200 --> 00:10:38.559 only forty some thousand homes that were pulled. So basically 232 00:10:38.720 --> 00:10:41.759 this is this could be the sign of the beginning 233 00:10:41.759 --> 00:10:46.679 of a pullback in the housing market. It does indicate 234 00:10:46.720 --> 00:10:48.919 a lack of buyers, right, if you're not housed in 235 00:10:48.960 --> 00:10:50.720 your home, that means the buyers aren't there. But usually 236 00:10:50.759 --> 00:10:53.039 what it really means there're always buyers there. It's not 237 00:10:53.080 --> 00:10:54.480 about the buyers, it's about the price. 238 00:10:54.840 --> 00:10:55.000 Huh. 239 00:10:55.320 --> 00:10:58.559 Buyer's price range has decreased from where it has been 240 00:10:58.600 --> 00:11:01.159 in the past. That could be the sign of a 241 00:11:01.200 --> 00:11:04.039 pullback that we know is inevitably gonna happen. It has 242 00:11:04.080 --> 00:11:06.240 been anticipated for a long time it just hasn't happened yet. 243 00:11:06.240 --> 00:11:07.679 This could be the first shot across the bow. 244 00:11:07.919 --> 00:11:10.080 Well, that would be actually a good development, more of 245 00:11:10.159 --> 00:11:15.840 a sort of a shaking out or a settling of 246 00:11:15.840 --> 00:11:18.279 these ridiculous prices. I know that the demand was so 247 00:11:18.360 --> 00:11:20.600 high that you could get crazy amounts for your home, 248 00:11:20.639 --> 00:11:23.480 but the whole idea that maybe your expectations in terms 249 00:11:23.519 --> 00:11:26.039 of your home value a little bit too high. So 250 00:11:26.080 --> 00:11:28.200 if you really want to sell your home, you're gonna 251 00:11:28.200 --> 00:11:30.279 have to adjust the price downward. That would be I 252 00:11:30.360 --> 00:11:31.519 think a good development. 253 00:11:32.559 --> 00:11:35.000 It would be just like anything else, though, it's gonna 254 00:11:35.039 --> 00:11:37.440 be a catalyst that will come along with other stuff, 255 00:11:37.480 --> 00:11:40.399 both good and bad. So you know, some people bought 256 00:11:40.440 --> 00:11:43.240 houses in November December something like that and. 257 00:11:43.080 --> 00:11:45.799 Paid whatever market that a market rate was at that time. 258 00:11:45.879 --> 00:11:48.000 Those folks, should they have to move, they're gonna have 259 00:11:48.000 --> 00:11:49.759 a problem because prices will have dropped. 260 00:11:49.799 --> 00:11:51.600 They could be underwater on their mortgages. 261 00:11:51.799 --> 00:11:54.440 However, I would not start running around worrying that this 262 00:11:54.559 --> 00:11:56.919 is going to be something like two thousand and eight 263 00:11:56.960 --> 00:11:59.559 all over again. Two thousand and eight was far more 264 00:11:59.559 --> 00:12:01.919 about the infrastructure the mortgage business. 265 00:12:01.960 --> 00:12:04.039 The mortgage lending market. 266 00:12:03.759 --> 00:12:07.279 Collapsed which prevented basically the entire market from buying houses, 267 00:12:07.279 --> 00:12:08.960 and the way we had done in the past, this 268 00:12:09.240 --> 00:12:11.399 as we're sitting here right now, would appear to be 269 00:12:11.440 --> 00:12:14.600 nothing more than a price adjustment. Basically, the way to 270 00:12:14.639 --> 00:12:17.200 think about it is that there are fewer buyers at 271 00:12:17.240 --> 00:12:20.000 the price range where we are currently asking. However, those 272 00:12:20.039 --> 00:12:22.240 buyers are still out there because we know the economy. 273 00:12:22.440 --> 00:12:25.080 The economy's in pretty solid shape, regardless of your politics. 274 00:12:25.159 --> 00:12:27.240 E comomy has been pretty solid shape for a few years, 275 00:12:28.039 --> 00:12:30.519 and there's not really any reason to think that's going 276 00:12:30.600 --> 00:12:32.519 to fall off the cliff, although there's plenty out there 277 00:12:32.559 --> 00:12:34.720 that have been saying looking for that next leg down 278 00:12:34.759 --> 00:12:37.279 since twenty two. But at the same time, so what 279 00:12:37.279 --> 00:12:38.879 that leads me to believe is that we will find 280 00:12:38.919 --> 00:12:41.000 the buyers. The buyers are just at a range lower 281 00:12:41.039 --> 00:12:43.840 than the sellers right now that will equal out at 282 00:12:43.840 --> 00:12:45.639 some point, because that's how markets work. 283 00:12:46.080 --> 00:12:49.000 Well, when you pull your house from the market, doesn't 284 00:12:49.039 --> 00:12:52.000 that suggest that you really didn't need to sell it. 285 00:12:52.759 --> 00:12:56.440 I mean, you just maybe wanted to tap into this 286 00:12:56.559 --> 00:12:59.399 over zealous price house market and get that equity out 287 00:12:59.440 --> 00:13:01.240 of there. Y you why you can get it at 288 00:13:01.240 --> 00:13:04.039 this premium rate. But if you pull it off the market, 289 00:13:04.200 --> 00:13:05.360 I guess you're staying put. 290 00:13:06.799 --> 00:13:07.440 And that could be. 291 00:13:07.480 --> 00:13:09.159 That could be some people who just sat down at 292 00:13:09.159 --> 00:13:10.720 the dinner table and say, you know what, we've always 293 00:13:10.759 --> 00:13:11.600 talked about moving. 294 00:13:11.600 --> 00:13:13.879 Maybe this is a little sooner than we anticipate. 295 00:13:13.960 --> 00:13:15.639 Yeah, so let's go ahead and throw it out there 296 00:13:15.679 --> 00:13:17.279 on the market at a crazy price and just see 297 00:13:17.279 --> 00:13:19.120 if we can get it. Some of them got it 298 00:13:19.159 --> 00:13:21.679 over the past couple of years. Others maybe asked just 299 00:13:21.759 --> 00:13:24.120 a little bit too high and the interest waned. And 300 00:13:24.159 --> 00:13:26.600 of course the if you talk to any realtor, they'll 301 00:13:26.600 --> 00:13:29.200 tell you that a house that sits on the market 302 00:13:29.279 --> 00:13:31.000 for a very long time starts to get a little 303 00:13:31.039 --> 00:13:33.159 bit of a of a stigma to it. Yeah, nobody 304 00:13:33.200 --> 00:13:35.240 wants to touch this. It's been listed for six months. 305 00:13:35.279 --> 00:13:36.879 I don't want to I don't want to even look 306 00:13:36.919 --> 00:13:37.120 at it. 307 00:13:37.159 --> 00:13:37.799 Let it, let it go. 308 00:13:38.080 --> 00:13:39.840 And so you do have to kind of pull it down, 309 00:13:39.919 --> 00:13:42.720 let let some time pass, and then and then repost it. 310 00:13:43.120 --> 00:13:45.159 Well, it seems to me that rather than having an 311 00:13:45.159 --> 00:13:47.799 air of negativity about it, that represents an option or 312 00:13:47.840 --> 00:13:51.279 an opportunity for a buyer to go in and maybe 313 00:13:51.320 --> 00:13:53.080 lowball it a little bit and get a better deal 314 00:13:53.120 --> 00:13:55.840 than they're asking. It never hurts to ask. Brian. 315 00:13:56.720 --> 00:13:58.960 Absolutely, Yeah, So I think this might just be an 316 00:13:59.279 --> 00:14:01.840 more of an optimst. Then, yes, it's a pullback, but 317 00:14:01.879 --> 00:14:05.159 it's a pullback from an extreme. I think our society 318 00:14:05.200 --> 00:14:07.639 and our economy does just fine as long as we 319 00:14:07.720 --> 00:14:10.679 left the pendulum swing back and forth without too much panic. 320 00:14:10.879 --> 00:14:12.919 They can only swing so far before we have to 321 00:14:12.960 --> 00:14:14.360 anticipate an opposite reaction. 322 00:14:14.600 --> 00:14:17.039 Well, I can only hope this represents an opportunity for 323 00:14:17.080 --> 00:14:19.200 some of the younger buyers who have been priced out 324 00:14:19.240 --> 00:14:22.600 of the market. I just did the home costs. I've 325 00:14:22.639 --> 00:14:24.799 seen closings on houses and you'd read be like you 326 00:14:24.919 --> 00:14:29.320 got six hundred grand for that thing. It's like how anyway? 327 00:14:29.440 --> 00:14:31.000 Yeah, I couldn't agree more. 328 00:14:31.039 --> 00:14:33.480 I talk to my client's children, adult kids all the time, 329 00:14:34.080 --> 00:14:36.039 and it is amazing to me. I put myself back 330 00:14:36.080 --> 00:14:38.039 in their shoes, and I wrote, when I'm their age, 331 00:14:38.159 --> 00:14:39.879 mid twenties or so, this was the next thing. 332 00:14:40.080 --> 00:14:40.279 I know. 333 00:14:40.320 --> 00:14:40.879 I'm going to be here. 334 00:14:40.919 --> 00:14:42.840 I've got my career here in Cincinnati. It's time to 335 00:14:42.840 --> 00:14:46.039 put down roots. That's really not a consideration. They're still renting, 336 00:14:46.039 --> 00:14:48.039 and they anticipate they're going to rent for another seven. 337 00:14:47.919 --> 00:14:49.720 Or eight years, even though they know they're not leaving town. 338 00:14:49.759 --> 00:14:50.919 It's a scary time for that. 339 00:14:51.039 --> 00:14:53.519 All right, And double down on that by pivoting over 340 00:14:53.559 --> 00:14:55.440 to the other topic we're talking about this morning before 341 00:14:55.480 --> 00:14:57.559 we part company. Americans finding it harder and harder to 342 00:14:57.600 --> 00:14:58.399 pay off their debt. 343 00:15:00.120 --> 00:15:02.399 Absolutely, so go figure we owe money. 344 00:15:02.399 --> 00:15:04.519 So total household debt in the United States rose by 345 00:15:04.519 --> 00:15:06.240 about a half a percent in the fourth quarter of 346 00:15:06.360 --> 00:15:08.960 twenty twenty four. These numbers sound tiny, but they're really not. 347 00:15:09.399 --> 00:15:12.279 That gets us to eighteen trillion dollars. You know, we 348 00:15:12.840 --> 00:15:15.919 say the word trillion a lot more often nowadays. It 349 00:15:16.000 --> 00:15:18.080 used to be the word billion was an attention yetter 350 00:15:18.360 --> 00:15:19.720 billion has become the new million. 351 00:15:19.759 --> 00:15:21.600 Now we talk about trillions when we're worried about it. 352 00:15:21.840 --> 00:15:24.919 So this has covered all loan categories, mortgages, auto loans, 353 00:15:24.919 --> 00:15:28.360 credit cards, homewke, we lands of credits. Everything saw increases. 354 00:15:28.639 --> 00:15:32.159 Credit card balances themselves are at one point two trillion dollars. 355 00:15:32.440 --> 00:15:35.600 That's a seven percent increase over the previous year. That's 356 00:15:35.679 --> 00:15:38.399 how much less people are able to pay their bills 357 00:15:38.440 --> 00:15:41.279 with their normal cash flow. We're rotating these balances on 358 00:15:41.320 --> 00:15:42.559 a much more frequent rate. 359 00:15:42.480 --> 00:15:43.080 Than we used to. 360 00:15:45.080 --> 00:15:48.679 So the solution, Brian, your financial planning advice to deal 361 00:15:48.720 --> 00:15:50.679 with this type of thing or prevent this type of 362 00:15:50.679 --> 00:15:53.759 thing from happening. These credit card interest rates are just 363 00:15:54.000 --> 00:15:55.440 sick crazy. 364 00:15:55.879 --> 00:15:56.639 They are. They are. 365 00:15:56.679 --> 00:15:58.360 So there was a bill, there has been and this 366 00:15:58.399 --> 00:16:00.399 was something that Trump talked about on the campaign trail 367 00:16:00.440 --> 00:16:03.039 and he has still talked about to this day. There's 368 00:16:03.080 --> 00:16:04.919 a bill that has been introduced. It's going to cap 369 00:16:04.919 --> 00:16:07.519 credit card interest rates at ten percent. Now, again, it's 370 00:16:07.639 --> 00:16:09.879 just a bill. So guess who is out there fighting 371 00:16:09.919 --> 00:16:12.799 against it? The banks and the lenders really are. They 372 00:16:12.799 --> 00:16:15.600 love their twenty seven percent credit card rates, So there's 373 00:16:15.639 --> 00:16:18.000 going to be lobbyists. There's going to be pushed back 374 00:16:18.039 --> 00:16:20.480 against all this. What I find interesting though, is that 375 00:16:20.559 --> 00:16:23.159 this is this one came from some strange bedfellows. So 376 00:16:23.200 --> 00:16:26.320 this came from Bernie Sanders and Josh Holly. These are 377 00:16:26.320 --> 00:16:27.879 not guys who go out and have a beer together. 378 00:16:27.960 --> 00:16:30.080 To my knowledge, normally don't see eye to eye on 379 00:16:30.120 --> 00:16:32.159 a whole lot of things. But the bill that they 380 00:16:32.200 --> 00:16:36.080 introduced would cap credit cards at ten percent, and which 381 00:16:36.159 --> 00:16:38.960 matches something that Trump talked about during the campaign trail 382 00:16:38.960 --> 00:16:41.679 as far back as September. So whether we can get 383 00:16:41.679 --> 00:16:44.320 it across the finish line, who knows. But what I 384 00:16:44.360 --> 00:16:46.600 tell my clients if you were in this situation. Matter 385 00:16:46.639 --> 00:16:48.960 of fact, I had this conversation last week. If you're 386 00:16:49.000 --> 00:16:51.240 in this situation, you've got a credit card balance that 387 00:16:51.279 --> 00:16:53.919 you have kind of forgotten about. It's probably charging you 388 00:16:53.960 --> 00:16:56.799 twenty plus percent. That's what their credit card companies want. 389 00:16:57.080 --> 00:16:59.440 A lot of times these come from an initial offer 390 00:16:59.519 --> 00:17:01.960 of zero percent or three percent or something that feels 391 00:17:01.960 --> 00:17:05.279 like nothing. The banks don't make a dime until. 392 00:17:05.039 --> 00:17:05.839 You forget about it. 393 00:17:05.880 --> 00:17:08.559 They're waiting for you to push it into the seventh 394 00:17:08.599 --> 00:17:10.359 month of a six month bonus. 395 00:17:10.759 --> 00:17:12.759 So as soon as that happens, you're gonna start paying 396 00:17:12.799 --> 00:17:15.200 high interest rates. It is okay in that situation. 397 00:17:15.519 --> 00:17:17.920 If you've got good credit scores, go get one of 398 00:17:17.920 --> 00:17:20.440 those zero percent balanced transfer offers. If those are showing 399 00:17:20.480 --> 00:17:22.480 up to your mailbox, take advantage of it. That will 400 00:17:22.480 --> 00:17:24.640 buy you some more time. But don't forget about it again. 401 00:17:25.039 --> 00:17:28.039