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Speaker 1: Well to another episode of the Chicks on the Right

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podcast where we host our friend and sponsor of the show,

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Zach Abraham from Bulwart Capital Management, to talk about things

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that are happening in the financial world. And there's a

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big thing that Trump has brought up in a recent

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rally speech where he said he's thinking about capping credit

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card interest rates, which is kind of blowing our minds

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and which we want to know. Do you think, first

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of all, that that's just bluster or would he could

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he and would he actually do something like this? And

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what impact would that have on like everything?

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Speaker 2: You know, it's an interesting thing because typically I would

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be against something like this, and the reason for it

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is that what it would result in is it would

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result in less available credit, right, so meaning and it's

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just it's a simple way that you know, banks are

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surance companies or credit card companies are going to look

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at managing their own internal risk, right which is if

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you know they can offer these deals if you know

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fifteen percent of people go over the limits, don't pay

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their stuff on time, and they're collecting you know, fifteen

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to twenty percent penalty interest effectively against somebody else. So

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it would cut down on the amount of available credit.

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I also think, though, when you look at usury laws, right,

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there's a precedent in this country. There are there are

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there there happen in the times, there are now and

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I believe in this country, I want to say it's

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twenty nine percent is the ultimate cap on credit cards.

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Speaker 3: Which is a lot.

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Speaker 4: It's insane, that's such.

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Speaker 3: Yeah. So what he's saying ten, right, isn't even wanting

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to cap at ten?

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Speaker 4: Yeah? Yeah, And.

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Speaker 2: So there is precedent there for usury. And here here's

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here's one of the other factors that you want to

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look at. You know, the long term Fed funds rate

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average in this country is like but between six to

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six and a half percent. Okay, So if you decide somewhere, somehow,

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twenty nine percent is the line between you know, fair

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and obscene. It seems to me that when interest rates

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go below the average, so too should the pop level

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of you know, acceptable interest rates on credit cards.

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Speaker 4: And that never happened.

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Speaker 2: The other thing I will say is that I'm a

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huge fan Historically, I'm a I'm a history nerd, but

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I'm a huge fan of Teddy Roosevelt. And I think

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what Teddy Roosevelt really illustrates is that in order to produce,

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in order to preserve a free and competitive market, you

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have to have government intervention. As much as I hate

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saying that, right, free markets completely free markets only remain

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free for a little bit of time, and then that

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it's because it's because monopolies take over, right, and then

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that becomes an unfree market. Right when when one player

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has undue advantage, you know, whether it's earned or not.

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It just competition is what makes free markets work. And

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so I think you everything in this economy continues to

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be way too slanted. It's it's sort of like, I

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don't know if you guys heard about this, but they

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just announced yesterday, Oh, we're going to allow stock market

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quotes to occur in half sent increments. Right now, when

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you make a bid on a stock, it's it's made

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in sense, right, pennies, So I can bid fifty two

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to oh seven for a stock. Well, now they're going

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to allow you to bid fifty two seven point five, right,

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you can make half some bids. Well, here's my point

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is the deck is constantly being stacked in favor of

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the rich. The only law, excuse me, the only group

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of people that will benefit from that change to stock

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quotes are massive hedge funds, massive institutions, and high frequency

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trading programs. That's it, Okay, So once again you are

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passing a law that benefits those guys who are pretty rich,

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who are already powerful, right, gives them another lever and

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another way to make more money, right, and it doesn't

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benefit the little man at all. And the way they sell, oh,

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it'll provide for better market liquid.

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Speaker 4: Absolute nonsense. This is all about.

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Speaker 2: This is all about players that have enough money to

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influence the political system getting their way. And I think

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that's happened in credit markets too, right. The fact that

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the fact that a bank can stick somebody with twenty

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nine percent, that's you, Suriy, It's it's debt imprisonment.

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Speaker 4: I mean it's it's disgusting.

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Speaker 3: It's crazy you never paid off. Okay, But I'm gonna

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play devil's advocate here. So if somebody, because ultimately there's

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going to be somebody that's a conservative that's going to say, okay,

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but if you are okay with this, it's basically price control, right,

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because I mean you're because the government's controlling. If if

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you say we're going to cap at a ten percent.

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That's that's basically Trump saying, well, it's Trump's way of

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instilling price controls, kind of like Kamma is like, well,

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these grocery stores are price gouging, so I'm going to

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control that. So I'm just being devil's that. So then

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what do you say that liberal that's like, well, he's

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doing it, so why can't she do it? You know?

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Speaker 2: Yeah, I've long believed in the need for a double

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tier system. Meaning if you want to operate outside of

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this law, you can do it. But if you're a

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financial institution, you need to wave FDIC insurance. Right, Why

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do you get a pack the protection of FDIC insurance

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and the fact that the Federal Reserve is going to

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bail you out all the time, and then complain about

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the fact that we're price controlling. Yeah, if you're going

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to rely on the federal government's backing and you're going

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to rely on all the accounts that it's going to

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get you, the fact that you're FDIC insured, then you

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need to adhere to these rules. If you don't want

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to adhere to these rules, that's fine, We're not going

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to make you. But you need to wave FDIC insurance

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and you ALTI need to sign a contract saying when

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you blow yourself up in the next financial.

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Speaker 4: Crisis, we ain't bailing you out.

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Speaker 3: Yeah right, it's quick.

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Speaker 2: WHOA, why are we giving you insurance coverage for nothing?

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If you want to have this protection, then do it

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this way. If you don't, it's a free economy. Do

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your thing, but we ain't bailing you out in the

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next financial press Yeah.

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Speaker 3: Okay.

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Speaker 1: And then that so you think that that's what he's proposing.

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Speaker 2: Then well no, but I would like to see it

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go that way. Meaning so quick little history here. In

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nineteen ninety eight we repealed the Glass Steagal Act. Okay,

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So the Glass Stegal Act was put in I believe

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in nineteen thirty three or nineteen forty four or nineteen

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thirty four in response to the Great Depression. And what

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the Glass Stegal Act said was that you could not

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merge a commercial bank, an investment bank, a consumer bank,

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or an insurance company. That you could make one of

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those companies, but they had to be separate. And the

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reason they said that was because you start convoluting risk

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management protocols and you start having when you combine these

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things together, you just create a bigger bomb, right, so

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when it goes off, it takes down more things. Well,

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guess which law they repealed in nineteen ninety eight, Glass.

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Within nine and a half years, you have the biggest

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financial crisis since the Great Depression. I've long said is hey,

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And there's bunch people going, oh, Glass Steagel isn't fair.

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That's why we got rid of it, And I go, no, no, no.

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Speaker 4: Look, first of all, it worked pretty well.

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Speaker 2: We didn't have a financial crisis since the Great Depression

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until they repealed it.

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Speaker 4: Right.

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Speaker 2: Second of all, if you don't want to adhere to

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Glass Stiegel, that's fine, right, Like this is the way

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it should be. In my opinion, they should reinstate Glassteagle

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and say no, you don't have to adhere to it,

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but if you don't adhere to it, we're not covering you.

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You don't get FDIC insurance, and all of your clients

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need to know that. If you're willing to bear the risk,

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that's fine. But what we've developed in this economy in

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this country is privatize profits and socialized losses, and it's wrong,

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it's morally wrong. The rich benefited from all the time

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at the cost of the middle class.

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Speaker 4: Tax payer, and it's nonsense.

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Speaker 3: That makes so much sense. Oh my god, all the

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sense it makes. It makes all the sense. I love it.

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Is why we like talking to you. Yeah, I mean,

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but that's.

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Speaker 2: Why nobody's ever gonna rep it either, you know what

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I mean, just because it makes sense.

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Speaker 3: That's what Trot needs to hire you.

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Speaker 4: You can if you're listening, sir, i'd pick up the phone.

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Speaker 3: I love it. I love it.

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Speaker 4: I'm not gonna be waiting by it either.

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Speaker 3: Fantastic. Well thank you for that, because I was like

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all ready to hear.

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Speaker 1: I thought we were going to have this conversation and

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you were going to be like, this is a terrible idea,

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but you're making it make a huge amount of sense

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with those parameters in place and the stuff that we

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learned from you.

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Speaker 2: Yeah, if you want to adhere to these rules, great,

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here's the benefits from it. If you want to operate outside, fine,

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but you're going to do it without our protection.

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Speaker 4: It just makes sense.

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Speaker 1: Yeah, it really does make sense. So how can people

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We talked earlier this week about an upcoming seminar that

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you have. Do you want to tell people how they

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can get in on that action and where they can

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find you.

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Speaker 4: Yeah.

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Speaker 2: Uh but Workcapitalmanagement dot Com, Know your Risk Radio dot

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com super easy to find. And after what happened last yesterday, guys,

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the need to educate yourself on inflation and the impact

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on your portfolio is even more so because I think

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you just unlocked the next wave of inflation and I

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think this market's about ready to go ballistic to the upside.

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Speaker 4: Oh my god.

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Speaker 3: Yeah, Okay, that's a great note to end this on, Zach. Right,

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I know what we're talking about next week.

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Speaker 4: Yeah, yeah, I know. It's wild what they're doing right now.

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Speaker 3: Yeah, exactly. Well, thank you something. We appreciate you, you.

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Speaker 4: Bet, ladies, thanks for having me. As always.

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Speaker 2: Investment advisory services offered through Trek Financial loc and SEC

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Registered Investment Advisor. The opinions expressed in this programmer for

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general informational purposes only and are not intended to provide

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specific advice or recommendations for any individual or on any

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specific security.

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Speaker 1: Any references to performance of security so it thought to

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be materially accurate and actual performance may different.

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Speaker 3: Investments involved risk and are not guaranteed. Past performance doesn't

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guarantee future results.

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Speaker 4: Tricky for three zero week