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<v Speaker 1>You're listening to bill Handle on demand from KFI AM

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<v Speaker 1>six forty.

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<v Speaker 2>KFI bill Handle. Here it is a Tuesday morning, a

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<v Speaker 2>taco Tuesday.

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<v Speaker 1>April eighth.

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<v Speaker 2>As we continue on with the show, all right, going

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<v Speaker 2>on today, I mean we're in the middle of this

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<v Speaker 2>whole terra for stock market.

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<v Speaker 1>If I'm not mistaken, Amy is now up thirteen hundred

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<v Speaker 1>points as we speak.

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<v Speaker 2>Yes, thirteen hundred seventy one points, fourteen hundred points. Talk

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<v Speaker 2>about volatility and volatility here is because of one person.

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<v Speaker 2>International markets are roiling is the word that's used. And

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<v Speaker 2>I think it's an appropriate word because of what Donald

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<v Speaker 2>Trump is doing or not doing. And let's start talking

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<v Speaker 2>about the philosophy of tariffs. And it's a question of protectionism.

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<v Speaker 2>And when President Trump says it's an uneven playing field,

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<v Speaker 2>he's absolutely right. We are terriff like crazy. For example,

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<v Speaker 2>you go to China, you won't see an American car.

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<v Speaker 2>They just don't have American cars.

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<v Speaker 1>They let them in.

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<v Speaker 2>You go to Japan, you won't see American cars. How

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<v Speaker 2>many Japanese cars you think we have here? It is

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<v Speaker 2>an unfair trading balance. We don't tear iff Japanese cars

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<v Speaker 2>the way they tear iff American cars to the point

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<v Speaker 2>where they can't even.

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<v Speaker 1>Sell them over there.

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<v Speaker 2>They're too expensive. So Trump is saying, it's on even.

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<v Speaker 2>Let's make it an even playing field. You charge thirteen

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<v Speaker 2>percent tariff on insert product. Product here will charge thirteen percent. Also,

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<v Speaker 2>they're called reciprocal terriffs. Now it isn't that easy. Obviously

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<v Speaker 2>there's a lot more to it, but the bottom line

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<v Speaker 2>is we want it to be even. Stephen, the problem

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<v Speaker 2>is is doing that overnight, doing that instantly, And that's

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<v Speaker 2>exactly what President Trump has done, and that just turns

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<v Speaker 2>the whole world upside down because the United States is

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<v Speaker 2>the juggernaut, the economic juggernaut of the world, There's no

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<v Speaker 2>question about it. And when the US moves in one

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<v Speaker 2>direction or reacts, then the entire economic world turns around,

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<v Speaker 2>not only listens, but is deeply affected. So tariffs are here,

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<v Speaker 2>and the President said tariffs on everything that's coming in

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<v Speaker 2>this country, and he particularly nailed China. Why is that

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<v Speaker 2>because China's come back and say, okay, you tariff US

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<v Speaker 2>thirty four percent more, which you just did. We're going

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<v Speaker 2>to add a thirty four percent tariff on top of

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<v Speaker 2>the tariffs and now Trump is saying, we're gonna add

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<v Speaker 2>another fifty percent. It's my dad is bigger than your dad.

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<v Speaker 2>My dad can beat up your dad. No, no, my

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<v Speaker 2>dad can beat up your dad. That's what's it's escalating

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<v Speaker 2>like crazy. Now. The Trump administration says there are fifty

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<v Speaker 2>countries that are willing to sit down and negotiate, saying, whoa, okay,

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<v Speaker 2>let's sit down and talk about these tariff deals. The

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<v Speaker 2>markets hate uncertainty, hate it. Trump lives on uncertainty. That's

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<v Speaker 2>part of his ammunition bank. He uses uncertainty as part

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<v Speaker 2>of the way he governs, which is very unusual. It

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<v Speaker 2>is obviously very disruptive. We'll see if he's right or

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<v Speaker 2>not in the end two three years from now, if

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<v Speaker 2>factories are in the United States, if the economy has

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<v Speaker 2>moved over to us, if we're manufacturing, if we have

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<v Speaker 2>the factories and the jobs, he's absolutely right. In the meantime,

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<v Speaker 2>how much is it going to cost. There's one country

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<v Speaker 2>in the world that's standing firm. China is saying we're

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<v Speaker 2>not taking this crap. Now.

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<v Speaker 1>Is China our biggest trading partner? It is not.

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<v Speaker 2>It's our third biggest trading partner. First we have Canada

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<v Speaker 2>in Mexico than China. But China is such an enormous

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<v Speaker 2>country in terms of the economy and in terms of

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<v Speaker 2>how much we buy and sell, particularly buy, tariffs are

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<v Speaker 2>a big deal. So while all the other countries we

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<v Speaker 2>think we're being told are willing to sit down and

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<v Speaker 2>say to the president, Okay, we're willing to talk about this, let's.

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<v Speaker 1>Negotiate this deal.

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<v Speaker 2>Yeah, we'll lower our tariffs, We'll open up our markets to.

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<v Speaker 1>US goods, China is saying no.

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<v Speaker 2>As a matter of fact, any attempt at negotiations with

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<v Speaker 2>China regarding tariffs right now, we're being told is effectively

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<v Speaker 2>moooo guy dead. It's simply not going to happen anytime soon.

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<v Speaker 2>And so now President g is playing chicken with President Trump,

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<v Speaker 2>and who's gonna win.

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<v Speaker 1>I think Trump.

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<v Speaker 2>Has to blink because G is president for life. The

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<v Speaker 2>economy is controlled in China by the state. The major

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<v Speaker 2>banks are owned by the state, and they can last.

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<v Speaker 2>Now it's gonna hurt, there's no questions. Tariff's hurt. But

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<v Speaker 2>G is saying, we'll take the hurt. We can stand

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<v Speaker 2>it far longer. And and.

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<v Speaker 1>How do I put this far longer?

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<v Speaker 2>And even if it affects us far deeply deeper, we

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<v Speaker 2>can take it.

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<v Speaker 1>The United States can't. We'll see.

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<v Speaker 2>Also, the president is a lane duck president. She is

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<v Speaker 2>in there three and a half years from now. She

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<v Speaker 2>is going to be president three and a half years

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<v Speaker 2>from now. Trump theoretically is going to be out of office.

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<v Speaker 2>We'll see what happens. So it is complicated stuff. Which

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<v Speaker 2>way is it going to go? I'll tell you one thing.

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<v Speaker 1>Your iPhones are going to go through the roof.

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<v Speaker 2>Batteries are going to be costing a whole lot more,

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<v Speaker 2>particularly in evs.

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<v Speaker 1>In cars you buy a Tesla. Eh.

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<v Speaker 2>This is one of the reasons why Elon Musk is

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<v Speaker 2>saying absolutely no to the tariffs.

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<v Speaker 1>So let me tell you who is.

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<v Speaker 2>Caught up with this tariff business big time, and that's

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<v Speaker 2>Elon Musk and Donald Trump. This is a fascinating sidebar story.

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<v Speaker 2>Does that I have a lot to do with the economy. No,

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<v Speaker 2>not really, but the interest is incredible. First of all,

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<v Speaker 2>let's start with Elon Musk and how long he's going

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<v Speaker 2>to last. One of the things that Donald Trump loves

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<v Speaker 2>is attention. We know that he gets it by being

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<v Speaker 2>the president. He doesn't like to share attention with anybody

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<v Speaker 2>read Elon Musk. So just on the attention aspect of

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<v Speaker 2>their relationship, I think Musk's days are numbered because I

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<v Speaker 2>don't think the President's going to take days in which

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<v Speaker 2>Musk actually gets a lot more attention than he does.

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<v Speaker 2>Then the issue of tariffs. The President obviously believes in tariffs,

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<v Speaker 2>has for years. This is not new for him. Elon

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<v Speaker 2>Musk does not like tariffs at all. Why is that

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<v Speaker 2>because even though Tesla's are going to be tariffed less

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<v Speaker 2>than other cars, he buys a lot of stuff from China.

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<v Speaker 2>He buys parts from Mexico to make Teslas from Canada.

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<v Speaker 2>The battery technology, huge amount the sodium lithium stuff that

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<v Speaker 2>comes in the batteries is provided by China. They provide

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<v Speaker 2>so many of the rare earths that go into batteries.

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<v Speaker 2>They control the world market for as far as that's concerned.

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<v Speaker 2>And all of that is being tariffed. And look what

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<v Speaker 2>the President has done in the last few days. I mean,

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<v Speaker 2>starting Saturday, tariffs to China went up thirty four percent. Well,

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<v Speaker 2>China comes back and says, okay, tariffs that we're gonna

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<v Speaker 2>nail on your products. You go up thirty four percent.

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<v Speaker 2>Then Trump goes, okay, let's add another fifty percent.

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<v Speaker 1>They're playing poker.

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<v Speaker 2>I call an I raise, No, no, I call an

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<v Speaker 2>I raise, And it's just going up and up, and

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<v Speaker 2>we're looking at an economy that is going to be

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<v Speaker 2>severely affected.

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<v Speaker 1>What Trump is playing is the long game here.

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<v Speaker 2>Interestingly enough, a guy who lives for the short game,

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<v Speaker 2>who reacts instantly, and the argument is he reacts without

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<v Speaker 2>thinking a whole lot, is playing the long game here.

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<v Speaker 2>When he said day one, the economy it's going to

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<v Speaker 2>be great, the prices that are going to drop, Ukrainian,

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<v Speaker 2>the Russia Ukraine War is going to be over. The

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<v Speaker 2>Israel klass War is going to be over. Day one

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<v Speaker 2>not so much so. Now there's a little bit of

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<v Speaker 2>reality that has come into the Trump administration and the

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<v Speaker 2>world of economics, and he has said, yeah, it's going

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<v Speaker 2>to hurt YEP. Tariffs are going to affect us deeply.

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<v Speaker 2>And there are certain industries that are well in many

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<v Speaker 2>cases put out of business long gain.

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<v Speaker 1>What's the long game for him?

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<v Speaker 2>Factories being built in the United States, because if you

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<v Speaker 2>tariff foreign governments and foreign manufacturers, it's more expensive for

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<v Speaker 2>Americans to buy those products and services, which means you

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<v Speaker 2>have to buy here. Now, the argument's going to be, well,

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<v Speaker 2>it's going to be more expensive no matter what, and

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<v Speaker 2>it is tariffs make things more expensive, and Trump is arguing,

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<v Speaker 2>let's have an even playing field.

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<v Speaker 1>It is unfair. He's absolutely right.

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<v Speaker 2>So the long game, it's going to be better for

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<v Speaker 2>the economy. Maybe short term.

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<v Speaker 1>Everybody agrees it's going to hurt.

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<v Speaker 2>Musk is saying, whoa wait a minute, we really don't.

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<v Speaker 1>Like these tariffs. But he's never been in favor of tariffs.

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<v Speaker 2>Actually because why because he buys products from overseas.

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<v Speaker 1>The last thing he wants is tariffs.

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<v Speaker 2>Now, full cars are going to be prohibitive, There's no

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<v Speaker 2>question about it. I have a BMW. If I were

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<v Speaker 2>to buy it next year, if I were to buy

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<v Speaker 2>it in six weeks, it would cost tens of thousands

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<v Speaker 2>of dollars, or at least thousands of dollars.

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<v Speaker 1>More than what I paid for it. Not that it

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<v Speaker 1>wasn't expensive enough anyway.

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<v Speaker 2>Trump, since he manufactures in the United States, well it's not.

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<v Speaker 1>Going to be much. Tariff is not going to be

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<v Speaker 1>as hard.

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<v Speaker 2>But keep in mind that he outsources a lot of

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<v Speaker 2>stuff that comes in. Car companies don't manuf acture their

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<v Speaker 2>own screws and their own batteries and their own windows

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<v Speaker 2>and their own door latches, and they have to buy

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<v Speaker 2>them someplace.

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<v Speaker 1>And if they're buying them for overseas.

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<v Speaker 2>Because it's a world economy. It is a global economy,

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<v Speaker 2>there's no way around it. We it's far different than

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<v Speaker 2>it was, for example, after World War Two, where the

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<v Speaker 2>United States control the entire economy of the planet.

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<v Speaker 1>So is this going to break the Musk Trump relationship.

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<v Speaker 1>I think it is.

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<v Speaker 2>And this is one of those things where even business

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<v Speaker 2>owners are turning on this tariff business saying, whoa, this

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<v Speaker 2>is way too fast. It's going to affect us way

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<v Speaker 2>too deeply. You know what this reminds me of is

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<v Speaker 2>sometimes you have a president or a some kind of

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<v Speaker 2>a high official or CEO just making the wrong decision

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<v Speaker 2>and not really understanding the consequences of what's going on

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<v Speaker 2>and maybe choosing the wrong path. And here's the analogy

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<v Speaker 2>I'm going to make is when President Eisenhower selected Earl

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<v Speaker 2>Warren as the Chief Justice of the United States, Right,

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<v Speaker 2>here's the Republican Eisenhower, moderate Republican who picks up a Republican,

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<v Speaker 2>former governor, former Attorney General of California, former judge, and

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<v Speaker 2>makes him.

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<v Speaker 1>The Chief Justice the United States.

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<v Speaker 2>Earl Warren turns into the most liberal justice, well not

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<v Speaker 2>the most liberal justice, but creates the most liberal court

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<v Speaker 2>that was ever seen in the United States, the Warren Court,

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<v Speaker 2>and Eisenhower was just taken for a loop. He said,

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<v Speaker 2>the worst decision I ever made as president was choosing

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<v Speaker 2>Earl Warren, nominating Earl Warren, and having him confirmed as

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<v Speaker 2>the Chief Justice. And I think a lot of business

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<v Speaker 2>owners are saying, WHOA, Maybe we shouldn't have pushed so

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<v Speaker 2>hard for Trump to become president, because we're now screwed.

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<v Speaker 1>We got a whole lot more than we wish for.

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<v Speaker 2>Sometimes you know, you don't want what you wish for,

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<v Speaker 2>and that seems to be the case. Bottom line here

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<v Speaker 2>with Musk on opposite ends of the President and the

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<v Speaker 2>president's team when it comes to tariffs, is there's a fight.

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<v Speaker 2>Of course, the President's going to win on this one.

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<v Speaker 2>And when Trump has argued even against the very economic adviser,

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<v Speaker 2>saying they don't know what they're talking about, this is wrong.

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<v Speaker 2>He's not really blaming the president. He's blaming more of

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<v Speaker 2>the people around the president. Here is White House Press

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<v Speaker 2>Secretary Kerriyon Levitt said, the President's put together a remarkable

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<v Speaker 2>team of highly talented and experienced individuals who bring different

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<v Speaker 2>ideas to the table, knowing that President Trump is the

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<v Speaker 2>ultimate decision maker. Highly talented and experienced individuals like Pete

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<v Speaker 2>Hegsith highly experienced as a Secretary of Defense, he was

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<v Speaker 2>a second lieutenant.

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<v Speaker 1>And you have.

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<v Speaker 2>Let's talk about a few others who have zero experience.

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<v Speaker 1>All right, I'm getting off my high horse. Absolutely. Now

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<v Speaker 1>let's move over to your wealth. And there is something

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<v Speaker 1>about home ownership that Americans just love.

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<v Speaker 2>As a matter of fact, if you are wealthy, if

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<v Speaker 2>you are considered wealthy, chances are that the wealth is

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<v Speaker 2>tied up in your home, the equity you have in

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<v Speaker 2>your house, especially if you bought several years.

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<v Speaker 1>Ago or way earlier than that, you're downright rich. Kind of.

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<v Speaker 2>What you do is have paper wealth, which means is

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<v Speaker 2>it real wealth?

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<v Speaker 1>Sort of?

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<v Speaker 2>Kind of maybe, But this is a situation where you're trapped. Also,

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<v Speaker 2>it's almost like an annuity that you can't get out.

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<v Speaker 2>It's almost like you have stocks that have not yet vested.

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<v Speaker 2>You have them, but you can't do anything with them.

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<v Speaker 2>And that's what happens with home equity. Home equity, especially

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<v Speaker 2>if I said it as if you bought years ago,

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<v Speaker 2>my goodness, you know, it can be hundreds of thousands

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<v Speaker 2>of dollars.

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<v Speaker 1>They can go beyond that. It is not unusual for

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<v Speaker 1>a home in southern California, it'd be a million dollars

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<v Speaker 1>or more.

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<v Speaker 2>You look out the window here in the studio and

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<v Speaker 2>there's your million dollar home right out there in burbank,

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<v Speaker 2>two bedroom, one bath, a thousand square feet, maybe three

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<v Speaker 2>small bedrooms and two very small bathrooms, a thousand square

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<v Speaker 2>feet on a lot the size of a postage stamp.

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<v Speaker 1>And there's your million dollar house.

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<v Speaker 2>And if you bought it years and years ago, there's

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<v Speaker 2>your million dollar house that you bought for two hundred

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<v Speaker 2>thousand dollars and you've paid it down, so you have

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<v Speaker 2>one hundred thousand dollars mortgage left, and so you're sitting

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<v Speaker 2>on nine hundred thousand dollars worth of equity.

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<v Speaker 1>Oh my goodness, that's fantastic.

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<v Speaker 2>Well, let me tell you people, if you don't own

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<v Speaker 2>a home, you're looking at homeowners going, oh my god,

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<v Speaker 2>I missed the boat.

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<v Speaker 1>Look at you you're so rich.

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<v Speaker 2>Well, yeah, you're rich, and you can translate it into

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<v Speaker 2>real money if two things happen.

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<v Speaker 1>One you sell the house.

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<v Speaker 2>And you decide to move to Squirrel Hollow, Tennessee, where

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<v Speaker 2>for nine hundred thousand.

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<v Speaker 1>Dollars you can buy all of Squirrel Hollow.

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<v Speaker 2>If you intend on staying here in southern California, you're screwed.

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<v Speaker 1>Why are you screwed?

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<v Speaker 2>Well, because you're selling your house for an enormous amount

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<v Speaker 2>of money and you're buying a house for an enormous

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<v Speaker 2>amount of money. Unless you're selling your home and you

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<v Speaker 2>plan on renting, which isn't a bad idea because in

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<v Speaker 2>many cases it makes more sense to rent than it

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<v Speaker 2>does to buy. But there's just something about home ownership

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<v Speaker 2>that is so American that makes you feel so good.

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<v Speaker 2>I own my own home, even to the point where

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<v Speaker 2>it makes no financial sense to do what I did,

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<v Speaker 2>for example, and that is pay off a mortgage. I

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<v Speaker 2>got a thirty year mortgage on the Persian Palace, got

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<v Speaker 2>a construction loan, built the place, had a thirty year mortgage,

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<v Speaker 2>which I paid off in less than ten years. And man,

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<v Speaker 2>I made big, big payments and it made no financial

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<v Speaker 2>sense because I had a great loan. I just wanted

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<v Speaker 2>to wake up in the morning and own my house.

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<v Speaker 2>There's just something about it. And it cost me money.

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<v Speaker 2>It cost me big money over the years. In any case,

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<v Speaker 2>as I said, it makes no sense. And here is

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<v Speaker 2>another reason that it makes no sense to own a

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<v Speaker 2>home and it keeps on going up and up and up.

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<v Speaker 2>Inequity is because there's something called property taxes and reassessments.

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<v Speaker 1>Oh that is a delight too.

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<v Speaker 2>But one of the things that I love about this

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<v Speaker 2>show is always looking for the lead lining. If I

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<v Speaker 2>can do anything to ruin your life any in any way, whatsoever,

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<v Speaker 2>I'm going to do it.

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<v Speaker 1>That's what gives me joy.

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<v Speaker 2>And sometimes there are topics in which it's really hard

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<v Speaker 2>to find a negative.

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<v Speaker 1>I mean I try. One of the.

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<v Speaker 2>Things, for example, which is for those of you or

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<v Speaker 2>those of as our homeowners, is look at the equity

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<v Speaker 2>in our house, like how wealthy we've become.

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<v Speaker 1>I mean, that's pretty good stuff. Ah, I'm gonna.

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<v Speaker 2>Tell you the other end of that, and that is

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<v Speaker 2>the negative of getting all.

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<v Speaker 1>Of this wealth because this is paper wealth. Is it

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<v Speaker 1>real wealth?

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<v Speaker 2>Yeah? I don't know. I mean your home, if you

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<v Speaker 2>there are homes that people bought for two hundred thousand

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<v Speaker 2>dollars ten years ago, they're a million dollars.

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<v Speaker 1>Now there's eight hundred thousand dollars with a equity.

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<v Speaker 2>I mean, damn, you're a millionaire basically if you look

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<v Speaker 2>at every anything else.

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<v Speaker 1>But what do you do with it?

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<v Speaker 2>You're gonna sell it, You're gonna cash it in. Why

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<v Speaker 2>are you gonna buy? What are you gonna do? Go

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<v Speaker 2>someplace else? You're gonna pay as much money. Oh, by

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<v Speaker 2>the way, let's talk about the interest rates. For those

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<v Speaker 2>people that borrow money. You're refinanced, and I know people

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<v Speaker 2>that have done it for two point seventy five percent.

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<v Speaker 1>That's free money.

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<v Speaker 2>Now we're getting over that because what's the interest rate now?

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<v Speaker 2>Six and a half percent is over on a thirty

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<v Speaker 2>year mortgage. It's a little bit more than two point

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<v Speaker 2>seventy five. So there's your quote wealth. You can't do

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<v Speaker 2>anything with it because look at the alternative, So you

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<v Speaker 2>just sit on it. And then the other fun topic

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<v Speaker 2>is your home is getting more and more valuable by

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<v Speaker 2>the second, where now it's slowed down a bit, but

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<v Speaker 2>it was just exploding.

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<v Speaker 1>As a matter of fact, if you look at the stats.

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<v Speaker 2>Home prices have increased forty seven percent between February of

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<v Speaker 2>twenty twenty and February of this year, right over five years.

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<v Speaker 2>Forty seven percent increase. I mean, stocks, bonds, none of

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<v Speaker 2>that have increase like that.

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<v Speaker 1>Homes have. Well, you know what happens.

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<v Speaker 2>Here are your property taxes, and the recorder's offices in

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<v Speaker 2>various counties around the country, particularly here in southern California,

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<v Speaker 2>have a nasty way of reassessing your home.

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<v Speaker 1>You think it's a secret.

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<v Speaker 2>That your house has gone up in value, so they

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<v Speaker 2>reassess it, and your property taxes are paid on the

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<v Speaker 2>value of your house.

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<v Speaker 1>And so how in how about your insurance rates? Have

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<v Speaker 1>they gone up a little bit? You think so? Home insurance?

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<v Speaker 1>I mean you got to the point.

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<v Speaker 2>With you know, one of the reasons I sold the

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<v Speaker 2>Persian Palace.

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<v Speaker 1>I couldn't.

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<v Speaker 2>I just wouldn't couldn't afford the home insurance rate. They doubled,

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<v Speaker 2>literally doubled from one year to the next, and they

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<v Speaker 2>weren't particularly cheap first time out. Property taxes kept increasing increasing,

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<v Speaker 2>So here I am with a ton of equity, which,

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<v Speaker 2>by the way, I had to get another house here

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<v Speaker 2>in southern California. Now, the only reason it was cheaper

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<v Speaker 2>is because the house is less than half the size

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<v Speaker 2>of the Persian Palace. But I finally got rid of

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<v Speaker 2>my kids kicking them out. Boy was that kicking and

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<v Speaker 2>screaming on that one. I literally had to boot them

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<v Speaker 2>out the front door. And so that's the reality. But

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<v Speaker 2>you still want to be a homeowner, don't you. It's

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<v Speaker 2>just it's not that easy. And as I said in

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<v Speaker 2>the last segment, here's what's easy, and that is selling

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<v Speaker 2>your home and getting out of Dodge.

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<v Speaker 1>Just saying I'm done. I'm going to move to Costa Rica.

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<v Speaker 2>I'm going to move to Appalachia, where, by the way,

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<v Speaker 2>it's it's medical care is cheaper there too. Do you

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<v Speaker 2>know that you can actually pay off your doctors and

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<v Speaker 2>sides of bacon, because that's what they do. It's not

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<v Speaker 2>quite the same as here. Anesthesia is very different. They

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<v Speaker 2>give you a stick to bite on. Now that's not

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<v Speaker 2>to say that medical care is not fantastic in those

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<v Speaker 2>parts of the country. That's another topic entirely. But home ownership,

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<v Speaker 2>I just want to ruin your day. All of this

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<v Speaker 2>is true, by the way, every bit of it all right,

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<v Speaker 2>this is KFI AM six point forty.

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<v Speaker 1>You've been listening to the Bill Handle Show.

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<v Speaker 2>Catch my Show Monday through Friday, six am to nine am,

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<v Speaker 2>and anytime on demand on the iHeartRadio app