WEBVTT

1
00:00:01.199 --> 00:00:05.240
<v Speaker 1>Always stronger than the setback, the comeback.

2
00:00:04.919 --> 00:00:06.839
<v Speaker 2>The greatest comeback of all time.

3
00:00:06.960 --> 00:00:14.320
<v Speaker 1>Here America's comeback fifty five KRC the talk station, the

4
00:00:14.400 --> 00:00:19.039
<v Speaker 1>Shribato six here if you about GARCD talk station regular listeners.

5
00:00:19.079 --> 00:00:21.679
<v Speaker 3>No, it is that time of week every Monday at eight,

6
00:00:21.679 --> 00:00:23.600
<v Speaker 3>beenning around eight or if five we talked to Brian James.

7
00:00:23.600 --> 00:00:25.440
<v Speaker 3>All were financials Brian James, and do that thing we

8
00:00:25.480 --> 00:00:27.839
<v Speaker 3>call money Monday. Welcome back, Brian James. Hope you had

9
00:00:27.839 --> 00:00:29.839
<v Speaker 3>a nice weekend. Get to enjoy this.

10
00:00:29.800 --> 00:00:33.840
<v Speaker 2>Good morning, and and you two, and welcome to NFL

11
00:00:33.920 --> 00:00:36.119
<v Speaker 2>off season. We need to officially start hearing what the

12
00:00:36.159 --> 00:00:38.000
<v Speaker 2>Bengals may or may not do, which probably means we

13
00:00:38.000 --> 00:00:39.359
<v Speaker 2>won't hear anything for a while.

14
00:00:39.960 --> 00:00:41.679
<v Speaker 3>And we'll get to hear a lot about the stadium

15
00:00:41.759 --> 00:00:46.000
<v Speaker 3>lease negotiation. I suppose to little side show in connection

16
00:00:46.079 --> 00:00:52.640
<v Speaker 3>with you day yeah right, whatever, anyhow, beginning our first

17
00:00:52.640 --> 00:00:55.280
<v Speaker 3>top of your conversation, appreciate all worth financial learning out

18
00:00:55.320 --> 00:00:58.000
<v Speaker 3>for our listeners. Every Monday at this time, more tariffs,

19
00:00:58.000 --> 00:01:00.240
<v Speaker 3>this time on aluminum steel.

20
00:01:01.399 --> 00:01:03.479
<v Speaker 2>Tariffs, tariffs and more tariffs. It just seems to be

21
00:01:03.479 --> 00:01:05.079
<v Speaker 2>didn't we just talk about this, Brian? I think a

22
00:01:05.120 --> 00:01:07.319
<v Speaker 2>week ago. Right now, at this moment, we were talking

23
00:01:07.359 --> 00:01:08.239
<v Speaker 2>about tariff's SATs.

24
00:01:08.719 --> 00:01:10.959
<v Speaker 3>You know what, next week, at this moment, we'll probably

25
00:01:11.000 --> 00:01:12.040
<v Speaker 3>be talking about them too.

26
00:01:13.159 --> 00:01:15.239
<v Speaker 2>It seems to be the theme of twenty twenty five.

27
00:01:15.319 --> 00:01:18.400
<v Speaker 2>So quick review. So this is gonna sound a little

28
00:01:18.400 --> 00:01:20.120
<v Speaker 2>bit familiar, but let's talk about what we did talk

29
00:01:20.159 --> 00:01:23.200
<v Speaker 2>about last week. So last week, the announcement was that

30
00:01:23.200 --> 00:01:25.840
<v Speaker 2>we'd announced the United States announced new tariffs against Canada.

31
00:01:26.120 --> 00:01:29.560
<v Speaker 2>That was twenty five percent tariffs on most imports, just

32
00:01:29.560 --> 00:01:31.280
<v Speaker 2>just just a wide range of everything, and you and

33
00:01:31.319 --> 00:01:33.159
<v Speaker 2>I went through a list of weirdness of stuff that

34
00:01:33.280 --> 00:01:35.920
<v Speaker 2>was on there, and then also at only a ten

35
00:01:36.000 --> 00:01:39.799
<v Speaker 2>percent tariff on Canadian energy products that was there was

36
00:01:39.799 --> 00:01:41.879
<v Speaker 2>an announcement there that Canada was going to come back

37
00:01:41.920 --> 00:01:45.040
<v Speaker 2>and slap some tariffs back on the US in exchange.

38
00:01:45.200 --> 00:01:47.760
<v Speaker 2>And then everybody decided, hey, wait a minute, let's chill out,

39
00:01:47.840 --> 00:01:49.519
<v Speaker 2>let's give it a month, and let's just kind of

40
00:01:49.560 --> 00:01:52.280
<v Speaker 2>see how things go. Let's just all be friends. So

41
00:01:52.359 --> 00:01:55.319
<v Speaker 2>today the news is that the United States is going

42
00:01:55.319 --> 00:01:57.840
<v Speaker 2>to impose a twenty five percent tariff on all steel

43
00:01:57.879 --> 00:02:01.599
<v Speaker 2>and aluminum imports from Canada and Mexico, and by the way,

44
00:02:01.640 --> 00:02:04.599
<v Speaker 2>let's not forget why are we targeting Canada and Mexico

45
00:02:04.760 --> 00:02:06.439
<v Speaker 2>because there are our friends, right, we want to target

46
00:02:06.439 --> 00:02:10.400
<v Speaker 2>our enemy that seems to have changed. Right. Canada and

47
00:02:10.439 --> 00:02:14.240
<v Speaker 2>Mexico are by far the largest trading partners of the

48
00:02:14.360 --> 00:02:16.800
<v Speaker 2>United States. So in twenty twenty three, we had eight

49
00:02:16.879 --> 00:02:20.479
<v Speaker 2>hundred billion dollars worth of goods and services exchange with Mexico,

50
00:02:21.000 --> 00:02:23.599
<v Speaker 2>seven seventy three with Canada, and then it starts to

51
00:02:23.639 --> 00:02:25.919
<v Speaker 2>drop off. China was five hundred and seventy five billion,

52
00:02:25.960 --> 00:02:28.039
<v Speaker 2>then Germany at two hundred and on down from there.

53
00:02:28.400 --> 00:02:31.319
<v Speaker 2>So we are basically slugging our best friends right in

54
00:02:31.360 --> 00:02:33.719
<v Speaker 2>the mouth to see how they react. This is a

55
00:02:33.759 --> 00:02:35.360
<v Speaker 2>trade war. It's what it looks like, is what it

56
00:02:35.400 --> 00:02:38.080
<v Speaker 2>feels like. And we'll see if President Trump is able

57
00:02:38.080 --> 00:02:39.879
<v Speaker 2>to get what he wants out of this, will we

58
00:02:39.919 --> 00:02:41.240
<v Speaker 2>stick to it. We'll see.

59
00:02:41.360 --> 00:02:43.680
<v Speaker 3>Well, the original tariffs we were previously talking about that

60
00:02:43.639 --> 00:02:46.479
<v Speaker 3>got put on hold for thirty days. President Trump specifically

61
00:02:46.520 --> 00:02:49.400
<v Speaker 3>stated it was an effort to get them to pony

62
00:02:49.479 --> 00:02:52.840
<v Speaker 3>up some help on border security, and in response, both

63
00:02:52.919 --> 00:02:56.039
<v Speaker 3>Mexico and Canada said, yeah, we will, and they allocated

64
00:02:56.080 --> 00:02:58.759
<v Speaker 3>resources and troops to go to the various borders and

65
00:02:58.759 --> 00:03:02.240
<v Speaker 3>help us control the illegal immigrant population. And so that's

66
00:03:02.280 --> 00:03:06.120
<v Speaker 3>why pause the tariffs. This doesn't isn't connected with any

67
00:03:06.199 --> 00:03:08.520
<v Speaker 3>specific announcement that I saw in cases like we are

68
00:03:08.560 --> 00:03:11.919
<v Speaker 3>doing this because fill in the blank. It's just because

69
00:03:11.960 --> 00:03:16.400
<v Speaker 3>we're importing the steel and aluminum from other countries, is it?

70
00:03:16.599 --> 00:03:16.960
<v Speaker 2>You think?

71
00:03:17.080 --> 00:03:19.159
<v Speaker 3>Has it been expressed somewhere that is Trump's hope that

72
00:03:19.199 --> 00:03:22.479
<v Speaker 3>this will bring back the manufacturing of steel and aluminum

73
00:03:22.479 --> 00:03:23.360
<v Speaker 3>in our country.

74
00:03:24.199 --> 00:03:26.199
<v Speaker 2>Yeah, I think that that underlies a lot of the

75
00:03:26.199 --> 00:03:28.400
<v Speaker 2>decisions you're going to see this administration make at the

76
00:03:28.479 --> 00:03:28.919
<v Speaker 2>end of the day.

77
00:03:29.000 --> 00:03:29.159
<v Speaker 1>Yeah.

78
00:03:29.199 --> 00:03:31.680
<v Speaker 2>Yeah, we want to stop the bad stuff from flowing

79
00:03:31.719 --> 00:03:33.960
<v Speaker 2>across the borders, and this is a great way to

80
00:03:33.960 --> 00:03:36.120
<v Speaker 2>get attention and do it. But another goal, and I

81
00:03:36.159 --> 00:03:38.039
<v Speaker 2>don't want to call it a secondary goal, it's just

82
00:03:38.080 --> 00:03:41.680
<v Speaker 2>another goal, is to impose the United States a little

83
00:03:41.719 --> 00:03:44.360
<v Speaker 2>more in the world order of how these goods and

84
00:03:44.400 --> 00:03:47.919
<v Speaker 2>services get traded. So we are we are an expensive nation.

85
00:03:48.000 --> 00:03:49.639
<v Speaker 2>You and I talk about this all the time. It's

86
00:03:49.680 --> 00:03:52.439
<v Speaker 2>expensive to produce things here because of all the rules

87
00:03:52.479 --> 00:03:55.919
<v Speaker 2>and regulations we have. Some are good and should be there,

88
00:03:55.919 --> 00:03:58.599
<v Speaker 2>some are a little probably a little overdone, and maybe

89
00:03:58.639 --> 00:04:01.400
<v Speaker 2>need to be reviewed, but currently all we're trying to

90
00:04:01.439 --> 00:04:02.960
<v Speaker 2>do because it's going to be harder to get all

91
00:04:03.000 --> 00:04:05.039
<v Speaker 2>the all the regulation and all that stuff out. It's

92
00:04:05.039 --> 00:04:07.159
<v Speaker 2>going to take more time, a lot more time to

93
00:04:07.199 --> 00:04:09.919
<v Speaker 2>reduce the impact of that. But we're simply making it

94
00:04:10.000 --> 00:04:14.599
<v Speaker 2>more expensive for other countries to compete with us, and

95
00:04:14.759 --> 00:04:17.800
<v Speaker 2>that to me, that's a band aid, right, that's simply saying,

96
00:04:17.800 --> 00:04:19.519
<v Speaker 2>in the short run, we can just make it more

97
00:04:19.560 --> 00:04:22.160
<v Speaker 2>expensive for other countries to push their goods into the

98
00:04:22.240 --> 00:04:25.199
<v Speaker 2>United States while in the background we're trying to reduce

99
00:04:25.199 --> 00:04:27.399
<v Speaker 2>That's why you're hearing about this department's gone and this

100
00:04:27.439 --> 00:04:30.639
<v Speaker 2>one's under review. Whether this stuff is constitutional. Who knows,

101
00:04:31.839 --> 00:04:36.439
<v Speaker 2>not a constant constitutional law expert here. But the goal

102
00:04:36.519 --> 00:04:39.040
<v Speaker 2>there would be to reduce the long term cost of

103
00:04:39.079 --> 00:04:41.879
<v Speaker 2>producing these goods in the United States. In the short run,

104
00:04:41.920 --> 00:04:44.879
<v Speaker 2>we're going to increase our competitiveness by just making it

105
00:04:44.920 --> 00:04:46.879
<v Speaker 2>more expensive for other countries to compete here.

106
00:04:47.399 --> 00:04:50.120
<v Speaker 3>Yeah, And I don't know if to get to point B,

107
00:04:50.319 --> 00:04:53.160
<v Speaker 3>which is making it easier to manufacture here, I mean,

108
00:04:53.160 --> 00:04:55.120
<v Speaker 3>do we have to go through the pain? I don't know.

109
00:04:55.399 --> 00:04:58.639
<v Speaker 3>Trump's got that. You know, if every one regulation that's

110
00:04:58.639 --> 00:05:01.160
<v Speaker 3>implementing got get rid of. It used to be two.

111
00:05:01.319 --> 00:05:04.279
<v Speaker 3>But maybe the ten regulations that we're getting rid of

112
00:05:04.399 --> 00:05:07.120
<v Speaker 3>might impact the cost of doing business in the United States.

113
00:05:07.279 --> 00:05:10.240
<v Speaker 3>I mean, we've created this expense here. We've got OSHA,

114
00:05:10.319 --> 00:05:13.839
<v Speaker 3>we've got EPA, We've got all these rules and regulations.

115
00:05:13.839 --> 00:05:16.639
<v Speaker 3>We've got you know, union mandates in terms of contracts

116
00:05:16.639 --> 00:05:20.560
<v Speaker 3>they negotiated for you really expensive hourly wages and mandatory

117
00:05:20.600 --> 00:05:23.879
<v Speaker 3>work conditions and everything just makes it more expensive. Of course,

118
00:05:23.920 --> 00:05:26.000
<v Speaker 3>if you can use slave labor like in China to

119
00:05:26.040 --> 00:05:28.240
<v Speaker 3>manufacturer steel, of course it's going to be a lot cheaper.

120
00:05:28.600 --> 00:05:31.000
<v Speaker 3>I mean, you know, we have kind of done it

121
00:05:31.040 --> 00:05:34.120
<v Speaker 3>to ourselves in many respects. Not to negate your legitimate

122
00:05:34.120 --> 00:05:36.480
<v Speaker 3>point that some of these rules and regulations are important,

123
00:05:36.959 --> 00:05:38.759
<v Speaker 3>it's just there's too many of them.

124
00:05:39.000 --> 00:05:41.199
<v Speaker 2>Yeah, that's right, and we've never really had at least

125
00:05:41.199 --> 00:05:43.600
<v Speaker 2>I can't think of in my adult memory. I'm about

126
00:05:43.600 --> 00:05:45.680
<v Speaker 2>fifty years old, and I cannot think of my adult

127
00:05:45.720 --> 00:05:50.959
<v Speaker 2>memory of any kind of major review or overhaul. Whenever

128
00:05:51.000 --> 00:05:54.560
<v Speaker 2>the idea surfaced in Congress to get some of these

129
00:05:54.600 --> 00:05:57.120
<v Speaker 2>things cleaned up, then it would be quickly shot down

130
00:05:57.160 --> 00:05:59.319
<v Speaker 2>from the other side. I look at the social security

131
00:05:59.399 --> 00:06:02.439
<v Speaker 2>argument we talked, but that doesn't work either, And bills

132
00:06:02.519 --> 00:06:05.000
<v Speaker 2>hit the floor every year, several times a year to

133
00:06:05.040 --> 00:06:08.160
<v Speaker 2>actually address that problem, but they're very easily shot down

134
00:06:08.160 --> 00:06:10.160
<v Speaker 2>by either side. Well, now all of a sudden, there

135
00:06:10.160 --> 00:06:13.720
<v Speaker 2>appears to be a third side that doesn't really have

136
00:06:13.800 --> 00:06:16.360
<v Speaker 2>to cowtow to the other two sides. Now again, whether

137
00:06:16.399 --> 00:06:18.319
<v Speaker 2>this stuff holds up in court, that's going to be

138
00:06:18.319 --> 00:06:20.800
<v Speaker 2>the challenge, because there's some things coming out of DC

139
00:06:20.959 --> 00:06:23.959
<v Speaker 2>right now that have nothing to do and go completely

140
00:06:24.040 --> 00:06:27.120
<v Speaker 2>counter to the Constitution. Whether they're good moves bad moves,

141
00:06:27.399 --> 00:06:29.959
<v Speaker 2>somebody is going to stand up and say, hey, this

142
00:06:30.000 --> 00:06:32.240
<v Speaker 2>does not go again, go with the words that are

143
00:06:32.240 --> 00:06:34.319
<v Speaker 2>in our constitution that we all agreed was a pretty

144
00:06:34.360 --> 00:06:35.759
<v Speaker 2>good idea a few hundred years ago.

145
00:06:35.959 --> 00:06:39.839
<v Speaker 3>Yeah, And like all things, ultimately litigation will result and

146
00:06:40.079 --> 00:06:43.240
<v Speaker 3>we'll finally get some answer when it finally ultimately reaches

147
00:06:43.279 --> 00:06:45.519
<v Speaker 3>the Supreme Court if it goes out high. But you know,

148
00:06:45.560 --> 00:06:48.920
<v Speaker 3>you're talking multiple years for any of these things to

149
00:06:48.920 --> 00:06:50.600
<v Speaker 3>see the light of some final decision.

150
00:06:51.240 --> 00:06:53.839
<v Speaker 2>Absolutely, And I think that's why Trump's taking the approach

151
00:06:53.879 --> 00:06:56.040
<v Speaker 2>that he is, which is just let's just slam the

152
00:06:56.079 --> 00:06:58.319
<v Speaker 2>door on these things. Whatever happens, maybe the glass in

153
00:06:58.360 --> 00:07:00.600
<v Speaker 2>the door breaks, who cares, We'll clean it up. I'm

154
00:07:00.600 --> 00:07:02.759
<v Speaker 2>not waving the flag saying this is a great idea.

155
00:07:02.800 --> 00:07:05.199
<v Speaker 2>It is definitely a different idea, and it's a different

156
00:07:05.240 --> 00:07:08.720
<v Speaker 2>approach sort of that scorch and burn. Let's burn everything down,

157
00:07:08.720 --> 00:07:10.639
<v Speaker 2>tear it all apart, and we will rebuild the stuff

158
00:07:10.639 --> 00:07:12.920
<v Speaker 2>that we have to rebuild and leave alone the stuff

159
00:07:12.920 --> 00:07:15.680
<v Speaker 2>that apparently wasn't necessary in the first place. A lot

160
00:07:15.720 --> 00:07:18.839
<v Speaker 2>of that comes from Elon Musk. That that is Elon

161
00:07:18.959 --> 00:07:20.959
<v Speaker 2>Musk's way. If you if you read his biography, if

162
00:07:20.959 --> 00:07:23.399
<v Speaker 2>you see how he built those businesses, he would he

163
00:07:23.480 --> 00:07:26.639
<v Speaker 2>had very strict rules about same as you just mentioned.

164
00:07:26.639 --> 00:07:28.040
<v Speaker 2>If we're going to put one rule in place, we're

165
00:07:28.040 --> 00:07:30.680
<v Speaker 2>gonna get rid of five others. Every rule he creates

166
00:07:30.920 --> 00:07:33.399
<v Speaker 2>must have somebody's name attached to it, so that ten

167
00:07:33.480 --> 00:07:35.639
<v Speaker 2>years from now we can go back to that person

168
00:07:35.680 --> 00:07:37.240
<v Speaker 2>to say, why does this rule exist and do we

169
00:07:37.279 --> 00:07:40.399
<v Speaker 2>still need it, versus, like you said, regulations that have

170
00:07:40.399 --> 00:07:42.480
<v Speaker 2>been in place for decades that may or may not

171
00:07:42.519 --> 00:07:44.079
<v Speaker 2>have any application anymore.

172
00:07:43.800 --> 00:07:46.199
<v Speaker 3>Right, and many of them redundant, many of them you know,

173
00:07:46.360 --> 00:07:50.600
<v Speaker 3>just outlandishly expensive, too saying that's the keying. You got

174
00:07:50.639 --> 00:07:52.399
<v Speaker 3>to pay a legal department to pay attention to the

175
00:07:52.399 --> 00:07:55.360
<v Speaker 3>CODA FED federal regulations. And for every hour spent by

176
00:07:55.399 --> 00:07:57.720
<v Speaker 3>a lawyer, that is profit that's being taken away from

177
00:07:57.759 --> 00:08:00.720
<v Speaker 3>the company and time spent on something that most prudent

178
00:08:00.759 --> 00:08:03.079
<v Speaker 3>businesses really wish they didn't have to spend any time on.

179
00:08:03.800 --> 00:08:06.000
<v Speaker 2>Yeah, and that's the American way. The legal companies and

180
00:08:06.000 --> 00:08:08.000
<v Speaker 2>now they realize this is a huge opportunity. The more

181
00:08:08.040 --> 00:08:10.639
<v Speaker 2>the messier this is, the more confusing it is, the

182
00:08:10.680 --> 00:08:12.639
<v Speaker 2>more profit can be made. You know, look at look

183
00:08:12.639 --> 00:08:15.439
<v Speaker 2>at the TurboTax people. Oh, I know the biggest lobbies

184
00:08:15.439 --> 00:08:17.879
<v Speaker 2>in DC. Let's like people confused and unable to do

185
00:08:17.879 --> 00:08:18.680
<v Speaker 2>their own taxes.

186
00:08:18.839 --> 00:08:21.120
<v Speaker 3>Oh, if I could lay hands on a problem, I

187
00:08:21.160 --> 00:08:22.800
<v Speaker 3>think that would be the first place I go. The

188
00:08:22.879 --> 00:08:25.879
<v Speaker 3>United States tax code. It's insane and all it is

189
00:08:26.000 --> 00:08:28.600
<v Speaker 3>used for as a vehicle for the federal government to

190
00:08:28.639 --> 00:08:31.920
<v Speaker 3>manipulate businesses into doing things that they otherwise wouldn't do

191
00:08:32.000 --> 00:08:35.159
<v Speaker 3>as prudent in businesses. Any pause, We're going to take

192
00:08:35.159 --> 00:08:37.679
<v Speaker 3>an early, slightly early break eight fourteen. We'll bring him

193
00:08:37.720 --> 00:08:40.200
<v Speaker 3>back and we'll talk about your insurance rates are going

194
00:08:40.240 --> 00:08:43.480
<v Speaker 3>up stating the obvious, but why also how much you

195
00:08:43.519 --> 00:08:45.799
<v Speaker 3>planned on spending on Valentine's Day. One more segment with

196
00:08:45.840 --> 00:08:49.159
<v Speaker 3>Brian James this morning, be right back fifty five KARC

197
00:08:49.679 --> 00:08:55.440
<v Speaker 3>the talk station eight eighteen fifty five KRCD Talk Station

198
00:08:55.519 --> 00:08:59.919
<v Speaker 3>Brian Thomas with Brian James from Maulworth Mancher doing Money Monday. Wow,

199
00:09:00.200 --> 00:09:02.080
<v Speaker 3>Insurance r. I know insurance rates are going through the

200
00:09:02.120 --> 00:09:06.039
<v Speaker 3>roof ran. One might think immediately that it's because of

201
00:09:06.080 --> 00:09:08.639
<v Speaker 3>the natural disasters. You know, wildfires in California, you got

202
00:09:08.720 --> 00:09:11.679
<v Speaker 3>hurricanes hitting the Florida and you know running through in

203
00:09:11.720 --> 00:09:14.279
<v Speaker 3>the flooding in North Carolina, and all this obviously has

204
00:09:14.320 --> 00:09:16.720
<v Speaker 3>to be paid for by insurance companies, assuming insurance companies

205
00:09:16.759 --> 00:09:22.399
<v Speaker 3>are actually ensuring these these these dwellings. But as I understand,

206
00:09:22.559 --> 00:09:25.759
<v Speaker 3>it's large part the growing insurance rates are because of

207
00:09:25.879 --> 00:09:28.759
<v Speaker 3>litigation lawsuits at least a corner to this article from

208
00:09:28.799 --> 00:09:39.000
<v Speaker 3>Fox Business, I have Brian me there you are, yeah, go.

209
00:09:38.960 --> 00:09:42.879
<v Speaker 2>Ahead, there we are, sorry about that. Yeah. So they're

210
00:09:42.879 --> 00:09:45.360
<v Speaker 2>calling it the Torque tax. The average American household is

211
00:09:45.360 --> 00:09:47.360
<v Speaker 2>going to pay about forty two hundred dollars a year

212
00:09:47.919 --> 00:09:50.919
<v Speaker 2>through their premiums due to these litigation costs, which is

213
00:09:50.960 --> 00:09:54.159
<v Speaker 2>simply that that's just how we've grown as a society.

214
00:09:54.279 --> 00:09:56.440
<v Speaker 2>So we've always been a litigious society because at the

215
00:09:56.480 --> 00:09:58.600
<v Speaker 2>end of the day, in the good old United States,

216
00:09:58.639 --> 00:10:00.919
<v Speaker 2>a profit margin Suing people is a great way to

217
00:10:00.919 --> 00:10:02.879
<v Speaker 2>make money, right, we all kind of know this, but

218
00:10:02.879 --> 00:10:06.639
<v Speaker 2>it's gotten worse and worse. Just like anything else any anywhere,

219
00:10:06.639 --> 00:10:09.159
<v Speaker 2>it is recognized that a profit can be made, a

220
00:10:09.200 --> 00:10:12.120
<v Speaker 2>profit will be made, and it will be maximized and optimized.

221
00:10:12.120 --> 00:10:15.120
<v Speaker 2>So there are companies out there who solely exist to

222
00:10:15.639 --> 00:10:18.879
<v Speaker 2>take on lawsuits for people. For example, if you're if

223
00:10:18.879 --> 00:10:21.879
<v Speaker 2>you're involved in some kind of a medical malpractice suit,

224
00:10:22.080 --> 00:10:24.279
<v Speaker 2>there are plenty of law firms out there that have

225
00:10:24.360 --> 00:10:27.679
<v Speaker 2>investors behind them who are investing in the research of

226
00:10:27.720 --> 00:10:30.879
<v Speaker 2>that lawsuit. The person who was wronged by it will

227
00:10:30.919 --> 00:10:33.440
<v Speaker 2>financially benefit, of course if there's a win, but obviously

228
00:10:33.519 --> 00:10:36.399
<v Speaker 2>getting a much smaller percentage. These are literally like they're

229
00:10:36.440 --> 00:10:39.840
<v Speaker 2>starting to look like little startup companies. Right, something happens

230
00:10:39.840 --> 00:10:42.159
<v Speaker 2>to somebody and there's and there's a somewhat clear uh,

231
00:10:42.480 --> 00:10:45.919
<v Speaker 2>you know, medical malpractice type of a suit. Well, let's

232
00:10:45.960 --> 00:10:48.960
<v Speaker 2>not just sue the medical provider behind it. Let's get

233
00:10:48.960 --> 00:10:51.519
<v Speaker 2>as much as we possibly can, regardless of the impact.

234
00:10:51.840 --> 00:10:55.399
<v Speaker 2>This is just skyrocketing, and it's literally raising your and

235
00:10:55.440 --> 00:10:58.639
<v Speaker 2>my insurance premiums because the insurance companies have to react

236
00:10:58.639 --> 00:11:00.840
<v Speaker 2>to that as well as of course they have their

237
00:11:00.840 --> 00:11:03.840
<v Speaker 2>own profit motivations as well. So there's a lot going

238
00:11:03.879 --> 00:11:05.639
<v Speaker 2>on out there that is going to continue to raise

239
00:11:05.679 --> 00:11:06.360
<v Speaker 2>these costs.

240
00:11:06.600 --> 00:11:08.600
<v Speaker 3>Yeah, and I was really you know, I was a

241
00:11:08.600 --> 00:11:12.200
<v Speaker 3>litigation attorney for sixteen years. I involved I did defense work,

242
00:11:12.639 --> 00:11:15.360
<v Speaker 3>you know, towards liability or product liability that a lot

243
00:11:15.360 --> 00:11:18.039
<v Speaker 3>of those defended companies like Cooper Industries for injuries that

244
00:11:18.200 --> 00:11:20.639
<v Speaker 3>were claimed to be as a consequence of something that

245
00:11:20.679 --> 00:11:25.279
<v Speaker 3>their product did. But this idea that that attorneys are

246
00:11:26.120 --> 00:11:30.399
<v Speaker 3>expanding the expectations of the basically the jury pool by

247
00:11:30.480 --> 00:11:33.679
<v Speaker 3>advertising my client got twenty million dollars from this auto

248
00:11:33.759 --> 00:11:38.399
<v Speaker 3>accident and then going into court making wild, outlandish claims

249
00:11:38.440 --> 00:11:40.679
<v Speaker 3>for damages. Because you know, you got to start someplace.

250
00:11:40.720 --> 00:11:43.720
<v Speaker 3>It's like a negotiation. It's like Trump start now, you know,

251
00:11:43.759 --> 00:11:45.960
<v Speaker 3>I'm going I'm going to buy Greenland. Maybe just get

252
00:11:45.960 --> 00:11:49.039
<v Speaker 3>this the conversation started about how we can improve relations

253
00:11:49.080 --> 00:11:51.240
<v Speaker 3>with it or whatever. You got to start somewhere, but

254
00:11:51.519 --> 00:11:53.679
<v Speaker 3>they start these crazy amounts and juries get it in

255
00:11:53.759 --> 00:11:56.519
<v Speaker 3>their mind that, well, that's kind of normal, but it's not.

256
00:11:56.879 --> 00:12:00.759
<v Speaker 3>There's no connection with these wild claims of damage to

257
00:12:00.840 --> 00:12:04.360
<v Speaker 3>the reality of the injury that that person allegedly suffered.

258
00:12:05.120 --> 00:12:08.559
<v Speaker 2>Yeah, but you're right, those eight and sometimes nine digit

259
00:12:08.679 --> 00:12:11.759
<v Speaker 2>jury verdicts are becoming normalized, and that's why you have

260
00:12:11.879 --> 00:12:14.080
<v Speaker 2>these signs shoved in your face. You're just trying to

261
00:12:14.159 --> 00:12:15.879
<v Speaker 2>drive to work and run to the grocery store, and

262
00:12:15.879 --> 00:12:18.360
<v Speaker 2>you're seeing billboards that advertise this, We're seeing it on

263
00:12:18.399 --> 00:12:21.600
<v Speaker 2>social media. It's just a way that this industry. Then

264
00:12:21.600 --> 00:12:23.000
<v Speaker 2>I'm going to go ahead and call this an industry.

265
00:12:23.000 --> 00:12:25.440
<v Speaker 2>It's a low cottage industry, I would say, Yeah, is

266
00:12:25.480 --> 00:12:29.360
<v Speaker 2>affecting how you, as a potential juror might react. So,

267
00:12:29.399 --> 00:12:31.039
<v Speaker 2>in other words, when you finally do land in that

268
00:12:31.120 --> 00:12:33.200
<v Speaker 2>jury box, as all of us will probably once in

269
00:12:33.240 --> 00:12:35.960
<v Speaker 2>our lives, you won't blink at the idea of a

270
00:12:36.000 --> 00:12:39.080
<v Speaker 2>ten million dollar verdict that itself has a has a nickname.

271
00:12:39.159 --> 00:12:42.039
<v Speaker 2>Nuclear verdicts is what they're calling jury verdicts of ten

272
00:12:42.039 --> 00:12:45.200
<v Speaker 2>million dollars or more. The top one hundred of these

273
00:12:45.240 --> 00:12:47.399
<v Speaker 2>have increased by about three hundred and fifty percent in

274
00:12:47.399 --> 00:12:51.320
<v Speaker 2>the last six years. Overall personal injury verdicts since twenty

275
00:12:51.360 --> 00:12:54.159
<v Speaker 2>ten are up three hundred and nineteen percent, so we're

276
00:12:54.200 --> 00:12:56.960
<v Speaker 2>seeing a huge increase. Again, it's just a place, it's

277
00:12:56.799 --> 00:12:59.879
<v Speaker 2>it's just a new business. There are literally investors here, yeah,

278
00:13:00.120 --> 00:13:02.720
<v Speaker 2>hoarding law firms, like just like you would you you

279
00:13:02.720 --> 00:13:05.159
<v Speaker 2>would raise funds for a technology company or something like that.

280
00:13:05.159 --> 00:13:08.039
<v Speaker 2>They're supporting law firms who will go chase and prosecute

281
00:13:08.320 --> 00:13:10.120
<v Speaker 2>these quote unquote opportunities.

282
00:13:10.200 --> 00:13:12.120
<v Speaker 3>You know what, this seems to me a just a

283
00:13:12.279 --> 00:13:16.200
<v Speaker 3>screaming cry for some uh some ethics reforms and some

284
00:13:16.360 --> 00:13:19.799
<v Speaker 3>rules governing the practice of law. Because this article points

285
00:13:19.799 --> 00:13:23.159
<v Speaker 3>out that foreign parties, for example, the Chinese Communist Party

286
00:13:23.200 --> 00:13:26.600
<v Speaker 3>are some of the investors who finance these lawsuits. I

287
00:13:26.639 --> 00:13:30.279
<v Speaker 3>mean the idea of some outside person financing and then

288
00:13:30.360 --> 00:13:34.159
<v Speaker 3>glombing onto some chunk of the award which should have

289
00:13:34.200 --> 00:13:36.399
<v Speaker 3>either gone to the plaintiff lawyers who did the legal work,

290
00:13:36.799 --> 00:13:40.240
<v Speaker 3>or to their client who they represent, but that they

291
00:13:40.279 --> 00:13:42.159
<v Speaker 3>have to shell out a chunk of this jury verty

292
00:13:42.200 --> 00:13:44.320
<v Speaker 3>can give to some third party investor. That just seems

293
00:13:44.320 --> 00:13:48.360
<v Speaker 3>to be just completely unethical. But who am I but a.

294
00:13:48.360 --> 00:13:54.080
<v Speaker 2>Priorigation rationally thinking American. Unfortunately, we just put an administration

295
00:13:54.200 --> 00:13:56.200
<v Speaker 2>in place that is not going to lift a finger

296
00:13:56.320 --> 00:13:58.360
<v Speaker 2>to do that. Because to fight that, because that's going

297
00:13:58.440 --> 00:14:00.480
<v Speaker 2>to be more regulation, we're gonna gonna be going in

298
00:14:00.519 --> 00:14:02.720
<v Speaker 2>the opposite direction. You're going to hear more and more

299
00:14:02.720 --> 00:14:03.080
<v Speaker 2>about this.

300
00:14:03.240 --> 00:14:05.840
<v Speaker 3>Well, I don't know that it requires federal legislation. This

301
00:14:06.000 --> 00:14:08.960
<v Speaker 3>requires like state bar associations to enact rules that say

302
00:14:08.960 --> 00:14:10.759
<v Speaker 3>you just can't do that. As a lawyer in the

303
00:14:10.799 --> 00:14:15.080
<v Speaker 3>state practicing here, that is prohibited period. It could be

304
00:14:15.120 --> 00:14:18.120
<v Speaker 3>done grassroots efforts have to get the plaintiff's bar behind it.

305
00:14:18.159 --> 00:14:21.200
<v Speaker 3>Ha ha A good luck with that, all right, Brian,

306
00:14:21.279 --> 00:14:23.200
<v Speaker 3>The answer for me is nothing. I may buy a

307
00:14:23.240 --> 00:14:26.679
<v Speaker 3>card to celebrate the day of our engagement, but you know,

308
00:14:26.759 --> 00:14:28.679
<v Speaker 3>Valentine's Day is just like any other day of the

309
00:14:28.679 --> 00:14:30.960
<v Speaker 3>week from my perspective, and it's just an excuse for

310
00:14:31.000 --> 00:14:32.159
<v Speaker 3>people to feel like they've got to go out and

311
00:14:32.200 --> 00:14:34.320
<v Speaker 3>spend a lot of money, and apparently they do.

312
00:14:35.120 --> 00:14:38.519
<v Speaker 2>They do. Indeed, so we're expected to spend twenty five

313
00:14:38.600 --> 00:14:41.879
<v Speaker 2>point eight billion dollars fees in this. Yeah, that's a

314
00:14:42.039 --> 00:14:44.240
<v Speaker 2>lot a lot of money. That chocolate just got expensive,

315
00:14:45.120 --> 00:14:47.559
<v Speaker 2>and we'll spend an average of one hundred and eighty

316
00:14:47.559 --> 00:14:50.120
<v Speaker 2>five dollars on gifts and experiences. Now, this is this

317
00:14:50.200 --> 00:14:52.759
<v Speaker 2>blows my mind. I hope Michelle James is not expecting

318
00:14:52.759 --> 00:14:54.720
<v Speaker 2>one hundred and eighty five dollars worth of gifts and

319
00:14:54.799 --> 00:14:57.799
<v Speaker 2>experience here. If you take she would flap me straight

320
00:14:57.799 --> 00:14:59.440
<v Speaker 2>across the face if I did that anything.

321
00:14:59.519 --> 00:15:02.960
<v Speaker 3>That's why the first place, right, she's prudent, she's frugal.

322
00:15:03.559 --> 00:15:05.240
<v Speaker 3>She knows the value of a dollar, and she has

323
00:15:05.279 --> 00:15:07.759
<v Speaker 3>low expectations that you're gonna go out and shot a

324
00:15:07.759 --> 00:15:10.559
<v Speaker 3>boatload of money for well, just another day.

325
00:15:11.600 --> 00:15:13.639
<v Speaker 2>She is so frugal that the first time I bought

326
00:15:13.679 --> 00:15:15.919
<v Speaker 2>her flowers a million years ago, she yelled at me

327
00:15:16.000 --> 00:15:18.480
<v Speaker 2>because flowers are expensive and they die and we've got

328
00:15:18.519 --> 00:15:19.960
<v Speaker 2>more important things to spend money on.

329
00:15:20.159 --> 00:15:22.080
<v Speaker 3>Sounds like you, very well the same kind of woman

330
00:15:22.120 --> 00:15:24.559
<v Speaker 3>as mine. My wife is very frugal and prudent. And

331
00:15:24.720 --> 00:15:28.279
<v Speaker 3>uh yes, that's that's wonderful. So maybe reflect on that.

332
00:15:28.879 --> 00:15:30.639
<v Speaker 3>And if you get yelled at for not spending a

333
00:15:30.679 --> 00:15:32.679
<v Speaker 3>whole bunch of money on Valentine's Day, you might want

334
00:15:32.679 --> 00:15:33.759
<v Speaker 3>to reflect on that too.

335
00:15:33.799 --> 00:15:38.159
<v Speaker 2>Brian, I really am not too worried that that's gonna

336
00:15:38.159 --> 00:15:38.320
<v Speaker 2>be it.

337
00:15:38.720 --> 00:15:40.799
<v Speaker 3>You have be buff, brother, you have e buff. That's

338
00:15:40.840 --> 00:15:43.399
<v Speaker 3>why I'll be married thirty three years in June. It's

339
00:15:43.440 --> 00:15:45.960
<v Speaker 3>a one of the big reasons anyway. Brian James always

340
00:15:45.960 --> 00:15:48.519
<v Speaker 3>appreciate our conversations. And we'll do it again next Monday

341
00:15:48.519 --> 00:15:50.440
<v Speaker 3>for another edition of Money Monday. And thanksgeting to all

342
00:15:50.440 --> 00:15:51.759
<v Speaker 3>word for loading you out.

343
00:15:52.120 --> 00:15:53.720
<v Speaker 2>You bet enjoy it. Every week we'll talk to you

344
00:15:53.720 --> 00:15:54.039
<v Speaker 2>them all.

345
00:15:54.039 --> 00:15:55.679
<v Speaker 3>Right, look forward to it eight twenty five right now.

346
00:15:55.720 --> 00:16:00.399
<v Speaker 3>Coming up next, Mandy Agunna Sekhara with the book Y'all Fired,

347
00:16:01.320 --> 00:16:03.840
<v Speaker 3>Southern Bell's Guide to Restoring Federalism and Draining the Swamp.

348
00:16:03.879 --> 00:16:05.519
<v Speaker 3>We talked with her last October, bringing her back on

349
00:16:05.559 --> 00:16:07.679
<v Speaker 3>to talk about what she thinks about Elon Musk and

350
00:16:07.720 --> 00:16:10.039
<v Speaker 3>the Doge Department and the draining of the swamp. I

351
00:16:10.039 --> 00:16:11.279
<v Speaker 3>hope he can stick around.

352
00:16:11.080 --> 00:16:12.200
<v Speaker 2>Fifty five KRC.

353
00:16:12.759 --> 00:16:13.200
<v Speaker 3>The simply