Or no.

What are you doing?

Yeah.

Yeah, I want to be comfortable.

Okay.

Oh, comfortable, Comfortable.

Yeah.

I mean, we're gonna talk about some serious stuff tonight, and I just wanted to be comfortable, you know?

All right.

So the nice tells me she's gonna do some stuff with some candles.

Got excited, like, the big naturally.

You got excited.

Wax candles, right?

Okay.

No, I did not get excited.

I thought, okay, well, cool.

I'm gonna go shower.

So I did, and I didn't really think much of it, you know, and she, you know, she spent some time doing something downstairs, and I didn't question it, you know?

Well, I go to sleep early and I hear like, what sounds like an explosion in, like, a plate dropping from, like, way high up or something.

Like glass shattering.

So this is now like 1, 2 o'clock in the morning.

Our son was sick.

I pop out of bed, run downstairs, I'm like, yo, like, I'm ready to go to war.

Like, I'm like, in cortisol level 1000, you know, like, I'm.

And there's two candles that were on plates, and the candles melted down to the plates, overheated the plates.

Plates exploded and fell from our second story down to the first story.

Right.

With.

But the problem is when it exploded, it got wax everywhere.

Oh, my God.

But when I came downstairs, you want to know what I saw?

A fire on that shelf when you walk upstairs, you know like that.

Yeah, that little tiny short wall thing.

Yeah.

There was a fire in the.

Like, the whole thing was on fire.

And I'm just like.

And where was she?

She came downstairs after me.

But, you know, I didn't know if someone was down there or not.

So she didn't come right away.

So as soon as she heard me go, man, what the fuck?

She came downstairs.

So.

Okay, got it.

Yeah.

Things have not settled out in the witchcraft territory, but we learned a very valuable lesson about plates and heat.

Yeah, There you go.

Science.

Yeah.

Science project has been.

And let me tell you, cleaning up wax while it's hot is not fun.

It's got the worst experience.

Cleaning up wax while it's not hot is equally.

Is not fun.

There is no good way to clean up wax.

That's true.

Yeah.

Got you.

Okay.

Especially at 2 o'clock in the morning.

Yeah, that's.

I feel like once I put the fire out, it feels like one of those things that you wait until the next day.

So now we got some fire scars in the house.

Adds character, I guess.

Exactly.

You know, the imperfections make the home perfect.

Very restoration hardware of you.

Yeah, you know.

Yeah, I'm going with that for now.

That's all I got is hope.

We, we used to watch those, those Food Network channels where they would be baking cakes and when they would like not come out the way they would want and just be spread out all over the place.

That's a deconstructed so and so cake.

You're like, bro, I'm not going to lie, bro, none of my cakes ever come out good and I eat them anyway, you know what I mean?

Oh, you make cakes?

I bake a lot of cake.

Okay.

Look at you.

I didn't know you had that talent.

I'm a baker, bro.

Oh.

Oh, you bake cakes?

I bake cakes.

Got you.

Yeah, I'll leave that alone.

You should leave that alone.

Welcome back to the number one financial literacy podcast in the world.

Hopefully you're still locked in, tuned in.

Sitting next to me on my left, my partner in crime, Chris Nahibi.

If you didn't go here, I wasn't going to go to the intro, so I'm glad you did.

My partner in town, the one and only Saeed Omar, everybody.

Thank you, my man.

And sitting behind the ones and twos, back again, not on pto.

DJ Odun, Hello.

Are you going on PTO again soon?

Because we haven't had an announcement in a while and I just, I just feel like it's within two weeks.

It's gotta get after reoccurring or.

No, not reoccurring.

A crew accrue.

Even though it works.

That's a problem.

I just claim PTO and I still get paid somehow.

I don't know.

All right, well, unless you've been living under rock, you know that we had a little bit of an election coming up and as we are recording this, it is November 6th, the day before the FOMC announcement.

It is largely to believe, if you've been listening to the rhetoric, that it's largely believed that you're gonna get a 25 basis point rate cut tomorrow.

But you could be surprised.

Definitely gonna get it based on some of the data points we'll be talking about shortly.

Oh, old school.

Yeah, for a ruin.

Because he can't open up cans anymore.

He comes to the show with the can already popped.

No, I thought he was new caffeine at night anymore?

He's rocking the Celsius right now.

Are you really, bro?

The Celsius hype you up too much?

Yeah, you said four words last show, not two.

Yeah, the Celsius really gets you going.

You Said that it has something in it that there's no, like, caffeine blocker.

Yeah.

It basically blocks the normal response to caffeine.

And just, like, your body just takes in more.

More of the caffeine, so it doesn't have as much caffeine, but your body gets more of like, a.

You ever drank one and you feel like your body's, like, heating a little bit or tingly because of that.

Yeah.

You don't seem very sincere at all when you say.

Yeah, no, the caffeine doesn't have an impact on me anymore, man.

It's.

It's gotten bad.

Stop.

Oh, yeah.

I have a Celsius.

I mean, I can't drink Celsius.

I drink a lot of caffeine, though.

I can drink it all day long.

Yeah, exactly.

It doesn't have an effect on you anymore.

All right, so this is episode 245.

We're coming out of election, going into an FOMC meeting.

Lots of stuff going on.

So let's talk about where we're at.

Let's give a State of the Union, if you will.

Okay.

Let's explain why you're paying more for cars, why you're paying more for homes, and pretty much everything in between.

Yeah, but this is actually episode 255.

Just a correction.

245.

No, it's 255.

It's 255.

I think you're connecting this one.

Yeah.

Dyslexia.

I have dyslexia.

Okay.

Is it really?

I'm gonna let it go.

I didn't even catch that till you said something.

I've looked at this thing, like, 16 times.

I was so confused.

I was like, damn.

I know I don't watch episodes, but I.

You know, I once thought while I was editing the show, like, I'll put some nice effects, like when we say something like one of these fun facts that I put in there for you.

For you.

Yeah, right.

Like when sites has one of those, like, I'll have the words going behind him, like, all fancy, like, just swoop in, like, sexy.

Then I'm like, these fuckers are never.

Gonna see it, bro.

You know who does that a lot is Neil Brennan.

His podcast.

I don't know who that is.

Neil Brennan.

Come on, dog.

Is he the Kaline Wine mixer guy?

No, man, he was.

He was Dave Chappelle's, like, right hand on the Dave Chappelle Show.

He's a.

Why would I know that?

He's a.

He's an amazing comedian.

What are you talking about.

You know who he is, bro.

What are you talking about?

I have no idea who this guy is.

Yes, you do.

Oh, my God, he's a fantastic comic.

I mean, he's got big ears.

Oh, he's.

Yeah, he's.

He's one of big ears.

He's great.

Yeah.

What you got against figures anyways?

This is a financial literacy show.

American comedian and writer.

You have no idea who that is.

Pro.

Yeah, yeah.

Takes.

He gets a lot of credit for the Dave Chappelle Show.

Really?

Yeah.

Okay.

There you go.

All right, so let's jump into the Wall Street Journal, shall we?

Let's get right into it.

Shall we get into the good stuff, the moist stuff that you like.

The moist goody.

Good stuff.

Yeah, let's get into that.

Let's do it.

All right.

So immediately after the election kind of wore off on me a little bit, and last night, I decided to look back at a lot of the data, knowing that tomorrow is a big day.

The Fed is going to announce a rate cut, most likely at 25 basis points.

And because of that, I thought, okay, we had a pretty heavy pivot in the markets in response to the last Fed rate cut that went the other way from expectation.

Rates went, mortgage rates went up, the bond.

Treasury bond yield curves went up.

And I know what you're thinking.

People just had more confidence in the long end of the curve.

Ten years out, they were like, okay, I have more confidence in the future now that the rate cuts have had.

And the bond market reflected that.

But today, the day after the election ended on the 6th, November 6th, the market was resoundingly positive.

The stock market was banging out.

Right.

I mean, it was.

It was a good day.

If you invested in Tesla, you woke up to some profits.

You invested in the banking community.

The banking sector was up.

I mean, there was a lot of positivity in the markets today.

It was kind of stunning.

Yeah, that is an unusual response in a lot of ways, but it's also a good thing, and it's a good symbol for the economy going into a rate cut tomorrow.

I do expect there to be some optimism built into that as well.

Absolutely.

So it should be interesting to see how this all plays out, but there's.

A lot of negative news also.

You got to remember guys like us, and if you've been tuning into the show and we're reading what the predictions are, that they're baking in another 25 basis point cut tomorrow ahead of time, you gotta believe that that's already priced into whatever mortgage rates are.

So if you don't see mortgage rates come down, you gotta understand that's because it's already priced in.

I think that was the big mis, the misconception the last time around when we did get that rate cut and people were like, they thought mortgage rates come down.

That's not how it works.

That's not how they respond.

Yeah.

And I think you're not going to see mortgage rates go down, at least not in the near term anyway.

Yeah.

And not because of this.

Not because of this, but largely because, and here's the way I like to position with most people is the bond market, particularly the 10 year treasury bond, has the biggest influence on the 30 year mortgage that we all look at as, quote, the mortgage rate.

Right.

And as people get more and more confidence in the long term, bond yields return higher and higher percentages.

It pushes those yields up because people have more and more confidence that the long term is going to be healthy, it's going to be beneficial.

Right.

And as a result of that, it pushes mortgage rates up because it's the clear, closest proxy to mortgage rates, the 10 year Treasury.

So right now, as of today, it was over 4.4 and some change.

Yep.

The 10 year, that is wildly high in pretty big movement, not only in a single day, but over the course of the last couple months it was, it is, it is bumped up significantly.

And as a result of that, you've seen mortgage rates creep up pretty dramatically.

Right.

So if you're one of those people that are really trying to track mortgage rates, that's the figure that you want to, you know, stay locked in on the ten year treasury because mortgage rates tend to be somewhere between 2 to 3% higher than whatever the 10 year comes in at.

So if you're looking at 4.4%, I mean you're looking at either a 6.4% or maybe 7.4%.

And I've seen rates in and around those ranges.

So that.

Look at you.

I mean, that's what we do, man.

Ranges of details and everything.

Welcome.

I didn't know better, I'd say you were financially literate.

Green jacket on the way.

Green jacket, let's go.

Not the golfing one.

No, I wish.

Job growth slowed sharply last month with workers sidelined by hurricane effects and the continuing Boeing strike.

Both of these things.

By the way, site has some fun facts for you on the impact of how these things can actually affect you.

The Labor Department on Friday reported that the economy added a seasonally adjusted 12,000 jobs in October versus a September gain of 223,000.

That's a pretty big drop.

That's a wild swing, man.

Yeah, that's from like, hundreds of Thousands down to 12,000.

Yeah.

And don't forget the Bureau of Labor Statistics came out a couple months ago and said, you know, we kind of overestimated jobs over the course of this last year by 800,000.

And they also came out recently and said that they overestimated jobs in August and September by 112,000.

So this is a huge swing.

And just for, like, you know, a baseline number, you know, they expected 100,000 jobs to be added, and that is, generally speaking, the amount of jobs that should be added every month just to keep up with population growth.

Yep.

Right.

So to be at.

At a number like 12,000, this the lowest report in four years.

Right.

I mean, that's a wild figure.

Yeah.

And it's.

In my mind, it's about as close to a real time.

So the number of jobs added to me is as close as a real time proxy to unemployment percentages as you can get.

And to give you a good example of this in a different way to me, mortgage applications, the number of people applying for mortgages is the greatest proxy for home values and where they're likely to go.

Right, right.

So if you see a huge slowdown in mortgage applications, you know, the home values are probably going to go down over time because there's not a lot of people buying.

Yeah, right.

This is the same thing.

If there's not a lot of jobs being added, then unemployment's probably going to go up because there's just not a lot of new jobs.

Yeah.

And if you're sitting there and you're one of the, you know, many, many people that are confused because you're reading all these different headlines, you're not crazy.

Oh, you're crazy.

You listen to this show.

You can't be normal.

Yeah, you definitely not normal.

But, you know, we, like, we, like, you're kind of not normal.

You know, speaking of not normal.

And we have to get back to the show, obviously, but you ever listen to somebody else's financial literacy podcast, like, anybody else's.

Not a.

Not a podcast.

I've seen, like, I've.

I've said on the show, I like Humphrey Yang stuff.

Yeah.

But none of her.

Yeah, none of them are like, financial.

Literacy podcasts, and they're not really fun.

No, they're.

Even Humphrey Yang is, like, a little serious.

He's a little serious, but he's got some, like, I don't know, some.

Anecdotal jokes that he slides in here very rarely.

And they're very dry humor.

They're very.

Yeah, you don't get.

You don't get.

Get this anywhere else, dude.

And like, Mark Zandy's podcast, Moody's.

Moody's a big brand.

Good podcast, Terrible show.

Yeah, I've checked out a couple of the earn your leisure stuff just because a lot of people pimped them out.

Yeah.

I'll be honest.

Not a fan.

Not a fan, right?

Not honestly.

They.

They got all these different segments.

And I'm tuning in.

I'm like, okay, where's the value?

I'm looking to see what's the value, what's the draw?

And a lot of times they're literally just pimping out the sponsorships.

Oh, we got a review that referenced that.

And yeah.

So somebody once asked me, like, why don't you guys have, like, more financially related sponsors or pimp out more financial stuff?

And I thought to myself, because it devalues the message.

Yeah, we're like, hey, man, home values only go up for the next five years by now.

But by now, use my.

Use my Realtor network like Dave Ramsey.

Right.

You just devalue everything that you're doing.

Ironically.

It's working well for him.

So maybe I'm wrong, but.

Yeah, I mean, yeah, for his first, pockets is working well, but I mean.

You can't trust the goddamn thing he says.

You really shouldn't be trusting a lot of the stuff that he's saying because it's also a lot of what he's.

Saying is not practical and it's self interested.

He has a reason to do it.

Right.

Well, let's get back to Wall Street Journal.

Yeah.

Yeah.

So if you're hearing some of these headlines and these figures and you're wondering, like, wait a minute, am I crazy?

They're saying that the economy's strong, unemployment rate at 4.1% is, you know, extremely low when compared to historical numbers.

Right.

But then if it's so strong, we just added only 12,000 jobs.

And if it's so strong, why do we need to cut?

Why does the Fed feel like they need to cut rates?

Yeah, because it's not so strong.

And we'll get into a lot of reasons why as we go through the show tonight.

But there's a lot of challenges.

And like we told you during the port strike.

Let's go.

I mean, you've already kind of commented on the rest of the Wall Street Journal article, so let's forego the foreplay get right into the fun stuff.

Fun fact, the hurricane impact here.

The Bureau of Labor Statistics estimates that each 0.1% increase in unemployment following a natural disaster translates to roughly 125,000 fewer jobs in the affected areas.

Holy cow.

That's a lot of jobs in the areas.

This could, to contextualize this right?

In the recent slowdown is what you got.

Now that could be a huge play into why October was the way that it was.

But you're also talking nationally and these hurricanes were only in one particular area.

So if I'm looking at this, I'm thinking to myself, okay, this in and of itself does not justify the employment change.

Right.

So yeah, sure, the natural disaster was an impact here, but in and of itself that that's only 125,000 fewer jobs.

Even in a worst case event scenario, that's only half of what they were supposed to be.

It's still short of the estimates into 12,000.

You got a bigger problem nationally.

Yeah.

National disasters and unemployment.

According to FEMA, natural disasters have cost the U.S.

approximately $150 billion annually over the past five years, indirectly affecting job growth as businesses temporarily shut down and recover.

Yeah, man.

So all these things that, that are kind of the long term effects of some of these weather disasters that we just don't think about are going to have long lasting impacts on some of the economic decisions that the people that we have in place to make them are making.

Oh, man.

I mean, me personally, right.

So underwriter by trade, I'm looking at insurance policies that, you know, some, some people are holding and there's something called an AM Best rating for insurance policies.

Right.

Basically rates the insurance company and basically it's a grade level that they get to see how strong they are.

Right.

So what I'm seeing now lately is a lot of them are getting downgraded.

Okay.

And they're being downgraded for the, for the main reason is too many policyholders.

Yeah.

It's like you have too many people that you might need to service.

So shit could go bad for you really south or really bad as an insurance company.

Right.

And you're like, man, so they're getting punished for, you know, getting too many clients, too many customers.

Yeah, man.

Politically, some of the regulation and some of the reviews of independent companies, it's just, it's taxing.

If you're a consumer, you're trying to like figure out who to trust and believe from a company perspective.

It's hard.

Yeah.

Like some of these rating agencies, you're going like okay, wait a minute.

You're saying they have more risk of loss, but they're an insurance company, so they're supposed to have risk of loss.

So if they've grown in scale, then they have greater risk of loss because they have more clients.

Yeah.

Shouldn't they be a bigger, stronger company as a result of that?

Exactly.

But someone looks at radiation, she goes, oh, they're B minus.

No, I don't like them.

Yeah, yeah, that's exactly what I mean.

You know what I mean?

Like, there's no logic behind it.

You're just like, okay, all right, sure, I'll pass.

Yeah, yeah.

Another fun fact, the strike impact.

We talked a lot about this on a previous show.

Well, Boeing strike alone is estimated to shave off $1.6 billion from Q4 GDP, showing how labor disruptions can have a ripple effect on the broader economic metrics beyond just job count.

So all these things that we see in the news, like, oh, my God, they're going to strike.

They're going to strike.

The poor strike.

There are long lasting real impacts to gdp.

Natural disasters, long lasting, real impacts.

The jobs in all this data, jobs and gdp, or what the Fed and other people look at when they go, is the economy healthy?

Yeah.

Is it healthy?

So I bring all this up as kind of a beginning stage to contextualize that we're getting a lot of inputs that seem to suggest that the needle is going to be moving the wrong way.

Okay.

Right, right.

And if you look at the jobs report, this was really good if you wanted a rate cut.

Right.

Because this is the last big jobs number to come out before tomorrow's decision.

Solidifies the fact that they will be cutting rates.

Yeah.

At least that's the market perception.

I mean, they could come out and be like, you know what?

We don't need this thug life.

Yeah, fuck y'all.

Yeah, y'all can stay home, talk amongst yourselves, but you would not get in 25 basis points.

That could very well happen, I don't think.

I think I'm pretty much 100% they're going to give us.

Yeah.

Predictions are at 99%.

But what was really interesting is predictions also came out for the December meeting.

That's coming out.

Right.

So I haven't checked.

Before the jobs report came out, there was a 74% chance that they will also be cutting again in December.

Okay.

After the jobs report, it's like north of like 80%.

So it increased because this is just, you know, fueling the fire.

Like, yeah, you're right.

We need to we need.

We need to get in front of this before it gets really bad.

And if you're taking what the FOMC Telegraph, it's really 25 basis points in November.

25 basis points in December would probably be your.

Your approximation of what they said they were going to do.

Yeah, yeah.

It probably just a little bit more than what they actually said because they did that.

50 basis points to start off with.

Yeah, yeah, yeah, yeah.

It came out hard.

Arun, if you could scroll down a little bit and give me a little bit of coco.

Sexy.

Yeah.

Car buyers, man.

I saw a Tesla that was offering zero percent interest and I thought I could send this to you and really ruin your day because that wasn't around when you were looking for a car.

And then I was like, you know what?

No, I'm gonna be a better human.

I test drove the Model Y, man.

I wasn't a fan.

Wow.

I know.

I.

I know.

I just upset a lot of people who have Model Y's.

Wow.

Why.

Why are you such a terrible, terrible human being?

Okay.

You know that.

What is it called?

The degenerative braking system?

Regenerative.

Oh, sorry.

Regenerative braking.

Your degenerate.

I'm a degenerate regenerator.

Okay.

Yeah, the degenerates driving the Teslas.

No, I'm just kidding.

Regenerative braking system that it has.

They didn't tell me if you could turn that on or off.

Right.

Yeah, you can.

Okay.

So that guy did.

I asked him.

He said no.

Right.

So just a little toggle switch.

That was my main reason.

Why?

Because it made me motion sickness to drive it.

What's.

Cause you don't how to drive it yet.

You have to figure out how to like.

Nah, man.

No.

And.

And Adam gets motion sickness from that stuff, so I couldn't even.

I didn't even want to mess around with it.

So we ended up getting the Volkswagen.

Why wouldn't you ask me?

I have a Tesla.

No, but maybe it was only available.

You know how they were weird, bro.

They do something for the X, but not for the Y.

The X is the premium version.

It has all the things.

Yeah, so you have the X.

That's the premium.

So you get it.

Maybe the Y doesn't get it.

Are you sure that you would know if you run.

Help me out here.

Are you sure that the Y has it?

What?

That has a what?

The regenerative breaking.

Yeah, yeah.

No, no.

I want to be able to turn it off.

Yes.

How do you know?

How do you know?

Driven one.

Which one?

I Test drove one.

Why.

Why would you drive one when you had the Jeep and you have the Rivian?

I'm shenanigans.

No, no.

I was contemplating, you know, maybe a Model Y.

If it had enough room and it was big enough.

It was pretty small.

It's tight.

It's tight like a tiger.

And then.

But I also wanted to experience what it was like to not have a screen in front of me because they have that center screen, not because the Model X is a screen in front of you.

Honestly, the.

The one screen thing with zero buttons at all.

It's like, it's very frustrating.

I feel like I'm.

I'm like.

I don't like it personally.

I don't like.

I need a handful of buttons.

That's part of the reason why I like the Rivian truck is that it has like all the screens.

Rivian truck looks far superior.

Mine's covered in bird poop at the moment.

So.

Yeah.

All right.

So even some high income Americans can't afford new cars anymore.

High income Americans.

I started reading these numbers and I put in a lot of, as Arun would say, copy here because this was pretty damn scary stuff.

Yeah, okay.

You gotta hear.

I was gonna say.

Yeah, you're gonna steal some more thunder.

I don't wanna.

I don't wanna steal any thunder because when we talk about these topics, read the show notes.

We've been.

We've been discussing these topics.

And it's good because you can always like, go back and compare to what we said.

And it's.

And it's true.

Man, these prices are going up.

Car buyers across America, even those with comfortable incomes like Levine, I don't know who that is.

I think it was just an example from the earlier article.

But he had a douchebag name, so you gotta, gotta include him, right?

What?

Adam Levine, bro.

No last name.

Okay.

First name.

Not okay.

Okay, Right.

Oh, yeah.

Levine was the first name you're saying and not okay.

Yeah.

Like Adam Smith.

Fine.

Smith Adam.

No, you're weird.

So I got three first names.

What do you got to say now?

Am I back over to the cool side?

Yeah, your question.

I've now lapped you.

Whatever.

Anyway, they're dropping out of the new car market.

The pandemic supply shortages that drove sticker prices skyward are in the rearview mirror.

But the cost of a new set of wheels continues to climb.

The average price of a new car this year is $48,205 up.

You ready?

21% from five years ago, according to researcher Cox Automotive Inc.

And growing frustration over auto affordability is yet another kitchen table economy concern that's bound to be running through the minds of American voters as they head to the polls yesterday.

I mean, this plays right into what I wanted to get into.

So if you compare wage growth to what it was five years ago didn't keep up.

Wage growth only grew 18% in the last five years.

Oh, I heard a debate literally this morning about guys, very wealthy guys, saying, oh, wage growth's catching up.

It's not a big deal.

This is on cnbc, by the way.

Come on.

Live show out of tune.

And they were like, oh, it's not that bad.

You know, wage growth's catching back up.

Wages are totally, you know, they're.

They're roaring and ready to go.

And I'm like, you two rich assholes have no idea what you're talking about.

Zero.

Absolutely right.

So the reported rate of inflation that's grown in the last five years, reported figure, all in the average figure is 23%.

But we know necessary things like groceries.

Come on, bro.

Way higher than 23%.

We're talking 40, 50%.

Housing.

Don't get me started with rent.

Housing everywhere.

What about just.

Just car insurance?

Car.

It's ridiculous.

Car insurance is way above 50%.

And these are things that we all need to pay.

So the overall, the overall average, you know, reported rate of inflation over the last five years being 23% and the wage growth only being 18%.

That's not even painting an accurate picture.

But it's still showing that it's far below.

It has not kept up with everything.

But like we like to say on the show, why you need to be financially.

Literally literate.

Right?

Literally.

Yeah, literally.

I'm not going to go is that the s and P500 over the course of the last five years has grown 91%.

It only matters if you've cashed out of it.

It does only matter.

But the whole point of it is to stay in it long term, right?

It's like you can't time the market, but you can control how much time you've been in the market, bro.

Gems.

You were.

You were dying, bro.

Hey, you're welcome.

Remind me.

I make a reel out of it.

The glasses drop down.

Come on.

Little Snoop Dogg reference.

Or you can just make it very cheesy.

I mean, it was kind of cheesy in and of itself.

I don't need to add much.

The problem is I wasn't even trying.

It just.

It came out naturally.

No, I didn't I swear to God, you would practice that at least six times in front of the mirror.

I swear I did that half ass smile.

But so wait, I want to get into a.

We had a question from a listener.

But I want to do it after this.

We do it after this.

Yeah.

Okay.

We also talk about how you got me into a Twitter war today.

Me personally.

Oh, you did?

Yeah.

I'm not on Twitter.

I know.

That's how pervasive your perspective is.

You're not on Twitter either.

You're on X.

I'm on X.

Yeah.

Okay.

I'm on Twitter.

X.

Whatever it was.

Someone called me out for some shit.

You said.

What did I do?

Bro, you got me in a whole lot and I'm like, defending it.

You're defending me?

Yeah.

I'll give you.

I'll give you just a hint.

Yeah.

I was like, okay.

Paper hands.

Oh.

Because I said diamond hands.

Yeah.

You got me in all sorts of trouble.

All right, so back to the Bloomberg Business Week article.

Sticker shock is increasingly scaring off many would be buyers.

A recent survey by the automotive research Edmonds.com found that almost half of American car shoppers expect to pay $35,000 or less for a new car.

Talk about out of touch.

That makes sense because the average trade in is six years old, which means those buyers last purchased a new car back when the average price was in the mid-30s.

When they returned to the showroom and discover that they'll have to pay almost $50,000, they're walking away.

The Edmonds survey found that 73% of consumers are holding off on buying a new car because of the cost.

Yeah.

And you're not doing yourself any favors if you're going and just getting regular financing through, you know, their financing department rates are somewhere between, you know, 6, 7, 8%.

Right.

Or I mean, unless you're getting a deal like at Tesla.

Right.

Or I've always recommended, like, if you're going to finance your car, which I mean, all good.

Right.

All.

If you go to a credit union.

If you belong to a credit union, great.

You might have some opportunities.

But you.

To shop around for best.

Do not go to the dealership for the best pricing unless they're offering like 0% or 1% financing, in which case you might not be able to beat that.

Yeah, exactly.

And that's what.

That's exactly what I did at the time.

Except you could have had zero percent.

I do have zero percent right now on a Tesla.

Yeah.

The only benefit there is the longer range.

I only get 200 miles.

Look, if you're.

If you're happy going less distance than me, that's okay.

I don't care.

I get there, though.

That's also fine.

I get there.

I'm happy just because I get there.

I mean, I'm sure you're happy, but not everybody is fulfilled with the range that you have.

But honest, I'm fulfilled.

I care about my range.

That's okay.

You're a smaller man than me, if that makes.

Why do you gotta go there?

Distance wise?

Distance?

I have 420 miles of range.

How much range do you have?

Yeah, we're talking about car range, right?

Yeah.

Yeah, right.

How long do you go?

200 miles.

It lasts.

Lasts me a long time because I don't drive very far.

I bet it feels like a long time.

Monthly payments on new car loans now average $767, up 17% from just four years ago, according to Cox.

I feel like I just got a heart attack here in that number.

700.

Yes.

A lot, dude.

And one in six new car buyers this year will take on payments of more than $1,000 a month.

Edmund says blame it on ballooning sticker prices resulting from more technology, automakers quest for better profit margins, and, of course, skyrocketing auto loan rates.

Yeah, there's three fun facts here.

Arun, you want to read something tonight?

You want it?

You want to get involved?

No?

Let's see where the energy.

Let's see where the energy levels are at.

Show us how it's done.

Arun, go for it.

We'll wait.

Come on.

Yeah.

Yeah.

We're going to do this.

All right, let's do it.

Let's make sure I can say all the words.

All right, Cool.

No big words.

Make sure there's no jargon in there.

All right, fun fact.

New versus used price gap.

Let's go.

All right.

Talking out.

Go for it.

Come on, bro.

Come on.

Come on.

You got this.

I tapped.

Oh, he tapped.

All right.

Price gap between new and used vehicles has reached a record 30%, pushing more budget conscious buyers toward the used market.

Five years ago, this gap was closer to 15%.

Damn.

Yeah, another one.

I got all the fun facts.

I like the fun facts.

I think they add value.

No, let me go.

Interest rate in loan terms.

To cope with high prices, buyers are stretching their car loan terms longer than ever.

Over 42% of new car loans now extend to 72 months or more, which can lead to paying for more in interest over time and increase the risk of being upside down on loans.

So basically, what that means is, are you like, how long of a loan are you getting?

We typically recommend somewhere ideally, you know, nothing more than four years.

Right.

And five is definitely okay.

But if you can, if you can try to get it to four, that way you, you're never really upside down.

And then when you do sell the car or another thing that you could do is you could always go five.

And then if you could put more down towards principal every month, just do that and you'll pay.

You know what I've done, You'll pay it off sooner.

And I know this is terrible to say because it sounds elitist, but I'll get a 72 month car payment.

Right.

I'll finance it, get a 17 month car payment, have it as a trade line, and then I'll pay it off early, after like a year.

Why do you do it that way?

I like to just make sure I got trade lines that are building credit and keeping credit constant over time.

Yeah.

Because that's the thing, right.

With car loans, that's a really good way to boost your credit.

Yeah.

So I, I have.

So one of the challenges I have with my credit is that I've got a lot of different trade lines because I have a lot of mortgages and not all my mortgages are commercial.

So they do show up on my personal credit report.

Well, explain to people what do you mean by trade lines.

Oh, damn it.

I was about to stop.

Well, you contributed so well here.

Reading earlier.

You gotta just jump in, bro.

You gotta get in where you fit in.

Is this your first podcast?

It's funny because normally you do that to me when I read and now you're doing it to you because you read.

It was my first time watching next episode.

I hope we went smooth and slow for your first time.

We're going to, we're going to, we're going to give it another shot later at the end of this episode.

If you had a little bit longer range, you probably could have, you know, enjoyed it.

Oh, back to the range.

So each item on your credit report is a trade line.

If you have a credit card, that then the history of that performance on that credit card when you open it, how long you've had it, how you paid it over time.

Have you always paid on time?

That's a trade line.

The more of those you have, the old school methodology was like, oh my God.

The more trade lines you have that are paid as agreed, the better.

Not necessarily.

The algorithm takes into account things like how much available credit do you have to you versus how much have you utilized?

If you've got $100,000, you can utilize, but you're using all $100,000, that's not good.

Yeah.

If you're using only, you know, $2,000 of $100,000, that's also okay as long as you're using it and paying it off consistently.

Yes.

So it really comes down to a bunch of different factors.

One of the factors that I know is that I've got a lot of long term installment loans.

Cause I got like I think seven mortgages on my personal credit report.

Installment loans, meaning it's a loan that will get paid off over time.

Over time versus a revolving line or a charge account.

Yeah.

Right.

So think of, you want a good healthy mix of different types of credits.

You want revolving ones like credit cards, you want installment loans like homes and car loans.

Yes.

What I try to tell people is, and there's student loans in there as well, but they don't in my mind impact things as well.

If you have just credit cards because you haven't bought a home and your credit score is kind of like, ah, you know, it's very like for example, if you have like somebody look into your credit and your credit score drops pretty dramatically because you had an inquiry into your credit, it's because you don't have something like an installment loan anchoring it.

So what I tell people is little hack that I do, go get a car loan or get a car loan.

If you're looking to buy a car, even if you can pay it off in cash, just because having that installment line even there for a little bit of time will help anchor your credit with the performance of that installment loan as opposed to just the revolving debt.

Absolutely.

So I've just found that works better from our algorithmic standpoint.

But you know, everybody's got their own way, right.

And another thing to keep in mind too is I don't know if there's a real general rule of thumb, but my own rule of thumb for myself and my wife are no more than three credit cards.

Right.

And actually we only, I only have two.

Because if you do get, if you do have more, right.

Let's just say you have your, the one you have with your bank and you're still, you still have my college credit card.

And then you, let's say you open up like a Nordstrom card or a Macy's card or something and then you have it for a while and you're like, oh, I'm not really using it anymore, whatever.

And you close it down.

Well, you closing it down is now decreasing your total credit available.

So it actually hurts your credit to close it down.

So keep that in mind too, when you're closing down accounts.

Yeah, I had a.

One more fun fact which I thought was kind of interesting that I had a funny story about me being a total douchebag.

And I know how much you like those.

Arun loves them because he gets make fun of me for an hour.

Right.

So, you know, you drive by car dealerships and used to see the lots, like, jam packed.

Oh, yeah.

And even though car prices are what they are, like, I don't see them as jam packed as it wants to.

Like, they don't have as many cars in the lot.

Right, okay.

Well, I looked up the data here.

Due to the supply shortages and increased demand for used cars, dealerships report that 25% fewer cars.

Used cars are now available on the market compared to pre pandemic levels, squeezing affordability further.

So because people are holding onto their car and not trading it in because the cost of a new car is so expensive, there's less used cars on the lot to buy.

Kind of a snowball effect of cost.

Oh, yeah.

I mean, and I mean, just another case for me personally is when I traded in my Jeep recently.

Right.

When you, when you're trading in your car, you want to get the Kelley Blue Book value.

I also got, I got a carfax.

So you get a general idea for what the value of your car is.

Even though I feel like the value of my car was way higher given.

I mean, everyone naturally thinks that because they think their car is the best kind of like your home.

But I didn't get any, any like, credit towards, like, you know, some of the upgrades that I had, like the running boards, the bigger wheels, all that.

None of that stuff.

Right.

But I think the value came in.

It was supposed to be like somewhere.

27,000.

Okay.

That was Kelly Blue Book.

So I'm like, all right, cool.

Like, I'll take it to CarMax.

And everyone says that they're good or Carvana, and I'll go with whatever.

Whichever's the better of the two, bro.

I'm like, I'll walk away.

I had a number set in my head.

I'll.

Even if they only offer me like 22, 23, I'll probably take it.

17,000 is what they offered me, right?

And I'm like, oh, that's how bad they're hurting.

They know that the used market is.

Is hurting so bad right now, they gotta go that much Lower.

Just to, you know, make an extra couple bucks on my car.

I don't want to say I sold mine for 16.

5.

And it was an older model.

Yeah, I know.

No, no.

But then I.

I ended up trading mine.

I ended up with the vault.

I got them to go up all the way to 20.

Okay.

There you go.

Yeah, fair enough.

Yeah.

So fuck you very much.

Yeah, fuck you, too.

We've had this discussion, Chris.

Oh, I know, I know.

On the show.

Yeah.

Really?

Yeah.

How do you know?

You don't listen to show.

I'm here.

He's listening.

Yeah, he listens to it twice, bro.

Here.

And when he's at home editing, he.

Doesn'T really listen to.

While he's here, he has his.

Like, he's usually watching some kind of sports back there.

It's called porn.

It's called porn, bro.

We both know you're not watching porn.

I've checked your testosterone levels for you.

Normally, it'd be a great plug for Transcend.

He doesn't sponsor us anymore.

All right, so I actually got a question from a listener.

Yeah.

Shout out to Mr.

John King.

John.

Yeah.

He said, hi, sight.

I love the show.

You all are doing great work.

Thanks, man.

Lord's work.

Yeah, yeah, exactly.

That's.

He includes you, too.

Odun.

He didn't.

He did.

He said.

He said you all.

Yeah, you.

Me.

No, you all.

You don't say you all for two people, you all for three.

All right, fine.

Can you guys talk more about when you think a good time to start investing again would be.

You mentioned the stock market being overvalued.

I've paused my contributions to my investment accounts in favor of high yield savings.

I'd like to get back into the market, but am unsure of a good time.

I don't want to start right now.

If the market is overvalued and expect it to crash in the near future.

I wouldn't say crash.

I haven't seen any data that suggests a crash in both the housing and the stock market markets.

Yeah, clearly they're both overvalued.

Not going to say a correction isn't due.

And just to be clear here, whenever you say crash, you're typically talking about a correction of 20% or more.

Anything less than that is quote correction.

So that vernacular is very important because it means something.

I don't know.

Would I like to see a crash in either market?

Yeah, I think there's.

There's reason why both would be valuable.

Yeah.

But there's nothing that I can see on the horizon.

Not to say that we're, you know, predicting anything, but nothing I can see yet on the horizon which would lead us to a market crash.

Do I say stop investing?

No, I think you can't invest in companies that may or may not be overvalued or if there's a question that they may, for example.

But there are some staples which are not overvalued.

Non tech companies outside of the Mag 7, if you think that their performance is going to increase or improve.

Look, I'll give you a great example.

I think Rivian's got a lot of like legs.

It's a good stock.

They're not overvalued in the market.

They're still a fledgling kind of a new darling company.

They got upside.

I think what DAR is doing over at Uber is going to continue to progress over time.

And as much as Tesla might be part of the Mag 7 and they were up a pretty healthy amount today, I think that what Elon Musk is doing with Tesla, with SpaceX, I think there are some pretty heavy impacts to the population.

If you got that this whole self driving, autonomous driving thing really going with the cabs that he's, you know, promoted and.

Yeah.

And that you're charging.

You're talking about changing human behaviors.

Yeah.

So I think there's, there's still a lot of upside in the market.

You just gotta be more strategic with where you put your money.

I would not put, personally put money in funds right now, really.

I would invest in, I would invest in companies that I believe in outside of your 401k your retirement.

If you're going into your 401k your retirement, put it into a fund, ride it over time, you got a long game to play.

But for me, if I were investing money into the stock market right now and I worried about a correction of any way, shape or form, I would go into companies that I believe in and be willing to take the loss if I'm wrong.

Yeah.

So for me personally, I fully adopt the whole dollar cost averaging.

And then nothing makes this point more true than this study right here.

Right.

We've talked about on the show before.

According to Fidelity, assuming someone had invested $10,000 in the S P 500 index in January of 1980 to December of 2022, we're talking 42 years.

Right.

If they invested in all the days and they never stopped investing, they never pulled their money out.

Right.

Not saying that, you know, this individual pulled their money out.

He just said he stopped his contributions.

But the point here is that if you invested all your money the entire time.

It's.

It would have been over a million dollars in value at $10,000.

Yeah.

If you miss the best five days over the course of those 42 years.

So the market has days that it does really, really well.

Right.

The five best days out of that 42 year stretch, you're down to $671,000.

From a million to 671.

The whole point is, yes, you might be.

When your dollar cost averaging, you might go through days that.

So you're telling everybody to put, put it in and stay in.

Put it in, stay in.

To dock.

To dock.

Exactly.

Dock your dollars.

Dock your dollars is a very good T shirt.

Dock your dollars is an amazing T shirt.

A doc cost averaging.

Doc your dollars.

There's nothing.

There's nothing we haven't created something better than this.

Everybody in Utah is going to buy this.

Everybody at BYU is going to buy this.

We should just go to BYU and doc your dollars.

Come on dog, let's put it in and leave it there.

Yeah.

So like just think about that.

Right?

So you again, back to my corny and cheesy saying, right?

You can't time the market.

It's about how much time you're in the market.

Damn, I'm good.

Unless you've got, you know, shorter range.

Right?

Unless you got shorter range.

Just to bring this full circle, let me tell you the rest of this stat is if you missed the best 10 days out of that 42 year stretch, you'd have 40, 483, 000.

If you missed the best 30 days, 173, 000.

If you miss the best 50 days.

76, 000.

50 days, dog, come on.

You're down to 76,000.

That's 93% less.

Hey man, sometimes those days matter.

So.

Yeah.

So if you're thinking about yourself long term and investing, I get the idea it's overvalued, but it will correct itself eventually.

And you don't want to miss out on that one day where you could really be making all your gains, bro.

It's all about the gains, bro.

This show went off the rails a long time ago.

Why are we doing this still?

Arun, are you interested at all what we're saying anymore or is it just all like b.

We're trying to keep it fun.

Oh, I'm.

I'm in it.

Are you in it?

Yeah.

You docking it?

Yep.

You're saying this, bro.

I just said we got it.

We got to hit a Hannah, bro.

That dock Your dollars.

I can't.

Dude, she's religious.

I can't be like Hannah.

Look, she is.

Oh, we can't do that.

She's very religious.

Oh, I didn't know.

We can't do.

Can you explain what doc your dollars means, Chris?

So I can.

I just need you to have graphics boat that gets docked.

Boats and hoes.

Boats.

Yeah, exactly.

Boats and hose.

Oh, man, doctor, you're a terrible human being.

All right.

Well, it isn't just cars that are having problems.

Well, home affordability and the inability for most people to buy a home, particularly first time home buyers, is having some ramifications to the demographic of home buyers out there.

This, according to CNBC, make it the average age of US home buyers has jumped to 56.

Homes are wildly unaffordable for young people, real estate experts say.

You don't have to be a real estate expert to know that the age for first time home buyers, don't worry.

Is less, but not as low as you might hope or thought that it was.

The average age of homebuyers in the US has risen by six years since July of 2023, another sign that younger Americans are being priced out of the market due to escalating home ownership costs.

The average age of homebuyers is now 56, up from 49 in 2023, according to the national association of Realtors annual State of the Market report released on Monday.

That is a historic high up from the average age in the low to mid-40s in the early 2010s.

The median age for first time homebuyers also rose from 35 to 38, while the share of first time buyers dropped from 32% to 24% of all buyers for the year ending July 2024.

That marks the lowest percentage since the national association of Realtors started tracking the metric in 1981.

Baby, dude, there.

This is a problem, a much bigger discussion to be had here, right?

How many people do, you know, don't even begin to start to try and, you know, grow their families until they get into their first home right there?

Well, there's a lot of people who just aren't having kids right now.

They aren't having kids right now just given, you know, what's going on, you know, in the, in the market and job instability.

It's not just this though.

Like everybody wants to be younger longer.

That too.

But for me personally, I can speak for myself.

I did not want to start my family right, growing my family until we had our first home.

Right.

Not to Say there's anything wrong with it.

I just wanted.

I just wanted that stability.

I didn't want to even think about having to move, you know what I mean?

And all that.

Like, if you're, if how many people are waiting to start now that they're.

I actually have a cousin too, that recently.

You got like a lot of cousins, though.

That's a problem.

What do you mean I got cousins?

You got cousins on cousins.

You got too many cousins?

Yeah, too many.

Just pick three.

You don't have too many cousins?

No, I don't have cousins like that.

Come on.

I call you my cousin.

No, you don't.

Come on, cuz.

You call me your daddy, but yeah, that mean.

And then family sizes are going to be shrinking because of this too.

Oh, it's already happening.

I mean, we're gonna get to the point now where if you're 38 years old and you're buying your first home, you're, I mean, in essence, 15 years behind what was traditionally thought as the age you would move out and buy a home or, you know, get situated.

Even if you bought a home at 30, let's say on average, 30 is a good age.

Eight years later, you're buying.

I mean, it's just, it's getting to the point where it's going to have huge ramifications for people's financial futures because the number one source of wealth for most Americans is the equity they build up in their home over time.

That's what it has been up until now.

That's going to have to change.

Yeah.

So fun fact.

Your shit talking on cryptocurrency has led to people thinking that I am a crypto hater on X.

And because of your shit talking on cryptocurrency, people like poking the bear at me.

Why?

We didn't.

You didn't even make a reel about this.

No, I didn't.

But people who listen to the show.

There's a lot of people listen to the show.

We get a lot of streams now.

And you know, they're like, certain people do like crypto, as do I.

They just don't realize that you're a terrible human being.

So what do they do?

They like post screenshots.

Oh, Bitcoin's above 75,000 now.

What's going on?

Paper hands?

And I'm like, bro, that's not me, that's my co host site.

How much of your portfolio is invested in crypto?

None.

But that's the point.

I cashed out because I do have paper hands.

Paper hands.

You got scared.

I got, like, one half.

One ethereum coin left.

You held out the ethereum, not Bitcoin.

Huh?

I sold out of everything.

I really don't.

The only reason I have ethereum is I just didn't.

I didn't pull the trigger on, like, the last increment.

I just.

Not to say that I don't believe in crypto.

I just.

I don't have an investment strategy around it, and I'm not going to hold it for.

I have family.

I have family.

I got cousins that are.

We know a lot of that are.

Into crypto, and I'm going to say I'm.

A part of me wants it to be the greatest rug pull in the history of.

See, don't.

I'm not associated with this message.

A part of.

No, I kind of want to see it.

I have no association with.

You don't want to see it.

I don't have any.

No part of you.

I want to see that Netflix documentary.

No desire to see this.

I want to see that Netflix documentary.

On satoshi or the rug pool.

The rug pool.

I honestly, like.

This is.

This is terrible.

Okay.

This is sarcasm.

For those listening who want to come at me in the DMs or on Twitter or XK, I would love for.

First of all, there's a guy on social media was coming out, Indian guy who had, like, a very heavy accent, who was like, I am Satoshi.

And people were like, what?

Yeah.

Like, he had.

He clearly couldn't have been.

I would love for Satoshi to be, like, a government.

It's like Russia.

Yeah.

It's like Putin.

Yeah.

Like, I would just love for it to be so asinine who it actually is, that it totally devalues everybody's faith in it.

Yeah, exactly.

Right?

That's the only way, right.

We got here.

This is a guy.

Yeah.

Hunt for Bitcoin's exclusive elusive creators.

Nakamoto hits another dead end.

This Indian guy.

Look at this pose.

Has a cell phone in his left hand because you have to.

Because you're a tech guy, gangster.

But you got, like, the.

The weird print.

It looks like he's wearing pajamas, bro.

Yeah, he's got, like, a jacket on.

Looks like he has a walker in front of him.

He does look like he has a walker.

No, that's just a chair.

It's one of those fancy chairs that has, like, the chrome.

Oh, it's got on both sides.

He does have a microphone in his car.

Why is he leaning like that with a gangster lean?

The groin microphone.

It Makes me feel like he is a part of crypto.

No, I think he's trying to do like, I am mysterious.

I am the most interesting man in the world.

I have a beard.

There's also.

At the same time, there's a Netflix documentary that came out which attempts to expose a little bit more.

I've actually been waiting for the right time to watch the documentary, but I hear good things about it.

Although it's still inconclusive as to who Satoshi actually is, but I would love for it to be.

I am Putin.

It's me.

Your coin is my coin.

Is it out there in the open with how many bitcoins Satoshi owns?

Yeah, it's on the blockchain.

So how many?

Look, you're talking shit about products you don't understand, bro.

Wait, how much?

How much?

Oh, dude, you gotta look this up.

How much does he have?

I think right now.

How much does she have?

Why are we giving?

Yeah, it could be the individual who identifies themselves as Satoshi.

Yes.

1.1 million Bitcoin tokens is referred to as the Genesis block.

Estimated estimates suggest that Nakamoto owns 600,000 to 1.1 million Bitcoin tokens, and each.

One'S worth, like, what, 70 some thousand?

75,000 as of today.

I know because I got tagged and shit talked because of you.

Damn, bro.

It was at 71 this past weekend.

Yeah, it's going up.

Every time we talk shit, it goes up.

Telling you, man.

I'm telling you about we.

I mean, him.

When that recession hits, y'all going to see.

Look, don't put me in this.

This message has been brought to you by Saeed.

No, it's a center pod.

I love you.

I love my crypto bros.

No, you don't.

I love documented people.

People I don't even know what, like, crypto ethereum handles and shit are tagging me because of you.

I love it.

Like, oh, what you got to say now, bro?

You want to talk about it?

I'm like, no, I don't.

I'm on your side.

They're like, no, you're not.

I'm like, I admittedly sold down.

This makes.

But this article right here really actually makes me sad, man.

You know, people can't see the article you're pointing to.

No, I'm going to come back to it.

The average age.

I mean, a lot of this probably has to do with, you know, people who are in their, like, mid to late 50s are cashing on the equity on their homes that they had, and they're able to move out of the state of California and go somewhere else and, you know, buy all cash.

Probably they're the only buyers, but I don't know.

How old were you, Chris, when you bought your first home?

2010.

So I was 30.

Me too.

Yeah, I was 30 and then about my second one in 2000.

And that was, by the way, 30.

Was the average age for the first time home buyer, not too long ago, like less than 10 years ago.

I should be, well, my first home to live in.

My first, like, property period.

Property period.

Oh, it was in my mid-20s.

Yeah.

So I lived in a 500 square foot apartment and could not afford to buy a home here.

So I bought investment properties in the Midwest long before I started buying here.

And then I put in a bunch of offers on what was then REO property.

Well, after I'd bought a property here, like the traditional way, I mean, what.

Does it mean when you say you put a bunch of offers in REO properties?

So my first property I bought in California was a $400,000, like, build, like on a track kind of thing.

I had to build.

I had to pay for hardscape, everything else.

I had no money and I didn't like doing that.

It wound up selling for like 1.2 million.

So it was a good deal.

That's the only other property I sold besides the one that I sold this year to pay taxes.

Still burns.

Yeah, reo.

So after the great financial crisis in 2007, 2008, banks owned a lot of property.

They owned so much property they couldn't sell it in the market fast enough for a number of reasons, not the least of which is when they sell it in the market, for an accounting purposes, they have to take whatever economic losses they had to take on the loan.

So they made a loan for 500,000, but can only sell the property for 300,000.

That $200,000 loss, they have to realize that loss in their balance sheet from an accounting perspective, when they sell it, not when they hold it.

How much pressure were they were banks and lenders getting at that time from, let's say the regulators to, you know, have to sell these properties to, you know, get back some of that cash.

It's very different in the wake of a crisis than when they're fearing a crisis occurring, if that makes sense.

So the regulatory pressure was more of like, how are you handling the accounting?

Are you doing this right?

Are you following the rules?

It wasn't like, get rid of all your stuff now.

Because they knew the Ramifications to the institutions were bad.

So it's better to flow the stuff into the market because there's also other ramifications to think about too.

Plus the consumer protection laws across the country are pretty strong in favor of the consumer.

So if you foreclose on somebody, it usually takes 120 days plus at least.

Yeah.

To get to that process, then you have to go through the marketing and sales period.

You have to go through that life cycle.

So to give you an idea, I put in offers on properties I'll never forget in October and I didn't hear back from any of them except for the one that I wound up buying in 2012 until April, six months later.

Wow.

And I got like this call saying you got 48 hours of deposit, your money, which I've told you about in the show before.

Yeah, but so it was real estate owned.

Basically it was owned by Wells Fargo.

I put an offer that was under market, we negotiated back and forth and I bought that property, which is the one I still live in to this day, for 350 with a $25,000 seller's credit and it's now worth about a million bucks.

Dude, so many people came up so nice during that time.

Yeah, I mean such a good come up.

I didn't look at it like that.

I looked at it as like I just originally I was going to buy it as an investment property.

I just put a bunch of offers in and then when I did the math that it was cheaper, it was cheaper than my 580 square foot apartment based on the financing terms and the purchase price.

Yeah.

To pay the mortgage payment, than it was to continue renting.

So for me that was always my inflection point.

When it's cheaper to buy than it is to rent, that's when I'm going to buy and live in it.

And that's what I did.

And as a result of that, I wound up getting actually a two bedroom, two and a half bath that I was living in, I still live in versus the 580 square foot junior one bedroom glorified studio apartment that I was living in for.

Effectively, I think at the time it was like 15 something.

Almost 16.

No, it was $1,600 a month.

That was one of the first times you hung out with him, huh?

Said like when we helped him move.

When I helped him move.

Yeah.

He never asked me to hang up.

But then I helped him move.

Yeah.

I thought you the help sometimes.

I figured.

I thought you saw use all the thighs and you're like, this guy can handle it.

He can lift the couch.

Yeah, that guy right there.

Plus, you know, I'll be honest, you know, you come with a lot of cousins.

He said, well done, sir.

Yo, bring them all.

All in like five minutes.

I'll buy you guys beer and piz, bro.

Come on.

It was walking distance.

Yeah, it was walking distance.

And then I had to.

Do we push my.

The Dotson up to the.

No, I drove it.

I think still.

I still drove it.

I still drove it up.

You drove it?

Yeah.

All right, well, there's some fun facts here.

Run.

You want to give it a second chance?

Yeah, let's do this.

Come on, bro, you got this.

No, don't.

Come on, man.

Stop being so soft.

You got this.

I'm a soft guy.

You are.

Just pick one.

Read it.

Come on.

All right, fun fact.

Younger generation impact.

Only 24% of homebuyers are now first time homebuyers marketing a significant decrease from the historical average 40%.

This drop aligns with other data indicating that millennials and Gen Z are increasingly delaying major life milestones.

That's good.

I mean, I'm, I'm going to.

I let a couple of things go.

Marketing, marketing.

You got that?

And then you said first time home buyers again, let's go.

But.

But I let it go.

I let it go.

I'm proud of you.

The average rent to income ratio in the United States has climbed to 35% up from 29% a decade ago, pushing more potential homeowners to remain renters longer than anticipated, further delaying their transition to ownership.

And said for the trifecta.

The trifecta.

Fun fact.

Homeownership in decline for young adults.

Only about 38% of millennials own homes compared to nearly 50% of baby boomers.

Don't point.

At the same age, rising prices, limited inventory and high mortgage rates are significantly curtailing young adults ability to enter the market.

Yeah.

Look at you.

Come on, Boomer.

Smooth Boomer.

Oh.

Shout out to Nick Gurley.

He hasn't made an appearance on the show in a long time.

No, this was a late ad by me.

So, Nick Gurley on.

On X.

Pretty concerning how low homebuyer demand is right now.

Mortgage apps to buy a home are down 45% from pre pandemic levels, languishing at the lowest level in 30 years.

And now mortgage rates are spiking once again.

Obviously, this is not a good combination.

Yeah.

So as much as you, you want to say that, okay, this could be seasonal because you know, we're, we're approaching the holidays.

That chart is showing that it's going one way, my friend.

Yeah.

And for those people who are watching, you know, the video streams this way, this chart.

Watch the video streams on either spider.

So I was going to say X.

I actually thought about uploading the x.

Spotify or YouTube.

You will see a chart and the chart spikes up and then spikes back down and then spikes up a little bit and then spikes back down.

But the down has gone down a lot farther than it had from call it 2008 to 2018 where I started the rise again.

As a matter of fact, it's down so far.

It's down in the 1990s era levels.

Wow.

So that's a, that's a pretty dramatic drop off.

And if it continues to go down, which frankly is more probable than not at this particular junction, you were looking at possibly the kickoff of a pretty significant correction.

Now notice I'm not saying crash, but correction in home values, which I think again it might be a healthy near term pain for long term gain.

That's not as cheesy, but it's okay.

No, that was actually just an economic statement.

Yeah, I know you're used to making cheesy fun facts.

So just to further drive home the.

Point of unaffordability with your low range.

Yeah.

With the, with the lowest of ranges.

With little range, you have this, this.

Range is a five decade range.

Okay.

So I mean it's about a quarter of my decade range.

Okay.

So we're, we're dating back from 1971 to 2021.

Okay.

Household income during that five decade range has grown by 600%.

Okay.

You think?

Wow, that's pretty good.

It's a lot, it's a lot of percentage.

Cost of a new car has grown by 840%.

Okay.

Price of one year college tuition has grown by 2000%.

Such a scam.

Such as I'm not getting 2000% more value out of this thing.

Zero.

Yeah.

No way.

And I'm indebted for life.

If I get a loan on this.

It's inflation.

What part of educating me is inflation?

Median price of a home sold grew over the course of that five decade span by 1200%.

That's, that's messed up.

Okay, so household income grew by 600%.

You know what else changed within household income?

How many families went from one person working to two people working?

Now y'all gotta have two jobs.

And how many, I'm not even sure.

How many of those people in that household are working two jobs and it still has only grown by 600%.

Yeah, I know.

It's fucked up, man.

Okay.

Yeah, it is.

Take it in.

The sad part, I had this realization of the day, and it's messed up.

Is in one moment I was like, man, I am.

I'm really a millionaire.

I was like, that's dope.

Don't mean shit no more, huh?

And then I was like, but I know a lot of billionaires.

Like, I know a good amount.

Yeah.

On a personal level.

Yeah.

And then the moment I had this epiphany, like, if you're a millionaire and you're less than 100 million, you're basically middle class.

Everyone just laughed.

I mean, with inflation, they're not one of us, Chris.

They're not flexing.

I'm poor.

They're not.

Yeah, exactly.

They're not.

I'm poverty adjacent.

Yeah.

Oh, man.

I mean, you can't.

It doesn't matter.

Right?

It's consequence, you know, this fucked up part is.

So I looked.

I was going through my W2 wages, and I've had a pretty healthy increase from like a year ago.

And I looked at my net take home, it's the same.

Literally the exact same.

How did this work?

I'm like, how did this number go up top line.

Yeah.

After taxes, it's the same.

Yeah.

I'm like, this is messed up, bro.

So I triple checked it, did the math, and I'm like, son of a bitch.

I saw that the new tax brackets came out.

I haven't looked into it.

I don't know how much that affects it.

Maybe we could do a little segment on the show for that.

We probably should.

I just hate just.

We're talking about financial literacy because I know a lot of people don't really understand.

They see that the tax rate range, and it's.

That's not.

That's not how it necessarily works.

It's like a bump up.

It's like a tiered system.

Yeah.

You have a progressive tax system.

Exactly.

Look at me using technical terms.

There you go.

So progressive.

You are.

You're.

You are pretty progressive.

Doc, your dollars, baby.

Doc, your dollars needs to be on a T shirt.

Yeah, I just.

How are you going to visually represent that?

We got to get creative.

Like a boat.

Just staying there.

There's clearly.

We're docking.

Yeah.

I don't know.

All right, well, Warren Buffett, remember a long, long time ago on the show, we were talking about how, like, Warren Buffett had stockpiled cash and people were like, come on, bro.

He Always does that, bro.

Y'all don't know what you're talking about, bro.

Yeah, bro, we got.

We got attacked so hard for that one.

Hard?

Yeah.

Y'all don't know Warren Buffett's strategies over at Berkshire Hathaway.

And you fucking Internet trolls.

Do you want to share?

Somehow I'm the asshole?

Because we're saying he's.

He's not a stockpiling cash, bro.

You don't know what you're talking about.

Well, we keep receipts.

Ok.

Why is it.

Why is it a big deal if somebody like Warren Buffett at Berkshire Hathaway is stockpiling cash?

Well, like your boy John King, he's basically saying, you know what?

I'm not going to invest in the stock market right now because I think there's going to be a healthy correction.

Now.

He's not pulling out all of his money.

He's docking it.

Okay?

He's going to take some of his money out the game and put it into cash and say, I'm going to hold cash till the market corrects, and then I'm going to buy when it goes down, when I think it's going to go back up, essentially.

And I'm paraphrasing a lot of analytics here, but let me put this into a quantifiable picture for you, okay?

Okay.

If you're driving, I want you to know I'm going to be throwing out some big numbers, and they probably are going to be infuriating.

So autopilot's a good thing.

Maybe.

Woosa, take some ashwagandha.

Here we go.

This is insane.

From the Kobe Letter.

Warren Buffett is now building his cash balances at an unprecedented rate.

For the Internet trolls out there, unprecedented means never before happened.

Okay.

Even as the market hits new records, Berkshire Hathaway just announced that they are freezing buybacks and holding $325 billion of cash.

Yeah.

Let that sink in.

So obviously Dr.

Buffett sees something very interesting.

Charlie Munger, rest in peace.

Much love.

Yeah, man.

This compares to 345 million in Q2 of 2023 and 2 billion in each of the prior two quarters.

Berkshire said it will buy back stock when Buffett, and I'm quoting here, believes that the repurchase price is below Berkshire's intrinsic value.

Wow.

What he's basically saying is we're not going to buy back stock when it's being valued at more than we think it's worth because it's overvalued.

Yeah.

I mean, and another.

I mean, yeah.

So, like Mr.

John King.

He realizes that stocks are overvalued right now.

Right.

But keep in mind, Berkshire Hathaway is also in the business of buying companies out outright.

How many companies do they flat out own?

A lot.

A lot, right?

So don't be surprised if they try to come up on some companies that are really hurting.

And, you know, in a tight pinch.

Bro, I'll give you some great fun facts here.

Let's go dive into that Fun fact number one, dude.

This is the fun fact show.

Why?

Why, why?

You gotta juvenile, like trivialize it.

What do you mean juvenile?

I got three of them.

Because there's three of us.

I was being considerate.

No, I'm.

I'm being honest.

We have.

I'm team building here, bro.

You are team building.

I just didn't know that Arun couldn't read.

No, he can.

He got this kind of.

Which one do you want, Arun?

One, two or three?

I don't know.

Just go, just go.

Oh, okay, we go.

Fun fact.

Buybacks and inflation hedge.

Large corporations, including Berkshire Hathaway, view buybacks as a potential hedge against inflation.

Not.

He didn't say crypto.

By reducing outstanding shares, companies like Berkshire theoretically increase shareholder value without needing to raise dividends or wages.

Now you know.

Now you know, Arun.

Sorry, see, can take my mute off.

This is.

This is why.

This is.

This is.

You got this, bro.

It's a problem.

Fun fact long.

It's blurred, bro.

It's because it's in bold.

It's in bold.

So it's not being mean.

Stop being me.

Viewers are gonna be like, fuck this guy.

No wonder why they don't put a camera on him.

Long term perspective.

Fuck it, I'm done.

Buffett has emphasized that Berkshire's buybacks reflect not just intrinsic value, but a strategy to keep long term shareholders invested.

Over the last decade, Berkshire has spent approximately $70 billion on share repurchases.

Warren Buffet.

That's like SNL skit.

There's so many reasons why it's funny, not the least of which is his weight.

That's good, bro.

That's good, that's good.

When is the last time you went to Warren Buffet?

That's a good restaurant.

Funny.

Global perspective.

Stock buybacks are more common in the U.S.

than abroad.

In Europe, buybacks only make up about 25% of the shareholder returns, compared to the U.S.

where they account for approximately 60 to 70%.

This difference could be discussed as a.

I can't read the rest.

Cultural approach to corporate value and investor trust.

Yeah, so the US is obviously more focused on those things where in Europe they want to be more of a steadfast, consistent company over time.

This is the last article coming up here.

I know it's been a long show, but I thought this was kind of crazy because it wraps it all up and puts it in perspective.

It being the economy, the markets, the impacts to the consumer.

I found this on CNBC and to me it was very telling.

28% of credit card users are still paying off last year's holiday debt.

How to get this season's tab under control was the ongoing article.

But there's some stats here which I think are worth sharing.

For some shoppers, the upcoming holiday season may lead to significant credit card debt.

Meanwhile, some people are still paying off debt from last year's gift buying.

In fact, 28% of shoppers who use credit cards have not paid off their presence they purchased for their family and friends last year.

According to a recent holiday spending report by Nerd Wallet, the site pulled more than 1700 adults in September.

Here's a quote from the article.

Between buying gifts and booking peak season travel, the holidays are an expensive time of year, said Sarah Ratner, Nerd Wallets credit card expert.

Not only are consumers at risk of getting into credit card debt, but that debt can stick around long after the decorations come down.

So you took a pretty heavy stance last year.

I remember.

I've always had a heavy stance in the holiday gift buying.

Oh, really?

I thought last year was the first time I heard about it.

No, no, no.

I've always had a pretty like.

I think gifts in a lot of ways are overdone.

Don't get me wrong, I'm all for good gift giving, but I think the gift of spending time together is immensely more valuable.

Number one, that's what you remember more than anything else.

That's not.

You don't give that to anybody.

Me?

Yeah.

No, I give it to some people.

Okay, cool.

I'm just out here.

I give you an hour of my day every day.

What?

In my head, I give it to you in my head.

In my mind, I'm thinking about you.

In the ice barrel.

Yeah.

Does this count?

Affiliate link down below, you get 12%.

Off everything but chillers.

Yeah.

Go to iceberrell.com use the code.

Chris.

Yeah.

As in not Saeed.

Yeah.

I wonder if they'll change my code to paper hands.

Yeah.

The time.

You got to give the gift of time.

All right, so I have the story that I have to share, which is a very douchey story which I promised at the middle of the show there, Arun, feel free.

I know you're going to take some shots.

Please, man.

So a guy I know was checking out, and he's a pretty successful guy, right?

Checking out.

Checking out at the, like, snack bar thing in Equinox.

And I was behind him, and he pulled out his platinum card, and I was just with him, you know, I was like, hey, man, I remember when I said, platinum is cute.

Oh.

He's like, what do you mean, pull the black card?

And I swipe, yeah, right.

And I'm like, okay, one day you'll grow up, too.

I'm just with him, right?

Because, you know, I know he does well for himself, right?

And you know him, huh?

You know him, you said, Yeah, I know him well.

Yeah.

So I was busting his chops, and he's like, oh, big baller.

Like, you know, making fun of me, all that kind of stuff.

And I was like, you know, whatever, being a dick.

And we go out to the valet.

All of a sudden, I hear black Ferrari.

Yeah.

Rolls up.

It's his.

My Rivian, right behind it.

It's a little embarrassing.

But the irony is, is that we were talking about financing, and he says something I didn't know.

I'm like, what's up with the Ferrari, bro?

He said, what do you mean?

I'm like, I didn't.

I didn't peg you as a Ferrari guy.

I pegged you as, you know, a poor guy.

And you just pegged him.

No, I peg everybody.

Got it, Doc.

Your dollars, Docker dollars.

And he said, I didn't know this either, but a friend of mine has.

Has a Ferrari.

And he was telling me that once you get in with Ferrari Finance, it's really valuable.

And they actually offer lines of credit to use, like in business, other places.

If you just have a relationship with him.

Oh.

And he's like, in certain cars you buy, you typically don't take a loss on them economically because they go up in value in this economy, at least.

Anyway.

So he's like, if you buy the right Ferrari, they increase in value over time.

And you also get him a Ferrari Finance.

So he's like, I've got a million dollar line of credit for business purposes from Ferrari Finance with unbelievable terms.

And he also was breaking down, like, the financing terms of with Ferrari Direct.

And he's like, believe it or not, if I put more money down, it was actually not going to improve my payment a whole lot.

So when I went in, I was thinking I was going to put $160,000 down on this car, you think about like a half million dollar Ferrari.

And he goes, but with the way the financing worked out, if I put down 60,000, it was the same amount of monthly payment.

Oh.

He's like, they do a very weird thing with the finance.

Once you get in with them, you have access to things like these lines of credit.

I didn't know those existed.

And correct me if I'm wrong, you need to be like an approved member from them to even be able to buy a car from them.

Right.

First, it depends on if you're buying like an entry level, like beginning car, but you want to buy it directly from them.

Yeah, you're gonna have to, because they're.

Really particular about who buys certain cars.

Because they don't want you reselling to some jackass.

Not only.

Not only that, but they also don't want you like, modifying their cars heavily.

Yeah.

Like, they take.

They will ban you.

Like Justin Bieber's banned from buying Ferraris.

Bro, by the way.

So I have a equally bad story when it comes to the valet.

The wife and I had just gotten married.

Newlyweds.

Okay?

So this is obviously like 20 years ago.

Yeah, this is 11 years ago.

20.

Right.

And we go to dinner.

And we go to dinner with one of my wife's friends and her husband, and they invite us to a spot in la.

Unbeknownst to me, it was Robert De Niro's restaurant.

I have no business being at Robert De Niro's restaurant.

Oh, it's an Italian place, right?

Yeah, I forget the name.

I don't want to butcher the name.

But I've been there a couple times.

Yeah, very nice.

Good Italian food, don't get me wrong.

Very nice.

Right.

But whatever.

We have dinner.

And mind you, at this time, I think I'm working.

My wife wasn't working yet.

She was still going to school.

And we had no business being at this kind of restaurant.

Right?

And we had never paid for a meal like this before.

So I'm sweating the entire time, like, bro, what's this bill?

It's wildly expensive there, so.

Because out of nowhere, in the middle of dinner, my wife's friend's husband invites one of his other friends to dinner as well, right?

Some.

Some big ball.

He came in a three piece, like, Great Gatsby suit.

He was slick.

You know, he owned some, like, merchant services business, Right, the card business, right.

Where he gets a fee off every time somebody uses swipes a card.

And you were like, I know this motherfucker's paying for Himself, bro.

So Bill comes, whatever.

And mind you, we're.

I ordered just a basic meal.

These motherfuckers are out here, like, buying drinks.

And of course I'm in that awkward position.

Y'all want to split the bill?

Like, no, man.

Like, I did not order drinks.

I don't want to split the bill.

I want to split in thirds, dog.

I got a.

I got a side salad.

What do you mean split in thirds?

I ate the rolls.

Those are free.

Yeah, man, I ate your side salad.

You weren't paying attention.

So anyways, we pay for the bill.

Mind you.

They're all.

They both dropped their black cards into the thing, and I'm like, okay, I got my.

I got my little Chase credit card here.

No problem, whatever.

We pay for the bill.

Overpaid, right?

We go to valet.

This guy's got a new sls.

The other guy's got some decked out new Range Rover that was hot at the time.

And I walk out in our white Honda Civic, comfortable enough.

I'm like, man, you couldn't wait to pull up my car until after they left.

Come on, man.

It was.

Yeah, yeah, yeah, it was.

It was rough.

It was rough.

It's weird how some of those things are, like, real.

We all know it's stupid, but it's a real thing.

I know my car still gets me from point A to point B, just.

Not with a lot of range.

Very limited.

Limited in range, great gas mileage.

It's not going to get you the full distance, but it'll get you halfway there.

Yeah, yeah, yeah.

Almost to the climax.

If you will run.

We didn't give you an opportunity for poppy culture.

Did you want to try to read something else tonight to redeem yourself?

No, I'm good, man.

You sure?

We're at 115.

We're at 115.

Are you suggesting we should go longer?

Somebody said we needed some longer format around here.

Who said that?

Me.

Going back to two days or two.

Two weeks.

You know, I have been getting a lot of people saying we need more content.

We need more content.

And somebody who's like, big in the podcast space told me that we started putting out more content.

I think about doing, like one off show kind of things, you know, like we'll do, like, it's like an educational moment.

Yeah, exactly.

I think we should do a lot of those.

Yeah, you used to do that before we joined.

Yeah, I do like the by myself solo dolos, but I was thinking more like 20, 30 minutes on just one topic.

But I have to Get Saeed to commit to be willing to do it like a deep dive with limited range.

What's up with the fun fact?

Limited range episode?

You didn't like the fun fact?

That's part.

I love the fun fact aspect of the show.

Just.

We got to work on Maroon's reading, obviously, but he'll get there.

Yeah, he'll get there.

Or you got.

He got a little shy.

He just wasn't used to it, bro.

I remember.

I remember my first time reading all shows.

I couldn't say a damn thing.

It is a little weird when you.

First start and then you hear yourself on the playback too.

You're like, God, I sound like such a jackass.

No, I'm used to sound like a jackass.

That's normal for me.

That was a very hard thing to get over.

Listening to yourself talk.

You're like, oh, God, shit.

Now I do it every week when I edit the show.

Yeah, yeah, yeah.

Not exactly my best work, but, you know, it's work.

Well, let's call kids.

Oh, don't you got anything?

Yeah.

All right.

What do you got?

Oh, yeah, he does.

Review.

That's right.

Unfortunately, the title got cut off, so I don't know what the full title says, but this from Zstand 80.

Thank you, Zstand.

By the way, it's captioned.

This is a great review.

Yeah.

Yeah.

It's like getting financial literacy from.

I like to take a guess.

What do you think he said?

Jesus.

Jesus.

Could you even pull this up in the background in the meantime?

I can probably get it on my.

Probably.

It wasn't popping up on my.

This is itunes.

Yeah, this is Apple podcast.

Left us five stars.

Clearly.

Honest.

Really glad I found this podcast and wish it was around 20 years ago, but better late than never, at least for me.

I mean, shit, if we were around that long ago, I mean, it's cut off.

That's what it is.

Yeah.

I really like the way they explain topics and ideas.

It's not only helpful, but there's no twist at the end where they're telling you to invest in xyz and they just happen to be selling xyz.

This show has integrity and it's entertaining.

Keep up the great work, fellas.

Appreciate you.

Do we have integrity?

Oh, here you go.

It's like getting financial literacy from your buddy and not a professor.

That was actually the intent of the show.

When we first mapped up what we wanted the show to be, we wanted it to be like people were getting sitting in a conversation with their friends at a bar just Shooting shit, having a good time.

Because we thought that the educational professor, like, format or like, the guru like format is kind of disingenuous.

Yeah.

You know, and look, you.

Nobody wants to listen to a professor every single day.

Everyone's like, oh, my God.

I'm going to school.

Yay.

No, right?

And no one's like, oh, that.

That guru is so amazing two years later when they take all your money and run.

So we wanted to be, you know, more friendly and anecdotal.

It should.

It should feel like you're listening to your friends and you're learning something along the way.

And from what I've heard from other people, too, they're able to digest information a lot better.

Yeah.

Yeah.

Metabolize it.

There you go.

Dock it.

Put it in there.

Leave it there.

Doc, your dollars.

That's a T shirt.

I got to find the visual for it, though.

It's got to be appropriate.

No, inappropriate, bro.

Inappropriately appropriate.

Yeah.

There you go.

Yeah.

Just an eggplant in the front.

Yeah.

The higher standard brought to you by Eggplants.

That's very fitting for the show.

Exactly.

All right.

You got anything else, Odin?

Nope.

All done well back there.

Thank you, sir.

You got anything?

No, I'm good.

All right.

I'm Gucci.

I'm Chanel.

No, you're not.

Okay.

I'm Prada.

You're Hermes.

I am.

You are.

If you were one, you would be Hermes.

I probably would be.

You'd have to.

What's odun?

Coach, for sure.

Juicy Gap.

Juicy Couture Gap.

I'm Bass Pro Shops.

Oh, wow.

Oh, man of the people.

You went for the first time this weekend.

I did.

I went to Bass Pro Shops this past week.

They're big, right?

I just was like, I have to see this place.

I've never been inside.

It's.

It's incredibly, overwhelmingly big.

Have you seen the ones in the Midwest?

So then.

So it was actually my wife's idea.

She wanted to go check us, and we.

I want to see this.

It seems like it's pretty cool.

Let's go check it outside.

She's like, it feels weird that this.

This store is so big and I know nothing about what's inside.

Right.

I go, okay, let's go check it out.

I mean, I've never been either.

Whatever.

And she goes.

She's like, okay, I'm glad I experienced it.

Not for me.

Right.

I was like, I feel like you're more of an REI person.

I was like, let's go to rei.

And she loved rei.

So because.

Why did you do this?

Because we had some free time on our hands.

Our kids were.

Our kids.

Our kids were.

Disneyland.

Yeah, they went to Disneyland.

Yeah, I know.

Yeah.

One of the cousins.

Yeah, yeah.

One that wears pearls.

One of the cousins.

Yeah.

Took him to Disneyland for the day.

One that wears pearls.

Dude.

They would.

They got in at 4 o'clock and somehow they still hit 10 rides.

It rained that day.

Yeah, I know.

And they got them the little things to park us.

Yeah, yeah, they had a great time.

They.

They went to Star Wars.

Then they had to shut down the ride.

And Adam was texting me from his watch, and he's just like, we got into the.

The best ride at the park.

And then he texted me five minutes later.

He's like, they shut it down and then they open it back up later and they.

My cousin bought him lightning passes.

Yeah.

And then he.

And then they went.

Such a racket.

We spend so much money every time we go now.

Lightning pass.

Anything else?

I mean, if you don't get the.

He was telling me that there's some other thing that you can get where it's like some 500, like, concierge package.

Oh, no, they just rolled that out.

They basically, you.

You have.

You have Lightning Lane for everything whenever you want.

Now it's 500 an hour.

No, no, no.

It's 500 period.

No, he was telling me it's $500 an hour.

That's what he said.

Oh, no.

So you talk about the.

This is something that celebrities get.

Walk up to the front of the line.

No, that's.

No, it's $600 an hour starting.

And that's.

You have somebody who walks you around the whole day.

But it's not just that.

You have to pay for your tickets.

You have to pay and then you have to.

It's a whole, like, I've done this once.

So it's 600 an hour, and there's a certain number of hours minimum.

But they walk you in front of every ride.

They walk you around.

They're basically with you, like, taking you everywhere else.

They'll get you, like, the food that's cool.

They'll kind of give you, like, the hip stories.

Everything else, the back door.

They'll take you to Club 33.

Yeah, it depends on how many.

How often you're there.

But celebrities usually get them to walk them around like that.

And there's.

There's back ways into some of the rides.

You don't have to go, like, through the lines.

People see you.

Yeah, I've done it.

I've done it.

I've experienced it once.

I've paid for it once.

There's a whole thing there.

So.

So we.

So my cousin gets him these.

These lightning passes, and.

And Adam doesn't know what lightning pass means, right?

And so he tells Adam, it just means you're.

Like, you're part of a VIP line.

Cousin doesn't have kids.

He doesn't understand.

Like, he's not thinking two, three steps ahead.

What.

What could happen when you tell him vip and what VIP means?

Very important person.

So now Adam and I already go to these lightning pass lines and doesn't understand that other people also have lightning passes, right?

So he says, hey, this is vip.

Why are they here?

I thought we're vip.

Can we go in front of these people?

And they're standing, right?

I mean, we can't all be VIPs, right?

I mean, not every.

I mean, everybody can be vip.

What is this?

Did you buy, like, the cheap VIP packages?

Yeah, exactly.

Come on.

Why'd you skimp out?

Why is this guy here?

He's dressed like a Star wars person.

I'm looking at it.

Look at his kicks.

He's not vip.

Yeah.

Can't be wearing Reeboks, right?

Come on, now.

This is.

Yeah.

LA gear.

Yeah.

All right.

It was a good episode, boys.

It's okay.

All right, good night, everybody.

Goodbye.

I hate it.

I know.