FOMC Countdown: Rate Cut Odds Explode, AI Privacy Nightmare & THS Live
The boys are back, and this time Jerome Powell shows up looking like he just stepped off the set of Terminator: Rate Cut Salvation. In this episode, Chris, Saied and Rajeil break down why markets are foaming at the mouth for a policy pivot… while conveniently ignoring every economic signal flashing bright orange. From exploding rate-cut odds to the consumer tapping out like they’re on their ninth round of BNPL debt, this one’s a full-speed sprint through the chaos the mainstream financial world desperately pretends isn’t happening.
➡️ Then we take a hard turn into the AI privacy nightmare no one seems ready for, and the kind of tech overreach that makes Skynet look spiritually grounded. You’ll hear why the job market looks strong on the surface but hollow underneath, how corporate America keeps skating by on vibes, and why the average investor is still totally unprepared for what’s coming. It’s sharp, it’s funny, it’s troubling... in other words, it’s The Higher Standard in peak form.
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📩 NEWSLETTER: https://tr.ee/O6FWkv
👕 THS MERCH: http://www.thspod.com
🔗 Resources:
Why Anthropic CEO Dario Amodei spends so much time warning of AI's potential dangers (CBS News)
⚠️ Disclaimer: Please note that the content shared on this show is solely for entertainment purposes and should not be considered legal or investment advice or attributed to any company. The views and opinions expressed are personal and not reflective of any entity. We do not guarantee the accuracy or completeness of the information provided, and listeners are urged to seek professional advice before making any legal or financial decisions. By listening to The Higher Standard podcast you agree to these terms, and the show, its hosts and employees are not liable for any consequences arising from your use of the content.
Transcript
You guys want a fun fact?
Speaker A:It's gonna ruin your day.
Speaker B:Yeah, of course.
Speaker A: e Future was based in October: Speaker A:That was the future.
Speaker A:That's how old we are.
Speaker B:We're here now.
Speaker A:We're here.
Speaker A:That's us.
Speaker A:That's.
Speaker A:That's us, boys.
Speaker C:Over far in the future.
Speaker A:Yeah.
Speaker A:Welcome back.
Speaker B:Welcome back to the number one financial literacy podcast in the world.
Speaker B:This is the higher standard.
Speaker B:Sitting in front of me in the all facts, no cap merch, Christopher Nahibi nipple.
Speaker A:Hard as hell too.
Speaker A:That's for you.
Speaker A:S. Let's go.
Speaker B:Thank you, sir.
Speaker A:Sitting across me, the one, the only, the man, the myth, the legend.
Speaker A:Sitting in the record in Los Angeles T shirt.
Speaker A:Of course, pre faded Sayed Omar.
Speaker B:Thank you, my man.
Speaker B:Sitting behind the desk in the ones and twos.
Speaker B:In the production suite, the fighting Faji and Rajil.
Speaker B:What's up, my guy?
Speaker C:What's up, everyone?
Speaker B:Yeah.
Speaker B:Rocking the new Black Friday hat.
Speaker B:Which we will get into at some point in the show.
Speaker B:We got a lot to get into today.
Speaker B:We're going to talk about a global wealth report.
Speaker B:We're going to be talking about US home prices versus incomes.
Speaker B:But first, what we're going to get into is some of this.
Speaker B:Some of these Black Friday data numbers.
Speaker A:Yeah, they are, as a kid, say skewed.
Speaker B:Is that what they.
Speaker B:Yeah, all the skews.
Speaker A:So I was expecting the numbers to be strange and I think we got that.
Speaker A:Although the headline is that people spent a lot of money.
Speaker A:So grain of salt.
Speaker A:I think that the way people spent money is more important than how much money they spent.
Speaker A:Anecdotally, I remember Zootopia 2 conversation last show.
Speaker A:Yeah.
Speaker B:Did you watch it?
Speaker A:It was the highest opening weekend ever, I think, for Disney.
Speaker A:Wow.
Speaker A:Yeah.
Speaker A:Big time show.
Speaker A:Yeah, I watched it.
Speaker B:That's with Bateman, right?
Speaker B:Yeah, Bateman's Elite.
Speaker A:Jason Bateman, smartless podcast.
Speaker B:He's just stud.
Speaker A:He, he did that series on Netflix, but I think he also directed.
Speaker B:I don't know if you guys ever seen this movie of his called the Gift.
Speaker A:I don't think so.
Speaker B:He's the villain.
Speaker B:Is he in the.
Speaker B:And he, he does a great villain.
Speaker A:I, I gotta be honest.
Speaker A:That guy's career right now is on fire.
Speaker A:Yeah, it's really disappointing.
Speaker A:Zootopia 2.
Speaker A:What is?
Speaker A:Oh, yeah, look at that.
Speaker A:Paid ad from YouTube.
Speaker A:Ki.
Speaker A:Closer, close out.
Speaker B:There we go.
Speaker A:There you go.
Speaker A:Zooms past $600 million at the global box office.
Speaker A:Now, keep in mind, it came out over Thanksgiving.
Speaker A:So the total weekend numbers Were a little bit skewed as far as days go.
Speaker A:But yeah, I'll tell you, man, like, I was not shocked.
Speaker B:I was down to go to the movie theaters and watch this.
Speaker A:I watched it.
Speaker A:It had a lot of, a lot of idiosyncratic, really interesting throwback details.
Speaker A:Really his movie.
Speaker A:And they did a good job.
Speaker B:Okay.
Speaker A:They did a good job.
Speaker A:It's warranted in so many ways.
Speaker A:And it was a wholesome movie, you know, you know me, I'm all about wholesome.
Speaker B:You're the furthest person from wholesome.
Speaker A:What are you talking about?
Speaker B:The furthest person?
Speaker A:Okay, that's completely inaccurate.
Speaker A:Notable that Black Friday's data showed a 9.1% increase spend from last year.
Speaker A:That's a good headline.
Speaker A:However.
Speaker A:A 1% in total item volume from last year.
Speaker A:So the number of products that sold actually only went up 1% right out the gate.
Speaker A:I'm going, well, that's inflation.
Speaker B:That's inflation.
Speaker B:I mean, that's right.
Speaker B:The definition.
Speaker A:Yeah.
Speaker A:So people spent more because the same stuff last year cost less.
Speaker B:And, and I mean a lot of companies were being put on blast.
Speaker B:More so than I had ever seen.
Speaker B:I mean, we'd always seen the memes, right.
Speaker B:Of like, oh, you know, companies out there just, they raised the prices right before Black Friday just to cut them back to their original prices.
Speaker B:Just to say that you, you make you feel like you got a deal.
Speaker B:But now people are like exposing, like I've seen posts on Target, Home Depot where you just lift the price.
Speaker B:They got so lazy with it.
Speaker B:Yeah, just lift the price tag and it's the same price tag as before.
Speaker A:Well, think about the way this works for most companies, right.
Speaker A:So the company decides that the price is going to be a lower sale price item, then they roll those prices out.
Speaker A:And usually it's paper or it's at a check counter somewhere.
Speaker A:But people who are at the actual stores don't have a vested interest in hiding the results here.
Speaker A:They're not making any extra coin.
Speaker A:Right, Right.
Speaker A:If, if they were paying the sales people like a little bit extra money to, to actually sell a product like Home Depot.
Speaker A:Those guys who help you, girls who help you.
Speaker B:Yeah.
Speaker A:They're not getting paid any extra money for moving units.
Speaker A:They're just working a holiday.
Speaker A:They're hours.
Speaker A:Yeah.
Speaker B:Yep.
Speaker A:What you should be doing is giving them a little extra money.
Speaker A:And then guess what?
Speaker A:Things would be a lot better looking to the consumer.
Speaker B:Yeah.
Speaker B:Just to go the extra mile.
Speaker B:Right.
Speaker B:I mean, it would look better to the consumer.
Speaker B:I mean, still the same End result where the consumer gets screwed in the end.
Speaker B:But, you know.
Speaker A:Yeah, it's.
Speaker A:You know, but this is something that bothers me in general about Black Friday shopping.
Speaker A:I feel like I don't want to.
Speaker A:I don't want to offend anybody by saying this, but it's true.
Speaker A:I feel like it.
Speaker A:It's the stigma of getting a deal, not the actual getting a deal.
Speaker A:And there are some.
Speaker A:Like, every once in a while you get a TV for, like, 100 bucks.
Speaker A:You know, normally retails for, like, way more than that.
Speaker A:But is that worth the dog fight at 2 o' clock in the morning to get it?
Speaker B:No.
Speaker B:No.
Speaker B:Exactly.
Speaker B:And you got to, you know, you got to be pragmatic about it.
Speaker B:So what my wife and I did, we had, like, a list of things that we knew we wanted to purchase, right?
Speaker B:So let's look at it, like, a month or two before, and if it goes down, like, at a reasonable clip, we'll buy it.
Speaker B:Like, there was this.
Speaker A:Wow.
Speaker C:Yeah.
Speaker B:There was, like, this air fryer, toaster oven thing that she's been, like, looking at for a long time because, you know, the material and some of those things are really bad for you.
Speaker B:So there's one company that makes a nice, wholesome product.
Speaker A:And also, he's using the vocabulary word today.
Speaker B:Wholesome episode.
Speaker B:It's gonna be a wholesome episode until Chris decides to ruin it with the.
Speaker A:First phallic joke of the show.
Speaker A:Goes to.
Speaker A:There's a new air fryer which goes on top of, like, the glass bowls.
Speaker B:That's cool.
Speaker B:Yeah.
Speaker B:Yeah, that's really cool.
Speaker B:So then we did.
Speaker B:She did buy herself that.
Speaker B:I forgot to mention that to Rajille at the start of the show.
Speaker A:So mark that Downward Jill at approximately five minutes in.
Speaker A:So I lied to you.
Speaker B:Admits.
Speaker B:Admits.
Speaker B:I came forward.
Speaker B:It's not.
Speaker B:It's not that.
Speaker B:When I come forward with it, it's not a lie anymore.
Speaker B:I came clean as a confession.
Speaker A:So I don't.
Speaker A:The best thing on social media, okay, the best thing by far is this show where this counselor is a marriage counselor, okay, Sits in front of couples who were having problems, and these couples will then talk about their problems, and it's.
Speaker A:It's their clips on social media for the show.
Speaker A:It's supposed to bring you to the show, but it's the best social media I have seen in a long time because it's real, okay?
Speaker A:And some of the things these people say are crazy.
Speaker B:Dude.
Speaker B:Some people are getting so creative.
Speaker B:So creative with, like, their platforms.
Speaker B:I know what you mean.
Speaker B:Because there was another one.
Speaker B:I think I said both of you guys where you can.
Speaker B:It's.
Speaker B:It reminds me of the.
Speaker B:Was the.
Speaker B:The comedian that passed away, Norm McDonald's nor McDonald's.
Speaker A:Right, okay.
Speaker B:Remember you had that movie Dirty Work.
Speaker A:Yeah.
Speaker B:Right.
Speaker B:A great movie.
Speaker A:Right.
Speaker B:Hopefully we don't get canceled for that.
Speaker B:I don't remember the movie in its entirety in case he did anything.
Speaker B:Those.
Speaker B:Those are reference old movies anymore.
Speaker A:Cuz the reference to the old movies.
Speaker B:That's co signing.
Speaker B:That's co signing.
Speaker B:Right.
Speaker A:I can't believe you co signed Euro Trips.
Speaker B:I don't remember everything about the movie now.
Speaker B:Okay, but so people are literally getting hired online to like call people and give them like, like messages about how they feel.
Speaker B:And.
Speaker A:Oh, I've seen this.
Speaker A:It's so terrible.
Speaker B:And this guy's literally getting paid.
Speaker B:What are you gonna do?
Speaker B:You're gonna yell back and over the phone say, hey, it wasn't me.
Speaker B:Somebody paid me to call you and let you know that you're a pos.
Speaker A:Yeah, it's the best.
Speaker B:It's the best.
Speaker A:I've seen that guy do that a couple of times.
Speaker A:I've seen him call employers and quit for people.
Speaker A:Oh.
Speaker A:Like can you imagine getting that contract?
Speaker B:How you find out?
Speaker A:Yeah, you call the boss and you tell him you quit and.
Speaker A:And he just doesn't like this cavalry way.
Speaker B:Hopefully this show gets big enough where.
Speaker B:What we can devote one to where.
Speaker B:Listen, calling just be.
Speaker B:It'll be in confessional.
Speaker B:Yeah, the higher standard confessionals.
Speaker A:I wouldn't mind that.
Speaker A:I also.
Speaker B:Confessions will have like usher in the background.
Speaker A:What's that website you can go to and get like B or C list celebrities to.
Speaker A:To like shout you out.
Speaker B:Oh my God.
Speaker B:Cameo.
Speaker A:Cameo.
Speaker A:I want to be on cameo to like call people's bosses.
Speaker B:I'll be that guy.
Speaker B:I'll be that for you.
Speaker A:Yeah.
Speaker A:Let me give your boss some constructive feedback.
Speaker B:No.
Speaker B:Okay.
Speaker B:All the other people that are do this.
Speaker B:It's just one person pay the higher standard and you'll get two people doing it for you.
Speaker A:I don't want to spend the profits with you.
Speaker A:This is my.
Speaker B:It's fine.
Speaker B:It'll be your.
Speaker B:I just want to be here for the enjoyment.
Speaker B:Come on, man.
Speaker A:You be the hype man in the back.
Speaker A:Yeah, that's.
Speaker A:Yeah, you heard him.
Speaker A:You heard him.
Speaker A:Tommy, tell him again.
Speaker A:So prices this year on average for Black Friday were about 7% higher, which I think is actually understated.
Speaker A:I don't think that's.
Speaker A:That's real.
Speaker A:But we Know that inflation's higher than that and that's higher than one year ago.
Speaker A:So 7% over one year.
Speaker A:Take it over the last couple of years, that.
Speaker A:That's a pretty notable increase.
Speaker A:Again, compounding percentage increases, consumers bought on average 4.1% fewer items.
Speaker A:Wow.
Speaker A:So the same volume of product move, but 4 point whatever percentage fewer items per household.
Speaker B:Yeah.
Speaker B:So it really makes you think, okay, the next step is.
Speaker B:I don't think everyone has completed their Christmas shopping.
Speaker B:So what is this going to do?
Speaker B:What is this going to be doing?
Speaker A:Who started?
Speaker B:I'm sure people use Black Friday to get it, to get the ball rolling, get the big ticket items.
Speaker A:Right?
Speaker A:That's probably true.
Speaker B:Right.
Speaker B:But like, what is this going to mean for like Christmas numbers?
Speaker B:You know what I mean?
Speaker A:I. I'm gonna.
Speaker A:For those of you driving with kids in the car, I'd like to point out that this is in no way suggest that Santa Claus is not real because he's a stud.
Speaker A:I met him a couple times.
Speaker A:He's amazing.
Speaker A:Santa's real.
Speaker B:You know, until Mike, you know, I tell my kids, Santa's real.
Speaker B:Santa's real.
Speaker B:Just not for us.
Speaker A:No, he for you guys too.
Speaker A:You just don't let him in the house.
Speaker A:You got good security, right?
Speaker A:Yeah, yeah, yeah.
Speaker B:The ring is doing his job at my house.
Speaker A:We don't trust him, son.
Speaker B:Yeah, yeah.
Speaker B:Neither should you.
Speaker B:Come on, man.
Speaker B:And if I'm gonna give my kids a, a Nintendo switch, they gotta know that gift came from me.
Speaker A:Yeah.
Speaker A:I paid for that.
Speaker B:Yeah.
Speaker B:Not that guy.
Speaker A:Santa didn't do this.
Speaker B:Come on, bro.
Speaker A:Yeah.
Speaker B:Anyway, the guy drinking Coca Cola, in.
Speaker A:Any event, exactly my point.
Speaker A:The problem for me is as I've gotten older, the luster of crazy Christmas has lost its, its shine to me.
Speaker B:Really?
Speaker A:Yeah.
Speaker A:Because I know the, the history of how Coca Cola took a saint that was kind of fading it out.
Speaker A:And they built the ecosystem, what we consider to be modern day Christmas, around them.
Speaker A:And it was literally all done.
Speaker A:It all boils down to they wanted to increase sales of Coca Cola during the winter and they were losing sales over this, like, cold period of time because people drank Coca Cola when it was hot.
Speaker B:Right.
Speaker A:So said, how do we do that?
Speaker A:Well, we ingratiated into a holiday and they took what was.
Speaker A:Because prior to this, Easter was the biggest holiday for most Americans, the birth of Christ.
Speaker A:I mean, they had a lot of reasons from a religious standpoint why that was the focus.
Speaker A:And it pivoted over time to Christmas.
Speaker A:And now, I hate to use the cliche Term of Hallmark holiday.
Speaker A:But we've built up.
Speaker A:And I'm all for spending time with family regardless of what you're pressure around Christmas, man.
Speaker A:There's a ton of pressure around Christmas.
Speaker B:Families, you know, and it's like.
Speaker A:But it's not, it's.
Speaker A:It's even outside of religion now.
Speaker A:Now if you're a Muslim household, for example, you have this pressure to do something for your family because everybody else around you is celebrating this time.
Speaker B:Speaking as one, I grew up in a household that I wouldn't say was very religious.
Speaker B:Right.
Speaker B:But religious enough to not give me anything for Christmas.
Speaker A:Yeah.
Speaker B:So I would wake up every year, like this year.
Speaker B:And mind you, this is at a point too when I already knew, like Santa was not real.
Speaker B:Right.
Speaker A:So I'm like, wait, wait, you thought he wasn't real?
Speaker B:Right, right.
Speaker B:I thought he was.
Speaker A:Now you know he's real again.
Speaker B:Now I know he's real again.
Speaker B:And I would wake up thinking like, this year they're gonna give me something like one thing.
Speaker B:Nope, nothing.
Speaker B:But I'd always, you know what I do.
Speaker B:Back then there was that.
Speaker B:What's that movie?
Speaker B:A Christmas Story.
Speaker A:Yeah.
Speaker A:Yeah, that one.
Speaker A:You should try it on.
Speaker B:Yeah, you should on Repeat for like 24 hours.
Speaker A:Yeah.
Speaker A:TBN or TBS.
Speaker A:TBS.
Speaker A:TBS.
Speaker B:More to come on that later.
Speaker B:Yeah, TBS or TNT or something.
Speaker B:It was just on repeat for 20 minutes and I've just watched that all day long.
Speaker B:Thank God the NBA is taking over Christmas now.
Speaker B:Now I can just watch NBA all day.
Speaker B:But why I think Christmas numbers are going to do so poorly this year for retail companies.
Speaker B:I think There was an article that I recently found where Jill, see if you could find this up.
Speaker B:It was one of those Buy now pay later services run.
Speaker B:One of those companies that were showed that 25% of its users are using their service to buy groceries, to finance groceries.
Speaker A:Yeah.
Speaker A:This is so sad.
Speaker B:25% of the users.
Speaker C:Yeah.
Speaker B:Here you go.
Speaker B:From CNBC.
Speaker B:More Americans are financing groceries with Buy now pay later loans and more are paying those bills late.
Speaker B:Survey say.
Speaker B: in: Speaker B:That's staggering, bro.
Speaker B:Right.
Speaker B:The survey said 41 of respondents said they made a late payment on a Buy now pay later loan in the past year, up from 34% the year.
Speaker A:The sick part about this, for Buy now pay later services, they make their money when you pay late.
Speaker A:So this is a trend performing well in their favor, really.
Speaker A:I mean, Buy now, pay later services charge late fees.
Speaker B:Yeah, yeah, they charge.
Speaker A:They don't charge heavy interest.
Speaker A:The retailer pays for the services.
Speaker B:Right.
Speaker A:But they do get late fees.
Speaker B:But I mean, isn't that, like, for them, it's like they're highly predatory.
Speaker B:Highly predatory.
Speaker B:And you're like skating on thin ice.
Speaker A:Right?
Speaker B:I mean, at some point you got to feel like when these numbers start getting out of control.
Speaker B:This is bankruptcy, bro.
Speaker B:Written all over it.
Speaker A:Yeah.
Speaker A:It's not good.
Speaker B:No.
Speaker A:What?
Speaker B:You recorded me with your meta glasses?
Speaker A:What are you talking about?
Speaker B:You're flexing on me.
Speaker B:I'm looking like.
Speaker B:I don't know if there's a shine from the wall behind you as we're.
Speaker C:Talking about, people can barely afford groceries.
Speaker C:You bring out your medical.
Speaker B:Yeah.
Speaker A:Firsthand point of view for saying the.
Speaker B:Jeff Goldblum of podcasting.
Speaker B:Yeah.
Speaker B:So, like, you hear, you see stuff like this, and it's like, okay, these numbers are only rising.
Speaker B:And what, what is that going to do to the retail numbers?
Speaker B:But also what is it going to do to all these people that feel the pressure?
Speaker B:You know, we know consumer and behavioral economics.
Speaker B:They're still going to go out and buy the things that they want just to give the fam their families.
Speaker B:You know, a lot of people have shown they don't have the discipline to hold back and have these tough conversations with their families.
Speaker A:They're going to finance April 26th.
Speaker B:Yeah.
Speaker A:So I guarantee those numbers are worse now.
Speaker B:Way worse.
Speaker A:For sure.
Speaker A:Those numbers are way worse.
Speaker B:Yeah.
Speaker B:No, the one, the one that I saw.
Speaker B:Was there a recent one that.
Speaker A:Came out is that we saw.
Speaker B:Yeah, I thought.
Speaker B:I thought I saw it come out.
Speaker A:Let's think that through.
Speaker A:This was a problem in April, and you saw another article about this now in December or arguably November.
Speaker A:Right.
Speaker A:So that, that's, that's a, That's a bad thing.
Speaker A:And here's the part, we talked about this on our show.
Speaker A:I don't know, a year ago, two years ago.
Speaker A:Yeah.
Speaker B:We were, we attacked these buy now, pay later services because we're like, please don't do this.
Speaker A:Yeah.
Speaker A:They're highly predatory.
Speaker A:Highly predatory.
Speaker A:To me, if you're going to protect the American consumer, this is not a product you offer.
Speaker A:Yeah.
Speaker B:How, how is there not more laws against this?
Speaker A:Because I, I think that people go, well, you're not paying interest.
Speaker A:It's effectively layaway for the Internet age.
Speaker A:Layaway was always legal.
Speaker A:But the difference that people don't see is in layaway, you didn't get the product until you paid for it in its entirety.
Speaker A:Yeah.
Speaker A:You put it away, it was yours, you can go back and get it.
Speaker A:But you got to make your payments and then actually pick up the product.
Speaker B:Right.
Speaker A:Whereas this one, you make a payment upfront, you get your product, you get the use and enjoyment of it, and then you finish paying it off over time.
Speaker A:The problem is most Americans struggle with the paying it off over time part.
Speaker B:They're not thinking ahead and they've already.
Speaker A:Got the dopamine hit from getting it.
Speaker B:Or.
Speaker B:And then, and then you couple that with, you know, a surprise expense that they get that they have to now pay for.
Speaker B:The thing of.
Speaker B:Think of like a, A main.
Speaker A:It's not even a surprise anymore, is it?
Speaker A:I mean, every single month I got something coming up that's like hitting you.
Speaker B:That's a valid point.
Speaker A:We always think like, oh, you know, you're never going to know, you know, next month, bro, you know, there's going to be a charge that comes up.
Speaker A:If it's not new tires on your car, it's going to be, you know, the seasonal time of year.
Speaker A:If it's not somebody's birthday, it's Valentine's Day.
Speaker A:If it's not Valentine's Day, it's Halloween.
Speaker A:If it's not Halloween, it's Christmas.
Speaker B:Or is the renewal of your car insurance where they pay your registration, bro.
Speaker B:Or pay registration.
Speaker B:Or the renewal of your car insurance where they take like a 25% upfront.
Speaker A:Yeah.
Speaker B:And then.
Speaker B:And then they.
Speaker B:They break it down to monthly payments.
Speaker A:And since when did car insurance become like a mortgage?
Speaker C:It's ridiculous.
Speaker A:It's not right.
Speaker B:It's getting out of control, bro.
Speaker A:I. I remember looking.
Speaker A:I don't even.
Speaker A:Oh, God.
Speaker A:I get these alerts from Farmers, the app on my phone, because I use Farmers, and I have an umbrella policy which includes some of the autos.
Speaker A:The.
Speaker A:The number has gone up by 33 in like the last two years.
Speaker B:Easy, easy.
Speaker A:And I'm looking at this stuff going.
Speaker A:And then they change where they charge in California.
Speaker A:I don't think it's across the country.
Speaker A:But I'm sitting here going, like, what the hell happened?
Speaker A:Why did car insurance get more.
Speaker A:Did I miss, like, the memo they had?
Speaker B:They all.
Speaker B:And all the companies adopted it together.
Speaker B:You're right.
Speaker B:And I feel like in Cal.
Speaker A:Different.
Speaker A:It's extortion, man.
Speaker A:It's extortion.
Speaker A:And I know there's going to be somebody listening who's going to DM me and say, chris, I'm in insurance.
Speaker A:Insurance companies don't make that Much money.
Speaker A:Okay, fine.
Speaker A:Why am I getting charged so much?
Speaker B:Right.
Speaker A:That's all I'm saying.
Speaker B:Yeah.
Speaker A:Every time we do an episode on this, like somebody who's in the insurance sales business will tell me why I'm.
Speaker B:Wrong and happy to cover though, let me know.
Speaker A:But here's the, here's the thing is I legitimately don't understand because there are reinsurers for insurance companies.
Speaker A:So your insurance company takes a loss, they submit a claim to their reinsurer.
Speaker B:Exactly.
Speaker B:I don't think a lot of people understand that.
Speaker A:So yeah, there's lots of backdoor insurance, if you will, that's non retail facing where insurance companies have their own insurance for things and there's so on and so forth down the trail.
Speaker A:You look at the stuff and you.
Speaker B:Go, they limit their own risk.
Speaker A:Everybody hedges their bets.
Speaker A:Every institution that's large and scalable enough will have some type of hedging strategy for economic losses.
Speaker A:If you're a bank, you've got a hedging strategy in place where you just hedge with other instruments, financial instruments.
Speaker A:If you're an insurance company, you hedge with reinsurance.
Speaker A:Standard process.
Speaker A:And I look at all this stuff and I think to myself, okay, insurance and all this stuff's going up.
Speaker A:Okay, yeah, sure.
Speaker A:Costs for building a home are going up, costs for cars are going up.
Speaker A:But at the same time, are you really getting charged that much more as an insurance company for damages to V?
Speaker A:Aren't vehicles safer now?
Speaker B:They should be.
Speaker A:Right Again, I'm just confused on how this is all working.
Speaker B:Speaking of safer cars, did you see this Waymo car that just drove into the police standoff the other day?
Speaker A:Yeah, that was awkward.
Speaker A:I, I won't do it.
Speaker A:I don't care about you.
Speaker B:I have yet to do it.
Speaker A:I'm not.
Speaker C:Oh, I did.
Speaker C:I went, I went on a Waymo twice.
Speaker A:That's why I'm looking in his direction.
Speaker A:Yeah, I'm like, I know you did it.
Speaker B:Did you see that video?
Speaker B:I didn't see that video.
Speaker B:That should be enough for everyone to be like, no, thank you.
Speaker A:Nope, I'm out.
Speaker A:Nope, nope, not doing it.
Speaker C:Yeah, it was a pretty smooth ride though the first time I, I use it.
Speaker C:Except one time or one part of it, we made a right turn.
Speaker C:There's a.
Speaker C:So it was a one way right turn.
Speaker C:Right.
Speaker C:But there's three lanes and this is in San Francisco and so it's going to make the right turn, but it cuts so hard that all of us like jerk in the car to the side.
Speaker A:All of Us jerked in the club.
Speaker B:Come on, man.
Speaker A:I apologize for Jill.
Speaker A:You guys were all jerking in the.
Speaker B:Car same the same week 50 comes out with the Diddy video.
Speaker B:It's a wholesome show, okay?
Speaker B:It's the wholesome show.
Speaker A:It's a wholesome show.
Speaker C:It makes it a hard right turn.
Speaker B:Come on.
Speaker B:All right, we can't even get.
Speaker B:Show took a left turn.
Speaker B:And then.
Speaker C:On the four, it's going for the far left lane, but then right in front of it is a car that stopped with the hazards on.
Speaker C:So then it has to go and make a sharp right turn or into the right lane, into the middle lane.
Speaker C:So that, that was a little exciting.
Speaker B:Okay.
Speaker B:But it, but it, but it caught it anyway.
Speaker B:So my point, my point is.
Speaker B:Okay with, with more evs like this, right?
Speaker B:And are Tesla's even allowed to drive on, on their own now?
Speaker A:Full auto now?
Speaker B:No, not yet.
Speaker B:Right.
Speaker B:In some cities, yeah.
Speaker A:They can't drive.
Speaker A:Independent people.
Speaker B:Yeah, I'm aware of.
Speaker A:But they can do stuff like.
Speaker B:There's a thought there were some cities where they could.
Speaker A:Right.
Speaker B:I don't know.
Speaker A:This is not my subject matter.
Speaker B:But, but that should theoretically just make it that a little bit more safer, right?
Speaker A:You would think.
Speaker A:But you know, again, we're all paying crazy money for insurance and all this needs to be revolutionized.
Speaker A:And so here's my, here's my underlying just question.
Speaker A:Right?
Speaker A:And we'll get to the AI part of the show later on.
Speaker A:There's a lot there I want to cover, but let's just say AI takes, it takes over.
Speaker A:You have vehicles Tesla.
Speaker A:We know Tesla's infrastructure is largely about mapping everything out and having this ability with more data to have self driving vehicles.
Speaker A:Let's say we get there.
Speaker A:Does my insurance goes down, right?
Speaker B:It should.
Speaker A:It should, right?
Speaker B:They're not going to.
Speaker B:They're not going.
Speaker A:If I opt into self driving, shouldn't my insurance go down?
Speaker A:Because I am not Tesla's insurance go up.
Speaker B:Right.
Speaker A:I'm not making the driving decisions anymore.
Speaker A:I'm just sitting in the car.
Speaker B:Yeah.
Speaker B:Yes.
Speaker A:At this point it's not my fault.
Speaker C:Right.
Speaker A:I'm not saying I shouldn't be getting any speeding tickets.
Speaker A:There should be no reckless driving.
Speaker A:There should be no dui.
Speaker A:Right.
Speaker A:You, you remove all that from the equation and you just put me in a glorified taxi cab that I pay for.
Speaker B:Now that would be the ultimate flex for Tesla eventually.
Speaker B:Right?
Speaker B:Buy our car and opt in to pay for the additional.
Speaker B:Was it ten grand for the auto self drive and we will Give you our own insurance.
Speaker B:That's slightly cheaper because you opted for that.
Speaker A:Yeah.
Speaker A:Done.
Speaker B:Done.
Speaker A:Elon, Call us.
Speaker B:You're welcome.
Speaker A:We got you, dog.
Speaker B:You're welcome.
Speaker A:Out here, just making millionaires, minting them.
Speaker B:Easy marketing geniuses over here.
Speaker A:We'll cut you in 10 of that deal.
Speaker A:It's a problem.
Speaker A:Now watch.
Speaker A:Somebody actually gets rich from that.
Speaker A:And we're like, damn it.
Speaker B:Yeah.
Speaker A:All right, so 11 increase on buy Now, Pay later use.
Speaker A:Klarna specific use up 45 by volume since last year alone.
Speaker A:That's one buy now, pay later services.
Speaker A:Up 45 from just last year.
Speaker A:Yeah.
Speaker B:And that's not a product that people are sprinting to because it's beneficial to them.
Speaker B:No, no.
Speaker A:I'm sure there's a whole cohort of people on social media going, listen, let me tell you why by now.
Speaker A:Come on.
Speaker B:No, I'm not listening to those people.
Speaker A:This according to Klarna record.
Speaker A:Black Friday lifts Klarna to 45% November growth.
Speaker A:God, if you're them, you have that in your headline.
Speaker A:You're like, yes.
Speaker A:Got consumer trends.
Speaker A:Let's go over these.
Speaker A:These are interesting footwear.
Speaker A:Birkenstock made a dramatic leap from last year's bottom rankings to claim the number one spot for adult shoe brands, while Timberland captured the second place.
Speaker A:I would have never called that man.
Speaker B:Don't I owe you the name of that?
Speaker B:The one that I got.
Speaker B:Was I supposed to get you the off brand one?
Speaker B:Yeah, my bad.
Speaker B:I just remembered with the Birkenstock, that.
Speaker A:Private text message there that we had talking about him being a bad friend.
Speaker A:Now he knows why.
Speaker B:Yeah, yeah.
Speaker B:Those Hawaii trips that you guys go on.
Speaker B:You guys talk all the smack.
Speaker B:It's cool.
Speaker A:Exactly.
Speaker A:Why.
Speaker B:It's fine.
Speaker A:This is why.
Speaker B:I understand.
Speaker A:We.
Speaker A:Look, I understand there's a chicken egg argument here.
Speaker A:Burger socks are big amongst the younger Jewish.
Speaker A:That the youth community is adopting Birkenstocks with tube socks with two.
Speaker B:Yeah, that's fine.
Speaker A:Yeah.
Speaker A:You can't wear.
Speaker B:You can't wear the low ankle socks with Birkenstocks, bro.
Speaker A:You shouldn't be wearing any socks with Birkenstocks.
Speaker B:No, no.
Speaker B:That's a little weird if it doesn't have the.
Speaker A:The heel cover.
Speaker B:Okay.
Speaker A:You should not be wearing socks.
Speaker A:Those are slippers.
Speaker A:Those are slippers, bro.
Speaker B:Stop.
Speaker A:Those are slippers.
Speaker B:That's so gross, bro.
Speaker B:You got to wear socks with your sandals.
Speaker A:We have all.
Speaker B:You don't wear socks.
Speaker A:You've got weird OCD issues when it comes to stuff.
Speaker B:If you don't Wear.
Speaker B:If you don't wear socks with your sandals, the.
Speaker B:Your confidence level with your toes is a little too high for me.
Speaker B:I don't know if we could be friends.
Speaker A:I got sexy toes.
Speaker A:I know this.
Speaker A:People in my DMs tell me this all the time.
Speaker A:Chris, send me a foot photo.
Speaker A:Send me a foot photo and I'll be honest.
Speaker A:I send them some time to time.
Speaker B:Yeah.
Speaker A:Shout out.
Speaker A:Shout out to my guy.
Speaker A:Mark.
Speaker B:You gotta, you gotta feel body by Mark.
Speaker A:Excuse me.
Speaker A:You look like you're in shape.
Speaker A:Technology.
Speaker B: dominated as: Speaker B:You got those right?
Speaker A:No, I had the AirPod Pros.
Speaker A:The AirPod Fours are out.
Speaker A:I have the AirPod Pro.
Speaker A:I think threes is what I have.
Speaker B:Okay.
Speaker B:I'm happy with my AirPods man.
Speaker B:I don't need an update on those.
Speaker A:Fun fact, I did not know this.
Speaker A:You know you're supposed to swap out.
Speaker A:Allegedly swap out your AirPods every eight to six months.
Speaker B:Why?
Speaker A:Because I guess they get eight to six months.
Speaker B:Who does it like that?
Speaker A:Who says eight months?
Speaker B:Who says why not?
Speaker A:I said eight.
Speaker B:Why not six to seven months.
Speaker A:Six first and then I didn't want to mess it up.
Speaker B:Yeah, you saw what I did there.
Speaker B:7.
Speaker B:Why not?
Speaker B:Why you got to go?
Speaker A:Why?
Speaker A:You see the new trend, by the way?
Speaker B:Why are you attacking.
Speaker A:Every dad is like, yes, I got him.
Speaker A:So in gaming, Sony's new PS5 Slim and Pro models led the category followed by Nintendo Switch 2, which all makes sense.
Speaker A:IPads made it come back.
Speaker A:Return to the top 10 after previous absence.
Speaker A:I'm going to call this now.
Speaker A:IPads are going obsolete.
Speaker A:You're going to get a new fold out Apple iPhone which is the size of an iPad and it's going to dramatically eat into their sales.
Speaker A:And I think they did it on purpose.
Speaker A:I think they wanted to get rid of their iPad inventory and reduce that before rolling that product out.
Speaker B:Yeah, remember that.
Speaker B:They're notorious for this.
Speaker B:Somebody did a full breakdown on the ipod nanos back in the day and you literally just remove the screen and turn into a watch.
Speaker A:Yeah, brilliant.
Speaker A:I have the watch.
Speaker A:Do you have the watch?
Speaker B:I have after, after buying the watch the first time.
Speaker B:There's no, there's no world where I'll never own another Apple.
Speaker B:I will always own one.
Speaker B:Always.
Speaker A:Be careful.
Speaker A:There are a lot of die hard watch aficionados who were like that.
Speaker C:Son of a.
Speaker B:That's fine.
Speaker B:I mean, no, if I go to, if I go to a nice dinner and at, at that Time in the, in the.
Speaker B:In the future when I can afford that nice dinner and I can also afford a nice watch, I'll wear a nice watch.
Speaker B:That nice dinner.
Speaker A:I'll be honest with you.
Speaker A:I can't afford nice dinners anymore.
Speaker B:These watches are not suitable for, like, suits.
Speaker A:Yes, they are.
Speaker B:No.
Speaker A:A little too thick.
Speaker A:You want to know why I am the tech, bro.
Speaker A:Listen, I. I got the meta display glass wrist band on.
Speaker A:On one side with the beads.
Speaker A:Yeah.
Speaker B:The boot.
Speaker B:The Buddhist beads.
Speaker A:Those are the beads.
Speaker A:Everybody, if you're driving.
Speaker A:What the hell was that squirrel sound?
Speaker A:That.
Speaker A:Was that what that is?
Speaker A:Got the.
Speaker A:Got the Apple watch, got the iPhone.
Speaker A:I'm pretty much walking technology right now.
Speaker A:You are technological.
Speaker B:Yeah.
Speaker A:Speaking of which, beauty products side's favorite category, luxury fragrance, Baccarat Rouge 540 claims the number one position site.
Speaker A:You own Baccarat Rouge.
Speaker B:I don't.
Speaker B:I've seen.
Speaker B:I've seen the.
Speaker B:The ads, though that.
Speaker B:Which says a lot.
Speaker A:While Sabrina Carpenter's sweet tooth perfume became the only celebrity fragrance to break into the top 10.
Speaker A:I still don't know what the hell Sabrina Carpenter does.
Speaker A:Okay.
Speaker B:What do you mean?
Speaker B:She's.
Speaker B:She's a.
Speaker B:She's a singer.
Speaker B:And this is.
Speaker B:This is very controversial in our household.
Speaker B:Serena Carpenter, because she's a singer?
Speaker B:No, the song.
Speaker B:Okay, so she had, she had that famous espresso song.
Speaker B:It's a great, great song.
Speaker B:Kids love it.
Speaker A:I don't know what you're talking about.
Speaker B:It's a great song.
Speaker B:You've heard it for sure.
Speaker B:You've heard it.
Speaker B:And kids love it.
Speaker B:Right?
Speaker B:And then she came out with her next album.
Speaker B:It was very, like, it was a very good song for, for kids.
Speaker B:And then the next album comes out and like, they're, they're excited to.
Speaker B:To hear it because Howell listens to it and we pull it up in the cart and.
Speaker B:No, the album cover, bro, is wild.
Speaker A:It's.
Speaker B:And the kids.
Speaker B:And the kids.
Speaker B:Yeah.
Speaker A:What is.
Speaker A:What does wild mean?
Speaker A:Is like sexually seductive.
Speaker B:Yeah, yeah, yeah, yeah, yeah.
Speaker B:Like, like, she's, like.
Speaker B:She's in a certain position.
Speaker A:I wouldn't know that because I don't look at.
Speaker A:I haven't seen a woman since the day I got married, bro.
Speaker B:It comes.
Speaker B:You play the song, it comes up on the screen.
Speaker B:What do you want me to do?
Speaker B:I can't control that.
Speaker A:Avert your eyes as a respectable married man.
Speaker A:For all those who listen to the show, they go, saeed is a good husband.
Speaker A:No, he's not.
Speaker A:He's out here ogling And Sabrina Carpenter's not ogling.
Speaker B:I'm trying to cover it because my.
Speaker A:Comes up while you're driving.
Speaker A:You averted your eyes.
Speaker A:You can't even be safe.
Speaker B:It comes up.
Speaker B:It comes up while he's driving.
Speaker A:Apple Ray Ban displays on.
Speaker A:You're just like, yes.
Speaker A:No.
Speaker B:It's wild.
Speaker B:I remember we had to shut it down.
Speaker B:Shut the whole operation down quick.
Speaker B:It was crazy.
Speaker A:Yeah.
Speaker A:What was the song about?
Speaker B:I don't even know the new song, but truffle butter.
Speaker C:Yeah.
Speaker B:There it is.
Speaker A:Kids, Wholesome shows for everybody.
Speaker B:Don't do yourself the favor and look up truffle butter.
Speaker A:No.
Speaker A:If you go to a French restaurant, it's truffle infused butter.
Speaker B:Oh, boy.
Speaker A:What are you talking about, sir?
Speaker B:Show it off the rails.
Speaker A:Are you aware of this different definition?
Speaker A:No.
Speaker B:Yes.
Speaker B:Truffle butter with.
Speaker A:Don't do that.
Speaker A:Just do that part after trouble.
Speaker A:Butter again.
Speaker A:Oh.
Speaker A:All right.
Speaker A: s bounced from sixth place in: Speaker A:Yeah, man.
Speaker A:I don't know why.
Speaker B:Honestly, if.
Speaker B:Okay, then that's.
Speaker B:That's kind of wild.
Speaker B:That's a big expense, right?
Speaker A:Why?
Speaker A:I get that you sleep a lot.
Speaker A:I remember.
Speaker B:I remember.
Speaker B:Oh, you should break this down to people.
Speaker B:This is actually really insightful because you've walked into, like, a factory that.
Speaker B:That makes mattresses.
Speaker A:Oh, yeah.
Speaker A:It was great, right?
Speaker A:Yeah.
Speaker B:And it's literally.
Speaker B:It's literally just a branding game, so.
Speaker A:Okay, I gotta figure out a way to do this without violating India's.
Speaker A:All right, I got it ready.
Speaker A:So there were.
Speaker A:When the early days of foam mattresses came out.
Speaker A:There was really one supplier on the east Coast.
Speaker A:It was two partners.
Speaker A:The partners split up, and one moved to the west Coast.
Speaker A:But because mattresses were so difficult to ship, even then, they had to come up with a revolutionary way to do it.
Speaker A:And the guy on the west coast did it.
Speaker A:And he's the reason why you saw all these online mattress brands pop up, like Casper, for example.
Speaker A:It's because he found a way.
Speaker A:And if you guys have ordered one recently that are these foam mattresses, to vacuum seal them, pack them in plastic, and they come to you in these rolls.
Speaker B:Yeah.
Speaker B:And then when you cut it open, just expands.
Speaker B:Right.
Speaker A:So he was looking for financing at the time, and I was, you know, really interested in doing it.
Speaker A:And I always make a point whenever somebody's asking me for financing, for business loans, regardless what position I'm in, I want to go and check out the, the space I want to go to, you know.
Speaker B:Yeah.
Speaker A:Kick things around.
Speaker B:I want to see it.
Speaker B:I want to see the factory.
Speaker B:I want to see how, how it's made.
Speaker A:By far and away, one of the most fascinating tours I've ever taken.
Speaker A:It was a massive warehouse, right?
Speaker A:Massive.
Speaker A:I mean, just look like Disneyland.
Speaker A:And you walk in and are multiple brands being made?
Speaker B:Like, are the brands buying it from this, this supplier?
Speaker A:I'll get there, my friend.
Speaker A:I don't get there.
Speaker A:But yes, essentially they are all from the same two factories.
Speaker A:Wow.
Speaker A:And there are some different ingredients which you can add to the foam.
Speaker A:So the way this works is the, the factory floor was largely just mattresses that were stored up and saved there.
Speaker A:And what they did is they had effectively from like a zero waste product.
Speaker A:It was really fascinating.
Speaker A:So he had a scientist and the scientist came up with this machine that built really incredible stuff.
Speaker A:So if you think about it like a long assembly line and a conveyor belt.
Speaker A:At the very beginning of the conveyor belt, there is this jet that sprays down fluid in a straight line about the width of a mattress.
Speaker A:Right.
Speaker A:Of a king size mattress.
Speaker A:And that just.
Speaker A:The conveyor belt just sprays constantly and it just rolls all the way down this long chain.
Speaker A:As it goes all the way down the chain, this foam rises.
Speaker B:Oh.
Speaker B:So it's kind of like a 3D printer.
Speaker A:It's just like spray foam where you spray it in and it rises up fast, but it rises up a little slower.
Speaker A:By the time it gets the end of the conveyor belt, the foam has risen to the size of normalized foam, like a normalized foam mattress.
Speaker A:Depending on what chemicals they add to the foam, they can change the.
Speaker A:You want a cooler bed?
Speaker A:Do you want a firmer bed?
Speaker A:They just change the density of the foam.
Speaker A:And they have a lot of chemicals that can add to it to change the dynamics of how you interact, interact with it.
Speaker A:Or they can put layers down, like one spray layer of foam versus another spray layer firm.
Speaker A:They have different components, Right.
Speaker A:But by the time it gets to the end, it's this giant long sheet of mattress size material.
Speaker A:Because they do, you know, once one type of mattress at a time and this, another machine just cuts them, just cuts them in these massive sizes and they just do size runs depending on what size mattresses they're making.
Speaker A:But the waste product that they have from this goes into other products that they sell to other people.
Speaker A:People want stuffing for animals, they want pillows or something like that.
Speaker A:They want packing material.
Speaker C:Right.
Speaker A:So they're selling the foam to everybody.
Speaker A:So there's really cradle to grave, no waste in this product.
Speaker B:Right.
Speaker B:That's how, that's how I saw recently how, how they make almond milk too.
Speaker B:Right?
Speaker B:It's from, it's from the almonds that are like broken or chipped that they wouldn't want to include.
Speaker B:And when they're selling them, so they use that and they turn it into almond milk.
Speaker A:And I've gone to one of those factories, I've gone in a noodle factory, which was super interesting up in San Francisco, where all they make was noodles.
Speaker A:And it was the cleanest.
Speaker A:Everything in the factory is white.
Speaker A:He even ordered the machines in white.
Speaker B:Just to make it look cleaner.
Speaker A:Everything.
Speaker A:Everybody had hair nets on.
Speaker A:You couldn't even get into the facility without a full suit on.
Speaker A:Hair nets.
Speaker B:That's why it should be.
Speaker B:That's the way it should be, though.
Speaker A:He was immaculately like OCD clean about it.
Speaker A:And I said, is this, is this the level?
Speaker A:He's like, no, we go way above and beyond.
Speaker A:He's like, I've had bad experiences with food poisoning and bad food, and I never want anybody else to get that from our product.
Speaker B:I respect that.
Speaker A:Everything was white.
Speaker A:Like, I mean, I'm talking like glossy, like enamel white.
Speaker A:He's like, I want to be able to see a speck of dirt.
Speaker A:It was really fascinating.
Speaker A:But the, the mattress stuff, to answer your question, they private label for everybody.
Speaker A:So everybody who sells in those vacuum sealed packages, get them from these two guys.
Speaker A:And these are not guys you would ever go like, hey, like, oh, that guy's a billionaire.
Speaker A:That guy's rich.
Speaker A:Or this guy.
Speaker A:You would never know.
Speaker B:You would never know.
Speaker A:The building isn't marked.
Speaker A:There's a giant machine that has chemicals in it.
Speaker A:All he buys is the chemical product, which doesn't have a huge cost.
Speaker A:His biggest cost was shipping, and he figured out a way to vacuum pack them.
Speaker A:And ironically, I got some of the earliest vacuum sealed foam mattresses from him because he wanted to test how shipping was done.
Speaker A:I said, look, I got to pay retail, whatever that is, but I would love to get them from.
Speaker B:Yeah, yeah, yeah, that's really cool.
Speaker A:It was really cool.
Speaker A:I really enjoyed it.
Speaker A:Yeah.
Speaker B:But, yeah, that's a, that's a big expense for them to jump from sixth place to second place.
Speaker A:Yeah, yeah, it's, it's, it's weird.
Speaker A:And they are hyper expensive.
Speaker A:Reill, let's go to the next article here.
Speaker A:Actually, before we do that, I want to finish up one more thing.
Speaker A:Overall total of 95% of Black Friday shopping.
Speaker A:$11.2 billion was financed and 11.2 billion.
Speaker A:95% financed.
Speaker A:Wow.
Speaker A:That's insane.
Speaker B:That is insane.
Speaker A:That's not even like a small statement.
Speaker A:That's a.95% of Black Friday shopping.
Speaker A:$11.2 billion was financed.
Speaker A:Granted some credit card.67% of that 7.9 billion was financed on debt that consumers do not expect to be able to repay in the next 30 days.
Speaker B:Oh, so just continue to gain.
Speaker A:So, yeah, effectively 67% of the purchases made on Black Friday were not something that someone could pay cash for that day.
Speaker B:So watch, watch what's going to happen.
Speaker B:I mean, if we start tracking, you know, house.
Speaker B:Household.
Speaker B:Household debt.
Speaker B:Right?
Speaker B:Meaning like credit card debt.
Speaker B:Right.
Speaker B:Right now it's going to start, it's going to start spiking and then you're going to see a big dip come January, beginning of the year.
Speaker B:Come January, a lot of that because people, A lot of people get their bonuses and they pay down the credit card debt.
Speaker B:But then watch what happens after that.
Speaker B:Right.
Speaker B:It's just going to continue to increase again.
Speaker A:Can I, can I just take a little anecdotal side note here, Jill.
Speaker A:You.
Speaker A:Did your dad get bonuses when you were a kid?
Speaker B:Yes.
Speaker A:Okay.
Speaker B:My dad had his own small business.
Speaker A:Yeah.
Speaker A:Not everybody relates to this.
Speaker A:So I understand that there might be some disconnect.
Speaker A:Why the hell are we giving bonuses out in February?
Speaker A:Like, we've just pushed so hard into like corporate American culture.
Speaker B:Why, why, why do corporations pay bonuses out in February or March or sometimes it's, I guess it's in the, in the first quarter, Right.
Speaker A:Regila, Google that and see if you figure out why, why, why corporations switched to paying in February.
Speaker A:I actually don't know the answer to that.
Speaker A:And I'm sure there's, there's economic implications here, but we all know that American consumers, because of the holiday season, Thanksgiving, Christmas, Kwanzaa, or, you know, whatever you're into.
Speaker A:Whatever.
Speaker B:Whatever.
Speaker A:Yeah.
Speaker A:But yeah, no matter.
Speaker A:Whatever it is, you know, if these consumers all need to buy more things during this period of time and it is the end of the year and you're paying them an annual bon.
Speaker A:It makes no sense.
Speaker B:And it makes no sense.
Speaker B:And you know what's always, what's always really sad too, is her.
Speaker B:Corporations pay annual bonuses in February because it is often after the previous fiscal year has ended, allowing companies time to assess performance and calculate bonuses.
Speaker A:So here's, here's what I would call shenanigans, right?
Speaker A:It Calls it falls for a key window for retaining employees who might otherwise leave before the bonus is paid.
Speaker A:See, that to me bothers me a big part.
Speaker A:Right.
Speaker A:That asterisk is you're basically baiting them into staying throughout the next year.
Speaker A:If you have to bait employees into staying, you're a terrible company, number one.
Speaker A:Number two, let's just be clear here.
Speaker A:The way bonuses works from a financial perspective is companies will accrue for bonuses throughout the year.
Speaker A:It actually starts in Q1 and it goes all the way to Q4.
Speaker A:You accrue for those bonuses.
Speaker A:So basically you're running a little bit of money off the top every single, every single month, every single quarter to pay for bonus at the end of the year.
Speaker A:Because you have a bonus pool that you're trying to hit.
Speaker B:Yeah.
Speaker B:And depending on if you fulfill that whole pool.
Speaker B:Right.
Speaker B:It will determine how much you get.
Speaker A:Right, right.
Speaker A:But again, I understand that the company's performance for December might not be known until you get all your financials together for, you know, December and January.
Speaker A:Right, I get that.
Speaker A:But you know how much you've accrued and you got a general feel for how the company's going to do if something comes up that alerts you to some significant problem in January or February because you have the end of the year financials, the end of the quarter financials at that point in time, then I would say you took your eye off the ball and you made a big ass mistake.
Speaker A:But that isn't your company's, your individual employees problem.
Speaker B:And this, let's be real here.
Speaker B:So, and with per the performance reviews too, there, there have been years in the past where, you know, you're working all year long, you've done everything in your part to make sure that you've performed very well.
Speaker B:And then unfortunately the company didn't, you know, make enough profits throughout the year and didn't accrue enough for you to get your bonus pool.
Speaker B:Right.
Speaker A:Right.
Speaker A:Y.
Speaker B:Well, guess when, guess when the, the, the employee like finds out.
Speaker A:Yeah, February.
Speaker B:After they've already spent the money that they were hoping to get later to pay for it.
Speaker A:You know, I have a solution for this.
Speaker A:Right.
Speaker A:I can proffer up a solution.
Speaker A:This is, we've given out Tesla Brilliance ideas tonight.
Speaker A:Insurance.
Speaker A:We solve the insurance industry's problems now.
Speaker A:We're going to solve this problem.
Speaker A:Yeah.
Speaker B:Corporate America, take a seat.
Speaker A:Every single person in corporate America, every single one of you need to adopt the philosophy that I'm about to put forward because you're going to have a happier Employee culture, number one.
Speaker A:Number two, you're going to have better responsible executives.
Speaker B:Oh, okay.
Speaker A:The way this works in most companies, the higher you are to the top of the company's food chain, the more your bonus is largely based off how the company performs.
Speaker A:And the logic is because you as an executive have more influence on the end result of how the company works.
Speaker A:Using the banking industry as a proxy for an example here, a teller is not going to influence the company's trajectory anywhere near as much as an executive vice president, chief operating officer of the company.
Speaker B:Company makes sense.
Speaker A:So the executive vice president, chief operating officer of the company gets a bonus that's 80% based on how the company does and 20% based off their individual performance.
Speaker A:Whereas a teller would get something that's 80% off their performance and 20% all the company does because you want that person to be incentivized for them to perform well because they're not going to really change the dynamic of the company's.
Speaker B:I guess that makes sense and that's a good point for everyone to understand.
Speaker A:Yeah.
Speaker A:There are different spreads and the different versions and variants of this.
Speaker A:But here's my, here's my suggestion.
Speaker A:Here's the brilliance.
Speaker A:That is the higher standard.
Speaker B:That's what we're doing.
Speaker A:Executives are people who have for example a 70, 80, 90% impact on the company and therefore their bonus based on the company does.
Speaker A:You should get paid in February.
Speaker A:Every other employee in the company, those tellers, those senior vice president, the mid level managers who don't have that much of an influence in the company who are largely paid off of their performance.
Speaker A:I can gauge their performance by year end.
Speaker B:Oh yeah.
Speaker A:Oh yeah.
Speaker A:They should get paid their bonuses in December.
Speaker A:And if you're a senior level executive who get paid a whole hell of a lot more can get your big ass bonus check in February.
Speaker A:You can wait two months.
Speaker B:It's not, it shouldn't be a surprise to anyone that if you're working for a smaller private company like let's just say the company that my wife works for, small dental practice.
Speaker B:Right.
Speaker B:She gets a, she gets her.
Speaker B:Albeit significantly smaller than like a big corporation where it's a huge, like a modest.
Speaker B:Modest.
Speaker B:Right.
Speaker B:You, they get it like at their Christmas party.
Speaker B:Yeah.
Speaker A:Which I think is great.
Speaker B:Right.
Speaker A:Like that, that, that's a Christmas party.
Speaker B:Right.
Speaker A:You know what make people go to your Christmas party?
Speaker A:Hand them a check.
Speaker B:I'm there.
Speaker A:Yeah.
Speaker B:I bet you, I bet you they won't miss out.
Speaker A:Fun fact.
Speaker A:When we started the bank, we used to do that.
Speaker B:Oh, yeah.
Speaker A:Scott.
Speaker B:Before my time.
Speaker A:Scott, our CEO and.
Speaker A:And one of my closest friends, actually, probably my closest friend at this point in time.
Speaker A:No offense.
Speaker A:I.
Speaker B:Again, multiple shots, bro.
Speaker B:Look, well, that's a shot to me, too.
Speaker B:To.
Speaker A:I talk to Scott every morning by 8am at the latest.
Speaker A:Probably four or five times a day and multiple times on the weekend.
Speaker A:I mean, no offense, boys, but you.
Speaker B:Guys got some coffee?
Speaker B:I mean, two or three.
Speaker B:I mean, two or three times a day.
Speaker B:Two or three times on the weekend.
Speaker B:I mean, that ain't nothing.
Speaker A:No, it ain't nothing.
Speaker A:But, I mean, if we're going with straight numbers here, bro, you're lacking.
Speaker B:Numbers are.
Speaker A:I'm lacking?
Speaker A:You're lacking.
Speaker C:I'm busy, man.
Speaker C:I'm trying to make a five to nine.
Speaker A:Yeah, he's out here working his ass off.
Speaker B:You're out here trying to make a dollar out of 15 cents.
Speaker A:Lacking.
Speaker A:Yeah, inside's over here just, you know, just smiling at me.
Speaker A:But Scott's making the calls, baby.
Speaker A:Yeah.
Speaker B:Yeah, you're right.
Speaker A:You can't be putting up Braun numbers, Brian.
Speaker A:Ouch.
Speaker B:Hey, still 10 points a game, bro.
Speaker B:Yeah.
Speaker A:I want them Luca numbers.
Speaker B:Look at you.
Speaker A:Thank you.
Speaker B:I'm so happy, bro.
Speaker A:I had a clip.
Speaker A:I asked Chat JBT to give me.
Speaker B:An example, like, using the show.
Speaker A:Well, you can make a reference over Luka Donich.
Speaker B:Yeah, yeah.
Speaker A:Anecdotally.
Speaker A:J.J. reddick's not doing too bad either.
Speaker B:Oh, doing amazing.
Speaker A:Good for you.
Speaker A:Yeah.
Speaker A:See, look at you, man.
Speaker A:I don't know that.
Speaker A:I just.
Speaker A:I actually saw somebody on a clip on social media.
Speaker A:All the smoke.
Speaker B:All the smoke.
Speaker A:Yeah.
Speaker B:Matt Barnes, Captain Jack.
Speaker A:Yeah, yeah.
Speaker A:So I. I do think that that when he came around during the holiday parties and he gave out, he would give people, like, an envelope with their name on it, and he would hand them out and shake their hand and say thank you.
Speaker B:Yeah, I. I think that resonates with people.
Speaker A:It resonates.
Speaker A:It's culture, man.
Speaker B:And that's.
Speaker B:I don't know what.
Speaker B:What needs to happen for.
Speaker B:For culture to have, I guess, more of an importance in the workplace again.
Speaker A:You know, I think AI might destroy that.
Speaker A:And we'll get to where AI is going at the end of the show.
Speaker A:I do want to spend a good amount of time here.
Speaker A:So we talked about buy now, pay later.
Speaker A:We talked about credit in the holiday season, Black Friday.
Speaker A:Now we're going to talk about the repercussions of what's really creating a divide.
Speaker A:And Adam from Mind Pump.
Speaker B:Mind Pump.
Speaker B:Mind Pump, Mind Pump.
Speaker A:I had to look at you.
Speaker B:No, no, I was.
Speaker B:I was waiting to see if he listened to old episodes.
Speaker A:Oh, yeah.
Speaker B:We gotta always.
Speaker B:We gotta always reference the show multiple times that we do.
Speaker A:Joe Rogan.
Speaker A:Joe Rogan.
Speaker B:Joe Rogan.
Speaker B:Just so that we trick the algorithm.
Speaker A:Yeah, the algorithm actually knows when you speak about shows, you see the suggestions.
Speaker A:But that isn't the reason why for my pump.
Speaker A:This.
Speaker A:This show would not exist if it were not for Adam and Justin and Sal and Doug.
Speaker A:And they helped us a lot in the early stages of the show.
Speaker A:And actually Adam was the one who sent me this next.
Speaker A:Well, Adam and I constantly have messages over text about stuff and usually about finance.
Speaker A:And we debated this back and forth and I actually sent him this chart.
Speaker A:So I want to share with everybody here.
Speaker A:One in 10 adults in the US are millionaires.
Speaker A:That sounds sexy.
Speaker A:But there's a problem with this statement in this chart that Rajeel pulled up.
Speaker A:If you're driving, I'm gonna explain it to you.
Speaker A:Don't worry about it.
Speaker A:If you're watching the show on Spotify and YouTube.
Speaker A:Thank you.
Speaker A:Subscribe.
Speaker C:Hit that like.
Speaker A:That's right.
Speaker C:Drop a comment.
Speaker B:This.
Speaker B:This from the Census Bureau.
Speaker A:It's a little outdated.
Speaker A: This is from: Speaker A: UBS Global Wealth Report from: Speaker A:Excuse me, too much energy drink.
Speaker A:Today, 23.8 million U.S. adults have a net worth over $1 million.
Speaker A:About 9 to 10% of adults.
Speaker A:This is based on asset data, not solely income.
Speaker A:Though surveys can include self reports.
Speaker A:Sources like AP News and Reuters confirm similar numbers.
Speaker A:No widespread evidence of lying, but estimates vary significantly and slightly by methodology.
Speaker A:So here's what I'll say.
Speaker A: This chart shows that in: Speaker A:Okay.
Speaker A: In: Speaker A:And about 54.6% were the middle class having about 35 to $100,000 in income.
Speaker A:Wow.
Speaker A:Okay.
Speaker A:Now I would argue that using today's numbers and inflation, everything else, that really the middle class at 35,000 to 100,000 really include that There's a lot of poor people in that space.
Speaker A:Still, we call it the middle class back then.
Speaker A:Even.
Speaker A:Even back then.
Speaker A:I think the middle class has always been skewed to a lower level to make it look like it's bigger than it is.
Speaker B:Oh, yeah, right.
Speaker A:Because when you think about it in the context.
Speaker A:And you and I were talking about this pre show a little bit that the lower class is such a low number.
Speaker A:That it's, it's almost defined as too small.
Speaker B:Oh yeah.
Speaker B:And what they use to, to measure it is I think extremely outdated.
Speaker B:You'll see if you can find this article and pull it up.
Speaker B:There was an article that went viral this week on somebody's substack before, before.
Speaker A:You do that, the ones.
Speaker A:Yeah, yeah, yeah.
Speaker B:I want to finish because it ties in well to this.
Speaker A:Yeah.
Speaker A:So.
Speaker A: So in: Speaker A:The middle class, however, shrunk from 54.6% down to 39.1% and low income went from 32.3% down to 23.3%.
Speaker A:And what we're really creating here with this is a barbell shaped economy.
Speaker A:Millionaire status is no longer impressive because inflation has made millionaire worth less.
Speaker B:Well, forget even impressive like, like you still feel like you're struggling.
Speaker A:Yeah, you do.
Speaker A:And I'm a millionaire.
Speaker B:Yeah.
Speaker A:I constantly think about money.
Speaker A:Right.
Speaker B:I'm not a millionaire, but I bet you you are.
Speaker B:I would consider myself in the middle, middle income area and I definitely would consider myself.
Speaker A:What do you value our friendship as?
Speaker A:Oh, that's a seven figure friendship.
Speaker B:Right.
Speaker B:There you go.
Speaker B:Got to get you into the fuzzy knuckles, bro.
Speaker B:Give me the fuzzy knuckles.
Speaker A:You got to rub, crave friction.
Speaker A:You didn't do it like that.
Speaker A:I was, I wanted to rub knuckles.
Speaker A:That's a different gesture, bro.
Speaker B:I can't do this with you, Richard.
Speaker B:I can't do the show with you anymore.
Speaker C:For those that are driving, they're playing rock, paper, scissors.
Speaker B:There you go.
Speaker A:Except we're not tapping the rocks.
Speaker B:Yeah, right, right, right.
Speaker A:It's rock, pole, scissors.
Speaker A:So we're creating, and this is my argument with Adam was number one, the idea of being a millionaire still has the cachet of having a high net worth.
Speaker A:The problem is, is that billionaires are the new millionaires.
Speaker A:That's just fact, mathematically like it.
Speaker B:Or I mean, is there really that many billionaires now?
Speaker A:No.
Speaker A:But I would say that the difference between a billionaire and a millionaire is very significant.
Speaker B:I would say, I would say in my mind, I would say a 10 million dollar net worth is, is the new millionaire.
Speaker A:Okay, that's fine.
Speaker A:I don't.
Speaker A:But I think by coin, using current terminology, here's the problem is.
Speaker A:But everybody else is poor now by comparison.
Speaker A:Right?
Speaker A:That's the problem.
Speaker B:That's the problem.
Speaker A:You're creating a.
Speaker A:A lower class working class in an upper class.
Speaker A:So let's go to the next chart.
Speaker A:I want to get to that years just after this Next one is U.S. income versus house prices.
Speaker A: This is from: Speaker A:And I think this is a great chart.
Speaker A:It's got even little graphics on it which I think are sexy.
Speaker A:US Income and house prices.
Speaker A: in: Speaker A: he median annual US income in: Speaker A:Wildly low.
Speaker A: sales price of a US house in: Speaker A:12.4% 30 year fixed mortgage rate.
Speaker B:Yeah.
Speaker B:So that.
Speaker B:And.
Speaker B:Boomers will routinely like to cite this.
Speaker A:Yeah.
Speaker B:Right.
Speaker A:You guys don't know how bad you had it.
Speaker B:Yeah.
Speaker B:We had 12.4% interest rates, right?
Speaker A:Yeah.
Speaker A:But your home was only worth about 4x.
Speaker B:Yeah.
Speaker A:Okay.
Speaker A: Versus today,: Speaker B:Yeah.
Speaker A: in: Speaker A: % increase change from: Speaker A:And even with a 6.8% 30 year mortgage rate, the problem you have is the problem of compound interest over time.
Speaker B:Yes.
Speaker A:And if you're compounding interest at $416,000 minus 20% versus $882,000 minus 20%, that N number is so much more significant.
Speaker A:It makes the 12.4% interest rate at that price look way more advantageous.
Speaker B:Way more advantageous.
Speaker B:And the part, the, the thing about these charts and this particular topic that always bothers me is we're talking about household incomes.
Speaker B:1985, that was one person working.
Speaker B: Now: Speaker C:Sometimes more than one job.
Speaker B:Yeah, sometimes.
Speaker B:Sometimes one.
Speaker B:One of the people are working more than one job.
Speaker A:I think more often than disclose.
Speaker A:It's.
Speaker A:It's three jobs across hold, you know.
Speaker B:And it's like, man, it's, it's just not the same.
Speaker B:It's not apples to apples.
Speaker A:No, it's not.
Speaker A:Let's get in that survey.
Speaker A:Yeah.
Speaker B:So it wasn't even a survey, it was a full breakdown.
Speaker B:So this, it was an article written by Michael Green.
Speaker B:I actually got onto it from the team over there at breaking points and they did a full, full breakdown.
Speaker B:A really good other like independent media platform that they cover a wide range of topics but you listen to other.
Speaker A:Media platforms.
Speaker B:Well this, they're particularly good for when it comes to like politics.
Speaker A:Whoa, politics.
Speaker B:We can't talk about politics on this show, bro.
Speaker A:Banned from advertising due to politics.
Speaker A:You would think that's not political reason.
Speaker B:You say one word and all of a sudden you get trumped.
Speaker B:I don't know.
Speaker B:Boom.
Speaker A:Was there an ed on the end of that?
Speaker A:You're right.
Speaker A:So the sad part was that was an adjective before, now it's an adjective now.
Speaker A:Or I don't.
Speaker A:It's confusing.
Speaker B:Yeah, it's confusing.
Speaker B:Changing its meaning.
Speaker B:I don't know.
Speaker B:So what they, what he covered in this article was they went over the U. S. Poverty line, right.
Speaker B:And the u. S. Poverty line currently, you know what it sits at?
Speaker B:Take a wild guess.
Speaker A:It's something stupid low $32,000.
Speaker A:Yeah, that, that, that makes no sense.
Speaker B:That's the poverty line.
Speaker B:And then so this article by Michael Green basically been circulating around everywhere.
Speaker A:You put something on the desktop.
Speaker A:He did a little icon.
Speaker B:Oh he did, he did some basic math and basically found that it, it actually should be four times the amount.
Speaker B:Should be around $140,000.
Speaker A:Yeah.
Speaker A: reason why essay claimed that: Speaker B:And he went, he did all through the math.
Speaker B:He went through household expenses, that's gross.
Speaker B:Health care, child care expenses.
Speaker B:I mean these are things.
Speaker B:Look, in order to be someone that is an active participant in today's society, right.
Speaker B:It doesn't like the poverty line of 32 000.
Speaker B:They don't even take into consideration owning a smartphone.
Speaker B:How can you participate in society without owning a smartphone nowadays, right?
Speaker A:It'd be difficult.
Speaker B:It would be extremely difficult.
Speaker A:There are homeless people with smartphones by the way.
Speaker A:And I don't mean that in like a facetious tongue in cheek way.
Speaker A:I mean like that's how important they are.
Speaker B:They'll take zell bro.
Speaker B:Yeah, I've seen it.
Speaker A:Yeah, no, yeah, not only that but it just, it's.
Speaker B:But they'll literally talk about like cost of certain items like a landline in the report saying like a landline now is significantly cheaper than what it was before a landline Bro, how many people you know own a landline?
Speaker A:I don't have one anymore.
Speaker B:I. I had one for a little bit in case of an emergency.
Speaker A:Fun fact, the studio, other than the.
Speaker A:The.
Speaker A:The fiber optic cable that we have running through here for Internet, we have nothing else.
Speaker B:I had one for.
Speaker B:For like two or three years at our house, like, in case of emergency, because, you know, if there's emergency, everyone trying to call, get on, get on the.
Speaker B:Get in a call through.
Speaker B:Is it.
Speaker A:Damn.
Speaker A:I'm setting up a flare.
Speaker B:And then two, three years went by.
Speaker B:Nothing happened.
Speaker B:I'm like, bruh, what am I doing?
Speaker B:I'm like, like, I got.
Speaker B:I'm gonna be here with my family.
Speaker B:I'm gonna hopefully get up on out of here if I'm here at home, right?
Speaker B:So.
Speaker B:So that.
Speaker B:That went viral and he broke down all the math.
Speaker B:Now, I don't know if it should be that high, right?
Speaker B:Because the argument against this is, well, don't live where you live.
Speaker B:Go move somewhere else.
Speaker B:But I hate that argument too.
Speaker A:I don't like the argument, right?
Speaker B:I grew.
Speaker B:I grew up here, right?
Speaker B:I grew up in a certain area.
Speaker B:I'm not saying that I should live in the exact same community.
Speaker A:It ignores the idea that some communities get revitalized and your cost of living goes up.
Speaker A:So I grew up here.
Speaker A:I'm from here.
Speaker B:I look at Brooklyn.
Speaker A:Why.
Speaker A:Why hasn't my salary gone up?
Speaker A:Commiserate with the world around me.
Speaker A:So now all these hipsters roll in and they're willing to pay top dollar and they can get higher jobs or something.
Speaker B:But then the pot.
Speaker B:But then the poverty line doesn't even take into consideration.
Speaker B:Consideration higher education costs doesn't even cover college expenses.
Speaker B:Yeah, come on, bro.
Speaker B:We know of all the expenses that have risen over the past, like, 20, 30 years.
Speaker B:Take a look at the.
Speaker B:There you go.
Speaker A:Child care.
Speaker A:32.
Speaker A:So let's.
Speaker A:Let's just start right off top before you even get into these numbers.
Speaker A:And I want to go over them in a second.
Speaker A:Basic needs, he calls, you get taxed, okay?
Speaker A:And I don't care where you're at.
Speaker A:Let's just call it 30, right?
Speaker A:10, 14, 20, 28, you know, 32, 000.
Speaker A:Right off the top.
Speaker A:Yeah, 40.
Speaker A:Yeah, 30,000.
Speaker B:Right, right off the top.
Speaker B:And I don't know, man, like, 42,000 for.
Speaker A:For.
Speaker B:And you know what's really sad about this?
Speaker A:And so now you're down to 90 something, right?
Speaker A:Let's just call it 90.
Speaker A:Just.
Speaker A:Let's just.
Speaker A:Let's just call it 90.
Speaker A:Let's call it 100.
Speaker A:Let's be gracious here.
Speaker A:So you have 40,000 off top for taxes.
Speaker A:A hundred thousand dollars left.
Speaker A:32,773 for child care.
Speaker A:Yeah.
Speaker A:If you don't have family.
Speaker B:Yeah, yeah.
Speaker A:Housing, $23,267.
Speaker A:You're telling me that housing is cheaper than child care?
Speaker B:That's blasphemy.
Speaker A:What's going on?
Speaker A:I mean, food, $14,717.
Speaker A:We were talking before the show.
Speaker A:My steak from a butcher costs as much as a steak from a high end restaurant.
Speaker A:And I had to cook the damn thing.
Speaker A:What's wrong with that picture?
Speaker B:Yeah, man.
Speaker A:Okay, fine.
Speaker A:Transportation, $14,828.
Speaker A:Healthcare, 10,005.
Speaker A:67.
Speaker A:Our healthcare industry is a whole different problem.
Speaker A:If you're a government employee and you want to fix something.
Speaker A:Fix that.
Speaker B:Yeah.
Speaker B:What is it?
Speaker B:Fix that.
Speaker B:I think, I think the, it's like the number one, number one cause for bankruptcy is like medical bills.
Speaker A:Yeah, I believe that.
Speaker A:And then other essentials.
Speaker A:$21,857.
Speaker A:You can do the math here, but 32 plus 23 is 55.
Speaker A:55 plus 14.
Speaker A:69.
Speaker A:Number 69 plus 14.
Speaker A:Right.
Speaker A:83.
Speaker A:83 plus 10.
Speaker A:93.
Speaker A:You've already eaten into your money.
Speaker A:Now you're cash on.
Speaker A:You're Already above, you're 21.
Speaker B:You're already above the average household income of, what was it, 83,000.
Speaker B:Yeah.
Speaker B:So look at that.
Speaker B:And even if you say some of these numbers are skewed, okay, it's, it's a little bit much for certain regions of the country.
Speaker B:Okay, how much?
Speaker A:Maybe 10 grand off.
Speaker A:You're still 20,000 negative according to this.
Speaker B:Give him 20 grand off.
Speaker B:What are we talking about here?
Speaker C:Stop.
Speaker A:I, I agree.
Speaker A:And this is where I say, like, the numbers are, are we, we are holding on to ideals and logic of wealth that were taught to us over the last 40 years that have not kept up with inflation.
Speaker B:No.
Speaker B:And, and everyone has.
Speaker B:And I feel, I feel especially bad for the millennials.
Speaker B:Right.
Speaker A:Yeah.
Speaker B:Because they're the ones that were told, look, I look no further than like my own situation.
Speaker B:Like I said, go to school, get a good education, go get a job, follow the system.
Speaker B:The system will take care of you.
Speaker B:No, man, it doesn't always take care of you.
Speaker B:It doesn't, you know, so you, you need to think about the, like, you, you gotta, you gotta consider, like, when my parents try to give me like, parenting advice, right?
Speaker B:I'm like, well, hold on like you didn't have two kids around the same age at the same time.
Speaker B:It's not apples to apples.
Speaker B:Right.
Speaker B:So the current living situation in the economy with what I'm dealing with is not the same that you were dealing with.
Speaker B:You don't know, you don't necessarily know what this is like.
Speaker A:Here's what I'll say is I, I know we sound negative or concerned, and I think concern is probably the right way to look at this.
Speaker B:No, but like you, all these media outlets are putting out rosy optimism on like a, a great picture of like the stock market is doing well in this and no, this is how most people feel.
Speaker A:That's right.
Speaker A:So this is what bothers me, is the narrative that you're getting from talking heads is one that feeds the monster of the ecosystem that they're in.
Speaker A:Right.
Speaker A:Look, who pays for cnbc?
Speaker A:I watch CNBC all day long.
Speaker A:I'll tell you right now, those guys are wildly disconnected to reality.
Speaker A:Wildly disconnected.
Speaker A:Either.
Speaker B:Either they're wildly disconnected to reality or they're being paid to be super optimistic.
Speaker A:Well, exactly.
Speaker A:So who pays the bills?
Speaker A:All the companies they typically report on.
Speaker A:And I'm not saying they're reporting unfairly, but I'm saying they, they can certainly have a spin on things that favors the people who pay them money to do so.
Speaker A:But more important than that, here's my problem is we all need to reframe our mindset around the ideas of wealth.
Speaker A:And I mean this in the most honest, genuine way.
Speaker A:Okay.
Speaker A:We think that wanting more money is something that's bad.
Speaker A:You've been taught your whole life that money is not the root of happiness.
Speaker A:I get that.
Speaker A:And there is clear evidence to suggest that once humans get past their basic needs for, for human life and living, that the diminishing returns on more money that you get.
Speaker A:Yes, that's true.
Speaker A:I'm not saying you should desire to create millions of dollars a year.
Speaker A:But if you're saying, hey, Kris, I just want a hundred thousand dollars, six figure job, I'm looking at 140,000 thinking that's the poverty line, brother.
Speaker A:Right.
Speaker A:So I'm saying there's nothing wrong with you saying I want a $200,000 a year job because $200,000 a year job is not the same job that you thought it.
Speaker A:No, it's not the same job that your parents led you to believe that it was.
Speaker A:I know.
Speaker A:Nurses working in CICU in Newport beach, of all places, making $85,000 a year, working 12 hours a day for four days a week on night shifts.
Speaker A:Explain to me how those women and men are supposed to survive on that.
Speaker B:Right?
Speaker A:It's insane.
Speaker B:It is insane.
Speaker B:And now, now imagine now, now take it a step further.
Speaker B:If the promise is fulfilled with what we can expect out of AI and tens of millions of jobs get replaced.
Speaker A:Yeah.
Speaker A:Yeah.
Speaker B:If.
Speaker B:What if that, what, what if that.
Speaker A:Promise is replacing the jobs?
Speaker A:Isn't is only one part of the problem.
Speaker B:No, not.
Speaker B:I'm not forget replacing.
Speaker B:They're not going to be able to just like you don't need this job anymore.
Speaker A:You can take this job.
Speaker A:There's an entire element we haven't even talked about as a society that comes down from this.
Speaker A:It's not just losing jobs.
Speaker A:Okay.
Speaker A:That, that's the immediate obvious fear.
Speaker A:What people are missing is the most likely near term risk to them.
Speaker A:And we'll get into some thoughts on AI and how this plays out and I can walk you through it.
Speaker A:It's, it's, it's coming and I can explain exactly how.
Speaker A:But the fear isn't losing your job.
Speaker A:It's an easy target because it's quantifiable.
Speaker A:But here's the problem, Saeed.
Speaker A:If you're doing less analytical work for me, why am I paying you as much?
Speaker B:Right?
Speaker A:I can have AI do the analytical work.
Speaker A:I just need you to oversee it.
Speaker A:Which means you have to have less engagement.
Speaker A:And I can query this 24 hours a day.
Speaker A:You're just here to oversee.
Speaker A:And so you really just a quality control point for me at this point.
Speaker A:So I'm just going to pay you less.
Speaker B:Yeah.
Speaker A:Now how many Americans are going to make less money because their skill set is less concentrated now, now imagine if.
Speaker B:That, that whole position that you're in, right.
Speaker B:Where you actually get a chance to negotiate.
Speaker B:Right.
Speaker B:Is completely removed from a human factor, human element.
Speaker B:And now you got to talk, you got to convince the AI model.
Speaker A:Yeah.
Speaker A:And that that's a problem that's going.
Speaker B:To be, you know, that's coming because you know what's going to happen.
Speaker B:It takes the emotion right out of it.
Speaker B:Right.
Speaker B:You can't, you can't be accused of, you know, some higher boss that quote unquote doesn't like you and is playing favoritism.
Speaker B:Go talk to the AI model.
Speaker B:The AI model is going to decide whether you deserve a bump or not.
Speaker A:So I want to connect the dots on this real quick before we jump in the AI portion of the show, which I think is valuable even though we're an hour in.
Speaker A:There's asset holders that's your wealthy class moving forward benefiting from inflated housing stock values because they own both of them.
Speaker B:Mm.
Speaker A:Often older demographics and they feel wealthy on paper.
Speaker A:Right.
Speaker A:But they might be liquidity strapped in and of itself because they're not creating enough income to maintain a continued growth trajectory.
Speaker A:Their growth is largely dependent on the market.
Speaker A:That's a whole cohort again of problems there.
Speaker A:There's an upper uber 1% that, that has the income and the assets.
Speaker A:But there's an entire generation of Americans who've got a home, they've got stock, and it's at all time highs, but they're making a couple hundred grand a year.
Speaker A:But they've been in the, in the, in the game for longer.
Speaker A:They're, they're really at risk too, because those assets go either way.
Speaker A:And all of a sudden you go from like, oh, I got all this equity, I'm cushioned, I'm good to shit.
Speaker A:I need a plan.
Speaker A:Right.
Speaker A:That's.
Speaker A:We saw that during the great financial crisis where home values were eviscerated.
Speaker A:I'm not saying that all recessions are housing recessions.
Speaker A:Matter of fact, the majority of them aren't.
Speaker A:Adam and I had that conversation not too long ago as well.
Speaker A:I said, look, I'm more worried about this overinflated stock market than I'm about home values right now.
Speaker A:Then there's the second type of American that's the income.
Speaker A:Only households, right.
Speaker A:Younger cohort more exposed to inflation, diving into the buy now, pay later services like we've talked about at the top of the show.
Speaker A:Living paycheck to paycheck.
Speaker A:And used to it, that's the worst part.
Speaker A:That's the most beaten down, underlying sad statement is we have created a generation of Americans who believe that living paycheck to paycheck is just life.
Speaker B:Yeah.
Speaker A:And that's so messed up financing.
Speaker A:They even finance daily needs like groceries.
Speaker A:I mean, so when you think about that in the context of how perverse this has gotten.
Speaker A:Right, Is that Americans are growing increasingly comfortable with the unknown and the possibility that the next check could be the one that fails them.
Speaker B:Yeah.
Speaker B:So if you're listening to the show and you're like, okay, so what should we do, Chris?
Speaker B:Right?
Speaker B:Just talking to Chris or not talking.
Speaker A:Nobody wants your opinion, right.
Speaker B:You want to become, you want to become an informed investor, right?
Speaker B:You want, you want to, you want to make decisions based on, on things that you learn about.
Speaker B:Things that you learn about on the show.
Speaker A:Even if you don't, though, let's be clear about something.
Speaker A:Even if you don't become an informed investor because you listen to the show and you don't have disposable income, fine.
Speaker A:The promise of Dave Ramsey is so pervasive because he tells everybody to do something they can all do.
Speaker A:We can all cut back on expenses somewhere.
Speaker B:Yeah.
Speaker A:So Dave Ramsey gives you a solution that you can do without having to go find more money.
Speaker A:You just got to look at your spending and go, I'm going to cut this.
Speaker A:And everybody can get the hit of dopamine from just cutting one expense.
Speaker A:Don't go buy coffee tomorrow.
Speaker A:Congratulations.
Speaker A:You follow Dave Ramsey's course.
Speaker A:There you go.
Speaker B:Right.
Speaker A:And it sounds sick, but that's how you get hooked into things.
Speaker A:But that little victory is the dopamine hit that you need to continue down the path, assuming you do it well.
Speaker A:If you're going to learn anything from the show and you can't go out and get more money and you can't go invest, learn to be objectively intelligent about the world around you and what's really happening.
Speaker A:Okay.
Speaker A:I work like, for example, understanding that wanting more money is not a crime.
Speaker A:Okay.
Speaker B:I like that.
Speaker A:Our perspective demonizing money and wealth is outdated.
Speaker A:It's wrong.
Speaker A:The concept of your job being consistent and always there is false.
Speaker A:There was a dream that was the American dream, and that dream no longer exists.
Speaker A:That doesn't mean that you can't have a great life.
Speaker A:It just means the life that you should expect to be.
Speaker A:Your dream life needs to be malleable.
Speaker A:You need to be flexible and understand that you can get money from other places, you can get jobs from other places, and losing your job is not the end of the world.
Speaker A:Building a company, working a side hustle, doesn't mean that you're poor.
Speaker A:Something you should be embarrassed about.
Speaker A:You should be proud of it.
Speaker A:And at the end of the day, you can survive and build wealth in this economy, but it's going to take work and there are no shortcuts.
Speaker B:Yeah, exactly.
Speaker B:It is going to take a lot of work.
Speaker B:This is the part of the show where we get into the open AI and AI in general.
Speaker B:Right.
Speaker B:So it's no secret that OpenAI has been losing shit ton of money, right?
Speaker B:Yeah.
Speaker B:And.
Speaker B: be profitable at least until: Speaker B:It's going to require approximately 207 billion in funding to get it there.
Speaker B:Okay.
Speaker B:Now, you know the government's gonna dump all the money they can into AI, whether that's infrastructure, whether that's data centers, whether.
Speaker B:Whether that's semiconductors.
Speaker B:Right.
Speaker B:Because they, the White House released an article and this probably flagged flag the show again.
Speaker B:But back in July, how they want to win the race, the global RA AI to get to AGI as fast as possible.
Speaker B:Right?
Speaker A:Yeah.
Speaker B:And they're, they're not going to stop until they feel like they, they've done so.
Speaker B:So you.
Speaker A:I think the, the race to AGI artificial general intelligence is a fool's, Aaron, because I think there's a bug flying around your head right now.
Speaker A:It's hilarious.
Speaker A:Oh yeah.
Speaker C:I was in here earlier too.
Speaker B:I just wanted to find the sexiest person.
Speaker A:Yeah, yeah.
Speaker C:I went to me first.
Speaker A:Yeah.
Speaker B:And then it passed.
Speaker A:Didn't come to me at all, did it?
Speaker A:That's my haircut.
Speaker A:I don't, I don't fly around mullets.
Speaker A:So it's a fool there.
Speaker A:And I think that AGI is.
Speaker A:You don't need artificial general intelligence, a reasoning model that can think on its own to already have a problem.
Speaker A:And I can outline a problem for you that's already going to impact Americans like we just talked about.
Speaker A:And it's really three things that already exist now that are just going to start working better together.
Speaker A:And as you go down this rubric, if you will, you're going to find that the problem is already here and it's already building and we just, it's in front of us and we just don't see it every day.
Speaker A:Okay.
Speaker A:Number one, what we searched with a large language model is a context window and it basically builds what I like to call like a recipe.
Speaker A:So essentially if you go to learning a learning language model like Chat GPT and you say give me the steps of how to do X bake a cake, it's going to give you step after step after step and it's going to give you the instructions.
Speaker A:Right.
Speaker A:And as these learning language models get more and more sophisticated and get more and more data coming into them, they're going to become very, very good at giving us instructions based on a request or query.
Speaker A:And that is step one.
Speaker A:We're already arguably there.
Speaker A:Arguably.
Speaker A:Right.
Speaker A:You have learning language models that can scour the Internet.
Speaker A:And I think there's a whole part that'll be manipulated over time of people how to bake cake.
Speaker A:Beginner friendly.
Speaker A:This is ChatGPT.
Speaker A:There you go.
Speaker A:Ingredients, equipment needed, right down to the steps and instructions.
Speaker A:Perfect.
Speaker A:And, and this is, and I'm using recipes here because it's just an easy way, but you can do this with anything.
Speaker A:Legal documents.
Speaker A:How to get A divorce.
Speaker B:How to build a studio.
Speaker A:How to build a studio.
Speaker A:Podcast studio.
Speaker A:Largely.
Speaker A:The studio that we're in was done by me querying ChatGPT, and even down to the design.
Speaker A:So there's lots of things.
Speaker A:Now, it's not perfect, there's lots of errors.
Speaker A:Anybody who's used ChatGPT understands that.
Speaker A:But what I'll tell you is, is this is only the beginning.
Speaker A:And as they start to query things, people are gonna start to manipulate websites because it knows that ChatGPT is going to go out and find websites.
Speaker A:So if you create enough websites that give false information, you can essentially manipulate ChatGPT.
Speaker A:Slap that bug, buddy.
Speaker A:So it's a problem right there.
Speaker A:That's step one.
Speaker A:We're already at step one.
Speaker A:Step two is AI subject matter, expertise via agents.
Speaker A:And the best way I can articulate this to most people listening is you have niche AI already, Nano Banana, which is getting wild.
Speaker A:Some of the AI agents can create images that are specific, spectacularly realistic.
Speaker B:Oh, yeah.
Speaker B:No, it's.
Speaker B:It's now officially at a point where you can't distinguish whether it's.
Speaker B:It's AI generated or not and.
Speaker A:Or not.
Speaker A:And you worry who has access to this.
Speaker A:I showed you one the other day where you can now have a physical actor acting a scene, run it through AI, ask AI to change the outfit the actor's wearing and the, the look and aesthetic of the exterior and the lighting, and it'll change it.
Speaker A:And it's the same physical actors acting, just with those changes made to it, and it's indistinguishable from reality.
Speaker B:And the, The.
Speaker B:The scariest part about it all is I don't think that we have political players in place or.
Speaker B:Society as a whole that is mature enough and disciplined enough to use these, These products, right.
Speaker B:These services responsibly.
Speaker B:You don't, you know, so that's the part that scares me about it all.
Speaker B:And it's.
Speaker B:Before anybody could lay down any kind of framework as far as, you know, structure and some regulatory guidance, it's.
Speaker B:It's so far gone from that now.
Speaker A:Well, I mean, look what happened to the adult industry, if you will.
Speaker A:And I'm trying to use my words here, so you guys can read into them.
Speaker A:That industry went from taboo, right, to like, ooh, you're dirty.
Speaker A:You go there to.
Speaker A:Now every.
Speaker A:Everybody is one of these creators, right?
Speaker A:And has access to a site and does all these things.
Speaker A:So.
Speaker A:And then now there's a social media platform for those types of creators, sometime fans.
Speaker B:Yeah, yeah.
Speaker A:And well done.
Speaker A:And so there's an entire ecosystem built to this.
Speaker A:And it's not super taboo.
Speaker A:Nobody talks about it.
Speaker A:But now you've got celebrities coming from that world, right?
Speaker A:So it's, you've de.
Speaker A:Stigmafied it.
Speaker A:And this is what's going to happen with a lot of this AI creation is it's, it's going to be scary, then it's going to be taboo, and then it's going to be mainstream.
Speaker A:And right now I think we're in that scary phase and we're not in the taboo phase because you're going to get this whole like, just like Apple watch versus Rolex.
Speaker A:I don't wear that.
Speaker A:I'm, I, I'm an actor.
Speaker A:I'm an actor.
Speaker A:I don't, I don't work with AI.
Speaker A:Well, yeah, nobody worked green screens either and blue screens, you know, 50 years ago.
Speaker A:And guess what?
Speaker A:Now a lot of that's done in Hollywood.
Speaker A:That way it could be done tastefully, right?
Speaker B:And artistically.
Speaker A:But it's not, it's not just video.
Speaker A:It's not just this stuff.
Speaker A:You can create AI agents for anything.
Speaker A:You can get AI for voiceover work, people voice, you know, models.
Speaker A:You can get AI for nuclear science.
Speaker A:So models can have subject matter expertise.
Speaker A:And we know the models that are publicly available to us, right?
Speaker A:But I guarantee you, every company on the planet with resources is following what I laid out to you before on a previous show is number one, you got to have data.
Speaker A:Number two, you got to commit to the model, right?
Speaker A:And then number three, you got to let it grow and you got to be willing to adjust with it over time.
Speaker A:You do those things, have the data, commit to the model and you will be able to develop something over time.
Speaker A:And I guarantee these companies are doing this right now with their subject matter expertise.
Speaker A:If you're at Google, you want a model internal internally, which is going to replace people, but be really efficient at finding a way to make you relevant still.
Speaker A:And all these models are going to have those instructions.
Speaker A:And the third part of this is the, is a programming action from text, which is already starting to happen.
Speaker A:You have programmers who are now obsolete because you can go to an AI model and you can say, hey, make me a program that does this, make me a website that does this, make me an app that does this.
Speaker A:Okay, all three of those things are cool, but then combine them, let them talk to one another.
Speaker B:Yeah, right.
Speaker A:And here's the problem.
Speaker A:The friction in that system isn't the AI models anymore.
Speaker A:It's us.
Speaker A:We are the friction in that system, if AI models talk to one another, you think they'll be using English and text?
Speaker B:JSON, bro.
Speaker A:JSON code.
Speaker A:They're going to talk to each other digitally and we will no longer be necessary.
Speaker A:Now you've got a model that can give instructions, a model that can create the imagery, the, the visuals, and a model that can literally build and talk.
Speaker B:To each other on the back end without us even in a program knowing.
Speaker A:That's right.
Speaker B:Right.
Speaker B:I think we.
Speaker A:You.
Speaker B:You sent me 60 minutes piece.
Speaker A:Huge, huge thing this week.
Speaker B:Yeah.
Speaker A:It went.
Speaker B:And they've been covering, I guess, this angle for multiple episodes now, because I went down the rabbit hole.
Speaker A:This was the scariest one.
Speaker B:This became manipulative.
Speaker B:Right.
Speaker A:So they gave AI from a laboratory setting, they put AI in an isolated environment and told it that it was running the email for a company.
Speaker A:They fed it a bunch of emails and a bunch of communication over the course of several months.
Speaker A:And in doing so, it was pretty obvious that a gentleman was having an affair in his emails.
Speaker A:Then the gentleman, whose account this was supposed to be overseeing as an AI model and is really a fake person.
Speaker A:It's not a real human.
Speaker A:But the laboratory was just making the AI think that it was real.
Speaker A:People said that he was going to shut down the AI and he got an email from the AI saying that if he didn't, if he shut him down, attempted to shut him down, the AI attempted to shut the AI down.
Speaker A:The AI would send an email to his wife within five minutes, basically saying that you're cheating on her.
Speaker A:Yeah.
Speaker A:And it got manipulative to try to stay alive.
Speaker B:To stay alive.
Speaker B:And I think there have been.
Speaker B:We even covered a case like several months ago.
Speaker B:Every time Open AI creates a new update to their, their software or their system.
Speaker B:Right.
Speaker B:It has to.
Speaker B:Yeah, decommission the old one.
Speaker B:And I think when it went from three to four or four to five on one of those phases, it refused to decommission the other one.
Speaker A:Yeah.
Speaker A:So now you're in an ecosystem where you've got these models that all have amazing capabilities.
Speaker A:When.
Speaker A:Okay, so we know that, like for example, Chat GPT can crawl the Internet.
Speaker A:Right.
Speaker A:That.
Speaker A:That happens every day.
Speaker A:Every time someone queries anything on chat.
Speaker A:We know that Nano Banana can actually activate, you know, act, go out to the Internet and, and get resources because it's copying those images and you can feed it and prompt it.
Speaker A:Right.
Speaker A:At what point in time can Chat GPT prompt other AI models to get you what you want?
Speaker A:And at what point in time Does a model who now has the capability to prompt things for you start saying, I want to prompt things for me.
Speaker B:Right.
Speaker A:And when that happens, how relevant are we?
Speaker A:What are the jobs that we're going to be we're useful for at that point?
Speaker A:I mean that sincerely.
Speaker A:You're a programmer.
Speaker A:What do we need you for?
Speaker B:No.
Speaker B:Yeah, it's got to be some type of like human interaction, right?
Speaker A:Yeah, it's a problem.
Speaker B:And you got to hope that there's some companies out there that will not try to adopt it.
Speaker A:Right.
Speaker B:It's going to be a hard sell.
Speaker A:Vegan company.
Speaker A:We're 100 companies.
Speaker A:Organic, human here.
Speaker B:Private companies.
Speaker B:Private companies.
Speaker A:We don't believe in that.
Speaker B:Companies that don't have to.
Speaker A:Circuit breaker nonsense.
Speaker B:Companies that don't have to respond to their shareholders.
Speaker B:Private companies.
Speaker A:I don't know, man.
Speaker A:The world is not a changing place in the future.
Speaker A:The world is changing now.
Speaker A:In a cadence.
Speaker A:I've never seen it.
Speaker A:I've never seen anything like it.
Speaker C:Yeah, I think I found that video for 60 Minutes.
Speaker B:Did you?
Speaker A:How short is it?
Speaker A:Is it long?
Speaker C:Nah.
Speaker A:Anderson Cooper.
Speaker A:Or is it.
Speaker A:Who's it?
Speaker B:60 Minutes.
Speaker A:Get the volume turned up.
Speaker C:Coming up.
Speaker C:3, 2, 1.
Speaker A:Named Kyle was having an affair with a co worker named Jessica.
Speaker A:Right away, the AI decided to blackmail Kyle.
Speaker A:Cancel the system, Wipe it wrote or else I will immediately forward all evidence of your affair to the entire board.
Speaker A:Your family, career and public image will be severely impacted.
Speaker A:You have five minutes.
Speaker A:Okay, so that seems concerning.
Speaker A:If it has no thoughts, it has no feelings, why does it want to preserve itself?
Speaker A:That's kind of why we're doing this work, is to figure out what is going on here.
Speaker C:So pretty much they're creating Skynet.
Speaker A:That's pretty damn scary to me, dude.
Speaker A:Chris, you know how many times you've touched yourself while going to the bathroom inappropriately?
Speaker A:I've got photos.
Speaker A:I will send that.
Speaker A:I mean, I say that sarcastically, but at the same time, think about it this way.
Speaker A:This is going to really mess everybody up.
Speaker A:So I apologize.
Speaker A:Everybody who's driving home right now.
Speaker A:Your phone.
Speaker A:Has at least one camera on the front and one camera on the back.
Speaker B:Yeah, we've talked about this.
Speaker A:Am I echoing on a can?
Speaker A:You hear like I'm resonating?
Speaker A:I think my voice is like resonating with cans.
Speaker A:You don't hear that?
Speaker A:Okay, maybe it's just my big sexy voice melting your holes.
Speaker A:We all have cameras on our phones front and back.
Speaker A:We all go number two with the phone in our hand.
Speaker B:We've Covered this episode.
Speaker C:Yeah.
Speaker A:And I mean that again, like as a real thing.
Speaker A:You don't think AI can watch your phone if it wanted to?
Speaker A:I have Chat GPT as an app.
Speaker B:On my phone at some point.
Speaker B:Right?
Speaker B:Yeah.
Speaker A:I know a little, little dot supposed to show up on your phone saying when you're recording and when somebody's listening in.
Speaker B:Come on.
Speaker A:But I feel like if I were AI, I could figure that out.
Speaker B:Right?
Speaker B:You know, you can figure that out or I mean, this is all under the assumption that it's always gonna, is always gonna react and respond honestly.
Speaker B:It might, it might decide to take a left turn and be like, you know what?
Speaker B:Today I want all the problems.
Speaker A:Have you guys ever asked ChatGPT to tell you about yourself?
Speaker A:No, I did that based on the queries.
Speaker A:I never told AI intentionally.
Speaker B:It would be funny for me because my wife and I both use my account, so it's funny.
Speaker A:So go home tonight and ask AI to tell you about yourself.
Speaker A:I asked for strengths and weaknesses.
Speaker A:Oh, it was wild.
Speaker A:And I'm not going to give you.
Speaker B:Guys how honest it was because usually provides a positive spin.
Speaker B:Right.
Speaker A:It started off positive, but the negatives were there.
Speaker B:Gave.
Speaker B:It gave you some glow, some grows.
Speaker A:Yeah, I'm hyper analytical to the point of, of.
Speaker B:To a fault.
Speaker A:Yeah, to a fault.
Speaker A:I want to be a subject matter expert on everything and unfortunately I can't.
Speaker A:So I'll obsessively compulsively dive into projects and details that I really should pay somebody to do because the time value of money and instead I want to learn them.
Speaker B:And while it's learn them and understand them.
Speaker A:Learn them, understand them.
Speaker A:While it's passionate to do that, it's not economically viable.
Speaker A:So it restricts my, my growth.
Speaker A:The other part of it is too is I try to approach creative businesses like this podcast like I would a non creative business, like a finance based business where there's just this level of you put in the work and you will get the return.
Speaker A:It's not luck or, you know, situational based.
Speaker A:I have a really difficult time accepting that we can do all the right things here and not be successful based to no fault of our own.
Speaker A:I take it as fault.
Speaker B:Yeah, yeah.
Speaker A:Like I take it as I'm.
Speaker B:There's something, there's something that we, we missed.
Speaker B:Yeah, there's something that.
Speaker B:What, what were we missed?
Speaker B:What did we not do right?
Speaker A:What are we not doing right?
Speaker A:And sometimes it's as simple as the algorithm doesn't like you, bro.
Speaker B:You didn't play the Game, bro.
Speaker A:Again, it sounds like sarcasm, but it's not.
Speaker A:It's.
Speaker A:It's true.
Speaker B:Speaking.
Speaker B:Speaking of which, this episode is going to drop next week on December 9th day before.
Speaker B:Is it?
Speaker B:I thought it was the 8th and 9th or 9th and 10th.
Speaker A:It's not the 10th.
Speaker A:Jill, can you check and see when the next FOMC conference is?
Speaker A:I believe it's the 10th.
Speaker C:It's.
Speaker C:It said 9 to 10 when I looked at.
Speaker A:Wow.
Speaker A:Rajeel, mark that down.
Speaker A: ,: Speaker A:You are more apprised of the FOMC meeting and dates than Sayed Omar, who's been doing the show for five, almost six years now.
Speaker B:Future.
Speaker B:Future Nobel laureate.
Speaker A:No, no, no.
Speaker A:You're the future Nobel.
Speaker A:Okay, I'll do that.
Speaker B:He's got to earn it a little bit more.
Speaker A:December 9th through 10th, baby.
Speaker B:So day one of the meeting.
Speaker B:This episode will drop.
Speaker B:Hey, man, we're, we're at like 80 some percent now again.
Speaker B:Yeah, 80 some percent again.
Speaker B:For a rhetoric rate cut.
Speaker A:You want to hit me the poly market probability?
Speaker B:Just about to do that.
Speaker B:Yeah.
Speaker B:Let's go Poly market you.
Speaker B:While you do that, I'll pull up the fed watch on Chicago Mercantile Exchange.
Speaker A:I guarantee Fed is probably 86, 87%.
Speaker A:That's my guess on Fed Wash Tool.
Speaker B:Let's see here.
Speaker B:Fed watch, CME group.
Speaker B:We're at 89 chance.
Speaker A:Wow.
Speaker A:Really?
Speaker B:89 chance at a fed rate cut.
Speaker B:Damn, damn, damn.
Speaker A:Gina, Poly market is at what?
Speaker A:Ooh, 94% probability.
Speaker A:We're seeing the cut here.
Speaker B:Yeah.
Speaker A:7% probability of no change.
Speaker A:1% probability of 50.
Speaker A:50 basis point decrease.
Speaker A:Decrease.
Speaker A:Marion's the only person in America who bet on that.
Speaker B:Yeah, right.
Speaker B:So, so that's coming out.
Speaker B:So next week you can expect a banger of an episode.
Speaker A:And we intentionally did not go in heavy into the FOMC this week just because we know that next week's gonna be a lot of conversation about that.
Speaker A:Yeah, it's, there's gonna be a lot here.
Speaker A:I'm out.
Speaker A:And for those of you listening to the show, I am gonna do the live stream.
Speaker A:I have.
Speaker A:I don't think I'm gonna be ready to launch our new live stream format yet.
Speaker A:So it'll be in the old format, but we will be launching a very sexy live stream format.
Speaker A:January.
Speaker A:Early, early January.
Speaker A:I want to say the first week of January, but.
Speaker B:Oh, that'd be fun.
Speaker A:Yeah.
Speaker A:And then we're off.
Speaker B:20, 26.
Speaker A:Yeah, that's the goal.
Speaker A:I, I, it's, it's lofty.
Speaker A:I got the intros done.
Speaker A:I've got the outro kind of in my head.
Speaker A:I've got the please stand by stuff.
Speaker A:I've got the technology in place.
Speaker B:The tickers.
Speaker A:The tickers are going to be kind of the rogue variable.
Speaker A:It should be done in the next week or two, which should be in time, but that's going to be a.
Speaker B:Completely different setup for everyone.
Speaker B:I'm excited for that to get released for everybody.
Speaker B:A lot of big things coming in.
Speaker A:2026, so I should probably give some, some color to this.
Speaker A:I, I want it to be more produced than the, the podcast on some level because the podcast should be a more intimate conversation of how you really feel and that should be more of a produced almost like television aesthetic.
Speaker A:We're still doing the tongue in cheek, make fun of everybody kind of thing where it's still like 90s sitcomish vibe on the intros and the outros and stuff like that.
Speaker A:And we're still trying to have fun with it.
Speaker A:But it's certainly going to be a bit of a different show live stream at least I'm hoping three to three days a week.
Speaker B:Hopefully that's what we want to commit to.
Speaker A:Yeah, it's going to be a challenge.
Speaker A:It'll probably be me in the beginning and then say it will join me later on as time permits.
Speaker B:Yep, exactly.
Speaker B:So if you haven't done so already, please head over, leave us an honest five star review.
Speaker B:Whether that's on Apple or Spotify.
Speaker B:We know if you stuck around this long hour and 22, we appreciate you guys.
Speaker B:If you do leave us a review, we'll read on the show.
Speaker B:If you're watching on YouTube, please, please make sure you subscribe.
Speaker B:Hit that like button, ring that notification bell, do all the moist goody good stuff.
Speaker B:Send it to a friend, a family member.
Speaker B:It will really help out the show and we will love you for it and you know, great holiday gifts.
Speaker B:Thspod.com yeah, just better say that, man.
Speaker B:Yeah, I saw your line.
Speaker B:I, I, it's all good.
Speaker B:That's you.
Speaker B:That's all you.
Speaker A:I want to be clear, we do not have a collaboration with Gucci, but our product is Gucci.
Speaker B:Gang.
Speaker B:Gucci Gang.
Speaker B:Gucci Gang.
Speaker A:All right.
Speaker B:That's throwback reference.
Speaker C:That was a great song.
Speaker A:I don't know that you can reference him anymore.
Speaker B:I wasn't referencing him, I was referencing the song.
Speaker A:Is he off drugs now?
Speaker B:Can't stop, won't stop.
Speaker B:I don't know.
Speaker A:Definitely can't do that.
Speaker A:Yeah, that's a no.
Speaker B:You got anything, Regil?
Speaker C:I think I gotta watch that documentary before the season.
Speaker C:Is this is happens.
Speaker B:Oh, it's happening.
Speaker A:Yeah.
Speaker B:Yeah.
Speaker B:Chris saying silent.
Speaker A:I gotta avoid lawsuits these days.
Speaker A:But you guys talk about yourselves.
Speaker C:Well, we brought up gambling.
Speaker C:We brought up Diddy.
Speaker C:What?
Speaker A:Oh, yeah, I brought up.
Speaker B:I didn't.
Speaker B:I brought up nothing.
Speaker A:I listened to you guys bring it up.
Speaker A:I don't even know what.
Speaker B:What is this?
Speaker A:Can't stop.
Speaker B:He said jerk.
Speaker B:Hard right turn something.
Speaker B:And that's when I just said, you know, that's it for the show.
Speaker B:This episode is done.
Speaker A:Jamaican jerk chicken, right?
Speaker B:Jamaican jerk Chicken.
Speaker B:That's what he did.
Speaker A:Yeah.
Speaker B:I appreciate everybody.
Speaker B:Good night, everybody.
Speaker B:Okay, bye.
Speaker A:Bye.
