Federal Reserve, Valentine, United States discussed on 790 KABC Programming

Automatic TRANSCRIPT

Don't you dare stop me because on this show? We boldly go where no financial show has gone before. And therefore at about ten til we will have our estate tip of the week. And this week we're going to talk about the power of attorney documents that you may want to have. Okay. So in the event of your incapacity in the event of your health changing, those kinds of things these are documents that I think just about every body listening to this show should have. Okay. So we'll talk about that at about ten till? So we have a lot of talk to talk about this week. But before we go anywhere. I just have to tell you that Valentine's Day was actually my thirty sixth Valentine with my beautiful beloved and very smart smarter than me. Why fake? Yes. And we met in one thousand nine hundred eighty two and we got married thirty three years ago. So. Interesting. Longer than I I remember when being thirty three thirty three years old was old let alone being married for thirty three years and soon to be thirty four she loves pink roses. So she's an easy. It's easy to make her happy on Valentine's Day. I just get her a big giant bouquet of pink roses and she's happy as as punch so anyway. Let's talk about this article that I saw and I agree with it. So that's why I'm going to read it to you. You know, it's like, I'm in an echo chamber. Anybody who agrees with me? I agree with them. It's an interesting dynamic that goes on there, but Nobel laureate, Paul Krugman. This is an article from Bloomberg said the US economy, maybe heading into a recession at a time when the Federal Reserve does not have the firepower to properly combat a slump. Okay. To quote, there seems to be an accumulation of smaller problems and the underlying backdrop is that we have no good policy response. He said in a TV interview the headwinds facing the economy prompted the Federal Reserve this month to halt its interest rate hiking cycle, which Krugman said was never grounded in the data to begin with and to continue to contain continuing to raise rates was really looking like a really bad idea. And you know, what I agree with that? And and you know, the Federal Reserve decided we saw way Powell. Came out and said, you know, we're going to essentially not raise interest rates at the same pace. He did an about-face on that. And the market the stock market the S and P that very well. And went up a lot of points on that news. But think about the message that they said that they were giving. Okay, we're not gonna be raising interest rates as aggressively as we planned on. Now, why on earth would they do that? Because things aren't as good as they thought they were going to be. That's why you have to look at the not what they say. But why they said it, and if if they're saying it because they think that we are not doing as well as we as an -ticipant it. That's not a good thing. And so right now, if you are in equities, if you're in the stock market, if you're invested in stocks, I would be very very. Anxious. If I were you, okay. I would be looking at that with great trepidation. And I would start thinking about what plan. Do I have if things turned south? I'll give you another statistics. I think that what's going to cause the big bear market is all the debt. We have around the world. And two very large Chinese borrowers missed their bond payments. Okay. Mr. bond payments. These are massive this is the Chinese market is the is an eleven trillion dollar market. And if China ends up this company called China Minsheng ends up defaulting it may rank alongside win time. Energy is one of China's biggest failures with two hundred and thirty two billion Yuan in debt that's thirty four billion US as of June thirtieth. So these are massive defaults that could be happening here they missed their bond payments. Okay. And so if they don't restructure their debt and all that they could actually default on their debt. And if that happens, you know, you may recall what happened with Lehman when they were going to default on their debt. And how that started a whole domino effect that brought down almost the entire bond market and certainly brought down the stock market. The s&p was down fifty seven percent and all that in two thousand eight. So I think debt is the big problem. We have right now and a scene statistics that tell us that the global debt, right? Now is two hundred thirty three trillion trillion dollars that number is so big I can't even fathom it. But just to put it in perspective. The the subprime mortgage crisis was three trillion dollars. That's how big Dow one was when it was all said and done we now have two hundred and thirty three trillion globally of debt. This is the response to the two thousand eight credit crisis was to take on more debt. How you get out of debt? You borrow more money to pay off the debt that you had originally. That's what we did. And the number has escalated and is still going up and up. I think the risk right now is the biggest I have ever seen it. And and you know, we told people to sell in November of two thousand seven get out before the two thousand eight market crisis. And we right now our counseling our clients at the risk is so great you should be on the sidelines. Now, we look at trends. So I just want to be sure you understand. We look at trends. So if the trend is our friend, then we may go back in and participate in the Trent. There are trends within big bear markets. Okay. So if. Listen to this show. And I tell you we're going to be going back in it's not I've reversed my opinion is just that the trend is favorable right now within a bigger picture of a bear market. Okay. So stay tuned on that. But if you are over fifty if you are retired or retiring soon, I would encourage you to go to our website. It's moneymatters dot net. Moneymatters dot net. And we have seminars near you. You can sign up for a seminar. They are designed for those of you that are over fifty who are retired or retiring soon. I know there's a lot of you out there. So that's you then go to the summer, I December. We will talk about our by hold that protect strategy the one that we employed to tell people to get out in in in in late two thousand seven we'll also talk about wind. Should you? Take your social security benefits. We have a whole bunch of information on that that hopefully, you'll you'll learn from we also talk about should you roll over your 4._0._1._K, we have five strategies to reduce your income taxes. So we have a lot of information there that I think would benefit you if you are in the mode of retired or retiring soon, if you're one of those people, then moneymatters dot net is our website money matters dot net, and you can sign up for the seminar on our site. All right. We're gonna take a break..

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