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Bitcoins Weekly Chart The Worst
"Back to the markets yes bitcoin. It has closed and we did close down five. Point one one percent we closed at a level Thousand six hundred and seven and we do look bearish right now. The market is coming off further already down nearly one percent in less than one minutes on Bitcoin. Rod that we definitely have a bit more downtrend implying. Now we've got to low high low along we could definitely say data pullback but he's big but is this something. We should be concerned about the answer for that in my view. Really's is not really is not and here's the reason why look we hadn't seen a decent pullback for what one two three four five six seven eight nine weeks wait just gone was the tenth wicket. Nice ten weeks. There was only one candidate. Showed any pullback and there's only down two percent so there was an awful lot an awful lot there whereby we just didn't say pullback. We didn't get that pullback momentum. Nothing actually happened. Now it's changed. Things have changed. We have seen that pullback. We have seen the having vent kit. I forget that the having event wasn't last week it was the week before. It's been very racist. It's not been a long time ago. And I forget that is very very race and so there is reason to believe that we might see a little bit of pullback and if you recall may going through it recently talking to you guys about You know what had happened during those pullbacks in the During the in the past you know we do have the option were can be a little bit messy full a little while we seem to be getting a bit of that was good trends loss way absolutely those great trades one of the best Us A shout outs. I believe could be. It could be ever from entry point on Tech's tether to where it is right now. Ninety six percent up now once up one hundred and forty percent under the instead of entering your stop but two point five percent. You're looking at about a fifty to one there. A massive massive massive moves so some humongous moves Was One of them. One of the ones managed to capture was Komodo their big profits to be had there as well. And I'm saying that my checklist watch moving away from the perpetual contracts at the mine because they are a bit messy. That's what it's been going back to the good old. Bitcoin trading against Bitcoin has been really has been. Where the Actions Bane I? It's it's been where that some with the momentum bannon the opportunity has been sitting of. You've got some NAS Transat. They wrought now going to be continuing to keep a very close eye on those. Let me come back to the top ten. Never for this puppy up in a way. We still want to talk to the wake leads because I want. I want to give you the perspective that I think is important for the week to come. We saw bitcoin down lost weight ten percent pretty much on the noise. We closed down at eight thousand seven hundred seven onto a theorem now e closed down loss. Only three point seven seven percent guys. Say BITCOIN's really struggling to get above ten thousand markets. It's being kept bought but it's not worrying too many of the other markets of a gun to exile pay now four point full six percent loss weight again. Nothing huge nothing out of control. Bitcoin cash it had a pretty decent down. Wake seven point six to eight percent but a again. Bitcoin was still the lodge of the sell offs between us. They was down three percent. That's for the whole week again. Many put on a lot of guys against Bitcoin. Lot going down three point seven six percent better return than bitcoin was down as well but it was only down five percent. Half of what Bitcoin was. Bonnets bonnets was down. It was down two point two percent cod Donna. Donna did it closed flat. Would down point one ovalles percent another market that was has been performing a heck of a lot better than Bitcoin of light? Assyrian classic as a matter if I had a massive rejection Kennel down one point. Three seven percent that remember become was down ten notre now it was down five point fos. There's nothing out there right now. That's performing across. The top. Ten is bad as well. Bitcoin is performing now because Bitcoin is being sitting rather saw for a while. Now now has started to fall a little bit better as you know the lot of yesterday's session being down five percent. It's everything about charity on the Alton. If you go ahead and have a look through my scan this morning with members and in March shots my now created heavily Out of bitcoin pairings are go through and scan the scan. The Alz Against Bay tastes saying what you'll see is that there are some opportunity starting pop up. It's very very good moves at the theater. Had a fantastic. Ron has been some big moves. So it's about understanding way you're going to be focusing your attention. It's also equally important to be sitting back and just waiting for me without the clarity on. Just happy to be a spectator demand. I am in no major rush to go out there and you know be too active because until conditions become perfect. Happy to be a
Should My Parents Close or Sell the Family Business?
"With us in Indiana. Hero's welcome to the Dave Ramsey show. How can we help? Thanks for taking my goal day with the great honor to do to The question is about My parents family business They have a small Wine and your shop in Indiana and when the state was shut down they had shut down kind of during the peak of the cases in their county and now as things are starting to open back up. They've been doing our delivery They are debating closing the shop down altogether. They are in a really good financial position. their Employees are really eager to return to work especially now with the six hundred dollars. Bonus ending in July on their unemployment They get a lot of money in tips. They a lot of support from the community. They sell bottled during Cold Water. And the community really likes that shop and it would be really sad for them to River the employees if everyone were to get laid off in the shop where to get close. My Dad's sixty six. My Mom's sixty four They think you know they're very blessed. My Dad came to this country with like three hundred dollars on his pocket. And now he's worth over two million dollars closing it. What would they do with the inventory? they could probably sell the inventory off to other liquor stores really easily even at full price because or near retail. Because like why why? Why would they not sell the shop instead of close it? They they could sell the shock. I get. That was part of the closing so they could sell the shop. They try to sell the shop. They sold the shop two years ago and it was very strange. The personally sold it to was having Problems with Indiana taxes and wasn't doing everything above board so the Indiana government actually reverted the licensed actually original owner them and so they went back and reopen the shop. But my mom's been trying to retire for years because they're in the financial cause to do so. My Dad says because they sold it to. Google doesn't mean selling it as the wrong decision. That just means they sold it to the wrong guy. That's true if they sell it now. My Dad feels that maybe the person who buys it isn't gonNA keep employees on. They've got there. Oh the plays that they have are dollars now. I don't have a manager. They know my mom's manager. Okay all right so it sounds like the ready in the season a life there into sell this and have an exit and said I'm GONNA I'll take less for it but you have to keep the employees for years by the deal. That's a bad idea. Actually I think that finding the right buyer might be the right move for them to keep them safe and then also continued the business. That's a really great idea. These are classic small business people. They love their employees. Yeah they they hire three single moms they you know. They're only making like seven or eight dollars an hour but with tips and everything they they do really well with their families. They were hearted jerks your parents. And they didn't care about their people the only thing blocking them from selling it so people and so they make their part of the deal. Thanks guys going better. I just what you the question I have is. Are you calling on their behalf or because sounds like you said they're thinking about not reopening? It's what I thought I heard you say and I'm curious what you're what you're interested in this. Is it just because you feel for the employees or or you try and help them make the best decision? Where do you stand in all of this because like I haven't been able to sit down with them in months like I'm on the front lines? I work at division in a different city. And so you know I. I talked to them every day on the phone about how things are going at the shop. I think you know. I think they made moves to sell it before. They're really ready to retire. The they put me in my sister at their school. They seized a lot for retirement. Anything ready to go. I just think my dad. Especially with the social distancing isn't ready necessarily to. He doesn't think it's a great idea to start that season of life now I mean woods the tax bonuses and everything coming in right now For people people are like the liquor store has long-line but he he opened at six o'clock in the morning. Fifty people in line. It's crazy so each like. Why SHOULD WE SELL MOUTH BUSINESS? The highest it's been in a year. Well I mean it doesn't have to be now but I you could say you know when business slows and there's a more normal rhythm to the business after the shutdowns are starting to go away. I don't know when Indiana's opening up but you go through those different things and say you know in the fall. We're going to sell it or next spring. We're going to see the thing is. If you've got a target it takes the pressure off and if you just go we're not going to sell it. We're going to operated the well. That's forever well if you say we're going to sell it. We're not going to sell it until this happens. The challenge that she has. She doesn't own the she doesn't work in the business but she's trying to help her parents trying to make a good decision. They were torn between the season a life and the team and in my own business and it's a little weird talking to them. I know a lot about business. I'd lead entreleadership. We talked to you guys all the time trying to give your parents advice and direction on this. It sounds like you guys have a good relationship. You can't really just give them the answer. You got to prompt the conversations and give them options and say hey. Here's something to consider. Here's one I got an idea you know in this situation. What if there's a lot of people in the service industry been laid off restaurant bar managers there some sharp people that need a job right now? I gotTa believe I would be considering looking for somebody like that. Who could be manager in this bridge season? Two days talking about take advantage of this opportunity where people were lining up at eight. Am to get liquor liquor. Sales across the country are exploding. I would take advantage of this. Get those people back to work those single moms that they love dearly get some people stable until he finds the right buyer. But I think there's plenty of people who can manage that store while they stay at home but then you can also negotiate that your dad stays on for a year or two years to ensure the team is taken care of as the president or operates. The business as a part of the deal So you could have a transition
Getting Debt Relief From Financial Institutions Is Hard Right Now
"WanNa talk some things involving where you are financially. You know a lot of people with one quarter of Americans out of work. Lot of people are having a tough time and right now many of that quarter unemployed earth finally seeing the funds flow and depending on your situation going into corona virus. Maybe you've been able to write your financial ship. Maybe not maybe some of it's okay. Some of it's not but I'm hearing so many frustrated complaints from people trying to deal with an organization typically a bank when you're having trouble making your payments you know I've said through my entire career which spans thirty three years. Now that the key when you hit a rough spot financially is early and often stay in touch with the people you owe money to. Unfortunately there are so many people trying to contact Particularly a bank with a credit card or any kind of loan product with them that you're having trouble getting through you're having trouble getting consistent answers and you're having trouble with the banks following the laws that are pertaining to corona virus. I want you to know that to not get discouraged if you get somebody at customer. No service at a bank. That doesn't care is mean-spirited. Doesn't know whatever. Thank them very much telling you gotta go. There's your food on the stove. I don't care what you tell them. Just get off that that phone call and call back and get somebody else because one of the things. That's been true and what I've heard from people what I've read in various news. Stories is the inconsistency with the banks and this is not I mean I love to beat up on the banks but this is not necessarily a bank cultural problem. It is a situation the result of so many people working remotely with the guidance changing over time and with people not in a central call center. There's been such an inconsistency with what people are being told that it's just hard to get the same message across your employees and get the same response out to consumers or borrowers when people are working remotely but when you do talk to somebody make sure you get their name When you talk you write down when you talk to them. The date If they use an employee number you want that because what you WANNA do. Is You want to take notes and document what spent promised to you on what date. And let's face facts to when we're overwhelmed. Sometimes we hear what we want to hear. So that's why I want you to take notes and even asked now. I think I heard you say that I'm allowed to do this. And you're going to allow me to not make payment for a month and you're not gonNA report me as delinquent in that time and you get them saying yes or no to that and re explain it to you if you didn't hear exactly what's going on but manage this and the more thorough. You are with notes the batter. Let's take the example of. You're told that you're going to be given a grace period and not be considered to be passed. Do Right now because of you contacting them and then the next month you gotTa dunning notice or mean-spirited collection call you can refer back to your notes and you say hey on this date this time this is what so and so told me and so you have that information as you're amunition when somebody is not treating you right but I want to deal with more fundamental thing that is a back to basics not necessarily even related to the current situation. And it's how important is to have a little lifestyle debt as you possibly can. I mean you think about credit card debt and roughly six out of ten of us. Ordinarily run balances on credit cards so on a regular basis. Four and ten people are always paying their balances and full six and ten or always running balances and these are just obviously rough numbers and then paying an average interest rate of. Let's say seventeen eighteen percent. Now think about this. The cost of fines for the banks right now for money lent on credit cards is less than one percent. So they're borrowing the money. Their cost defines is a fraction of one percent. The they then mark up to seventeen percent. How are they able to do that? Well the reason is none of us. Use Credit cards at least initially with the intent of using them as anything other than a payment system. We don't go into it fully expecting most of us at least the we're going to borrow money on them. We think we're only using them as an alternative to cash but human nature being what it is we see something we want that something we buy that something and then the bill comes weeks later like you don't have the money for that and you start carrying a balance and end up with that seventeen percent interest higher or lower. And so I'd like you. If you are in the three quarters of Americans that still have your job. You're still okay in that job for now I'd like you to take this as a clear signal that if you are carrying personal debt work on it work at down. Americans have already been much more careful spending money on things other than necessities. That means that some money may be freeing up in your budget each month if it is then be very very mindful and methodical about paying down debt and get rid of that high interest credit card debt.
Has the Pandemic Changed You?
"We don't really know what's going to happen with the economy with financial markets with monetary policy with the pandemic. The world is a constant series of endless surprises. Both good and bad and then as things happen that we and others don't anticipate we emotionally react to them and often overreact. Those surprises we become fearful in greedy asset bubbles conform well other acid categories. That might get too cheap. This pandemic the coronavirus pandemic has been a major shock to me and I think to most people. We certainly didn't anticipate it. And now we're coping with a dramatically different world in previous episodes. I've discussed the economic monetary and investment impact of the pandemic and its aftermath in this episode. I want to focus on how this change has impacted US personally. I see three patterns that are emerging two of which I've discussed in an earlier episode of the podcast episode one ninety seven the power of less and local these three emerging patterns are less local and leap less the principal. I've discussed a lot the same. Nicholas tile up in his book skin in the game talked about a principle called via negative. He wrote that. Knowledge grows by subtraction by identifying things. That aren't working. And removing those things he says the act of removing is powerful and less error prone then acting by addition as we've been isolated lockdown in our homes. It's given us time to think about the things that we have and do. We really need them. I'll give you a simple example this past Friday the prelude I my daughter. My daughter-in-law and my son drove three cars for seventeen hours straight through FROM PHOENIX TO IDAHO. And once we arrived here the pro. I went up to our cabinet. Open it up because we're going to spend most of the summer here in Teton Valley. We have a bit of a mice problem at this cabin. There were mice droppings everywhere. We had to clean them up. My approach to combat adding mice is to put out bait boxes with Barbie poison. I spoke to the previous owners about this. And they said they didn't have any problem with mice although they lived here full time and maybe they had a cat but my approach this time is. I took all the boxes away because for one thing when mice would come in and start eating it would wake me up and so I figured just them all out. Don't attract mice by giving them something to eat and then we'll see what happens now. This is a simple example. Simple experiment to see how it works out. But I suspect there's other things that you're doing less of gyms have been closed for most of this time. I bought a kettle bell and have been using that for strength training. So I'm canceling my gym membership. A new listener wrote me. The other day said he couldn't go to the gym so he discovered podcasting and discovered my podcast. We're travelling less. Airline travel is down ninety percent from a year ago. There was an article recently in the Wall Street. Journal talked about how air travel is going to change less direct flights slower boarding process as they board from the rear. First temperature checks before you get on the plane. Perhaps immunity passports everyone wearing mask not going to be as much fun to travel by. Plane Anymore. What are you doing less of are considering doing less of perhaps less going out less business less travel most people are doing less their subtracting things from their lives and it can be powerful. We can give us a sense of relief when we remove something from our life. Now it means we need to be strategic when we add something. We can't just extract ourselves from the economy but we can be strategic in our purchases which brings us to the second emerging pattern of local. Many many people have started working remotely and have loved it. I've had two friends that mentioned to me recently that they never want to have to go back to the office again. One of the outstanding questions is how permanent will this be? And the potential impact on commercial real estate commercial real estate prices were down ten percent year over year in April. We've seen this tram go back and forth. There was a phase where remote work was very much in fashion. And then the CEO's wanted to bring the workers back so they could all collaborate. So I don't see all companies doing this but I certainly do believe you'll see much more remote work because you can be more productive. I have worked remotely for almost twenty years now and you can be highly productive. Other aspects of local supply. Chains have been severely disrupted by this pandemic companies realized that maybe such an extensive global supply chain has some weaknesses. Will we see more? Local domestic manufacturing you're seeing modes of transportation be more local. New York Times reported in March nationwide sales of bicycles equipment and repair services almost doubled from the past year. A lot of people don't want to commute on the subway anymore or the buses and so they want to commute by bicycle. See how that goes when winter comes. These are local trans. The pro and I are going to do much more local travel. We are purchasing a camper conversion. This is a two thousand. Chevy suburban converted into a camper with solar panels. Abedin back no kitchen. But we'll be doing a lot more distributed camping on bureau of Land Management and National Forest Land in Idaho Wyoming and Montana more local with bet your local pattern for shopping. How has that changed? We've done a lot more curbside. Pickup of groceries takes more planning. It can be a little more frustrating. We busted on instant card that can be frustrating to the other day at the grocery store. We ordered two pounds of bananas and two Carrots and we got two bananas and two pounds of Carrots with institute. We Wanted Rama noodles. They didn't have any says. They substituted two huge bags of cheese and CARAMEL. Popcorn mixed together. How you interact locally with WHO? This is one of the biggest changes that I see. We can't be locked down in our homes forever. We're going to have choose to interact. If you have kids they want to interact and so deciding how. And what type of social distancing any social distancing will you use will be critical? We're going to have to kind of navigate this new culture until there's a vaccine if we get a vaccine. I was somewhat surprised as we drove those many miles from Phoenix to Idaho. How FEW PEOPLE? We saw wearing masks and how many people we saw gathering together strangers at restaurants or stores. It's almost as if people think government says the economy's open so we're back Enormou- now maybe the pandemic will just go away. But that doesn't appear to be with. The science suggests the infection rate was very high before the economic shutdown and now the curve has been flattened but everything. I've seen suggests the coronavirus has not gone away bowl. See and we have to figure out how are we going to navigate our social interactions locally
Chickens, Fruit Trees, and Trellises
"Where we teach you for rules to help you. Stop living paycheck to paycheck. Get Out of debt and save more money. Okay I'll be honest that I did kind of use. My paternity leave for just loads of projects. I think I added more to the list than I did. But of course journal out of that time. I was thinking about budgeting so while we may now own chickens and while we may have planted a massive asparagus patch. And while we may have a trellis that could hold pounds and pounds of cantaloupe. Yeah I still just thinking about budgeting and the idea was partially inspired by the podcast. I think was four. Twenty six talked about the value chain. Having a fruit tree seemed valuable versus having cash to buy fruit plus I mean homegrown fruit right. So there's a little bit of this preparedness kind of back to the land feel over here at the household but for the most part what. I was really landing on. Was this idea that you're doing something now. In order to have an outside benefit later on so these cute little chicks that frankly after two weeks they are not cute. They are ugly. We're feeding them. We're taking care of them. Make sure they have water. We built a little Box Forum. And eventually we'll get them into a coupe that we're GONNA have to put together and do all that and we're going to be making him really happy and they'll get to scratch around in the orchard and I'm no chicken expert by any means so I probably already said something wrong but the hope is eventually we'll get some eggs from these happy happy chickens but they those eggs won't happen for seven months the fruit trees. You don't get a harvest for definitely a couple years the ASPARAGUS. You don't even think about harvesting for at least two years so you're doing all this upfront. Work to hopefully have what I would call an outside benefit like walking out and snapping off a fresh asparagus. Spear you just haven't had asparagus like this right anyway. All that to say when you're thinking through your money a lot of the time you're battling with that voice that Santa want something now versus the voice that saying wouldn't it be nice to have something later the voice that said wouldn't it be nice to have this for later is often very quiet and frankly looks foolish a lot of the time. I mean you know you get some weird looks. When you're the person digging up a large portion of your trump's in order to drop in spiritus that look like little Martian plants if you buy in Beirut and you can feel a little foolish if you're the one just setting aside some money for the eventual car repair and you don't know when it'll happen or how much it'll cost so even as you're debating with yourself you might feel Kinda foolish but my hope is that if there are some lessons we've learned from the craziness of late. One of them can be that we should be looking ahead and preparing a little more to just be up. Maybe be able to have things be slightly less volatile for your household for your community for your city for your state for your country all of that but the ability to look ahead in perhaps differ a little bit of gratification. Now in order to get an outside benefit from that later on. I just think that's that's too good to pass up. You may be could
The Stock Market Is Not the Economy
"Sarah Ponsak wrote in Bloomberg. The market isn't the economy though it's at least a reflection of it and a bet on what will thrive in the future unsurprisingly amid a crisis bent on keeping everyone at home bets are coalescing around companies that ease the burden of being locked indoors she quoted Jack Genocea with a portfolio strategist at Nat Texas investment managers. They oversee a trillion dollars in assets. He said the I opener when you look at the ones you're worried about. He's talking about stocks within the five hundred airlines leisure companies. It's not a big chunk of the S. and P. Five hundred it's the old adage where the market isn't the economy that really hits an important piece here a lot of the stuff we're worried about. It's just not a big chunk of the S&P five hundred so maybe we should've react by selling off thirty five percent. Finally Matt Phillips in New York Times wrote a piece titled Repeat After me the markets are not the economy he wrote. The stock market looks increasingly divorced from economic reality. The United States is on the brink of the worst economic collapse since the Hoover Administration. Corporate profits have crumbled more than a million. Americans have contacted the krona virus and hundreds are dying each day. There is no turnaround site yet. Stocks keep climbing even as twenty point. Five million people lost their jobs in April the S. and P. Five hundred stock index logged. It's best month in thirty three years. The top five companies in the S P five hundred employees about one point two million workers worldwide the. Us has a hundred and thirty-three million employed workers last month it was one hundred and fifty six million over twenty million jobs. Lost those five companies. Employment makes up only zero point nine percent of jobs and across the entire S. and P. Five hundred those companies only employ about seventeen percent of US workers.
A Simple Strategy for Rental Properties
"I want to ask you a bunch of things because you jumped into this head. I you bought your first rental property how much you know because sites like bigger pockets like they have a ton of content you could learn for ever and now by a single property right. What did you do like? What was your steps to learning first before you jumped into actually by. I was talking about with my friends who one had already bought one and was buying his second like talk to them for months about it. Did incessant amounts of research. What I listen to the bigger pockets. Podcast which you know. There's a lot of good stuff in there but perhaps a challenging to get through It's just a lot and then you don't know anything. What is what was the most helpful part was it. Was it listening to podcasts? Was it just like literally having sort of a mentor right? You know. He didn't he didn't know like much more than me. And to be honest I we kind of just like jumped into the fire and we learned a lot like cutting our teeth on it. I feel like you know. I learned a lot about the burr strategy and I was obsessed with the burr strategy. Before did it which is by. Rent Bob's I by rent repeat As this whole way of like putting money and pulling most of it out it's like it's the philosophy right yet and it's a really great strategy but it he infinitely complicated on top of just buying picking a property right like I just. There's so many ways to down in the right and you can And you can basically like learn forever. Yes you could just continue to learn and never actually pull the trigger on anything. It's trying to say like you're an expert in science which signs outside Earth size ever end and then you know this. It speaks to that. 'cause I'm a home brewer? I know a lot about beer to make beer. I am forever learning. It doesn't mean I'm not sitting there making beer making beer but I'm still learning every day in changing my process. The next time I make an exce batch and you know the fermentation of stuff's involved. Does that mean that you can make wine? Doesn't mean you can't make wine where you're probably not going to be that great at it because you have done it and it's not a focus now okay. I want to kind of drill into the learning process more because specifically for you because if I were to buy rental property right now and I I was part of the course I took the course essentially i. You are the person I wouldn't even. I wouldn't look up anything I would just ask you right. Is that kind of how you approached. It was with with your friend who who did. Because it's like well somebody needs on it. So yes so I worked with him but to be perfectly honest I learned the most from someone that you may remember a million years ago. Her name was Alison Carols. And she was like a real estate expert on listen my imagine the beginning. Some of her Articles are still on the site and she had owned. I think it was eleven properties of the time. Okay and she had a whole spreadsheet and process that she used and so I really adapted her process to fit my needs. I pretty much following all of her exact things and then as I went through it. I was like not this this. I don't want to do that. I don't care about this and I kind of made it more me. She wanted to be real estate. I just I just wanted to make money whereas wanted to be successful in it but didn't WanNa live and breathe. Do you think that you had to have a foundation of some kind of knowledge before even going and learning about rental properties? Yeah Yeah I definitely what is that? So I think it's just like basic understanding of properties rent and like the value of things I think a lot of people go into buying rental properties. Where like hey I heard this guy. He makes money on rental properties. This houses for sale. I think we could rent and make some money. Yes and no you. Can't you could definitely by rent it but you can make money on okay and in like all right. So what was the out of those pieces like? Yeah you you learn how to buy properties. It was it was allison spreadsheet. That really spoke to me in that it was I kind of lean towards numbers and I understand things in that context but it really set I. I liked her approach where she had Limitations on the deals that she would do based on the numbers says you put in the ramp racing the purchase. Pray send you know. She had assumptions for like vacancies. You boop boop put all these numbers in and it was like she had boxes that would be from green to Red Right. Radian of like how much you should do. This deal So Sheila Binary choices and it was you know. And then what would happen is like this? I would clone the spreadsheet into other tabs and compare these gradient numbers against each other and I was like. Oh this is such a better
Windfalls and Uncertainty
"That in their lifetime it is the strangest weirdest most uncertain of things they have ever experienced. What to do when you get a windfall in this situation. That's actually a question that we've been getting quite a bit Not everyone and my heart does go out to people that have been negatively affected and of course we all know people very directly and My heart goes out to them This podcast will be useful because the lesson here is is evergreen but I am speaking specifically to people that find themselves in. Maybe a unique situation. Although we are in this question a lot so I can't. I can't really say it's unique. It's sounding fairly common at any rate when you get a windfall and you are sitting staring a lot of uncertainty in the face. It's the same situation as if your income is widely variable and You just don't know exactly when it's going to come in how much it'll be so when you're looking at uncertainty you have one rule that you really need to fall off course. We have our four budgeting rules but the main rule that you follow is hoard. Cash cash becomes even more of a king as it relates to your position with this uncertainty so stirring uncertainty in the face cash. Things feel more uncertain more cash. Things feel the uncertain. They've ever felt the most cash you can possibly hold onto now when you're looking at this. I'm not talking about your setting aside cash because the car repair you know. The the tire blows out. That's a rule to situation. I'm not talking about the roof. Suddenly needed repair it. That's a rule to situation. We're talking about just you. Uncertainty means you don't know what the emergency would be. You don't know how things are going to play out. You do know the cartels are going to blow. We've talked about that fifty thousand times but the situation that we're talking about is unknown unknowns. That's it and when you have unknown unknowns you hoard cash you hoard it hoarded it. It's the most useful thing to hoard so in that regard people that are getting these windfall was. Perhaps you're one of them you're of looking. You're saying well I I've got some high interest rate debt. That's bugging me good. It should bother you But I also just staring a lot of uncertainty in the face and we are seeing. We used to say that if you had a government job it was certain your salary was that was kind of example. Even if you have a very very certain salary you should still an only budget the money you have on hand however then with all the government shutdowns Blah Blah Blah. We found out that even those salaries aren't exactly certain. And then you may have thought well. I'm dental hygienist. So my salary I mean people are always gonNA need their teeth cleaned and then boom pandemic and it wasn't a certain as you thought there we've been all rewired to recognize WHOA. We never thought that would be a thing and now that thing is a thing. We're all getting educated in this way. And so we've had a lot of unknowns. Just suddenly make themselves known and there will be more of those unknown unknowns in the future and cash helps you handle those nothing else does. I shouldn't say that a lower burn rate for your expenses that does a simpler lifestyle does burn rate. Meaning your monthly expenses. If you're living well within your means that helps a
Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks
"May kicked off with one of the biggest events of the investment calendar the Berkshire Hathaway annual meeting. Hey hurrah but instead of forty thousand people flocking to Omaha. Warren Buffett sat at a table in a near Empty Auditorium. Under did either of you watch it at all. It was kind of the surreal experience. Now I saw two seconds of it. I haven't gotten around to it but it is always. It still blows my mind. That forty thousand people go to Omaha just to maybe get a chance to see Warren Buffett. That's crazy and it's crazy that he can sit up there for that long and answer question after question after question now usually also joined by Charlie. Munger this year he was not instead he was joined by Greg able able. Who is the vice chairman in charge of all operate operate instead of Insurance? But it still went on for more than four hours. Wow I more than an hour was a presentation that he gave so I listened to the entire meeting. Impasse episodes I would. I've said that sort of my personal investing philosophy is be a short-term pessimist at a long-term optimist and that sorta seems to me was the message of the whole meeting so on the pessimistic side. They're clearly not doing anything you know. They've still kept most of their one hundred thirty billion in cash. He did not use the downturn as an opportunity to go on a buying spree. He essentially he likened previous downturns to train. That is slowing down. This time. He said we took the economic train off the tracks. And I don't know of any historical parallel in the range of possibilities on the economic side are still extraordinarily wide in other words. They're still sitting pat on what they're going to do. He also said quote. We have not done anything because we don't see anything that attractive to do. Heels actually spent a good deal of time talking about some of the past challenges and failings America's history so for example. He pointed out that. Despite the fact that we have a declaration of independence that claims that all men are created equal. When you look at the three point nine million people living in the original thirteen states and seven thousand nine hundred fifteen percent were slaves pointed out that during the civil war six percent of the male population between the ages of eighteen and sixty died. The twenty twenty equivalent of that would be four million deaths according to Warren Buffett and then it took one hundred thirty one years for women to have the right to vote at another sixty one years until a woman was appointed to the Supreme Court so we often talks about the long term success of America. He did spend a good bit of time talking about some of the things that we have not done so well. He spent a particular amount of time on going over the Great Depression I think partially because he was born in the middle of the Great Depression so he pointed out. It's September nine hundred twenty nine. The Dow was at three eighty one. Five hundred didn't exist back then so he just using the Dow and then in a little more than two months it was down forty nine percent to one ninety eight. You Move Ahead to August twenty ninth nineteen thirty. Which is the day before he was born. It was backed up to two forty so and it rebounded twenty percent. People have found that like okay. Stocks went down but there. They've gone back up back then. People were thinking that they were on the verge of the Great Depression. You go ahead less than two years to July thirty two. The Dow is down to forty one so from the peak went from three eighty one to forty one a decline of eighty nine percent and the Dow did not get back to its nineteen twenty nine peak until nineteen fifty four. Wow he did point out that people got dividends at back then. Dividends were higher but still price percentage the market was down for more than twenty years so buffet called the Great Depression a testing period. That caused some people that lose faith in America. I don't know if he was playing out to say like times ahead could be tougher than we think or just pointing out that America has seen worse times but regardless he says that anyone's going to lose faith in America that's a big mistake which brings us to his persistent message of being a long-term optimistic pointed out that despite all these challenges from seventeen eighty nine until today the wealth of the of the United States has grown five thousand percent and that's adjusted for inflation. He also pointed out that since the year he graduated from college in Nineteen Forty nine at the age of nineteen one dollar in the Dow has grown to one hundred dollars. So how do people benefit from what he calls the American miracle? Well as he often does and I think it's always interesting that he does this during the Berkshire hathaway annual meeting because it's an annual meeting of people who own individual stocks. He thinks the vast majority of people should just by an S. and P. Five Hundred Index Fund and. He mentioned that's what he does. That's what he has directed his will when he passes away swimming. He predeceased. His wife. Ninety percent of that wealth will go into an SAP hundred index fund. In fact one question asked about Berkshires underperformance as a stock. It's underperformed this year as well as the last decade a something. I know personally because I've owned Berkshire for more than a decade and he was basically said. I agree that that's an issue. He said that the truth is that I recommended. Sap Five Hundred Index Fund. To most people. And I happen to believe that Berkshire is about a solid is any single investment can be in terms of earning over time. But I would bet my life on whether we beat the sap five hundred over the next ten years so as always with buffet. It comes down to betting on America for the long term. But it's clearly means the long term to be like very long-term it mentioned the timeframe twenty to thirty years a couple of times the only truly positive thing he said about shorter timeframe at least that I can remember was in response to a question about whether Berkshire expect significant significant layoffs among its workforce which at this point. It employs almost four hundred thousand people in response. He said that some businesses will have to make adjustments. See's candies closed down. Nebraska Furniture Mart. Some of their factories may have issues. It's the funniest list of companies. I'm sorry Oh it's like it's very clean seas it's like what. Why Energy facturing? Yeah it's it's everything it's all these companies that you like. Yeah I think I've I think I've heard of Kim or have it at all. It's quite amazing. But well while he expects it some there will be have to be some layoffs. He doesn't expect them to be significant in that five years from now he expects Berkshire we'll be employing considerably more people so that to me says he expects five years from now. Things will fully recover and I think that's a reasonable timeframe. I certainly expected in five years. This time period will feel like somewhat of a distant memory. I certainly hope so But it's certainly possible that over the next year or two things could turn out to be pretty rocky
"A Loan Shark operates outside the Lor for sorts into intimidation and violence. We you don't pay them back as Atlanta greet but they are not above the law for any lender authorized or not who harasses? You is breaking the law. In fact they have no legal right to make you pay the loan back at all because the loan itself is illegal. A LOAN SHARK CONSIDERS IT. Bad business if you're able to pay back the loan as when Wendy because the loan shark only gets to make you bleed when you fail to repay loan sharks like to prey on good people and they do not become an option. Unless you're really desperate for money. They make their loan seem attractive yet. Their goal is to rob you blind. It's like borrowing money from someone in a gambling casino using your wife as collateral terrible right. That's how it is because the interest rate from loan sharks keeps soaring up to about seven thousand percents. They can even trop you in a never ending cycle of debt. You end up being nothing but interest for years and years to come they will threaten you not what debt collectors but with physical violence loan. Sharks are never a good idea. Even if you feel you have no other options. Bbc News reported that some loan sharks have attempted to charge interest rates as high as seven hundred and nine hundred thousand percent absolutely insane. One woman who a five hundred pounds ended up being eighty eight thousand pounds. You might have been pressured into Bari. More money to repeal one loan with another and end up in his spiral of debt that you can never repay payday. Lenders are not loan sharks. You should know the differences stunned US laws. State the maximum interest rate a lender can charge in each state ranging up to approximately forty five percents. Payday lenders often grunted exceptions. Which means that payday lenders can charge up to four hundred percent. They can offer such high rates because of the special provision offered by state governments yet loan. Sharks would be charging rates that are higher than the rates charged by payday lenders. Get the gist payday. Lenders are illegal. Form of high interest lending offer to Baras. They are typically registered entities that follow standard credit application procedures for a question personal information for credit check. Payday lenders also require proof of employment and income payday lenders. Usually as their principal offered on the income and credit profile while payday lenders are not known for violent tactics in debt collection. They do of a short term rates on payday. Loans with extremely high interest. Costs making it difficult for Bartolotta repay young clip pedia how to spot a loan shark. Sputnik loan sharks quite easy. They lead to or not about work in usually with no record of payment. They refused to give information such as the interest rate they take away from us such as security your passport bankcards and lines the increase the debt or add additional charges any time. They feel like they're refuse to allow you. Settle your debt even when you want to do so because only by owning can they make more from you? In most cases your business dealings with loan shark are considered illegal even you therefore comedian on offense reporting alone shark is the best thing if you have an approach by someone you think is a loan shark. You need to report them and contact the police if you are in immediate danger. So why do people resort to loan sharks speed ease and convenience of some of the main reasons? Unlike other providers that have strict lending illegal lenders can offer instance decision loans and have lenient criteria. People who need urgent caution barn was who have been turned down by conventional lenders fueled tinted to get quick loan loss of employment loss of income for long illness and lock of health insurance divorce and death in the family or other reasons why people contact loan sharks but prominent start. This is a quick fix short term. Solution Borrowers with serious. Financial problems may become in a long-term gets
Unemployment compensation is still not going well
"Unemployment compensation is so important right now with tens of millions of Americans unemployed the highest unemployment rates since the Great Depression in the Nineteen Thirties and the state of Florida is now the biggest fail and the United States at getting unemployment compensation to its citizens and no other state is close. Usa Today posted an analysis from the Associated Press. That found that Florida. Unemployment compensation just isn't getting paid in fact most were radiance can't even get through online or on the phone to start an application even of those who have been able to file an application seven out of eight who've been waiting as much as five weeks have not been able to get a penny of their unemployment compensation. It is a scandal that the state of Florida has failed it citizens so horrendously badly and the governor has gone radio silent. I think it's time for the governor of Florida to stand up and apologize to the people of Florida and come up with a clear plan. Everything they've tried so far has been an absolute fail getting unemployment compensation to people. I read an interesting story in the La Times. About what California faces with the largest number of people in the United States who are independent. Contractors GIG workers and self-employed who are eligible under the corona virus. Relief Act for unemployment compensation. Who usually would not be the number of people in. California unemployed in that kind of category almost equals the number of traditional W. Two employees who are unemployed and California has been able to process unemployment fairly okay for traditional workers but they've really fallen down on the job is with this. Massive number of millions of people who work is independent contractors. Gig workers are self employed getting unemployment compensation to them and in smaller states. The second part of that has also been a problem More and more states are now getting money to gig. Workers and self-employed and independent contractors. But it's still been the weakest link in how unemployment compensation is worked now. One of the craziest things is that when the money starts flowing forty seven percent of people is the estimate who will ultimately start. Getting their unemployment will make more on unemployment because the six hundred dollar a week. Federal Supplement for four months during those four months. Forty-seven percent of people will make more not working than they do. Working and that in my mind is not a healthy thing but it is the law and it may mean that a certain number of people will try to stay out of work because they're making more money not working and that's not how unemployment should work. It should not create an incentive for people not to work versus work but it was the wisdom of Congress and the president to do that. And it's how it's GonNa work through the end of July ultimately after July when unemployment goes back to just the amount states pay those are very small amounts of money that states pay and people will have an extra incentive to go back to
Why Negative Prices Exist and What They Can Teach Us
"Last week? The price of the May twenty twenty West Texas intermediate crude oil futures contract known as WTI fell to as low as negative thirty seven dollars per contract that means the holder who was long oil was willing to pay to exit the contract. Cnbc markets reporter. Pippa Stevens wrote on Monday for the first time on record west Texas intermediate the US oil benchmark plunged below zero and into negative territory before Monday. Many thought this was impossible. Maybe just maybe it could drop to zero effectively erasing. All value but negative territory seemed unimaginable. Not least because it's hard even to wrap one's mind around it pay someone to take your oil in this episode. We're going to see why oil prices went negative. We'll also look at other examples of negative prices and why they exist and what we can learn from them. The WTI futures contract has a physical settlement which whoever holds the contract when it expires receives a barrel of oil the contract settles in Cushing Oklahoma. That's where that of oil is delivered if he owned the contract. That's where you're going to get your oil or at least arrange for somebody to store it for you. Us crude inventories are near an all time record high. In cushing Oklahoma. Seventy percent of the storage capacity was four as a mid April and a Reuters. Article suggested that most of the available space already leased out. There's nowhere to put that oil. That is being received as part of the future contract settlement. Now the May oil futures contract has since expired and now the June oil futures contract is the front month contract that will expire in the third week of May. Yesterday the June contract fell twenty five percent just under thirteen dollars. They United States oil. Etf USO fell fifteen percent. It has lost eighty three percent year to date leveraged exchange traded funds tied to oil have shut down. They lost all the money products by wisdom tree. Ubs and velocity shares which is owned by Janice. Jim Cramer said there are times in life where people know that there's an instrument that is faulty and they can shoot against that instrument and bury these people there is this financial problem people who are buying the USO that United States oil energy T.F. Bay our financial people. So if you're a real person or you're a large contractor a large player they can wipe out the USO in. I think that's been what's going on. It's not a conspiracy. It's a reality when you have an organization that can't take delivery. Well you should crushed that organization every time and that's what probably happened. Who are these people that are getting crushed that own USO? Well some of them are retail investors. But most are institutional investors John Highland. He's now retired but he was the former investment officer of the United States Commodity Fund which manages USO. He pointed out that eighty percent of USOC shares are held by non retail investors hedge funds include energy trading desk and other professional players the purpose of this ETF was to allow investors to get exposure to the front month contract of oil at the end of twenty nine thousand nine. It had one point. Two billion dollars under management and the vast majority of its investment at the end of December was in the February wti crude oil futures contract that expired in January every month this ETF would sell that contract right before it expired. And then by the next contract in order to make money it needed to sell that contract for a higher price than what it paid for it right now when you look at the price of West Texas intermediate crude futures contract or is a steep premium as you go further out
Embracing the Spirit of Adventure in the Midst of a Financial Depression
"Of us have a list of things we'd like to do. We have a list of adventures. We'd like to participate in and it's always someday. Someday I'll do that but there's generally something in the way usually it's our jobs because after all most adventures take more than two weeks unless you're in Germany and which case most adventures take more than eight weeks released a lot of the fun ones that we want and so what we often lack is time not necessarily money but time. Because it's just not the right time or I'm right now. I'm building my career or I've got to get another job. I don't WanNa have a gap in my resume. And so we're often looking forward to the next thing the next thing but sometimes a break is forced on you. Sometimes you get laid off. Sometimes everything shuts down and the adventures are closer to home. And so I wanNA give you some ideas to help you really focus on recognizing that you can have an adventure right now in the midst of everything if you will embrace the spirit of adventure you can have an adventure and your own house. You can have an adventure in your backyard. I think sometimes we really appreciate this with children because they appreciate the simplest things they love set up in the backyard and sleep in the tent. We adults take what I want to sleep with a ten in the backyard. I don't WanNa go sleep in the tent in the backyard children. They love it and I think that we can embrace and do really well if we would embrace a little bit more of that spirit of adventure to kick off today show read you a short story about a man named Jim and To my knowledge this is a true story but I read this number of years ago in a book called locusts on the horizon which fascinating book really good book but in this book locusts on the horizon. I found this story. It's called three Buderus with the Spanish presentation pronunciation three boroughs. Jim was a traveling man and he was free. Like few are half white and half native Shoshoni. Jim Grew up in rural Idaho and he knew what freedom was he also knew there was more to life than the rat race when he turned eighteen. He was a natural for the US army to recruit so he volunteered and eventually wound up in the Republic of Vietnam with a special forces after a particularly fierce fight with regulars from the North Vietnamese army. Jim Wound up back in the USA with a permanent limp and missing an I twenty five years later in the early nineteen nineties. Jim decided he had enough of the daily grind and he wanted to spend more time seeing America. He had been teaching survival courses and his students volunteered to help him make his traveling rig. Almost everything. In the project was scavenged or bought second-hand. His Gypsy wagon was an old Nissan pickup. That had been rolled and the engine and transmission had already been salvaged from it. They took the crushed body off the frame and kept the hydraulic brake system. And the parking brake intact. They made a wooden wagoner's seat on the front with a wooden pedal for the brakes. They then used scavenged lumber and and corrugated roofing metal to build a covered gypsy wagon on the old pickup frame into the Gypsy wagon. They put an old woodstove built a bed and constructed storage areas including a hidden lockable compartment to store his guns a deep cycle. Rv Battery was put into its own wooden box. Hooked through a small regulator to a small solar panel this powered an automotive cabin light inside the Gypsy Wagon. An old donated forty channel. Cb Radio and a scavenged AM FM car. Stereo mounted on the back of the Gypsy Wagon was a steel whip style. Cbs China and near the front was mounted a scavenged car radio antenna. His Motor was a team of three boroughs. Harnessed side by side. The harnesses were made from old discarded. Firehoses the rig rolled on old castoff car tires wouldn't have lasted twenty minutes at road speeds on an automobile but it borough speeds. They were good pretty much indefinitely. The three boroughs restrung enough together. That if they didn't feel like stopping man sometimes they didn't they could tow the entire rig with the brakes locked and the tires skidding a small trailer using bicycle rims and tires was made and was towed behind the dipsy wagon. The entire small trailer was a chicken coop for small. Bantam chickens on top of the chicken coop. Jim kept a container of chicken. Feed and a couple of bales of hay for the boroughs when grazing was sparse. Such as when they took a break alongside a desert road so at the breathtaking speed of three miles per hour gem saw America lived. The life met people wherever he went and had more than one argument with the highway patrol. Mostly about traveling alongside the shoulder of the road on the interstate. The last we saw Jim was fourth of July nineteen ninety four and he was camped out. Near the base of CA- China peaks just outside of Flagstaff Arizona. His goal was to head back to where he grew up on the Salmon River in Idaho. His guests was it was going to take three months more or less. He wasn't in a hurry because the journey is what mattered and the destination was just part of that now. That's Jim but I think that if you're going to have an adventure one of the things that you can do. You can embrace the spirit of an adventure. You can embrace the spirit that says it's more about the journey and getting out there and getting gone then about the stuff and if he will do that if you will make that embrace what you will find is. You're no longer bound captive to needing more money as go through these adventures. I'm GonNa give you ideas of how you can minimize the cost. And I think you need a little bit of money but not much if you follow in. Jim Spirit recognized that he needed almost no money for his particular adventure. I mean a couple of bales of Hay here and they're nice. That gas is pretty low. Cost Right now but still. Jim didn't need gas at all. They need a little bit of grass from the side of the highway. And some bales of Hay and you can have a similar adventure if you embrace it. The cool thing is though with a little bit of modern technology you can live more comfortably on an adventure cheaply then at any time in human history you can have all the comforts of home with you on an adventure traveling adventure more cheaply than ever before. It's really really incredible. How much is available to
To Pay Off Your Houses or Focus on Saving
"Go now to Jason in Dallas Jason. Welcome to the show. How can I serve you today sir? Hey Josh good to be talking to you then. Listen to you for about Three years now under stuff. Thank you glad you hear. You hear me okay. Yes sounds good. Go ahead all right So I had a question about My wife and I plan for the next couple of years and just your financial advice and just with them on it So currently Between my wife and I Eighty grand a year. I make one hundred Between two jobs And we have a home Before the the cove it it would we could have sold it for thirty and we have ninety eight thousand left to pay out that was the BC before covert therefore Kovin. Exactly we We've been pretty aggressive on paying off our house and we're on a plan to pay it off by about the time next year With just been real good refer Rigel But with all of the economic impact of Corona we were thinking possibly shifting clan instead of paying off the how quickly as we can to Stockpiling that money and Popular another per how and running out our current one the Cabbie autism that makes all this kind of tricky is. We have our first child on the way due in October and By the end of the year my wife plan on quitting her job staying home with kid and starting our family so that would drop and come down to a hundred a year and then now we're we're between would be able to rent out our current house and have a you know enough money for another house. Russ move into when our current wrench would cover. our mortgage since we have a fifteen year mortgage That clear now so the the specific question is. Should we buy rental at this point in time? Is that the basic question. Our dreams have two three acres and nigger home rate. More kids up what we WANNA move into. And we don't know whether to stay with our specific plan to pay off our house And then stock pile up money to try to get into that that next ten fifteen year house Or Save the money now and look for the opportunity in the midst of this. I would not pay off extra. I would not focus on paying off my house right now. Especially if you've previously thought about working in a working on a plan where you're going to purchase investment property. I'm all for having paid off houses but I think that it makes more sense for you to start. If you're if you're interested in owning rental property I think it makes much more sense for you to start by building up a rental portfolio early in life setting up that setting that in place you can have your tenants paying off your rental mortgages for you and then go to paying off your house and paying off the market paying off the rental units when you look at where we are right now I don't see any benefit of your having paid off house. I do see you're having a benefit of you're having a lot of money in the bank and so what I would do is just be clear. That was that was that was an inaccurate statement. If Your House word today totally paid off then it would be helpful. It would be beneficial but right now if you lost your job and you instead of having a ninety eight thousand dollar mortgage you have an eighty eight thousand dollar mortgage. You're not helped by just simply having a slightly lower mortgage Balance What you need is money in the bank. And so when we're in an emergency like we are right now. The first thing I do is stop all debt. Payoff just start stockpile cash and then wait and see wait and see what opportunities emerge now. I think there will be quite a few opportunities to invest in real estate very productively and profitably in the coming years and so that would be my plan. Is I think that one of the most important things with real estate in order for realistic to work effectively. You've got a you. Can you can often find a deal. But there are times when it's a lot easier to find deals than others and depending on the market that you're in the market simply haven't been deals available over last couple of years. I've known a lot of real estate. Investors said. I can't find anything worth investing in now if this recession goes according to normal normal recessions than starting six months from now a year from now there's going to be a lot of distrust sellers and that's means that there's going to be a lot of opportunities for real estate investment and so if you can maintain your income and if you can have savings that's the time to start expanding that portfolio the other thing that makes me say that is with regard to timing is two to three to three acres in the country. Bigger House Great. You don't need it with a baby. You don't need it right now. You need it in five years and so what I would do is I would set out a five year. Plan to buy five rental houses in the next five years and then go ahead and once you bought those five rental houses in the next five years then make the switch to the two to three Acre. You know farm at out on the edge of town or the big big old farmhouse because a five year old will actually use that. You don't need that at this stage of life and so I'd I'd keep on investing. I'd stop the early pay off and I look for deals. If no deals emerge and you're you're you're you're from now and you got ninety eight thousand dollars in the bank in destroyed a check and and pay off the mortgage but I think you'll start to see some deals that will entice you to invest
The PPP Loan Disastrous Result
"I want to talk right now about something. That has just absolutely fallen. Apart and that is assistance to small businesses that many of which are just days or weeks away from shutting down permanently and it was the intent of Congress weeks ago to get relief to those small businesses and a lot has gone wrong. There's a new briefing right now on the SBA website at SBA dot Gov that for the direct lending program called the idol a economic injury disaster loans for Corona virus. They're not taking any applications reason. They ran out of money. They ran out of money pretty much the second day the program was available and started trying to ration money. That didn't work. So they're just flat out out of money for small businesses then the payroll program that launched with great hope that was going to help businesses from very very small ones up to businesses. That a lot of measurements would say mid size with five hundred employees that this program has been a complete fail because of the attitude of the banks how they've handled the program and this is atrocious. And when I referred the attitude of the banks I'm overwhelmingly referring to the problems that have existed with the large big four giant monster megabanks and then the next tier down with her known as super regional banks that listen to this stat was compiled by Marketwatch so ninety percent approximately of small businesses companies that employ less than twenty people nineteen or less and they overwhelmingly have been pushed away and rejected by the banks attempting to apply for the Payroll Protection Program. In fact based on what Market Watch has been able to figure out almost one hundred percent of the three hundred forty nine billion that is basically spoken four now awaiting an allocation of more money from Congress went to one per cent of small businesses. Those that employ between one hundred and five hundred employees. Now think about that. Ninety nine percent of businesses employ less than that ninety percent approximately employ nineteen people or less and they have been shut out overwhelmingly from this lending program by the giant monster megabanks and the super regionals that account for perhaps eighty percent of banking market share in the country why because the big businesses of the small the ones that employ one hundred five hundred people tend to have very solid relationships with these super regional banks and the four giant monster. Maga's they have a personal banker. People know who they are at the bank more or less and they came first in line and with many banks the only on line for this money. The small number of community banks around the country have tried heroically to get lending to businesses of less than one hundred people but they have not been able to get enough loans processed through the SBA system to get any significant share of the money when Congress eventually reaches a deal on this. The banks must be required as part of additional funding to no longer discriminate against businesses based on their size. The banks. Just don't WanNa be bothered with a small restaurant a small retail store a small business of any kind because it's just not their big. Well let me tell you something. Congress needs to require that it's their thing and get this relief to smaller small businesses. And not just the biggest of the category that was considered to be small business. A hundred to five hundred people in addition you should know that now nine traditional nine banks are in this process. Pay Pal is one Cabbages another KABC. Be Number of small business lenders. That are not banks are either already in the program or soon will be and they are not turning their noses up at you if you have three employees or fourteen. Employees are twenty five employees and shame. Shame shame on the banks that we saved during the banking scandals that led to the financial crisis in the great recession that we gave them two and a half trillion dollars and basically nobody went to prison for all the criminal behavior and now they are turning their backs on main street in the United States. This is hideous and unacceptable behavior by the
"Should I Take the PPP Loan?"
"Linda's with us in Kansas. Hi Linda How's it going out there? It's going wow thank you. How CAN WE HELP TODAY MR MD? I'm so blessed to be able to talk to you. I'm the owner of small business. I've been in business for over twenty years. I don't have any debts. I never took out a loan on the business and We you know we've been profitable and I have three employees now. I was advised by my landlords that I rent the space from and by my financial planner to apply for this paycheck protection. Plan and Right before the coronal violinist you really hustled and we got a lot of business in so it would be okay. I mean I could get through this without taking out the loan but I was told that it was free. Money and So what do you find? Do I take out the loan or do I lay off to other people that works for me about you said you could make it through it? I can make it through it only if I'm by myself because I'm the third person kind of businesses it. It's it's a service industry specialized okay and so how long before you run out of money if you don't take the loan I would say three months. So why can you not make it three months? I can make it three months. I'll lay anybody off if I don't I would say a month and a half. Okay all right. So why do you have to make the decision? Now lay someone off or take medicine loans to four different thanks I mean if you didn't take the loan okay and you want a month and a half out assuming the loans are still available. They may not be but you could take it then right well. That's a good idea. I hadn't thought it because after a month and a half. I think you could be turned around. What service do you provide? Well it's an. It's an art service. Okay all right cool. Well the thing is what we told our folks here is. Are you and your husband in good shape financially? We're you don't have to take an income from the business for awhile. Lightsaber okay. For few months. Yelich for like if you didn't take an income for one month you can keep your people. Yes yeah I would look at you not taking an income before I laid people off and I would look at laying people off before I took out a loan. The problem with the P P P loan is it is a loan it has a term with an interest rate it is not a grant it has provisions and you can pull the law up and read it. It's available on the Internet. It has provisions for forgiveness of the loan. And that's why you're advisors are acting like it's money if you made those provisions exactly and if they don't change the game in the middle of it and you're dealing with the SBA and the federal government and frankly I don't trust their competence and I don't trust Congress to not change the game so I am never going to borrow money. I can tell you at Ramsey. The first thing that will happen is is. Our leadership team will go without pay. The second thing will happen is is that another layer of our leaders would volunteer likely to go without pay. The third thing that would happen is we would go. Everybody else skips a paycheck so that nobody loses a job and way after that would be and layoffs. And I think you're a ways away from this and I think these guys are just going free money and I don't think it's free money. This ain't monopoly. This is real life. Those are real dollars and they're going to want them back if you don't meet the guidelines. I disagree vehemently with the advice. You've been given a void the P. avoid the federal loans. You'RE GONNA regret it America if you don't. I'm just telling you avoid the stinking debt. Please guys please and you can be mad at me and you can make fun of me some dinosaur if you want. But I'm sitting here freaking open too. So shut
How Stories Go Viral and Drive Economic Events
"I recently celebrated a birthday with a good day peaceful. What I didn't have was a birthday cake and we did not seeing the Happy Birthday Song Robert Schiller in his book Narrative Economics and which today's episode title comes from the Subtitle of his book wrote that the Happy Birthday Song. Maybe the best known song of all time he mentioned. It's not particularly admired for its beauty or grace. It grew unplanned and uncontrolled he writes. There is no history of a government edict requiring the song to be Sung or a marketing campaign promising lifelong popularity for those who sing it or have it sung to them. The song spread like an epidemic in the nineteen twenties and thirties fell back a little bit during World War. Two and then it began again Warner Chappell. Music had a copy rate from nineteen thirty five collected millions of dollars up until two thousand sixteen when it was determined. That happy birthday to you was very very similar to an eighteen. Ninety three song titled Good Morning To all sounded exactly the same and so they lost the trademark. The Happy Birthday Song went viral. Like an epidemic. We have all become more familiar. I think with the mathematics behind epidemics. One of the first theories was proposed in one thousand nine hundred eighty seven by William or guilty KEROUAC and Anderson Gray. Mckendrick KEROUAC was a Scottish biochemist Kendrick. A Scottish physician. It was as simple model. It was called the Sir model where they divided the population. The percentage of the population that is susceptible to a disease the percent of the population that is infectious and the percent of the population that is recovered and they add up to one hundred percent. According to their model an epidemic ends when the percentage of the population that recovers and is immune is increasing to such a level that leaves less people that are susceptible and those susceptible people are then less likely to be exposed to those that are infected. Now there are much more complex models. There's what's known as compartmental model called Se. I H F R or s this for susceptible e is exposed is infected. H is hospitalized. F is dead but not buried and our is recovered or buried a lot more complexity there in this episode we're going to look at how narratives stories impact financial decisions and they act very similarly to a disease virus in terms of how they spread and then fall back and the epidemic ends now that the global economy has been shut down for a month or more government officials have to decide. How are they going to restart the economy and as citizens we have to decide? How actively are we willing to participate in the economy in terms of going out in public again? There are several scenarios that very much depend on what percent of the population is susceptible versus having recovered. It's possible there are millions millions. That were ASEP dramatic and so we have heard immunity or perhaps not the economy could be opened up again to let the virus spread. There could be a second wave. And there's the risk of overwhelming the healthcare system so that there's a spike in death because a large percentage of the population is still susceptible or the economy could open up and deaths don't spike because the virus has been spreading for months and a large percentage of individuals are already immune that would mean that the overall mortality rate is much lower closer to that of the flu because so many people have had it and we know approximately how many people have died or and this is probably what's going to happen. We're going to open up. The economy gradually and see how things evolve. There's a great deal of uncertainty before we continue. Let me pause and share some words from one of this week sponsors policy genius. There's things that we look back on and think how could I be so wrong? The truth is we're always going to get things wrong. That's just life but there are also things we can get right on the first try like shopping for life
How to Sell to Crack Into All the Government Spending
"I hope found this company called gump spin we help companies Celta government. We actually help. Government DO BUSINESS WITH COMPANIES. We kinda work on both sides of the street. I started my career in the DC area actually started my career as a civilian working for the navy so actually helped government process. Actually something unique. I actually helped sell F. Eighteen fighter jets two. Us Navy into some international Countries at that point really grew that experiencing to last twenty five years really helping again companies either. Sell the government or helping the governor of process extreme line Spent most of my career and currently of a suitable Proto virus time. You know we have been exploding. It certainly very hot topic while the money. The government's putting into spending by the only the only illumination spending more money here currently so we really the knicks just exploding less of a week. So what does government spend? Do exactly sure so a governor. We wish started many years ago. Ten years ago I had a prior company. We saw with the laptops. The police cars are sold to the government that was my most recent gates selling directly to the government and during that time for a of times you can sell the government. Sometimes the process doesn't make sense right. You're like why did he do man what happened but we found out. It's like the old saying years ago. Follow the money right and so what we started do. At the end of that company we started to gather the purchase orders from government agencies. Work with what we found as we started to gather that for our own company it was super insightful. So for example. Hey if you saw company work with a company nine. A few solid agency weren't company for nine straight year nine or ten straight years. The chances you're gonNA come in and displace them is really small. If you saw an agency use a new vendor every two years of a much better shot at that contract right makes total sense but we as outsiders. We don't know that when we were doing business so reason I'll tell you that would go spend started to do many many years ago. Is We gather all the purchase orders from government agencies? We GO GOVERNMENT TO EIGHT GOVERNMENT AGENCY GOVERNMENT AGENCY FEDERAL STATE LOCAL. Gather all their purchase orders. And we put in this online database or folks can query just like Google. You sell widgets you can go online. It's it's amazing you can see. Every government agency buys a widget. You could see who they're buying from and what they pay. It is eating in the world of kind of government sales. So that's where we started. We blossomed into a variety of things. But that's the core of what Gulf spend does super unique patented by US. Just amazing ride last several years at. And how do you process all those purchase orders and what form do you? GimMe GonNa pdf format or you can imagine. It's all over the map rights and there's ninety thousand plus government agencies. I would say like I'm in a room with people. Say Write Down Your name address. Telephone number social security number. You know some of the information if I asked ten people do what they all do it differently right at all someone ready to on the line somewhat stacking someone put their own over the Franchisee. Someone's issues dashes someone as a commander with ninety thousand government agencies. They all do it completely different. So one of the things that makes us turn and burn a proprietary piece of software. We get the foul from government agencies. They come in every format you name it from Seattle electronically try to obviously get digital. And so we have a piece of software similar to ingest that information it's able to Parse it out and then we put it up in our database with make aquarium on about twenty four hours. So it's it's a huge set of data. It's about you folks a sense. It's about two hundred fifty times the size of Wikipedia. So it's a normal database but that's the thing that makes churning Burns's piece of software in about ten years so I see from your history. You sold the company to lexis-nexis this sounds a lot like what Lexis nexis does for lawyers through. It's really interesting. That was some of the impotence of this solution so we were again. We were at the time selling the public safety agencies again. We have this mostly substance. They have a laptop car life. A ten point fifteen years ago. That was very very unique so we help that marketing. Kinda grow right prior to that kind of singing. Hey how does this data and make it more scalable? How DO WE HELP? More people use it because we were we kind of use it in our own functioning of our company. That's exactly what we're looking at the net lexus. Next model how they use the data and kind of use that insurance where the government market so very very announce
Answering Your Questions of Stimulus Relief
"Wants to know she said I heard if you're on social security and you receive less than thirty thousand dollars per year you will not receive the stimulus money. Is this true? I have not seen anything saying that anywhere. So if you're talking about the twelve hundred dollar helicopter money I have not seen that the the senior citizens that will not receive it or senior citizens that are claimed as a dependent of someone else like. Let's say an adult child provides a lot of your care and Pays for more than half of your costs. And they may claim you on their taxes than you would not be eligible and they would not receive any Any helicopter money but if you live independently. I know of no reason why you would be eligible for the money. Doug has a question about his stimulus. Jackie says I've heard rumors that the cove in nineteen stimulus checks are going to be deducted from twenty twenty income tax refunds if a refund is applicable. Is that correct? No this is that something that I it a couple of days ago. I said I was going to have to read up on because we had another question about how this is affected in terms of taxes. And this is like money. Falling out of the sky it is Essentially a non taxable gift from the taxpayers collectively to you as an individual tax payer and the twelve hundred bucks per individual and a couple twenty four hundred. The five hundred per dependent child That money is just money. That's yours to us into spend as you need or to save for the event that Finance become more difficult for you over time no tax will be do chem I right. Michael says that he is self employed. He has no employees and he heard that there is no provision for people like him. What do you suggest I do? Is there any program that I can apply for help? Okay what's actually different? This time is there is assistance to people. That are self-employed self-employed individuals who've had their incomes. Crushed or eligible for what I think is the first time ever for unemployment compensation. The unemployment compensation will continue for Roughly I don't know if it's going to be sixteen weeks or seventeen weeks. I haven't seen final wording on that. Is Unemployment compensation you apply for with your State Unemployment Insurance Group And we have all the agency information for you with direct hyper links for all fifty states on our update to filing for unemployment on Clark Dot Com. We also have a deep dive story on it that we did not right but we linked to act. Clark DOT COM on applying for unemployment. So people that are self employed people that are independent contractors people that are GIG workers all three categories that under virtually every state law would be ineligible for unemployment compensation and all three categories. You are now eligible under the third stimulus Bill Joe Clark. Shane says I own some rental single family. Homes Have Fannie Mae backed mortgages under the new federal legislation. If my tenants can't pay rent will I have any loan payment forbearance if I can't pay the mortgage on those rental homes and if yes will how will that forbearance work? I am so glad you asked this question. Because I've been looking for the answer for people who have rental properties underwritten Indirectly by the federal government now. The legislation is clear that owner occupied properties. You're able to ask for forbearance for twelve months. I have not found anything that gives me a definitive answer yet for people who have rental properties because even though this is the first time we've had on the show. It's the third time I've been asked the question this week. By people off off the show people have been asking me who have rental properties that. They're worried they're tenants aren't going to pay is therefore available for them in what is essentially a Investment property not a personal residence. And hopefully that answer will emerge after this is adopted signed by the President and the regulations are issued. But for now I don't know Khem Sachs says now that the government is halting student loan interest in payments for six months. Does that mean that if I choose to make payments that the payment will go straight towards principal? There's no wording on that yet you know. There's no interest is going to be charged. But I've had a number of people ask me you know if I if I've got my job everything's fine. Just keep paying my student loans as agreed and am I gonNa get burned by doing that by missing the interest holiday so is best. I can tell you will not get benefit of the interest holiday if you continue to pay although that could change because I need to. I need to step back a second and explain something. And that is when the Congress passes a bill and then the president signs it into law. A lot of what's in there is worked out later by administrative agencies by the real various federal agencies so in the case with student loans it will be the US Department of Education that will ultimately issue guidance. On what will happen with something like somebody who says hey. I don't need a holiday. I'm going to keep paying amount. Do you get the benefit of no interest is an additional amount reducing your loan. That's the kind of thing Balhaf to decide because there's nothing I could find in what I've read. I've read that part of the statute that addresses. What happens if somebody voluntarily continues to make those payments so these kind of questions will be answered over the next several weeks? We only have a lot of areas more general information. Joe Clark. Brad has a question that might fall under exactly what you were. Just mentioning with the clarification from the different agencies but he says that his wife has automatic payments I in loans so we'll the grace period where the loans don't need to be paid. What will those automatic payments just cease for the time being and then start up again in October? That seems to be the plan because again the education department's going to have to make that happen but their intention is to cease all collections on loans for that period of time to be essentially no billing for loans and many people have them set up as automatic so there are two ways. People do automatics. If you have a bill pay service set up with your checking account and you just automatically pay certain bills every month. You will have to discontinue that if you're doing it for student loans because that would continue to go regardless of the actions of the US Department of Education on the other hand if your federal student loan servicer drafts here account each month. That's the activity that will likely automatically cease. So that's a distinction with a difference. It's very important that if you don't WanNa make your payments that you discontinue automatic bill pay and let me emphasize again. This is four federal student loans. Private loans are not included at all to this point. Private student loan providers are doing basically pretty much nothing for borrowers all. The action has been at the federal
The BEST Financial Strategy During the COVID-19 Pandemic
"There are things that can be learned during a crisis. There's also things that you're going to be in the middle of ego man. I wish I knew going in. But there's definitely something I'm going to internalize and then I'm GonNa make sure in the future. I don't get myself in this situation again now. What I think is so exciting Brian. Whether this is like a fortunate or unfortunate thing we've been through crises before whether it be the DOT com bubble or nine eleven or the great recession or fill in the blank. We've been here before. And one of the great things you said is after a crisis you can learn a lot from there you get to kind of do an after action review. We thought well maybe there are some things that we've learned from prior previous experience that we can share that might be viable as we approach this or even the next crisis. So let's see if there's some planning opportunities and things that you can figure out how this works with your financial situation so you not only go into this the next time stronger better and more prepared. You will be in a much better place to tackle shorts so number one. Give it gas and drive through it. I think I think we we. We talked about this. Appreciate you guys. Love recirculating this pitcher that Daniel created and this is supposed to me because he did some out. He found a picture of the hat that I had when party leader work in the drive through. I mean if you drove through the hardy's McDonough Georgia more than likely you saw me working there and I'll never forget that it was at heart disease that you know days of thunder crews Robert Hall and others it was. It was big hit movie and that we were the big sponsor restaurant and in that movie which I re watched probably in the last twelve months. I'll never forget Cole trickle gets in a situation where he has his horrible car accident and he's just not the same driver anymore. So Robert Duvall his character tells Tom Cruise. Hey when you see when you see the smoke when you see the accident coming ahead of you just drive through it you gotta hit the gas and draw through an encounter and if you're making an analogy we're in that situation right now. There's definitely smoke. Were concerned were fearful. You're trying to figure out. You have an investment plan. You have a dollar cost averaging plan. You have monthly 401k contributions. And you're like do I. Do I panic and pause and stop and stand still because you guys I hear you say standstill? But what does that mean for future investments? We're saying no if you're twenty years if you're in your twenties you're in your thirties during your forties even fifties. If you've got five years before you retire. All those systematic savings plans still need to be rocking and rolling so keep buying equity investments so buying risk gone asset. It's sounds like what I hear you say is that if you have planned appropriately and plan correctly when you see volatility when you see a downturn or when you see discomfort scary things that's not the time to be adjusting course changing strategy making moves trying to figure your way out of it. All of that planning and preparation should have probably happened before you got into the mess. It's just like in your race car driving analogy. It's the reason they have on the suits and helmets. They don't try to put the helmet on while they're getting into the end of the crash. That would be counterproductive. I think it's also we will look back in five to six years in the people who made money on. This is going to be a lot of people but man look out lucky. That person is Sean Angelie. They man it must be great that they had this opportunity to do it. I I. It's just like people from the two thousand. Eighteen non collapsed were real estate. I have clients that bought rental property back then that are sitting quite nicely now. Wow how did they knew to do that? Did they have some crystal ball? Some magic tea leaves no guys you just have to look at. The current financial situation see where the opportunities are and be willing to maximize the opportunity and a lot of people. They think about this when they look back and they go. How did they know about the financial opportunity guys? The opportunity is big enough to drive a truck through. This is not something that requires you to be a genius when you see that valuations of companies like price earnings ratios of the stock market and the S. and P. Five hundred is getting down to historic lows. Gets kind of easy to see? We're probably getting closer to a bottom than we are to the to in the losses that we've fallen down from so keep buying those risk assets that we get all the time as people say to us. Oh well okay I hear you say key by but don't know where the bottom is. Why don't I just wait until it gets to the bottom and then I'll start buying well? That's great if you wouldn't mind sharing with us with the bottom is going to be then we'll all just make tons of money. What actually happens. We never know exactly when that knife is going to hit the bottom. We never actually know when it's going to bottom out so while right now today may not be the lowest point that the market's going to get to. It's still a great buying opportunity. You don't want to get it just right if you can get close over the long term. You're going to be successful. And that's why we we're GonNa talk later about the importance of creating a systematic savings plan. And why that way you can take the emotional part out. But here's let's move on a number two we talk about. This is a tool you can. Use is called harvesting losses. This is something that I won't and your Batman Utility Belt. I want you to have this tool imbo. What's the power of this? Yes this is actually one of the things I would say. Probably at at the firm abound wealth management. We've been doing the most in the past week or two. This is probably been the most active that we've been doing. So let's go to like a webster's dictionary definition. What IS TAX LOSS? Harvesting will tax loss. Harvesting is the practice of selling a security that has a loss by realizing the loss investors may offset taxes on gains and or income. In the what this doesn't say is I'm going to sell security at a loss and just go to cash sit there. Will you go to panic when you tax harvest? You're actually recognizing a loss without changing your overall investment plan investment strategy. Yeah what I like about. It is is that look. We know. Markets are down like we have a v-shaped recovery and there's even a perfect illustration. Let's take two people that start at ten thousand dollars. Let's show the differences between this sure. So let's say that we have to investors F. T. E. D. Daniels due to investors Tony Entries and they both have ten thousand dollars at. They're going to invest just in a broadly diversified index fund. Let's assume that for both of them. The value of the investment drops by ten percent and they both had ten thousand dollars invested and then it goes down ten percent down to nine thousand. Well Tony he says you know what I listened the money guy show so what I'm going to do is I'm going to sell that. Index Fund. Nine thousand dollars and I'm going to immediately go vest. Invest that Nine Thousand Index Fund. It's similar same type of asset class same type of investment opportunity but it's not identical is materially different enough that. I'm not just buying more of the same thing. Have a little bit of a different. So maybe one international index to another that way you avoid the wash sale rules no wash. That happens so theresa on the other hand she does nothing she just lets her ten thousand dollars nine thousand well then the investments. Both of them come back up. Let's say that the investment for both of them goes back up to ten thousand dollars so they both have an investment portfolio of ten thousand. What was actually happened is Tony. He sold at nine thousand and reinvested. He actually has a thousand dollar loss that he capitalize on or that he harvested that he can use to offset any capital gain income. This year it can even potentially use it as offset up to three thousand dollars of ordinary income and if he has so much losses at not only the all of his capital gains and not only does he offset three thousand hundred ordinary income. He can actually carry those losses into future years and use them in future years. What I like about it this is. This is a strategy. That don't overcomplicate this. All this is allow. You don't put your money on the sideline you just walk in the paper of loss that way serves as a tax benefit. Meaning that you might actually get a refund of some money when you file your taxes in April. The other thing it does is. We know you're in a lot of mutual funds and other things issue out a lot of investment income. If you walk in these losses elise allows you to have an offset to that income so once again lowering the tax bill with really out changing anything in your risk profile. Not Changing. Much your behavior of how you're structuring. Your investments is utilizing the tool to save as much as you can off taxes so this is a great thing we talk about all the time. This is one of the things that we use when we are in some of the volatile times. It's a tool we use as we're perpetrating. Re-balancing clients are getting portfolios. Back into the right. Mix to take advantage of some of the volatility. Tax Laws Harvesting. Just like you said. It is a great tool in the Batman tool bell that you ought to think about
A Message of Hope Series: Dave Ramsey, Rachel Cruze, Ken Coleman
"It's just a hard time in our culture right now certainly in the United States and for that matter around the world so the first thing we wanna tell you this I'm old you can tell I've been there and we're GonNa get through this. You're okay going to work out. I was there when Y. Two K. Was going to end the world and it didn't and businesses went crazy and jobs were amiss and the economy was crazy and I was there after nine one one. Some of you weren't born yet understand but there was a time there that we really worried in America and we grabbed hands and we were unified but the stock market took us on a ride and the economy took us on a ride. I've been through a couple of flu. Breakouts of different names and people were scared. Nothing like this particular virus or scared. Everyone but I've watched a lot of people be sick. And it's it's a sad time in America in that regard went through two thousand seven two thousand and eight and I did one hundred seventy eight media hits and about seven days in those days because it was crazy and I was trying to tell people to calm down to not cash on everything and not abandoned. Hope because if you haven't noticed there is one thing more contagious than this virus. And it's fear it's airborne and people me you don't social distancing won't even help it's coming through your television screen. It's coming through. Your news feeds on your computer. It's coming from friends and relatives who normally were pretty level. Headed people better panicked right now or at least scared or at a minimum concerned. So just hear me loud and clear your okay. We're GONNA get through this twelve months from today. You can write it down right now and you can send me hate mail if you want if. I'm wrong but twelve months from today we're GONNA look back on this and go. Wow that was rough. We got through it the same thing. We said about those other calamities in crisis that I just outlined COUPLA principles that we're going to get into tonight number one is my friend. Art Laffer says no one makes good decisions when they're panicked or when they're drunk out some of your both some of your chosen one over the other. Some of you are just panicked or at just in a moment in time just in a five minute period of time you can become panicked and do something that takes years to get. Your family passed the mistake that you make while you're out of control. Your critical thinking skills. Just dissipate when you're panicked. You've got to calm down. Calm down our friend and other personality Dr John Bologna. He's a crisis counselor and he says when you're in a crisis facts are your friends facts or your friends and you have to control your input. What is coming into? Your brain is a continual news feed of fear. You watching the news channels. Twenty four seven. I gotTa tell you there's very few people have strong enough spiritual constitution to do that and not cave to the fear. I don't do that. I'm a part of that media. I'm on all the shows on all those stations. Those people are my friends that I I am not going to sit and feed my brain that all day long. My friends exemplary used to say when he was alive he said every morning i read the Bible and read the newspaper that way. I can tell what bowe shots are doing. So this is real. You got you have to control your inputs. And you have to have self control over your emotions when you're panicked. Some of you are You're just melting down. You've lose your ability to make good decisions other times. You're getting Maine and you're being nasty each other or your shaming people on your facebook page. Because they didn't do exactly what you thought they ought to do one way or the other but people that are normally nice people when they get in this funk emotionally or being very unkind some of. You've been unkind to your own family and you ought to be ashamed of yourself. So you've been unkind to someone in the drugstore because they walked across the Dadgum Blue Line and you lost. Your mind calmed down. We need a lot of generosity right now. The Bible says I'm a person of faith if you don't know in the Bible says Jeremiah. God says I've got a plan for you and it's not to bring you Har- it's to bring you hope. Hope IS GREATER THAN FEAR. But it's a choice and no one can take your hope and no one can steal your hope. You have to surrender it. That's what has to happen. Otherwise you're not there and Rachel we were talking about this idea of just having a little bit of grace in our lives and we were talking about what we're going to say tonight. Yeah Maher theme through tonight really about controlling the controllables and how key that is In this process and that includes your emotions and your grace for people Kristie Right. Here's another one of our Ramsey personalities. Were friends we're talking on the phone just last week when all this stuff was happening and she made a great point and she just had we just extend massive amounts of grace to people. Because you never know what someone else is dealing with right. Because I'm like there's the two extremes of how people are dealing with it it's either like this is all crazy. I'm going to do whatever I want. Or it's the ones that are all you know. They're they're freaked out to do anything and each side looks at each other and they just they they they spew shame and Hay and everything. And I'm like man you know no matter what side you're on look at the other side because both both need grace and I think that's really important to remember that with your friends. Your family It is a time just to say you know what they're handling things differently than I would But I'm going to just take a deep breath myself and extend that when we're talking about United Teaching Leadership. Sometimes we're in these different settings you know when people are under pressure. Sometimes it's just financial pressure. We're talking about sometimes. It's other things but when they're under pressure it's the the bad parts of their character revealed sometimes and sometimes the best parts of their character reveal and and you need to be real careful to control that. That's something you can control. Yeah I think you're speaking to influence here not just for leaders but for all of us that I love the point Rachel that you made about grace you know this is a time where in isolation when you are around just your friends and family That they're looking to you to see what your cues are. How are you handling all this uncertainty? How are you handling the bad news? You know matthew five fourteen Dave Rachel says you're the light of the world. A city set on a hill cannot be hidden. Think that's a strong challenge to all of us to realize that in that verse. We realized that we have the opportunity in uncertainty. You could say dark times. We have the opportunity to be light as individuals as leaders. And we are all exposed in this. This is not a state crisis. This isn't a United States crisis. This is a global crisis and it is affecting everyone and each of us has a responsibility. David Rachel to realize that we are a city set on a hill in that we are doing life with some people closer than maybe we've been doing life with them in a long time due to this isolation and so it's really important as we get to this team tonight. What can you control? And we're GONNA talk through that tonight but really controlling Dave our response and there's going to be times where we all get squeezed and it reveals the ugly side of us and we all have the ugly side but we can choose this moment to say. Ooh I don't like that and I've got to change that because I am a light and I wanNA shine in uncertainty so I I think that's a wonderful challenge for all of us right
Will Infinite Money Save the Economy?
"We'll Infinite Money Save the economy governments and central banks around the world are working on measures to combat the economic recession the contraction really. This shutdown of the economy related to the pandemic social distancing is causing people rightfully so to stay home. Jobs will be lost. Businesses will be hurt and are being hurt and it is the responsibility of the Federal Reserve in US and other central banks around the world to be the lender of last resort and for federal governments to step up and provide stimulus and emergency relief to households and businesses. Now there's a great deal of discussion with regard to how that relief should be delivered in this episode. We're going to look at some of the things that the Federal Reserve has announced and it appears the US government will announce some recording this on Tuesday march twenty fourth if not passed final emergency relief bill yet but we have some indication of what it will contain and we WANNA look at perhaps some unintended consequences namely the potential for inflation given the level of stimulus. It is a challenging thing for politicians in central banks are now. I do not envy their situation. But we'll see and discuss it and is there anything we can do to protect ourselves in case things don't necessarily go as planned last Sunday on sixty minutes news program. Scott pelley interviewed. Neil cash. Cari he is the president of the Federal Reserve Bank of Minneapolis. He's the former assistant treasury secretary. He's a member of the Federal Reserve Open Market Committee so he is in the room when the Federal Reserve is discussing. What should be done in the interview? Cash Cari mentioned. There was a huge demand for cash dollar bills by businesses and he says the Federal Reserve and as a member of the FM OC. We will absolutely meet those demands for cash withdrawals pelley asked him will the reserve. Just print money Kashkari response. That is literally what Congress has told us to do. That is the authority they have given us to print money and provide liquidity into the financial system we create it electronically and we can also print it with the Treasury Department he mentioned. How are stresses in the Bond Market? Bet It is freezing. Up companies are having difficulty borrowing money to fund their operations and we've also seen a lack of liquidity in bonds. There are too many sellers and not enough willing buyers. Liquidity is the ability to buy or sell an asset without impacting. It's price if there's a huge demand to sell a security and there's not enough willing buyers and the price drops so when cash Cari says the Federal Reserve will provide liquidity to the financial system. Sometimes called injecting the quickey. That means they're buying. The Federal Reserve is buying assets in order to provide a bid so that they don't fall further EM- price.