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Advance Placement: America's Debt Addiction: Don't Go Broke Trying To Look Rich · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: Let's get into this. Consumer debt passes seventeen trillion for
• 1:07
  Speaker 3: the first time, So Americans have racked up over seventeen
• 1:12
  Speaker 3: trillion dollars in debt. That is up two point nine
• 1:16
  Speaker 3: trillion from twenty nineteen. And the main catalyst of this
• 1:22
  Speaker 3: is auto loans, credit card debts, student loans, and mortgages.
• 1:29
  Speaker 3: The average American has fifty nine thousand dollars in debt.
• 1:33
  Speaker 3: Forty one thousand of debt is in mortgage, fifty four
• 1:37
  Speaker 3: hundred is in auto loans, fifty six hundred is in
• 1:41
  Speaker 3: student loans, and thirty four one hundred is in credit
• 1:44
  Speaker 3: card debt. And forty six percent of credit card holders
• 1:50
  Speaker 3: maintain debt from month to month on their credit cards.
• 1:53
  Speaker 3: They're not paying off their balances and full every single month.
• 1:56
  Speaker 3: So all right, seventeen trillion dollars Jesus for Americans and debt.
• 2:06
  Speaker 4: Yes, they don't want to say, we're in a recession
• 2:10
  Speaker 4: and the VICS is still at let me go check
• 2:12
  Speaker 4: right now. I think the VIX is at seventeen. Volatility
• 2:16
  Speaker 4: index continues to get lower. This reminds me in the
• 2:20
  Speaker 4: scene in The Big Short when they're going to the
• 2:23
  Speaker 4: credit rating in the agencies and saying, hey, these loans
• 2:26
  Speaker 4: are defaulting. Why have you not changed the grade of
• 2:29
  Speaker 4: the loans in their life? Well, we get paid to
• 2:31
  Speaker 4: not change them. It's really interesting to see debt be
• 2:35
  Speaker 4: this high, and I know we give them flack when
• 2:38
  Speaker 4: it's due. But the axiom of the Dave Ramsey use,
• 2:41
  Speaker 4: if debt is dumb, it's true. I always said it,
• 2:44
  Speaker 4: if you have a ton of debt. I don't know
• 2:46
  Speaker 4: one person that has three hundred thousand in debt, and
• 2:48
  Speaker 4: if we were to give them three hundred thousand to
• 2:50
  Speaker 4: wipe it away, they wouldn't take it. Live below your means,
• 2:54
  Speaker 4: have to build a business, have to invest. I know
• 2:56
  Speaker 4: it is tough to stay disciplined, but as a I
• 3:00
  Speaker 4: think we've gotten and I'm going to be very clear,
• 3:03
  Speaker 4: it's the companies and marketing that pushes us to be
• 3:06
  Speaker 4: in debt to buy things that we don't need to
• 3:09
  Speaker 4: make companies stable that are actually unstable without us consistently
• 3:13
  Speaker 4: buying them. It is getting scary, though we'll talk about
• 3:17
  Speaker 4: it later, like our country's jet debt to GDP ratio
• 3:20
  Speaker 4: as well, but I feel like they are trying to
• 3:24
  Speaker 4: collapse the credit worthiness of the consumer and put us
• 3:28
  Speaker 4: in more debt so that the regulations later would be
• 3:31
  Speaker 4: easier to pass.
• 3:32
  Speaker 2: Even with the crypto market.
• 3:34
  Speaker 4: Like we'll talk about it later, but I feel like
• 3:35
  Speaker 4: they are not every avenue that people have to make
• 3:38
  Speaker 4: money last year or in twenty twenty, just slowly closing
• 3:41
  Speaker 4: those lanes off. But we have to get this under
• 3:42
  Speaker 4: control immediately.
• 3:45
  Speaker 2: Yeah.
• 3:46
  Speaker 5: I mean when I look at it, it's not surprised,
• 3:51
  Speaker 5: but I always think back to, like's let's go back
• 3:53
  Speaker 5: to two to three years, Like, these are the effects
• 3:56
  Speaker 5: of a pandemic. Right, if we look at unemployment, if
• 4:00
  Speaker 5: we look at wages. When people don't have money, they're
• 4:04
  Speaker 5: going to go to credit, right and again.
• 4:07
  Speaker 2: And you said this this weekend.
• 4:08
  Speaker 5: You had a great a monologue about America being built
• 4:12
  Speaker 5: on debt.
• 4:13
  Speaker 2: But that's what's happened. That's what's happened.
• 4:16
  Speaker 5: And even inside the pandemic, when we were looking at
• 4:19
  Speaker 5: interest rates and it was like, great, this is a
• 4:20
  Speaker 5: great time we can refinance your home. It's at a
• 4:22
  Speaker 5: low rate. People were taking out home equity lines of credit.
• 4:28
  Speaker 5: And when you take out home lines of credit at
• 4:30
  Speaker 5: low interest rate, that's great for you for the immediate,
• 4:32
  Speaker 5: But you're adding to the length of your loan, yes,
• 4:35
  Speaker 5: and you're adding to the debt that is going to
• 4:37
  Speaker 5: be accumulated. Because it doesn't matter if you bought a
• 4:40
  Speaker 5: home for four hundred thousand, right, by the time the
• 4:42
  Speaker 5: bank is the thirty year mortgage is paid, you've paid
• 4:45
  Speaker 5: well over a million dollars at home, right, And so
• 4:49
  Speaker 5: I looked at the number they said fourteen million homes
• 4:51
  Speaker 5: were more. Fourteen hundred fourteen million mortgages were refinanced during
• 4:55
  Speaker 5: the pandemic period starting in March twenty twenty, fourteen million homes.
• 5:00
  Speaker 5: You got to think about that, right. At one point,
• 5:02
  Speaker 5: banks stopped giving out he locks. I remember going to
• 5:05
  Speaker 5: a bank that I frequent and they were like, yeah,
• 5:07
  Speaker 5: we're not offering it anymore, just because of the amount
• 5:09
  Speaker 5: of debt that had been accumulating. But like you said,
• 5:12
  Speaker 5: student loan, right, that's been on pause. That's been on pause, right,
• 5:17
  Speaker 5: And that the debt is still increased because people are
• 5:19
  Speaker 5: still going to school and they are accumulating debt. Let
• 5:21
  Speaker 5: alone the people who are in repayment and haven't had
• 5:23
  Speaker 5: to pay for two and a half years. So this
• 5:25
  Speaker 5: number could actually be higher, right, if this wasn't a
• 5:28
  Speaker 5: freeze until I don't know who, I think next September
• 5:31
  Speaker 5: and then when we talk about interest rates again as
• 5:33
  Speaker 5: we're going through the pandemic, we talked about the semi
• 5:37
  Speaker 5: conductor problem that affected cars, and so now there's less
• 5:41
  Speaker 5: cars being made with the same products. So now when
• 5:43
  Speaker 5: there's less cars, there's going to be a premium on
• 5:45
  Speaker 5: the cars that they have in inventory. And so now
• 5:47
  Speaker 5: you're going to be paying oversticker. And if you're financing
• 5:50
  Speaker 5: and you don't have great credit, then you're going to
• 5:51
  Speaker 5: be paying a higher interest rate, and then that loan
• 5:53
  Speaker 5: gets increased. And so all these factors are happening at
• 5:58
  Speaker 5: the same exact time.
• 6:02
  Speaker 2: On purpose. Can we be very honest?
• 6:04
  Speaker 4: How did they get seventy two million chips all available
• 6:07
  Speaker 4: for Dodge chargers in one quarter?
• 6:10
  Speaker 2: I know these are numbers, is like.
• 6:11
  Speaker 4: A gross extrapulation, but they were driving up the value
• 6:15
  Speaker 4: of houses thirty thousand, forty thousand over asking Some people
• 6:19
  Speaker 4: were paying twenty thousand dollars above asking price for a car.
• 6:22
  Speaker 2: They crashed the market.
• 6:23
  Speaker 4: And all of a sudden, AMD in the video had
• 6:26
  Speaker 4: enough chips to power your Tesla. The number one way
• 6:29
  Speaker 4: to increase price is to limit the supply that is available.
• 6:34
  Speaker 4: I feel like that was done on demand. So for
• 6:36
  Speaker 4: those of you in the comments that may be watching
• 6:38
  Speaker 4: the club, hey, what's the play? The play which I
• 6:40
  Speaker 4: hate the term, but it's the investing companies that monetizes that.
• 6:44
  Speaker 4: Visa is one of them. Historically one of the best
• 6:47
  Speaker 4: companies in a credit card space. The return has been
• 6:50
  Speaker 4: absolutely amazing. If you can get it around maybe two
• 6:53
  Speaker 4: nine great. And if you think America is going to
• 6:56
  Speaker 4: have less that and consumers are going to have less that,
• 6:58
  Speaker 4: then you can shorten Visa. That would not be wise.
• 7:01
  Speaker 4: But if you want to go along Visa, you'll see
• 7:05
  Speaker 4: some considerable games there because I want to get some
• 7:07
  Speaker 4: actionable items for those who may be joining. If this
• 7:10
  Speaker 4: is your first time, they be watching the program, see
• 7:12
  Speaker 4: what shot of learning. Five year return on Visa seventy
• 7:14
  Speaker 4: six percent. Six month return is ten percent while we
• 7:18
  Speaker 4: are in a recession that they will not call.
• 7:21
  Speaker 2: How do you feel about AMEX? I like max two.
• 7:25
  Speaker 4: Visa is just a leader, But if I have to
• 7:26
  Speaker 4: pair them, it's like a twin Towers. That is a
• 7:29
  Speaker 4: great credit spread that you can play. As a result,
• 7:34
  Speaker 4: if I pull up the stats real quick all time
• 7:36
  Speaker 4: return for Visas six.
• 7:39
  Speaker 2: Percent, they have been down over the last year. Down erners,
• 7:43
  Speaker 2: what's up?
• 7:44
  Speaker 5: You ever walk into a small business and everything just
• 7:46
  Speaker 5: works like the checkout is fast, the receipts are digital,
• 7:50
  Speaker 5: tipping is a breeze and you're out the door before
• 7:53
  Speaker 5: the line even builds. Odds are they're using Square. We
• 7:57
  Speaker 5: love supporting businesses that run on Square because it just
• 8:00
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• 8:03
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• 8:05
  Speaker 5: merch partners, Square makes it easy for them to take payments,
• 8:09
  Speaker 5: manage inventory, and run their business with confidence, all from
• 8:13
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• 8:17
  Speaker 5: just thinking about launching something soon, Square is hands down
• 8:20
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• 8:24
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• 8:27
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• 8:30
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• 8:33
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• 8:38
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  Speaker 5: don't hesitate. Let's Square handle the back end so you
• 8:46
  Speaker 5: can keep pushing your vision forward. This episode is brought
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• 9:33
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 9:37
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 9:41
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 9:45
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 9:49
  Speaker 1: some of the heinous migrant criminals caught because of President
• 9:53
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 9:57
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 10:01
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 10:05
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 10:08
  Speaker 1: were here illegally, your next you will be fine nearly
• 10:12
  Speaker 1: one thousand dollars a day. Imprisoned and deported, you will
• 10:16
  Speaker 1: never return. But if you register using our CBP home
• 10:20
  Speaker 1: app and leave now, you could be allowed to return legally.
• 10:24
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 10:29
  Speaker 1: border and families will.
• 10:30
  Speaker 2: Be protected sponsored by the United States Department of Homeland
• 10:33
  Speaker 2: Security five percent. But I like MX if you hold for.
• 10:37
  Speaker 3: The long term, for sure, that's one way to benefit
• 10:39
  Speaker 3: from it. So kit, can we do.
• 10:41
  Speaker 2: The mallow do? Yeah? Oh yeah, get you're right, it's
• 10:46
  Speaker 2: been a while. Well let me I'm gone, I'm not
• 10:49
  Speaker 2: space you in. Get you ready? Yeah, you can't rangle right.
• 10:54
  Speaker 3: Very very important. Let's make sure there'll be good. Okay,
• 11:00
  Speaker 3: that's good.
• 11:03
  Speaker 2: All right.
• 11:05
  Speaker 3: So speaking about this, this debt situation, it brings up
• 11:10
  Speaker 3: a bigger issue that nobody really wants to talk about,
• 11:13
  Speaker 3: where Americans are addicted to debt. And so, yes, Americans
• 11:21
  Speaker 3: are addicted to debt. We live in a society that
• 11:26
  Speaker 3: has forced us to be lay away consumers. We're in
• 11:31
  Speaker 3: a layaway economy. Nobody even realizes. Remember back in the days,
• 11:34
  Speaker 3: used to go to like TJ Maxim the stores and
• 11:36
  Speaker 3: you put thirty dollars down on something that costs one
• 11:38
  Speaker 3: hundred dollars, you make a couple of payments, and then
• 11:39
  Speaker 3: three months you actually be able to get the sweater.
• 11:42
  Speaker 3: The only difference now is that you can actually get
• 11:44
  Speaker 3: the sweater without having to actually pay for it until
• 11:46
  Speaker 3: you actually are done. So when you think about things
• 11:51
  Speaker 3: like a car, a home, even college credit cards, the
• 11:57
  Speaker 3: common denominated is that we're spending on things that we
• 12:02
  Speaker 3: can't afford, and we've been trained to put as little
• 12:05
  Speaker 3: down as possible, like that's something to be celebrated. When
• 12:09
  Speaker 3: even in the homes right most a lot of places
• 12:12
  Speaker 3: in the world, the mortgage system is completely different. They
• 12:15
  Speaker 3: don't have the same Like you buy a home in cash,
• 12:18
  Speaker 3: or you put down fifty percent, We're like, okay, how
• 12:22
  Speaker 3: can we put down one percent three point five percent? Well,
• 12:25
  Speaker 3: what happens is that the only real people that benefit
• 12:29
  Speaker 3: from this system is the banks because you're we're trained
• 12:33
  Speaker 3: to put down as little as possible, right, But there's
• 12:37
  Speaker 3: nothing you don't get nothing for something for nothing in
• 12:40
  Speaker 3: this world. So by putting down as little as possible,
• 12:44
  Speaker 3: that means that you pay interest, and who collects the
• 12:48
  Speaker 3: interest the bank. So by the time you actually get
• 12:51
  Speaker 3: finished paying for your home, your paying you could have
• 12:53
  Speaker 3: brought three properties.
• 12:54
  Speaker 2: For that same amount.
• 12:55
  Speaker 3: So it's like, and this happens at every income level,
• 12:58
  Speaker 3: even people that are million. Somebody has a million dollars,
• 13:02
  Speaker 3: instead of buying a home for five hundred thousand dollars
• 13:04
  Speaker 3: in cash, they put ten percent down on a ten
• 13:06
  Speaker 3: million dollar home that they can't afford. And this happens
• 13:10
  Speaker 3: in college. Instead of going to a community college, which
• 13:13
  Speaker 3: is virtually free, you want to go to an out
• 13:15
  Speaker 3: of state school and major in something that you're not
• 13:19
  Speaker 3: going to make any money in and go into one
• 13:21
  Speaker 3: hundred and fifty thousand dollars a student loan debt, and
• 13:24
  Speaker 3: then when you come out of college then you can't
• 13:27
  Speaker 3: even work to pay your loan back. This is the
• 13:31
  Speaker 3: same for credit card debt, because you're spending your credit
• 13:34
  Speaker 3: cards on vacations to go to Miami and Balenciaga bags.
• 13:40
  Speaker 3: Because we are trained to not think about it now,
• 13:45
  Speaker 3: we'll think about it later, and when the hangover comes,
• 13:50
  Speaker 3: we just delayed it even more and just push the
• 13:53
  Speaker 3: can down the road even more so. Auto loan, same thing.
• 13:57
  Speaker 3: Instead of buying a car that you can actually afford, well,
• 14:01
  Speaker 3: how can I get the Mercedes? Can't afford it. But
• 14:06
  Speaker 3: five hundred dollars a month not that bad. Just go
• 14:09
  Speaker 3: for it, Just do it, yolo. So, yeah, we can
• 14:13
  Speaker 3: give you solutions on how to you know, cut debt
• 14:16
  Speaker 3: and how to invest in companies. That's important, But why
• 14:20
  Speaker 3: don't you try to buying things that you can actually
• 14:22
  Speaker 3: afford That would probably be even more beneficial. Right, So
• 14:26
  Speaker 3: this is something that I know a lot of people
• 14:28
  Speaker 3: don't really want to address this issue because this makes
• 14:31
  Speaker 3: us look in the mirror. But we're constantly putting ourselves
• 14:35
  Speaker 3: in debt for things that we can't afford to impress
• 14:38
  Speaker 3: people that we don't know, and eventually you're gonna have
• 14:42
  Speaker 3: to pay it back. Yeah, And it's a sobering it's
• 14:45
  Speaker 3: a sobering reality. But the party always ends at some point,
• 14:51
  Speaker 3: at some point in time. So I just think it's
• 14:53
  Speaker 3: important just to you know, put that in perspective. And
• 14:55
  Speaker 3: like I said, this is this is this is a
• 14:57
  Speaker 3: notion that Americans have come to know, but a lot
• 15:01
  Speaker 3: of places in the world they don't understand that. They're like,
• 15:03
  Speaker 3: you want to live somewhere, your home costs one hundred thousand,
• 15:06
  Speaker 3: You save money until you have one hundred thousand dollars,
• 15:08
  Speaker 3: big facts, and then.
• 15:09
  Speaker 2: You bought a home.
• 15:11
  Speaker 3: Or you move in with five relatives and each put
• 15:14
  Speaker 3: down twenty five jouts on yeah, and now you each
• 15:16
  Speaker 3: have a room.
• 15:17
  Speaker 2: That's an option you have.
• 15:19
  Speaker 3: I mean, so it's like we've just become so desensitized
• 15:23
  Speaker 3: to borrowing money and stretching things out as long as possible.
• 15:29
  Speaker 3: Twenty year mortgages, thirty year, they talking about fifty year mortgages,
• 15:33
  Speaker 3: Like just just be careful, be careful, be mindful.
• 15:38
  Speaker 4: And going to your point, if we look at countries,
• 15:41
  Speaker 4: so everyone listening, you don't have to follow anything that
• 15:43
  Speaker 4: we say. Right, look at the companies countries that have
• 15:46
  Speaker 4: a inverted yield curve, which prediction session. I want to
• 15:49
  Speaker 4: name some of them. Chile, Iceland, Czech Republic, Canada, Sweden,
• 15:54
  Speaker 4: United States, New Zealand, Qatar, Israel, Germany, Norway, Hong Kong,
• 16:00
  Speaker 4: so In, South Korea, and the United Kingdom. These are
• 16:04
  Speaker 4: the biggest nations and all signs are pointing to debt
• 16:09
  Speaker 4: accumulation leading to destruction of GDP. For those who don't
• 16:13
  Speaker 4: know what that means, all those countries are like underwater
• 16:16
  Speaker 4: and broke right now.
• 16:17
  Speaker 3: It's a threat to national security. Also absolutely, It's like
• 16:20
  Speaker 3: the weaker you are as a country, the more debt
• 16:23
  Speaker 3: you have as a country. Now, that is a ripple
• 16:27
  Speaker 3: effect across pretty much every area of the economy. So
• 16:31
  Speaker 3: individuals have too much debt, the government has too much debt.
• 16:35
  Speaker 3: We're borrowing money from companies. The companies are under the
• 16:40
  Speaker 3: pressure of foreign entities. The government's borrow money from China.
• 16:43
  Speaker 3: It's all coming back, you know, It's just the reality.
• 16:53
  Speaker 3: D Joey Krack my graduates from my school being full bag,
• 17:00
  Speaker 3: drop bag, drop.
• 17:04
  Speaker 2: Bag, drop draft.
• 17:15
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 17:19
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 17:23
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 17:27
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 17:31
  Speaker 1: some of the heinous migrant criminals caught because of President
• 17:35
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 17:39
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 17:43
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 17:47
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 17:50
  Speaker 1: are here illegally, your next you will be fine nearly
• 17:54
  Speaker 1: one thousand dollars a day. Imprisoned and deported, you will
• 17:58
  Speaker 1: never return. But if you register using our CBP home
• 18:02
  Speaker 1: app and leave now, you could be allowed to return legally.
• 18:06
  Speaker 1: Do what's right. Leave now. Under President Trump America's laws,
• 18:11
  Speaker 1: border and families will be protected.
• 18:13
  Speaker 2: Sponsored by the United States Department of Homeland Security,