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What powered Google's revenue jump? · The Financial Exchange Show

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Veterans Development Corporation faces the Financial Exchange with Chuck Zada
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and Mark Van Betty.
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Speaker 2: It's Chuck, Mark and Tucker with you here, And as
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we get into the second hour of our show, we've
1:22
got markets with a little bit of modest upward drift. Overall.
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The Dow is up one hundred and eleven points right now,
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the S and P's up seven, NASDAC up twenty three.
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All three indices were down by anywhere from a third
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to a half percent at one point in this morning's trading.
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So it is something where we're off the lows of
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this morning, but not really with any clear direction. And
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in particular, we're just seeing an awful lot of chop
1:48
in individual names as we go through this earning season.
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Here as an example, Eli Lilly at one point was
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down eleven percent, now down about six and change after
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missing on their earnings estimates and guiding lighter. Remember Eli
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Lilly has been one of the companies on the forefront
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of these GLP one drugs that are quite honestly some
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of the more miraculous drugs that I've ever seen, just
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in terms of the data as I can interpret it.
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Speaker 3: Do you know anyone who's had success with those.
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Speaker 2: I know in numbers of people that yes, they're swearing
2:23
by them. I mean, the weight loss thing is one aspect,
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but the other studies that are done in terms of hey,
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there's these weird say side effects where people who are
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on them are also reporting you know, lower levels of
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addiction than previously reported and things like that. So it's
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like helping on that side of things. It's I don't
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understand the mechanism for how it all works, but these
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drugs quite honestly, and yes, while there are side effects
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and things like that, they have the potential to be
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one of the most miraculous medical discoveries we've ever met made.
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If you look at the potential to shift all cause
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mortality over the next couple decades, I mean you're talking again.
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You look at the stuff that we both spend money
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on to treat and that kills people, like in large numbers.
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It's basically heart disease and cancer. That's where the bulk
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of our spending and bulk of our mortality comes from today,
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and these go right to treating that. I mean, especially
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like you will get so many cancers that are caused
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by obesity and overweight like it's a huge risk factor
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for a number of cancers and you'd get rid of that,
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not to mention all the cardiac benefits and stuff like that.
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It's potentially just massive the shift that this is, and
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I don't know if that's fully appreciated yet. I also
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caveat this with look, we might find something out five
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years from now. It's like, oh, yeah, it's good for
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these reasons, but here's the bad stuff. When you're actually
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on these for like five to ten years. I don't
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know where we go there. But honestly, to this point,
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the data that I'm seeing is nothing short of amazing.
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It's absolutely wild what we're seeing there. But in any case,
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Eli Lelly was not a great quarter, and so the
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company stocked down about six percent. Now, AMD reported earnings,
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they're down about nine percent. Google or Alphabet who we're
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going to talk about in a minute, they reported they're
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up five, Visa reported they're up three, Caterpillar reported there
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down two. So really wide dispersion. It's not something where you're,
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you know, consistently seeing hey we beat and everyone's up.
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It's just kind of, hey, you really got to look
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at the earnings right now and see what companies are
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actually doing, and so we're going to do that with
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the company formerly known as Google, now known as Alphabet
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and they reported revenue growth of fifteen percent year over year,
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faster revenue growth actually than the prior quarter. And in particular,
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they are seeing their cloud division, which is where their
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AI business is housed, that revenue up thirty five percent
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from the previous year, in acceleration from twenty eight percent
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revenue growth in the previous quarter. So Google at least saying, yeah,
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we're seeing, you know, good revenue growth in the places
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that you'd like to if you want to believe that
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AI is going to have a meaningful positive impact on
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our business.
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Speaker 3: So the shift to the cloud has happened, and it's
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now the incremental revenues coming from selling businesses that store
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their data anyway on AI. Just could you guys follow
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you and Mike Armstrong follow companies and no companies a
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lot better than I do. It's just so I understand
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this right now, they're selling these companies on AI tools
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that can allow them to do whatever they're doing that
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they need to store in the cloud more efficiently.
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Speaker 2: Yeah, and Microsoft's doing the same thing now. Just as
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an example, last week, maybe two weeks ago, I picked
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up a subscription for Microsoft Copilot. It's their office based
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tool that helps you use AI for you know, Word
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and PowerPoint and Excel. And I did it. It's a
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one year contract, it's four hundred bucks. And I did
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it just to be like, hey, is there anything here
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that is useful?
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Speaker 1: Like?
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Speaker 2: Can it help me to write stuff better? Can it
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help me to analyze data and Excel better than I do?
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I don't really know what I'm gonna do in PowerPoint
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because like what am I making like large you know,
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long PowerPoint presentations and this and that. But I was
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just curious, you know, what it's gonna do. And I
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don't know if I'm gonna find that there's anything there
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or not. But these companies Microsoft and Salesforce, they started
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rolling out what they're calling AI agents in the last
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week or two month or two and those the premise is, hey,
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you tell this agent a business function that you know
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that someone normally does, and it can do it for
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you instead of a person doing it for you. That's
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the premise behind it. Now can't do complex things like hey,
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walk to the water bubbler and talk about the web, No,
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like it's it's in your computer and in the software,
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So it has to be something that that software can
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actually touch and understand. So it might be I don't know, hey,
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like in our business, Hey, every week on Thursday, we
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get the report on initial jobbles claims in the I'm
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assuming that there's some way that you have, like an API,
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where you can pull the data from those jobless claims
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into you know, some other program that these agents can use. Okay,
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on Thursday at eight thirty one, pull in this data
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and write me a report about what you saw in
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the weekly jobles claims data. That could be something that
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an AI agent does. In theory, just like thinking about
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it for two minutes, it could be, Hey, every month,
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you know, analyze trends in you know, all this data
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and spit out you know what you think the economies do.
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I'm not thinking hard enough about it, but that's that's
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what these companies are trying to do, because the business
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spend is where they think they're going to make their
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money on AI. It's not from you and I like what, Hey,
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draw a picture of a cat. Well, I'm not gonna
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pay for you to make a picture of you know,
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a cat smoking a fish or something like that. Like
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that's just not who's who's gonna pay for that? No one.
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But if you're a company and like this this is
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the part that's transformational but also kind of scary. If
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you're a company and you're paying an entry level worker
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forty thousand dollars a year to do extra fifty thousand
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dollars a year to do why you know, in like
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a white collar setting, and Microsoft comes to you and says, hey,
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I can give you an AI agent that'll do all
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that for twenty thousand a year. It's a huge incremental
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revenue boost to Microsoft. It's a huge cost cut for
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your business. And that's like, that's the premise of it
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and also the thing that makes you know, people a
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little bit scared when they talk about how AI could
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displace workers at large scale. You see where it could
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go potentially, Yeah, does it actually work well enough to
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do that? No clue, But companies are going to try
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this stuff out just to see because hey, if it
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does work and you're on that cutting edge, man, think
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about the potential boost of profits and things like that,
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That is what companies are going to look for. It's
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that productivity edge. It's any automation exactly.
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Speaker 3: Still, you'll still need people to supervise the process.
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Speaker 2: Maybe there's actually something really interesting that's going on right
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now where you have insurance companies that are trying these
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things out as part of their claims process. Yeah, And
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where you're running into potential problems is that if you
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end up just with this cycle of AI agents talking
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to each other, how do you actually know that they're
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getting anywhere. So let's say that you have an auto accident,
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just as an example, and mark, you have Company X
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and I have Company Y that are our insurance companies. Normally,
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the way it works right now, in order to settle
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the claim is okay, Company X calls Company Y. Okay,
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here's you know, the report of the accident, here's blah
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blah blah. Insurance companies are looking at hey, can we
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just have an AI agent, you know, do that for
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so that we don't have to have people doing those conversations. Well,
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if you end up with just a bunch of ais
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talking to each other, you potentially end up with this
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feedback loop where they can't get anywhere.
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Speaker 3: It's not different for most of it. And then at
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people though.
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Speaker 2: But then you need a person to come in and
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be like, what's actually happening here, Like, hey, I'd like
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to speak to the manager. Yeah, and and so you
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might not get the efficiencies that you think theyre. So
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these are the things that we're going to have to
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sort out over the next five to seven years. And again,
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I know that a lot of us get scared by
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this stuff, and I understand it's scary because hey, the
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potential for disruption in jobs, it's significantly huck.
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Speaker 3: I can't wait that we do a lot of content
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and Armstrong Advisory Group you know this, and a lot
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of it goes into power Point and word and we
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spend you and I personally countless hours just formatting stuff.
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I can't wait for office to recognize that I'm trying
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to do the same thing to every I don't need
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AI to tell me what to chart, because often you
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don't know until sure hands on the data. But I
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do need it to help me make it look good.
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And to have to do the same thing over and
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over again to an object like a chart or a
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formula is infuriating. It's so monotonous. That would be wonderful.
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Speaker 2: Well, and the other thing is, look, with every technological innovation,
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someone is always displaced from their job. I say it jokingly,
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you know, but look when when Gutenberg came out with
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this printing press, you better believe the stone tablet makers
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their union. It was like, don't let those things into
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our city. Don't put one of those in our city,
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probably saying the same thing that port workers are saying
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right now about you know the other man.
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Speaker 3: The sheep were happy because it took like twenty thousand
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sheep to make a Bible or something. But they may
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not have vellum, right, was the is parchment?
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Speaker 2: Well, yeah, I guess I guess it wouldn't. Yeah, you
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were making a stone.
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Speaker 3: Tablet by the skin, and then describes the monks the
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only literate ones would.
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Speaker 2: Well, I was just talking about the tablet makers. I
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wasn't getting into it.
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Speaker 3: I think they were had the book phased out at that.
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Speaker 2: Point, not bookmakers. That's a different union.
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Speaker 3: Well yeah, coo, yeah, of course. Well this is Massachusetts.
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Speaker 2: Market's talk a little bit about a MD Advanced micro Devices.
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They are a semiconductor manufacturer, and they reported earnings last
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night that met on earnings per share, and we're a
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little bit better on revenue new but their overall revenue
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guidance didn't have any increase from you know, current expectations,
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and so shares are actually down about nine percent in
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trading today. A key example of hey, it's not just
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how good were your earnings, but how good are they
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relative to your expectations? As well as how good is
13:18
your guidance relative to expectations.
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Speaker 3: We use the expression priced in a lot. We don't
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often define it, but we simply mean the markets are
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already expecting something any ass This can apply to any
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security And to your point, the only explanation here is
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that this news or better news was priced in so paradoxically,
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though the quarter was strong, not as strong as people
13:39
wanted or they had already expected it, and there's just
13:42
a natural release that occurs. I don't really know exactly
13:45
how to explain it, but it's something along those lines.
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Speaker 2: So I don't know that you can necessarily tell a
13:50
ton about the semiconductor sector as a whole because of
13:53
what AMD is reporting, because they're not the largest chip
13:57
maker for any particular type of chip that's a key
14:00
focus right now. Like they're not the biggest PC chip maker,
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they're not the biggest AI chip maker. I don't know
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where their business is for like RAM and stuff like that,
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but maybe maybe that's where, like they, you know, have
14:11
some of their bread buttered at this point. But I
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don't know that you can tell a ton, as you know,
14:16
as to the sector as a whole. But what I
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can tell you is that the semiconductor sector as a
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whole is selling off today. In videos down one point
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three percent, broad calms down point six uh, Texas Instruments
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is down. Who else? Analog devices down, Micron is down,
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Intel like literally every semiconductor company in the S and
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P five hundred aside from O N Semiconductor. I guess
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maybe they're called on I don't know, SI it's capitalized.
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Speaker 3: It's talk about themselves.
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Speaker 2: They're the only one in the S and P five
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hundred semiconductor sector that is up today, and it it
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could be this. It also could be we covered last
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hour super Micro computer their auditor uh basically away saying hey,
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we can't make any sense out of these books and
15:04
we're out. And so super Micro who is they're involved in?
15:09
Basically like they're a contractor that does a lot of
15:11
work with AI projects in terms of buying semiconductors and
15:16
setting up servers and things like that. And so I
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guess a read could also be, Hey, if you can't
15:22
understand how their business works, maybe there isn't as much
15:26
demand for their services as people think in the semiconductor
15:29
sector is weaker than people think as a result. So
15:33
I don't know exactly how you read through all this,
15:35
but semis are getting hit today, and basically, aside from
15:38
Eli Lilly and Chipotle, semis are really the only place
15:42
that's getting hit hard today in the market. You look
15:45
at other sectors at the moment, and quite honestly, basically,
15:50
I'm going through and healthcare is down because of Eli Lilly,
15:53
Utilities are floating around, and consumer staples are pretty flat,
15:56
but everything else is up today in the S and
15:59
P five huh undred for your sectors. So I think
16:02
that there's a little bit of nerves creeping in around
16:05
what's going on with semiconductors, and hey, is the demand
16:08
still there for you know, these continued earnings beats and
16:12
increases in guidance. That's one read that I think you
16:15
can have on this.
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Speaker 3: Maybe another phrase we use a lot is priced for perfection,
16:19
and this is related to something, to the notion of
16:22
something being priced in, and companies like AMD have been
16:25
on a tremendous tear so arguably priced for best possible outcome,
16:29
priced for perfection, that makes them fragile.
16:31
Speaker 2: Taking a look at markets as we head towards the
16:34
bottom of the hour, we still have all three major
16:36
US industries in positive territory. That Dows up one thirty
16:39
five s and p up ten, Nasdaq up forty one tenure.
16:42
US Treasury is flat today at four point two seventy four.
16:46
It was down around four point two earlier today. But
16:49
with a stronger than expected eighty p report on job growth,
16:54
which most economists don't really look at it that strongly.
16:58
Is that a fair way to phrase it.
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Speaker 1: I think so.
17:02
Speaker 2: Most economists don't really put a ton of weight in
17:04
that report. But with a stronger than expected ADP report.
17:08
Maybe you get a stronger jobs report Friday. It could
17:11
be the thinking, and so you've got to again in
17:13
the ten year flat oil West Texas Intermediate up a
17:16
dollar fifty four barrel to sixty eight seventy five, so
17:20
a little bit of a rebound after selling off for
17:23
the last couple of days, after no further attacks between
17:28
Israel and Iran in direct confrontation at least the TRIPA
17:32
national average for gas price is up one tenth of
17:34
a cent to three thirteen and five tenths and gold
17:39
today is up seven dollars and ten cents. Now it's
17:42
making another new all time high, currently trading at twenty
17:45
seven eighty eight.
17:47
Speaker 4: On the Nose, bringing the latest financial news straight to
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the Financial Exchange Radio Network. Mark.
18:21
Speaker 2: We get a jobs report coming out this Friday, and
18:26
I've been saying for the last month we're not really
18:28
gonna know what to make of it because the data
18:31
collection point for this is going to include people that
18:34
were disrupted by both Hurricane Helene and Hurricane what was
18:41
the second one? Oh, Milton, Milton, Yeah, there you go.
18:46
And so it's going to be something where it's unclear
18:49
exactly what this is going to show because in prior
18:53
hurricanes that have been large enough to cause the level
18:57
of devastation that we've seen, you can have a range
19:01
of you know, negative impacts from twenty thousand fewer jobs
19:05
to one hundred and fifty thousand fewer jobs, and you
19:07
don't really know where the impact is going to end
19:10
up landing. So I think ultimately it's coming at a
19:15
time where we want more clarity from the labor market,
19:19
but we're not going to get it because of these
19:20
hurricanes impacting the data collection time.
19:22
Speaker 3: Yeah, it's a good reminder that we call these things statistics,
19:26
not because we look for a fancy way to refer
19:27
to them, but because that means estimate. It means we're
19:29
not really sure what the population value is. They always
19:33
come with big errors, so to speak. Every month we
19:37
say there were X number of jobs created, we said
19:38
there were two hundred and fifty four thousand. I think
19:40
it was I only know that at the top of
19:41
my head because I was writing something about it this morning,
19:44
But that that's a plus or minus one hundred thirty
19:47
thousand jobs with nine percent confidence. So a better example
19:51
might be if we if the number was one hundred
19:52
and thirty reported, the actual number could be zero or
19:55
it could be twice. That you really don't know, which
19:58
is why you and Mike Armstrong always say don't read
20:02
too much into a single data point. I call Mike
20:04
Armstrong moving average Mike because he loves to do the
20:07
three month and annual. It's not quite a moving but
20:09
it's the only alliteration I could come up with. He
20:12
likes to annualize. You probably do that too. I think
20:14
it's a good practice. So either way, you know, chill out.
20:17
It's what we talked about this Mike Armstrong and I
20:19
did yesterday morning with Jolts. One data point. We're not
20:21
even sure if it helps with forecasts. First of all,
20:24
it probably does, but not everybody agrees. And secondly, you
20:27
need several months, as you like to say, for a trend, So.
20:31
Speaker 2: Yes, you cannot have a trend of one does not exist.
20:36
That's a point, not a trend. So just like to
20:39
point that out. Speaking of the trend mortgage rates right now,
20:44
you know what we're seeing that their highest level since July.
20:46
According to Mortgage News Daily, we're now at seven point
20:49
three percent on the thirty year fixed rate mortgage nationally.
20:52
That's not really doing home buyers a lot of favors.
20:55
Speaker 1: At the moment.
20:55
Speaker 3: It's amazing how that can coexist with record upon record
21:00
in price appreciation month over month, and by some metrics,
21:04
a languishing a word I'm using a lot today for
21:07
some reason. Home market for home sound in terms of prices,
21:13
but in terms of activity, as evidenced by the detraction
21:17
that residential fixed investment part of GDP, which you reported
21:21
on earlier. The degree to that to which that detracted
21:25
from GDP not a lot like two tenths, but it
21:28
detracted nevertheless last quarter.
21:30
Speaker 2: And this also we have some I was just taking
21:32
a look at some of the data just that's out
21:34
there from an inventory perspective, because ultimately inventory leads sales.
21:39
It's just a question of how long it takes it
21:42
to end up leading sales. But this is data from
21:45
Mike Simonson, who we've had on the show quite a bit.
21:48
As far as you know, just looking at single family
21:51
housing data, and what we're seeing right now is unsold inventory.
21:57
And this is for single family You're currently it's seven
21:59
hundred thirty eight thousand units nationwide, and this compares normally,
22:05
like twenty seventeen through twenty nineteen, you were at about
22:08
nine hundred to nine hundred and fifty thousand units. So
22:10
you're only off about fifteen to twenty five percent now.
22:13
I say only because the last few years you've been
22:15
off forty five to fifty percent, so you're you're getting
22:19
closer to normal nationwide inventory levels. The problem is it's
22:24
all like disjointed in terms of where it is. Connecticut
22:27
is still like twenty two percent of pre pandemic inventory.
22:31
All the New England states are between thirty Aside from
22:34
Connecticut between like thirty and sixty five percent. Florida, Texas
22:38
are already way above pre pandemic levels, like you're seeing
22:42
prices rolling over in the Dallas area now and stuff
22:45
like that, and so ultimately it still is a very
22:49
local market, but it is something where hey, nationally, you've
22:53
got these inventory levels that are propping up. And if
22:56
that's the case, especially in those areas where you're now
22:59
you know again, Texas, Florida, Arizona, places like that. Prices
23:04
are already starting to come down now. If you take
23:06
a look at Dallas, just as an example. This is
23:09
more data from Mike Simonson, because I don't know kind
23:13
of ows his stuff. If you take a look at
23:16
where Dallas is in terms of price per square foot
23:19
for penning home sales two percent below last year now
23:24
and falling. So these are the things that we're seeing
23:27
at the moment.
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24:33
Speaker 2: Mark anything else to add on housing before we go
24:36
a little far.
24:36
Speaker 3: Oh, I just wonder if it's a harbinger of something
24:40
broader as it was in eight and I think the
24:42
answer is now versus a return to kind of normalcy
24:45
a fragmented There is no such thing, or at least
24:48
wasn't historically as a national housing market outside of events
24:53
like like nationwide depressions. Historically the market has been pretty
24:59
as you called it, disjointed, and I think that's a
25:01
good thing. It makes housing economists might tell me I'm
25:04
an idiot on this one, but I think that makes
25:06
it more robust.
25:08
Speaker 2: Peace in the New York Times day, it's type of
25:11
automatic refunds for significant flight disruptions. New airline rule goes
25:15
into effect. So the DOT has a new rule that
25:19
airlines are going to have to provide automatic refunds to
25:22
passengers who are going through significant flight disruptions. To clarify
25:27
what this means. Before this, airlines could set their own
25:32
concept of what a significant delay is. And now the
25:36
DOT is stepping in and saying, here's the threshold. It's
25:38
three hours for domestic flights and six hours for international.
25:41
So a qualifying flight is delayed by more than three
25:45
hours domestically and six hours internationally. And before, what you
25:50
had to do, like let's say that you wanted compensation
25:52
for this, you got to get on the phone, or
25:54
you're waiting in line at the gate, or you're emailing
25:57
someone back and forth. With these new rules from the
26:01
refunds are required to be automatic, so if your flight
26:05
is delayed by this amount, refund has to come back.
26:11
They are due within seven days for credit card purchases
26:14
and twenty days for other payments if you have other
26:19
itinerary changes. Let's say that you're downgraded to a lower
26:22
service class, so you had booked a first class ticket
26:24
and hey, you're getting thrown into economy that falls into
26:29
this category as well. And if you have significantly delayed bags,
26:34
so hey, we all know that when there are weather
26:37
delays or other things like sometimes you're flying to Florida
26:40
and your bags don't make it there. If your luggage
26:43
is missing for more than twelve hours on a domestic
26:45
flight or fifteen on international baggage, fees are required to
26:48
be refunded as well. So that is what we're seeing
26:52
here and overall, I think, look, my view is when
26:59
it comes hey, where should the government make rules and not? Hey,
27:02
the government needs to make rules for places where individuals
27:07
don't have the power or agency to the government acts
27:11
in place where individuals can't act adequately for themselves. Like
27:14
this is why the US has the army and the
27:17
air force is because you don't want you and I
27:18
being like, hey, let's buy a plane and defend you know,
27:21
our airspace like that? Would we would? We would? Would
27:25
you be? Do you see yourself as more of a
27:28
pilot or like a tail gunner?
27:31
Speaker 3: That's not something I've thought about. I'm sorry, Chuck, I
27:33
can't answer that on the spot.
27:34
Speaker 2: Okay, In any case, you don't want Mark and I patrol,
27:37
which one you're good at. If we're doing this, my
27:39
eyesight's not great, so you probably don't want me flying
27:42
or shooting. I could I could do the radar exactly.
27:46
I could do the radar.
27:47
Speaker 3: What use would you be on this mission? I could
27:49
be goose Oh glad that didn't end well.
27:51
Speaker 2: But no, but I could be goose dead. That's that's
27:57
where I would end up. So in this case, when
28:00
we talk about, you know, flight delays and things like that,
28:04
I think that ultimately the scale of the problem is
28:07
one where for a lot of families, Look, you've booked
28:11
a vacation, You've spent a fair chunk of your annual
28:14
take home pay, and your flight doesn't get somewhere, and
28:18
you're like, hey, what gives I spent all this money
28:20
to go somewhere and now I can't go or my
28:22
hotel is you know, this is a fairly substantial financial
28:27
problem for families that happens. Does it rise to the
28:31
level of, hey, do you need to automatically be refunded? Well,
28:37
in a world where there's more competition amongst airlines, the
28:41
ones with the best service and best customer experience, yeah,
28:48
would be the ones that survive. Think but in a
28:52
world where we're unwilling to have an appropriate level of
28:56
competition amongst airlines, where we say, hey, we won't allow
29:00
Jet Blue and Spirit to merge because they'll be too big,
29:03
but we already allowed all these other mergers that have
29:05
restricted competition, and so Jet Blue and Spirit are potentially
29:08
going out of business because they can't compete with the
29:10
big boys. Well, in a world where we won't properly
29:13
size our airlines to allow more competition, I do think
29:18
this is something where hey, if you're you know, delayed
29:22
by you know, two days for you know, what was
29:24
going to be a five day vacation. Yeah, I don't
29:28
really see you know, an issue on this, uh, in
29:32
terms of having a consistent standard and requiring a rebate
29:39
in these cases. Because in a perfect world, what I'd
29:42
love to do is, hey, let's have more competition in
29:43
the airline space. But otherwise, Yeah, this is kind of
29:47
a big deal for folks.
29:49
Speaker 3: Yeah, I think you just have to concede that at
29:50
this point the industry is so heavily regulated, in the precedent,
29:53
so well established that it's pointless to question does the
29:55
government have the authority to do it? We don't. Even
29:58
as Lutskin and I were talking about this earlier, nobody
30:01
even asks anymore, does the federal goverment have authority here
30:03
or should it be states or should it be neither?
30:06
Nobody even asks.
30:07
Speaker 2: So we're that the airlines we not.
30:10
Speaker 3: I guess it's interstate commerce, so it's probably clear, but
30:13
no one, no one even asks whether constitutionally where that
30:16
power should lie. But that horse left the barn like
30:19
during the new deal, so it's pointless. In three to
30:21
five years, we'll know if it raised or lowered fares,
30:24
and we'll know, based on data that will have rolled in,
30:27
whether or not people are better or worse off than
30:29
having to say, haggle on their own. I'm sure this
30:32
is something that economists who studied transportation will have a
30:34
field day with.
30:35
Speaker 2: Well, here's the place that we probably end up is
30:38
because there's only so there are only so many airlines
30:41
flying to and from, flying you know each route. Ultimately,
30:46
it's probably like banks, Okay, you get rid of overdraft fees. Fine,
30:49
we're giving you less interest. All right, you're gonna make
30:52
us refund people when we're late. Fine, Baggage fees are.
30:55
Speaker 3: Going on unintended consequences.
30:58
Speaker 2: It's gonna be stuff like that thing. Yeah yeah, but
31:00
well know, take a quick break here. When we come back,
31:05
we'll do a little bit of stack roulette.
31:08
Speaker 1: If you missed any of today's show, catch up whenever
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31:15
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31:30
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32:09
Speaker 2: You know, I generally try to be pretty understanding of
32:14
different people. We're all figuring out life as we go, Like, no,
32:17
none of us have any idea what the heck we're
32:19
doing here, if we're being honest, like, it's it's hard,
32:21
it's confusing, and we're all just trying to get through
32:24
the day. So again, we might have different views or
32:27
different ways of going about things, but hey, none of
32:30
us have the perfect way to do anything. So we
32:32
give people some slacker at least we should because hey,
32:36
like just how life is, yeah, Tucker. Occasionally we do
32:41
run into complete idiots, though, and this is one of
32:45
those cases. And we talked about this a few weeks
32:48
ago where there were these people that were going on
32:50
TikTok and they were bragging about this quote free money
32:54
glitch that they found at Chase Bank, where if you
32:57
deposit a really really big check, JP Morgan gives you
33:03
some of the money right away, even though the check
33:05
hasn't officially cleared, and then you can withdraw the proceeds
33:09
and go and spend it. And that was the glitch
33:11
for infinite money. Now in the real world, this is
33:15
called check kiting and fraud and it's illegal. And the
33:19
fact that these people he thought this was a way
33:22
that they could just get free money from the bank,
33:24
because Hey, the bank's just not going to notice I
33:26
don't know, like three hundred thousand dollars missing or something
33:29
like that. Really dumb and b what made it even
33:34
dumber was, hey, let's go brag about this on social media.
33:38
Now the bank already knew, like who was doing this,
33:40
because if you're withdrawing money from your account, it's you, Like,
33:46
they don't need your social media posts in order to
33:48
prove it, but when you do it, it makes it obvious.
33:51
So yesterday JP Morgan, Chase strikes back, and look, it's
33:55
rare for me to root for you know, giant banks,
33:58
you know, like I'm not really for them. But the
34:01
whole basis of the entire you know, economy, just a
34:05
little thing like that, is that we have to have
34:07
a baseline level of trust. And so when you deliberately
34:10
perpetrate fraud in the system, I don't really root for you.
34:14
So JP Morgan suing four different people in federal court.
34:17
One is a defendant in Texas who owns the bank
34:19
two hundred and ninety thousand dollars. One's in California owing
34:22
ninety thousand, and two in Florida owing one hundred and
34:25
forty one and one hundred and thirty eight thousand dollars.
34:27
So these people are not, you know, trying to make
34:29
off with like five hundred bucks. They were trying to
34:31
make off with hundreds of thousands of dollars and bragging
34:35
about it on TikTok. My guess is none of them
34:39
actually have the money to pay this back because they
34:41
probably spent a decent chunk of it already. And long
34:45
story short, these are just civil claims, but I don't
34:48
know how these people are ever going to be able
34:50
to open a bank account again. Two, there are probably
34:53
going to be criminal court cases that follow, and these
34:56
people are probably going to jail for an extended period
34:59
of time. And three, don't fraud.
35:06
Speaker 1: No.
35:08
Speaker 2: Chuck.
35:08
Speaker 3: If you want to racket, run for office and grift.
35:12
Speaker 2: That's edgie, Mark, that's very edgy. You should go. That's
35:17
so lame, or have like here's my political newsletter, you
35:22
know something. Yeah, just something that's like adjacent so you
35:25
don't even have any responsibility, you know, something like that,
35:29
because here's here's the problem is if you run for
35:31
office like that and then you win, you do have
35:34
to govern. If all you do is like you you
35:38
have to again, you have to pretend to govern. If
35:42
all you're doing is like, hey, I'm running a political podcast,
35:45
you don't have to do anything. That's it. That's the
35:49
whole game. But yeah, so JP Morgan going after the fraudsters,
35:53
and uh, good for them, because yet don't commit fraud.
35:57
We're done for the day. Back at it tomorrow with
35:59
more financial exchange