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TSA predicts this Thanksgiving to be the busiest ever · The Financial Exchange Show

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  Speaker 2: Kick it off hour two. Here it's Chuck, Mike and
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  Speaker 2: Tucker with you.
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  Speaker 3: The Dow Jones up three hundred and eighty five point
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  Speaker 3: of rooneyes, the S and P is up twenty four,
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  Speaker 3: the Nasdaq is up ninety eight, So all three major
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  Speaker 3: US indices are in positive territory, even the Rust of
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  Speaker 3: two thousand continuing to get in on the action up
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  Speaker 3: two and a half percent today. As we continue to
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  Speaker 3: see investors rotating away from, at least in a relative basis,
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  Speaker 3: tech companies and more towards other parts of the market.
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  Speaker 2: None nowhere is this more.
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  Speaker 3: Apparent than with what we are seeing with in Nvidia
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  Speaker 3: now down about three percent on the day, this after
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  Speaker 3: being down a few percentage points on Friday, and Microsoft
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  Speaker 3: and negative territory as well, so again he got a
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  Speaker 3: little bit of a move happening on that side of things.
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  Speaker 3: Tenure US Treasury saying hey, I am a big fan
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  Speaker 3: of Scott Besson. Tenure Treasury is down eleven basis points
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  Speaker 3: to four point three percent, So bond markets saying, yeah,
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  Speaker 3: we approve of the incoming Treasury Secretary. We've got oil
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  Speaker 3: prices today sliding as well. West Texas Intermedia down two
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  Speaker 3: dollars and five cents a barrel to sixty nine nineteen,
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  Speaker 3: almost three percent down there TRIPA national average for gas
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  Speaker 3: prices is flat at three oh five and six tenths
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  Speaker 3: of a cent.
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  Speaker 2: Still can't quite get that puppy below three dollars a
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  Speaker 2: gallon for the national average.
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  Speaker 4: I will just say that, having just gotten back from
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  Speaker 4: California for a week for work, it feels pretty good
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  Speaker 4: seeing gas prices back in Massachusetts where they are pretty
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  Speaker 4: much a full dollar cheaper.
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  Speaker 2: Than where they are in California at the moment. That
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  Speaker 2: does feel good, it does.
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  Speaker 3: And we've got gold today down eighty three dollars and
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  Speaker 3: eighty cents. Announced three percent downward move for the Yellow
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  Speaker 3: Metal here at twenty six, twenty eight and forty cents.
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  Speaker 3: Talk a little bit about Thanksgiving travel. It is going
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  Speaker 3: to be freaking jammed. I'm gonna be part of the airports, yeah,
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  Speaker 3: and airports on the roads. So worst time to drive
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  Speaker 3: is looking like one to five pm on Wednesday. Best
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  Speaker 3: day will be Thankgiving Day itself, if you can.
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  Speaker 2: Thanksgiving Day travel is the best I know.
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  Speaker 3: Everyone loves to be like, well I want to, you know,
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  Speaker 3: just wake up and be like, you know, close to
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  Speaker 3: where I'm going for Thanksgiving if you have to travel.
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  Speaker 3: And again, when my parents used to live in North Carolina,
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  Speaker 3: like I would fly down to see them on Thanksgiving
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  Speaker 3: Day because there's no one at the airport, there's no
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  Speaker 3: one on the roads.
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  Speaker 2: The key is, though, you have to have.
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  Speaker 3: An early morning either flight or you gotta get on
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  Speaker 3: the road early, because if you do leave after nine
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  Speaker 3: or ten am, then you do get all of the
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  Speaker 3: masses that are still trying to get somewhere on that day.
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  Speaker 3: Get yourself an eight am flight, hop on the road
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  Speaker 3: at seven am. That's how you make it work for
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  Speaker 3: Thanksgiving Day travel and you will have all kinds of
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  Speaker 3: room wherever you're going. But this year, Triple A predicts
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  Speaker 3: that nearly eighty million Americans will venture at least fifty
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  Speaker 3: miles from home for Thanksgiving, the vast majority of them
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  Speaker 3: traveling by car, and the TSA is expecting to screen
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  Speaker 3: eighteen point three million people at US airports during that
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  Speaker 3: same stretch, six percent more than what we saw last year,
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  Speaker 3: and continuing the bump that we've seen in travel this.
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  Speaker 4: Year, TSA saying that they are ready, FAA unsure, so
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  Speaker 4: you're TSA screeners. They are apparently feeling pretty staffed, but
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  Speaker 4: the FAA saying that their air traffic controllers a bit
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  Speaker 4: more of a staffing issue on that end as it
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  Speaker 4: has been for a few years now. So six percent
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  Speaker 4: uptick in number of passengers screened. The only other airport
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  Speaker 4: that I saw that that might actually be a real
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  Speaker 4: problem is Charlotte.
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  Speaker 2: I don't know if you saw that.
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  Speaker 4: They are dealing with some I believe tsa worker strikes
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  Speaker 4: right now. So if you are applying to or from Charlotte,
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  Speaker 4: good luck.
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  Speaker 3: Do you know anyone who is an air traffic controller?
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  Speaker 4: Yes, I'm not close personal friends with them, but I
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  Speaker 4: lived them for a period of time after college, and
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  Speaker 4: that's his I.
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  Speaker 3: Really feel like if if I were someone in my
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  Speaker 3: twenties who wanted great job security and pretty darn good pay.
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  Speaker 4: Yep, that's where I would go. I tend to agree
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  Speaker 4: with you that haven't been said. Report after report and
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  Speaker 4: study after study describes as one of the most stressful
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  Speaker 4: jobs in the country.
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  Speaker 2: Yes, you got heart disease, Well hereful.
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  Speaker 3: Here's the thing is the stress is immense because ultimately,
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  Speaker 3: like you are guiding airplanes around, which is a big deal,
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  Speaker 3: but there are not anywhere near enough air traffic controllers today.
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  Speaker 3: The vast majority of them that are currently employed are
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  Speaker 3: going to be retiring in the next ten years because
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  Speaker 3: it's all the ones that had to be brought on
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  Speaker 3: when Reagan got rid of the air traffic controllers back
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  Speaker 3: in the eighties.
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  Speaker 4: And there's probably a sixty five max age. What's the
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  Speaker 4: max age for an air.
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  Speaker 3: Traffic I believe it's somewhere in the sixties. The other
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  Speaker 3: thing that makes it difficult too high. Do you know
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  Speaker 3: there's a maximum age to start as an air traffic
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  Speaker 3: control not thirty one?
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  Speaker 4: Ooh, you have maximum age to be an active air
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  Speaker 4: traffic controllers fifty six years old, and you have to
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  Speaker 4: I think they've done some waivers on that to extend it.
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  Speaker 4: But you have to start before your thirties because they
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  Speaker 4: don't want to train you and then just have you leave.
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  Speaker 2: Yep.
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  Speaker 3: So it's it's kind of wild actually that we have
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  Speaker 3: this huge gap there. And the obvious answer is in
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  Speaker 3: terms of where this is going, the pay is going
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  Speaker 3: to have to skyrocket there in order to incentivize people
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  Speaker 3: into that business.
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  Speaker 2: Chat GPT can't just handle it.
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  Speaker 3: I wouldn't trust chat GPT to drive a scooter, let
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  Speaker 3: alone handle you know, airplane coming into an airport.
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  Speaker 4: Yeah, no, I think that will likely be one of
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  Speaker 4: the last things that we trust. Speaking of automation, that's
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  Speaker 4: completely unrelated to this, but it is related to travel. No, no, no,
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  Speaker 4: got my first WEAIMO over the last week.
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  Speaker 2: I've heard it's fantastic.
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  Speaker 4: So yeah, a coworker and I were traveling around. Actually,
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  Speaker 4: we took a nice tour of Alcatraz and then needed
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  Speaker 4: a way to get back to the hotel you out.
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  Speaker 4: They did let us out finally, and we hopped in.
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  Speaker 4: If you're unfamiliar with WEIMO, that is Google's right, Google
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  Speaker 4: self driving far unit. They are all Jaguar electric vehicles
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  Speaker 4: that are outfitted with massive cameras. And granted it's downtown
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  Speaker 4: San Francisco, so you're not doing fifty miles an hour
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  Speaker 4: anywhere that they can drive, but phenomenal drivers, phenomenal self
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  Speaker 4: driving vehicles, zero errors, not a bunch of situations where
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  Speaker 4: it couldn't figure it, Like you know, it's also the
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  Speaker 4: downtown streets to San Francisco's.
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  Speaker 2: They were double parked cars all over the place.
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  Speaker 4: Never once did I feel unsafe or in a position
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  Speaker 4: where it couldn't navigate the situation.
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  Speaker 2: Can we continue on segue from your segue? Uh?
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  Speaker 3: You mentioned Jaguar. Did either of you happen to see
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  Speaker 3: the rebrand from Jaguar last week?
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  Speaker 2: Didn't see it?
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  Speaker 5: Hurt about it?
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  Speaker 2: Okay? I did not?
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  Speaker 3: So they did a full rebrand I think it was.
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  Speaker 3: It might have been a week ago Monday. A couple things.
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  Speaker 3: What is a Jaguar mic luxury vehicle?
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  Speaker 2: But what else?
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  Speaker 1: Is it? Animal?
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  Speaker 2: Animal? Yeah? What's the logo for Jaguar?
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  Speaker 1: Animal?
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  Speaker 2: Not anymore? Gone? What gone? No more? Cat? Was dated?
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  Speaker 2: I don't know what do you mean? That's like saying
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  Speaker 2: that the Bruins logos dated at all. It's just a
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  Speaker 2: be with some lines sticking out of it.
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  Speaker 5: Why don't they have It's too big of an ornerman
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  Speaker 5: in the hood.
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  Speaker 2: The American eagle, bald eagle.
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  Speaker 4: Like, let's move on here, folks, Come on, as thing's
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  Speaker 4: been around for a couple hundred years.
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  Speaker 2: Let's replace stark stripes.
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  Speaker 3: Let's get rid of those and put hearts and squiggles
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  Speaker 3: on the flag.
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  Speaker 2: I'm just out dated Jaguar. Okay, so what are they
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  Speaker 2: replace it with? Just the lettering Jaguar.
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  Speaker 3: The word Jaguar, but there are three letters capitalized, the J,
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  Speaker 3: the G, and the U, so it's jag.
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  Speaker 2: U war.
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  Speaker 1: Hm.
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  Speaker 2: Okay.
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  Speaker 1: No.
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  Speaker 2: They also in this for me.
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  Speaker 3: In this rebrand, they did a video online no cars.
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  Speaker 3: It's people dancing around and no cars. You are a
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  Speaker 3: car company. You're not a people company. You are a
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  Speaker 3: car company, and you don't have any of your cars
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  Speaker 3: in your rebrand. That means one of two things. Your
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  Speaker 3: cars suck or you're not making cars anymore.
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  Speaker 2: What are we doing here, ah, Jaguar. That seems like
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  Speaker 2: a huge miss.
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  Speaker 4: I was on board with when they had the Remember
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  Speaker 4: when everyone was breaking off the Jaguar no things, no no,
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  Speaker 4: people were just tearing them off the hoods of the
• 9:59
  Speaker 4: cars and so the you see that the new models
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  Speaker 4: they had one where if you touched it, it just
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  Speaker 4: got sucked under the hood.
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  Speaker 2: I was really hoping it would like electric cute you
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  Speaker 2: or something.
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  Speaker 4: It was a really you know, smart, adaptive way thing
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  Speaker 4: to do that you can only do with the luxury vehicle.
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  Speaker 2: This is this is rather stupid.
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  Speaker 3: Other things just in terms of like the Jaguar brand.
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  Speaker 3: In two thousand and five, twenty years ago, they were
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  Speaker 3: selling about thirty thousand vehicles a year in the US.
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  Speaker 3: This year they're on track to sell fewer than twelve thousand,
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  Speaker 3: So like they have a problem to begin with in
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  Speaker 3: terms of their you know, overall sales. But who are
• 10:35
  Speaker 3: you trying to sell to? Like the Jaguar brand historically
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  Speaker 3: has been you know, a little bit more like kind
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  Speaker 3: of you know, cars with a little bit of athleticism,
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  Speaker 3: admittedly horrible electrical systems that you know, are you know,
• 10:47
  Speaker 3: good on you know, don't drive it in the rain,
• 10:50
  Speaker 3: like you know, it might not go well even before
• 10:52
  Speaker 3: an EV. But you look at it and you kind
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  Speaker 3: of say, who are they trying to sell to with this?
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  Speaker 3: And I don't think they have a constituency that they
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  Speaker 3: can you know, actually.
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  Speaker 4: Hit I would agree, I don't think. I don't think
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  Speaker 4: for someone forty and under that Jaguar even would take
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  Speaker 4: the top five vehicles that you would look at, you know,
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  Speaker 4: for a vehicle over sixty thousand dollars.
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  Speaker 2: No, I mean for better or for worse.
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  Speaker 3: When I when I think of like who drives a Jaguar,
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  Speaker 3: I think like my grandfather's eighty year old stockbrokers.
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  Speaker 5: Yes, which is why they kind of did this whole campaign.
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  Speaker 3: It's not going to work because it's going to alienate
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  Speaker 3: the exact people who are buying them right now, and
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  Speaker 3: those new people aren't gonna buy them.
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  Speaker 5: Yeah, but I got people talking about the brands one
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  Speaker 5: and a half million.
• 11:41
  Speaker 3: Visits, Like, do you guys remember the brand si on Sure,
• 11:44
  Speaker 3: Toyota came out with them, it was their cars for
• 11:46
  Speaker 3: young people. Yeah, they killed the brand because young people
• 11:49
  Speaker 3: didn't want to buy a car that was marketed to them.
• 11:52
  Speaker 2: It's like if you.
• 11:53
  Speaker 3: Try to, you know, people will be like, hey, how
• 11:56
  Speaker 3: can we market football to women? And some idiot out
• 11:59
  Speaker 3: there's like, hey we could sell pink footballs. Like no, Like,
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  Speaker 3: don't do it like that. Don't demean the very people
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  Speaker 3: that you're trying to sell to.
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  Speaker 4: So just to be clear, we started this segment with
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  Speaker 4: a conversation about Thanksgiving travel and.
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  Speaker 3: Now we're talking about not selling pink footballs to women, yep,
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  Speaker 3: which is accurate. Like Jaguar is trying to sell cars
• 12:22
  Speaker 3: to young people being like, oh we're hip, that's not
• 12:24
  Speaker 3: what young people want. Young people don't want something that
• 12:27
  Speaker 3: makes them look younger. Old people want something that makes
• 12:31
  Speaker 3: them look younger. Young people want something that makes them
• 12:33
  Speaker 3: look older. If you understood this, you would understand all marketing.
• 12:39
  Speaker 3: Take a quick break and we off trivia right after.
• 12:41
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  Speaker 5: All right, let's do a little bit of trivia here
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  Speaker 5: on the Financial Exchange and if you miss the first
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  Speaker 5: hour today's show major talking point was Trump's selection of
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  Speaker 5: Treasury Secretary being Scott Bessant, so we'll do a little
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  Speaker 5: trivia on that topic. Question today, who is the first
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  Speaker 5: Secretary of the Treasury for the United States?
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  Speaker 2: Once again?
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  Speaker 5: Who's the first secret Secretary of the Treasury for the
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• 14:03
  Speaker 3: I want to get back to talking about the airline
• 14:05
  Speaker 3: industry just because we got a little.
• 14:07
  Speaker 2: Bit sidetracked there. That was my fault. I'll take credit
• 14:09
  Speaker 2: out there.
• 14:09
  Speaker 3: That was fine, Like, I think that was one of
• 14:11
  Speaker 3: the best segments we've done all year, quite honestly. But
• 14:15
  Speaker 3: the airline industry is spending a ton of money to
• 14:18
  Speaker 3: make sure that you spend a ton of money flying
• 14:21
  Speaker 3: with them, and specifically more premium cabins, lounges, things along
• 14:25
  Speaker 3: those lines. And the thing that's kind of fascinating on
• 14:28
  Speaker 3: this that I was thinking about. This is not a
• 14:30
  Speaker 3: groundbreaking thought, but.
• 14:32
  Speaker 2: Everyone always talks about, gee, you know, why.
• 14:34
  Speaker 3: Can't we go back to what air travel was like
• 14:36
  Speaker 3: back in you know, the nineteen fifties.
• 14:37
  Speaker 4: Because inflation adjusted dollars, it was thousands upon thousands of
• 14:40
  Speaker 4: dollars more.
• 14:41
  Speaker 3: But that's kind of what we're seeing from airlines is saying, yeah,
• 14:44
  Speaker 3: there are enough people that want to spend two thousand
• 14:48
  Speaker 3: dollars flying from New York to California instead of three
• 14:51
  Speaker 3: hundred dollars.
• 14:51
  Speaker 2: Flying from New York to California.
• 14:53
  Speaker 3: And so we're beefing up our first class cabins and
• 14:57
  Speaker 3: not just even you know, conventional first class seating, but
• 14:59
  Speaker 3: you know, lay flat cabins on domestic flights and stuff
• 15:02
  Speaker 3: like that. This is stuff that they're bringing to airplanes
• 15:06
  Speaker 3: now and.
• 15:07
  Speaker 4: And in places that they didn't exist before. Right, Like
• 15:09
  Speaker 4: I flew back home last night on Jet Blue Jet
• 15:12
  Speaker 4: who Jet Blue Jet Who. Yeah, Yes, traditionally did not
• 15:16
  Speaker 4: have business or first class cabins, right. That was the
• 15:18
  Speaker 4: kind of modeled themselves a little bit in that front.
• 15:21
  Speaker 4: After a Southwest but with TV screens, that was like
• 15:24
  Speaker 4: the big move TV screen, never seat and we're blue
• 15:27
  Speaker 4: and we're blue instead of yellow.
• 15:30
  Speaker 2: So yeah, McDonald's in this cabin, you know. But again,
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  Speaker 2: longer flight.
• 15:36
  Speaker 4: It was a San Francisco to Boston flight, but I
• 15:39
  Speaker 4: think there were ten business class seats and not something
• 15:43
  Speaker 4: that you traditionally see, and they were all as you
• 15:46
  Speaker 4: would imagine booked. Likewise, the line to get in the
• 15:49
  Speaker 4: I think it was Delta. What are these places that
• 15:54
  Speaker 4: you can pay extra to go into a lounge the airport,
• 15:57
  Speaker 4: They had the lounges. It was like out the door
• 16:00
  Speaker 4: to get into one of these lounges at the airport.
• 16:02
  Speaker 4: And again Thanksgiving, we travel Sunday before Thanksgiving. You expect
• 16:06
  Speaker 4: that stuff to be busy. But yeah, there is a
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  Speaker 4: strong push to appeal to that higher income flyer right now.
• 16:15
  Speaker 2: Yeah.
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  Speaker 3: And and the thing that I think, the thing that
• 16:19
  Speaker 3: you have to stick with on this is that it's
• 16:24
  Speaker 3: continued evidence of you remember a few years ago after COVID,
• 16:29
  Speaker 3: there's the idea of hey, like what shape is the
• 16:30
  Speaker 3: recovery going to take? Is it going to be a
• 16:32
  Speaker 3: V shape and L shape? Well, you know, and someone
• 16:35
  Speaker 3: coined the term like K shaped recovery, and I think
• 16:38
  Speaker 3: that's kind of accurate where the high the data that
• 16:41
  Speaker 3: we're seeing is that the high income, high end household
• 16:45
  Speaker 3: is still spending money like crazy right right now.
• 16:49
  Speaker 2: So Delta is doing great and as is Walmart.
• 16:52
  Speaker 3: The low end, lower income households are really struggling, yeah
• 16:56
  Speaker 3: at the moment. And that's look Southwest and Jet Blue
• 17:00
  Speaker 3: and Spirit are getting beat up as a result. And
• 17:04
  Speaker 3: I think that the airline industry is kind of evidence
• 17:06
  Speaker 3: of that because look, Southwest can't figure out how to
• 17:10
  Speaker 3: make money selling you know, seventy nine dollars tickets each
• 17:12
  Speaker 3: way anymore. But Delta is figuring out, Yeah, we can
• 17:16
  Speaker 3: charge someone three thousand dollars to fly from LA to
• 17:20
  Speaker 3: Boston as long as we give them a seat that
• 17:22
  Speaker 3: lays down. Okay, we can make more money doing that
• 17:25
  Speaker 3: than doing other stuff.
• 17:26
  Speaker 4: I always hesitate with a company that wants to be
• 17:30
  Speaker 4: everything to everyone, and to some degree, that's what some
• 17:32
  Speaker 4: of these bigger airlines are attempting to be. Right they
• 17:34
  Speaker 4: fly everywhere. They will offer you a seat that you
• 17:38
  Speaker 4: don't get to choose ahead of time, you don't get
• 17:40
  Speaker 4: to check a bag, you don't get to carry on
• 17:42
  Speaker 4: a bag at a really low price that's competitive with
• 17:45
  Speaker 4: Spirit in Southwest, And at the same time they will
• 17:48
  Speaker 4: sell somebody else a three thousand dollars cabin seat. I
• 17:52
  Speaker 4: don't know, are we are? They are airlines like that
• 17:54
  Speaker 4: in danger of trying to appeal to everyone everywhere, all
• 17:57
  Speaker 4: at once and missing their message.
• 18:00
  Speaker 2: Yeah another thought that I just had.
• 18:02
  Speaker 3: And I'm sure that someone in the airline industry who's
• 18:04
  Speaker 3: you know, listening hopefully not flying the plane, can tell us,
• 18:07
  Speaker 3: you know, text in it six one seven, three, six
• 18:09
  Speaker 3: two thirteen eighty five.
• 18:10
  Speaker 2: We're on the business side. Listen. I don't know how
• 18:14
  Speaker 2: it works. I'm just I'm just spitballing here. Huh. You
• 18:16
  Speaker 2: know how Toyota has a luxury companion. Let's yea.
• 18:22
  Speaker 3: I wonder why you don't see that with airlines where hey,
• 18:24
  Speaker 3: instead of having a first class section, it's just an
• 18:27
  Speaker 3: entire Why don't you have a first class plane?
• 18:29
  Speaker 5: Maybe that's what Jaguar was teasing.
• 18:31
  Speaker 2: I don't know they're gonna make planes. Didn't see your car,
• 18:34
  Speaker 2: did you? True? I didn't. Maybe they're going to Mars,
• 18:37
  Speaker 2: maybe they rockets.
• 18:39
  Speaker 4: But like, and I get it practically speaking, why doesn't
• 18:42
  Speaker 4: that Well, here's why it doesn't work if everyone because
• 18:46
  Speaker 4: if everyone is.
• 18:46
  Speaker 2: Special, then no one special. No, but you can charge
• 18:49
  Speaker 2: it doesn't matter at bet.
• 18:51
  Speaker 4: But part of the appeal of being in that first
• 18:54
  Speaker 4: class cabin is watching all the riff raft walk by
• 18:58
  Speaker 4: you and stare longing.
• 18:59
  Speaker 3: Still do that you could be, Mike. It's even better
• 19:01
  Speaker 3: than that. You could be sitting at the gate for
• 19:04
  Speaker 3: the first class plane, watching everyone in the airport walking by.
• 19:07
  Speaker 2: Yeah. Yeah, but they might not know that you're the
• 19:10
  Speaker 2: special person. I don't know the person driving a BMW
• 19:12
  Speaker 2: still feels pretty special when they cut me off.
• 19:15
  Speaker 5: Yeah, yeah, you know, can't believe MICUs up up by Yeah.
• 19:19
  Speaker 4: I think I think there's something too the act of
• 19:22
  Speaker 4: having to walk by all the first class passengers and
• 19:24
  Speaker 4: know that you're gonna go sit in the crappy seats
• 19:26
  Speaker 4: like I did last night, And I think that's part
• 19:29
  Speaker 4: of the appeal of that ticket.
• 19:31
  Speaker 3: How about being able to skip security by being in
• 19:33
  Speaker 3: the first class plane.
• 19:35
  Speaker 2: Quick break here. When we come back, we get the
• 19:37
  Speaker 2: trivia answer.
• 19:41
  Speaker 6: Bringing the latest financial news straight to your radio every day.
• 19:46
  Speaker 6: It's the Financial Exchange on the Financial Exchange Radio Network.
• 19:52
  Speaker 6: Text us at six one seven three, six two one
• 19:54
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• 19:59
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• 20:11
  Speaker 5: Trivia question today was who's the first Secretary of the
• 20:14
  Speaker 5: Treasury for the United States. That'll be Alexander Hamilton. Winner
• 20:19
  Speaker 5: today of the Financial Exchange showed c show was Ja
• 20:22
  Speaker 5: from Brookline, New Hampshire. Congrats to Jay and we played
• 20:25
  Speaker 5: trivia every day here on the Financial Exchange. See complete
• 20:29
  Speaker 5: contest rules at Financial Exchange Show dot com.
• 20:32
  Speaker 3: Mich Let's talk a little bit about what's going on
• 20:35
  Speaker 3: at the box office. It was the weekend of Clicked,
• 20:39
  Speaker 3: also known as Wicked and Gladiator two.
• 20:43
  Speaker 2: They're really trying to push this Barbenheimer competition.
• 20:46
  Speaker 3: Kind of a seaside Barbenheimer type thing, which again, both
• 20:49
  Speaker 3: of those forman fantastic and everything I've heard is that Wicked,
• 20:52
  Speaker 3: by the way, is fantastic. Gladiator two good, not great,
• 20:57
  Speaker 3: doesn't live.
• 20:57
  Speaker 2: Up to the original. Unfortunately.
• 20:59
  Speaker 3: We can talk about if anyone's interested, but it's not
• 21:01
  Speaker 3: really what we do on the show. But so we
• 21:04
  Speaker 3: could ended up bringing in ninety five million dollars domestically
• 21:09
  Speaker 3: and has in total, you know, brought in you know,
• 21:14
  Speaker 3: the two movies combine brought in three hundred and eighty
• 21:16
  Speaker 3: four million worldwide. Domestically, Gladiator two brought in fifty six
• 21:20
  Speaker 3: million dollars in North America. So overall you're seeing things.
• 21:26
  Speaker 3: You know, Again, the right movie can get crowds to
• 21:30
  Speaker 3: turn out, but this is something that is a tough
• 21:33
  Speaker 3: sell for individuals now, which is, hey, if I'm gonna
• 21:38
  Speaker 3: go to a movie and you're gonna make me pay,
• 21:41
  Speaker 3: you know, depending on the location anywhere from like fourteen
• 21:44
  Speaker 3: to twenty five dollars for tickets, so if I'm bringing
• 21:46
  Speaker 3: a family of fourd it's one hundred dollars. Or I
• 21:49
  Speaker 3: can just wait sixty days now and watch it on
• 21:51
  Speaker 3: my eighty and screen at home. Why am I going
• 21:54
  Speaker 3: to the theater for these? And on top of that,
• 21:58
  Speaker 3: can we talk about how movie theater etiquette sucks these days?
• 22:03
  Speaker 2: Does it? I haven't had any problems, but I very
• 22:06
  Speaker 2: rarely go to the theater.
• 22:07
  Speaker 3: Apparently people are getting up in the middle of Wicked
• 22:09
  Speaker 3: and singing and dancing.
• 22:11
  Speaker 2: No, nope, you gotta go like, can't do that?
• 22:15
  Speaker 5: Remember Mama Mia being one of those movies too, with
• 22:18
  Speaker 5: people like dancing and that crap.
• 22:20
  Speaker 2: Can't do that.
• 22:21
  Speaker 4: I'm there just one movie where you are allowed to
• 22:23
  Speaker 4: get up and dance, and that is Taylor Swift's concert
• 22:27
  Speaker 4: movie Make Only One.
• 22:30
  Speaker 2: That now, Make only One?
• 22:31
  Speaker 3: I think it's like, I'm not someone who needs the
• 22:34
  Speaker 3: movie to be like everyone to be silent around you,
• 22:36
  Speaker 3: like it's okay when something scary happens for people to
• 22:38
  Speaker 3: gasp or sure I get like the end of Rocky
• 22:41
  Speaker 3: like everyone's cheering. Like I understand these things. But there's
• 22:45
  Speaker 3: a difference between going to a movie because I want
• 22:48
  Speaker 3: to hear Ariana Grande sing the words, and because you're
• 22:52
  Speaker 3: screaming so loud next to me that I can't hear
• 22:54
  Speaker 3: what's going on in the movie.
• 22:56
  Speaker 2: That's funny that that's happening overall.
• 22:58
  Speaker 4: Apparently the real problem ticket sales down about eleven percent
• 23:02
  Speaker 4: compared to last year.
• 23:03
  Speaker 2: Going into this weekend.
• 23:04
  Speaker 4: You do have Mwana Tu getting released in two days,
• 23:07
  Speaker 4: so I suspect that that's going to be a heavy
• 23:09
  Speaker 4: hitter as well. So we'll see where things land. But
• 23:13
  Speaker 4: the key point here is that movie sales overall are
• 23:16
  Speaker 4: off over a quarter compared to pre pandemic, and that's
• 23:21
  Speaker 4: the piece that it's not coming back. It doesn't seem
• 23:23
  Speaker 4: to be.
• 23:24
  Speaker 3: It's not going to come back to the same level,
• 23:26
  Speaker 3: which means you need budget cuts.
• 23:28
  Speaker 4: You just need complete, yeah, changes in terms of how
• 23:31
  Speaker 4: we do movies. And you've already started to see that
• 23:33
  Speaker 4: with a number of closures and studios. I mean clearly
• 23:36
  Speaker 4: studios are thinking about what to develop in a very
• 23:38
  Speaker 4: different way compared to years past.
• 23:41
  Speaker 2: Yeah, they kind of have to.
• 23:42
  Speaker 4: Folks closing in on the end of the month here
• 23:44
  Speaker 4: and we have a brand new guide out from the
• 23:46
  Speaker 4: Armstrong Advisory Group and it's a great one to get
• 23:48
  Speaker 4: your hands on prior to your end. It's all about
• 23:51
  Speaker 4: our top year end planning tips and there are a
• 23:54
  Speaker 4: number of these that if you want to accomplish, have
• 23:56
  Speaker 4: to be done in calendar year twenty twenty four. Include
• 24:00
  Speaker 4: things like taking your required minimum distribution, looking at roth
• 24:04
  Speaker 4: conversions for example, big ones that only can be done
• 24:09
  Speaker 4: if you take care of them before December thirty first.
• 24:11
  Speaker 4: Tax loss harvesting is also a really big one this
• 24:14
  Speaker 4: time of year if you haven't taken the time to
• 24:18
  Speaker 4: set some priorities for year end when it comes to
• 24:20
  Speaker 4: your personal financial life. This is an easy to accomplish
• 24:23
  Speaker 4: list that you can take a look through and really
• 24:26
  Speaker 4: make sure things are buttoned up as you head into
• 24:28
  Speaker 4: the end of the year. You can get a copy
• 24:30
  Speaker 4: of it by calling the Armstrong Advisory Group at eight
• 24:33
  Speaker 4: hundred three nine three for zero zero one. But we
• 24:36
  Speaker 4: cover all sorts of things from tax rates going into
• 24:39
  Speaker 4: next year, how to look at beneficiaries, your credit report, budgeting,
• 24:44
  Speaker 4: a number of key items that are really really important
• 24:47
  Speaker 4: if you're trying to set some goals for twenty twenty
• 24:50
  Speaker 4: five and make sure things are buttoned up heading into
• 24:52
  Speaker 4: the new year.
• 24:53
  Speaker 2: Again.
• 24:54
  Speaker 4: That phone number for the Armstrong Advisory Group is eight
• 24:56
  Speaker 4: hundred three nine three four zero zero one. The name
• 24:59
  Speaker 4: of the guy it is top year end Planning Tips
• 25:02
  Speaker 4: and once more eight hundred three nine three four zero
• 25:05
  Speaker 4: zero one.
• 25:06
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 25:09
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 25:11
  Speaker 1: Armstrong guide a specific financial, legal, or tax advice. Consult
• 25:15
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 25:17
  Speaker 1: any investment decisions. Armstrong make contact you to offer investment
• 25:20
  Speaker 1: advisory services.
• 25:22
  Speaker 2: Black Friday or J. Powell Black Black Friday. Okay, what
• 25:25
  Speaker 2: are we going to talk about with it?
• 25:26
  Speaker 4: We've got the good, the bad, and the ugly in
• 25:28
  Speaker 4: terms of retailers over the last week.
• 25:31
  Speaker 2: Do you want the good, the bad of the ugly?
• 25:33
  Speaker 5: Uh?
• 25:33
  Speaker 2: Good? Walmart? Yeah? Bad? Target, Yep, who's the ugly? Macy's.
• 25:40
  Speaker 2: Let's just do it. Let's just do so.
• 25:42
  Speaker 3: This one is good, this is this is a great one.
• 25:47
  Speaker 4: So Macy's has had to delay their earnings and it
• 25:52
  Speaker 4: appears that an employee hid They say millions of dollars
• 25:56
  Speaker 4: of expenses, but it sounds.
• 25:58
  Speaker 2: More like hundreds of millions of dollars of expense.
• 26:01
  Speaker 3: Between one hundred and thirty two and one hundred and
• 26:02
  Speaker 3: fifty four million dollars of expenses, which, again, macy is
• 26:06
  Speaker 3: a big company.
• 26:07
  Speaker 2: I don't know how you miss one hundred and thirty
• 26:09
  Speaker 2: to one hundred and fifty million dollars in expenses.
• 26:11
  Speaker 3: So here here's the deal from what we know, because
• 26:15
  Speaker 3: we don't know much. It's an employee who's responsible for
• 26:19
  Speaker 3: small package delivery expense accounting.
• 26:21
  Speaker 2: So think of it.
• 26:23
  Speaker 3: This is not when you have a full luggage set
• 26:26
  Speaker 3: delivered by Macy's. This is when you have a water
• 26:30
  Speaker 3: bottle delivered by Macy's. And you can you better believe
• 26:35
  Speaker 3: that this employee was on some kind of plan whereas
• 26:38
  Speaker 3: compensation was tied to how much money he saved the company,
• 26:42
  Speaker 3: and somehow this employee probably figured out, hey, I can
• 26:48
  Speaker 3: you know hide this cost somewhere, and there weren't enough
• 26:52
  Speaker 3: controls overhead to be able to figure out that this
• 26:55
  Speaker 3: employee was doing it, and it ended up resulting in
• 26:58
  Speaker 3: the employee hiding one hundred of millions of dollars of
• 27:02
  Speaker 3: expenses that the company was actually accruing.
• 27:04
  Speaker 4: Now, if that ends up being true. Can we just
• 27:07
  Speaker 4: talk about how it is vastly inappropriate to have somebody
• 27:12
  Speaker 4: who is in charge of accounting, somebody who is able
• 27:18
  Speaker 4: to cover up these expenses, have their compensation tied to
• 27:21
  Speaker 4: how little expenses you have? Yes, right, that is an
• 27:26
  Speaker 4: enormous lack of controls.
• 27:28
  Speaker 3: Beyond that, I'm shocked that Macy's stock is only down
• 27:32
  Speaker 3: three percent today on the States because this is one employee.
• 27:39
  Speaker 3: This is one employee make twenty one and so if
• 27:44
  Speaker 3: if i'm you know, looking at this Macy's, the data
• 27:49
  Speaker 3: that I have here is that as of January thirty
• 27:53
  Speaker 3: first of this year, they had about eighty five thousand employees. Now,
• 27:57
  Speaker 3: not all of them have this level of power, right,
• 28:00
  Speaker 3: you better believe there's at least a few hundred that
• 28:04
  Speaker 3: are in places where they can do things like this.
• 28:08
  Speaker 3: How do you know there aren't other problems if you
• 28:11
  Speaker 3: are an investor in Macy's.
• 28:14
  Speaker 4: Yeah, you don't, and you might not until December eleventh,
• 28:17
  Speaker 4: when they say they plan to release their results.
• 28:19
  Speaker 3: So I guess great from Macy's that they think they're
• 28:23
  Speaker 3: going to have this squared away in two weeks to
• 28:25
  Speaker 3: be able to give accurate reporting.
• 28:28
  Speaker 2: Good luck, But man, this is bad, this is not good. Yeah.
• 28:35
  Speaker 4: Yeah, so they get the ugly grade from from the good,
• 28:38
  Speaker 4: the bad, and the ugly of retailers. We don't know
• 28:41
  Speaker 4: anything about their actual earnings, Like I don't know how
• 28:43
  Speaker 4: much stuff they actually sold, don't know how much it
• 28:45
  Speaker 4: costs them to sell it. But that was the ugly.
• 28:48
  Speaker 4: The bad was Target barely grew their compstales year over year.
• 28:51
  Speaker 4: I know you probably covered that last week, and then
• 28:53
  Speaker 4: Walmart are hit their target. Yeah, they missed their target.
• 28:56
  Speaker 4: Walmart continuing to kill it. Comp store sales up what
• 28:59
  Speaker 4: was it's six percent? Five and a half percent? Yeah,
• 29:02
  Speaker 4: like just knocking the cover off the ball. And uh
• 29:06
  Speaker 4: goes back to that K shaped recovery that we've talked
• 29:08
  Speaker 4: about many, many times. If you're going to make an
• 29:12
  Speaker 4: appeal in that type of retail space right now, you
• 29:15
  Speaker 4: have to either have something genuinely unique or you gotta
• 29:19
  Speaker 4: be the cheapest one out there.
• 29:21
  Speaker 2: I don't know what niche Macy's fills at this point,
• 29:24
  Speaker 2: to the best of my knowledge.
• 29:26
  Speaker 3: The only thing that I know that they do is
• 29:31
  Speaker 3: they make it easy to set up a registry for
• 29:34
  Speaker 3: a wedding. But everyone does that. Now that you have technology.
• 29:39
  Speaker 4: I just think of cologne being sprayed at me when
• 29:42
  Speaker 4: I go to a Macy's.
• 29:44
  Speaker 2: Is that a positive or a negative? Negative?
• 29:46
  Speaker 3: Yeah, the plus side is if you go every day,
• 29:49
  Speaker 3: you never need to buy Colonne.
• 29:50
  Speaker 2: It's true. You you can just kind of keep rotating
• 29:54
  Speaker 2: through it. I'll try that one.
• 29:55
  Speaker 4: I start my day with a Starbucks coffee and I
• 29:57
  Speaker 4: walk through Macy's problems.
• 29:59
  Speaker 2: They don't up until like ten. It's not gonna work.
• 30:02
  Speaker 2: You just got to get the right kind of job. Yeah.
• 30:04
  Speaker 3: Yeah, I don't know what kind of job starts at eleven,
• 30:06
  Speaker 3: but that's the one that you need.
• 30:09
  Speaker 2: Yeah, let's take a quick break. When we come back,
• 30:12
  Speaker 2: we'll do a little bit of stack Roulette.
• 30:14
  Speaker 1: Miss any of the show, catch up at your convenience
• 30:17
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• 30:20
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• 30:23
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• 30:26
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• 30:30
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• 30:34
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• 30:44
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• 30:47
  Speaker 5: The Financial Exchange wants to thank all of you took
• 30:50
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• 31:25
  Speaker 2: Mike, what do you have for stack Roulettes?
• 31:27
  Speaker 4: We've talked a bit about something that was mentioned on
• 31:30
  Speaker 4: the campaign trail that I think is almost definitely not
• 31:32
  Speaker 4: going to happen. But as is pointed out by Bloomberg,
• 31:35
  Speaker 4: when Bernie Sanders and Donald Trump agree on something, it's
• 31:38
  Speaker 4: a sign that trouble is afoot. Now, I disagree with
• 31:41
  Speaker 4: the trouble being a foot because I don't think anything's
• 31:43
  Speaker 4: going to happen here, But what they happen to agree
• 31:45
  Speaker 4: upon is that credit card interest rates should be capped
• 31:49
  Speaker 4: at ten percent, and so Tyler Kawen I think does
• 31:51
  Speaker 4: a pretty good job of explaining what would practically happen
• 31:54
  Speaker 4: here if you did cap credit cards at ten percent.
• 31:59
  Speaker 4: What would probably have and is the only people that
• 32:00
  Speaker 4: were issued credit cards would be those with incredibly high
• 32:04
  Speaker 4: credit scores. It's a competitive market. It's not as though
• 32:08
  Speaker 4: we're at thirty percent interest rates because there's only two players.
• 32:12
  Speaker 4: We're at thirty percent interest rates because default rates on
• 32:15
  Speaker 4: credit cards are really high, and so in order for
• 32:18
  Speaker 4: banks to make a bunch of money on this product,
• 32:21
  Speaker 4: they have to charge exorbitantly high credit card interest rates
• 32:24
  Speaker 4: across the board that are only then paid by people
• 32:27
  Speaker 4: that usually have bad credit and carry a balance on
• 32:30
  Speaker 4: those things. And so look, I won't even pass judgment
• 32:34
  Speaker 4: on that. You can decide, but if you only want
• 32:37
  Speaker 4: credit cards to be issued to folks with impeccable credit scores,
• 32:41
  Speaker 4: then that's what this will do. If you cap interest
• 32:43
  Speaker 4: rates at ten percent, everyone else will get a cancelation notice.
• 32:45
  Speaker 4: Because if I'm wells Fargo, I'm not just going to
• 32:52
  Speaker 4: lose money on a product.
• 32:53
  Speaker 2: No, I mean, here's the thing.
• 32:55
  Speaker 3: If you look and this is data from the Federal Reserve,
• 32:58
  Speaker 3: so they're pretty good at days. Yes, typically charge off
• 33:03
  Speaker 3: rates on credit cards meaning look how much you know,
• 33:06
  Speaker 3: debt has to be written off by the banks that
• 33:08
  Speaker 3: are that are issuing them. Normally sits anywhere between about
• 33:11
  Speaker 3: four and six percent. During the Great Financial Crisis when
• 33:14
  Speaker 3: as high as nine percent. But that's on the broad
• 33:17
  Speaker 3: pool of credit card borrowers. If you look at where
• 33:23
  Speaker 3: that charge off is actually coming from, it's typically you know,
• 33:28
  Speaker 3: your your sub six fifty credit scores that are still
• 33:31
  Speaker 3: getting access to credit cards. Your charge off rates are
• 33:35
  Speaker 3: coase to like twenty to twenty five percent. So in
• 33:38
  Speaker 3: order for the credit card company to make money on
• 33:41
  Speaker 3: those borrowers, they say, yeah, we've got to charge you know,
• 33:45
  Speaker 3: twenty five percent because we need a five percent cushion
• 33:48
  Speaker 3: against the defaults that are out there. They're not actually
• 33:52
  Speaker 3: making twenty five percent on this that if you are
• 33:56
  Speaker 3: paying your interest, yes, on a gross spaces they make
• 34:00
  Speaker 3: twenty five percent on you.
• 34:02
  Speaker 2: But there are a ton of people that can't pay that,
• 34:05
  Speaker 2: and so they just.
• 34:05
  Speaker 3: Have to write it off and so their net take
• 34:07
  Speaker 3: home is not the twenty five percent.
• 34:09
  Speaker 4: There's also all sorts of fraud that they cover that
• 34:12
  Speaker 4: they try and recover. Right, how many times have you
• 34:14
  Speaker 4: had gasoline charge to your credit card that in a
• 34:17
  Speaker 4: state that you don't live in, and you've called the
• 34:19
  Speaker 4: credit card say hey, gasoline, that wasn't me, Mike, I like,
• 34:24
  Speaker 4: a thousand pounds of bricks charged to a credit card? Yeah,
• 34:27
  Speaker 4: And I'm sitting there, I'm like, Nope, wasn't me. I
• 34:29
  Speaker 4: didn't buy a thousand pounds of bricks in like Illinois.
• 34:32
  Speaker 4: Or what happened, Chuck? Did they argue with you for
• 34:34
  Speaker 4: months and say, well, Chuck, I'm not sure we're going
• 34:36
  Speaker 4: to put that back on your balance.
• 34:37
  Speaker 2: Nope?
• 34:38
  Speaker 3: They took two minutes. They said, we've avoided that charge.
• 34:40
  Speaker 3: We're sending you a new card, please shred.
• 34:42
  Speaker 2: Your old one. And that was it.
• 34:44
  Speaker 4: And they had to eat that because they attempt to
• 34:47
  Speaker 4: recover it. They sure a file police report, they go
• 34:49
  Speaker 4: investigate it.
• 34:50
  Speaker 3: But so look, if you have if you're someone with
• 34:56
  Speaker 3: good credit, you're not paying the interest to begin with,
• 34:59
  Speaker 3: and if you're someone with bad credit, you're not going
• 35:03
  Speaker 3: to have access to it at all anymore. I'm not
• 35:05
  Speaker 3: saying that this is good or bad. I'm just saying,
• 35:08
  Speaker 3: if you only let banks charge ten percent interest on
• 35:11
  Speaker 3: credit cards. The people that actually need that as a
• 35:17
  Speaker 3: last resort line of credit, they won't have them.
• 35:19
  Speaker 2: They won't have them.
• 35:20
  Speaker 3: Yeah, like that's that's where you're gonna end up going
• 35:23
  Speaker 3: with that ultimately. So yeah, I tend to agree. Peace
• 35:28
  Speaker 3: in the Wall Street Journal by the house first, get
• 35:29
  Speaker 3: married later, Couple's new math, newsflash, don't do this.
• 35:33
  Speaker 2: It's dumb.
• 35:35
  Speaker 3: So it's talking about how people are putting off weddings
• 35:38
  Speaker 3: and instead they're buying properties together before they're married. And
• 35:43
  Speaker 3: here's why this is dumb is I have a friend
• 35:45
  Speaker 3: who actually did this, and what ended up happening was
• 35:49
  Speaker 3: that her and her fiance ended up calling off their
• 35:53
  Speaker 3: wedding before it happened. And then you have a home
• 35:56
  Speaker 3: that is either owned by one of the people that
• 35:58
  Speaker 3: the other person has no entitlement too, even though they
• 36:00
  Speaker 3: might have split down payments and stuff like that, or
• 36:03
  Speaker 3: it's now owned by two people that are no longer
• 36:06
  Speaker 3: going to be living together, but also don't have any
• 36:08
  Speaker 3: kind of legal contract tying them together. And so how
• 36:11
  Speaker 3: do you unwind that successfully and try to figure out
• 36:14
  Speaker 3: who actually gets what out of it? Given that you
• 36:17
  Speaker 3: don't have a court that can order you to split
• 36:19
  Speaker 3: things up a certain way.
• 36:22
  Speaker 4: Yeah, I tend to agree that this is probably very
• 36:24
  Speaker 4: dumb unless you actually go and get something drawn up
• 36:27
  Speaker 4: that's very specific about how it's all going to be handled.
• 36:32
  Speaker 4: So yeah, I mean, generally, I think the good consistent
• 36:35
  Speaker 4: advice would be don't do this. And also, like, I
• 36:39
  Speaker 4: feel like the motivation behind it is, Hey, we want
• 36:42
  Speaker 4: to have an expensive, big party wedding at some point,
• 36:45
  Speaker 4: but you know, our priority is buying a home, which
• 36:48
  Speaker 4: is a great financial soundness right, Like, Hey, I shouldn't
• 36:52
  Speaker 4: spend eighty thousand dollars on a one time event or
• 36:55
  Speaker 4: thirty thousand dollars on a one time event that is
• 36:59
  Speaker 4: important to us but ultimately is money that we will
• 37:02
  Speaker 4: never see grow, and instead I want to put that
• 37:05
  Speaker 4: towards the down payment. Great, go to court, get married legally,
• 37:09
  Speaker 4: and then throw the party five years from now when
• 37:11
  Speaker 4: you are in a better, better find inspiration to do so.
• 37:13
  Speaker 3: Totally fine, But yeah, I've seen this go badly in
• 37:16
  Speaker 3: a couple different instances, where buying a house with someone
• 37:22
  Speaker 3: who you intend to marry but are not yet married
• 37:25
  Speaker 3: yet is kind of dodgy, you know, and look I'm
• 37:33
  Speaker 3: not all you know, hey, don't ever live with someone
• 37:36
  Speaker 3: until you're married. Like, newsflash, I lived with my spouse
• 37:40
  Speaker 3: before I was married, but we didn't own the home together.
• 37:44
  Speaker 2: Yeah, yeah, that's different. You know, same guys with best
• 37:47
  Speaker 2: like buddies.
• 37:48
  Speaker 4: You've heard of that story too, Like, oh yeah, my
• 37:50
  Speaker 4: friend and I bought a house and like, well, yeah,
• 37:51
  Speaker 4: but what happens when one of you goes get and
• 37:53
  Speaker 4: gets married and the other one needs a liquidity if right.
• 37:57
  Speaker 3: If you want to have a business partner that you
• 38:00
  Speaker 3: buy rental property with together, okay, even there, find the
• 38:02
  Speaker 3: right legal documentation, drop the right partnership agreement and do that.
• 38:06
  Speaker 3: But that's fundamentally different from hey, we like each other,
• 38:09
  Speaker 3: let's buy a place together with you know, both our
• 38:12
  Speaker 3: names on the deed and no legal recourse if anything happens,
• 38:16
  Speaker 3: it's kind of problematic. We're done for the day, See
• 38:19
  Speaker 3: you tomorrow on the financial exchange