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Banks and Jobs with Edward Siddell #5803 · Financial Survival Network

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  You're listening to Carrie Letz's Financial Survival Network, where you get valuable information you
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  Welcome you are watching listening to the Financial Survival Network. I'm your host,
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  Carrie Lutts. Well, Banks and jobs that's all anybody's talking about now.
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  And the question is, hey, what does it mean to you? What
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  does it mean to the economy, to your investment portfolio and to your retirement.
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  And on that note, we got Ed Sidel with us again. Ed.
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  It's always great to have you on. So, Hey, jobs numbers,
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  they look maybe better than they really are. You know, well,
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  first of all, thanks for having me back. And you know, I
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  do I think they're misleading. I think a lot of the jobs that we're
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  seeing right now, um are not career jobs. They may be second and
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  third jobs, which is um you know, telling us that people love you
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  know, they're they're not needing ends meet and so they're they're having to get
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  the second and third jobs. You know, I don't think these are the
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  ones that that have the healthcare, in the four one K in the retirement
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  all the other benefits that come along with it. UM. But you know,
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  the big thing that it's telling me more than anything else, is that
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  what what the Feds are doing is it's it's not working, um. And
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  they're they're trying to slow down the economy. They're trying to punish small businesses
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  UM for something that they have no control over. When I'm talking about is
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  you know, the government overspending. I mean, that's that's the issue,
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  that's where the problem lies. And we're still having that issue UM today,
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  you know, even as it relates to these bank failures. M. So
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  there's too much debt that's been increasing geometrically, the economy is going backwards,
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  if anything. I mean, and where is that going to leave us here?
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  You know, that's a great question. Hy. You know, I
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  think we're in a situation right now. First of all, let's let's talk
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  about the banks. UM. You know, they said that there's no bailout,
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  so it's been a no bailout bailout UM, you know, which is
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  really when you're bailing out the banks the only way to do that. Um.
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  It's it's you know, you can't create money out of thin air without
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  printing it. And that's really what they're doing. And that's in essence,
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  another round of of quantitative easing. So you know that that adds to inflation,
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  because if you actually look at the Fed's balance sheet at least what they
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  reported, what they removed from it, um and then what they added back
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  on. UM. You know, we wiped away um any any assets or
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  any any liabilities that that we took off. So really, in essence,
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  that's a that's another round of quantitative easing, which just continues to add to
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  the inflationary pressure. And when you think about small businesses, you know,
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  that is the lifebread of our country, Okay, And as they continue to
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  raise rates, the credit continues to tighten, and small businesses they need that
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  credit to continue to grow and expand. And you know, if they continue
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  to slow down the economy, which is obviously what their goal is, it's
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  really going to to crush. And I think a storm is brewn. I
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  really do a week. I think I said it the last time we talked.
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  You know, I think we're in for a recession. That's deep and
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  the fact that the FEDS even said that we're in for a mild recession.
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  I can't remember the last time they ever admitted to whether it inflation and recession
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  or anything. You know, that just kind of leads me to believe that,
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  you know, a storm is brought, all right, so the storm's
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  brewing, So what do you do about it? How do you protect yourself
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  from the storm? You don't want to be out in the middle of the
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  Atlantic when humongous hurricane hits. I mean I was just in Florida and a
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  couple of weeks ago, the well, it was a week ago actually a
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  hurricane tornado EF two tornado hit five hundred feet away, and I was oblivious
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  to it until I went outside and saw all the damage. Wow. But
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  then it occurred to me, you know, it could have been me in
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  there. I could have been hit by that tornado and I didn't even take
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  it seriously. Yeah, And you know what pedis, what a great analogy.
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  I think that's where we're seeing right now because we're getting so many mixed
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  messages, you know, from you know those on TV. Hey don't worry,
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  We're in the middle of a bullmarket. He know, to the Treasury
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  to the Feds. Hey, you know, everything is fine, don't worry
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  about it. The banking a system is fine, don't worry about it.
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  The US dollar is strong, don't worry about it. And you know what's
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  the the old Singo ignorance is bliss right. Um. You know, for
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  us, it's all about the hedge. Um. You know that there's a
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  slowdown because last time we talked, you know, we were we were betting
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  on oil. Um. You know, with China opening up, you know,
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  we thought that the demand was going to be high. But the fact
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  that it has dropped significantly. I'm just just in the last forty five sixty
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  days. You know, that's telling us that it's not just the US,
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  it's a it's a global slowdown. Um. So so what do you do?
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  Um? You know, for for us, you know, it's being
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  liquid. You know, you've got to have a little bit in the market.
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  But you know, I really like gold, um. You know,
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  not just you know, the the gold and silver stocks, um, but
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  you know as as well as the mining stocks. But you know, the
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  physical You've got to really hedge against the US dollar right now because if they
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  continue to print the way that they are then you need to figure out,
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  okay, well what's a good storage of of value um And you know,
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  when it comes to the stock market, you know, again, I still
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  believe there's a couple really good companies out there that have very strong balance sheets.
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  And you know, even if they have hipcups, you know, I
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  think, you know, as far as a long term play, you know,
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  those value companies, whether they're dividend or not, that just have really
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  strong balance sheets, that's that's really the place to go right down and have
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  a large portion of your portfolio in money markets, short term treasury, so
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  that it's liquid enough that if and when things turn around, you know,
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  you can take advantage of some really good buys. All right, So I'm
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  buying what you're saying. But you know, so you want to load up
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  on liquidity obviously wherever possible. What about this concept of paying down debt.
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  I mean a lot of financial advisors say you should do it. But when
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  you got inflation, if double digits, your debt's getting effectively paid down by
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  the Fed? Isn't it that? That's exactly I agree completely, yes,
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  yes, and that's exactly it. Didn't you know, I'm paying down debt
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  right now, I know cash is king, but you know, especially if
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  you have a low interest rate, it doesn't make sense. Now obviously if
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  you have credit cards and you're paying you know, twenty twenty five percent,
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  you know, I mean whatever you ball, you're you're buying again every four
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  or five years if you're just making the minimum payment. So those are probably
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  that's the type of debt that you want to get rid of. Um.
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  But you know, as far as the long term low interest rates debt site,
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  I just you know, hang on to him. I would not pay
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  them off at least that's what we're recommending to our language trist rate debt.
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  We're talking yeah, five percent or less, that's absolutely well, you know,
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  we're we're looking at it. Depending on the math, you know,
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  for your pretical as we're saying about five in a quarter. So it everyone's
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  situations a little bit different, but usually the average that we've been when we're
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  running through our debt calculator, it's usually about five in a quarter, right,
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  Okay, So, um, hey, I got a h one of
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  our our FSN community members set the question that I don't feel qualified to answer,
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  but perhaps you can. She said, she's considering putting in solar,
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  all right, or two reasons A to bring down her monthly payment. Three
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  reasons B because there's a thirty percent to tax credit. And see in case
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  there's disruption of the grid. The rate on that is about six or eight
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  percent. But she immediately effectively it's like it's on sale or seventy cents,
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  right, because you get that thirty cents on the dollar picker, and then
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  you believe she can save somewhere about two to three thousand dollars per year at
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  current rates. Is that a good thing to do, assuming they've got the
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  money in their liquid and high handle it. You know what, I agree
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  with you. I'm not sure I'm qualified to give it an opinion, an
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  expert opinion on that. But ironically, I had a conversation with a gentleman
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  today who's a contractor and he installs the solar panels on the roofs, and
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  I asked him today, I said, you know, what is the break
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  even? Because we're here in Ohio, And he said, you know,
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  if you're here in Ohio, even with the the thirty percent discount, you
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  know your break even on that is, you know a little over ten years
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  now. Obviously, if you're in Florida or you know, Arizona, it's
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  a much shorter time tour. But I think those are the things that you
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  really need to look at Holm before he delve into it. Yeah. I
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  think she was in um maybe New Mexico. So that's one of those places
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  that gets sun even better than Florida because they don't really get rain in the
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  Southwest. Right, Yeah, and I would venture just hey, just as
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  you know, a shot in the dark, they their break even is probably
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  going to be you know, around three years, maybe even last, just
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  because they have sun so often. But you know, again it's that's I'm
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  not qualified really to to answer that on its marriag. It looks like it
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  might be a good deal, but you know, I don't know for sure,
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  Okay, all right, well it sounds like it's certainly worth looking at,
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  especially if you're large tax bill and if you're in high bracket, you
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  know, well, it doesn't even matter or you will, it doesn't matter
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  what your bracket is. You're getting a tax credit. So if even if
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  you can't use it all this year, you can carry it forward to subsequent
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  years. And that's right, you know, at seventy percent at thirty.
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  It's effectively a thirty percent off sale sponsored by Uncle Sam. Now we could
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  mart these remind all of us. Yeah, whether it's a smart move or
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  not, probably not. But on the other hand, oil supply issues are
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  definitely going to come into play. So you see substantial increases in energy and
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  utility rates, right, you know, I still see rates going up.
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  I mean you can't help but to think that they're going to just because we're
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  not producing any energy here, we're still importing it. So you know,
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  when demand turns around, Um, yeah, it's it's going to shoot up.
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  I mean it's you know, they have the monopoly on it, and
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  and we're kind of in um in handcuffs. We're we're we're playing catchup as
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  far as that goes. Yeah, alright, so high paying debt, we
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  want to be get rid of low coupon debt and actually play it to a
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  better financial strategy. Then yes, absolutely so Jobs, jobs, jobs,
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  you know, we get these lowery lowing job and reports. Do you believe
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  them? You know? I mean it's just like the unemployment numbers. I
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  mean they're they're all stewed. Um. You know, once you've been unemployed
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  for over a year, you're off the roles, um, and there's no
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  way to know what those numbers are and what actually what kind of jobs they're
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  actually counting. Um. You know, in best case scenario, like I
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  said before, I think that these are second and third jobs and with no
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  benefits, and that really doesn't help you know, the working class by by
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  any stretch of the imagination. And they're the ones that are struggling right now,
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  you know, accumulating all the credit card debt just to be able to
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  you know, keep up with inflation. Yeah, just to buy groceries at
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  Walmart, right, yeah? Yeah, Well you know what's bad when Whole
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  Foods, um, you know, the the the average shopper there is no
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  longer shopping at Whole Foods, in shopping at the Walmart supercenters. I mean,
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  that's that's kind of the telltale sign right there. Hey, you know
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  they used to call it a whole paycheck once upon a time. Now they've
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  renamed it its whole life savings. Yeah, very true, very true.
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  All right, So inflation beaters, like besides eating spam instead of steak,
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  doing less, how do you get more out of your money? Well,
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  that's the million dollar question, isn't it um. You know, just those
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  assets, um, whatever it is, whether it's gold, silver, land,
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  real estate, you know, those things that are not going to continue
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  to devalue. As far as buying food, you know, shopping at those
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  stores where you can get good deals, whether it's an Ald, Walmart,
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  whatever it is, Costco um, where you're getting better discounts, and you
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  know, the the average price is already the sale price. UM. I
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  think in Walmart's report that came out in November, UH actually said that you
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  know, those customers that that were shopping already at Walmart, they're now buying
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  the the generic brands. And you know those that were at Whole Foods UM
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  are now shopping at Walmart. So instead of buying those name brands, you
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  know, everyone's kind of stretching those dollars, you know a little bit further.
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  But you know, here in Ohio, what we're seeing is you know,
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  a whole another economy as it relates to these local farmers and how these
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  these farming stands and you know they're selling you know, meats, chickens and
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  in cows and in pigs and neighbors kind of going back and forth, and
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  you know, the grass fed beef and it's actually cheaper than what you're getting
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  in the store. So you know, maybe getting together with a couple families
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  and everyone, you know, maybe buying a quarter of a cow, you
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  know, and and stretch that dollar, you know, and have a go
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  a lot further. And plus it's healthier for you, hey and h Plus
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  stop buying processed foods. Maybe that's absolutely you've got a junk. At least
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  make the junk from scratch. You know, going out fast food is more
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  expensive than making the stuff at home. Oh it is. I just heard
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  that McDonald's is raising their value meals. I think now it's up to nine
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  dollars. I mean, my goodness, it's it's fast food, but it's
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  definitely not cheap. And you know, I'm not sure how healthy it is
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  either. No, we know about the health aspects. It's garbage and it's
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  gonna be deaf impact not just your lifespan, but quality of life while you
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  are alive. So oh, yes, let's not bother with that. But
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  hey, there's we could go over a lot here. But I kind of
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  like the idea of bulk shop shopping. Let's stick to your list, don't
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  go buying like on a shopping binge at Costco. Buy this really need because
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  you will save money if you buy a case of paper towels rather than buying
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  onesie two zie at the supermarket. If you buy a case of toilet paper,
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  all that stuff, Plus it's a lot less aggravating because you never run
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  out of stuff when you buy it in bulk. Hey, Eddie, appreciate
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  your coming on giving us insights into these important matters. If we want to
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  reach you, where do you inhabit these days? And you can reach us
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  at EGSI financial dot com. That is going to be the best place to
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  find us, eg SI financial dot com. That is in the show notes
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  on this interview on Financial Survival Network dot com. When you're there, make
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  sure you go sign up for your free newsletter. If you got a question
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  for Eddie or myself, k l at Carrie Lutz. That's the magic email
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  address and we'll get you an answer quick. Eddie, always a pleasure,
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  Thanks so much for stopping by. Hey, thanks for having me, Thanks
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  for listening to Carrie Lutz's Financial Survival Network, your solution to today's trying times.
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  For the latest, go to Financial Survival Network dot com. Financial Survival
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  Network now more than ever,