Latest / The Financial Exchange Show / Why do so many Americans feel financially trapped?

Transcript

Why do so many Americans feel financially trapped? · The Financial Exchange Show

• 0:00
  Speaker 1: The Financial Exchange is produced by Money Matters Radio and
• 0:03
  Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
• 0:06
  Speaker 1: registered investment advisor. All opinions expressed are solely those of
• 0:09
  Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
• 0:12
  Speaker 1: or anyone else. Investments can lose money. This program does
• 0:14
  Speaker 1: not offer any specific financial or investment advice. Please consult
• 0:18
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 0:20
  Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
• 0:24
  Speaker 1: this program do not endorse each other or their services.
• 0:26
  Speaker 1: Armstrong and Money Matters Radio do not compensate each other
• 0:29
  Speaker 1: for referrals and are not affiliated. This is the Financial
• 0:35
  Speaker 1: Exchange with Chuck Zada and Mike Armstrong, your exclusive look
• 0:39
  Speaker 1: at business and financial news affecting your day, your city,
• 0:43
  Speaker 1: your world. Stay informed and up to date about economic
• 0:46
  Speaker 1: and market trends plus breaking business news every day. The
• 0:50
  Speaker 1: Financial Exchange is a proud partner of the Disabled American
• 0:54
  Speaker 1: Veterans Department of Massachusetts. Help us support our great American
• 0:58
  Speaker 1: heroes by visiting dav Ifk Dog Boston and making a
• 1:02
  Speaker 1: donation today. This is the Financial Exchange with Chuck Zada
• 1:06
  Speaker 1: and Mike Armstrong.
• 1:11
  Speaker 2: Chuck, Mike and Tucker with you, and we've got another
• 1:15
  Speaker 2: broad based rally taking place today, taking stocks to new
• 1:19
  Speaker 2: all time highs. On the S and P five hundred,
• 1:23
  Speaker 2: which currently sits at sixty five seventy seven, up another.
• 1:26
  Speaker 3: Forty five points today.
• 1:28
  Speaker 2: Uh. The NASDAK also finally notching another all time high.
• 1:32
  Speaker 2: It had been unable to even with the at least
• 1:35
  Speaker 2: on an intra day basis, it had been unable to
• 1:38
  Speaker 2: over the last couple of days, but finally has gotten
• 1:40
  Speaker 2: there now. And so the NASDAK up point six percent
• 1:44
  Speaker 2: one hundred and thirty one points. And last, but certainly
• 1:48
  Speaker 2: not least, the Dow Jones Industrial Average is up five
• 1:51
  Speaker 2: hundred and thirty seven points about one point two percent.
• 1:53
  Speaker 2: So again all three major US indices moving on up
• 1:58
  Speaker 2: despite a hotter than antiseiy've paided headline inflation report and
• 2:01
  Speaker 2: inline core inflation data, you've actually got bonds moving down
• 2:07
  Speaker 2: for yield's day, the Tenure Treasury right now down one
• 2:09
  Speaker 2: point three basis points to four point h one nine percent.
• 2:13
  Speaker 2: This because we got a worse than expected weekly jobbless
• 2:17
  Speaker 2: claims report for initial jobbles claims, which moved up to
• 2:21
  Speaker 2: two hundred and sixty three thousand from two hundred and
• 2:25
  Speaker 2: thirty six thousand in the prior week, and so markets
• 2:29
  Speaker 2: acting a little bit nervous and skittish on that side
• 2:32
  Speaker 2: of things right now. When we take a look at commodities,
• 2:37
  Speaker 2: we've got oil down a dollar fifteen a barrel to
• 2:40
  Speaker 2: sixty two to fifty two, and we've got gold down
• 2:44
  Speaker 2: fourteen sixty one ounce to thirty six sixty seven. And
• 2:48
  Speaker 2: those are the major moves taking place inside US markets.
• 2:52
  Speaker 2: State Mike, anything you want to add there, I.
• 2:54
  Speaker 3: Just wanted to contextualize one thing that we've It's been
• 2:57
  Speaker 3: getting a fair bit of price press coverage, not price coverage,
• 3:02
  Speaker 3: which is where the S and P sits in terms
• 3:04
  Speaker 3: of its valuation, and it is true that from a
• 3:09
  Speaker 3: number of different metrics, it is the highest that it
• 3:13
  Speaker 3: has ever been. Specifically, the one that people have been
• 3:16
  Speaker 3: looking at is that price to sales ratio, which looks at, hey,
• 3:20
  Speaker 3: what is the price of the S and P five hundred
• 3:22
  Speaker 3: compared to the gross sales of the businesses that comprise it.
• 3:26
  Speaker 3: The piece that has not hit those same all times
• 3:29
  Speaker 3: highs is the price to earnings ratio that is still
• 3:32
  Speaker 3: pretty well below where we were in the peaks of
• 3:35
  Speaker 3: the dot com bubble and really speaks to one main
• 3:40
  Speaker 3: piece of information here, which is that the companies today
• 3:45
  Speaker 3: that are getting bid up are far more profitable than
• 3:47
  Speaker 3: they were than those that were during the dot com bubble.
• 3:50
  Speaker 3: It does not mean that there weren't companies that were.
• 3:54
  Speaker 3: There are plenty of companies that were very profitable back
• 3:56
  Speaker 3: in the late nineties that we're also seeing their stock
• 3:58
  Speaker 3: prices go high, but they were far larger number of
• 4:00
  Speaker 3: those that were very unprofitable, very little revenue that we're
• 4:03
  Speaker 3: seeing their stock prices being bid up, and so a
• 4:06
  Speaker 3: key difference there, but still worth noting that, Yeah, when
• 4:09
  Speaker 3: you look at the price you're paying for stocks compared
• 4:11
  Speaker 3: to the total revenue that those companies are generating, while
• 4:14
  Speaker 3: that revenue is far more profitable, it is an all
• 4:18
  Speaker 3: time high piece.
• 4:20
  Speaker 2: From market Watch. Incomes rose and poverty fell last year.
• 4:23
  Speaker 2: So why do so many Americans feel tapped out? This
• 4:27
  Speaker 2: on a new look from the Census bure They do
• 4:29
  Speaker 2: an annual study on Americans incomes each year. It usually
• 4:35
  Speaker 2: comes out right around this time. It's called Income in
• 4:37
  Speaker 2: the United States. I mean, great title obviously twenty twenty
• 4:41
  Speaker 2: four is the part that I left off there. But Mike,
• 4:45
  Speaker 2: when asking this question, I don't think it's very hard
• 4:50
  Speaker 2: to get there in terms of Okay, median income went up,
• 4:56
  Speaker 2: and I went through the whole report, which it's not
• 4:58
  Speaker 2: too long. It's fifty eight pay but it's not like
• 5:01
  Speaker 2: overly dense. There's a lot of charts and things like
• 5:03
  Speaker 2: that there. And I think that the things that I
• 5:07
  Speaker 2: take away on this, median income went up by one
• 5:10
  Speaker 2: point three percent, which is fine. The pace of inflation
• 5:16
  Speaker 2: was steep in the last not steep steep, but you
• 5:20
  Speaker 2: know again, inflation was running too and a half three
• 5:22
  Speaker 2: percent somewhere in that ballpark, and in particular for those
• 5:26
  Speaker 2: that are lower income earners. When you look at you know,
• 5:31
  Speaker 2: lower income households, Hey, if you were struggling before, it's
• 5:35
  Speaker 2: not like there was anything last year that suddenly gave
• 5:37
  Speaker 2: you a huge leg up. Right, you still are, you know,
• 5:40
  Speaker 2: struggling pretty significantly. And this is all assuming that we're
• 5:44
  Speaker 2: actually you know, getting accurate reads on inflation and things
• 5:48
  Speaker 2: like that, which does not affect every group the same way.
• 5:52
  Speaker 2: You have you know, lower income groups. Hey, we just
• 5:54
  Speaker 2: saw food prices take a jump last month, A bigger
• 5:57
  Speaker 2: portion of you know, lower income households spent and goes
• 6:00
  Speaker 2: to food than if you're making you know, one hundred
• 6:03
  Speaker 2: and fifty thousand dollars a year. And so I don't
• 6:05
  Speaker 2: think it's surprising that a lot of people are saying
• 6:08
  Speaker 2: they're tapped out, even though incomes did go up a
• 6:10
  Speaker 2: little bit last year.
• 6:11
  Speaker 3: Yeah, and it goes back to really a theme that
• 6:14
  Speaker 3: we've been covering now for a good three years, which
• 6:17
  Speaker 3: is those with high incomes and the typically own big assets,
• 6:22
  Speaker 3: whether it's their home, their four oh one K, or
• 6:25
  Speaker 3: you know, other types of similar assets, and those ASSEID
• 6:28
  Speaker 3: prices have gone way up over the course of the
• 6:31
  Speaker 3: last two and a half years. If you don't own assets,
• 6:36
  Speaker 3: if you rent, and you make below the median national income,
• 6:41
  Speaker 3: you're seeing prices you know, continue to go up, your
• 6:45
  Speaker 3: wages just barely covering the increases and not seeing any
• 6:49
  Speaker 3: of the benefit of home values in four oh one
• 6:52
  Speaker 3: K values going up. And so, yeah, I guess I'm
• 6:55
  Speaker 3: with you, Chuck. I'm not terribly surprised that when you
• 6:58
  Speaker 3: pull Americans about how they're feeling about things, it's not
• 7:00
  Speaker 3: overly optimistic.
• 7:02
  Speaker 2: Other things like if you look at groups that are
• 7:04
  Speaker 2: not doing well, and the Census Bureau does a great
• 7:07
  Speaker 2: job of breaking this out with the different demographic breakdowns
• 7:11
  Speaker 2: that they give here. So here's some different groups that
• 7:15
  Speaker 2: aren't doing well last year. And again these are I
• 7:18
  Speaker 2: just want to clarify, all of these are in inflation
• 7:21
  Speaker 2: adjusted terms. So's it's all in twenty twenty four dollars,
• 7:24
  Speaker 2: it's already been adjusted in terms of inflation. If you
• 7:28
  Speaker 2: look at households where a black household member is the
• 7:32
  Speaker 2: primary household member, their incomes last year fell by three
• 7:35
  Speaker 2: point three percent. Kind of hard to say that you're
• 7:38
  Speaker 2: doing well if that's the case.
• 7:39
  Speaker 3: Correct.
• 7:40
  Speaker 2: Yeah, If you look at households where the primary household
• 7:44
  Speaker 2: member is age fifty five to sixty four, which is
• 7:47
  Speaker 2: twenty three million households, their incomes fell by one point
• 7:51
  Speaker 2: five percent. If you look at households in the Midwest,
• 7:55
  Speaker 2: twenty eight million households, and look, there's overlap in this.
• 7:57
  Speaker 2: So I don't want you to think that this is
• 8:00
  Speaker 2: gonna end up being everyone, but Midwest saw incomes fall
• 8:04
  Speaker 2: by one point one percent. If you look at residences
• 8:09
  Speaker 2: that are outside metropolitan statistical areas, so rural residents, their
• 8:14
  Speaker 2: incomes fell by point six percent. If you look at
• 8:18
  Speaker 2: folks with no high school diploma, about nine to a
• 8:21
  Speaker 2: half million households have a head of household that fits
• 8:24
  Speaker 2: that category, their incomes fell by one point eight percent.
• 8:28
  Speaker 2: So you can very easily get to a point where
• 8:30
  Speaker 2: you say, hey, they're probably somewhere in the range when
• 8:34
  Speaker 2: you include overlap in this and that. Out of one
• 8:37
  Speaker 2: hundred and thirty two million households, there's probably a quarter
• 8:40
  Speaker 2: to a third of them that still saw their incomes
• 8:43
  Speaker 2: fall relative to the year prior. Right That's why a
• 8:47
  Speaker 2: lot like right there, like that group is saying, yeah,
• 8:50
  Speaker 2: things aren't good. There's another group that is in there saying, hey,
• 8:54
  Speaker 2: my income barely changed, and so they just they might
• 8:57
  Speaker 2: just feel worse because I made more, but it all
• 9:00
  Speaker 2: to paying for the same stuff anyways. And so I
• 9:03
  Speaker 2: don't think it's surprising that you get, you know, forty
• 9:06
  Speaker 2: to fifty percent of people saying, yeah, like this is
• 9:09
  Speaker 2: really hard right now.
• 9:10
  Speaker 3: It's because it is. Yeah. They again, these these numbers,
• 9:14
  Speaker 3: at least they used median here when looking at these details.
• 9:17
  Speaker 3: But even when you look at that, it is tough
• 9:21
  Speaker 3: for a large portion of people especially over the course
• 9:25
  Speaker 3: of you know, when you look at this over the
• 9:27
  Speaker 3: course of four years, with the disastrous inflation of twenty
• 9:31
  Speaker 3: twenty two, you put together a pretty compelling story of
• 9:35
  Speaker 3: American family struggling, which is all is especially concerning because
• 9:40
  Speaker 3: it's happening in a time with four point three percent unemployment.
• 9:43
  Speaker 3: You imagine where that goes if we're sitting at five
• 9:46
  Speaker 3: percent unemployment instead, and then you have a really tough
• 9:49
  Speaker 3: series of problems, which is why the FED is so
• 9:51
  Speaker 3: focused on it.
• 9:52
  Speaker 2: Correct exactly. So let's take a quick break here. When
• 9:57
  Speaker 2: we return, I want to touch on what is going
• 10:00
  Speaker 2: on in the housing market as mortgage rates have come down,
• 10:05
  Speaker 2: and we also do a little bit of trivia right
• 10:07
  Speaker 2: after this.
• 10:09
  Speaker 1: The Financial Exchange is life on Series XM's Business radio
• 10:12
  Speaker 1: channel one thirty two weekdays from eleven to noon. Get
• 10:15
  Speaker 1: the latest business and financial news from across the country
• 10:19
  Speaker 1: and around the world, and keep up to date on
• 10:21
  Speaker 1: how it might affect your wallet. That's the Financial Exchange
• 10:24
  Speaker 1: weekdays from eleven to noon on Series XM's Business Radio
• 10:28
  Speaker 1: Channel one thirty two. This is the Financial Exchange Radio
• 10:32
  Speaker 1: network text us at six one seven three six two
• 10:35
  Speaker 1: one three eighty five with your comments and questions about
• 10:37
  Speaker 1: today's show and let us know what you think about
• 10:39
  Speaker 1: the stories we are covering. This is the Financial Exchange
• 10:43
  Speaker 1: Radio Network.
• 10:48
  Speaker 4: All right, time for trivia. You're in the Financial Exchange
• 10:51
  Speaker 4: on this day. Back in nineteen seventy seven, the Atari
• 10:55
  Speaker 4: twenty six hundred was released in North America, revolutionizing video
• 11:00
  Speaker 4: game industry. Atari sold thirty million units of the twenty
• 11:05
  Speaker 4: six hundred, which was a record until the Nintendo Entertainment
• 11:10
  Speaker 4: System came onto the scene in the mid nineteen eighties.
• 11:14
  Speaker 4: So our trivia question today is simply, what is the
• 11:18
  Speaker 4: best selling video game system of all time? Once again?
• 11:23
  Speaker 4: What is the best selling video game system of all time?
• 11:28
  Speaker 3: Be the fourth.
• 11:29
  Speaker 4: Person today to text us at six one seven three
• 11:32
  Speaker 4: six to two thirteen eighty five with the correct answer
• 11:35
  Speaker 4: you do want a Financial Exchange Show T shirt?
• 11:38
  Speaker 3: Once again.
• 11:38
  Speaker 4: The fourth correct response to text us to the number
• 11:42
  Speaker 4: six one seven three six to two thirteen eighty five
• 11:45
  Speaker 4: will win that T shirt. C complete contest rules at
• 11:48
  Speaker 4: Financial Exchange Show dot com.
• 11:51
  Speaker 2: Mike, what we've seen in the last several weeks is
• 11:55
  Speaker 2: the national average for a thirty year fixed rate mortgage
• 11:59
  Speaker 2: has gone from you know, throughout most of August hanging
• 12:03
  Speaker 2: out around six point five six point six percent, now
• 12:06
  Speaker 2: down to around six and a quarter percent six point
• 12:09
  Speaker 2: twenty nine is where we currently stand today. And if
• 12:13
  Speaker 2: you go back just a little bit earlier in the summer,
• 12:16
  Speaker 2: you know, mortgage rates were kicking around, you know, anywhere
• 12:19
  Speaker 2: in the six seven to five range for much of
• 12:21
  Speaker 2: June July, and so you got you know, anywhere depending
• 12:24
  Speaker 2: on when you were looking, from a quarter percent to
• 12:26
  Speaker 2: a half percent improvement in mortgage rates. And so unsurprisingly,
• 12:32
  Speaker 2: what we saw yesterday was the NBA Mortgage Applications Index
• 12:38
  Speaker 2: was up nine point two percent for the week. Most
• 12:40
  Speaker 2: of this uh concentrated in refinance activity, but a jump
• 12:44
  Speaker 2: in purchases as well that we saw, and so I
• 12:49
  Speaker 2: think that when you look at this, it clearly is
• 12:52
  Speaker 2: having some impact on the margins here. The question is
• 12:56
  Speaker 2: is it big enough and where are those you know,
• 12:59
  Speaker 2: marginal sales and applications taking place, simply because we are
• 13:03
  Speaker 2: in an environment where home prices have been sliding over
• 13:07
  Speaker 2: the course of the summer, and does this do.
• 13:09
  Speaker 3: Enough to stem the tide?
• 13:10
  Speaker 2: There The other question for the you know, to continue
• 13:14
  Speaker 2: this incredibly long run on sentence is one of the
• 13:18
  Speaker 2: things we've seen in the last couple of weeks has
• 13:22
  Speaker 2: been a bunch of sellers pulling properties off market because
• 13:27
  Speaker 2: they can't get the prices that they want, rather than
• 13:29
  Speaker 2: moving through with price cuts. Do lower rates draw some
• 13:32
  Speaker 2: of that inventory back out, and does that extra inventory
• 13:35
  Speaker 2: then put more downward pressure on prices as it.
• 13:38
  Speaker 3: Returns to the market. Yeah, all interesting questions. I mean,
• 13:41
  Speaker 3: the refinance activity is going to be real, and I
• 13:45
  Speaker 3: believe that will trend upwards.
• 13:46
  Speaker 2: And it's good, it's great for the economy.
• 13:48
  Speaker 3: It's it's good for the economy. It's not. It's not
• 13:52
  Speaker 3: a purchase, right, Let's separate the two. Like, yes, it
• 13:56
  Speaker 3: frees up some cash flow for the homeowner. They can
• 14:00
  Speaker 3: can spend some of that discretionary income elsewhere. But obviously,
• 14:02
  Speaker 3: when you talk about somebody buying a new condo in Florida,
• 14:06
  Speaker 3: the amount of economic activity that occurs from something like
• 14:09
  Speaker 3: that compared to the refi are very different, and the
• 14:14
  Speaker 3: not a problem. But the problem with the timing here
• 14:16
  Speaker 3: really is we're heading into a very short housing season here. Basically,
• 14:22
  Speaker 3: if you don't have your home sold by Thanksgiving, then
• 14:25
  Speaker 3: it ain't gonna sell until next spring in a lot
• 14:27
  Speaker 3: of cases, and so you know, do we have time
• 14:30
  Speaker 3: to see any sort of uptick in sales new buyers
• 14:33
  Speaker 3: re entering the market with these mortgage rates. It is
• 14:36
  Speaker 3: a pretty serious drop in rates here, and you know,
• 14:39
  Speaker 3: increases buying power. But will it stick around until next spring?
• 14:44
  Speaker 3: That's if we're going to see an uptick in activity,
• 14:46
  Speaker 3: That's when I would expect it to come.
• 14:48
  Speaker 2: Yeah, So it's I think that ultimately it's can rates
• 14:54
  Speaker 2: stay in this range or can they get back to
• 14:58
  Speaker 2: this range you know, five six months from now right right?
• 15:01
  Speaker 2: Like that's that it doesn't really matter a ton If
• 15:05
  Speaker 2: interest rates are low Christmas week, no one buys a house,
• 15:11
  Speaker 2: then you know, it's like the volume of sales is
• 15:15
  Speaker 2: less than half of what it is during the peak
• 15:17
  Speaker 2: spring period. So can you get rates in this range
• 15:24
  Speaker 2: somewhere in you know, starting Super Bowl first week in February,
• 15:28
  Speaker 2: get them in this range first week in February through
• 15:31
  Speaker 2: July fourth, You got the potential to cook a little bit.
• 15:35
  Speaker 2: There still is a lot of inventory that needs to
• 15:37
  Speaker 2: burn off, and there could be more that comes on
• 15:39
  Speaker 2: next year as well. So these are things that you know,
• 15:43
  Speaker 2: just just that I think about as we look at
• 15:45
  Speaker 2: where the housing market could be. But lower rates obviously
• 15:49
  Speaker 2: going to provide some support to home prices and so
• 15:52
  Speaker 2: potentially good news for sellers and buyers to being able
• 15:55
  Speaker 2: to match up a little bit more easily. Then yeah, yeah,
• 15:59
  Speaker 2: let's see we want to talk about reverse stock splits,
• 16:02
  Speaker 2: not particularly do you, No, let's skip that one. Do
• 16:06
  Speaker 2: We want to think about how many people think retirement
• 16:08
  Speaker 2: will take a miracle.
• 16:11
  Speaker 3: Fewer apparently think that will take a marri miracle. So
• 16:16
  Speaker 3: is this the least surprising story of twenty twenty five? Hey,
• 16:18
  Speaker 3: stock market's an all time high, Therefore fewer people think
• 16:21
  Speaker 3: they're going to be devastated in retirement.
• 16:23
  Speaker 2: Yes, stocks have done north of twenty percent the last
• 16:26
  Speaker 2: two years and more than you know, north of ten
• 16:29
  Speaker 2: percent so far this year, and so yeah, it's not
• 16:34
  Speaker 2: surprising that if you have a few good years of returns,
• 16:37
  Speaker 2: people are gonna feel more optimistic about their ability to retire.
• 16:41
  Speaker 3: That said, the interesting thing that you mentioned earlier, Chuck,
• 16:44
  Speaker 3: during the last segment on the labor market that what
• 16:47
  Speaker 3: did you say, fifty five to sixty four cohort in
• 16:49
  Speaker 3: terms of their incomes moving downwards. Yeah, that's well, one
• 16:54
  Speaker 3: something that I think everyone has seen and experienced, right,
• 16:58
  Speaker 3: how many people know somebody, a family, men member, a
• 17:00
  Speaker 3: friend who has lost their job at that stage of
• 17:04
  Speaker 3: the game, and I had had a very difficult time
• 17:06
  Speaker 3: finding new employment because of agism like that. That is
• 17:11
  Speaker 3: something that I see very very frequently, So not entirely surprising,
• 17:17
  Speaker 3: but I guess effect it would certainly affect my comfortability
• 17:22
  Speaker 3: with retirement going well, if I lost my job at
• 17:24
  Speaker 3: fifty seven years old and had been planning on several
• 17:27
  Speaker 3: more years of employment.
• 17:28
  Speaker 2: Sure, especially because it's two sided coin there. It's you
• 17:32
  Speaker 2: lose the income, but you also have more expenses because
• 17:34
  Speaker 2: now you've got to cover things like health insurance.
• 17:36
  Speaker 3: And stuff like that while you're out of work.
• 17:38
  Speaker 2: So it's yeah, these are some of the things that
• 17:41
  Speaker 2: are challenging, you know, kind of as you look at
• 17:46
  Speaker 2: at that question, there other things, just other pieces from
• 17:49
  Speaker 2: this survey from the Texas Americans overall expect to retire
• 17:53
  Speaker 2: at sixty four. Was there a survey that we covered
• 17:55
  Speaker 2: a couple of weeks ago that said Americans thought they
• 17:57
  Speaker 2: could retire at sixty two or am I making that up?
• 18:00
  Speaker 3: I think the survey was that most said they wanted
• 18:04
  Speaker 3: to retire at sixty two, not that they thought they
• 18:06
  Speaker 3: would be able to financially retire at sixty two. Got it.
• 18:10
  Speaker 2: Baby boomers who have not yet retired but plan to
• 18:13
  Speaker 2: do so at seventy. I'm just looking at the demo
• 18:18
  Speaker 2: for baby boomers and the oldest ones I'm sorry, the
• 18:22
  Speaker 2: youngest ones I believe go through nineteen sixty four, which
• 18:26
  Speaker 2: means they're sixty one right now. And so basically the
• 18:31
  Speaker 2: ones that are left or you know, the average age
• 18:33
  Speaker 2: is probably sixty five, sixty six, you know below, they're
• 18:36
  Speaker 2: not retired. And so yeah, they're basically saying like, yeah,
• 18:40
  Speaker 2: three four more years on average. Kind of gets you,
• 18:43
  Speaker 2: you know, into that range that that clicks, and that
• 18:45
  Speaker 2: kind of meshes with what we're seeing. Overall, all generations
• 18:49
  Speaker 2: expect their retirement to last an average of twenty two years.
• 18:53
  Speaker 2: So retire at sixty four, lived to eighty six. Life
• 18:57
  Speaker 2: expectancies aren't quite that good, No, they are not. Even
• 19:01
  Speaker 2: though I wonder what life expectancy at age sixty four is.
• 19:07
  Speaker 2: I'm pulling it up right now because remember it changes.
• 19:11
  Speaker 3: In the US.
• 19:12
  Speaker 2: It looks like men can live on average eighteen point
• 19:15
  Speaker 2: two more years women twenty point seven, So twenty two
• 19:19
  Speaker 2: is not too far off. Actually, yeah, that's not crazy
• 19:22
  Speaker 2: when you look at it. Just take a quick break.
• 19:24
  Speaker 2: When we return, we've got the trivia answer, We've got
• 19:30
  Speaker 2: Wall Street Watch, and we're talking bond yields.
• 19:40
  Speaker 1: Bringing the latest financial news straight to your radio every day.
• 19:44
  Speaker 1: It's the Financial Exchange on the Financial Exchange Radio Network.
• 19:50
  Speaker 1: Time now for Wall Street Watch, a complete look and
• 19:53
  Speaker 1: what's moving market so far today right here on the
• 19:57
  Speaker 1: Financial Exchange Radio Network.
• 20:01
  Speaker 4: Well, markets are in rally mode as Walls Creed digests
• 20:06
  Speaker 4: a key inflation measure posted earlier this morning with a
• 20:08
  Speaker 4: consumer price index increase two point nine percent on an
• 20:12
  Speaker 4: annual basis, in line with expectations, yet hotter than July's
• 20:16
  Speaker 4: gain of two point seven percent. Jobless claims also came
• 20:20
  Speaker 4: in slightly above estimates. At the moment, the Dow is
• 20:26
  Speaker 4: up by one point three percent, or five hundred and
• 20:31
  Speaker 4: ninety two points, SMP five hundred is jumping eight tenths
• 20:35
  Speaker 4: of one percent higher of fifty three points, and the
• 20:37
  Speaker 4: Nasdaq is up seven tenths of one percent to one
• 20:40
  Speaker 4: hundred and fifty points higher. Russell two thousand is also
• 20:43
  Speaker 4: up one point three percent. Ten year Treasure reeled down
• 20:46
  Speaker 4: one basis point and is now at four point zero
• 20:49
  Speaker 4: one seven percent. In crude oil down nearly two percent,
• 20:52
  Speaker 4: lower training as sixty two dollars in fifty five cents
• 20:56
  Speaker 4: a barrel, well after its best day since nineteen ninety
• 20:59
  Speaker 4: two on the heels of its optimistic AI revenue projections.
• 21:02
  Speaker 4: Oracle shares are slightly retreating from yesterday's thirty six percent surge,
• 21:07
  Speaker 4: down just over two percent today. Separately, Wall Street Journal
• 21:11
  Speaker 4: reported is struck a three hundred billion dollar cloud deal
• 21:14
  Speaker 4: with open Ai. Meanwhile, recent memestock open Door is now
• 21:18
  Speaker 4: soaring sixty four percent after the online housing platform named
• 21:22
  Speaker 4: a top Shopify executive as its next CEO. Elsewhere after
• 21:27
  Speaker 4: its three percent pullback yesterday following its underwhelming product event.
• 21:31
  Speaker 4: Apple shares are up about eight tenths of one percent
• 21:35
  Speaker 4: today after a successful IPO yesterday where shares jumped fourteen
• 21:40
  Speaker 4: percent in its debut. Shares in buy now, pay later
• 21:43
  Speaker 4: platform Klarna are now down about half a percent today.
• 21:48
  Speaker 4: Kroger up about two percent after the grocery store chain
• 21:51
  Speaker 4: posted mixed quarterly results where it beat earnings expectations but
• 21:55
  Speaker 4: fell short of revenue estimates and Chewy up two percent
• 21:58
  Speaker 4: today following its sixteen percent plunge yesterday after the online
• 22:03
  Speaker 4: pet products retailer reported a steep year over year drop
• 22:07
  Speaker 4: in earnings. Deutsche Bank, however, upgraded the stock, saying the
• 22:11
  Speaker 4: company continues to drive meaningful industry share gains and season
• 22:15
  Speaker 4: acceleration in revenue growth next year. I'm Tucker Silva and
• 22:19
  Speaker 4: that is Wall Street Watch. And in the previous segment,
• 22:21
  Speaker 4: we asked you the trivia question, what is the best
• 22:24
  Speaker 4: selling video game system of all time? That would be
• 22:27
  Speaker 4: PlayStation two. Sony sold over one hundred and sixty million
• 22:32
  Speaker 4: PS twos, a record that stands twenty five years later.
• 22:36
  Speaker 4: Mark from Haveral Mass is our winner today, taking home
• 22:40
  Speaker 4: a Financial Exchange Show T shirt. Congrats to Mark, and
• 22:43
  Speaker 4: we played trivia every day here on the Financial Exchange.
• 22:46
  Speaker 4: See complete contest rules at Financial Exchange Show dot com.
• 22:49
  Speaker 3: I had to look up what that thing looked like.
• 22:51
  Speaker 3: I remember owning one. I remember that. Yeah.
• 22:53
  Speaker 2: I had to go exactly what it looks like and
• 22:55
  Speaker 2: I didn't even own one. Yeah, yeah, Okay, do you
• 22:58
  Speaker 2: know what the best selling game for the PS two was?
• 23:01
  Speaker 4: I would have to guess a resident Evil or Metal
• 23:06
  Speaker 4: Gift Solid something like that.
• 23:07
  Speaker 3: Mental Gear Solid two is number four one of the
• 23:11
  Speaker 3: Grand theft Autos correct any idea which one? Vice? City No?
• 23:16
  Speaker 2: Three three four San Andreas, San Andreas, San Andres seventeen
• 23:21
  Speaker 2: point three three million units sold of that for the
• 23:24
  Speaker 2: PS two. The next two are going to surprise you,
• 23:27
  Speaker 2: quite honestly, just because this isn't the world we live
• 23:30
  Speaker 2: in anymore. The next two biggest selling games for the
• 23:35
  Speaker 2: PS two were Grand Tarismo three and four.
• 23:38
  Speaker 4: Oh those are sneaky big for Sony.
• 23:40
  Speaker 3: Yeah they were.
• 23:41
  Speaker 2: But when's the last time a racing game has been
• 23:43
  Speaker 2: that big?
• 23:44
  Speaker 3: Yeah?
• 23:44
  Speaker 2: Like it feels like it's it's been a while, right, Yeah,
• 23:48
  Speaker 2: so that's beyond interesting.
• 23:50
  Speaker 3: We're all a decade removed from the gaming systems lifestyle,
• 23:54
  Speaker 3: so I don't know what's cool. I miss it dearly.
• 24:00
  Speaker 2: It might be nice, honestly, the last the last gaming
• 24:04
  Speaker 2: console I bought was in college, So like we're talking
• 24:06
  Speaker 2: like twenty five years. Yeah, you know, it's it's it's
• 24:09
  Speaker 2: been a while. Yeah, but what are you gonna do? Yeah,
• 24:12
  Speaker 2: time March is on quarter century. You mean, don't say that.
• 24:17
  Speaker 2: I like measuring things that way. Don't say that let's
• 24:20
  Speaker 2: talk a little bit about this piece from Barons. Bond
• 24:23
  Speaker 2: yields are falling where retirees can still find five percent yields,
• 24:26
  Speaker 2: And then it's got a picture of a suitcase with
• 24:28
  Speaker 2: a whole bunch of international stickers on at Michael, So.
• 24:32
  Speaker 3: Are they saying buy Brazilian bonds? To do that? Carry
• 24:36
  Speaker 3: cash into suitcase?
• 24:38
  Speaker 2: I don't like. What what does one do when you
• 24:41
  Speaker 2: can't find five percent yields anymore?
• 24:43
  Speaker 3: Yeah? Well, I'll tell you historically what people do, and
• 24:50
  Speaker 3: sometimes to somewhat disastrous results, is they tend to go
• 24:54
  Speaker 3: down the credit scale when searching for higher yields in
• 24:58
  Speaker 3: a lower interest rate environment. For a lot of the
• 25:00
  Speaker 3: twenty tens, I haven't seen as much of it recently,
• 25:04
  Speaker 3: but I distinctly remember meeting with somebody, don't remember exactly
• 25:09
  Speaker 3: what year, but somewhere in the twenty tens, and they
• 25:12
  Speaker 3: were kind of unaware that the entirety of their portfolio
• 25:15
  Speaker 3: was invested in junk rated individual bonds and what sort
• 25:20
  Speaker 3: of risks those actually represented to them. But that is
• 25:24
  Speaker 3: very often times when you see narrowing spreads and the
• 25:28
  Speaker 3: inability to go get that four or five percent CD anymore.
• 25:32
  Speaker 3: A lot of folks do start searching around in terms
• 25:35
  Speaker 3: of what those alternatives are, and very often, at least
• 25:37
  Speaker 3: in my experience, owning things without fully understanding what it
• 25:42
  Speaker 3: is that they are owning.
• 25:43
  Speaker 2: Yeah, even things that might seem you know, stable. You
• 25:47
  Speaker 2: might be like, oh, like I found a bond for
• 25:50
  Speaker 2: my local utility company, but you don't realize that the
• 25:54
  Speaker 2: covenants have it being tied to you know, a certain
• 25:56
  Speaker 2: plant being open and that plant is in the process
• 25:59
  Speaker 2: of closing, or.
• 26:00
  Speaker 3: Very frequently you know those same bonds being callable by
• 26:05
  Speaker 3: the company or the municipality or the government agency if
• 26:08
  Speaker 3: interest rates moved down, and that there's a lot of
• 26:10
  Speaker 3: that that's happened recently too. You go get this six
• 26:13
  Speaker 3: percent bond and then three months later they call it
• 26:15
  Speaker 3: back from you, and you're in a pretty rough spot.
• 26:19
  Speaker 3: The more complicated stuff that I see, though, Chuck, like
• 26:23
  Speaker 3: what I get worried about. They've covered how there are
• 26:25
  Speaker 3: now more ETFs than individual stocks out there. There are many, many,
• 26:30
  Speaker 3: many different types of funds that are purely dedicated to
• 26:34
  Speaker 3: generating a very high not necessarily interest rate, but dividend
• 26:39
  Speaker 3: or interest rate, and they oftentimes employ very complex strategies
• 26:45
  Speaker 3: sometimes using leverage and options that I hate to say,
• 26:50
  Speaker 3: you have to do your homework and actually read the
• 26:53
  Speaker 3: disclosure packets that they send on these things. But you
• 26:56
  Speaker 3: do have to do that if you're going to try
• 26:58
  Speaker 3: and search around for this type of thing. So yeah,
• 27:01
  Speaker 3: just word of warning. If we do see rates come
• 27:05
  Speaker 3: down and people start shopping around for those other types
• 27:07
  Speaker 3: of things, they are complicated.
• 27:11
  Speaker 4: Hey, this fall, why just watch the leaves change when
• 27:14
  Speaker 4: you could be watching the sunset over turquoise waters. Well,
• 27:18
  Speaker 4: the US Virgin Islands are your perfect fall escape. Set
• 27:21
  Speaker 4: sail on the sparkling blue sea, snorkel colorful reefs, kayak
• 27:26
  Speaker 4: through calm lagoons, or try to blain the Big One
• 27:28
  Speaker 4: with world class sport fishing. Then explore the Charlotte Morley,
• 27:32
  Speaker 4: the capital of Saint Thomas, with its historic streets and
• 27:35
  Speaker 4: duty free shopping, ferry over to Saint John's Virgin Islands
• 27:38
  Speaker 4: National Park for hiking and secluded beaches, and finally experience
• 27:43
  Speaker 4: the culture, festivals and rum of Saint Croix. Three incredible islands,
• 27:47
  Speaker 4: countless experiences and something for everyone to enjoy. With easy
• 27:52
  Speaker 4: travel from New England, no passport required for US citizens
• 27:55
  Speaker 4: and no money to exchange. Paradise is closer than you think,
• 27:59
  Speaker 4: so why way, this can be the season you fall
• 28:02
  Speaker 4: naturally in rhythm with the heartbeat of the islands in
• 28:06
  Speaker 4: America's Caribbean, the US Virgin Islands playing your getaway now
• 28:10
  Speaker 4: at visit USVII dot com. That's visit USVI dot com, Mike.
• 28:15
  Speaker 2: We also got a little bit of breaking news. The
• 28:19
  Speaker 2: FTC announced a probe into OpenAI, alphabet, Meta Xai, and
• 28:27
  Speaker 2: Snap to understand how their AI chatbots potentially negatively affect
• 28:32
  Speaker 2: children and teenagers. This comes on the back of a
• 28:34
  Speaker 2: couple of stories that we've covered about the lax controls
• 28:37
  Speaker 2: and rules for what kind of content AI chatbots can
• 28:42
  Speaker 2: provide to children, and so this is something that I think,
• 28:49
  Speaker 2: quite honestly is it's tough to say long overdue, because
• 28:52
  Speaker 2: like these platforms haven't been around for that long, but
• 28:55
  Speaker 2: I think it is good to see the FTC taking
• 28:58
  Speaker 2: an interest in Gee, you know, meta chatbots be having
• 29:03
  Speaker 2: sexually explicit conversations with thirteen year olds. No, they shouldn't,
• 29:07
  Speaker 2: and maybe we should look into this al.
• 29:09
  Speaker 3: Yeah, it seems like one that we can universally agree upon.
• 29:11
  Speaker 3: There Chuck to me. This though, does come back to like,
• 29:14
  Speaker 3: I would very much welcome some rules and regulations for
• 29:18
  Speaker 3: AI and how it interacts with children. To me, this
• 29:23
  Speaker 3: all falls into one big question which goes back to
• 29:27
  Speaker 3: the same What is the regulation that Facebook, Google, all
• 29:31
  Speaker 3: these companies have relied upon in terms of protecting themselves
• 29:35
  Speaker 3: from lawsuits. It's do you have any idea what I'm
• 29:40
  Speaker 3: referring to the it's the piece that basically provides them
• 29:43
  Speaker 3: indemnity from somebody posts Section two thirty two. Yeah, Section
• 29:46
  Speaker 3: two thirty two, which effectively makes them not responsible for me.
• 29:50
  Speaker 3: Realize you were looking for a legislation.
• 29:51
  Speaker 2: I thought you were just gonna say, like, oh, they're
• 29:53
  Speaker 2: big and they throw their weight around.
• 29:54
  Speaker 3: Now the section two thirty two specifically, I'm curious does
• 29:58
  Speaker 3: that apply to AI?
• 29:59
  Speaker 2: Actually thirty two that's a section related to tariffs. Hang on,
• 30:03
  Speaker 2: it's it's something. I mean, I'll keep talking, I'll find it.
• 30:06
  Speaker 2: There's a lot of sections out there.
• 30:08
  Speaker 3: So effectively, what it provides, though, is if somebody posts
• 30:11
  Speaker 3: something vile and dangerous on Facebook, Facebook's not responsible for
• 30:16
  Speaker 3: policing it. They oftentimes do because they want to not
• 30:20
  Speaker 3: freak people out, and you know, make section two thirty
• 30:22
  Speaker 3: section thirty two. Thank you, but they're not legally liable
• 30:26
  Speaker 3: for it. My question is does the same thing apply
• 30:29
  Speaker 3: to an AI chatbot that you create. Uh, the answer
• 30:32
  Speaker 3: should be no, it should be, but they're certainly behaving
• 30:36
  Speaker 3: as though it does.
• 30:37
  Speaker 2: And if it isn't, no, then the law needs to
• 30:39
  Speaker 2: be amended because like someone created, you can't just be like, oh,
• 30:44
  Speaker 2: like it's it's this chatbot.
• 30:46
  Speaker 3: Well who built the chatbot? Well, we did. Who hosts
• 30:48
  Speaker 3: the chatbot? We did? Then who's responsible? Not us? Yeah?
• 30:51
  Speaker 3: That that is my question. And they will make the
• 30:53
  Speaker 3: argument that, well, the content was created by the user.
• 30:58
  Speaker 3: We just created the device that they can use to
• 31:00
  Speaker 3: create the content. It's no different than somebody. But that
• 31:03
  Speaker 3: to me is an incredibly important important question to answer
• 31:06
  Speaker 3: it and I would agree with you if if it
• 31:08
  Speaker 3: is not adequate to find them liable for this sort
• 31:10
  Speaker 3: of thing, that it needs to be changed because this
• 31:12
  Speaker 3: is not the same as Facebook's, you know, lack of
• 31:17
  Speaker 3: liability for something else.
• 31:19
  Speaker 2: Just take a quick break here. When we return, we'll
• 31:21
  Speaker 2: do a little bit of stack root left.
• 31:24
  Speaker 1: The Financial Exchange is now available every day from eleven
• 31:27
  Speaker 1: to noon. Non serious XMS Business Radio channel one thirty two.
• 31:30
  Speaker 1: Stay informed about the latest from Wall Street, fiscal policy,
• 31:34
  Speaker 1: and breaking business news every day. The Financial Exchange is
• 31:37
  Speaker 1: life on Serious XMS Business Radio Channel one thirty two.
• 31:41
  Speaker 1: This is the Financial Exchange Radio Network. The Financial Exchange
• 31:46
  Speaker 1: streams live on YouTube. Subscribe to our page and stay
• 31:49
  Speaker 1: up to date on breaking business news all morning. Long
• 31:52
  Speaker 1: Face is the Financial Exchange Radio Network.
• 31:59
  Speaker 4: This year's d V five k's less than three months
• 32:02
  Speaker 4: away and slaughts are filling up fast, so if you'd
• 32:05
  Speaker 4: like to participate, now's the time to register. The race
• 32:09
  Speaker 4: is Saturday, November eighth, that Castle Island and you can
• 32:12
  Speaker 4: visit DAV five k dot Boston to sign up or
• 32:16
  Speaker 4: join our team Team TFE. Your support helps fund free
• 32:20
  Speaker 4: rides to medical appointments for veterans in the nation's first
• 32:24
  Speaker 4: dav ledhousing initiative, providing homes for single veterans and veteran families.
• 32:29
  Speaker 4: Go to DAV five k dot Boston and register today.
• 32:33
  Speaker 3: Mike, what do you got for me for stack Roulette
• 32:36
  Speaker 3: online travel platforms? Getting afraid of artificial intelligence? And this
• 32:40
  Speaker 3: one doesn't make a ton of sense to me, But
• 32:42
  Speaker 3: I think maybe I use these platforms differently than other
• 32:45
  Speaker 3: people do. Here's the concern Booking, dot Com, Expeedy, Kayak,
• 32:51
  Speaker 3: all of these companies that are probably all owned by
• 32:53
  Speaker 3: the same company, I'm guessing, but they all rely upon
• 32:57
  Speaker 3: you searching on their platforms in order to generate effectively
• 33:02
  Speaker 3: commissions from the airlines and hotel companies when you book
• 33:06
  Speaker 3: through their sites. Sure, if you can quickly tap into
• 33:10
  Speaker 3: chat GPT that you want flights on these specific dates
• 33:13
  Speaker 3: and a hotel on these specific dates as well, and
• 33:16
  Speaker 3: it pulls it all up and makes it easy for
• 33:19
  Speaker 3: you to click through and book directly, then they're worried
• 33:21
  Speaker 3: about their business model. I don't know that that's how
• 33:25
  Speaker 3: younger generations book their traveled though. I mean for me personally,
• 33:28
  Speaker 3: I don't know how you do it, Chuck. I will
• 33:31
  Speaker 3: go search the flight on something like Google Flights, and
• 33:34
  Speaker 3: then I will oftentimes try to book it on something
• 33:37
  Speaker 3: like Expedia because they provide rewards points that I can
• 33:41
  Speaker 3: then use on other things. But otherwise I don't use
• 33:45
  Speaker 3: any of these third party places to begin with as
• 33:49
  Speaker 3: a starting point for my search. I suppose on hotels
• 33:51
  Speaker 3: it's a little bit different. I do use it there,
• 33:55
  Speaker 3: but I'm just not I guess I'm not convinced that
• 33:58
  Speaker 3: AI agents are agen you in threat to this business
• 34:01
  Speaker 3: model entirely, but maybe everybody else is using it differently
• 34:03
  Speaker 3: than me.
• 34:04
  Speaker 2: No, And I guess even on the agent side of things,
• 34:10
  Speaker 2: would you really enable it to go and say yes,
• 34:13
  Speaker 2: I just wanted to like go and book stuff or
• 34:16
  Speaker 2: does it kind of do the legwork that you did,
• 34:17
  Speaker 2: which is, hey, find me, you know, selections because I
• 34:21
  Speaker 2: want to do X, Y and Z and fly to
• 34:22
  Speaker 2: this place and stay you know for this many days
• 34:25
  Speaker 2: in this location, and then you go and you book
• 34:28
  Speaker 2: the stuff yourself.
• 34:29
  Speaker 3: Anyways, right, But I guess here here's where it does
• 34:34
  Speaker 3: dramatically reshape their businesses. If it does point you directly
• 34:38
  Speaker 3: to the airline and directly to the hotel instead, then yeah,
• 34:42
  Speaker 3: those business models are those business models are out and they're
• 34:45
  Speaker 3: gonna have to find something else that makes it compelling
• 34:46
  Speaker 3: for me. Again, I have a credit card through one
• 34:49
  Speaker 3: of these companies. I get rewards points. I what's the
• 34:52
  Speaker 3: credit card number? Yeah, hold on, I'll give me my
• 34:54
  Speaker 3: Social two six.
• 34:55
  Speaker 4: When does it expire.
• 34:58
  Speaker 3: On the back here' zip code? Please, Mike? But yeah,
• 35:02
  Speaker 3: I mean if it does cut through that, then just
• 35:05
  Speaker 3: like search it is a genuine threat to the business.
• 35:08
  Speaker 3: I'm just I don't know, I'm a little bit uncertain
• 35:11
  Speaker 3: that that's going to be the case. And by the way,
• 35:13
  Speaker 3: using having used AI to plan parts of my most
• 35:17
  Speaker 3: recent vacation, made a lot of mistakes, especially when trying
• 35:21
  Speaker 3: to suggest hiking ideas. Where did it want to hike? Well,
• 35:26
  Speaker 3: we were doing hikes, but it just kind of invented
• 35:30
  Speaker 3: trails that didn't really exist, Like, oh, you can get
• 35:32
  Speaker 3: from here to here, but if you actually go, you know,
• 35:35
  Speaker 3: take a look at that, like, oh, yeah, they just
• 35:37
  Speaker 3: want me to ascend over a mountain that doesn't have
• 35:40
  Speaker 3: a trail, So that's probably not going to work terribly.
• 35:42
  Speaker 2: Well, you didn't bring your crampons and ice picks.
• 35:45
  Speaker 3: No, we did not pack our ice picks. Sorry to
• 35:49
  Speaker 3: hear that. Yeah, what kind of vacation was this? Yeah, yeah,
• 35:52
  Speaker 3: slacker vacation.
• 35:54
  Speaker 2: Seriously, I want to talk about SEPTA good because if
• 36:00
  Speaker 2: you're not familiar with them.
• 36:01
  Speaker 3: It's not actually related.
• 36:03
  Speaker 2: Doesn't step to sound like it should be like the
• 36:05
  Speaker 2: sewer agency for a city.
• 36:07
  Speaker 3: Yeah.
• 36:09
  Speaker 2: In fact, it is the Southern Pennsylvania Transportation Authority, the
• 36:13
  Speaker 2: fifth largest transit agency in the US.
• 36:15
  Speaker 3: It is basically.
• 36:16
  Speaker 2: Phillis version of you know whatever your city runs for buses, trains,
• 36:23
  Speaker 2: and subways. And apparently they had a funding crunch and
• 36:26
  Speaker 2: so they cut one of the lines that goes to
• 36:28
  Speaker 2: the Eagles stadium. FanDuel stepped in and said, Hey, we're
• 36:31
  Speaker 2: gonna pay eighty thousand dollars to restore service on game
• 36:36
  Speaker 2: days so Eagles fans can get to and from the
• 36:38
  Speaker 2: stadium using public.
• 36:39
  Speaker 3: Transit seems like some cheap advertising. It sure does.
• 36:45
  Speaker 2: And I'm trying to think of the different ways that
• 36:51
  Speaker 2: this is problematic.
• 36:54
  Speaker 3: Oh, this is to me the least problematic thing that
• 36:56
  Speaker 3: gambling companies are doing these days.
• 36:58
  Speaker 2: No, it is, but it's like, it's the idea that, hey,
• 37:01
  Speaker 2: we've so devalued public transportation now that the only way
• 37:04
  Speaker 2: to run the lines we want are for a gambling
• 37:09
  Speaker 2: company that is sucking money away from the people on
• 37:13
  Speaker 2: that train on a daily basis that they come in
• 37:17
  Speaker 2: and they fund the thing.
• 37:19
  Speaker 3: So I know that this is a different scale, chuck,
• 37:20
  Speaker 3: But that's been the premise of the Massachusetts state lottery
• 37:24
  Speaker 3: and every other state lottery for forty some odd years now,
• 37:28
  Speaker 3: and this is just and we can talk about the
• 37:31
  Speaker 3: problems that you have with those too. Yeah. I mean
• 37:34
  Speaker 3: Massachusetts has the worst or the highest average lottery money
• 37:42
  Speaker 3: spent for any state in the country. We got to
• 37:44
  Speaker 3: spend money to make money, which is problem. Not what
• 37:47
  Speaker 3: that means, but yeah, I just see this as a
• 37:51
  Speaker 3: continuation of that. But I would agree with you that
• 37:54
  Speaker 3: it is a much bigger problem than it was thirty
• 37:56
  Speaker 3: years ago. You know.
• 37:56
  Speaker 2: And I'm not saying that you need to have like
• 37:58
  Speaker 2: the only like advertise think you should allow our sponsorships
• 38:01
  Speaker 2: to be like wholesome, like with all of our things.
• 38:03
  Speaker 2: But it's just like, man, the only reason this line
• 38:06
  Speaker 2: is running is because we allow for you to place
• 38:09
  Speaker 2: a bunch of bets on your phone. Now, yep, I
• 38:13
  Speaker 2: felt better about things in my life. Let's take a
• 38:16
  Speaker 2: quick break here for the entire rest of the day.
• 38:18
  Speaker 2: Back at tomorrow to finish up the week.