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Apple Takes Aim at OpenAI as AI Risks Grow · The Financial Exchange Show

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Speaker 2: So that is what we have moving in markets today.
2:53
Speaker 2: And it's a busy week with a bunch of earnings
2:55
Speaker 2: and a bunch of economic data on tap, and so
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Speaker 2: pretty exciting that we've now gotten through the summer doldrums yea,
3:03
Speaker 2: and back into earning season and things like that, and
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Speaker 2: uh kind of the uh. I know it sounds weird
3:11
Speaker 2: to say this in mid July, but it's the home
3:13
Speaker 2: stretch of the summer, it is, I hear you, But
3:18
Speaker 2: don't it is, you know, like it's summer's over. Man.
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Speaker 3: My kids are already counting, you know, asking how many
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Speaker 3: weeks left until they go back to.
3:26
Speaker 2: School In the southeast, it's four I think actually three.
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Speaker 3: That's actually why this came up, because they were bragging
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Speaker 3: to their younger cousins who have to go to school
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Speaker 3: in like up mid August, yeah, back in Colorado and.
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Speaker 2: Things like that. So yeah, that's that's where it came up.
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Speaker 2: Let's start then with this piece from the Wall Street Journal.
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Speaker 2: Apple's thermonuclear response to the open AI threat. Uh. First
3:48
Speaker 2: of all, I really doubt that Apple has any nuclear weapons,
3:53
Speaker 2: let alone thermonuclear weapons. I don't believe that they possess
3:57
Speaker 2: any of those. So and if they we've got to
4:01
Speaker 2: invade Apple, yeah, we've we've got to, We've got to
4:05
Speaker 2: take over Cooper Tino, you know. Otherwise the uh, I
4:08
Speaker 2: don't even know.
4:09
Speaker 3: Where the term thermonuclear war other than you know, being
4:13
Speaker 3: an actual term, did come from Steve Jobs after he
4:17
Speaker 3: declared it on Google's Android operating system back in twenty ten,
4:20
Speaker 3: when he called that a stolen product, which it may
4:23
Speaker 3: have been, but has survived and done quite well, especially
4:26
Speaker 3: outside the United States. Since since that announcement by Steve Jobs,
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Speaker 3: I think there are probably experts better in this than
4:36
Speaker 3: I am that would argue that. Yeah, them going after
4:39
Speaker 3: Google and assuming them did in fact slow the development
4:42
Speaker 3: down and may have secured Apple's role as the number
4:46
Speaker 3: one player in the US market. I'm not sure, but
4:49
Speaker 3: I would imagine that's kind of the goal with this too.
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Speaker 3: Who knows what sort of trade secrets may or may
4:53
Speaker 3: not have been stolen from Apple, But if your Apple,
4:57
Speaker 3: you've got a whole bunch of cash, and you've got
4:59
Speaker 3: a very big mote around your product, and you're constantly
5:02
Speaker 3: looking at hey, is there something that could come and
5:05
Speaker 3: disrupt us like we did the BlackBerry some twenty odd
5:08
Speaker 3: years ago.
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Speaker 2: So here's here's the deal, And there's a few different
5:12
Speaker 2: things to untangle here because it's kind of an interesting
5:17
Speaker 2: one to think through. First, Apple is alleging that a
5:23
Speaker 2: senior open ai executive who once was a top Apple's
5:28
Speaker 2: product design team was involved in a months long campaign
5:33
Speaker 2: to steal Apple trade secrets. That's according to the lawsuit
5:38
Speaker 2: that they filed. And so the hardware chief in question
5:44
Speaker 2: is Tang Tan and basically is saying hey, like, not
5:50
Speaker 2: only did he try to bring stuff over to open Ai,
5:53
Speaker 2: but he was also interviewing Apple employees for jobs and saying, hey,
5:59
Speaker 2: bring parts from Apple to your interviews. Uh, so that
6:03
Speaker 2: we can discuss them. So again, I don't know if
6:07
Speaker 2: there's any merit to any of this, like it's you know,
6:10
Speaker 2: I just I don't know. It's gonna have to be
6:12
Speaker 2: figured out in court or in some kind of settlements.
6:15
Speaker 2: But the pieces that are interesting to me are this
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Speaker 2: Number one, Tim Cook is basically done with Apple. Yeah,
6:24
Speaker 2: he's on his way up, he is, Tucker. Do we
6:26
Speaker 2: figure out when his last day was? It's like September.
6:29
Speaker 4: Officially been announced, but I'll look it up.
6:31
Speaker 2: I think it's in September, like somewhere in that ballpark
6:34
Speaker 2: called maybe September August thirty first, August thirty first. There
6:37
Speaker 2: you go. I was off by thirty days.
6:39
Speaker 4: So and who will be taking over?
6:41
Speaker 2: John Turners? I finally, I finally. It's taken me like
6:45
Speaker 2: five months, but I finally got it. It's John Apple
6:48
Speaker 2: is going to be taking over. And so here's the thing.
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Speaker 2: This is kind of a big mess John. This Johnny
6:57
Speaker 2: Appleseed is going to replant the iPhone forests. It's gonna
7:01
Speaker 2: be great. So Tim Cook is done in six weeks.
7:06
Speaker 2: This is kind of a poop poop plotter to leave
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Speaker 2: your successor you like you don't do this unless you're
7:13
Speaker 2: sure you want to move forward with it. Otherwise you
7:17
Speaker 2: just wait six weeks and have John do it. Yeah,
7:20
Speaker 2: so what was the other big thing that he did?
7:23
Speaker 3: Hear he talked about raise prices, And so I do
7:28
Speaker 3: wonder too if he's just trying to get all of
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Speaker 3: the really big, difficult things that he doesn't want to
7:35
Speaker 3: have a new CEO dealing with. It's not like Tim
7:37
Speaker 3: Cook is never going to be in charge of stuff
7:40
Speaker 3: at Apple anymore. He's going to be on the board
7:43
Speaker 3: heading the board. Is that right, chairman of the board
7:45
Speaker 3: when he retires, I don't remember.
7:47
Speaker 2: I don't know.
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Speaker 3: But in neither case, he still has a vested interest
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Speaker 3: in Apple doing well and securing its future.
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Speaker 2: And so you read it as dumping something on the
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Speaker 2: new CEO.
7:58
Speaker 3: I kind of read it as, Hey, I want I
8:01
Speaker 3: don't want to have to dump this on the CEO.
8:03
Speaker 3: I want to get this done and announce it while
8:04
Speaker 3: I'm still here so that I can take the.
8:06
Speaker 2: Flame for it rather than somebody else. Yeah, that's fair.
8:09
Speaker 2: My counter is that Tim's not going to be the
8:12
Speaker 2: one that actually has to deal with the consequences of it, like,
8:14
Speaker 2: not directly as CEO at least it's going to be
8:18
Speaker 2: John who does so I find that a little bit interesting.
8:23
Speaker 2: The other piece is, remember open ai doesn't just have
8:27
Speaker 2: their hardware chief Tank Tan, who's you know, running things
8:30
Speaker 2: on their hardware side. Remember open ai also has who else?
8:36
Speaker 2: From Apple? Johnny Ivey, former lead designer under Steve Jobs,
8:43
Speaker 2: who pretty much posed it maybe a year ago, said hey,
8:47
Speaker 2: we're working on like a new device that we think
8:49
Speaker 2: is going to supplant the phone as like the main
8:53
Speaker 2: device going forward for people in the AI world. So
8:58
Speaker 2: like there's a bit of intrigue on that side as well. Ultimately,
9:03
Speaker 2: the case on this is going to be, you know, hey,
9:06
Speaker 2: what was there actually trade secret theft that happened? And
9:11
Speaker 2: none of us know, Like we weren't there, we didn't
9:13
Speaker 2: work for any of these companies. But I do think
9:17
Speaker 2: that there's just kind of some interesting movement that's happened here.
9:20
Speaker 2: And look again, the fact that Tim Cook's doing this,
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Speaker 2: I can see your point that, yeah, he maybe is
9:26
Speaker 2: trying to do the challenging things so that John Turnas
9:28
Speaker 2: doesn't have to, but it's also going to be a
9:31
Speaker 2: mess that that John Turnis has to clean up. I
9:36
Speaker 2: think if you look at this broadly, Apple at least
9:41
Speaker 2: from a financial perspective, has the resources to absolutely grind
9:46
Speaker 2: open Ai into you know, a puddle if they want to,
9:50
Speaker 2: because open a is not making any money right now,
9:53
Speaker 2: and if this becomes a real question, then open ai
9:56
Speaker 2: potentially loses its ability to raise money, which you know,
10:00
Speaker 2: makes this even more of a life threatening thing for
10:03
Speaker 2: open ai.
10:03
Speaker 3: Right They've already delayed their IPO, which was anticipated potentially
10:07
Speaker 3: as soon as this early fall, to twenty twenty seven.
10:10
Speaker 2: Thanks Elon. I do think that that was entirely intentional
10:13
Speaker 2: by Elon Musk to front run it with SpaceX, to
10:16
Speaker 2: basically put that, you know, to the side and be like, hey, Sam,
10:20
Speaker 2: I don't like.
10:21
Speaker 3: You, but it could be fascinating here right if you,
10:23
Speaker 3: if you have anthropic go public and open ai remain private.
10:29
Speaker 3: It just does call into question the funding mechanism and
10:32
Speaker 3: what the what their real cash flow situation is able
10:34
Speaker 3: to look like in the next twelve months.
10:37
Speaker 2: Maybe I'm reading too much into this. Does it seem
10:42
Speaker 2: like no one really likes Sam Altman, like Elon very
10:46
Speaker 2: publicly has said, I don't. Yeah, now you've got this
10:50
Speaker 2: lawsuit that's happening here, Microsoft is making waves to try
10:54
Speaker 2: to move away from open AI as you know, an
10:57
Speaker 2: exclusive partner. Maybe it's just the same problem. I don't know.
11:02
Speaker 2: Remember he's already been fired as the CEO once yeah,
11:04
Speaker 2: and came back three days later. Yeah. So I don't
11:08
Speaker 2: really know, but I'm kind of getting the vibe that
11:12
Speaker 2: no one really likes the guy.
11:14
Speaker 3: Maybe he's just really bad at navigating the business politics.
11:20
Speaker 2: I'd love to see, you know how, Remember when was
11:22
Speaker 2: it that we were talking about the idea for like
11:25
Speaker 2: tech ceo cage matches a couple of years back, when
11:28
Speaker 2: Zuck was doing like his MMA training. Was it him
11:30
Speaker 2: and Elon? I think it might have been. Yeah, they
11:33
Speaker 2: were talking about doing an MA cage match. That's right.
11:36
Speaker 2: Forget that. I want to see like a decathlon between
11:38
Speaker 2: him and Sam Altman. Like I want him running the hundred,
11:43
Speaker 2: I want them doing the high jump, like the the
11:46
Speaker 2: shot put. Honestly feels a little dangerous for both of them,
11:49
Speaker 2: But let's let's get out there and see what you
11:52
Speaker 2: guys can do.
11:53
Speaker 4: I also did a quick Google search on do people
11:56
Speaker 4: not like Sam Altman and the results are a bunch
11:59
Speaker 4: of four on Reddit saying why do so many people
12:02
Speaker 4: dislike Sam Altman. There's several YouTube videos titled why I
12:06
Speaker 4: Hate Sam Altman, saw I'm Altman? Why Americans say Sam Altman?
12:11
Speaker 2: Can you put it into chat GPT and see what
12:13
Speaker 2: that says. Let's take a quick break and when we
12:17
Speaker 2: come back, Uh, let's see, we'll talk about economists warning
12:22
Speaker 2: of the AI threat.
12:24
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13:37
Speaker 2: Piec. In the New York Times, economists wore a warren
13:40
Speaker 2: of AI threats. I don't know why this is happening now.
13:44
Speaker 2: We feel like this is We've had plenty of economists
13:47
Speaker 2: warning about this for a while, But nor is.
13:50
Speaker 3: The warning of the threat any different from the previous
13:53
Speaker 3: economists to have warned of the threat. It's going to
13:55
Speaker 3: be no, according to them, a massive and rapid changed
14:00
Speaker 3: things such as employment productivity, job displacement, potential changes to
14:06
Speaker 3: living standards. They don't seem to have a real firm
14:10
Speaker 3: grasp on what should be dealt with right now. Presumably
14:15
Speaker 3: they are talking about changes to social safety nets and
14:20
Speaker 3: retraining programs.
14:22
Speaker 2: And guys, I gotta be honestly, we suck at retraining
14:27
Speaker 2: program Yeah, like we do. Like it's not something that
14:33
Speaker 2: federal or state governments are good at because they moved
14:35
Speaker 2: too like you, they moved too slowly. Oh we're going
14:38
Speaker 2: to retrain you for this, Well that's already out of date.
14:40
Speaker 3: I also not that this was a huge government to push,
14:43
Speaker 3: but I think about if there was like a top
14:48
Speaker 3: five careers that you could think of of uh, institutions
14:53
Speaker 3: and companies and individuals pushing college grads to go towards
14:57
Speaker 3: and I'm talking about college grads, not trades, but like
14:59
Speaker 3: college grats to look into and get skills in. I
15:02
Speaker 3: would put coding as one of the top five.
15:05
Speaker 2: There's a reason why learned to code has been a
15:07
Speaker 2: meme for the last twenty years now.
15:09
Speaker 3: And guess what, a bunch of people that did it
15:12
Speaker 3: now suddenly can't find jobs because AI is rapidly replacing it.
15:16
Speaker 3: So I'm not sure that we're even good at identifying
15:17
Speaker 3: which skill set no and should be.
15:20
Speaker 2: Learned in order to retrain yourself. And then the next
15:23
Speaker 2: thing that you hear is, well, I want I've talked
15:26
Speaker 2: with a number of people, Well, they're never going to
15:28
Speaker 2: be able to you know, replace trades, you know people
15:30
Speaker 2: with you know, coding and this and that. And look, granted,
15:33
Speaker 2: I'm not saying that you can today with you know,
15:35
Speaker 2: the robots that are available now. But the thing you
15:38
Speaker 2: got to remember, the robots that are available now are
15:40
Speaker 2: the worst robots that we'll ever have for the rest
15:42
Speaker 2: of our lives. So I'm not sure what some of
15:45
Speaker 2: those professions look like as you get out, you know,
15:47
Speaker 2: ten or fifteen years from now, or even five. So
15:51
Speaker 2: I think the place that I land on this is, hey,
15:57
Speaker 2: let's let's see how this develops. Because just as an example,
16:01
Speaker 2: I saw a piece. I can't remember if it was
16:03
Speaker 2: from the stack or not. I don't think so, I
16:05
Speaker 2: just want to make sure I'm not double covering it.
16:08
Speaker 2: It was a piece. This morning, it was talking about
16:10
Speaker 2: law firms and AI, and law firms have been huge
16:13
Speaker 2: adopters of internal AI tools because it helps them sort
16:18
Speaker 2: through a ton of written material in a very short
16:21
Speaker 2: period of time, as well as it can help to
16:23
Speaker 2: draft material, sometimes catastrophically where it makes up cases and
16:26
Speaker 2: then you know, a judge is like, my dude, what
16:29
Speaker 2: are you doing here? You can't cite a case that
16:31
Speaker 2: doesn't exist. But the other thing that's really interesting is
16:36
Speaker 2: that lawyers now are saying, yes, like this is helping
16:41
Speaker 2: to speed up these processes, but it's also allowing us
16:45
Speaker 2: to then go and seek out more cases because we
16:49
Speaker 2: have the capacity, and so we're not seeing any type
16:54
Speaker 2: of drop off in terms of the actual billable hours
16:57
Speaker 2: for our attorneys because they're simply able to handle more cases,
17:02
Speaker 2: which in the case of lawyers does mean you know,
17:04
Speaker 2: potentially like more claims and stuff that we're dealing with.
17:07
Speaker 2: But I again, I thought that was kind of interesting.
17:10
Speaker 2: It's the idea of, hey, there's always more work to
17:13
Speaker 2: be done, and so I'm just I'm not one hundred
17:18
Speaker 2: percent convinced that AI is going to do what some
17:24
Speaker 2: people are warning about. I recognize it's a possibility, and granted,
17:28
Speaker 2: these people are far better versed I think in many
17:30
Speaker 2: cases on AI than I am, so I at least
17:32
Speaker 2: pay attention when they're talking. But to this point, you
17:38
Speaker 2: can't find any evidence of AI impacting the broad economy
17:44
Speaker 2: beyond like a tenth of a percentage point here and there,
17:48
Speaker 2: and certain statistics maybe.
17:50
Speaker 3: Also take a step back here, Right, the threat that
17:53
Speaker 3: everybody's worried about is the unemployment one.
17:56
Speaker 2: Right, I'm worried about AI killing us, Yeah, sure, but
17:59
Speaker 2: the like that's just me.
18:01
Speaker 3: The base case that I think a lot of people,
18:03
Speaker 3: you know, I think depths they're concerned about is mass unemployment.
18:08
Speaker 3: And I have a lot of skepticism. But let's say
18:11
Speaker 3: we do, as a result of quick innovation in AI
18:15
Speaker 3: result in ten percent or higher unemployment. I admit that
18:18
Speaker 3: our toolbox for dealing with ten percent inflation is not great.
18:22
Speaker 2: Our set of.
18:23
Speaker 3: Tools, as you know, US society and the Federal Reserve
18:27
Speaker 3: and Congress for addressing ten percent unemployment is actually pretty
18:32
Speaker 3: well laid out and documented, and we seem.
18:36
Speaker 2: To be pretty good at it.
18:37
Speaker 3: Like I'm not saying that people wouldn't be harmed in
18:39
Speaker 3: those scenarios, but just over the course of the last
18:43
Speaker 3: thirty years, we've dealt with two occasions where unemployment got
18:48
Speaker 3: close to no I think topped both in both oaight
18:50
Speaker 3: and twenty twenty top to ten percent, and we rolled
18:53
Speaker 3: out a massive set of tools.
18:54
Speaker 2: In order to address that.
18:56
Speaker 3: I agree that some of them went way overboard, but
18:59
Speaker 3: I'm not sure we need to anything new for that.
19:02
Speaker 3: It's hard to say. It depends how it all plays out.
19:04
Speaker 3: If it's inflation and high employment, that's a new problem.
19:08
Speaker 3: But I'm just not sure we need to recreate the wheel.
19:11
Speaker 2: Here here's my seventy percent serious, thirty percent kidding solution
19:17
Speaker 2: for this. We're going to go to break because we
19:20
Speaker 2: have to. And then when we get back, chuck solution
19:23
Speaker 2: to the AI. I'm going to tell you what my
19:25
Speaker 2: solution is to twenty percent AI unemployment.
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Speaker 4: five hundred down a third of one percent, NASDAC down
20:26
Speaker 4: about eight tenths of one percent, RUSS two thousand down
20:28
Speaker 4: about half a percent. Tenure treasreel is up two basis
20:32
Speaker 4: points at four point five to nine percent, and Oil
20:35
Speaker 4: up over four and a half percent, trading at seventy
20:38
Speaker 4: four dollars a barrel after its successful IBO on Friday.
20:42
Speaker 4: Shares in South Korean's ship maker sk Hihnex are volatile
20:45
Speaker 4: today and are currently down by six percent. Korean shares
20:48
Speaker 4: of the company's stock plunge more than fifteen percent, marking
20:52
Speaker 4: its largest one day drop on record. Other chip makers
20:55
Speaker 4: and memory stocks are seeing volatility as investors assess the
20:58
Speaker 4: AI trade. Mike Run, Intel, AMD, and SanDisk are all
21:02
Speaker 4: seeing losses today. Meanwhile, Wall Street Journal report that MGM
21:06
Speaker 4: Resorts has been negotiating a potential deal with Barry Diller's
21:10
Speaker 4: Painple Inc. After the media Mogul offered to buy the
21:13
Speaker 4: casino giant. MGM is up by one percent, and CNBC
21:17
Speaker 4: reporting that a group of state attorneys general is expected
21:21
Speaker 4: to file a lawsuit as soon as today challenging Paramount
21:24
Speaker 4: skuiddance proposed acquisition of Warner Brothers Discovery.
21:29
Speaker 2: Both of those stocks are.
21:30
Speaker 4: Seeing modest gains. I'm Tucker Silva and that is Wall
21:34
Speaker 4: Street Watch.
21:36
Speaker 2: So last segment, we were talking about this letter from
21:39
Speaker 2: two hundred economists basically asking politicians to quote do something
21:46
Speaker 2: as it relates to the potential for high unemployment. That's
21:49
Speaker 2: the AI.
21:50
Speaker 3: The other Cristism I have about this is nobody has
21:53
Speaker 3: really laid out a policy framework for what should be done.
21:55
Speaker 3: Like give me a think tank that tells me, tells
21:58
Speaker 3: lawmakers what they should do, and I'll be happy to
22:00
Speaker 3: criticize this.
22:01
Speaker 2: But yeah, this is this is just like, we have
22:03
Speaker 2: a better pay attention do something. What do you want
22:07
Speaker 2: us to do? So here's my again. Do you remember
22:11
Speaker 2: back in twenty twenty two? I remember the year? Yes, yeah, yeah,
22:17
Speaker 2: might have been good, might have been bad. Twenty twenty
22:19
Speaker 2: two no, very generally bad year all across the board.
22:22
Speaker 3: Yeah, not personally and U and for the US ECONO,
22:27
Speaker 3: if we're being honest, not a great year. Don't want
22:29
Speaker 3: to revisit that one.
22:30
Speaker 2: But twenty twenty two again kind of like thirty percent jokingly,
22:35
Speaker 2: seventy percent serious. I said at the beginning, the feed
22:37
Speaker 2: should just raise interest rates half a percent, and it
22:40
Speaker 2: turned out that that's what they ended up doing over
22:42
Speaker 2: the next eighteen months. I just could have saved him
22:44
Speaker 2: a bunch of time in hassle. Sure, So here is
22:47
Speaker 2: my seventy percent serious thirty percent joking solution to what happens.
22:53
Speaker 2: If AI causes mass unemployment in the period that runs
22:59
Speaker 2: from October through March, everyone in the Northern hemisphere should
23:06
Speaker 2: move to the Southern hemisphere and bartend and waiter. In
23:11
Speaker 2: the period from April to September, everyone in the Southern
23:16
Speaker 2: hemisphere should come to the Northern hemisphere. Huh, and bartend
23:20
Speaker 2: and waiter, And you're no unemployment. You are seventy percent
23:23
Speaker 2: serious about this, I am If we're listen. If AI
23:27
Speaker 2: is gonna do all the work, then all we have
23:29
Speaker 2: to do is make it so that the people who
23:31
Speaker 2: live where the good weather is have all the food
23:33
Speaker 2: and drink that they can have because everything else is
23:36
Speaker 2: taken care of. If AI's really gonna be that transformative,
23:40
Speaker 2: let's just all become bartenders and waiters will sing songs
23:43
Speaker 2: at night. Everyone learns how to play guitar, the ukulele
23:46
Speaker 2: or the mandolin, and we can just that's it. That's
23:49
Speaker 2: how we fix this. I'm entirely not kidding seventy percent, where.
23:57
Speaker 3: One entirely not kidding seventy percent is like sixty percent
24:00
Speaker 3: of the time. It works every time Yes, two birds migrate,
24:03
Speaker 3: why can't we Yeah, we're sounding like we're going back
24:07
Speaker 3: to our Native American nomad roots.
24:09
Speaker 2: Have you ever not, Michael, Michael, there's a reason why
24:13
Speaker 2: we call so many retirees snowbird. They move from south
24:16
Speaker 2: to north and north to south. Why can't we do that?
24:19
Speaker 2: If if we're all going to be out of a job,
24:22
Speaker 2: why don't we just move the whole population every six months?
24:26
Speaker 2: There's just a bunch of flights moving in one direction,
24:29
Speaker 2: and hopefully the earth doesn't tip over when we all
24:31
Speaker 2: move to that part of it.
24:34
Speaker 3: Water and sewer infrastructure is not gonna be ready for it.
24:36
Speaker 3: But yeah, we can make those upgrades.
24:38
Speaker 2: We can. We can think about it.
24:39
Speaker 4: I'm going to stay and have everything to my soul.
24:42
Speaker 2: Finally, that beach is empty. In January, I have all
24:47
Speaker 2: these postery for a serious moment. Here.
24:51
Speaker 3: I want to talk to you about our new guide
24:53
Speaker 3: from the Armstrong Advisory Group for July.
24:56
Speaker 2: It's about talking.
24:57
Speaker 3: To your kids about inheritance and a few reasons. We
25:01
Speaker 3: drafted this one this month. But Chuck, I think you
25:04
Speaker 3: and I have both experienced folks that we know who
25:09
Speaker 3: have passed away and their kids are left picking up
25:13
Speaker 3: the inheritance bag and questioning what was happened, and, in
25:16
Speaker 3: worst case scenarios, suing each other.
25:20
Speaker 2: I've seen cases where basically an entire inheritance has been
25:23
Speaker 2: wasted on legal fees.
25:26
Speaker 3: You may have done a very good job dealing with
25:29
Speaker 3: your estate plan. You may have found the best attorney
25:31
Speaker 3: in the in the country to draft it. You may
25:35
Speaker 3: have figured out every contingency plan. But in spite of
25:40
Speaker 3: all the language in there, and sometimes there's special language
25:42
Speaker 3: and estate plans that you know, punish people for suing
25:45
Speaker 3: each other.
25:46
Speaker 2: Ultimately, you cannot prevent anyone from suing each other.
25:50
Speaker 3: If kids have a big problem with each other and
25:52
Speaker 3: want to fight over your money, there's really nothing that
25:55
Speaker 3: you can do to prevent all of that other than
25:59
Speaker 3: being clear and transparent with them ahead of time, laying
26:02
Speaker 3: out what your wishes are and explaining what your plans
26:05
Speaker 3: are to them in advance. Obviously, there are situations where
26:09
Speaker 3: this is far less problematic and risky than others. You
26:12
Speaker 3: got one kid, going to be pretty straightforward, But you know,
26:16
Speaker 3: for the increasing number of people who are mixed, families
26:20
Speaker 3: of second marriages and kids from both marriages and unequal
26:23
Speaker 3: distributions of their wealth, maybe somebody who's going to be receiving,
26:27
Speaker 3: you know, funds from a trust to help support them
26:30
Speaker 3: for their lives because of a special.
26:31
Speaker 2: Issue that they have.
26:33
Speaker 3: Explaining this stuff to the next generation, if you don't
26:37
Speaker 3: want your kids to be fighting after you're gone, can
26:41
Speaker 3: be critical, and this guide is an excellent starting point
26:45
Speaker 3: to how to facilitate those conversations. Obviously, you know, people
26:49
Speaker 3: suing each other is not the only reason to do this,
26:52
Speaker 3: but I can tell you again firsthand from experience that
26:55
Speaker 3: both Chuck and I have of watching families break themselves
26:58
Speaker 3: apart over money is almost a situation that nobody wishes for,
27:02
Speaker 3: I'd imagine. If you'd like to request your free copy
27:05
Speaker 3: of Talking to Your Kids about in Inheritance, you can
27:08
Speaker 3: call us at eight hundred three nine three four zero
27:12
Speaker 3: zero one. You can request the guide online at Armstrong
27:15
Speaker 3: Advisory dot com, but that number again eight hundred three
27:19
Speaker 3: nine three for zero zero one.
27:21
Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
27:23
Speaker 1: registered investment advisor. Nothing in the ad or in any
27:26
Speaker 1: Armstrong guide a specific financial, legal or tax advice. Consult
27:29
Speaker 1: your own financial tax into state planning advisors before making
27:32
Speaker 1: any investment decisions. Armstrong may contact you to offer investment
27:35
Speaker 1: advisory services.
27:37
Speaker 2: Peace in the Wall Street Journal, Frequent oil drains from
27:40
Speaker 2: US Strategic Reserve push old system to breaking points. And
27:44
Speaker 2: here's the deal is, since twenty twenty two, we've basically
27:48
Speaker 2: drained this point about sixty to sixty five percent of
27:53
Speaker 2: the capacity available in the US Strategic Patrolling Reserve. In particular,
27:58
Speaker 2: in both instances, both during the Biden administration and now
28:01
Speaker 2: during the Trump administration, we've done so at rather rapid
28:04
Speaker 2: paces that may be eroding the structural integrity of the
28:09
Speaker 2: salt caverns that form the basis for the reserve. It's
28:13
Speaker 2: not held in a bunch of tanks above ground. It's
28:16
Speaker 2: sixty or so underground caverns that are you know, in
28:20
Speaker 2: basically like this salty rock. And you have a bunch
28:25
Speaker 2: of wear and tear. That's happening because the way that
28:28
Speaker 2: you get oil, do you guys know, how you get
28:30
Speaker 2: oil out of these things? Pump it? No, Actually, interestingly,
28:35
Speaker 2: the way that you get it out is you rather
28:37
Speaker 2: pump water in those of you who have ever you know,
28:42
Speaker 2: made a salad dress, made any kind of food, you know,
28:44
Speaker 2: the oil rises to the top of any liquid because
28:47
Speaker 2: it's less dense than the water and other stuff that
28:50
Speaker 2: you put in, right, and it's no different with this.
28:52
Speaker 2: So basically what they do they pump a bunch of
28:55
Speaker 2: water into the caverns and then the oil comes out
28:59
Speaker 2: through the uh spigots, I guess you could call them
29:04
Speaker 2: at the top. That's basically how they do it, and
29:08
Speaker 2: no one really knows. Remember that the spr hasn't been
29:11
Speaker 2: at levels this low since it was filled up, so
29:14
Speaker 2: we don't exactly know what happens to the structural integrity
29:18
Speaker 2: for a couple of reasons. The first is there is
29:20
Speaker 2: a difference in density between water and oil. How does
29:24
Speaker 2: that impact it? The second, do you know what happens
29:27
Speaker 2: when you mix salt and water? It becomes salt water?
29:32
Speaker 2: So are you can except in olive garden where they
29:36
Speaker 2: don't do that because they got to save the pots,
29:37
Speaker 2: they do now they do it now. Yeah, Oh that's good. Yeah,
29:41
Speaker 2: it's great. So you're potentially eroding the very salt walls
29:45
Speaker 2: that go into these and it might cause partial or
29:48
Speaker 2: total cavern collapse, depending on how things go. So all
29:53
Speaker 2: of this is pointing towards Hey, the SPR might not
29:57
Speaker 2: be in the same state for being refilled as it
30:00
Speaker 2: was before all of these draw downs in the last four.
30:03
Speaker 3: Years, more or less complicated to build and repair than
30:09
Speaker 3: a bunch of data centers.
30:10
Speaker 2: I'm gonna go with more. Yeah, and probably, if we're
30:13
Speaker 2: being honest, more important, yes, much more.
30:16
Speaker 3: You know, strategic petroleum reserve is much more important than
30:22
Speaker 3: making a picture of your kid in outer space.
30:24
Speaker 2: I also want to point out South Africa. Did you
30:30
Speaker 2: see the news about them? Nope? Hang on, I want
30:35
Speaker 2: to pull the data up for well, it's fine, I
30:37
Speaker 2: got it now. South Africa announced that they were going
30:41
Speaker 2: to boost their strategic petroleum reserve to thirty six million barrels.
30:47
Speaker 2: This is basically quadrupling the size of their SPR because
30:52
Speaker 2: they're now nervous about something like this happening again. This
30:55
Speaker 2: is one of those things that is going to happen
30:58
Speaker 2: in many countries that decide, hey, we don't want to
31:02
Speaker 2: be as at risk as we once once were. And
31:05
Speaker 2: this is why I think the picture for the next
31:07
Speaker 2: couple of years is some additional demand even relative to
31:12
Speaker 2: pre war, just because a lot of countries are going
31:15
Speaker 2: to be trying to either refill or expand sprs from
31:19
Speaker 2: their previous levels. Quick break here. When we come back,
31:22
Speaker 2: we'll do a little bit of stack.
31:23
Speaker 1: Roulet's subscribe now to our YouTube page, where you'll find
31:27
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32:09
Speaker 2: Mike, what do you got for me? For stack rule ups.
32:11
Speaker 3: The movie Mowana was released the year my oldest children
32:15
Speaker 3: were born, twenty sixteen. It was released, and they just
32:19
Speaker 3: this weekend decided to release the live action remake, and
32:23
Speaker 3: it did not do well in spite of Dwayne the
32:27
Speaker 3: Rock Johnson starring as Maui as he did in at
32:31
Speaker 3: least the animated animated version. The live action remake and
32:35
Speaker 3: want to flopped, grossing an estimated ninety five million dollars globally.
32:39
Speaker 3: Against a two hundred and fifty million dollar production cost. Oops,
32:42
Speaker 3: and I gotta say I'm not surprised. So my nine
32:45
Speaker 3: year old it is too soon.
32:47
Speaker 1: So the.
32:49
Speaker 3: Case that I'll make is you've got to wait until
32:52
Speaker 3: those kids that grew up on this movie are a
32:55
Speaker 3: fair bit older before you can release the live action remake.
32:58
Speaker 3: Right my kids are are nine years old now. They
33:02
Speaker 3: grew up on this movie. They grew up listening to
33:04
Speaker 3: the songs from the movie, and when I put one
33:08
Speaker 3: of those songs on now, they get like embarrassed in
33:12
Speaker 3: front of their friends, like, oh, we don't listen to
33:14
Speaker 3: this anymore, Dad, We don't listen to Frozen songs anymore.
33:17
Speaker 2: Dad, We're too old for that. Sure.
33:20
Speaker 3: And that's basically the entire demo from you know, like
33:25
Speaker 3: seven years old to like fifteen years old.
33:28
Speaker 2: Right now, it's too soon.
33:30
Speaker 3: You cannot go release a remake of a hit like
33:33
Speaker 3: this within a decade because all the people that would
33:36
Speaker 3: feel nostalgia about it aren't feeling nostalgia yet.
33:38
Speaker 2: The other piece, the reviews generally were pretty bad. Okay,
33:43
Speaker 2: so combination of like, yeah, the nostalga's not there and
33:46
Speaker 2: the people are still crappy said it wasn't very good
33:49
Speaker 2: kind of it's not great.
33:50
Speaker 4: I mean, did you guys even see the Rock like
33:51
Speaker 4: promoting this much?
33:52
Speaker 2: I didn't even see Disney promoting it.
33:54
Speaker 4: I saw a couple commercials, but.
33:56
Speaker 2: They must have known it wasn't very good. Yeah. Disney's slate,
34:00
Speaker 2: by the way, is pretty like. So they've here's what
34:04
Speaker 2: they've got the rest of the year. They've got spider
34:05
Speaker 2: Man brand new Day that comes out in two weeks.
34:07
Speaker 2: It's gonna print money, because I do think Tom Holland
34:11
Speaker 2: can print money these days. By the way, who's excited
34:14
Speaker 2: for the Odyssey? Yeah?
34:16
Speaker 4: Well, my buddies were just asking me, who's gonna imax it.
34:19
Speaker 4: I got tickets for next Monday.
34:21
Speaker 2: Yeah, next Monday night, I'm heading down to Providence and
34:25
Speaker 2: seventy millimeter that's the way to do it. Yeah, it's
34:28
Speaker 2: a lot of millimeters, seventy of them. On November twenty fifth,
34:32
Speaker 2: they've got something called hext coming out. An awkwardine in
34:35
Speaker 2: her type a mother learned her peculiarities might be magical powers. Okay,
34:40
Speaker 2: Avengers Doomsday calling a flop on this one, at least
34:46
Speaker 2: at least relative to expectations. And I say, this is
34:50
Speaker 2: someone who up through Avengers, you know, endgame again. I
34:56
Speaker 2: thought that they could do no wrong. I think they've
34:58
Speaker 2: just lost a ton of momentum. And I'm just not
35:01
Speaker 2: sure how many times they can go back to the
35:03
Speaker 2: well on that one. Oh right, this is Downy is
35:07
Speaker 2: is doctor Doom? Yeah okay, yeah, I'm just not sure
35:11
Speaker 2: how it's gonna hit. It's not gonna flop flop. But
35:15
Speaker 2: if the previous ones made you know, almost you know,
35:18
Speaker 2: a couple billion dollars each, wouldn't surprise me if this
35:21
Speaker 2: comes in around a billion.
35:22
Speaker 3: I mean you gotta pay Chris Evans, Robert Downey Junior,
35:24
Speaker 3: and James Marsden on this, Like, yeah, it's gonna be
35:27
Speaker 3: tough to.
35:28
Speaker 2: You know again, It's not gonna be a flop. It's
35:30
Speaker 2: just not gonna be what it was Ice Age boiling points.
35:33
Speaker 2: They're going back to that well in February of next year,
35:37
Speaker 2: something called Gatto, which actually signs oh yeah, this actually
35:40
Speaker 2: sounds kind of interesting. Pixar, indebted to a feline mob boss,
35:45
Speaker 2: a black cat name Nero, finds himself forced to forge
35:47
Speaker 2: an unexpected friendship they that may finally lead him to purpose.
35:50
Speaker 3: Ye I will not criticize anything that's original from from
35:54
Speaker 3: any of these studios.
35:55
Speaker 2: Guys, I gotta be honest, a cat mob boss. Okay,
35:59
Speaker 2: I'm interested. Star Wars Starfighter next year probably gonna be
36:03
Speaker 2: a flop. The Bluey movie Monster, Dude will Well will
36:10
Speaker 2: be a monster. Yep, I'll pay to see that without
36:14
Speaker 2: my kids. August sixth. That's the thing about blue You
36:16
Speaker 2: will watch it without your kids.
36:17
Speaker 4: He's not even kidding like that is a sentiment amongst our.
36:20
Speaker 2: August sixth, next year, that will be a monster. And
36:25
Speaker 2: then here's the one that is a question, Frozen three
36:28
Speaker 2: next November. Do they manage it in a way that
36:32
Speaker 2: allows it to grow with the kids who watched the
36:35
Speaker 2: first ones, kind of like the Harry Potter movies, or
36:39
Speaker 2: do they try to go back to what it was before.
36:42
Speaker 2: I think they'll have this one figured out, because I
36:45
Speaker 2: think the second one was enough growth from the first.
36:47
Speaker 2: But we'll see. So that's kind of what they have
36:50
Speaker 2: queued up there over the next year or so from Disney.
36:53
Speaker 2: Couple ones that I think are gonna be sneaky flops,
36:55
Speaker 2: but I think Bluey is going to be a monster
36:57
Speaker 2: for them next year. Peace from Gizmoto a study tried
37:03
Speaker 2: to quantify how many LinkedIn posters a one hundred percent.
37:05
Speaker 2: AI hint, it's a lot. Uh. So I pop into
37:09
Speaker 2: LinkedIn like once a quarter or so. So if you
37:12
Speaker 2: tried to like friend me on LinkedIn, sorry, but I
37:14
Speaker 2: just don't do it and I don't care anyways, because
37:16
Speaker 2: it's it's LinkedIn, It's fine it. I've heard two competing
37:21
Speaker 2: things about LinkedIn.
37:22
Speaker 3: Number one, your work anniversary went unnoticed by you, Chuck.
37:25
Speaker 1: I.
37:27
Speaker 2: Don't even know, like what that means, Like, what's a
37:29
Speaker 2: work anniversary?
37:30
Speaker 4: Congrats?
37:32
Speaker 2: Yeah, like we got married, though I'm not married to
37:34
Speaker 2: my work, you know, I know. Anyways, LinkedIn, I've heard
37:40
Speaker 2: anecdotally from marketing people that it's one of the best
37:43
Speaker 2: places to market. But whenever I go there that once
37:47
Speaker 2: a quarter, I look at it and I'm just like,
37:49
Speaker 2: this is just so much like self promotional crap about
37:52
Speaker 2: like yes, oh like it's people complaining or it's I
37:55
Speaker 2: had dinner with my kids and here's what it taught
37:57
Speaker 2: me about business to business sale. Like, I just I
38:02
Speaker 2: can't do it, man, I'm I'm sorry. I can't LinkedIn,
38:07
Speaker 2: I'm linked out. We're gonna take a quick break for
38:10
Speaker 2: the rest of the day, stocks slightly negative. Maybe they'll
38:13
Speaker 2: turn around. By the clothes, we'll see you tomorrow on
38:15
Speaker 2: the Financial Exchange