Latest / The Financial Exchange Show / Congress Finally Starts Talking About Saving Social Security

Transcript

Congress Finally Starts Talking About Saving Social Security · The Financial Exchange Show

• 0:00
  Speaker 1: The Financial Exchange is produced by Money Matters Radio and
• 0:02
  Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
• 0:05
  Speaker 1: registered investment advisor. All opinions expressed are solely those of
• 0:08
  Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
• 0:11
  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
• 0:17
  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
• 0:23
  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
• 0:28
  Speaker 1: for referrals and are not affiliated. This is The Financial
• 0:34
  Speaker 1: Exchange with Chuck Zotta and Mike Armstrong. Your exclusive look
• 0:38
  Speaker 1: at business and financial news affecting your day, your city,
• 0:42
  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
• 0:53
  Speaker 1: Veterans Department of Massachusetts. Help us support our great American
• 0:57
  Speaker 1: heroes by visiting dav5k. boston and making a donation today. This
• 1:03
  Speaker 1: is The Financial Exchange with Chuck Zotta and Mike Armstrong.
• 1:09
  Speaker 2: Well, it is Chuck, Mike, and Tucker with you and
• 1:12
  Speaker 2: kicking things off this week, which is a busy week
• 1:14
  Speaker 2: for economic data, concluding with the jobs report coming this
• 1:18
  Speaker 2: Friday for the month of August. Opening up with just
• 1:22
  Speaker 2: kind of a sluggish day in markets so far. Nothing horrible,
• 1:26
  Speaker 2: but just, I don't know, it's Monday and markets don't
• 1:29
  Speaker 2: want to get up, I guess. The S & P
• 1:31
  Speaker 2: is down 34 points. The Dow is off 342. NASDAQ
• 1:35
  Speaker 2: composite down 100 points, so about anywhere from a third
• 1:38
  Speaker 2: to a two-thirds of a percent decline in your major indices.
• 1:41
  Speaker 2: Nothing to write home about. 10-year Treasury is up 3.6
• 1:45
  Speaker 2: basis points. 30-year is up 5 basis points. So for
• 1:48
  Speaker 2: all the optimism on Friday that Kevin Warsh's speech at
• 1:52
  Speaker 2: Jackson Hole was going to help drive long-term bond yields lower,
• 1:57
  Speaker 2: those gains have reversed today and the long bonds are
• 2:01
  Speaker 2: selling off again. The piece that you do want to
• 2:03
  Speaker 2: watch if you want to be concerned about it, the
• 2:06
  Speaker 2: dollar index also selling off, down 0.25% to 99.4% right now.
• 2:12
  Speaker 2: But gold not finding a bid despite the dollar selling off.
• 2:15
  Speaker 2: Maybe that move up in the long bond, finally weighing
• 2:18
  Speaker 2: on it a little bit. And so gold is off
• 2:20
  Speaker 2: $ 46 an ounce to $ 44.
• 2:20
  Speaker 3: 83.
• 2:20
  Speaker 2: Crude oil, West Texas Intermediate up $ 1. 84, barrel to $ 85. 24,
• 2:23
  Speaker 2: the AAA national average for gas prices. at $ 4. 08 right now.
• 2:32
  Speaker 2: That's up about two-tenths of a cent overnight. Diesel holding
• 2:37
  Speaker 2: steady at $ 5. 60, no movement overnight. But diesel futures pointing
• 2:42
  Speaker 2: up 15 cents if I'm reading this right. And so
• 2:45
  Speaker 2: watch for diesel prices to move up a bit over
• 2:48
  Speaker 2: the course of the week. We're not there yet, but
• 2:50
  Speaker 2: the all-time record is $ 5. 81, so we're 21 cents away.
• 2:55
  Speaker 2: There is a real chance that we hit an all-time
• 2:57
  Speaker 2: high on diesel prices in the next couple of weeks here,
• 3:00
  Speaker 2: depending on how things in the Middle East go. So
• 3:03
  Speaker 2: we'll watch that closely, just because diesel is something that
• 3:06
  Speaker 2: filters broadly out into the U.S. economy because of transportation
• 3:09
  Speaker 2: and production that's associated with it. And so, something that
• 3:14
  Speaker 2: bears watching.
• 3:15
  Speaker 4: All of which could spell a pretty painful winter heating
• 3:18
  Speaker 4: season here in the Northeast.
• 3:20
  Speaker 2: Yes. We've got a piece in the Wall Street Journal.
• 3:23
  Speaker 2: It's our top story here for the hour. Congress is
• 3:26
  Speaker 2: finally talking about saving Social Security. Well, I've got to
• 3:31
  Speaker 2: be honest. It's about time, my dudes.
• 3:33
  Speaker 4: It would have been nice if you had started these
• 3:35
  Speaker 4: talks 10 years ago, given how much easier it would
• 3:37
  Speaker 4: have been to solve the problem a decade ago. But
• 3:40
  Speaker 4: by talking about saving Social Security.
• 3:43
  Speaker 2: Are they talking about it, or are they talking about
• 3:45
  Speaker 2: talking about saving Social Security?
• 3:46
  Speaker 4: They're talking about talking about it, because what they are
• 3:47
  Speaker 4: doing is trying to pass legislation to start a committee.
• 3:50
  Speaker 2: to research.
• 3:51
  Speaker 4: The subject of how to save Social Security, which, again,
• 3:53
  Speaker 4: is preposterous given how many studies have already been done
• 3:56
  Speaker 4: that weren't authorized by Congress. But nonetheless, this is how
• 4:00
  Speaker 4: we do things here and really leaves me no doubt
• 4:03
  Speaker 4: that we will, in fact, wait until the last possible
• 4:05
  Speaker 4: moment to fix this program.
• 4:07
  Speaker 2: So here's the deal. As of right now, Social Security
• 4:10
  Speaker 2: is set to run out of funds. The trust fund
• 4:14
  Speaker 2: is set to run out of funds in 2032. Which
• 4:18
  Speaker 2: means that the senators who are elected this fall will
• 4:22
  Speaker 2: be on the job when that happens. They are the
• 4:25
  Speaker 2: first congresspeople that will be on the job, guaranteed, when
• 4:30
  Speaker 2: that happens unless, like, Scandal or they get voted out
• 4:33
  Speaker 2: or whatever, you know, whatever might happen. But so they've
• 4:37
  Speaker 2: got to do something. And here's the deal. There is
• 4:40
  Speaker 2: a group called the Committee for a Responsible Federal Budget.
• 4:43
  Speaker 2: And this came out of I want to say this
• 4:47
  Speaker 2: isn't like the mid 2010s when when this group kind
• 4:50
  Speaker 2: of rose to prominence, including. The Erskine-Bowles Commission that originally
• 4:55
  Speaker 2: looked at Social Security and looked at the budget in
• 4:57
  Speaker 2: the 2010s was like, okay, they're members of this on
• 5:00
  Speaker 2: the board. So, again, they basically look at it and say, hey,
• 5:04
  Speaker 2: we're nonpartisan. We just want to figure out what can
• 5:07
  Speaker 2: we do to actually fix Social Security. And here's the deal.
• 5:13
  Speaker 2: There are three general levers that you can pull in
• 5:17
  Speaker 2: order to influence Social Security. Number one. You can change benefits.
• 5:24
  Speaker 2: Not to the upside, which is the only thing that
• 5:25
  Speaker 2: we've done recently. Change benefits to the downside. Reduce them.
• 5:29
  Speaker 2: Make them smaller. I'm trying to phrase it in a
• 5:31
  Speaker 2: way that everyone understands. You would make the benefit smaller
• 5:35
  Speaker 2: and not as powerful for the retiree. That's option one.
• 5:39
  Speaker 2: Option two. You can raise taxes. You have to pay
• 5:42
  Speaker 2: more money to the federal government into the Social Security
• 5:46
  Speaker 2: Trust Fund.
• 5:47
  Speaker 3: You.
• 5:48
  Speaker 2: You, you, all of you, some of you, but people
• 5:52
  Speaker 2: would have to pay more. Option three, you can delay benefits.
• 5:58
  Speaker 2: And as an addendum to that, you could also, you know,
• 6:00
  Speaker 2: change some eligibility criteria and things along those lines at
• 6:04
  Speaker 2: the margin. So the Committee for a Responsible Budget. Committee
• 6:10
  Speaker 2: for a Responsible Federal Budget has a tool on their website.
• 6:14
  Speaker 2: It's called the Reformer. We've talked about it on our
• 6:15
  Speaker 2: show before. That lets you play around with some of
• 6:18
  Speaker 2: the proposed fixes and things that you can do if
• 6:22
  Speaker 2: you want the single biggest item on their site that
• 6:25
  Speaker 2: would cover 61% of the shortfall. is what's called eliminating
• 6:33
  Speaker 2: the tax max without benefit credit. Basically, what this means
• 6:38
  Speaker 2: is right now, the Social Security tax, the FICA tax,
• 6:41
  Speaker 2: is limited to the first $ 184, 500 that a worker earns
• 6:45
  Speaker 2: in any given year. It's indexed for inflation every year,
• 6:48
  Speaker 2: so it changes and goes up a little bit. What
• 6:50
  Speaker 2: this is saying is, hey, if you got rid of
• 6:52
  Speaker 2: that maximum and instead took any job-related earnings and threw
• 6:59
  Speaker 2: them into this, you could cover 61% of the shortfall
• 7:04
  Speaker 2: in the Social Security program.
• 7:05
  Speaker 4: So you cannot eliminate the problem just by saying.
• 7:09
  Speaker 2: All wages are taxed. Correct. So if you say, hey,
• 7:12
  Speaker 2: someone who makes a million dollars in income a year,
• 7:14
  Speaker 2: we want to tax them that full 12.4%, just like
• 7:17
  Speaker 2: someone who makes 184, that covers 61% of the issue.
• 7:24
  Speaker 2: You still have another 39 that you've got to deal with.
• 7:28
  Speaker 2: Things that you can do if you want to, again,
• 7:31
  Speaker 2: cover most of it. The simplest one that covers almost
• 7:36
  Speaker 2: all of the remaining gap is raise the retirement age
• 7:39
  Speaker 2: to 69 from 67. And then index life expectancy to
• 7:43
  Speaker 2: life expectancy going forward. That covers another 33%. So in
• 7:46
  Speaker 2: those two items, getting rid of the payroll tax cap
• 7:50
  Speaker 2: and raising the retirement age, you've covered 94% of the shortfall. Now,
• 7:55
  Speaker 2: you're probably saying, Chuck, I don't like that. Yeah, I
• 7:58
  Speaker 2: don't like that.
• 7:59
  Speaker 4: As a person that is still working for another 20 years,
• 8:03
  Speaker 4: I wouldn't want to see my tax rates go up
• 8:05
  Speaker 4: without seeing retirees pay some of the gap.
• 8:10
  Speaker 2: Okay, so that's fine. How about what we do instead
• 8:14
  Speaker 2: of that? What if we cap Social Security benefits... At $ 100, 000
• 8:20
  Speaker 2: per couple, not indexed for inflation. But remember, right now,
• 8:24
  Speaker 2: Social Security benefits go up over time, like you get
• 8:27
  Speaker 2: an inflation bump and this and that. What if you
• 8:30
  Speaker 2: wanted to cap Social Security benefits at $ 100, 000, $ 50, 000 for
• 8:35
  Speaker 2: singles in a given year? It will be held fixed
• 8:39
  Speaker 2: for 30 years before being indexed to growth after that.
• 8:42
  Speaker 2: So basically, hey, you can have a cost of living
• 8:45
  Speaker 2: adjustment so long as you don't get above that number. Well,
• 8:48
  Speaker 2: that covers 55% of the shortfalls. Now you're talking 116%
• 8:52
  Speaker 2: of the shortfalls done if you do that. But of course,
• 8:54
  Speaker 2: the retiree who today is getting $ 48, 000 from Social Security
• 8:57
  Speaker 2: because they maxed out is saying, No, I don't want
• 9:00
  Speaker 2: you to do that. Now I'm not going to be
• 9:01
  Speaker 2: able to see it grow.
• 9:03
  Speaker 4: There are so many different conflicts here. There are generational conflicts, right?
• 9:08
  Speaker 2: The young.
• 9:09
  Speaker 4: There's already this tension between the millennials and boomers, and
• 9:12
  Speaker 4: so you're going to increase that one.
• 9:13
  Speaker 2: I know that there's tension between the millennials and boomers,
• 9:15
  Speaker 2: and it's deserved because the boomers have consistently piled the
• 9:19
  Speaker 2: country's fiscal problems onto the millennials repeatedly. But they're the
• 9:23
  Speaker 2: only ones that vote. Thanks, guys. They're the only ones
• 9:24
  Speaker 2: that vote, so that might not matter. Correct.
• 9:27
  Speaker 4: So the other piece here, you know, 10 years ago
• 9:31
  Speaker 4: I would have told you, you know, Democrats are going
• 9:33
  Speaker 4: to push for tax increases.
• 9:34
  Speaker 2: Republicans are going to push for benefit cuts.
• 9:37
  Speaker 4: Given the populist nature of politics today, it really doesn't
• 9:41
  Speaker 4: seem like that's going to be the case. I don't
• 9:44
  Speaker 4: really know where the compromise is going to be here
• 9:47
  Speaker 4: because I don't know a lot of elected Republicans today
• 9:49
  Speaker 4: in Congress or the Senate that would be on board
• 9:52
  Speaker 4: with benefit cuts of any sort.
• 9:54
  Speaker 2: Certainly Democrats wouldn't be. right?
• 9:55
  Speaker 4: You know, that idea is out the window for any Democrat,
• 9:58
  Speaker 4: unless it's, you know, we're going to, the solution you proposed, $ 100, 000,
• 10:00
  Speaker 4: maybe you can.
• 10:02
  Speaker 2: Get them on board.
• 10:04
  Speaker 4: Republicans, I don't know that they are interested in benefit
• 10:09
  Speaker 4: cuts in the same way that they used to be,
• 10:10
  Speaker 4: given the current president's pledges on that.
• 10:13
  Speaker 2: Let me float something as a possibility. You mentioned this
• 10:16
  Speaker 2: wave of economic populism that we have right now. What
• 10:19
  Speaker 2: are some of the key tenets of that?
• 10:22
  Speaker 4: Price controls, redistribution of wealth, control of publicly traded companies
• 10:29
  Speaker 4: is another one that I would describe. We want the
• 10:31
  Speaker 4: government to participate in the AI trade, for example. I
• 10:35
  Speaker 4: think these are all kind of cross-spectrum economic populist ideas.
• 10:41
  Speaker 2: Generally, like kind of against corporate interests, even though the
• 10:47
  Speaker 2: actual policy we've enacted over the last 25 years is
• 10:50
  Speaker 2: a very pro-company. I'm just going to float this as
• 10:54
  Speaker 2: a possibility if this continues. Do you think there would
• 10:58
  Speaker 2: ever be a case made, and I'm not saying this
• 11:01
  Speaker 2: would be good or bad, but if you want to
• 11:03
  Speaker 2: have the appearance of basically holding individuals harmless from any
• 11:09
  Speaker 2: direct change on their side... Raise the employer portion of
• 11:12
  Speaker 2: the FICA. Raise the employer portion of the FICA tax.
• 11:14
  Speaker 4: Remember how FICA works. It's half paid by the employee,
• 11:17
  Speaker 4: half paid by the employer.
• 11:19
  Speaker 2: 6.2% employee, 6.2% employer. Now, if you raise the employer
• 11:24
  Speaker 2: side tax, FICA tax... If you are making X dollars today,
• 11:29
  Speaker 2: you still make X dollars tomorrow, but you are raising
• 11:33
  Speaker 2: the marginal cost of every employee to that employer because
• 11:36
  Speaker 2: they have to pay that tax. So if it goes
• 11:39
  Speaker 2: from 6.2 on the employer side to 10.2, just as
• 11:43
  Speaker 2: an example, I don't know what it would have to
• 11:44
  Speaker 2: go to, but again, 20, probably if you raised it
• 11:47
  Speaker 2: from six, two to eight, two, just as an example, okay,
• 11:50
  Speaker 2: you've made it 2% more expensive to hire. Now remember,
• 11:54
  Speaker 2: coming out of the great financial crisis, one of the
• 11:57
  Speaker 2: things that we did, I can't remember if we reduced
• 11:59
  Speaker 2: it or got rid of it entirely, but the employee
• 12:02
  Speaker 2: payroll tax was cut significantly in I think 2010 and 2011,
• 12:07
  Speaker 2: I believe it was, as part of the American Recovery
• 12:11
  Speaker 2: and Reinvestment Act. That payroll tax was reduced. I can't
• 12:14
  Speaker 2: remember how much it was reduced to, but that was
• 12:18
  Speaker 2: something that we did on the other side to reduce
• 12:21
  Speaker 2: the FICA contributions from individuals. So all of this is
• 12:26
  Speaker 2: pointing towards, hey, they're talking about talking about Social Security,
• 12:30
  Speaker 2: which is great. Tucker, do we have anything on the
• 12:32
  Speaker 2: board in terms of when a Social Security fix is
• 12:37
  Speaker 2: going to be implemented? Don't believe so. Mike, what do
• 12:40
  Speaker 2: you got? I don't remember the date that it's going
• 12:43
  Speaker 2: to run out. 2032.
• 12:44
  Speaker 4: Within six months of 2032.
• 12:47
  Speaker 2: So July of 2031. Yeah, sure. Let's call it that.
• 12:50
  Speaker 4: I don't know what month of the year in 2032
• 12:52
  Speaker 4: it actually runs out, but It's going to be tight,
• 12:55
  Speaker 4: would be my prediction.
• 12:56
  Speaker 2: I'll go December of 31. Yeah. It's going to be tight.
• 13:00
  Speaker 2: December 31st of 31. Yeah.
• 13:03
  Speaker 4: I've got to say, with all these things that we've
• 13:05
  Speaker 4: just discussed, I know I've made this point before, I
• 13:08
  Speaker 4: don't think they actually fix the problem, but the least
• 13:11
  Speaker 4: likely outcome, in my view, are benefit cuts for those
• 13:16
  Speaker 4: earning less than $ 100, 000. I think you're right.
• 13:19
  Speaker 2: Yeah.
• 13:20
  Speaker 4: Of all the different things that could change, That, to me,
• 13:23
  Speaker 4: seems like the least likely.
• 13:24
  Speaker 2: Let's take a quick break. When we return tomorrow, we've
• 13:29
  Speaker 2: got a new Apple CEO. John Apple is taking over
• 13:33
  Speaker 2: for Tim Apple, and so we're going to discuss what's
• 13:36
  Speaker 2: going on with the Apples next.
• 13:38
  Speaker 1: Stay informed and prepared for market changes and breaking business news.
• 13:42
  Speaker 1: The Financial Exchange is live every day on YouTube. Tune in, subscribe,
• 13:47
  Speaker 1: and keep up to date on all of our show's
• 13:49
  Speaker 1: content on a daily basis. This is the Financial Exchange
• 13:53
  Speaker 1: Radio Network. Stay connected between shows. Follow the Financial Exchange
• 13:58
  Speaker 1: on Instagram for daily clips on business news from New
• 14:01
  Speaker 1: England and around the country. This is the Financial Exchange.
• 14:20
  Speaker 2: Tomorrow, we have what's basically the American equivalent of a
• 14:29
  Speaker 2: coronation in the UK. As John Apple is going to
• 14:35
  Speaker 2: be taking over from Tim Apple as the head of
• 14:38
  Speaker 2: Apple Incorporated, the new CEO. Starting tomorrow. Again, I don't
• 14:43
  Speaker 2: know what... I'm wondering what Tim's last day is like. Today? Yeah,
• 14:51
  Speaker 2: so one, I really hope... It's got to be a cake.
• 14:55
  Speaker 2: I'm really hoping that what they do.
• 14:56
  Speaker 4: So Apple produces the show Severance, and I feel like
• 15:00
  Speaker 4: they could really do something excellent with the Severance folks
• 15:05
  Speaker 4: for Tim Cook. For anyone that's seen the show, just
• 15:10
  Speaker 4: constantly mocking corporate America and creating... weird dystopian views of
• 15:16
  Speaker 4: corporate America. I feel like that would be the real
• 15:18
  Speaker 4: opportunity you want to take advantage of for Tim Cook's
• 15:20
  Speaker 4: last day is just a very underwhelming cake.
• 15:25
  Speaker 2: I bet Tim's just like party, right?
• 15:27
  Speaker 1: That was one of the ones.
• 15:27
  Speaker 2: Was it waffle party? I bet he's just walking around
• 15:31
  Speaker 2: the place, like putting whoopee cushions on people's chairs.
• 15:35
  Speaker 4: Tim seems too serious. I think there's a, you know,
• 15:38
  Speaker 4: one tear in his eye. And yeah, I mean, the
• 15:40
  Speaker 4: guy spent what, how many years at the helm of,
• 15:43
  Speaker 4: of Apple?
• 15:43
  Speaker 2: Like, as the CEO? Yeah. 15? 14? 14 or 15. Yeah.
• 15:49
  Speaker 2: I mean, he's been there since... Yeah, he's been... 15
• 15:53
  Speaker 2: years he's been the CEO. He's just walking around with
• 15:55
  Speaker 2: his iPod. He's been there since 1998, so it's been
• 15:58
  Speaker 2: 28 years. Spinning songs on it. Yeah. Do you think
• 16:01
  Speaker 2: he still has one of the original ones? Oh, yeah, definitely.
• 16:04
  Speaker 4: Wired headphones and just, you know, playing some real emotional
• 16:08
  Speaker 4: music in his mind.
• 16:10
  Speaker 2: Okay, anyway.
• 16:13
  Speaker 4: As we move on here, new CEO taking over, and
• 16:16
  Speaker 4: I would, it's tough to make this argument, but let's
• 16:21
  Speaker 4: just be comfortable saying that Apple is at a very
• 16:25
  Speaker 4: interesting moment in its history. One, it is the only
• 16:29
  Speaker 4: major tech company that I can point to that is
• 16:32
  Speaker 4: completely swimming, if not in the other direction of artificial intelligence,
• 16:37
  Speaker 4: then just not pouring any money into it and really
• 16:41
  Speaker 4: not spending much time trying to figure out AI.
• 16:44
  Speaker 2: At this moment.
• 16:45
  Speaker 4: I'm sure they are making their own plans, but not
• 16:48
  Speaker 4: investing much of a penny in artificial intelligence right now. Two,
• 16:53
  Speaker 4: they are facing probably the biggest component cost increase to
• 16:58
  Speaker 4: manufacturing their devices that they've ever seen as a company.
• 17:02
  Speaker 4: And so they do face some very interesting, I won't
• 17:05
  Speaker 4: say the first one's a challenge, right? Like they're still
• 17:08
  Speaker 4: one of the large, one or two largest companies in
• 17:11
  Speaker 4: the world, in spite of not participating in this AI trade,
• 17:13
  Speaker 4: I think you could make the case that that's an
• 17:15
  Speaker 4: advantage to them. But the component piece increases not, and
• 17:20
  Speaker 4: increasingly people are asking questions of, okay, what is your
• 17:23
  Speaker 4: strategy for this emerging technology?
• 17:25
  Speaker 2: And the interesting thing with Ternus is that he is,
• 17:28
  Speaker 2: that's his last name, it's not actually John Apple.
• 17:30
  Speaker 1: Yeah, right.
• 17:31
  Speaker 2: You're not required to change your last name to the
• 17:33
  Speaker 2: name of the company you lead, but it's preferred, you know, it's...
• 17:39
  Speaker 2: Satya Microsoft is a great CEO as well. But in
• 17:44
  Speaker 2: any case, Ternus is a hardware guy. He cut his
• 17:48
  Speaker 2: teeth designing and building the iMac. He's been involved in
• 17:53
  Speaker 2: every major product design over the last 25 years. Not
• 17:57
  Speaker 2: in terms of like the, design's the wrong word, the
• 18:00
  Speaker 2: engineering of the devices. He is an engineer. And so
• 18:05
  Speaker 2: the reason that I thought it was an interesting choice
• 18:07
  Speaker 2: at the time is look, hardware is not where anyone
• 18:10
  Speaker 2: is swimming right now. Everyone out there in tech is like, hey, yes,
• 18:17
  Speaker 2: designing our own chips for hardware. And you're trying to
• 18:20
  Speaker 2: make AI as cheap as possible.
• 18:20
  Speaker 4: Whatever I need to build a data center, I will
• 18:23
  Speaker 4: invest in hardware.
• 18:24
  Speaker 2: But otherwise, it's all about the software product. Correct. And again,
• 18:27
  Speaker 2: Ternus isn't a chip guy. He's a device guy. So
• 18:32
  Speaker 2: I think that's an interesting choice given where we now sit.
• 18:37
  Speaker 2: And he's got some headwinds he's going to have to
• 18:38
  Speaker 2: deal with. And remember, when Tim Cook took over at Apple...
• 18:44
  Speaker 2: It wasn't just all sunshine and puppy dogs. It wasn't
• 18:46
  Speaker 2: just this seamless handoff where everything went fine. If you
• 18:51
  Speaker 2: go and pull the chart of Apple stock and you
• 18:56
  Speaker 2: look at what things looked like, you know, after he
• 19:00
  Speaker 2: took over, the stock had a nice little run for
• 19:03
  Speaker 2: the first, I don't know, six months or so after
• 19:06
  Speaker 2: he took over. And then from September of 2012 through
• 19:11
  Speaker 2: June of 2013, it lost like 35% of its value.
• 19:14
  Speaker 2: And people were like, oh, is Tim not the guy
• 19:16
  Speaker 2: to lead the company? And then it went on a
• 19:18
  Speaker 2: nice little surge, and then it lost. So it was
• 19:21
  Speaker 2: a few years before it really found its footing. I
• 19:25
  Speaker 2: wouldn't be surprised if we see something similar here, just
• 19:28
  Speaker 2: because there are so many technological cross-currents that are moving
• 19:30
  Speaker 2: things at this point in time. Quick break. Wall Street
• 19:34
  Speaker 2: Watch is next.
• 19:39
  Speaker 1: Bringing the latest financial news straight to your radio every day.
• 19:43
  Speaker 1: It's the Financial Exchange on the Financial Exchange Radio Network.
• 19:49
  Speaker 1: Time now for Wall Street Watch. Tracking the stocks, the data,
• 19:54
  Speaker 1: and the headlines driving markets so far today. Right here
• 19:57
  Speaker 1: on the Financial Exchange Radio Network.
• 19:59
  Speaker 3: Markets slightly in the red to begin the week with
• 20:01
  Speaker 3: oil climbing higher in reaction to the U.S. and Iran
• 20:05
  Speaker 3: exchanging strikes. For the first time in a month, Wall
• 20:08
  Speaker 3: Street's also readying for a jobs Friday. Right now the
• 20:12
  Speaker 3: Dow is down two-thirds of a percent or 342 points lower.
• 20:16
  Speaker 3: S & P 500 is off about a half a
• 20:18
  Speaker 3: percent or 38 points. NASDAQ down nearly half a percent
• 20:22
  Speaker 3: as well or 116 points lower. Russell 2000 is down
• 20:27
  Speaker 3: nearly nine-tenths of one percent. Tenure Treasury is up three
• 20:31
  Speaker 3: basis points at 4.76%. and oil up about 2.5%, trading
• 20:37
  Speaker 3: at $ 85 a barrel. Several energy stocks, including Halliburton, Chevron, ExxonMobil,
• 20:43
  Speaker 3: and Occidental Petroleum, are seeing modest gains in reaction to
• 20:47
  Speaker 3: the rise in oil today. Meanwhile, Nvidia revealed it is
• 20:51
  Speaker 3: investing $ 3. 5 billion into MediaTek, further deepening its partnership with
• 20:57
  Speaker 3: the Taiwanese chip maker. Nvidia's stock is up by 1%. Elsewhere,
• 21:03
  Speaker 3: Utility company PG & E is seeing its stock sink
• 21:07
  Speaker 3: 19% after California lawmakers blocked a proposal that would have
• 21:11
  Speaker 3: limited the amount of money individuals could seek from utility
• 21:15
  Speaker 3: companies whose equipment ignited wildfires. Video game retailer GameStop said
• 21:20
  Speaker 3: it expects its second quarter profit to climb, lifted by
• 21:23
  Speaker 3: investment gains from its stake in eBay, but also said
• 21:27
  Speaker 3: sales likely declined further. From a year ago, GameStop is
• 21:32
  Speaker 3: up by 4% at the moment. I'm Tucker Silva.
• 21:35
  Speaker 1: That is Wall Street Watch.
• 21:36
  Speaker 4: Chuck, I want to talk about where to live once
• 21:40
  Speaker 4: you retire. A lot of folks do think a little
• 21:43
  Speaker 4: bit about relocation or whether or not their home is
• 21:46
  Speaker 4: the right one for them. But for most people that
• 21:49
  Speaker 4: I talk to that are approaching retirement, one, they don't
• 21:51
  Speaker 4: want to make any changes right away, which is very fair, right?
• 21:55
  Speaker 4: Changing your everyday working life at the same time that
• 21:58
  Speaker 4: you're changing where you live can be a recipe for failure. Two,
• 22:03
  Speaker 4: the problem that a lot of folks face when they
• 22:05
  Speaker 4: go to look around at changing up where they live
• 22:08
  Speaker 4: is that there just are not many newly constructed small
• 22:13
  Speaker 4: homes today. There are some condos, there are other situations
• 22:16
  Speaker 4: you get into, but the idea that you can go
• 22:19
  Speaker 4: and find a single family, small two bedroom home with
• 22:24
  Speaker 4: one and a half baths is just not really in
• 22:28
  Speaker 4: existence in this real estate market anymore for a lot
• 22:32
  Speaker 4: of good reasons. We've got a brand new guide from
• 22:36
  Speaker 4: the Armstrong Advisory Group all about housing choices in retirement
• 22:41
  Speaker 4: and how to address how life evolves over the course
• 22:44
  Speaker 4: of your retirement, right? Because oftentimes you start off in
• 22:47
  Speaker 4: these go-go years and then by the time you are
• 22:50
  Speaker 4: in your 80s, are not terribly interested in traveling in
• 22:54
  Speaker 4: these big adventures that you might have been interested in
• 22:56
  Speaker 4: your early 60s. And so the guide is all intended
• 23:00
  Speaker 4: to walk you through what most retirees do face when
• 23:05
  Speaker 4: they go to look at different choices for where they live,
• 23:08
  Speaker 4: including all those types of facilities that you've heard about, right?
• 23:11
  Speaker 4: 55 plus communities, CCRCs, all of these different items. I
• 23:15
  Speaker 4: think the critical thing to think about when it comes
• 23:18
  Speaker 4: to your well-being, health, and housing in retirement is that
• 23:23
  Speaker 4: when people think about getting sick in retirement, they usually
• 23:27
  Speaker 4: worry about the wrong thing, right? They tend to worry about,
• 23:32
  Speaker 4: at least in my experience, they tend to worry about
• 23:33
  Speaker 4: what happens if I get sick and go to a
• 23:36
  Speaker 4: nursing home when I'm 87 years old. And it's not
• 23:38
  Speaker 4: that that's not a risk, but the real risk is
• 23:41
  Speaker 4: that somebody falls or gets sick at 75, and then
• 23:45
  Speaker 4: the other spouse lives 15 years after that. And that's
• 23:48
  Speaker 4: the need that you have to address early on with
• 23:51
  Speaker 4: insurance or making sure you're in the right living situation
• 23:56
  Speaker 4: well ahead of time. If you have questions about our
• 23:59
  Speaker 4: new guide or want to get your free copy, it
• 24:01
  Speaker 4: is the last day of the month, so you got
• 24:04
  Speaker 4: to request it today.
• 24:05
  Speaker 2: It's 800-393-4001.
• 24:07
  Speaker 4: It's a free guide all about retirement housing choices. You
• 24:12
  Speaker 4: can go to armstrongadvisory.com to request your copy or just
• 24:15
  Speaker 4: call us at 800-393-4001.
• 24:17
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 24:22
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 24:24
  Speaker 1: Armstrong guide is specific financial, legal, or tax advice. Consult
• 24:27
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 24:30
  Speaker 1: any investment decisions. Armstrong may contact you to offer investment
• 24:33
  Speaker 1: advisory services.
• 24:35
  Speaker 2: Mark, are you pro-anchovy?
• 24:40
  Speaker 4: Very limited circumstances. On my Caesar salad, and pretty much
• 24:44
  Speaker 4: that's it.
• 24:45
  Speaker 2: Tucker? Yeah, I would agree with that.
• 24:46
  Speaker 1: Love them.
• 24:47
  Speaker 2: Love the chove? Sure. Okay. So, anchovies, the big habitat
• 24:52
  Speaker 2: for them is off the western coast of South America.
• 24:57
  Speaker 2: Just outside, just off the coast of Peru. And Mark
• 25:00
  Speaker 2: Fandetti and I were talking about this, actually, where we
• 25:02
  Speaker 2: saw this in the 70s, where the Peruvian anchovy population
• 25:07
  Speaker 2: was devastated midway through the 70s and caused a whole
• 25:10
  Speaker 2: bunch of inflation because anchovies are basically a.
• 25:15
  Speaker 2: It's a big industry of making anchovies into food for
• 25:18
  Speaker 2: other stuff. So this is happening again. And so we're
• 25:23
  Speaker 2: now at a point where you've got... I'm just going
• 25:26
  Speaker 2: to quote here. This is El Nino related in this case.
• 25:29
  Speaker 2: El Nino is Spanish for.
• 25:35
  Speaker 2: Thank you, Chris. Yes, that is not Jim Farley, the
• 25:38
  Speaker 2: CEO of Ford, but his cousin? Cousin. Cousin Chris, who
• 25:43
  Speaker 2: has not been with us for about 30 years now.
• 25:46
  Speaker 2: It's kind of wild. It's been 30 years. Thank you, Chris.
• 25:52
  Speaker 2: But so you've got, I just have to read the piece.
• 25:56
  Speaker 2: Innovafeed breeds black soldier flies in a factory in northern France.
• 26:02
  Speaker 2: and turns the larva into an ingredient for fish feed
• 26:05
  Speaker 2: and other products. Until recently, it's been a premium product,
• 26:09
  Speaker 2: a greener alternative to the fish meal that underpins the
• 26:11
  Speaker 2: $ 300 billion plus aquaculture industry. But fish meal is selling
• 26:15
  Speaker 2: for record high prices after officials in Peru suspended this
• 26:20
  Speaker 2: year's anchovy catch early. So we're at the point now
• 26:24
  Speaker 2: where because of this super nino, the Peruvians have said
• 26:29
  Speaker 2: no more catching the anchovies. And now we're turning to
• 26:33
  Speaker 2: French factory farmed flies. There's some alliteration. There's some alliteration
• 26:38
  Speaker 2: for you. And that is what we're now doing to
• 26:42
  Speaker 2: feed the salmon that you eat from the grocery store. Gross.
• 26:49
  Speaker 4: I mean, I know it's no grosser than what gets
• 26:51
  Speaker 4: fed to the pig.
• 26:52
  Speaker 2: So if you see flies in your salmon. That I eat,
• 26:54
  Speaker 2: but gross. No, I mean, you talk about pig feed
• 26:56
  Speaker 2: and everything. It's like crab shells and stuff.
• 26:59
  Speaker 4: But yeah, that's where we are right now, and this
• 27:02
  Speaker 4: will just be one of many disruptions should it be,
• 27:07
  Speaker 4: as anticipated, a really devastating El Nino season.
• 27:10
  Speaker 2: Speaking of other things that we have seen related to it, uh,
• 27:14
  Speaker 2: the Panama Canal, uh, has cut the number of daily
• 27:18
  Speaker 2: vessel transits from 36 to 32.
• 27:21
  Speaker 4: That's good, since we aren't experiencing any other vessel problems
• 27:24
  Speaker 4: in other straits across the world.
• 27:26
  Speaker 2: The, uh, average auction price for those slots has tripled
• 27:30
  Speaker 2: now from about $ 800, 000 a ship up to $ 2. 5 million
• 27:33
  Speaker 2: per ship. The U.S. Army Corps of Engineers is trying to...
• 27:40
  Speaker 2: They have a plan to, you know, make the Panama
• 27:43
  Speaker 2: Canal more impervious to this kind of stuff by diverting
• 27:47
  Speaker 2: water from other rivers into it, but obviously that's going
• 27:49
  Speaker 2: to have some spillover effects, pun intended. You've already got
• 27:54
  Speaker 2: in Africa... Cocoa has been, you know, seeing crazy price
• 27:59
  Speaker 2: increases the last couple of years. This is likely to
• 28:01
  Speaker 2: exacerbate that through a drier African weather season. And so
• 28:06
  Speaker 2: this is before you even get to what's going on
• 28:08
  Speaker 2: in Europe, where the levels of water in the Rhine
• 28:12
  Speaker 2: and Danube are so critically low that you have European
• 28:16
  Speaker 2: industrial companies saying, we're going to have to potentially declare
• 28:20
  Speaker 2: force majeure in some cases because we can't ship heavy
• 28:23
  Speaker 2: stuff the way we otherwise would you. You can't put
• 28:25
  Speaker 2: this stuff on a car or a plane because it's
• 28:28
  Speaker 2: so big. You have to ship it on boats down
• 28:31
  Speaker 2: these rivers. Which don't exist right now. The rivers are
• 28:34
  Speaker 2: too low for the boats to pass through fully loaded.
• 28:38
  Speaker 2: So this is what the Nino's doing.
• 28:40
  Speaker 4: Can still get some Vikings, though. I have not seen
• 28:43
  Speaker 4: any disruption of Viking river cruises for our American retirees.
• 28:47
  Speaker 2: I thought you were talking about the Norwegian soccer team
• 28:50
  Speaker 2: from this summer.
• 28:51
  Speaker 4: No, I am referring to the river cruises that I don't.
• 28:55
  Speaker 4: I've obviously never been on one, but immensely popular from
• 29:00
  Speaker 4: what I am hearing.
• 29:01
  Speaker 2: Let's take a quick break. Let's do a little bit
• 29:02
  Speaker 2: of Stack Roulette. We've got some juicy ones right after this.
• 29:06
  Speaker 1: The Financial Exchange streams every day live on YouTube. Subscribe
• 29:09
  Speaker 1: to our page and follow the markets all morning long,
• 29:12
  Speaker 1: only here on the Financial Exchange Radio Network. The Financial
• 29:16
  Speaker 1: Exchange is now available every day from 11 to noon
• 29:19
  Speaker 1: on SiriusXM's Business Radio Channel 132. Stay informed about the
• 29:23
  Speaker 1: latest from Wall Street fiscal policy and breaking business news
• 29:27
  Speaker 1: every day. The Financial Exchange is live on Sirius XM's
• 29:31
  Speaker 1: Business Radio Channel 132. This is the Financial Exchange Radio Network.
• 29:39
  Speaker 3: Remember, you can watch the Financial Exchange live every day
• 29:43
  Speaker 3: on our YouTube page. Well, Breaking Business News and all
• 29:46
  Speaker 3: of our content is also archived, so if you want
• 29:49
  Speaker 3: to go back and see an interview or a particular discussion,
• 29:53
  Speaker 3: it's all there with the click of a button. All
• 29:56
  Speaker 3: you have to do is search for the Financial Exchange
• 29:59
  Speaker 3: on YouTube And be sure to hit that subscribe button.
• 30:04
  Speaker 2: Mike, have you ever heard of Dajon Love? Nope. No
• 30:10
  Speaker 2: one had until around three or four days ago. Until
• 30:14
  Speaker 2: on August 24th at Boise Airport, Dajon Love and Taylor
• 30:19
  Speaker 2: Jamie Chan were arrested and charged with conspiracy to commit
• 30:23
  Speaker 2: wire fraud and wire fraud. So Love is the guy
• 30:28
  Speaker 2: who reportedly has stolen $ 1. 3 million from more than two
• 30:35
  Speaker 2: dozen women over the last four years while pretending to
• 30:38
  Speaker 2: be a wide receiver for the San Francisco 49ers. Basically,
• 30:43
  Speaker 2: he would wear 49ers clothing, including a 49ers helmet, while
• 30:49
  Speaker 2: out in public doing things like trying to catch... footballs
• 30:53
  Speaker 2: on the beach or riding his bicycle or buying groceries.
• 30:58
  Speaker 2: And somehow, despite the 49ers roster being publicly available on
• 31:05
  Speaker 2: websites that are easy to access like ESPN and so
• 31:09
  Speaker 2: on and so forth, managed to convince two dozen women
• 31:14
  Speaker 2: that he was an NFL player who somehow needed their
• 31:17
  Speaker 2: money for certain things. Also, Don't personally know any NFL players,
• 31:22
  Speaker 2: but I'd be surprised if any of them were playing
• 31:24
  Speaker 2: catch on the beach while wearing a professional football helmet.
• 31:28
  Speaker 4: Correct.
• 31:29
  Speaker 2: Now, also, when asked multiple times, like, you know, from
• 31:32
  Speaker 2: people who either, you know, did fall prey to his
• 31:34
  Speaker 2: scheme or not, like, hey, can I see video of
• 31:37
  Speaker 2: you playing? He was like, no, like, you can't. It's
• 31:39
  Speaker 2: not available. Which should probably be.
• 31:42
  Speaker 4: NFL's got some pretty strict rules on redistributing those broadcasts,
• 31:45
  Speaker 4: from what I hear.
• 31:46
  Speaker 2: Right, I mean, it's not like you can just go
• 31:47
  Speaker 2: on YouTube and look for any player's highlights or anything
• 31:50
  Speaker 2: like that. So, here's the thing. I say this not because...
• 31:55
  Speaker 2: I mean, look, this is a dumb scam. Like, this
• 31:58
  Speaker 2: is a dumb scam. But 24 people still fell for it.
• 32:01
  Speaker 2: And so, my point on any of this is... Look,
• 32:05
  Speaker 2: these romance scams are one of the oldest tricks in
• 32:08
  Speaker 2: the book. And unfortunately... People do fall prey to them
• 32:11
  Speaker 2: because people are lonely. I get it. We all like
• 32:16
  Speaker 2: to think that we wouldn't fall prey to it, but
• 32:19
  Speaker 2: who knows? Again, it's not something that discriminates based on
• 32:25
  Speaker 2: how smart you are, this and that. I know plenty
• 32:27
  Speaker 2: of smart people that have gotten scammed out of money
• 32:29
  Speaker 2: in various different ways. Again, I continue to come back
• 32:35
  Speaker 2: to if anyone... Asks you to send them money. Anyone. Like,
• 32:44
  Speaker 2: even your children. Take a pause for a little bit
• 32:49
  Speaker 2: before you... And, like, make sure that it's real. And
• 32:51
  Speaker 2: do some, like, due diligence and research before you actually
• 32:55
  Speaker 2: do anything. Because scammers are always counting on you just
• 33:01
  Speaker 2: jumping at the drop of a hat to move as
• 33:03
  Speaker 2: quickly as they want you to.
• 33:05
  Speaker 3: And.
• 33:07
  Speaker 2: Honestly, another big one, like, look, if you're dating someone
• 33:11
  Speaker 2: and you haven't Googled them and spent 10 minutes looking
• 33:14
  Speaker 2: through the Google results. Good idea. You should probably Google
• 33:17
  Speaker 2: anyone you date at this point.
• 33:20
  Speaker 4: I know we're talking about romance scams here, but I'll
• 33:22
  Speaker 4: divert to another one that is fairly common and where
• 33:25
  Speaker 4: people let their guards down, which is trusting what seem
• 33:30
  Speaker 4: to be financial institutions. Because I think a lot of
• 33:33
  Speaker 4: people don't fall for what you're discussing because the second
• 33:36
  Speaker 4: somebody asks them for money, their guards go up and
• 33:39
  Speaker 4: they don't do it. Obviously, 24 women here did in
• 33:42
  Speaker 4: excess of a million dollars.
• 33:44
  Speaker 2: Crazy.
• 33:44
  Speaker 4: But I know a lot of people whose guards go
• 33:47
  Speaker 4: up there immediately. Those same guards do not seem to
• 33:49
  Speaker 4: initiate when they are told by somebody that sounds like
• 33:53
  Speaker 4: a financial professional that they need to place a wire
• 33:56
  Speaker 4: transfer or they need to sign an account application or
• 34:03
  Speaker 4: grant credentials to them because we tend to trust somebody
• 34:07
  Speaker 4: financial institutions. And increasingly, it's very easy for people to
• 34:12
  Speaker 4: either pretend to be.
• 34:14
  Speaker 2: That financial institution or.
• 34:18
  Speaker 4: Create what seems to be a financial institution without any
• 34:21
  Speaker 4: real registration requirements or any real.
• 34:24
  Speaker 2: Cause for it.
• 34:25
  Speaker 4: So that's the other area where I find people just
• 34:29
  Speaker 4: not really prepared to detect the scam because they're so
• 34:32
  Speaker 4: used to their bank's being safe because it's this building
• 34:36
  Speaker 4: that I can walk into and put my hands on
• 34:38
  Speaker 4: my money.
• 34:39
  Speaker 2: Can I just bring up one other weird point about
• 34:43
  Speaker 2: this scam? Yeah, because it sounds quite entertaining. As part
• 34:46
  Speaker 2: of this, so the other person who was arrested, Taylor
• 34:48
  Speaker 2: Jamie Chan, The first guy who was arrested, Love, is
• 34:52
  Speaker 2: 35 years old. Okay. The second one was reportedly his
• 34:57
  Speaker 2: financial advisor slash agent that he would bring into the
• 35:02
  Speaker 2: conversation with people in order to pretend that he was legit.
• 35:05
  Speaker 2: Got it. Chan started doing this when she was 14. Taylor,
• 35:12
  Speaker 2: I guess, might be a boy. I don't know. He
• 35:15
  Speaker 2: or she. He or she. is 18 now and was
• 35:18
  Speaker 2: 14 when this started. How are you going to believe
• 35:23
  Speaker 2: that there's a 14 year old managing money for an NF?
• 35:25
  Speaker 2: Like I don't like you don't take one look at
• 35:29
  Speaker 2: that person. You're like, Nope, you're not a financial advisor.
• 35:33
  Speaker 4: Or manager or anything because you're a 14 year old, you.
• 35:37
  Speaker 2: Know, also probably can't be held legally responsible or shouldn't be.
• 35:42
  Speaker 2: You're 18.
• 35:43
  Speaker 4: Now you've probably 18 now agreed, but like, whatever this
• 35:47
  Speaker 4: person was doing to influence a 14 year old, it
• 35:50
  Speaker 4: sounds like the first person is mostly to blame on
• 35:52
  Speaker 4: this one. Uh, so long as we're talking about crimes
• 35:57
  Speaker 4: of one sort or another, 40,000 pounds of Pabst blue
• 36:00
  Speaker 4: ribbon beer was reported stolen.
• 36:02
  Speaker 2: Why is it reported in pounds?
• 36:03
  Speaker 4: I don't know. Uh, that is how they made the
• 36:05
  Speaker 4: disclosure though. Uh, The New York Times did the math
• 36:09
  Speaker 4: for us and estimates that it could be roughly 50,000
• 36:11
  Speaker 4: 12-ounce cans of beer, but it could be kegs.
• 36:15
  Speaker 2: It could be any number of different things.
• 36:17
  Speaker 4: The weirdest part about all this is not the theft itself.
• 36:20
  Speaker 4: We've seen a few big thefts of different products that
• 36:23
  Speaker 4: we've reported on recently because you and I just seem
• 36:26
  Speaker 4: surprised that this is possible. Beer seems like a very
• 36:28
  Speaker 4: easy one to deal with as a thief.
• 36:31
  Speaker 2: Have a big party. Live lobster. But.
• 36:35
  Speaker 2: I don't think Pabst can do this.
• 36:37
  Speaker 4: Quote, Pabst is officially starting the clock now. You have
• 36:40
  Speaker 4: exactly 18 days and 44 minutes to return our truck.
• 36:44
  Speaker 4: No questions asked, the company wrote on social media. P.S.,
• 36:47
  Speaker 4: this is real, and we are deadly serious.
• 36:50
  Speaker 2: What does that mean? I don't know.
• 36:52
  Speaker 4: Does that mean that Pabst is not going to press
• 36:54
  Speaker 4: charges if you actually just bring the truck back?
• 36:56
  Speaker 2: That's whatever that is.
• 36:58
  Speaker 4: And.
• 36:59
  Speaker 4: I mean, stealing beer, even if the company who you
• 37:03
  Speaker 4: stole from decides not to press charges, does seem like
• 37:07
  Speaker 4: something the police would be interested in prosecuting regardless. I'm
• 37:10
  Speaker 4: not sure that Pabst can just waive.
• 37:14
  Speaker 2: Well, maybe. I don't know how... This is why I'm
• 37:16
  Speaker 2: not a lawyer. It is their product.
• 37:19
  Speaker 4: But presumably there would be a whole bunch of other
• 37:21
  Speaker 4: laws that you'd have to break in order to first
• 37:23
  Speaker 4: steal the truck of beer.
• 37:25
  Speaker 3: Does... I don't even remember seeing a PBR truck anywhere.
• 37:29
  Speaker 2: Grand Theft Auto comes to mind. Maybe I'm just cynical
• 37:32
  Speaker 2: about these things at this point, but does the fact
• 37:34
  Speaker 2: that Pabst gave a very specific amount of time left,
• 37:38
  Speaker 2: does it make you wonder if this isn't real?
• 37:42
  Speaker 4: I don't know what the specific time is, if it
• 37:44
  Speaker 4: has to do with their insurance or something.
• 37:47
  Speaker 2: I got a lot of questions. We owe this league
• 37:51
  Speaker 2: this much beer on this date. If we don't have
• 37:52
  Speaker 2: it back, we void the contract. I don't know. Speaking
• 37:55
  Speaker 2: of which, time running out for Live Golf, apparently getting
• 37:58
  Speaker 2: ready to file for bankruptcy. And the players who have
• 38:03
  Speaker 2: been promised hundreds of millions of dollars reportedly being offered
• 38:07
  Speaker 2: buyout packages for pennies on the dollar.
• 38:12
  Speaker 1: And they'll take it.
• 38:13
  Speaker 2: Probably. Probably. Let's take a quick break, and we're back
• 38:17
  Speaker 2: tomorrow with more Financial Exchange.