Are Banks and Markets Ready for What’s Next?

[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. [00:00:13] Speaker B: This is another money show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.R. and Anthony are committed to helping more Americans like you optimize their income, reduce their tax risk, and reach financial freedom. So let's start show. Here are your hosts, Anthony Correo and J.R. rochford. [00:00:37] Speaker C: Here we are, folks. Your hosts, Anthony Correo and J.R. rochford. Taking a break from our day to day as financial advisors with Rochford Associates, fourth generation family practice right here in the greater Phoenix area. We're taking time out of our day to talk to you about things that they may not talk on those other financial radio shows where the last thing you need is another money show. But we appreciate you being here, especially Junior. He's very appreciative and he's back, so see how this goes. [00:01:09] Speaker D: I'm not gonna lie, last week's show was the best radio I've ever heard in my life. So I don't know if you guys missed me. I missed you, Sam. How are you guys doing? Sam, you okay? Thank you so much for taking care of my little bitty buddy Anthony. You know, actually, it really was a good show. [00:01:27] Speaker C: It's funny, Sam really carried the show for me, so I'm very appreciative, 100%. [00:01:32] Speaker D: Sam's got back issues now from carrying you, so I don't know if I carried. I actually listened on the stream on Saturday here on the east coast and I was taken aback. I was like, I think this is the most I've ever heard from Anthony in a show. [00:01:48] Speaker C: And it was nice. [00:01:49] Speaker D: I thought it was a good episode. I'm sure we'll get some hate mail. Bring it on. We'd love to hear from you, good or bad. But I thought the show was good and we had a good conversation. I. I'm not sure where you're getting the hate mail. I mean, that was a great show. You guys covered a lot. I mean, I, I listened to it twice. I listen every week to the show because when we're actually recording it, it's hard to really wrap your mind around what was said. It happens so fast. But I mean, you guys covered AI McDonald's food and water, gold cryptos. I mean, you, you Talked about a lot. I mean, it was so. It was good. My thing, when Anthony says we're not like the other shows, even though that was closer, that certainly wasn't just my usual current events and how they're going to affect your future. You were financial. You definitely, Anthony, good Lord, you've become mini me. I mean, your advice about food and stuff, I'm like, I don't know where you got all that end of the world stuff, but amen, because I'll tell you what. And you know what, Telling people as a financial advisor that they should have food and water. What's wrong with that? And how do you. How do you spend your money? You know, if you. If your job is to tell people how to protect their money, grow their money, spend their money, save their money, be taxed on their money, why not help them in case we did have a natural disaster or God forbid, World War three or whatever. [00:03:04] Speaker C: So I don't know in other states too, because Arizona really doesn't have natural disasters. We don't have these rolling blackouts. But if you talk to anybody on the east coast or people that have to store for winter in Montana, like, this is just normal stuff, but we kind of have some luxuries in Arizona. So you're. [00:03:21] Speaker D: You got that right. [00:03:22] Speaker C: Still helps to be prepared. And I did forget to talk about those tower garden. I think I forgot to talk about tower gardens. And I actually just moved mine into the office. So if you can see that behind me, I got all our lettuce and peppers grow. [00:03:33] Speaker D: You're on radio. So the answer to that is no. But maybe on the YouTube channel it'll pop up. Yeah. So Anthony grows his own food, which is nice. He grew his own beard, too, which is even nicer. I don't know which one's more rampant, your beard or the tower garden. [00:03:45] Speaker C: Yeah, I look beautiful again. [00:03:47] Speaker D: It is. You're gorgeous, Anthony. If you don't know, this is the eye candy of the office. Thanks, Susan. We still remember Susan saying that. [00:03:56] Speaker C: So she laughed so hard. [00:03:58] Speaker D: You know, Anthony and Sam talked a little bit about end of the world stuff, which made me so proud. I was the proud parent of two beautifully young men. It was just great. It brought a tear to my eye, I'm not going to lie. And the tower garden, which. Yes, you failed to mention. If ever. If things got weird. I mean, what did you learn in 2020 when you couldn't get hand sanitizer, Clorox wipes and toilet paper? People get squirrely, as Sam would say. People get Froggy. So you. Sketchy would be my word. If it ever happens with gas or food or meds, watch the heck out. So, Anthony, your advice to have some food and water. Brilliant. MREs. You said the company's name wrong. Looking for sponsors. It's not. Well, I don't know what you said, but it's Augustin Farms. So anything like that. If you liked last week's show and you want to get more prepared, we'll help you with that. You know, we can help you with generational wealth transfer with, you know, Roth conversions with all of this stuff from A to Z. So anyway, I gotta get into the show. I can't keep talking about how wonderful you two were all this hour. So. [00:05:02] Speaker C: I can hear it though. [00:05:03] Speaker D: Can you? I mean, the only thing that was missing was unicorns and cotton candy. The show was candy to my ears. Anthony, we good? Can I move on now? So we. And if I have time later, I can. I can read parts of it. We. When people want it, have a list. It's. I call it prep 101 list and it's not inclusive. My cousin Frank added a couple items to it, just, I don't know, a week or two ago. And when you give a list to somebody of what they might want to consider having, everybody has additions. But I kept it general and just like two pages. So it's not a book. There's books out there, by the way, so. But if you want our list, we'll be glad to email it to you. All you have to do is reach out to us at 623-523-0444 or email teamnothermoneyshow.com and we'll send you the list again. Two pages, talks about fire starters, you know, talks about just, you know, flashlights, batteries, stuff that you might want to consider. So moving on, let's bang out the shout outs first. Shout out, obviously, Sam and Anthony, thank you. Thank you for letting me take a little. I went with some buddies. There were 11 of us and we all went to a different state and played cards. So we just. We went to several different casinos. I mean, we were in Nevada, we were in Laughlin. We're old, so we can't go to Las Vegas. I don't think they'll let us in. But we went to Laughlin, played in Harrah's and Aquarius and Riverside and just had a great time. So that was fun. And I'm ready to work again, so I'm glad to be back. But anyway, Shout out, Joe. I'M saying it every week now. Joe, Jason, Jack, thank you so much. If you're familiar with the Patriot Radio News Hour, it's on a Sister Salem Station, 10:10am Monday through Friday, 9 until 10am Arizona time. Really, really good. I've been listening to Joe for at least 15 years now. He is where I get a lot of my technical information on the financial side of things. Yes, I do my own work too, but I mean, Joe is just, he is so on top of things. So. And I am a regular guest now every Monday. Last Monday I focused in on the banks and I do want to talk about banks a little bit today because I haven't gotten into that much lately. But it was focused on the banks. So if you, if you ever want the episode over there, I can send that to you too. And check, check it out. You know, especially on Mondays when I'm there, hopefully I don't get a lot of time to talk. It's kind of like if there's somebody on our show, I talk a lot. I admit it. Anyway, so thank you so much to those gentlemen over there. We've had some new people come in the office today. I love that. I love meeting new people. We had one of the people were a mother, daughter and maybe they listen to the show. I kind of cautioned not to because this show, it's an acquired taste. This show is somewhat, I mean, it's not a financial show. It's not an hour long infomercial. It's very in your face and when you first meet, some of you don't want to scare them away. So I told them we do a show in case somebody else tells them about it. But I cautioned them and said it's in your face. So we'll see, we'll see if they listen. But it was so wonderful to meet new people and if they're listening. Thank you so much for taking time with us because that's what we do during the week. Our show, when I say it's not an infomercial, our show was designed to help you become prepared. Not scared, proactive, not reactive. I think that's good life advice, not just good financial advice. You know, when you talk about Anthony, you actually said moderation and diversification last week. I love that thought in finances. I mean, I love the thought in life. If you open your refrigerator and all you have is one item, you know, a day or two later, that's going to get pretty old. You have a plethora of things in your refrigerator you need to do that with your life. So we help people with all these different things. You know, we're not just the financial side. We, we do talk about precious metals, cryptos. You know, whether you like that area or not, it's coming like a freight train. So at least be able to work in the space and adapt a couple of things for you. You hit and I'm gonna, I'm gonna piggyback off of your show to start, and then I've got a little list of what I want to cover. You talked about McDonald's and it was funny because I know I'm slightly paranoid. What's the thing? The phrase just because you're paranoid doesn't mean they're not out to get you. I know. It's a fine line between being smart, being awake, being aware, being nimble, and being paranoid. You guys talked kind of in depth about McDonald's. I had over the weekend no less than five different articles or ads or whatever from McDonald's pop up on my phone. It was very bizarre. And it was. After I listen the show twice, all of a sudden McDonald's comes up. I did decide to read some of them and I looked for a couple articles. One I'm going to read to you what my old friend I haven't gotten to in a while. Zero Hedge. On 28th September, put out an article about McDonald's. So your topic was timely. The name of this article, it's a McDonald Mc disaster. I love that. So McDonald's shares are on pace for their worst annual decline in nearly a quarter century after the burger chain disappointed Wall street last week in its investor day with CFO Ian Borden warning. Oh, I wonder if he's related to Lizzie. Have you seen that new Lizzie Borden show on Netflix, Anthony? Ooh, that's creepy. Oh, talk about in your face. Anyway, Ian Borden warning that its US business would be slightly negative in the third quarter. Slightly? Yes. Shares of the burger giant have fallen nearly 31% since their February high. That's pretty slight when you lose a third of your share price. Demand woes are emerging as the US price of a Big Mac jumped 23% from 2019 to the end of 2025 according to the economists Big Mac index. I didn't even know there was a Big Mac index, but I'm excited about it. While those increases help to offset the higher ingredient labor and fuel costs, the days of a cheap burger are long gone. The prices have gone up substantially and it's no longer viewed as the best value in food. Said Jacob Aiken Phillips of Melius Research. Ba, ba ba. McDonald's answer to sagging demand has been an 8.5 billion dollar multi year overhaul involving technology resembling robots. Make my burger now. Yeah, I think so. Involving technology, restaurant upgrades, food quality and service improvements, and an effort to revive its play places. But the turnaround plan failed to ignite optimism on Wall Street. So interesting. Can I take another minute on McDonald's and read something to you? Kind of gross or no. You want to hear why McDonald's sucks or no? No, allegedly McDonald's don't sue me. These are the thoughts strictly of Anthony, not me. Anyway, do you. Do you want me to read something to you about McDonald's, how gross it is, or no, just move on. [00:12:16] Speaker C: Are you gonna just. Yeah, do it. You don't have to ask permission. [00:12:19] Speaker D: No, I do, because this. I don't know if I should be. This one. I'm on the fence. So this McDonald's loses lawsuit against chef Jamie. Chef. Oh, okay. I thought there was a chef at McDonald's. Like, hang on a second. This is fake news. So McDonald's loses lawsuit against chef Jamie Oliver, who proved that the food they sell is unfit for human consumption because it's highly toxic. Chef Jamie Oliver won a lawsuit against the world's largest fast food chain. Oliver demonstrates how hamburgers are made. According to Oliver, fatty cuts of meat are washed with ammonium hydroxide and then used to fill the hamburger patties. Even before this process, the TV presenter says this meat was unfit for human consumption. Oliver, a radical activist chef taking on the food industry, says, we were talking about meat that is sold as dog food. Wow. And then served to humans. Aside from the quality of the meat, ammonium hydroxide is harmful to your health. Oliver calls it the pink slime process. What sane person would put a piece of meat soaked in ammonium hydroxide into a child's mouth? This might be crazier than I thought. In another initiative, Oliver demonstrated how chicken nuggets are made. After the best parts are selected, the rest, fat, skin, cartilage, eyes, bones, head, feet, is subject to a mechanical separation process called canica, a euphemism used by food engineers. This blood pink paste, which is deodorized, bleached, and refreshed and recolored, is then coated in flour and deep fried. Man, I'm getting hungry. It is typically fried in partially hydrogenated oils, in other words, toxic substances. The food industry uses ammonium hydroxide as an antimicrobial micro microbial agent, allowing McDonald's to use its Meat in its hamburgers that is unfit for human consumption. Okay, I need to stop this. Yeah. [00:14:30] Speaker C: Saying everywhere that it's. That didn't actually happen. [00:14:34] Speaker D: Seriously, I'm so excited. Anyway, and, and I think some of [00:14:37] Speaker C: the lawsuit, that would have been bigger news, but also if he had won. Like how are they still selling food? [00:14:45] Speaker D: Well, come on, don't be naive. That money talks, you know, what walks. I don't know. We heard about the Pink slime know 15, 20 years ago and they. There was a lot of talk about how there's less food in this food than we think there is. I remember you and me and your mom watched Supersize Me, that movie Super Size Me. We literally did not get you or we didn't eat McDonald's. I don't know, two or three years. And if you remember, we did eat [00:15:12] Speaker C: McDonald's while watching it. [00:15:14] Speaker D: That is a true story. Anthony reminded me of that Sandy, his mom, my wife currently, she actually went out and bought McDonald's and we had McDonald's where we were watching Supersize Me and then we didn't have it again for years. And I mean they put the hamburger like they leave the fries, the hamburger on the counter as days and weeks go by and it doesn't change, it doesn't go bad. So I don't know how fake this news is. And I don't know, I mean, I'm reading somebody else's work. I just know that that food is probably not as healthy as you'd like it to be. And it's crammed with sodium and other things too. So why don't we move on from McDonald's if that's okay. Let's go into. Let's talk about, since we're on stock and financial matters, by the way, that your show, another thing that I really liked, it was more financial than I do and it was a nice break. It was a nice change of pace. So good job on that. So continuing with financial from CNBC on 28th September, Nvidia share buyback plan gets 150 billion with a B dollar boost. So I came across this in a couple sources and I was like, that's a lot of money. We don't, you know, we talk in terms of trillions now. So these are amateurs. Nvidia. And I'll tell you in a second why this is important. Nvidia has authorized an additional $150 billion to its share of buyback program. How is this unreal? Teflon, Dow, the S and P, the Nasdaq how are these markets staying so high 17 years after the end of the 2008 correction? Well, stock repurchasing, stock buybacks, we've talked about it over the years. So here's a great example. The chip giant said it marks the largest share repurchase authorization increase in history. Let me read that one more time. The chip giant said it marks the largest share repurchase authorization increase in history. Nvidia, when we keep talking about the miracle little basket of stocks that are floating the s and P500, you know, if this, I mean this market is priced to only allow for perfection. So if there's a problem with this, we got big problems. Combined hyperscaler capital expenditure is projected to to exceed 1.3 trillion by 2027. Well, 2027 isn't for like, I don't know, four or five months from now. Nvidia said on Monday it has authorized an additional 150 billion to its share buyback program, taking its total to $235 billion amid record spending on artificial intelligence. You know what, kids? My take on this, you better hope that this works and keeps it floating the markets because you know, this sure seems like Tech Bubble 2.0 to me. Except it's way bigger and we are way more fragile and the economy is way more hurting. Starter houses didn't cost $400,000 in 1999. You know, the average wages haven't kept pace. You know, mortgage interest rate popped over 7% a couple weeks ago. We're looking at 7 and a half percent interest rates. And Anthony, you guys did a great job last week talking about how that's the average of notes, you know, since they've been tracking them. But the people that got two and three quarters, three and a half percent notes for those several years, they did, they think that was normal. That wasn't. It was an anomaly. We'll see what happens. So I can just, I this, this is all, this is all very scary. I did hear this morning that Oracle, as long as I'm in the chip space, the tech sector, Oracle is leasing chips. Anthony, did you hear about that? Maybe leasing chips? And I just heard it this morning. Let me just put one little thing here to read later. I just found this today. So I want to know. More chips get sold. So let's see here. Oracle is leasing advanced AI chips to major tech firms, including a reported 7 billion with a B5 year deal with 10 Tencent T E N C E N T Tencent for access to about 100,000 chips housed in Oracle's Southeast Asia data centers. Oracle's chip leasing business. Oracle is actively involved in leasing advanced AI chips to major technology companies. The strategy allows firms to access cutting technology. Sorry, cutting edge technology, without the need to purchase the hardware outright. One of the most significant recent agreements is with Tencent, a leading Chinese tech giant. So they're selling to China. Okay, that's good. Here are the details of this. Okay, I don't need that. Let's see. Implications of the deal. This leasing arrangement allows Tencent to utilize advanced AI chips that are not available in China due to export restrictions. So wait a minute, I thought these were going to China. So I guess they can't internally get these chips at Tencent. Market positioning. For Oracle, this deal diversifies its customer base, reducing reliance on a single client and potentially stabilizing revenue streams. Good and better. Because I don't want tech, you know, bubble 2.0. Last thing here. Strategic advantage. The ability to lease chips rather than sell them outright. Helps navigate complex international trade regulations while meeting the demands of tech firms for high performance computing resources. If you're not positive what I just read, I got you. I'm not really sure that I'm positive what I just read either. So just the whole thing, it's very. Everything we deal with now is about Flock cameras, robotics, AI tech. It's. I don't know, it's kind of. Everything's changing very fast. Speaking of which. Let me see. I got some here. Unprecedented risk disclosure. In an unusual addition to its risk factors, Anthropic formally warned investors its frontier AI models could potentially pose a catastrophic or existential risk to humanity. Really? Is that really what I'm reading here? And may develop the capacity to resist shutdown. You guys talked about hugging face last week. And AI escaping. The reason that I bring up Anthropic. They're getting ready after the midterm elections to have an IPO. You know that, right? SpaceX doesn't scare me. SpaceX never talked about 10% or within 10 years. There's no talk about the end of civilization or humanity. There is with AI. So stop this. Don't let them have an IPO. Up to $2 trillion is the expected IPO valuation. Recent revenue. I love this recent annual revenue. 4.6 billion. Okay, so I'm an anthropic. They're saying that the IPO value will be 2 trillion, but the revenue is only 4.6 billion. Wait to hear this. Operating loss. 8.06 billion. So the revenue is 4.6 billion, but the operating loss is 8.6 billion. [00:22:26] Speaker C: Yeah, numbers are made up. Wasn't SpaceX like the first trillion dollar company and now this one's just going to be we're 2 trillion. [00:22:35] Speaker D: I guess this is just insane. I can't wrap my mind around anything going on. I don't know, I mean it's crazy. So since it's so crazy, let's get out of there. Let's get out of AI for a minute. We do have some towards the end of the show if we get to it. Continuing on the financial side, Walmart denies using personal information to set prices as it expands digital shelf labels. We talked about Walmart within the last year a couple times. Walmart is moving. Oh, this is on the 28th of September from the end time headlines. Walmart is moving to calm shoppers as it rolls out digital price tags across the stores with CEO John Furner pledging that the retailer will not use personal data to set what people pay. Good for you, John. I appreciate that. In a statement posted on the company's website on Friday, Ferner said the Bentonville, Arkansas based chain is not using income, shopping history or a customer's willingness to pay to determine prices and will not start well. And plus, he just told you exactly what they're doing. You know, when I was little, there was a cookie jar on the counter. And you know what my mom said before she left? She said don't touch the cookie jar. She wasn't all the way out of the door. And I touched. This is all baloney. Of course you're doing this. Why do you need digital pricing anyway? We don't set different prices based on who you are or the time of day. And we won't. He wrote so. Anthony, you're wrong. He won't. He wrote it. Whether you're buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it's never a reason to charge you more. That's fantastic. The same rule he said applies to Sparky, Walmart's artificial intelligence shopping assistant. Sparky? Are you kidding me right now? The bot will not raise a shopper's price or hide cheaper options that meet their needs. Of course it will. Everything I'm reading here go the other way. Ferner said that kind of targeting would break the company's everyday low prices. Model for pizza Spark. I'm gonna choke to death. I'm gonna need Sparky to come over and give me mouth to mouth resuscitation. [00:24:45] Speaker C: Sparky, I only trust the paper clip from Windows 95. [00:24:49] Speaker D: Correct. If we have time. Today I'm going to talk about the new meta, the paperclip. I loved the paper clip with the little eyes and I used to love that guy. There's a new very cute personal assistant, AI Bot. There's Clippy. Sam said Clippy was his name. I liked Clippy. Clippy got chippy once in a while. When you ignored him, he'd start moving around, making sure you saw his little dumb, dumb clip. Muse, the Facebook meta, whatever. Muse is their new cute little boo. The world's being taken over and we're, and we're laughing right now about it. I don't know. Let's do this. Let's take a break because I have some really, really important things to talk about today. I know, I know that Anthony, you find that hard to believe, but I actually have something of substance to say today. So we will be right back. Thank you so much for being with us. As you know, and as we point out every single week for four and a half years, we really, really appreciate you being here. Please tell people about us. Please reach out to us. We want your show ideas. If you want a list of things to prepare so you're prepared, not scared, we'll hook you up. If you want any of the articles we reference, whatever. If you want Joe's show via podcast, I'll get that to you. We are at 623-523-0444 or you can email team anothermoneyshow.com the other thing, we actually are financial people. So if you need, if you need a second opinion on your finances, Anthony's pretty smart. You know, he doesn't look it. Anthony's not funny. He's fat and looks as though he should be, but he's not funny. If you need a second opinion on your finances, Anthony's pretty smart. I always tell people I'm big picture storyteller. I got the experience. I was here for the tech bubble. I was here when a plan in a building. I was here for 2008. And Anthony can back test your funds and see how they would fare today if we have another 2008. So let us know if we can help you. We'll be honored. We'll be right back. [00:26:38] Speaker B: All of JR and Anthony's listeners receive a free consultation just for listening to the show. Visit anothermoneyshow.com. [00:26:58] Speaker C: Hi, I'm Anthony Crayle, co host of another money show airing on 960 the Patriots Saturdays at noon and partner of Rochford and Associates in Sun City. If you've heard our show, you know, it's more news based and how current events could affect your finances versus an hour long infomercial. Well, now it's time for that infomercial. But I don't need an hour each week to tell you what I can say in 60 seconds. The key to a happy retirement is income, income, income, income. Clients with low assets and those with high assets all have one thing in common, a fear of running out. Assets come and go. Income is forever. Self funding pensions is the key to a happy retirement and we can help you do it. Reach out to us at 623-523-0444. That number again is 623-523-0444, or find us on the web at another money show.com and let us help you not worry about your retirement. [00:27:59] Speaker B: This is another Money show. [00:28:03] Speaker D: Welcome back to another Money Show. Thank you so much for being with us. So we appreciate it. We, we really, we want to meet you, we want your show ideas, we want you to come and sit with us. If you've got an old 401k. If you're worried about the market, you know we, this year in March was the 17th year anniversary of pretty much a straight up financial market since the end of the 2008. Sam, you referenced 2008, I believe you and I'm not positive you said this, but I think you said The S&P 500 was down 37% in 2008. The aggregate, the correction in total of that October of 07 through March of 09. I believe I had read the S&P 500 total downturn for the 17 months was 57%. [00:28:50] Speaker C: She was going January to December like [00:28:53] Speaker D: a year over year. I believe that's crazy but I mean think about the whole duration because a lot of people got real scared. They got the deer in the headlights and they, they, once they were, you know, when you catch people, if they're down 10, 15, 20%, you catch them good. I mean you're really not supposed to be in financial markets if you don't have a risk tolerance for it. So if you're down 10%, you panic, you press not, not appropriate necessarily to begin with, but once you get down around 20%. And again when I say I have the experience of being in the office when those things have happened, the psychology of money, people pucker up if you're down more than 20%. The experience I had was people like I can't, I can't get out now. I mean I'm not going to lock in that kind of loss. So. But what if you went down from. Just hypothetically, let's say we had a 2008 repeat come up soon where the valuations are. You know, look at the Shiller, the Cape Shiller. I mean, look at the Buffett indicator. Look at all this stuff right now. So let's say we went down 57% over a year and a half now. Boy, that's, that's gonna be some big movements. By the way, Warren Buffett retired. You guys didn't bring that up last week. He retired the day after our show two weeks ago. So. [00:29:55] Speaker C: And, and I thought he had retired like months ago or did he just say he was going to and then he lingered for a bit longer? [00:30:02] Speaker D: Well, he had to do the board transition. He had some stuff to do. But no, he's, he officially retired two weeks ago. And when he retired, I think the presumption is because he was getting up there in age little longer in the tooth worn. I don't think that's really true. I don't know this to be fact, but I think he stepped down and retired so he could spend more time listening to another money show. He found out that we've been on for four and a half years and that you can find every single episode on Spotify, Amazon, Google, all these things. And that's what I think he's looking forward to this time. But I am not sure. So he's always been one of those guys that lives super humbly, like drives older Buick or Cadillac or something. Lives in the same home, Used to eat the same thing for lunch every day, read the newspaper. I'd be curious now that if he is really stepping away and retiring, does he enjoy the fruits of his labor? Or will or will some family be seeing him on a carnival cruise this winter? He's gonna blow it all out now. He's gonna spend billions a month. He's, he's gonna blow up. He's know I met him. I don't mean the name drop. I told you guys before I met Mel Gibson, I call him Mel. A lot of people call him Melvin, but I've met him. I met Jack Nicholson. I call him Jack and stuff. I met Warren Buffett. This would have been 2004. I hung my license at a firm called Woodman Financial Services. No plug to them. I've moved on. But I met Warren Buffet Buffett at a steakhouse in Omaha, Nebraska called Piccolo Pete's. So we are always looking for sponsors. If Piccolo Pete's wants to Step up, Warren Buffett. I'm sure you got some extra money if you want to sponsor the show. August and Farms. We're ready for your. Your money. Let's move on a little bit. So a little current events. I have a lot to get to. I just knock out some of the general stuff. Russia. I read this morning that Russia is threatening a potential nuclear strike to the region near Poland to NATO. So the geopolitical side of everything going on scares me and I won't get into this because I don't know what's going to happen. But you know, Anthony always talks about things cycle. We've had a great depression, we had world wars, we've had, you know, we've had viruses before, Black plague. We just never had it all at once. I know Covid's rising. My buddy that I play cards with. Kevin's in the hospital right now with COVID Kevin. I mean, I don't think he listens to the show very often, but I'm thinking about you, Kevin. He's got Covid, pneumonia and rsv, whatever. All those things are in the hospital. So I don't know. It's everything at once is what bothers me. When I was a kid, Russia was going to, you know, nuke us. That's back on the table. Let me just read one little segment of what I printed off this morning. Russia warned it could use nuclear weapons if NATO tries to isolate Kaliningrad oblast. I don't know, even if I said it right, NATO responded by saying it is a defensive alliance, that none of its activities threaten Russian territory. Oh, good. That calmed him down, I'm sure. Overview of the Russians nuclear threats. Russia has issued warnings regarding the potential use of nuclear weapons if NATO attempts to isolate Kaliningrad oblast. This threat was articulated in a diplomatic document sent to NATO where Russia stated it would be prepared to use its entire arsenal, including nuclear capabilities, to defend its territory. So Russia's on one side, we're in NATO, we're on the other side. So we have to watch this stuff. Even though it seems far fetched and unlikely, we better be aware that it could happen. NATO's response. NATO has firmly rejected these threats, emphasizing that it is a defensive alliance. The organization clarified that none of its exercises or activities pose a threat to Russian territory. NATO stance is to call for Russia to cease its aggressive rhetoric and actions. It just. There's so much on the table and day to day, it's like the calm before the storm. Everything seems so normal. Anthony, you're in Glendale. Sam, you're in Georgia, part of our team. There's a whole team here behind this radio show. It's not just us, it's more. There's people in what Tampa, Florida. People in Georgia's, people all over. There's people in Tucson that, that are. The people that have us doing this are in Tucson. We're all over the globe to do the show. I don't think we're in Colin and Brad though yet, but we will. We're, we're going to be there soon. So let's. I, I didn't mean to get into Russia, but I want to, I wanted to just tell you there's a lot going on behind the scenes and how does that tie in with what we do? Because money goes up slow compared to how fast it goes down. The old expression, money takes the elevator down and the escalator up. We haven't had a sustained correction since March 9th of 2009. And I need to hammer home to you, I don't think it's going to keep going like this forever. The thing with why do I bring up Oracle, why do I bring up the biggest stock buyback in the history of stock buybacks over at Nvidia? Because if this stuff doesn't keep going well, we're going to have a lot of pain in the financial markets. I got to see some of it in my career. Anthony's been here eight years and really hasn't seen it. The March of 2020 happened so fast. Anthony did not have time to see the psychology of down markets in this job. He just didn't have time. We were not essential workers as you guys referenced last week. So we didn't, we didn't even get to experience our own downturn. So Anthony, you're going to get to see one. It's coming, I think, I'm pretty sure. I think it's coming. And you know what is going to happen? As always, the rich are going to get richer, the middle class are going to shrink and the poor are going to hover. Nothing is going to change in our world. You know, in the 90s when I came into this industry, there was a term that, it's very well known to this day, buy and hold. You're not smarter than the market. You're not, you can't, you know, time the market. You got to buy and hold. And it was interesting because there was a lot of validation behind it. They had these charts that showed you if you buy and hold, you're smart because if you miss in a 10 year period, if you miss the 10 best performing days in the market, it changes your returns over the decades so dramatically that you can't try to time this market. I can also tell you after the tech bubble burst and after a plane hit a building, not too long after that, all of a sudden every advisor out there was screaming, buy and hold is dead. Buy and hold is dead. You better watch your stuff. You better look at your 60, 40 split or your 70, 30 split or whatever your advisor, you better watch things because you can't just buy and hold anymore. Well, it sure the heck seems to be back to me. Because if you believe in the age old philosophy of buy low, sell high, which is the cornerstone of financial planning, if you subscribe to that this past 17 years, it wouldn't work. If you have sold over the last 17 years. And I think selling doesn't have to be an all or nothing proposition. You dollar cost into things, you can dollar cost out, you can capture some profits, but it's for 17 years. As the markets are setting all time high after all time high intraday and closing records, perhaps you should be realizing some of your gains. So, I don't know, come see us, let us see you on your situation and we'll see if we can help you. But the whole buy and hold thing sure seems like this last 17 years it's been alive and well. So we'll see how it works out. You know, last week when, when Anthony and Sam dug into food and water and all that stuff, I just, I was, I was so happy. Because financial planning should be holistic. You need to know if people have an umbrella policy. You need to know what they have in physical cash at home. You need to know, could you weather a cyber attack? Could you at least you know, for weeks or months or whatever your comfort zone is. So it doesn't just start with stocks or bonds or cryptos or banks or whatever you hold. It's got to be holistic. And that's what I thought they did very well. I said I would get into banks and I really think that that's a good idea. Is that okay? Anthony, whenever I stop and ask you if something's okay, do you know why I do that? It's not because I value your opinion or care what you say. It's because I can't breathe. This show is one long sentence. I don't take a breath while I'm talking. Have you ever noticed that? [00:38:21] Speaker C: Yes. Because you ask a lot. You say, anthony, what do you think? And then you don't stop talking for me to chime in. So now I wait and I'm like, well will he pause or is he just gonna keep going? Even in this example, you're like, hey Anthony, do you know why I say your name? It's because I can't breathe. And then do you know what you did after that? You kept talking. This time I gave you a break because I can see you choking back there. So you have to live. I haven't gotten my life insurance out [00:38:50] Speaker D: on you yet when you just said Willie Paws. That's so funny because that was my nickname in college. Willie Paws. I want to give you something totally random here real quick just because you know, we want to provide a service on this, this hour long non infomercial, not just fun and excitement and end of the world stuff. So I heard something and I decided to check it out to see if it's true. You know, we've, we have a little bit of a focus as a fully independent fourth generation fiduciary veteran owned practice. We, you know, I mean we had Rick Kreiberg on. That was one of my favorite episodes because I just thought it was very important for veterans or family members or friends of. This is something that's interesting. I found this on Live Now Fox and then I went to TSA. Anthony, be so proud of me. I went to TSA.gov to make sure I'm bringing you real news. TSA military lanes available at 34 airports for service members, veterans and their families. I had no idea. We just traveled what two months ago we were in. Where were we? Aspen, Colorado. I didn't know this was a thing. So this is either brand new or people need to know about it. So the tsa, the Transportation Security Administration, a lot of people think it stands for taking away scissors. That is not true. It's actually Transportation Secretary administration is honoring our nation's heroes with special security screening lanes at 34 airports across the country. The lanes are available for current service members, veterans and their families. So I could even take Sandy and Jay with me on that special line if we're at. And Phoenix Sky Harbor International Airport is on the list of 34. So says here TSA says you do not need to be in uniform to use the military lanes and just need to show your valid military or veteran ID to enter the lane, which I have with me all the time. So I'm in on this. If you are in the airport without dedicated lanes. So if you're not one of the 34, the TSA says you can show your valid Valid military or veteran ID to the lane monitor. And. And you can get front of the line service. So that's fantastic. Yeah, I had no idea. So, Anthony, when we travel, I would be able to get your brother and your mother through the line easier and faster. Do you think anybody ever noticed that I exclude you? Right. Do you think anybody ever notices when I exclude you? Like when we started the show and I said, sam, you know, I missed you, I didn't mention you anything you even noticed. Okay, so let's move on. I want to talk for a minute about banks. I said I would. That's what I focused on on Monday on Joe's show. And I've already gotten feedback on that show, so I think it's important. Let me start with a little article for you. This one is from the end time headlines on 28th September. You can tell I was busy on the 28th. I spent several hours just reading, reading, reading. Wall Street Giant warns AI agents could trigger a new kind of bank run. So, I mean, I. I've been telling you guys, if you've been hearing us for four and a half years, if you've been anywhere near me for the last, I don't know, two decades, I've been telling you there's no money. I've been telling you we've already gone cashless, primarily. We've gone digital via Zelle and Venmo, and credit cards and debit cards and ATM machines, you know, I mean, we've done it to ourselves. So the FDIC, if you pop your way over to FDIC.gov and look at their own numbers, go into statistics at a glance, then go into dif, which is the depositor insurance fund. The most recent quarterly number of the insurance on your money, 1.43%. I mean, wrap your head around that. Oh, you're safe as long as you have under $250,000 per account. You've got the FDIC. Yeah, well, you know what they have in reserves, 1.43% coverage on your money. So good luck. Mark Cuban, if you're listening, you're going to be fine. We've proven that with Silicon Valley Bank. The rest of you, I'm not sure you're going to be as fine. Pardon me, but we. We shall see. Anyway, so with all of our talk about Flock cameras, robotics, AI, I found this interesting. Apollo Chief economist Torsten Slok warned Sunday that AI agents such as Meta's Muse, that's the new version of chippy clippy, Meta's Muse could soon shift Household cash out of bank accounts paying 0.1% and into accounts paying as much as 5%, a move that at scale could drain the cheap deposits banks use to fund loans. So this would be a systematic. This would be the beginning of a systematic failure. If AI starts assisting you. If you turn to your museum assistant and say, muse, where can I get more money than I'm currently getting at? Say I'll just name three banks, Wells, B of A or Chase. And Muse leads you towards Ally bank or Capital One, Slash Discover or American Express. And I'm just giving you out names that I've heard before. That would be a problem for you banks now wouldn't it? AI agents are tools. Let's see here. I'm getting a lot of spam calls today. This is very weird. So let's see here. AI agents are tools that can act for a user, not merely answer questions. Slok argues that if enough households let them hunt for yield, the banking system could lose a core source of funding. On a $10,000 balance, a 0.1% checking account earns $10 a year. At 5%, the same money earns $500 a year. Sloc's note lists 11 fintech and online accounts paying between 3.3% and 5% Adelphi. Adelphi leads at 5%, followed by SoFi at 4.5%. The FDIC average he cites are 0.4% for savings and 0.1% for checking. I thought that the Fed just raised rates. I thought that savers were going to get rewarded. I guess I thought incorrectly. Let's see here a little bit more from this article. Banks pay savers little and lend the money at higher rates. That spread is central to their profit. If every household used AI agents to optimize the return on their cash balances, banks could lose a large share share of the cheap deposits they rely on to make loans, which would be a problem for the entire financial system. An expert from the report said so. And God forbid that we as the people ever got ahead instead of the big banks. You know, it'd be a shame if somebody ever helped us. Maybe I'm getting to be in favor of AI. I don't know. Meta launched Muse on September 8th. Plaid, which connects the agents to more than 12,000 US financial institutions and apps, say users can view balances, transactions and investments and mortgage details. Plaid's announcement does not say Muse can move money between accounts. Slok frames the sweep as something that could soon happen, and his warning assumes widespread household adoption. As soon as the word gets out that Muse can help you find higher rates. It's kind of like having an insurance broker for your home and auto insurance broker for your medical and health insurance. This might change the landscape. Banks. Nate Guraki or Jiraki, who knows, co founder of the ETF Institute, said both AI and crypto are coming for traditional banking and urged politicians to ease the transition rather than resistant. Oh, they're, they're going to. So. And by the way, your banking advice is going to be from Muse, from Facebook. And now I'm going to get banking information from Facebook. So that's good. I do want to tell you something. Let's see here. Sam, put something on the board. Whenever I see Sam's name on the board, I like to see what he says. If anyone out there is worried about an investment risk and using bank CDs, you can get a higher rate of return on that money using insurance. Insurance companies with 100 reserves. Brilliant, Sam. When people are in our office, we talk about that all the time. We have CD alternatives. We, we kind of help people with how much physical cash they should keep at home based on their situation, comfort level, fire, flood, burglary, all the different factors. We also tell people you have options. These insurance companies, they have things that are similar chassis to, to CDs or one year, two year, five year. You know, I've seen some that are 20 year and generally the interest rates are the same or better generally from what I've seen. And of course you have to look at the company strength. I know. Sam, last week you brought up making sure you do your due diligence, do your research. We can help you with that. We are fully independent, so. But. And you get 100% guarantee by the company instead of 1.43 from the bank. Let's keep going. I want to tell you that if you think there couldn't be a modern day run on the bank, I have bad news for you. It's happening. It's slowly happening right now. You know, we've lost six banks this year so far. Anthony, did you know that? Six banks. I don't. Yeah, that was hypothetical. I'll rush right through that. The one that we just lost last Sunday happened on a Sunday. It's so nice to see you laugh and smile. I just don't have time for you. I only have one hour. When you and Sam were together, it was so good because you actually worked together. It was like bros talking. It was like a podcast. It definitely was different than how I approached this, but it was actually kind of nice and courteous and respectful, and you're not going to get that from me, but I liked it. So if enough people call it and say it was better with Anthony, more calm, a little less chaotic, I'm willing to. I'll give you half the show every six months and we'll let you get involved. So anyway, so we lost the bank on Sunday, Smaller bank, so it didn't really make the major news. Nano, the bank is out of California. Nano, bank. N, A, N O, second word, B, A, N, C if you want to look up and see if I'm right. So one of the things, and that's bank number six this year. It's been over 10 years since we lost six banks in one year. You know, it was more in the spotlight when we lost Silicon Valley bank and the other two that year because they were bigger names. These are smaller, but it's like the old starfish thing, you know, when the boy and the dad are walking on the beach and the boy picks up one of thousands of starfish, throws it in water, and the dad's like, why are you doing that? Why are you wasting your time? You're never going to make a difference. And that little kid looks at him, looks back down, picks up another starfish, throws it in the ocean, says, you know what? I made a difference to that one. I love that analogy, by the way. I want to go to the beach and throw things into the water. So I can tell you if you were at nanobank last Sunday and you heard that your bank is closing its doors and your assets are being taken over by the FDIC and so they can find another bank to buy your assets. Concerns you. It happened to me. Desert Hills bank in Arizona, when they shuttered their doors, I had. I had an account there. So I got to live through a bail in, bailout, bail, whatever it was, it was kind of unnerving, I'll say that. You know, let me get to something. What's going to happen? I need you to familiarize yourself with a few banking terms, one of which you need to look up the Dodd Frank regulation of 2010 and kind of just wrap your mind around it, you know, and we'll tell you. These reach out to us. If you can't write this down or whatever, I want you to look up the term bail in. And I. What else? I guess those are the main two. You know, why the banks are changing behind the scenes. The smaller ones will go first. There's about 4,000 banks. Joe Jaquin believes we're going to end up with 400. I don't think even that many. Here's something going on that'll tell you why it's accelerating too. We're going to a central bank digital currency and I can't say anymore. We're going to. We have gone to Let me read something to you that you feel free to research. Make sure I'm not making this up. US Bank I'm pretty sure everybody's heard of that. It's not Wells B of A or Chase the top three, but it's pretty, pretty darn big. US bank has successfully executed its first live cross border pilot transaction using its proprietary dollar backed stablecoin usbdc. I would presume that stands for US Bank Digital currency. Developed through its internally managed digital asset platform. The transaction represents a major milestone for one of the largest commercial lenders in the United States. Using a public blockchain to settle institutional grade money movement. The transaction involved an internal transfer of funds between US bank entities located in North America and Europe. It's global. The digital dollar is here and it's getting bigger. And there's other banks. This is just the first one I decided to dig into. The transaction was issued and settled on the stellar public blockchain building upon a long term collaboration with Stellar Development foundation and PWC asset specifications. The asset is called USBDC and is pegged one for one with the US dollar. I am always happy when I hear that they're pegging. So it should not be confused with the Circle's widely known commercial stablecoin USDC lifecycle functions beyond simple transfers. The test successfully validated the stablecoins entire automated operational life cycle including minting payment redemption, asset freezing and clawback capabilities. All of the things that were missing for us to be ready to push the button that the government's fingers are hovering over are here. So I got news for you. Come sit with us. If you want me to give you names of banks that are working on their own currency. You know the genius act, the clarity act, Fed now stablecoin the executive orders over the years. It's coming. We'd be glad to make sure you're prepared, not scared. We'd be glad to make sure you're proactive, not reactive. We have ideas for you. So I'd like to make sure you're scared and not prepared, which seems like the mission of this show. But we can't really get you prepared until you're somewhat scared. We have to scare you a little. You're like dang Jer, settle down. I haven't had a stroke on the show in quite a while. I'm going to end up in the bed next to Kevin, my buddy Kevin who's got Covid in pneumonia. I don't know. How much time do we have left, Sam? Do we have a good 20 minutes left? [00:53:39] Speaker C: That's it for our show. If you like what you heard, if you have any questions about any of the topics today, or if you want someone, probably me, not junior because he talks too much to sit down and review your financial situation, reach out to us team at another money show.com give us a call. 623-523-0444. That number again is 623-523-0444. Find us on the web another money show.com check us out on YouTube. Maybe you'll see my tower guard. They clip that. I think that's all. So we will see you again Next Saturday at 5am and noon right here on 9 60, the Patriot thanks for [00:54:23] Speaker B: listening to another money show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free no obligation consultation, visit Another Monetization Investment Advisory Services Offer through Brookstone Capital Management llc, bcm, A registered investment advisor, BCM and Rochford Financial are independent of each other. 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