Episode 108

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Published on:

20th Jan 2023

Inflation, Optimism, the World Bank and Eggs Will Make you Rich

Following a spike at the end of 2022, mortgage rates dropped sharply last week, driving demand from current homeowners hoping to save on their monthly payments, though it failed to excite potential homebuyers. The Mortgage Bankers Association’s seasonally adjusted index is reporting that the total mortgage application volume rose 1.2% last week compared with the previous week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.42% from 6.58%, with points remaining at 0.73 (including the origination fee) for loans with a 20% down payment. That rate was 3.52% just a year ago.

In this episode of The Higher Standard, Chris and Saied examine this news and try to make sense of what it means for the housing market and the economy as a whole.

They discuss the effects recessions have had on the energy sector historically, such as lower oil demand, as well as a comment by Jerome Powell stating that price stability is the bedrock of a healthy economy.


Chris and Saied look at comments from Ron Insana from Contrast Capital, stating that the current data don’t support concerns by the Fed and many other economists who worry about an emergent wage/price spiral.


They also offer some thoughts on the precedents that were set by the acquisition of Union Bank by US Bancorp, and how that has affected other banks, such as embattled Wells Fargo.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!


What You’ll Learn in this Show:

  • The latest CPI report and what it means for inflation and the economy.
  • Why the World Bank's statement about cutting its 2023 forecasts is not nearly as ominous as it sounds.
  • The unconstitutional nature of Biden's student loan forgiveness plan.
  • Why the job numbers appear to still be relatively strong, despite mass layoffs happening across several sectors.
  • And so much more...


Resources:

"Inflation is easing, even if it may not feel that way" (article from NPR)

"Insana says the case is clear that inflation is over" (article from CNBC)

"Mortgage refinance demand surges, as homeowners take advantage of lower interest rates" (article from CNBC)

"The World Bank is cutting its 2023 forecasts and warning of a global recession" (Bloomberg Businessweek via Instagram)

"Forget Core CPI, Market Pros Are Searching for Supercore Inflation" (article from The Wall Street Journal)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.