Trump vs The Fed: Mortgage Fraud Scandal Could Shake Wall Street
When Trump tells a Fed governor to resign over “mortgage fraud,” you know it’s not about the mortgage. In this episode, Chris, Saied, and Rajeil peel back the layers on political theater, headline manipulation, and the not-so-subtle art of bullying the Fed. From LBJ literally grabbing his Fed chair by the lapels to Nixon strong-arming rates before an election, the crew shows how history repeats itself — only now, the stage is Twitter and Truth Social instead of Texas ranches and secret tapes.
➡️ But this isn’t just about politics. It’s about how perception drives markets more than policy — and why mortgage fraud isn’t always the Wall Street-sized scandal it sounds like. The guys break down what “occupancy fraud” really means, why banks often look the other way, and how weaponizing technicalities against political opponents cheapens the entire system. Add in some comedy about red-eye flights, cream-cheese pretzels, and fried chicken ice cream, and you’ve got classic THS: irreverent, unfiltered, and just educational enough to make you dangerous at your next dinner party.
💥 Have you left your "honest ⭐️⭐️⭐️⭐️⭐️" review?
👕 THS MERCH: http://www.thspod.com
🔗 Resources:
Fed governor Cook responds after President Trump says she 'must resign' (Yahoo! Finance)
Fed Found Over 22,000 Mortgages Like Those Pulte Is Flagging (Bloomberg)
What Is Mortgage Occupancy Fraud, the Claim Wielded by the Trump Administration? (Wall Street Journal)
⚠️ Disclaimer: Please note that the content shared on this show is solely for entertainment purposes and should not be considered legal or investment advice or attributed to any company. The views and opinions expressed are personal and not reflective of any entity. We do not guarantee the accuracy or completeness of the information provided, and listeners are urged to seek professional advice before making any legal or financial decisions. By listening to The Higher Standard podcast you agree to these terms, and the show, its hosts and employees are not liable for any consequences arising from your use of the content.
Transcript
Yeah, I feel like my nipples are less transparent in this.
Speaker A:I like to make sure that my nipples have varying degrees of peekaboo.
Speaker B:Peekaboo.
Speaker A:Peekaboo.
Speaker A:So Rajeel has made a commitment leading into the show tonight that.
Speaker A:Oh, he's gonna be a little more vocal on tonight's show.
Speaker B:Oh, let's go with that.
Speaker A:Do you feel prepared?
Speaker A:Brazil?
Speaker B:No, but let's just jump into it.
Speaker B:That's.
Speaker B:That's all right.
Speaker B:He said jump into it.
Speaker B:Welcome back to the number one financial literacy podcast in the world is the higher standard sitting in front of me with the black T shirt and the salt and pepper beard.
Speaker A:You don't need it.
Speaker A:We have a video component of the show.
Speaker B:Yeah, no, but.
Speaker B:But we get more downloads.
Speaker A:It's Christopher Nahibi sitting across from me in the old merch site.
Speaker A:Omar.
Speaker A:Wow.
Speaker B:Thank you, my man.
Speaker B:And sitting behind the desk in the production suite, if you will.
Speaker B:The Fijian himself with the spirit fingers.
Speaker B:Regil.
Speaker B:What's up, Reil?
Speaker B:What's up, guys?
Speaker B:It's gonna be a thing.
Speaker B:He's doing a thing.
Speaker B:Yeah.
Speaker B:We got a good show for everybody tonight.
Speaker B:Face Off.
Speaker A:Are you okay?
Speaker B:What's going on?
Speaker A:You're, like, choking on it.
Speaker B:Face Off.
Speaker B:Trump versus the Fed.
Speaker B:He's going for it, man.
Speaker B:He's not easing up.
Speaker A:The problem is, candidly, it's visible now.
Speaker A:We know what you're doing, dog.
Speaker A:You ain't that sneaky, dog.
Speaker B:This has been going on for decades.
Speaker A:I know, but the fact that we went to the level that we're at right now.
Speaker B:Mm.
Speaker A:So I've been getting a lot of messages lately from a lot of people, particularly about liking and preferring shows with the three of us as opposed to guests, because they feel like we provide better education and more engaging commentary.
Speaker A:They know what they're in for.
Speaker A:That's their words.
Speaker A:And I tend to agree.
Speaker A:I like this better.
Speaker A:It's easier for me, it's easier for you.
Speaker A:It's easier for all of us.
Speaker A:Right.
Speaker A:But one of the things people wanted to talk about is.
Speaker A:Is us providing the same level of education on financial topics.
Speaker A:And I thought, what better topic than to talk about something that's relevant culturally?
Speaker A:Culturally, right now it's happening how there's two sides of the story, and one of them is very dirty.
Speaker A:And at the same time, we could teach you a little bit about mortgage fraud.
Speaker B:Right, Right.
Speaker B:And this is actually not that.
Speaker B:Where we'd be teaching people how to commit mortgage fraud.
Speaker B:No, no, but.
Speaker A:No, we would never do that.
Speaker B:But what it.
Speaker B:Whatever what this really would do and something that I've been wanting us to do more of because we did it a lot in the past, was leveraging your expertise and taking people behind the curtains of how these things typically play out.
Speaker A:I don't have a lot of subject matter expertise, but I will admit, on this particular topic, on this one, I know a little thing.
Speaker B:You got some things.
Speaker A:I got some things I could talk about.
Speaker A:Okay, so you strapped in?
Speaker A:You ready?
Speaker B:Oh, yeah, I'm ready to go.
Speaker A:Okay, let's get a little more color.
Speaker A:Working you through it slowly.
Speaker B:Ready to go?
Speaker A:I'm ready to go.
Speaker B:That's six words.
Speaker B:That's more than three.
Speaker B:Right.
Speaker A:He's doubled up his commentary from last episode.
Speaker A:All right, so this all started from a Yahoo Finance article where Fed Governor Cook responds after President Trump says she, quote, must resign, end quote.
Speaker B:Wow, that's a.
Speaker A:That's a harsh.
Speaker A:Come out the gate.
Speaker B:I mean, that's.
Speaker B:That's now two Fed officials.
Speaker A:Yeah, he's been targeting them.
Speaker B:Why?
Speaker B:Why would he do that?
Speaker A:Well, we're going to get into that.
Speaker A:There is a clear, indecisive reason as to why, and we alluded to it several shows ago.
Speaker A:We talked about the fomc.
Speaker A:If you get rid of Jerome Powell, which has been his most visible critique of the FOMC as of late as the Fed chair, you still have the problem that there are 11 voting members, including Powell.
Speaker A:So even if he steps down as a Fed chair, he still has a vote, and he's still a member of the fomc, a voting member.
Speaker A:So you got to really change the landscape of the vote.
Speaker A:So how do you do that?
Speaker A:You try to get them all to resign.
Speaker B:Right.
Speaker A:So when I saw that title, I was like, wow, that's pretty harsh.
Speaker A:And then I read the article and.
Speaker B:I'm like, yeah, think of it.
Speaker B:It's not.
Speaker B:It's not very different.
Speaker B:Now.
Speaker B:There's.
Speaker B:There's multiple examples of how this plays out and why he's doing what he's doing.
Speaker B:Look at it no different than how they would want someone from the Supreme Court to step down.
Speaker B:So some president from someone from their party steps in that aligns with their views or their constituents or the people from their base.
Speaker B:Right.
Speaker B:To get things.
Speaker A:Last one this happened with was Kavanaugh was the guy's name.
Speaker A:Yeah, he was.
Speaker A:He was very, very conservative.
Speaker A:I think Trump was actually the one who named him.
Speaker A:Very, very conservative.
Speaker A:And you get these lifetime appointments for these guys.
Speaker A:They can really sway the law in this country by having a Very different perspective.
Speaker A:Somebody more liberal, more willing to accommodate a liberal perspective versus somebody more conservative.
Speaker A:But they're there, there for life.
Speaker B:Right.
Speaker B:And then for, for that.
Speaker B:That's just what's like a visible example.
Speaker A:Yeah.
Speaker B:Other examples of this are aligning people on your, on your board.
Speaker B:Right.
Speaker B:And we're going to get into that later in the show where you would want to put people in place that, that share the same strategic plan and align with you on what it is you're trying to get accomplished.
Speaker A:Actually, I hadn't really thought about this before the show, but it's worthwhile to note from a corporate governance perspective.
Speaker A:There is this weird paradigm that we have in society and it works this way, but it's not supposed to work this way.
Speaker A:A board is supposed to be holding management accountable to executing on strategy that they put in place.
Speaker A:Yet at the same time, the strategic plan comes from management.
Speaker A:The board is only there to really hold you accountable for effective challenge.
Speaker A:But so often it's the CEO in the company that are picking a board that will reconcile with what they want.
Speaker A:And if you're a board member, you don't want to go against the CEO.
Speaker A:But it's always the board members that fire the CEOs, because that's how the CEOs get fired is the board has to make that decision.
Speaker B:Right.
Speaker A:It's just really weird based environment.
Speaker B:And I remember we did an episode on this.
Speaker B:I think we were, we dove into Open AI's board.
Speaker A:Oh, yeah.
Speaker B:And we talked about Sam Almond and how he put, he, he tried to put a balanced, A balanced board where.
Speaker B:Because there's, there's one side that is, that leans more towards, you know, having regulatory oversight and others.
Speaker B:We should just go full throttle and see what, where AI can take us.
Speaker A:It was supposed to have a philanthropic kind of approach to it.
Speaker B:Yeah.
Speaker A:Open architecture.
Speaker A:And it's supposed to be charitable in nature.
Speaker A:It's supposed to be like non profit.
Speaker B:Yeah.
Speaker A:And that has seemed to gotten real lost in the mix as of late.
Speaker B:Oh, yeah.
Speaker B:I mean, yeah, look at the, the money that's being thrown around.
Speaker B:But yeah, to your point.
Speaker B:And we're gonna, we're gonna dive into that later in the show.
Speaker A:I need you to get a little more loose, brother.
Speaker A:You're still tight tonight.
Speaker B:I like, I just really, when I, when, when you, when you put this show together, I was like, oh, this can, this can go so many different ways.
Speaker A:Well, you know me, I like to go both ways.
Speaker B:I do know you like to go both ways.
Speaker A:All right.
Speaker A:President Trump On Wednesday called on federal Governor Lisa Cook to resign as public pressure on the central bank continues to build.
Speaker A:Cook must resign now.
Speaker A:Trump wrote on his social media platform True Social.
Speaker A:Wednesday morning.
Speaker A:He included a link to a Bloomberg report about a letter sent by the Federal Housing Finance Agency.
Speaker A:FHFA had Bill Pulte urging Attorney General Pam Bondi to investigate Cook over a pair of mortgages.
Speaker A:Let's just pause right there.
Speaker B:Yeah.
Speaker A:One government agency urging another government agency to look into another government agency's representative.
Speaker B:Right.
Speaker A:That just screams nepotism.
Speaker B:Yeah, right.
Speaker B:It does, exactly.
Speaker A:Not really nepotism.
Speaker A:Conflicts of interest, perhaps?
Speaker B:Well, it's, it's also like, why, why are you going out of your way to get yourself involved in this over here?
Speaker B:Like, this is coming out of where.
Speaker A:Yeah.
Speaker A:And, and just, just the fact that the president saw the Bloomberg article and knew about it early and people don't really realize this, that the media is more often than you realize, manipulated for a reason.
Speaker A:It's not uncommon for private equity firms to have relationships with news outlets, to have the news outlets put out stuff that they could not say themselves because it would be influencing the stock price.
Speaker A:But if a news outlet says it.
Speaker A:Yeah, then the stock price gets manipulated.
Speaker A:But you weren't directly involved.
Speaker A:But the media respects your, quote, source anonymity.
Speaker A:It's all dirty.
Speaker A:And I've had a front row seat to all this stuff.
Speaker A:So let's, let's continue on because it gets dirty.
Speaker A:You're going to feel really filthy after this.
Speaker A:Okay.
Speaker A:You feel nasty.
Speaker B:What kind of, like, what kind of level of nasty we talking?
Speaker B:Like, like, did he freak off nasty or.
Speaker A:I don't know we can get that close.
Speaker A:But certainly I just got off an airplane.
Speaker A:I haven't showered in a couple of.
Speaker A:And I want to get in my own bed.
Speaker A:You want to get in your bed after red eye disaster took me on a red motel.
Speaker B:Motel.
Speaker A:It just.
Speaker A:Dirty.
Speaker A:Who does it?
Speaker A:And I'm like, who sleeps on a red eye?
Speaker A:This guy.
Speaker B:Yeah.
Speaker B:Easy, easy.
Speaker B:Yeah, I'd suggest a red eye.
Speaker B:If I could sleep on a red eye.
Speaker A:Yeah, I would, too.
Speaker B:Yeah.
Speaker B:Yeah.
Speaker A:I'm the only guy on a plane who did not sleep the whole time.
Speaker B:Like, you problem, man.
Speaker B:What?
Speaker B:That's a personal problem.
Speaker A:It's not a personal problem.
Speaker B:It sounds like it's you problem.
Speaker A:So you try to book the next flight.
Speaker B:Yeah.
Speaker A:People like, why wasn't Saeed there?
Speaker A:Because Saeed can't sleep on a red eye either.
Speaker B:They make pills for that man.
Speaker B:Yeah.
Speaker A:No, I can't take Any drugs?
Speaker A:Man, you all know I get drug tested.
Speaker B:Yeah.
Speaker B:Not really.
Speaker A:Not really.
Speaker A:I'm unemployed.
Speaker A:I was getting my haircut the other day.
Speaker A:I was like, man, I could have.
Speaker A:I could do whatever I want.
Speaker B:Yeah.
Speaker B:I don't need to get this.
Speaker B:Why am I doing this?
Speaker A:I don't have to do any of this.
Speaker A:I can grow the beard out long.
Speaker A:I can grow the hair long.
Speaker A:I can get more tattoos.
Speaker A:That's probably going to happen.
Speaker B:I got a haircut.
Speaker B:I got a haircut.
Speaker B:Before coming here today, my hair was.
Speaker B:It was feeling like a mop.
Speaker B:It had been so long since I got a haircut.
Speaker A:Well, you trying to rub it in a fresh cut for shows now?
Speaker B:No, I just.
Speaker B:It just coincidentally happened today before the show.
Speaker A:Is that why you got here at 6:30?
Speaker B:What?
Speaker B:That's the time we scheduled to be here.
Speaker A:I wanted to be here at 5:30.
Speaker A:What about you?
Speaker B:Nobody said 5:30.
Speaker B:I say 5:30.
Speaker B:Schedule.
Speaker A:No schedule.
Speaker B:Oh, last week we did 6:30.
Speaker B:My bad.
Speaker B:If y' all want to do 5:30, we can do 5:30.
Speaker A:Pulled rank on you.
Speaker B:He did pull rank on me.
Speaker A:And you wore shorts.
Speaker A:You dirty, nasty.
Speaker B:Y' all can't tell.
Speaker B:Y' all can't tell.
Speaker B:It's under the table.
Speaker B:Don't worry.
Speaker A:I'll get that.
Speaker A:I'll get that on video.
Speaker A:So on Wednesday afternoon, Cook responded and said, I have no intention of being bullied to step down from my position because of some questions raised in a tweet.
Speaker A:Shots fired.
Speaker A:I do intend to take any questions about my financial history seriously as a member of the Federal Reserve.
Speaker A:And so I am gathering the accurate information to answer any legitimate questions and provide the facts.
Speaker A:Pulte wrote in a letter dated Aug. 15 that Cook had falsified bank documents and properly and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute.
Speaker B:All right, let's unpack this a little bit.
Speaker A:Oh, we're going to.
Speaker A:Don't worry.
Speaker A:Let me.
Speaker A:Let me finish this out.
Speaker A:The president's call for Cook to resign comes as public pressure on the Fed continues amid ongoing challenges and changes in the Fed's Board of Governors.
Speaker A:Last week, Trump nominated Council of Economic Advisers Chair Stephen Mirren to the Fed board to fill a seat left by Adriana Krueger.
Speaker A:Kugler can't even say the name who stepped down from the board on August 8th.
Speaker A:Should Cook also step down, Trump would have the opportunity to nominate another Fed governor.
Speaker B:Yeah, yeah.
Speaker B:And to your point, and what here, what it says in the show notes, why does it matter.
Speaker B:It's because it allows Trump to force somebody out, causes more drama in D.C. and allows him to align people in the Fed and shape the Fed the way he would like.
Speaker B:Like it to be so that they can ultimately work in his favor.
Speaker B:Right.
Speaker B:These people, they don't have long terms.
Speaker B:Right.
Speaker B:And can they actually, it's all.
Speaker B:It's all based on opinion, so whatever.
Speaker B:They can't really.
Speaker B:It's not like it's having a seat on the board where you have a fiduciary responsibility.
Speaker B:Yes, they have a responsibility to the people, but if it's based on opinion, on how you read and perceive the data, then how can they ever be held accountable for it?
Speaker B:If somebody wanted to work in his favor, and let's just say I think we should be cutting rates.
Speaker A:That's why you can't remove them unless you have a cause.
Speaker B:Right.
Speaker A:Once they've been elected, you can't remove them unless you have cause or the term comes to an end.
Speaker B:End, yes.
Speaker A:These are very long terms, and it's meaningful.
Speaker A:So the.
Speaker A:The problem for I think most people is that this.
Speaker A:This fight plays out in front of the homeowners.
Speaker A:And it's not the stock market that takes the hit here.
Speaker A:It's you, the consumer, that takes the hit.
Speaker A:As this fight wages on.
Speaker A:We're.
Speaker A:We're on the front lines of this economic battle.
Speaker B:Yeah.
Speaker A:And that's a problem.
Speaker A:That's a meaningful, real problem.
Speaker A:So when markets start to think the Fed is a political pawn, which you can argue is very visibly happening right now, it doesn't matter if the allegations are true or not, because perception becomes the reality in finance and, frankly, in anything.
Speaker B:Right.
Speaker A:And as a guy who lives in the finance world, I can tell you that the perception in a lot of cases matters a whole hell of a lot more than the reality, though.
Speaker B:And I feel like now more than ever, just go back to the contagion, period.
Speaker B:Right.
Speaker B:And headline risk is everything.
Speaker B:So when perception becomes reality, if something happens and they can twist the narrative and control the narrative and start pushing an agenda, they will, right?
Speaker B:Whoever they is, whatever they want, whoever is paying to push that agenda along.
Speaker B:Right.
Speaker A:And what do you mean, you people?
Speaker B:You, y'.
Speaker A:All.
Speaker B:Not me.
Speaker B:I'm an innocent bystander here.
Speaker A:Even if Cook isn't forced out, the perception of a politicized Fed is enough to shake the confidence in the markets.
Speaker A:Markets trade on psychology as much as fundamentals.
Speaker A:Narrative economics is a great example of this.
Speaker A:Robert Schiller's book that he put out, not Too long ago.
Speaker A:I've recommended on the show many times.
Speaker A:It effectively focused more on social media's influence, but certainly social media are not.
Speaker A:Traditional media has always done this, but social media does it much more visibly.
Speaker A:Here we have a tweet that was utilized.
Speaker A:You're shaking the confidence of the consumer.
Speaker A:If Peter Thiel did this and caused a run on Silicon Valley bank, that should have been securities fraud.
Speaker A:That should have been a violation.
Speaker A:It should have been regulated.
Speaker A:That caused a bank to fail.
Speaker A:We did nothing.
Speaker A:We're now playing the same risky game with the Fed and the fomc, and we're doing it under the auspices of, I think this person committed mortgage fraud, which we're gonna get into.
Speaker B:I don't really see.
Speaker A:Like, I get it, this is probably unethical, but does anybody else ever lose their job over this kind of stuff?
Speaker A:No.
Speaker B:Yeah.
Speaker B:I mean, okay, that.
Speaker B:Just throwing out something like mortgage fraud.
Speaker B:I mean, at that point, anything could be considered mortgage fraud.
Speaker A:You know, this is tantamount to.
Speaker B:Yeah.
Speaker A:You crossing the.
Speaker A:Cross across.
Speaker A:Across the street in front of a crossing guard and then you getting arrested for a misdemeanor.
Speaker B:Yeah, right, exactly.
Speaker B:There you go.
Speaker A:You know what I mean?
Speaker B:Right.
Speaker B:I mean, there's.
Speaker B:There's different levels of.
Speaker B:Of this.
Speaker B:Of mortgage fraud.
Speaker B:Right.
Speaker B:Like, yeah.
Speaker B:There's people that can falsify, like, P L statements.
Speaker B:Right.
Speaker B:To get approved for a loan that.
Speaker B:Right.
Speaker B:For something that they wouldn't have qualified had they not.
Speaker B:Versus, I don't know, what are they saying that this person committed.
Speaker B:What did they.
Speaker B:What did they do?
Speaker A:And we'll get to that.
Speaker A:We'll get to that.
Speaker A:But I'll give you a different example now.
Speaker A:Let's say you cross the street the way you did to rescue a baby kitten in the middle of the street.
Speaker B:Right.
Speaker B:Okay.
Speaker A:Is it still a misdemeanor?
Speaker A:Should.
Speaker A:Are you a hero?
Speaker B:Right.
Speaker B:It's all about.
Speaker B:Right.
Speaker A:Perspective and perception are very, very important on these things.
Speaker A:So Fed independence versus market perception we've talked about, but this isn't the first time a president has tried to muscle the Fed.
Speaker A:It's practically an American tradition at this point, which is sad to say, because we think it's a novel concept and that Trump's unique.
Speaker A:And I know people are gonna listen to be like, oh, my God, is he advocating for the President?
Speaker A:Is he not advocating for the President?
Speaker A:I'm not advocating for anybody.
Speaker A:This is just facts.
Speaker B:Yeah.
Speaker A:Okay.
Speaker B:Offense.
Speaker A:Yeah.
Speaker A:No, Cap.
Speaker A:The question is whether the Fed caves or not.
Speaker A:And history has shown when it does, the Economy usually pays the price.
Speaker A:So I'm saying this because you the consumer, you the listener, you don't want the.
Speaker A:The Fed to go, we're getting bullied, and I don't want to deal with it.
Speaker B:Right.
Speaker A:Because when that happens, historically, the economy goes into a little place I like to call the shitter.
Speaker B:Yeah.
Speaker B:These people.
Speaker B:These people that, you know, got appointed and have taken these positions, they didn't.
Speaker B:They didn't take these positions to be out in front of the people like this.
Speaker B:They're not.
Speaker B:They're not like politicians that are going that, yes, they do Fed speak.
Speaker B:Right.
Speaker B:But that's just to help con.
Speaker B:They.
Speaker B:They too, like to control the narrative and control optimism and pessimism in the markets.
Speaker B:Right.
Speaker B:And they're finding out how to use that tool.
Speaker B:But for them to get called out like this, that.
Speaker B:That's like, I didn't sign up for this.
Speaker A:Let's be honest, the FOMC members.
Speaker A:I'm sorry, I know people are just feeling.
Speaker A:Gonna be hurt here.
Speaker A:They're nerds.
Speaker A:They're nerds.
Speaker A:They're finance nerds.
Speaker A:I am one, too.
Speaker B:I like it.
Speaker B:I'm with it, you know?
Speaker B:Right.
Speaker A:Neel Kashkari is not a cool guy.
Speaker A:Okay?
Speaker A:He's not the guy.
Speaker A:The party almost like, yo, Neil's here.
Speaker B:Let's go.
Speaker B:Right?
Speaker B:He doesn't have the Riz as the kids like this.
Speaker A:He's a guy that was like, ah, God damn it, Neil's here.
Speaker A:Don't talk to him.
Speaker B:Yeah, that's Neil.
Speaker B:Oh, man, him again.
Speaker A:Sooner or later, he's gonna call me, be like, doc, stop talking about your show, man.
Speaker B:Stop.
Speaker B:Yeah, I hear the people sending it to me.
Speaker A:Yeah, it's not good.
Speaker A: in the Texas Ranch Showdown,: Speaker A:Martin believed it was the time tightened monetary policy to fight inflation.
Speaker A:President Lyndon B. Johnson, already stretching budgets from the Vietnam War and the Great Society programs, was furious.
Speaker A:LBJ summoned Martin to his Texas ranch, cornered him in his living room, and literally grabbed him by the lapels.
Speaker A:His words.
Speaker A:Boys are dying in Vietnam, and Bill Martin doesn't care.
Speaker A:Damn lbj.
Speaker A:Damn.
Speaker A:He's a president.
Speaker A:Yeah, and we're mad at Trump.
Speaker A:LBJ wanted cheap money to fund guns and butter.
Speaker A:Martin resisted but eventually caved.
Speaker A:That cave in helped fuel and the inflation that plagued the late 60s.
Speaker A:Let me tell you right now, if the Fed caves now, I'm gonna go on record.
Speaker A:Regil.
Speaker B:Okay.
Speaker A:Yeah, okay.
Speaker A:Yes, sir.
Speaker A:Give me something more.
Speaker A:Yeah, that's that's, that's what you wanted from.
Speaker B:He said, he said, yes sir.
Speaker B:What did you want from him?
Speaker B:Yes.
Speaker B:Oh no.
Speaker B:I've seen some movies.
Speaker A:I'm doing.
Speaker A:I'm doing you a favor right now.
Speaker A:Both of you are not getting that edited out of the show.
Speaker B:I thought this was America.
Speaker A:No, no, no.
Speaker A:I liked it better when we deal than Doug.
Speaker A:If we cut rates and the consumer gets too excited because rates do drop, which is not a guarantee by the way.
Speaker B:Yeah.
Speaker A:What's going to happen is home prices are going to go up.
Speaker A:We do not want home prices to continue to rise.
Speaker A:Right.
Speaker A:You do not want a rapid pace escalation in home price valuations right now.
Speaker A:Okay.
Speaker A:So what.
Speaker A:And I will say that's the last rate cut.
Speaker A:Mortgage rates went up, not down.
Speaker B:Right.
Speaker A:So that, that actually could be a good thing.
Speaker A:The.
Speaker A:There is an over 90 probability of a rate cut in September on the 17th.
Speaker A:Now that's coming.
Speaker A:We've talked about it on prior shows.
Speaker A:So I.
Speaker A:A measured cut which I believe the market is already priced in.
Speaker B:Yes.
Speaker A:Right now would be okay.
Speaker A:It's stable.
Speaker B:Right.
Speaker A:Perception important you do something wild like fire FOMC people, force them to resign.
Speaker A:Move Jerome Powell out.
Speaker A:Market loses confidence that we have actual people caring about monetary policy.
Speaker A:Now we're pushing a political agenda and guess what?
Speaker A:Inflation runs rampant.
Speaker A:You're right back at the situation and starting point.
Speaker A:Not good.
Speaker B:Yeah.
Speaker B:100.
Speaker B:It's.
Speaker B:It's all the work that the Fed and Jerome Powell have put in to get us to this point would all go to waste.
Speaker B:And if they're baking in a 25 basis point rate cut in September, like I don't see it doing much to.
Speaker B:To mortgage prices right now.
Speaker A:The bank stock sector already responded to that after the last series of financial data come out.
Speaker A:Came out.
Speaker A:You saw the kbre, the, the small bank index rise and a lot of the bank regional banks, community banks saw their price go up a little bit.
Speaker A:That was because the market was pricing in the rate cut already.
Speaker B:Right.
Speaker B:So if, if.
Speaker B:Exactly.
Speaker B:If the market feels like mortgage rates should come down, they're gonna start baking in the cut ahead of time.
Speaker B:They're not gonna wait for the cut to actually happen.
Speaker A:Mortgage rates were to come down in response to it.
Speaker A:That's what it happened.
Speaker B:Yeah.
Speaker B:So.
Speaker A:So the race you're seeing today, those.
Speaker A:I was having dinner with somebody, I'm not gonna mention their name.
Speaker A:My brother.
Speaker A:And, and he was like super excited about the idea of a Ray cut.
Speaker A:The Raycock.
Speaker A:He's like, oh the market's gonna light on fire.
Speaker A:And I'm like, you're already seeing it now.
Speaker B:Yeah.
Speaker B:This is what it's going to be like after.
Speaker B:Yeah, yeah.
Speaker A:This is the best you get.
Speaker B:Yeah.
Speaker A:And I said just anecdotally, the last time they cut rates, rates went.
Speaker A:Mortgage rates went up.
Speaker A:And he was like, what?
Speaker A:Yeah, yeah, dog.
Speaker B:Yeah.
Speaker B:That's how this works, you know, I.
Speaker A:Mean, I do a podcast on this.
Speaker A:You should listen to something.
Speaker B:I know, exactly.
Speaker A:So it wasn't just LBJ, though.
Speaker A:Nixon and Arthur Burns.
Speaker A: -: Speaker A:Nixon's tapes even show him saying, remember the old Nixon tapes?
Speaker B:Yeah.
Speaker A:We'll take inflation if necessary, but we can't take unemployment.
Speaker B:Yeah, yeah.
Speaker B:Unacceptable.
Speaker A:Decent Nixon impression.
Speaker A:Not really.
Speaker A:Great.
Speaker A:You don't even know Nixon.
Speaker A:Sounds like you're too young.
Speaker B:Yeah, yeah.
Speaker A:You don't know all you know.
Speaker B:I didn't listen.
Speaker B:I don't.
Speaker B:Yeah, I didn't listen to the tapes.
Speaker A:Burns slashed rates to juice the economy before the election.
Speaker A: Nixon won big in: Speaker A:Ding, ding, ding.
Speaker A:Buzzword.
Speaker A:Mm.
Speaker A:A toxic mix of rising prices and stagnant growth.
Speaker A: In the: Speaker A:We paid the price with double digit inflation, gas lines and the malaise decade, which I have no idea what that's referencing, but that's what it says.
Speaker A:And of course, Trump isn't new to this.
Speaker A:That's right, kids.
Speaker A:The last person who did it was Trump himself.
Speaker B:Yeah.
Speaker A: From: Speaker A:Donald Trump broke new ground by attacking Fed chair Jerome Powell in public on Twitter.
Speaker A:That sounds familiar.
Speaker B:Hmm.
Speaker A:He called the Fed crazy, accused Powell of being an enemy of the people and pressured for rate cuts.
Speaker A:The Fed, trying to maintain independence, looked boxed in.
Speaker A:Rate raising rates and you look political.
Speaker A:Cut rates and you look political.
Speaker A:Even if Powell didn't cave, the damage was perception.
Speaker A:If the market thinks the Fed isn't independent, confidence cracks.
Speaker A:And markets run on confidence as much as fundamentals.
Speaker A:And I would argue today, more than ever, more than fundamentals, the market.
Speaker A:The market is driven much more by confidence and by rhetoric.
Speaker B:Yeah, boy, Rajille pulled this up.
Speaker B:Here is.
Speaker B:This is what the Malay decade was typically refers to the period from the mid-70s to the mid-80s in American automotive history.
Speaker B:The era was characterized by a decline in the performance and appeal of domestic vehicles, largely due to a combination of factors, including the 73 oil crisis.
Speaker A:I did not Know that.
Speaker B:Yeah.
Speaker B:And now you know, decline in performance, in appeal.
Speaker A:Now you know, three words.
Speaker B:Now you know that.
Speaker B:And, and now you know.
Speaker A:Yeah, that we agreed you're gonna say more than three words every time now.
Speaker B:Said more than three words.
Speaker A:There you go.
Speaker A:See, I got out of them.
Speaker A:That's how you coax it out.
Speaker B:Fillers in.
Speaker A:He's Jerome Powell and I'm Trump.
Speaker A:That's how you get what you want.
Speaker B:If, if anything, the Fed and the FOMC standing their ground right now, when a president in the current administration is leaning so heavily on them the way that they are, and for them to not budge, that should just give them more comp, should give the markets more confidence in them that they are acting independently.
Speaker A:That's certainly an important part of this.
Speaker A:I don't think people see that, though, in the message.
Speaker A:I think the problem is that people go, okay, there's an argument.
Speaker A:Most people, and I don't mean to generalize, but most people, they hear stuff like this and they go, okay, politicians and rich people are fighting, but forget about most people.
Speaker B:Think about the big financial institutions that are relying on the stability of the country as a whole and the long term vision.
Speaker B:Right.
Speaker B:So if I, if I was somebody in charge there at one of these major hedge funds, right.
Speaker B:I'd think to myself, okay, well, it looks like they're gonna do what's right.
Speaker B:Right.
Speaker B:And what's right for the country right now is to continue to go through the pain that we're dealing with.
Speaker B:Not too easy, because we know that if they cut too quickly, inflation is going to spike back up again.
Speaker B:And this, like we've been talking about for the last two years, this two, three year, four year problem is going to turn into a ten year problem.
Speaker A:We're still very much possibility there.
Speaker B:Yeah, yeah.
Speaker A:It's still real.
Speaker A:And I think that this has been a looming issue in confrontation for too long.
Speaker A:I mean, if you look back to the President's prior term, this was an issue back then.
Speaker A:And, and this is, this is weird because you're supposed to have the independence of the Fed.
Speaker A:Yeah, for exactly this reason.
Speaker A:Exactly.
Speaker A:I mean, again, Nixon did it, LBJ did it, other people have done it, so it's not new.
Speaker B:And if I, if, if I was, if I was somebody on the outside, and I'm thinking to myself, why would Trump want to do this?
Speaker B:Or why is, why is his administration or the people with him really pushing this agenda for him?
Speaker B:I think at this point, if anything, it's all, it all comes down to Legacy.
Speaker B:Right.
Speaker B:In my opinion.
Speaker B:And he wants, he wants to have a legacy that says when I was in charge.
Speaker B:Because we know what happens if you cut rates now.
Speaker B:You're gonna have an asset bubble where assets in the stock market's gonna go wild.
Speaker A:Everybody's gonna get rich during your tenure, and then when you're done.
Speaker B:Well, people who invest.
Speaker A:The economy.
Speaker B:Yeah.
Speaker B:The companies and the people who actually invest their money are going to get rich.
Speaker B:And the people who don't and don't have enough money to never will.
Speaker A:Yeah.
Speaker B:You're never going to get to a point where you can buy a home.
Speaker B:You're never going to get to a point where you can make enough money to keep up, let alone invest.
Speaker B:So the rich, like we always talk about, that gap between wealth.
Speaker A:Spirit.
Speaker B:Yeah.
Speaker B:The wealth disparity is that gap is just going to widen.
Speaker A:Yeah, I think, I think it has been steadily for a long time, but it's just happened at such a slow cadence that people are kind of turning a blind eye to it.
Speaker A:But we're in it.
Speaker A:We're in a generational pivot point now more so than ever.
Speaker B:Because we've all been guilty of this.
Speaker B:We've all been guilty of at some point in time, allowing, like when, if, if Obama comes in into office.
Speaker B:Right.
Speaker B:And makes certain changes and then the next president comes into the office, we don't look back and say, oh, this, everything that we're dealing with now is because of what Obama did.
Speaker B:Right.
Speaker B:It's.
Speaker B:No, no, no.
Speaker B:It's happening under this administration.
Speaker B:So this person gets the credit or this person gets default.
Speaker B:Right.
Speaker A:Perception.
Speaker B:It's all perception.
Speaker B:Right.
Speaker B:Back to your point.
Speaker B:So Trump realizes that is like, it's got to happen during my term.
Speaker B:So I want assets to boom while I'm here.
Speaker A:But I would argue the assets were already booming.
Speaker A:And I mean, they're booming now currently, the stock market's at all overdue.
Speaker B:But we're over.
Speaker A:We are overdue.
Speaker A:And that's the problem is you, if you hold off what is overdue, you're just making the correction.
Speaker A:Bigger, big.
Speaker B:And to him, this doesn't affect me and it doesn't affect the, the people I'm closest to after the fact.
Speaker B:So it's, It's a legacy, dude.
Speaker B:It's a legacy.
Speaker A:Maybe, maybe.
Speaker A:I.
Speaker A:Look, I don't claim to know what the hell he's thinking, but I'll tell you that I think it's a bad decision, period.
Speaker A:And legacy or not, it's a bad decision.
Speaker A:And the last thing you Want for your legacy is you to look back and be like, well, our economy's fucked.
Speaker A:And he did it.
Speaker B:Right.
Speaker A:You know, And I think that you're walking a fine line right now of being unlike a lot of presidents past who walked into bad situations and they're like, oh, it happened during this guy's watch.
Speaker A:You're gonna be able to point and go, this is the moment in time.
Speaker B:Yeah.
Speaker A:This is the catalyst.
Speaker A:We still don't have a, quote, catalyst for whatever recessionary correction we're going to be in.
Speaker A:And the last thing you want it to do is come from the White House.
Speaker A:The last thing you want to do is be that visible a connection.
Speaker B:Whoa, whoa.
Speaker A:Or Jill.
Speaker A:Screensavers on.
Speaker A:What are you doing over here?
Speaker B:Yeah, yeah, but working on it.
Speaker A:Yeah.
Speaker A:Over there.
Speaker A:Playing on his phone.
Speaker B:The.
Speaker A:I caught you, dog.
Speaker B:But we actually, you and I had a conversation off air where we were talking about an article that came out recently.
Speaker B:And with the new 401k changes.
Speaker A:Yeah.
Speaker B:Right.
Speaker B:Where you can now, I don't know if you can yet.
Speaker B:Has it officially passed it or not?
Speaker B:But what they're trying to push is you'll be able to invest your 401k into these private equity firms.
Speaker A:Yeah.
Speaker A:And so I don't like the idea of this on many levels.
Speaker B:It scares me for people to take that gamble.
Speaker B:Right.
Speaker B:But it's like we are.
Speaker A:We are giving the protections that were in place to prevent that.
Speaker A:You could argue both sides.
Speaker A:It was punitive to consumers, but beneficial to consumers as well.
Speaker A:Funds are where most of the money goes.
Speaker A:That's just in society.
Speaker A:That's where most of the money gets invested into funds.
Speaker A:And the funds buy stuff.
Speaker A:Which is why anybody who wants real money on Wall street, they go to the funds because that's who has all the cash.
Speaker A:But allowing people to gamble with their 401k, that's why I don't.
Speaker A:I. I don't.
Speaker A:Oh, God.
Speaker A:This is not me.
Speaker A:I'm.
Speaker A:I'm pretty humble.
Speaker B:Just say it, bro.
Speaker B:You gotta give it.
Speaker B:It's.
Speaker B:It's.
Speaker B:No, no, it's just honesty.
Speaker A:I hit a milestone moment this week where I've got a million dollars in an account and just a trading account.
Speaker B:Yeah.
Speaker A:And your Acorns account.
Speaker A:No, no, there's a Fidelity account.
Speaker A:But, you know, growing up as a kid, I always wanted a million dollars cash in an account.
Speaker A:But then you start buying real estate and then you have, like, equity that builds over time.
Speaker B:Yeah.
Speaker A:And then I became the person who started buying stock.
Speaker A:The way we talk about on the show or a lot of index funds.
Speaker A:And after I got a pretty healthy degree of amount of money in index funds, I started buying stocks.
Speaker A:That really resonated with me.
Speaker A:And we've talked about this in the show a lot.
Speaker A:Right.
Speaker A:So I started buying Apple.
Speaker A:I started buying companies that you believe.
Speaker B:In and can understand what it is that they're doing.
Speaker A:Products that I liked, people, things that I thought.
Speaker A:And some.
Speaker A:Some of them weren't winners, you know, some of them were definitely losers over time.
Speaker A:But in.
Speaker A:And I have several different trading accounts.
Speaker A:One's like an active trading account.
Speaker A:This is my active trading account.
Speaker A:And for active, for me just means that whenever I see something that I want to buy, I go buy it and I very rarely sell.
Speaker A:But that account hit a million dollars recently.
Speaker A:And to me, it was a kind of a milestone moment because like, that was that thing as a kid that I kind of wanted.
Speaker A:Although it wasn't cash in an account, per se.
Speaker B:Yeah.
Speaker A:But I'm a real estate guy.
Speaker A:I'm not a stock guy.
Speaker A:So for me to have that as a real estate investor, pretty cool.
Speaker A:It was.
Speaker A:It was a milestone moment to me.
Speaker A:But I look back on it and I think to myself, would I have had that if I was younger?
Speaker A:In investing in some of the things that we're now able to invest in, that's a little more risky.
Speaker A:I don't know.
Speaker B:Yeah.
Speaker B:And it's scary, right.
Speaker B:Because I don't know how much people understand and I myself don't know enough about this to talk about how investors into private equity firms even work.
Speaker B:Right.
Speaker B:But what worries me is like, why would you want the average person to be able to invest their money into a PE firm?
Speaker B:Is like, are they hurting?
Speaker B:To see investors are.
Speaker B:Is private equity the potential catalyst for what's to come?
Speaker A:I do think so, yeah.
Speaker A:I think private equity, God, I have to walk the line here.
Speaker A:I have confidentiality agreements in place.
Speaker A:I think private equity is very, very aggressive in the market right now because capital for them has been cheap for a very long time.
Speaker A:And there are really no alternatives to what there used to be for some of these capital sources.
Speaker A:And private equity's filled the void and they're bought in a lot of stuff.
Speaker A:And I think that any ding.
Speaker A:The private equity which is leveraged in risk business, it's probably necessary and there's probably a certain amount of that default which should happen is going to have resonating impacts to a lot of companies.
Speaker A:And those companies are going to have resonating impacts for a Lot of employees.
Speaker A:And it's just this, really a nasty trickle down effect.
Speaker A:And there's been a lot of speculation in the markets where the private equity is going to be the source for the next recessionary economy.
Speaker A:And I don't know that's 100% true, but I do know that there it's also intertwined.
Speaker A:Yeah, there's a likelihood there.
Speaker A:Let's get into the mortgage file a little bit because it's kind of hilarious.
Speaker A:We didn't describe it on purpose.
Speaker A:We didn't describe the mortgage on purpose.
Speaker A:So went over to Bloomberg Fed found over 22, 000 mortgages like those.
Speaker A:Pulte was flagging Regill.
Speaker A:Thank you for pulling it up, brother.
Speaker B:You are very welcome, Christopher.
Speaker A:You are very welcome, Christopher.
Speaker A:Five words.
Speaker A:Boom.
Speaker B:Six.
Speaker B:And also a side note, if you have any questions about financial stuff, there's this guy I can recommend, Harsha.
Speaker B:Oh, there you go.
Speaker B:Look at that old guest on the show.
Speaker B:Yeah, Strand Life.
Speaker A:Is this his website?
Speaker A:This is a free.
Speaker B:This a free plug is.
Speaker B:Hey, did he pay you for this?
Speaker B:A free plug?
Speaker A:He should.
Speaker B:That's what he just did.
Speaker A:You pay me hair plugs.
Speaker A:I need to do about my mom.
Speaker A:I FaceTime my mom the other day and I put.
Speaker A:I have a little magnet in the back of the phone and I had on.
Speaker A:On the microwave while I was making pancakes for my son on like a Saturday.
Speaker A:Sunday morning.
Speaker A:A Sunday morning.
Speaker A:My wife is with Regil's wife at Disneyland.
Speaker A:No invite for me.
Speaker A:All the kids or me.
Speaker A:Same.
Speaker B:Same here.
Speaker A:Ain't nobody like you.
Speaker B:There's nobody.
Speaker B:Ain't nobody like me.
Speaker B:And I like turtles, bro.
Speaker A:My mom's like, oh, bro.
Speaker A:Have you had the cream cheese filled pretzels?
Speaker B:No, I haven't.
Speaker B:Cream cheese filled pretzel.
Speaker B:I'm not a cream cheese guy.
Speaker A:I know.
Speaker A:Neither am I.
Speaker B:So good.
Speaker B:So good.
Speaker A:It's basically cocaine.
Speaker A:Yeah.
Speaker B:What?
Speaker A:I'm pretty sure Hunter Biden was there.
Speaker B:I was gonna say that.
Speaker B:You got to be first.
Speaker A:First HB reference to the show.
Speaker B:Hey, he's the new diddy of the show.
Speaker B:We gotta find a way to work him in.
Speaker A:Everybody bring your pipe to work day.
Speaker B:What's the pipeline today?
Speaker B:What's the HP today?
Speaker A:Yeah, they're really good, man.
Speaker A:You should try one.
Speaker A:Another crack.
Speaker A:If you swallow that drink.
Speaker A:Swallow that drink.
Speaker B:Oh, my God.
Speaker A:All right, so President Donald Trump and his allies are demanding Federal Reserve Governor Lisa Grant Cook resign over alleged owner occupied fraud, a practice the central bank itself has found to be broad based across the US And I'm going to admit I know a lot of people who have done this.
Speaker A:Not intentionally, just as a matter of design.
Speaker A:And I may have done something that looks like this because I have made life changes that ch choices that changed.
Speaker A:So I'm going to tell you my kitten in the street story and why it's not a misdemeanor.
Speaker B:Okay.
Speaker A:When we get down farther in this.
Speaker A:But this is not fraud.
Speaker A:Okay.
Speaker A:And the onus is not on the person making the application.
Speaker A:It's on the bank.
Speaker B:It's on the bank.
Speaker B:Right.
Speaker B:It's their guidelines, how, how they view it.
Speaker A:Right.
Speaker A:So the bank who took a risk in making this loan didn't get paid more interest rate as a result of this quote, alleged fraud.
Speaker A:Right.
Speaker A:She didn't default in loans, bank's still making money on it.
Speaker B:The very loan that she, that they approved.
Speaker A:Yeah.
Speaker B:Right.
Speaker A:Which they had a responsibility as a fiduciary for their shareholders to do the due diligence, ensure that these things accurate.
Speaker B:And if they weren't going to give her that specific rate, how you're going to penalize her.
Speaker B:Right.
Speaker B:She would just go somewhere else.
Speaker B:Yeah.
Speaker A:And she would have gotten it.
Speaker B:Yeah.
Speaker A:And for all we know, she didn't apply for the mortgage anyway.
Speaker A:A husband and wife, the husband may apply, you know, also factual.
Speaker A:The wife might apply.
Speaker A:You could have a financial adviser who's applying on your behalf.
Speaker A:I mean.
Speaker B:Yeah.
Speaker B:A broker could have found it for you.
Speaker A:Even the loan officer at the bank could have suggested this is the path that she go down.
Speaker A:And she just filled it out.
Speaker A:Okay.
Speaker B:Exactly.
Speaker A:A Fed governor who understands monetary policy is not necessarily a loan expert.
Speaker B:Right.
Speaker A:Okay.
Speaker A:So I think you're asking a lot there.
Speaker A: Fed research researchers in a: Speaker A:So you get, you go, you buy a home, you say you're going to live in it as an owner occupied property.
Speaker B:Yeah.
Speaker A:And then within the next year you buy another property, it's owner occupied.
Speaker B:That's going to be owner occ.
Speaker B:So this doesn't count for people that want to buy like a second home?
Speaker A:No, a second home is very different.
Speaker A:It's still owner occupied.
Speaker B:It's still owner occupied.
Speaker A:Still owner occupied.
Speaker A:Okay.
Speaker A:But because you have a second home and this all comes down to risk.
Speaker B:Right.
Speaker A:If you're buying a home which you live in, you're less risky of Defaulting, you're less of a risk to the bank of defaulting because they think, okay, the last thing you're going to default on is the place you live.
Speaker A:Right.
Speaker A:You give up all the excess stuff that you don't need before you give up that.
Speaker B:Right.
Speaker A:So what happens?
Speaker A:They give you better rates, better terms, less leverage on the property.
Speaker A:You can put less money down because your risk of default on the property you live in is lower.
Speaker B:Yeah.
Speaker B:They think that you're going to take care of this property better.
Speaker A:It's your home.
Speaker B:If it's your home versus it being an investment or a second home that you could, like, walk away from, you.
Speaker A:Have a second home, you don't need to go, there's a vacation home.
Speaker A:Times get tough.
Speaker A:You're like, well, honey, I guess we're going to have to give up the lake house.
Speaker B:Yeah, that's it.
Speaker A:You know, and it's, it's more of a risk.
Speaker A:So the banks typically charge a higher rate and require you to put more down to offset that risk.
Speaker B:Yeah, makes sense.
Speaker B:Makes.
Speaker B:Completes.
Speaker A:But again, this comes down to a difference in rate and more money down.
Speaker A:But it's not a, quote, monetary default.
Speaker B:Right, exactly.
Speaker A:Technical default.
Speaker B:And you don't, you don't know if they got a better rate also, because.
Speaker B:Let's just say there's.
Speaker B:Here's another example.
Speaker B:Maybe they promised to bring over a certain amount of deposits, too, which allows them to lend even more.
Speaker B:Right?
Speaker B:Yeah.
Speaker A:There's all sorts of mitigating factors.
Speaker B:Yeah, yeah, we'll get into that.
Speaker A:But here's the meat.
Speaker A:Okay?
Speaker A:It is the, the chunky gooey stuff in the middle of that pretzel that say he doesn't like, but really does like, here's the cocaine.
Speaker A:Okay?
Speaker A:Federal.
Speaker A:Federal Housing Finance Agency director Bill Pulte has said that Cook took a mortgage on a property in Ann Arbor, Michigan, stipulating that it would be her primary residence, and then two weeks later declared the same for another mortgage on a Georgia property.
Speaker B:Oh, well, I mean, why do I care?
Speaker B:Honestly?
Speaker B:She got a better rate.
Speaker B:So what?
Speaker B:She's paying the mortgage.
Speaker B:Right.
Speaker A:Again, I don't want to be a dick here.
Speaker A:Actually, we all know what I am.
Speaker A:I don't want to be me here.
Speaker A:But if she got a, a mortgage on a property in Ann Arbor, Michigan, and then two weeks later.
Speaker B:Right.
Speaker A:Got a mortgage in Georgia, isn't that on the bank?
Speaker A:Who was underwriting her?
Speaker B:Right, exactly.
Speaker B:As the underwriter.
Speaker A:No one is like, hey, you had a coup hundred thousand dollars go out of your account.
Speaker A:For a down payment on something.
Speaker A:What was that?
Speaker B:Yeah, what was that for?
Speaker B:Exactly.
Speaker B:Yeah.
Speaker B:And I see this mortgage on your credit report, right?
Speaker B:What's that for?
Speaker A:Yeah, or maybe, maybe, just maybe, because two weeks apart, right.
Speaker A:It takes longer than that to get an appraisal and close a deal.
Speaker A:Takes usually call it three weeks on average if you're going really fast, three to four weeks if you've got any complications.
Speaker A:Maybe, just maybe she was refinancing one property or maybe she was buying both.
Speaker A:Who knows?
Speaker B:Yeah.
Speaker A:Maybe she was doing them both at the same time.
Speaker B:There you go.
Speaker B:Right.
Speaker B:That's also possible.
Speaker B:Right.
Speaker A:Maybe at the time she didn't know which property she was gonna live in.
Speaker B:I mean, to call this mortgage fraud.
Speaker A:I mean, it's qu.
Speaker A:It'd be different if she did it closed, waited three months, and then bought another one like that way.
Speaker B:But no, but the term mortgage fraud, that's harsh.
Speaker B:No, but like, it represents.
Speaker B:It means something.
Speaker A:Like, you didn't falsify your tax turn.
Speaker B:Right, Exactly.
Speaker A:You didn't give me fake bank statements.
Speaker A:Yeah, you just checked the wrong box.
Speaker B:Not even check the wrong box.
Speaker B:But okay, even if she did it intentionally, right?
Speaker A:Like now there are, there are writers and disclosures you have to sign on your loan documents which say that it will be owner occupied.
Speaker B:No, no, I get that.
Speaker B:But like, to, to just say that this is like mortgage fraud and to paint out this picture and be like, let's get her out.
Speaker B:So we could put somebody else in.
Speaker B:Like, okay, we can do a deep dive on every single fomc.
Speaker A:I would bet every dime I have that Donald Trump has done this or something tantamount to this in his real.
Speaker A:He's a real estate investor.
Speaker B:Right?
Speaker A:Okay.
Speaker A:If he hasn't taken advantage of one of these types of loopholes in situations, I would be stunned, bro.
Speaker B:I. I want to say that it's on record that he's had properties reappraised for lower value so he can get the assessment lower.
Speaker A:That's right.
Speaker B:So he can get.
Speaker B:So he can get the assessment lower so that.
Speaker B:So that he pays less taxes.
Speaker A:And then he goes, well, my financial advisors.
Speaker B:And I wonder if he.
Speaker B:If he spoke to the appraisal company beforehand and been like, yo, hook me up with a solid.
Speaker B:I mean, is that that far out of the realm of possibilities?
Speaker A:A little far.
Speaker B:Come on, bro, you don't think so?
Speaker A:That's dirty pool, man.
Speaker A:Come on, bro, People wouldn't do that.
Speaker A:They're ethical.
Speaker B:Come on, man.
Speaker A:I couldn't even say without a Smile on my face.
Speaker A:Yeah.
Speaker A:So of course this is all sorts of controversy.
Speaker A: loans made from: Speaker A:Of those loans, 22,431 were considered, quote, fraudulent.
Speaker A: age terms peaked ahead of the: Speaker A:Okay, that shouldn't surprise anybody, right?
Speaker A:They'll remain steady for much of the ensuing decade.
Speaker A:About 2 to 3%.
Speaker A:Okay, let's just clear this up right now.
Speaker A:If 2 to 3% of your applications are, quote, fraudulent, is that really the consumer's fault?
Speaker B:Yeah, I mean, hire better underwriters or.
Speaker A:You know, and there, there's some problems here.
Speaker A:I will, I will put it to, on the bank here.
Speaker A:There's some problems with this and, and I will justify a little bit of this.
Speaker A: l get into the explanation in: Speaker A:So.
Speaker B:Okay.
Speaker A:All I'm saying is mortgage fraud cases tend to relate to overstating assets and income rather than misstating primary residence.
Speaker A:That's where you typically get the mortgage fraud.
Speaker B:Yeah.
Speaker A:Okay, so a former Fed prosecutor, Stephen Kazaris, who's now a defense lawyer at Foundation Law Group, terrible name those based solely on a home, home being falsely identified as a primary residence are quote, unusual but not unheard of, he said.
Speaker A:He goes on to say that they're rare because the theoretical loss to a financial institution is lower in cases based on primary residence where the lender basically got cheated out of a higher interest rate rather than the value of the home.
Speaker A:Right.
Speaker A:So the lender's just making more money.
Speaker A:That's it.
Speaker B:That's it.
Speaker B:Yeah, it's true.
Speaker B:Look like as an underwriter, I, I've seen plenty of times like there'll be certain guidelines that banks will have.
Speaker B:Right.
Speaker B:These aren't policy exceptions.
Speaker B:There's a difference between policy exceptions and guideline exceptions.
Speaker B:Right.
Speaker B:And one of the guidelines that I've come across plenty of times has been when they underwrite an individual's net worth, it needs to be larger than the total amount of credit exposure out to this one individual client.
Speaker B:Right.
Speaker B:So then these, these investors are so savvy that they understand this.
Speaker B:What do they do when they provide you their schedule of real estate?
Speaker B:They say, oh, I have all these properties and they're all valued at X.
Speaker B:And then you just do a deep dive into when they bought the properties and, oh, you bought this property two years ago, but now it's worth somehow $2 million more.
Speaker B:So that's on the underwriter's job to be able to be like, be able to tell this number is inflated.
Speaker A:And as a former underwriter, I have called shenanigans on borrowers for this exact same thing.
Speaker B:Yeah.
Speaker A:More times than I can.
Speaker B:Oh, yeah, yeah.
Speaker B:And then if you.
Speaker B:You just start to discount them and if it becomes an issue, then you, you know, you raise a red flag.
Speaker B:And if you discount it heavily enough and it's not.
Speaker B:It's not an issue and still meets your guidelines, then, okay, you're covered because.
Speaker A:You discounted it, but you made an informed, educated decision on risk.
Speaker B:On risk.
Speaker B:Yeah, exactly.
Speaker A:So it may sound small, like fudging whether you live in a house or not, but scale matters.
Speaker A:In 08, banks got torched because risk wasn' look like on what it looked like on paper.
Speaker A:Hence the, you know, no income verification, stated income loans.
Speaker A:If you remember during the great financial.
Speaker B:Crisis, I think a lot of people don't realize, like, that's what that was going on back then.
Speaker B:Like, they can't even begin to fathom that.
Speaker B:I didn't have to prove that I could pay back this loan.
Speaker A:Yeah.
Speaker B:You just took my word for it.
Speaker A: So in: Speaker A:People go, okay, really?
Speaker A:You do?
Speaker B:Oh, you want to buy this house?
Speaker B:Got you.
Speaker A:No problem.
Speaker A:You make.
Speaker A:Don't worry, guys.
Speaker A:If they don't make the money, they won't be able to make the payment.
Speaker A:That was the logic now.
Speaker B:Yeah.
Speaker B:Why would they apply for a loan if they.
Speaker A:Right, so by scale and reference, this is not the same thing as 08.
Speaker A:So let's get into 08 a little bit.
Speaker B:Let's.
Speaker A:Let's do a little crash course, shall we?
Speaker B:Yeah, let's do it.
Speaker A: Mortgage fraud in the: Speaker A:Owner occupancy misstatements were a piece of the broader fraud fraud puzzle.
Speaker A:But the real monsters were liar loans.
Speaker A:Stated income loans where borrowers just wrote down a number and banks didn't verify it.
Speaker B:Yeah.
Speaker B:Think about it.
Speaker B:Think about it like this.
Speaker B:When you're trying.
Speaker B:When you know that there's some people out there that get those notices or those advertisements in the mail for, like, credit cards, and they go to apply and they say how much money you make?
Speaker B:And you go, $250,000 approved a week.
Speaker B:Done.
Speaker B:Yeah, that's how it was for these loans.
Speaker A:Yeah.
Speaker A:So that misrepresentation fueled the bubble because it hid the risk exactly what the Wall Street Journal has warned occupancy fraud may do today.
Speaker A:I disagree with that.
Speaker B:Hmm.
Speaker A:I don't think occupancy fraud is this material of a concern in the market.
Speaker A:And what do I know?
Speaker A:I've just seen billions of dollars in loans over the last couple decades.
Speaker B:Yeah.
Speaker B:So not anymore.
Speaker B:Especially not anymore.
Speaker B:I mean, I think credit quality we've talked about on the show has gotten significantly better since the great financial crisis.
Speaker A:Yeah, I think so.
Speaker A:At least.
Speaker A:Home credit quality.
Speaker A:Yeah, yeah.
Speaker A:Let's be clear.
Speaker A:Mortgage credit quality.
Speaker A:Not all credit quality.
Speaker A:So, yeah.
Speaker A:According to the Wall Street Journal, what is mortgage occupancy fraud?
Speaker A:The claim wielded by the Trump administration.
Speaker A:So we're going to get into this and then we're going to talk a little bit about why it's harder to spot now.
Speaker A:Okay.
Speaker A:Because there, there are some material challenges with doing this.
Speaker A:So as much as I put it on the bank, it isn't entirely the bank's fault.
Speaker A:There's just, it's, it's one of those murky areas where you could wind up in a situation where you just can't prove it.
Speaker A:Okay, that's a problem.
Speaker B:Yeah.
Speaker A:So Trump officials are accusing another one of the President's political targets of mortgage fraud, highlighting a long running issue in the housing industry.
Speaker A:President Trump on Wednesday, as we spoke about earlier, publicly called for Federal Reserve Governor Lisa Cook to resign following the claim on social media, which we've already talked about, one of his housing officials, that she committed fraud by designating two properties as her primary residence.
Speaker A:The Justice Department is probing similar claims against two of the President's most vocal Democratic critics.
Speaker A:New York Attorney General Letita James and Senator Adam Schiff of California.
Speaker A:So now this, this tool is also being weaponized against political opponents that are happen to be Democrats.
Speaker A:Yeah, that seems dirty.
Speaker B:It's.
Speaker B:Yeah, I know.
Speaker B:And you got, you got to ask yourself with everything that's going on right now, to hyper focus on this.
Speaker B:Why?
Speaker B:Why?
Speaker B:Just, you know, like you, it's so clearly obvious that he's trying to get his own people in place.
Speaker B:Yeah, no, I get it.
Speaker B:You know, like, and, and everyone's got to see that, right?
Speaker B:You don't care about this person committing mortgage fraud.
Speaker B:Come on.
Speaker B:You just want to get your own person in place to that aligns with your agenda.
Speaker A:Meanwhile, Nancy Pelosi's out here earning $175,000 a year worth 200 million.
Speaker B:It's her husband, bro.
Speaker B:Her husband's a great investor, bro.
Speaker A:It's not inside of trading Saeed dog.
Speaker B:Yeah, he just.
Speaker B:He's good.
Speaker A:He just.
Speaker A:He knows.
Speaker B:He's like that.
Speaker A:Yeah.
Speaker A:He happens to be invested in the stocks that I happen to have connections to.
Speaker A:I understand the connection there.
Speaker B:Investy.
Speaker A:Polo's estimated net worth is between 230 million and 400.
Speaker A:400.
Speaker B:Oh, my God, bro.
Speaker B:Listen, like, he just somehow gets lucky and picks the companies that win the government contracts.
Speaker B:It just happens.
Speaker A:I don't really make bold political commentary in the show that I think leans to one side or another.
Speaker B:I think everybody can agree to this.
Speaker A:I don't like her.
Speaker B:Both sides.
Speaker A:I don't like Nancy Pelosi.
Speaker A:I hope she hears that.
Speaker A:I don't like you, lady.
Speaker A:You're unethical.
Speaker B:I got so many jokes that I can't say.
Speaker A:Can't say in a lot of its jealousy.
Speaker A:I'll be the first to admit a lot of it.
Speaker A:No one would let me get away with that.
Speaker B:Nobody.
Speaker A:Nobody would.
Speaker B:Yeah.
Speaker B:And when she's.
Speaker B:And when she's asked about it, she's like, let's not get into that.
Speaker B:Why do we got to get into that?
Speaker B:Let's not even talk about it.
Speaker A:Yeah.
Speaker B:Convenient.
Speaker A:Yeah.
Speaker B:Yeah.
Speaker A:Serial killers do the same thing.
Speaker B:Yeah.
Speaker A:I just.
Speaker B:Yeah, but it's.
Speaker B:It.
Speaker B:What's crazy is we can't talk about that and try to regulate that, but somehow professional athletes can't bet on their own games.
Speaker B:Where's the.
Speaker B:What's the difference?
Speaker A:Bet on yourself.
Speaker B:Yeah, let me bet on me.
Speaker A:The problem is, if you bet against yourself.
Speaker B:There's one guy that got busted recently, Chris.
Speaker B:I don't know if you saw it.
Speaker A:I did.
Speaker B:Malik Beasley.
Speaker A:Yeah.
Speaker B:It's so blatant.
Speaker B:Malik Bleezy, by the way, formerly dated Larson Pippen.
Speaker B:Literally.
Speaker A:I think everybody's dated her.
Speaker A:Haven't you?
Speaker B:Nah, man.
Speaker B:I've been out the game, bro.
Speaker B:12 years.
Speaker A:Hey, have you dated Larson Pippin?
Speaker B:No, sir.
Speaker A:I'm surprised.
Speaker B:Future has.
Speaker A:There's two people that left.
Speaker A:I mean, she's got.
Speaker A:She's got options.
Speaker B:Literally just stood still, let the guy blow by him, and he's like, damn.
Speaker B:Doesn't move.
Speaker B:Doesn't move.
Speaker A:Yeah.
Speaker B:Doesn't slide his feet.
Speaker B:He's a professional athlete.
Speaker A:Yeah.
Speaker A:Yeah.
Speaker A:Well, maybe he was thinking about something else.
Speaker B:Yeah, yeah, yeah.
Speaker B:Think about later.
Speaker A:So it's a game of intent, this whole mortgage fraud thing.
Speaker A:Did you lie or did life happen?
Speaker A:The gray area is why cases like cooks are unusual but not impossible.
Speaker A:And it's also why enforcement is so rare, why occupancy fraud now is harder to spot.
Speaker A:Well, historically, lenders checked your job location versus the home address.
Speaker A:Remote work has killed that litmus test.
Speaker B:Oh, good point, Great point.
Speaker A:So life changes.
Speaker A:Life changes can complicate intent.
Speaker A:Someone buys intending to live there and then rents it out months later.
Speaker A:And I'll be the first to admit I think we've talked about this before the show, but I'll rehash it really quickly.
Speaker A:I.
Speaker A: In: Speaker B:What does that mean to those that don't know?
Speaker A: the great financial crisis in: Speaker A:They foreclosed on them, but they couldn't liquidate them for a number of reasons, not the least of which is when they sold them at less than the loan value in the books, they had to show an economic loss.
Speaker A:So banks were strategically bleeding these into the market so they didn't have to show the economic losses related to them and they could manage their profits and earnings on a quarter by quarter basis.
Speaker B:But they were also under pressure because at the end of the day, they need to get paid back on these loans.
Speaker B:Right.
Speaker A:So they had a strategic plan to sell them back down in the market.
Speaker A: And going all the way into: Speaker A:Meant that large banks or community banks owned this property.
Speaker A:They were sitting vacant, waiting to be sold.
Speaker A:And it got to the point where you would put offers in on them and not hear back.
Speaker A: So in October: Speaker A:I got frustrated and put a bunch of offers.
Speaker A:I think it was like 20 or 30 properties.
Speaker B:Yeah.
Speaker A: Flash forward to April of: Speaker A:I'm on a plane, I'm in LAX getting on a plane to go from here to Miami to spend a couple days in Miami before I go to Paris.
Speaker B:Also hard, bro.
Speaker A:Yeah, it was.
Speaker A:Remember that song from Miami?
Speaker B:Oh, I thought Ballers in Paris.
Speaker A:Oh, yeah, that's not the word, but close.
Speaker B:What do you mean?
Speaker A:What song are you referring to?
Speaker B:Watch the Throne.
Speaker A:Yeah, yeah, yeah, yeah.
Speaker B:Don't do this.
Speaker B:Don't do this to me.
Speaker B:Why are you doing this?
Speaker B:Don't make this uncomfortable.
Speaker A:In any event, so I'm in the airport, I get a call from Wells Fargo bank saying, hey, we've accepted your offer on this property.
Speaker A:But I put in offers six months prior on a lot of properties.
Speaker A:I had no idea.
Speaker A:The guy on the phone was like, it's an Irvine.
Speaker A:And oh, by the way, you've got 24 hours to give us your deposit in six months.
Speaker A:You could have spent that money, I could have bought something else, whatever.
Speaker A:Right?
Speaker A:Yeah.
Speaker B:You thought it was just, it went away.
Speaker A:Yeah, I didn't know, so.
Speaker A:I didn't know there's a Wells Fargo I could go to to wire the money out, because I had to sign a physical wire at this point to get the money out.
Speaker A:And I was going there on a Saturday, so I knew I had a limited window of time.
Speaker A:Went out that night, had a little bit too much to drink, partied too much, woke up the next day, forgot about it.
Speaker B:No way.
Speaker A:I'm at the day pool party, going, I had something to do today.
Speaker A:Day.
Speaker B:Yeah.
Speaker A:What did I have to do?
Speaker A:And it was, I had to go to Wells Fargo.
Speaker A:I tried to make a phone call, but it's during World Music Conference and if you've ever been to Miami during World Music Conference, like there's so many people in a condensed area, you cannot get a cell phone signal out.
Speaker B:Oh, my God.
Speaker A:So my cell phone didn't work.
Speaker A:So I finally found out there was a Wells Fargo several streets over, but the streets are jam packed, you cannot drive.
Speaker A:So I get a taxi that doesn't go anywhere.
Speaker A:I, you know, I get a car.
Speaker A:Finally, I finally I, I get outside of the primary dense area, I get a call out to Wells Fargo.
Speaker A:They're willing to hold the door open for me so I could send the wire to them, which happened to be from one Wells Fargo account to another account.
Speaker A:So it was good for me that, oh, there's Wells Fargo happened to call me over the reo.
Speaker A:And there was also my bank.
Speaker A:I get in there, I'm at the point where my bladder is going to explode.
Speaker A:I run to go pee.
Speaker A:She set up the wire already.
Speaker A:The, the girl.
Speaker B:I wonder if that played a factor into you getting your offer accepted.
Speaker B:I don't know.
Speaker A:I don't know.
Speaker A:You know, I never spoke to anybody about that.
Speaker A:So I signed, I signed the deposit, send it outside and see, I've never seen the property.
Speaker B:That's so wild.
Speaker B:Right?
Speaker A:I get an email.
Speaker B:You had intentions on living at this place or in this?
Speaker A:No, it's supposed to be rental, but I was renting in the same neighborhood.
Speaker A:It turns out that the property was literally in the same neighborhood.
Speaker A:It was just sheer coincidence.
Speaker B:Wow.
Speaker A:That was in the same neighborhood.
Speaker B:Wow.
Speaker A:And regil, this is the property that I live in now.
Speaker A:So I bought it for, at the time, 350,000 with a $25,000 seller's credit.
Speaker A:I Wired the money to escrow.
Speaker A:And at the time, I planned to be a rental property.
Speaker A:I did the math on what financing terms would be, and it was cheaper to.
Speaker A:To pay the mortgage payment than it was my current rent.
Speaker A:And I lived in a 580 square foot studio.
Speaker A:One one bedroom.
Speaker B:I remember that studio, right.
Speaker A:And I love the place.
Speaker A:It was nice, you know, but this was a two bedroom, two and a half bath.
Speaker A:1180 square feet.
Speaker A:Not big.
Speaker A:I still live in a big place today.
Speaker A:And I bought it sight unseen.
Speaker A:I had my dad go check it out while I was in Europe and he came back, he's like, yeah, it's not bad.
Speaker B:Yeah.
Speaker A:You know, it hadn't been, you know, the water.
Speaker A:There's a lot of things that need to be done because it hadn't been occupied for so long.
Speaker A:So we move in.
Speaker A:We've been there ever since.
Speaker A:But it was reo.
Speaker A:But when I bought it, I. I was good.
Speaker A:I thought it was gonna be rental.
Speaker B:Yeah.
Speaker A:And then I changed my mind during this whole process.
Speaker A:But the guy I, That I put in the application for, the guy who did all this work for me, he assumed because I was renting in the neighborhood that is my primary owner occupied.
Speaker B:He just assumed and he marked it owner.
Speaker A:You just assumed that it was.
Speaker A:No one ever asked me.
Speaker B:So.
Speaker B:Yeah, it's not always on the person.
Speaker A:And I had several rentals at the time in the Midwest.
Speaker B:Yeah.
Speaker A:So it's like you could have got in.
Speaker A:Obviously.
Speaker A:I put in a bunch of reos six months in advance.
Speaker B:Yeah.
Speaker A:He just assumed I was like a desperate homeowner who was in the same neighborhood.
Speaker B:I think every.
Speaker B:Everybody's.
Speaker B:If you've been in this position before.
Speaker B:Look, I had work done in my backyard, right.
Speaker B:The.
Speaker B:The amount of work that I got done, I got multiple quotes to get it done.
Speaker B:One quote came back half the price of the three other quotes that I received.
Speaker B:I don't know why this person quoted that.
Speaker B:I don't know.
Speaker B:Maybe they're desperate for business.
Speaker A:This is a dude you got fired.
Speaker B:No, no, he still works there.
Speaker B:Yeah.
Speaker B:I found a recent.
Speaker B:Still works there.
Speaker B:But I find out that I'm like, maybe they're just desperate for business.
Speaker B:I don't know what this costs.
Speaker B:I'm not an expert in.
Speaker A:Yeah, in your defense, that's.
Speaker A:That's not your problem.
Speaker B:That's not my.
Speaker B:And also, I, I signed the contract, Right.
Speaker B:So if I'm getting a smoking deal, what am I going to be like?
Speaker B:Hey, bro, are you sure?
Speaker B:Because I've got three Other quotes, that's double this.
Speaker A:Yeah.
Speaker B:Right.
Speaker B:So if someone's, if someone gives me a lower rate, like, oh, wow.
Speaker B:You know, rates right now are 6.8%, but for investors it's probably in the sevens.
Speaker B:But you're giving me 6.8%.
Speaker A:The government does all the time.
Speaker B:Yeah, sign me up.
Speaker A:So, remember the movie War Dogs?
Speaker B:No.
Speaker A:So the two fake government contractors, they were trying to fake it till they made it.
Speaker A:They were working with all sorts of illegal countries and getting weapons and stuff like that.
Speaker A:They were selling to the U.S. government.
Speaker B:Yeah.
Speaker A:They won their first large multi million dollar project by under bidding the rest of competition.
Speaker A:And they went in.
Speaker A:This is a true story.
Speaker A:They went in to the US government when they won the contracting bid and they're like, you, you know, you bid so much lower than everybody else.
Speaker B:Yeah.
Speaker A:And they're like, in.
Speaker A:One of the guys was like, just.
Speaker A:You mind telling me.
Speaker A:He's like, well, we're really not supposed to do that, but, you know.
Speaker B:Yeah, yeah.
Speaker A:Given the, given this such a great deal, he's like, you're $54 million below the most recent bid.
Speaker A:And he.
Speaker A:Because they were faking it till they made it, they didn't know.
Speaker B:Yeah, yeah.
Speaker A:And they want to be in, going to jail for all sorts of criminal stuff later on themselves, but the government takes advantage as much as anybody else does.
Speaker B:Yeah, yeah, yeah, yeah, exactly.
Speaker A:This is, this is not unique to the consumer.
Speaker B:Right, true.
Speaker A:So for people to go, oh, fraud.
Speaker A:Right.
Speaker A:It's.
Speaker A:It's a bit of a stretch, so let's keep going here.
Speaker A:Lenders typically offer better terms on mortgages for a primary residence and let people borrow more than they would for a second home or an investment property that they may rent out.
Speaker A:For a primary residence, for instance, the down payment can be as low as 3 to 5%.
Speaker A:That property that I bought, that the thousand are occupied, I think I put down like 3%.
Speaker B:Yeah.
Speaker A:Actually less than that, frankly.
Speaker A:I put down 3%.
Speaker A:I, I was a broker at the time, so I worked my own deal.
Speaker A:I got my commission, I use my commission to pay down.
Speaker A:I think I put like 2% or something.
Speaker A:Something absurd.
Speaker A:I don't remember what the numbers were.
Speaker B:Yeah.
Speaker A:Or maybe I put down 5%, but two and a half percent came from my commission or something like that.
Speaker B:Got it.
Speaker A:And then I paid PMI and I knew I was getting it way undervalue and I refinanced it like six or eight months later on.
Speaker A:Yeah, the PMI came off and I put like nothing into the Property.
Speaker B:Yeah.
Speaker A:And today that properties are worth about a million.
Speaker B:Yeah.
Speaker A:So just.
Speaker A:Yeah.
Speaker A:Give you kind of wild how that all worked out.
Speaker A:So, for primary residence, for instance, a down payment may be as low as 3 to 5%.
Speaker A:For a second home, typically 10 to 20%.
Speaker A:You're putting down considerably more, right?
Speaker B:Oh, yeah, yeah.
Speaker A:For an investment property, it's usually at least 20%.
Speaker A:So the argument here against Cook is you would add a higher interest rate and pay the bank more money, and the bank would have had you put down maybe four times as much.
Speaker B:Yeah.
Speaker B:Put down.
Speaker B:What about the rate, though?
Speaker A:The rate would have been incrementally higher.
Speaker B:Yeah.
Speaker A:And that depends.
Speaker A:And she could always bought that down.
Speaker A:So mortgage rates for a second home are also typically about a quarter of a point, so 0.25% to a half a point,.50% higher than the rate for a primary residence, said Garth Graham, terrible name.
Speaker A:Senior partner at Stratmore Group, a mortgage advisory firm.
Speaker A:The rate is usually about 50.0% to 0.75% higher for an investment property.
Speaker B:I mean, come on, bro.
Speaker A:So, yeah, incrementally, more difference.
Speaker B:What are we doing?
Speaker A:Yeah, what are we doing?
Speaker A:We're trying to push people out.
Speaker A:So, mortgage fraud 101.
Speaker A:Has anybody ever wanted to commit mortgage fraud?
Speaker A:You want to know how?
Speaker B:No, I don't want to.
Speaker A:This is not your show.
Speaker A:Yeah, but if you were curious how other people did it, this might be your show.
Speaker B:Yeah, yeah, yeah.
Speaker B:How do they get away with it?
Speaker A:Rajille, would you like to know?
Speaker B:Yes, I would like to know.
Speaker A:Yes.
Speaker B:Yes, I would like to know.
Speaker A:Six words.
Speaker A:Yeah.
Speaker B:Go, baby.
Speaker A:All right, so mortgage fraud sounds like something only shady real estate investors or Wall street bankers do.
Speaker A:But the truth is, it happens everywhere.
Speaker A:Sometimes by accident and sometimes on purpose, and sometimes, well, in ways that blow the entire economy up.
Speaker B:Let's hope not.
Speaker A:Mortgage fraud is when someone lies or deliberately leaves out facts on a loan application to get better terms, a bigger loan or approval they otherwise wouldn't qualify for.
Speaker A:Key word here.
Speaker A:Deliberate.
Speaker B:Deliberate.
Speaker B:Right.
Speaker B:And it's material facts.
Speaker B:Right.
Speaker B:Things that can alter the entire loan.
Speaker A:So I, as an attorney, like to break this down into two different categories, one for housing and one for profit.
Speaker A:I think there's a very material difference here.
Speaker A:Borrowers fudging details to buy or keep a home.
Speaker A:Think lying about income, faking job history, or saying the house is their primary residence.
Speaker A:Sound familiar?
Speaker A:When it's really an Airbnb.
Speaker B:That's all fraud.
Speaker A:Yeah, that's fraud.
Speaker A:Oh, yeah.
Speaker A:So if you.
Speaker A:If you lie about anything lying on.
Speaker B:Your application, it's all fraud.
Speaker B:Yeah.
Speaker A:And so a lot of people who are in the, quote, Airbnb arbitrage space.
Speaker A:God, what a stupid title in that.
Speaker A:You know, it's not all on social media anymore because it's not economically viable, but a lot of people were doing that and they go in like, oh, I'm gonna live here.
Speaker A:And they were like, you're gonna run out Airbnb.
Speaker A:And all these gurus are telling them to do that.
Speaker A:They were literally telling you to commit fraud.
Speaker B:Yeah, exactly.
Speaker B:Just tell them that you're going to live there.
Speaker A:And all you guys paid for.
Speaker B:Course you're like, okay, yeah, I'll do it.
Speaker B:Right?
Speaker B:I mean, I mean, what, what are some.
Speaker B:So previously when people weren't working remote, they couldn't do that because they could request for bills, right?
Speaker A:Yeah.
Speaker B:But I mean, what steps can somebody take?
Speaker B:Why, why aren't they going a step further to figure this out?
Speaker B:You know, like, that's the part that bothers me.
Speaker A:Well, as a lender.
Speaker A:What do you mean?
Speaker A:Them going farther?
Speaker B:Yeah, yeah, the lender.
Speaker B:Yeah.
Speaker A:There's an inflection point of knowing too much.
Speaker A:You know, I mean, there's a certain point where as a lender, you're prying into way too much.
Speaker A:Keep in mind, a lender, most lenders in a single family world are not keeping these on their balance sheet.
Speaker A:They're selling them in the secondary market as securities.
Speaker B:Yeah.
Speaker A:So they want to meet the gse, the government sponsored enterprises, or.
Speaker A:Yeah, gsa, Freddie and Fannie.
Speaker A:They want to meet their, their loan criteria.
Speaker A:Because if it meets their loan criteria, they can package them all together and securitize them on Wall Street.
Speaker A:So they don't want to dive deep.
Speaker A:They want the loan to conform like everybody else.
Speaker A:They want to do the same.
Speaker A:I'll make it simple, okay.
Speaker A:They want everybody's loan to look like an Oreo cookie.
Speaker A:They want to put everybody's Oreo cookies into an Oreo cookie package.
Speaker B:Perfect.
Speaker A:The wrapping, which is your securitization.
Speaker A:Wrap your guarantee from the agency which says Oreos in the front.
Speaker A:In this case, it says Fannie Mae in the front.
Speaker A:And then you go and sell it at the, on the secondary market, the stock market, that is the grocery store, and some consumer comes along and they buy it.
Speaker A:The only difference is instead of buying the entire package of Oreos, you, the consumer can buy a piece of stock in that Oreo bag.
Speaker A:You can buy one or two Oreos from the bag.
Speaker B:Okay.
Speaker A:And you own A portion of that Oreo cookie, that brand name cookie.
Speaker B:And what makes you feel good about buying a portion of that Oreo cookies?
Speaker B:Like, oh, these cookies here everybody lives in, this is their home, this is their cookie that they're going to protect.
Speaker A:The ingredients in the back include all owner occupied organic ingredients.
Speaker B:Right?
Speaker B:It's their main squeeze, not their side be.
Speaker A:Yeah.
Speaker A:Now if you want something that's got, I don't know, like the original Coca Cola recipe with cocaine in it, then you have a bunch of fraudulent loans in the.
Speaker B:In there.
Speaker B:Yeah, exactly.
Speaker A:But the sad part is most people really don't care.
Speaker A:What they see is when they buy these bonds, which is when you securitize and sell in the secondary market, they're sold in the form of bonds, right?
Speaker A:These government sponsored enterprises will wrap them and say this is this pool of mortgages you can buy.
Speaker A:All they care about is a return, right.
Speaker A:They're going to assume that everything is conforming.
Speaker A:Meaning that they all look alike.
Speaker A:They're homogeneous, consistent product.
Speaker A:Yeah, all us brown guys look alike.
Speaker A:We all carry the same risk.
Speaker B:No we don't.
Speaker B:Not me and you, Jill, you're a.
Speaker A:Little darker back there, boy.
Speaker B:That's why he's behind.
Speaker B:So he's behind the door.
Speaker A:So we don't put you in the room.
Speaker B:Separate but equal.
Speaker A:Oh man, this episode is.
Speaker A:Jeez, bro, do I just bleep the whole episode?
Speaker A:I know you're gonna call me on the drive home going, God, we can't hear that.
Speaker B:No, you gotta.
Speaker B:Yeah, you gotta believe it all, bro.
Speaker B:I can't believe that you ha.
Speaker B:Not that, that Put.
Speaker B:Leave that on him.
Speaker A:You spit on me right now.
Speaker A:That's how upset you are.
Speaker B:I learned that in history class.
Speaker A:Guys, no.
Speaker B:Jesus Christ.
Speaker A:Secret swim.
Speaker A:The first part.
Speaker A:You're gonna want to BLEEP that and I'm not gonna do it.
Speaker A:You're gonna do it.
Speaker A:I'm not gonna do it.
Speaker B:Yes, you are.
Speaker A:Yes you are.
Speaker A:Why'd you say it then?
Speaker B:What did I say?
Speaker A:He jumped.
Speaker B:Mine's so easy to BLEEP out.
Speaker B:It was so simple.
Speaker A:It's going to be a solid minute.
Speaker A:Silence.
Speaker A:If people listen to this, you hear a solid minute of silence.
Speaker A:This is why.
Speaker B:Listen.
Speaker B:Just do it, man.
Speaker B:Do it before.
Speaker B:I'm telling you ahead of time.
Speaker B:This time I'm going.
Speaker A:Leave it platforms and pull it off the video.
Speaker A:Platforms.
Speaker B:There you go.
Speaker B:I'm with that.
Speaker B:You can't tell who said it.
Speaker B:Prove it.
Speaker A:Yeah.
Speaker B:You don't have the audio tracks.
Speaker A:He manipulated my voice.
Speaker A:Everybody.
Speaker A:Yeah.
Speaker A:Auto tune it.
Speaker A:It's Kanye.
Speaker A:He did it.
Speaker A:He's crazy.
Speaker A:Fraud for housing.
Speaker A:Not to be confused with fraud, confused with fraud for profit.
Speaker A:Industry insiders, brokers, appraisers, lenders conspiring to squeeze money out of the system, inflated appraisals, kickbacks, and identity theft.
Speaker A:That's a big problem.
Speaker A:That happens.
Speaker A:You got issues in my mind.
Speaker A:This is not the same as what Cook did.
Speaker A:So the occupancy fraud angle is important here.
Speaker A:Okay.
Speaker A:This is the whole center of Lisa Cook's controversy.
Speaker A:You buy a house in Michigan, you tell the bank it's your primary residence.
Speaker A:Yep.
Speaker A:All right.
Speaker A:Two weeks later, you take out another loan in Georgia, also claiming it's your primary residence.
Speaker A:Why?
Speaker A:Because banks give you these much sweeter terms if you live there.
Speaker A:I don't know if she lived there or not.
Speaker A:They don't know if she lived there.
Speaker A:They're not even saying whether she lived there or not.
Speaker A:They're just saying, you did two of these.
Speaker A:It's got to be fraud.
Speaker A:That's not true.
Speaker B:Yeah.
Speaker A:Okay, so we've already covered the financial terms and differences.
Speaker A:Yeah.
Speaker A:The difference could be tens of thousands of dollars upfront and hundreds per month in lower payments.
Speaker A:It's not victimless because lenders price loans according to assuming lower risk.
Speaker A:If you don't, nobody feels bad for the lender.
Speaker B:Yeah, no, nobody.
Speaker A:Nobody feels bad for the lender.
Speaker B:Yeah.
Speaker B:You didn't make as much money on this.
Speaker A:You think Trump's going like, oh, I just want the bank to be made whole.
Speaker B:Yeah.
Speaker B:Right.
Speaker A:That's not what's going on here.
Speaker B:No, it's not.
Speaker A:So let's not confuse the angle and the rhetoric with what's really going on.
Speaker A:No one's saying, hey, she bought these properties, she stopped making payments, and they're out money.
Speaker A:They're just saying, you lied on your loan application.
Speaker B:Yeah.
Speaker A:Do you even know if she filled it out?
Speaker B:Yeah, it's true.
Speaker B:No, but she did sign it.
Speaker A:Yeah.
Speaker B:I mean, when you sign it, you got your attesting to everything is true, inaccurate under the penalty.
Speaker A:So assuming it's in her name, under.
Speaker B:The penalty of perjury.
Speaker A:Could be in the name of her trust trustee.
Speaker A:Could have signed it.
Speaker B:Right.
Speaker A:You know, there's lots of different options.
Speaker B:Or she could have applied for, like you said, two weeks is such a short window.
Speaker B:She could have done both at the same time.
Speaker A:So would you like some famous but interesting examples of really material fraud that were real problems?
Speaker B:Yeah.
Speaker B:I want to know what real mortgage fraud looks like.
Speaker A:I figured you would.
Speaker A:2008 financial crisis is an obvious one.
Speaker A:We talked about it a lot.
Speaker A:Stated income, wire loans, stated income, no DOC Loans where borrowers claimed six figure salaries as dog walkers and baristas.
Speaker A:It fueled the bubble because nobody verified anything.
Speaker A:That's a problem.
Speaker B:Yeah.
Speaker A: s the Miami condo boom of the: Speaker B:Hey, hey.
Speaker A:I'll put it that way.
Speaker B:Don't do that.
Speaker B:Don't do that.
Speaker B:Yeah.
Speaker B:Come on.
Speaker A:I'm not an employee, baby.
Speaker A:Fraud rings bought units under straw.
Speaker A:Buyers claim primary residence and flip them when the market crashed.
Speaker A:Default spread like wildfire.
Speaker A:Okay, that's intentional manipulation and fraud.
Speaker A:They're doing it under the intention of making money on it near term.
Speaker B:Yep.
Speaker A:Okay, as a reminder, she did this years ago, right?
Speaker A:And still apparently owns the properties.
Speaker B:Like, you had to dig pretty deep, dude, to try to find something on her to get it removed.
Speaker A:Like, she has like, a real generic last name cook.
Speaker A:Y' all had to look hard, right?
Speaker B:Exactly.
Speaker A:Someone slipped a Social Security number in there.
Speaker A:You know what I mean?
Speaker B:Right?
Speaker A:Yeah.
Speaker A:Everyday fraud people buy a primary residence and immediately rent it out on Airbnb.
Speaker A:No one's saying she did that.
Speaker A:No one's saying that she did that.
Speaker A:Okay.
Speaker A:It's technically occupancy fraud, but lenders rarely check unless payments stop.
Speaker B:I mean, this happened.
Speaker B:This has to happen so often.
Speaker A:And again, this is not the lender that.
Speaker A:That made her the loans.
Speaker A:That's.
Speaker A:That's criticizing her.
Speaker A:She did not stop payments.
Speaker A:This is the federal housing.
Speaker A:This is the federal agency.
Speaker B:Right.
Speaker A:That.
Speaker A:That.
Speaker A:That's got housing oversight.
Speaker B:Yeah.
Speaker B:She's like, I'll just pay it off.
Speaker A:No, that doesn't.
Speaker A:That doesn't absolve you.
Speaker B:It doesn't absolve you of the crime, but it's like, what's.
Speaker B:Like, I don't.
Speaker B:I don't need this drama.
Speaker B:This drama doesn't need to exist right now.
Speaker A:So I guess we should probably talk about what the penalties are.
Speaker B:What are the penalties for mortgage fraud?
Speaker A:Well, lying on a mortgage is a federal crime, believe it or not.
Speaker B:Yeah.
Speaker A:So it's not a misdemeanor where you're walking across the street to save cat up to 30 years in prison and $1 million in fines.
Speaker B:Anybody served that kind of time?
Speaker A:Nope.
Speaker B:Nope.
Speaker A:In practice, prosecutions are rare.
Speaker A:Unless it's a large scale fraud for profit.
Speaker A:More likely, lender calls your loan due in full, forecloses or blacklist you.
Speaker A:There you go again.
Speaker A:None of this at the current time is coming from her lender.
Speaker B:Exactly.
Speaker A:So there's there's risk to banks there, there's strategic defaults, there's market distortion.
Speaker A:But the end of the day is, is this as much ado about nothing as Shakespeare would say?
Speaker A:It's a divine comedy, it's a tragedy, but it's not a real material concern to you to meet anybody else.
Speaker A:This is just headlines, baby.
Speaker B:Right, and this is how.
Speaker B:This is another clear cut example of how headlines can be deceiving.
Speaker B:Oh, yeah, right.
Speaker A:Do I get any kind of shout out for handling that much, that amount of material that fast?
Speaker A:I mean, that was a lot of.
Speaker B:Material in an hour and six minutes.
Speaker B:Dude, that was impressive.
Speaker A:So, gentlemen, Jill, I. I've been thinking a lot about some things in society, and this, this is one of many of the topic that we covered tonight.
Speaker A:But there are some things that I think we take on face value as humans that make absolutely no sense.
Speaker B:Okay.
Speaker A:That bother me to my core.
Speaker B:You hooked me in.
Speaker A:Yeah.
Speaker A:Trust me, you're gonna.
Speaker A:We're gonna start thinking this stuff through.
Speaker A:Okay.
Speaker B:Okay.
Speaker A:I want to be honest.
Speaker A:Okay.
Speaker A:All right.
Speaker A:I was thinking about plane crashes the other day.
Speaker A:I believe from a technological standpoint, we are past a world where plane crashes should still exist and kill people.
Speaker B:Yeah.
Speaker A:And I know you're saying, Chris, how could that be?
Speaker A:Most of planes in service today go up in the air, go down.
Speaker A:Go up in the air, go down.
Speaker A:But they've been doing that for years.
Speaker A:We service engines.
Speaker A:You could vary.
Speaker A:And I am not a scientist, I'm not an engineer.
Speaker B:Okay.
Speaker A:But I'm also not stupid.
Speaker A:That stupid.
Speaker A:Why don't we have planes that can just eject the passenger department with, I don't know, a life raft underneath the entire thing, or better yet, a parachute attached to it.
Speaker A:You're telling me we can refuel jet engines for the military in air, but if a plane starts to go down, we can't hit the eject button and have everybody in the passenger cockpit pull, like get shot out the back of the plane and a giant parachute go up and they float down to the earth.
Speaker B:So I have a family member that is an engineer for airplanes on airplanes.
Speaker A:I did not know that.
Speaker B:Yeah.
Speaker B:Oh, you.
Speaker B:You know, I'm not gonna name any names, but I'll tell you after the share.
Speaker B:I'm just gonna leave it very vague for now and I'll tell you about after the show.
Speaker B:And then this person will.
Speaker B:This person, is she right?
Speaker B:Gets flown out all over the world to check on these planes all over the world.
Speaker B:And she's sometimes he.
Speaker B:She sometimes gets stuck at these locations for weeks on end to repair these planes.
Speaker B:And it's insane the amount of problems that come up.
Speaker B:Everything from exit doors right to oh, I finance planes.
Speaker A:I've done the whole like, I've seen the whole list of stuff.
Speaker A:Do you know when they work on planes, they take one engine out, put a replacement temporary engine in.
Speaker A:They.
Speaker B:They a lot of trust, bro.
Speaker A:Yeah, they maintain and repair that engine.
Speaker A:They service the engine, put that engine back, put another engine into the other engine.
Speaker B:Yeah.
Speaker A:Pull the original engine out, service that one separately.
Speaker A:The plane's flying during this time.
Speaker A:Yeah, put another engine, bro.
Speaker A:I can.
Speaker A:I've.
Speaker A:You put an engine in a car before and pull it out?
Speaker B:No, but I know the amount of work that it goes into.
Speaker A:Yeah, they log everything.
Speaker A:So it's all logged.
Speaker A:And you can have like there's logs and tracking for all this, but there's a lot.
Speaker A:And I'm sitting, I'm sitting here thinking to myself, like, why are we at the point where we have drone technology?
Speaker A:You're telling me we can't build a cabin where if the plane goes down, propellers pop out?
Speaker A:What is this?
Speaker A:The plane that can eject in and say there you go.
Speaker A:Who's this?
Speaker A:The plane that can eject the entire cabin to save lives in emergency.
Speaker A:Why can't we build this?
Speaker A:This is brilliant.
Speaker B:Well, they're saying that they can.
Speaker B:It's just probably not financially feasible.
Speaker B:Yes, that.
Speaker A:That's my point.
Speaker B:That's the problem.
Speaker A:Okay, why, why are we letting.
Speaker A:Okay.
Speaker A:These large scale.
Speaker B:That's pretty safe.
Speaker A:Yeah, see, that's exactly it.
Speaker A:It's basically like an aircraft carrier with that center that carries like.
Speaker A:Imagine like it carries like.
Speaker B:This isn't the first design the Ukrainian engineer has produced.
Speaker B:Last year, Tatarinko, okay.
Speaker B:All her name, received patents for an invention with an escape capsule system that would rescue passengers on board.
Speaker A:You see, this is what I'm telling you.
Speaker A:Why.
Speaker B:Why this is.
Speaker A:Yeah, we have.
Speaker A:We all have satellite wifi.
Speaker A:Now you're telling me that any plane is going to go down and people can't be like telling you why.
Speaker A:And let's just cover this basic thing too.
Speaker A:This bothers me.
Speaker A:We should all have cell phone signal at all times in any plane, period.
Speaker B:Yeah, that's still an issue that I don't.
Speaker A:That we went to Hawaii recently.
Speaker A:Well, the two of us, not you and I get a lot.
Speaker B:I got a lot of DMS during that time.
Speaker B:Like dang, bro, where was your invite?
Speaker B:This is before I met you.
Speaker B:So.
Speaker B:Huh.
Speaker A:They booked.
Speaker A:He booked a Flight before he met you.
Speaker B:That's really.
Speaker B:Well, I did.
Speaker B:So.
Speaker B:So if you book it, he's like, oh, we can't invite him.
Speaker B:We already booked it.
Speaker A:That's right.
Speaker B:That's right.
Speaker B:No comment.
Speaker B:Silence.
Speaker B:Silence from behind the desk.
Speaker A:In any event.
Speaker A:Yeah.
Speaker A:They had WI fi all the way over the water.
Speaker A:I remember going to Hawaii.
Speaker A:And you couldn't do that.
Speaker B:Right.
Speaker A:You know, so there.
Speaker A:If we're that connected and we have satellites all over the world.
Speaker A:Some of this stuff doesn't make any sense to me anymore.
Speaker B:And I'm the guy that always forgets to download his shows, like, beforehand.
Speaker A:You don't have to do that anymore.
Speaker A:You stream them all.
Speaker B:Yeah, if you get WI fi.
Speaker B:Yeah, if you have WI fi.
Speaker A:No, WI fi on most of these flights is free to stream the shows, right?
Speaker B:No, but I'm saying if there isn't.
Speaker B:On the last plane ride that I had, couldn't do it.
Speaker A:What was that?
Speaker B:And I didn't.
Speaker B:And I didn't download it.
Speaker A:Where'd you go?
Speaker B:Frisco, Remember?
Speaker A:What?
Speaker A:Yeah, no WI fi on a flight to Frisco.
Speaker B:No WI fi on a flight to Frisco.
Speaker B:Did you fly Frontier?
Speaker B:No.
Speaker B:What did we know?
Speaker B:I think we flew United.
Speaker B:Oh, wow.
Speaker A:That's not.
Speaker A:They must have a problem with WI fi then.
Speaker B:Yeah.
Speaker A:All I'm saying is there's a lot of things that we have come to accept as normal in society that aren't normal.
Speaker A:And we just.
Speaker A:We just take it for what it is.
Speaker A:We.
Speaker A:Our parents believed it, so we believe it.
Speaker A:And everybody else.
Speaker A:Like, why do we accept this level of just Frank.
Speaker B:Which is.
Speaker B:Yeah, we don't demand more.
Speaker B:Demand excellence.
Speaker A:It's just we.
Speaker A:We do.
Speaker A:Like, the whole world has gotten so profit centric that we treat ourselves like cattle and don't even recognize it.
Speaker B:Yeah, we just.
Speaker B:We just are going along.
Speaker B:I hear you.
Speaker A:It just bothers me.
Speaker A:It's not even that.
Speaker A:It's just.
Speaker A:It's like.
Speaker A:That's a great example.
Speaker A:This I saw recently.
Speaker B:I don't think it's just that, though.
Speaker B:I think it's also.
Speaker B:Man, people nowadays are dealing and juggling so much and they're so desensitized to it.
Speaker B:It's hard to stop, like to sit and complain and demand more from.
Speaker B:From.
Speaker B:Let's just say these airline companies.
Speaker B:Like, man, I got.
Speaker B:I got a lot of other.
Speaker B:I need to work.
Speaker A:Okay.
Speaker A:But that's what they.
Speaker A:Right, the conspiracy theorists here, that's what they want from.
Speaker A:They want us to be sheep.
Speaker B:Yeah, of course.
Speaker A:I Mean, think about this.
Speaker A:The whole concept of health care in this country is so ass backwards.
Speaker A:Right?
Speaker B:Yeah.
Speaker A:To cover my son, myself.
Speaker B:Fix it.
Speaker A:And my wife.
Speaker B:Yeah.
Speaker A:Is 3, 600amonth with cobra.
Speaker B:Yeah.
Speaker A:Right.
Speaker A:Because I'm unemployed.
Speaker B:Right.
Speaker B:Yeah.
Speaker A:Just for health care.
Speaker A:And that's insurance.
Speaker A:So let's just say God forbid, you know, something happens.
Speaker A:That's a different conversation.
Speaker A:But if something doesn't happen.
Speaker B:That's so wild, man.
Speaker A:That's over two months.
Speaker A:That's $7,200 that went to them in case something happened.
Speaker A:But if nothing happened, I don't get it back.
Speaker B:Yeah.
Speaker B:And it's illegal to not have your children covered.
Speaker A:What?
Speaker B:Yeah, like, so, like, if you wanted to.
Speaker B:If you wanted to roll the dice and be like, I'm just going to hope to not, you know, get sick.
Speaker B:Right.
Speaker B:Over the course of the next few months thing in Cal.
Speaker B:In California, like, as adults, I think you could do it.
Speaker B:But for.
Speaker B:If you have kids, it's illegal to not have them covered.
Speaker B:Look it up.
Speaker B:You.
Speaker A:I did not know that.
Speaker B:No, I think it is illegal.
Speaker B:It is illegal, you're saying, right?
Speaker B:Yeah.
Speaker B:Yeah.
Speaker A:How do they regulate that, though?
Speaker A:There's so many.
Speaker B:No, no, there's a form.
Speaker B:There's a form you get from your employer that shows that marks off that everybody's been insured.
Speaker A:Oh, so it's on the employer to regulate this?
Speaker B:No, no, it shows.
Speaker B:It's just a form that your.
Speaker B:Your employer provides you that says that you have been insured.
Speaker B:Right.
Speaker B:And covered over the.
Speaker B:Over this last year.
Speaker A:So walk me through this.
Speaker A:If who enforced this?
Speaker B:You have to.
Speaker B:You have to prove it.
Speaker B:It.
Speaker B:It's a good question.
Speaker B:I know.
Speaker B:On your taxes, you have to show that you recovered for health care.
Speaker B:Yeah.
Speaker A:On your taxes.
Speaker B:I get a form every year and I submit it to the cba.
Speaker A:Yeah, that's for.
Speaker A:That's for.
Speaker B:No, but it shows.
Speaker B:But it shows that you're covered.
Speaker A:Yeah, I'm dying.
Speaker A:See if you can find out.
Speaker B:And that's the good question is who regulates.
Speaker A:Yeah, who regulates that?
Speaker B:Yeah.
Speaker B: I guess it was eliminated in: Speaker B:2019.
Speaker B:I just looked this up.
Speaker B:Hold on.
Speaker A:Let you read that.
Speaker B:Yeah.
Speaker B:The penalty for diving other shirts was eliminated.
Speaker B:Wait, for children, though.
Speaker B:Yeah.
Speaker B:That was key distinction.
Speaker B:I did, I did clarify that.
Speaker B:Is it illegal to not.
Speaker A:You're very skeptical right now.
Speaker B:I'm a little worried.
Speaker B:I'm sweating a little bit.
Speaker B:But I, I want to say I'm right about this.
Speaker A:Even if you, even if you can't.
Speaker B:Roll the dice you can't roll the dice on this when you have kids.
Speaker A:I don't doubt.
Speaker B:And maybe.
Speaker B:And maybe it's.
Speaker B:Maybe it might be for long.
Speaker B:Cool.
Speaker A:That looks like a long narrative.
Speaker B:Okay, not providing health insurance for children is not automatically considered illegal at the federal level.
Speaker B:But California, Massachusetts, New Jersey, Rhode Island, Washington, D.C. all require residents, including dependent children, to maintain a certain level of health insurance coverage or face a penalty.
Speaker A:Okay, but who regulates that?
Speaker B:That's a good question.
Speaker B:All I know, the state mandates it.
Speaker B:No, like the way.
Speaker B:The way they mandate you to send your kids to school.
Speaker B:It's mandated.
Speaker A:Yeah, but who reg.
Speaker A:What.
Speaker A:What agency is going to knock on your door and be like, hey, man, hey, bruh?
Speaker A:Because your school doesn't require to have evidence.
Speaker A:Covered care.
Speaker B:You're not covered.
Speaker A:Your.
Speaker A:Your work doesn't require to have.
Speaker A:I mean, your work lets you choose, but there's not a requirement.
Speaker B:I mean, they're not checking it.
Speaker B:Right.
Speaker B:But they do ask for, like, you know, your primary care physician and all that.
Speaker A:Yeah, but that's just.
Speaker B:They're not.
Speaker B:Yeah, yeah.
Speaker B:They're not verifying it.
Speaker A:And you could have a primary care physician and not have health care.
Speaker B:Yeah.
Speaker A:It's just weird.
Speaker A:Who would enforce that?
Speaker A:Somewhere out there is a doctor listening to the show going, these morons don't know what they're talking about.
Speaker B:Yeah, we know.
Speaker A:We know.
Speaker A:Right?
Speaker A:We're stupid.
Speaker A:Oh, by the way, anecdotal, but have you guys noticed there's a lot of alien talk as of late?
Speaker B:You brought this up.
Speaker B:He's like, it's just getting people comfortable with the idea.
Speaker A:Telling you the desensitization is happening, man.
Speaker B:Yeah, yeah.
Speaker A:It's everywhere.
Speaker A:Every single time.
Speaker A:I mean, on the news.
Speaker A:And I. I look at social media and go, okay, my algorithm.
Speaker B:Just get.
Speaker A:You know, I got you, dog.
Speaker B:Tell you right now when the aliens get here, I'm coming.
Speaker B:Will Smith.
Speaker B:Men in Black.
Speaker B:Let's go.
Speaker B:You can be Tommy Lee.
Speaker A:Okay.
Speaker B:Yeah, that.
Speaker B:That's our.
Speaker B:That.
Speaker B:That's what we do.
Speaker B:And they're just gonna accept us as, like, these guys are.
Speaker B:These guys are cool.
Speaker A:So you're gonna be the guy on Independence Day, staying in the rooftop.
Speaker B:No, that's not Men in Black.
Speaker B:That's not Men in Black.
Speaker B:That's.
Speaker A:It's another Will Smith.
Speaker B:Yeah.
Speaker A:You're merging, you know, for men in black 3.
Speaker A:He made $100 million.
Speaker B:No, he did not.
Speaker A:Will Smith.
Speaker A:Yeah.
Speaker B:Deserved every penny.
Speaker A:And then he slapped Chris Rock.
Speaker A:Yeah.
Speaker A:Hard to come over that.
Speaker A:Yeah.
Speaker B:How did that happen?
Speaker B:How Did I know?
Speaker B:It still bothers me.
Speaker A:Bothers me too.
Speaker A:Yeah.
Speaker B:He was so much better than that.
Speaker A:Was he though?
Speaker B:He should have been.
Speaker A:Should have been.
Speaker B:Yeah, should have been.
Speaker B:He was.
Speaker B:He was the chosen one.
Speaker B:He was Neo for such a long time.
Speaker A:Yeah.
Speaker B:Did you know.
Speaker B:Did you know the first.
Speaker B:The first season of Fresh Prince, he memorized every single person's lines because he didn't want anybody to mess up.
Speaker B:So you could see him lipping it in the background.
Speaker B:Everybody's lines.
Speaker A:I did not know that.
Speaker A:Yeah, don't.
Speaker A:Don't bite your lip when you talk to me like that.
Speaker A:It's a creepy dude.
Speaker B:Why.
Speaker B:Why did you.
Speaker B:You call me out.
Speaker A:It just.
Speaker A:You did.
Speaker A:You looked right at me.
Speaker A:Oh, you were like.
Speaker A:Like in my soul.
Speaker B:I had an itch.
Speaker A:He didn't scratch it.
Speaker A:Don't bite your lip like that.
Speaker A:I was like.
Speaker A:Is he trying to say something?
Speaker A:What you doing over here?
Speaker B:We had a.
Speaker B:We had a review.
Speaker A:Oh yeah, we did have a review.
Speaker B:This is.
Speaker B:This is actually under the YouTube video.
Speaker B:So if you're listening this long and you haven't yet, leave us an honest 5 star review or head over to YouTube subscribe.
Speaker B:Ring that notification bell.
Speaker B:Hit the like button.
Speaker B:Do all the moist goody good stuff.
Speaker B:This from Craig Lee.
Speaker B:I can't even say it looks like Craig, right?
Speaker B:Agree completely with ending about guests.
Speaker B:As someone who started listening to your podcast after I heard you on Mind Pump Mind Pump.
Speaker B:Mind Pump Adam.
Speaker B:Adam's Friday IG lives your thoughts and takes on the market is what got me listening to you every Tuesday.
Speaker B:I personally skipped a few of the pods with guests because they did not apply to me personally.
Speaker B:But your take on the market, Fed banking, 6 banking system, etc applies to almost everyone.
Speaker B:Keep up the good show.
Speaker B:Keep up.
Speaker B:I usually catch it on Spotify but you weren't joking with the 4K visuals.
Speaker B:May have to watch on YouTube a little more often.
Speaker B:5 stars.
Speaker A:There you go.
Speaker A:Gang gang.
Speaker A:The comment at the end, weird confused me a little bit.
Speaker B:The other one, right?
Speaker B:Steve Burns.
Speaker A:No, no, that one.
Speaker A:Just because we.
Speaker A:We do.
Speaker A:We are on Spotify video.
Speaker B:Oh yeah.
Speaker A:Yeah.
Speaker A:For those of you who don't know, we don't use Spotify as our hosting platform.
Speaker A:So what Spotify does when you load it to your video to it, it rips the audio from that and pushes the audio to audio streaming platforms.
Speaker A:We started using a different syndicating service.
Speaker A:So the audio loads first on Spotify and then within the hour of release around 7am well, I'm sorry the YouTube goes live at 7am and then at 7am the video component also drops on Spotify, replacing the audio that's there with a video format.
Speaker A:And that's there in.
Speaker B:Oh, that's probably why.
Speaker A:Yeah, yeah.
Speaker A:So if he's like an early listener, like right when it comes out, that's probably the difference.
Speaker B:Or east coast, right?
Speaker A:Yeah, or East Coast.
Speaker A:So what we did is we wanted to.
Speaker A:We knew that a lot of people were going into work in the mornings.
Speaker B:We got a.
Speaker B:We got a big group of people that listen out of Chicago and New York.
Speaker A:Yeah, Chicago, New York are big cities for us.
Speaker B:I don't know why they get us.
Speaker A:I guess.
Speaker B:Yeah.
Speaker A:Chicago Bears.
Speaker B:One of my favorite.
Speaker A:Beautiful.
Speaker B:One of my favorite US Cities.
Speaker A:Yeah.
Speaker A:Beautiful.
Speaker B:I was blown away by how clean it was.
Speaker B:I don't know if that.
Speaker B:That's messed up of me to be shocked by that.
Speaker B:But very clean, very nice.
Speaker A:Yeah, yeah, I was there last year.
Speaker B:Yeah, I was there maybe two years ago for a wedding.
Speaker A:Thanks for the invite.
Speaker B:That was not my wedding, bro.
Speaker A:You can't take plus one, bro.
Speaker A:Did your wife go say wedding crashers?
Speaker B:Yes, she was.
Speaker A:Yeah.
Speaker A:I'm just saying it's her family.
Speaker A:Baby, you can stay home.
Speaker A:I was the plus one, you know.
Speaker A:You want to take me?
Speaker B:It's.
Speaker B:It's a really.
Speaker A:There's some point.
Speaker B:It's a really good time when you're.
Speaker A:There at some point.
Speaker A:We looked over back then.
Speaker B:Not anymore, though.
Speaker B:You don't even have a glass anymore.
Speaker B:It's not.
Speaker B:You're not.
Speaker B:You're not.
Speaker B:You're not that guy.
Speaker B:You're not fun anymore.
Speaker A:I went, so my dad's birthday was two nights ago.
Speaker B:Don't tell me you had a glass.
Speaker A:No, no.
Speaker A:And everybody's drinking, right?
Speaker A:So I do this thing where I know the social stigma of me not drinking bothers people.
Speaker B:Yeah, it does.
Speaker B:It brings down my mood.
Speaker B:I'm just gonna be honest.
Speaker B:Just keep your ass at home.
Speaker A:So I order.
Speaker B:It is messed up.
Speaker B:I'm that guy.
Speaker B:I could be that guy.
Speaker A:Can you.
Speaker B:With you, I can.
Speaker B:No one else.
Speaker A:So I, I ordered an athletic, non alcoholic beer.
Speaker B:Do you want to be an athlete so bad?
Speaker B:You called it.
Speaker B:Why can't you just say a non.
Speaker A:Alcoholic beer name is athletic, you dick.
Speaker B:Okay, sorry.
Speaker A:It is a non alcoholic beer.
Speaker A:And it comes to the table and, you know, I'm drinking the beer or whatever and, and, and somebody looks at the can and goes, does that say it has pointed.04% alcohol by volume?
Speaker A:And I'm like, yeah, it's Non alcoholic.
Speaker A:Like, but is it, though?
Speaker B:It's.
Speaker B:Yeah.
Speaker B:You can't just be like, there's less than a certain amount of cocaine in this.
Speaker B:I don't.
Speaker B:I don't do drugs.
Speaker A:Right Back to Hunter Biden.
Speaker A:I don't miss drinking at all.
Speaker A:Like, not even a little bit.
Speaker B:Yeah, yeah.
Speaker B:Because you're not fun anymore, that's why.
Speaker A:That's not true.
Speaker A:I'm very fun.
Speaker B:I don't drink.
Speaker B:I don't drink either.
Speaker B:But occasionally it's okay to have a glass.
Speaker B:Like, imagine having a Hawaiian ribeye together and you don't have a glass.
Speaker B:That's, like, weird.
Speaker A:Yeah.
Speaker A:Although I will admit a Hawaiian ribeye is due for the three of us.
Speaker A:But I.
Speaker A:You.
Speaker A:You weren't there whenever we took.
Speaker A:Jeff Weil.
Speaker A:Had his first Hawaiian ribeye.
Speaker A:Oh, my God.
Speaker B:Blew him away.
Speaker A:Blew him away.
Speaker B:You got it with the fries, too, right?
Speaker A:Yeah.
Speaker B:How do you order?
Speaker B:How do you order your steak?
Speaker B:Medium.
Speaker B:Disrespectful.
Speaker B:Well, I mean, come on, bro.
Speaker A:It's a one ribeye.
Speaker A:It's always charred on the outside anyway.
Speaker B:I get it.
Speaker A:Yeah.
Speaker B:Getting rare, bro.
Speaker A:Mind you, he gets his well done.
Speaker A:I've seen you order.
Speaker A:I gotta make sure his dad, man.
Speaker B:You know what they do when you order?
Speaker B:Like, people at restaurants, if you get like medium well or well done, they just give you the worst piece of meat because they feel like you can't tell the difference.
Speaker B:That's an actual thing.
Speaker B:Watch the bear.
Speaker A:I don't watch.
Speaker A:Did you watch that show?
Speaker A:You gonna do this to me right now?
Speaker B:Yeah, I'm on season three.
Speaker A:Yeah, he's allowed to watch the show.
Speaker B:He watches a lot of shows.
Speaker A:He watched a lot of tv.
Speaker B:He watches a lot of shows.
Speaker B:When the hell do you watch this tv, bro?
Speaker B:You need to stop watching these new shows and get on.
Speaker B:There's some movies that he has not seen that even he saw.
Speaker A:He saw Anchorman for the first time today.
Speaker B:Today.
Speaker B:Well, not the whole.
Speaker A:He walked in, he was like, this is funny.
Speaker A:I'm like, it's Anchorman.
Speaker A:He goes, I've never seen.
Speaker A:I'm like, what the fuck?
Speaker B:Well, I've seen clips.
Speaker B:Clips.
Speaker A:How do you.
Speaker B:Clips?
Speaker A:This is the problem of generation.
Speaker B:You, like, you take me.
Speaker B:You take me.
Speaker B:Strike me as a TV show guy, not a movie guy.
Speaker B:He wants.
Speaker B:He wants the character development.
Speaker A:I got to bleep that out now.
Speaker B:That's what he wants.
Speaker B:What did I say?
Speaker A:It's offensive, dog.
Speaker B:What?
Speaker B:What's offensive?
Speaker A:TV show guy.
Speaker A:Everything.
Speaker B:I was.
Speaker B:Nothing offensive, but hold On.
Speaker B:He probably can appreciate the character development, which shocks me, that you haven't seen Game of Thrones.
Speaker A:I have noticed.
Speaker B:It's the best.
Speaker A:It's softcore porn.
Speaker B:Of course it's not.
Speaker B:It's the best.
Speaker A:You watch porn, there's no alcohol.
Speaker B:There's literally.
Speaker B:There's literally no better character development in the history of television.
Speaker A:That's not true.
Speaker B:The history of.
Speaker A:I told you to watch Loki.
Speaker B:Oh, man.
Speaker B:Stop it.
Speaker A:You stop it.
Speaker B:Okay.
Speaker A:Your son loves Marvel.
Speaker A:I'm trying to hook you up.
Speaker B:Yeah, he hasn't watched the movies yet, but we're gonna get him there.
Speaker A:Why?
Speaker A:My son's watched the movies.
Speaker A:He's six.
Speaker B:So I sat.
Speaker B:I sat him down to start, and he saw the opening scene of Iron man, and he just ran out the room.
Speaker A:He got scared because the first Iron man, he's in a terrorist desert.
Speaker A:He probably thought of his family.
Speaker A:Now.
Speaker B:You got to bleep that out.
Speaker A:No, I don't.
Speaker B:I'm not laughing at that.
Speaker A:I'm unemployed.
Speaker B:That's disrespectful.
Speaker A:They were literally in the Afghan desert.
Speaker B:That.
Speaker B:I know it was.
Speaker B:Yeah.
Speaker B:They said.
Speaker B:They didn't even say they're in Afghanistan, but somehow when I watched it, I was like, that's Afghanistan.
Speaker A:They weren't speaking Arabic, bro.
Speaker A:That's all I'm saying.
Speaker B:Yeah.
Speaker B:When they were placing that thing in his chest, that's when he ran out the room.
Speaker B:He's like, turn it off.
Speaker A:I'm like, I think they did say it was in Afghanistan.
Speaker B:I don't think so.
Speaker A:Brigil.
Speaker B:Pasto.
Speaker B:How did.
Speaker B:Dude, respect.
Speaker B:You don't even know what Pasto is.
Speaker A:It's his people.
Speaker B:No, that's my people.
Speaker B:And I don't even speak Pashto.
Speaker A:Huh?
Speaker A:You speak Farsi?
Speaker B:Yeah.
Speaker B:No, Daddy.
Speaker B:They just call it Farsi.
Speaker B:It's because.
Speaker B:For you to understand.
Speaker B:But it's really not Farsy.
Speaker B:It's Daddy.
Speaker B:Okay.
Speaker A:All right.
Speaker B:This is.
Speaker B:I had to tell my wife about the peace sign backwards thing.
Speaker B:Like, be careful.
Speaker A:It's very confusing me.
Speaker A:I still don't understand.
Speaker B:Honestly, you can't live in this world without offending somebody.
Speaker B:Yes.
Speaker B:In Marvel Cinematic Universe, specifically the first Iron man movie, Tony Stark travels to Afghanistan.
Speaker A:Bam.
Speaker B:But they didn't.
Speaker B:But that.
Speaker B:That doesn't say.
Speaker B:The video explains how Tony Stark flew to Afghanistan.
Speaker A:Just look me in the eyes.
Speaker A:When you look this way, you can buy your lips.
Speaker B:First of all, it's not.
Speaker A:Look this way.
Speaker A:First of all, look this way.
Speaker B:Where did they travel to?
Speaker A:Look this way is it look this way.
Speaker B:It's not Afghanistan.
Speaker B:It's Afghanistan.
Speaker A:You said it, not me.
Speaker A:Number one.
Speaker A:Number two, bite your lip.
Speaker A:Look at me like you did before.
Speaker B:Oh, Christopher.
Speaker A:All right, you can't end the show now.
Speaker B:We're going.
Speaker A:I'm just coming in hot.
Speaker B:Mr. Fajian, you got anything else?
Speaker B:Let's see.
Speaker B:He's got.
Speaker B:Oh, let's see.
Speaker B:Okay, so I saw a video that you can get a doi from drinking a Monster energy drink.
Speaker B:Oh, yeah, Yeah, I did see this, too.
Speaker B:Is it true?
Speaker B:Yeah, it's like a false positive.
Speaker A:Oh, that.
Speaker A:I'm drunk all the time.
Speaker B:Is this how.
Speaker B:Is.
Speaker B:Is this how attorneys are getting around DUIs now?
Speaker B:I think so.
Speaker B:No way.
Speaker B:So keep one in the car, huh?
Speaker B:Just.
Speaker B:Just keep an empty can in the car.
Speaker B:Got to, bruh.
Speaker A:Yeah.
Speaker A:I don't.
Speaker B:You were a big.
Speaker B:You were a big Monster guy until C4 came around.
Speaker A:Started Rockstar, first, moved to Monster, now C4.
Speaker B:I was Sugar free Red Bull for a long time.
Speaker A:I don't.
Speaker A:I don't like.
Speaker A:What?
Speaker B:With vodka?
Speaker B:No, no.
Speaker B:Yeah.
Speaker A:No, I don't like drinks with color now.
Speaker A:Like, I don't want them colored.
Speaker B:Oh, you're part of that artificial dye stuff.
Speaker B:That red 40.
Speaker B:Can't have red 40.
Speaker B:That's your thing.
Speaker A:I just feel like it's an unnecessary additive, you know?
Speaker B:It is.
Speaker B:Why they got to make change.
Speaker A:I just leave it clear.
Speaker B:Yeah.
Speaker A:Yeah.
Speaker A:Like, you know, just because it's fruit punch doesn't mean it's gotta be red.
Speaker B:Right?
Speaker B:It is my.
Speaker B:It is.
Speaker B:It does blow your mind a little bit.
Speaker B:There's this ice cream that went viral a couple years ago that I've been wanting to get.
Speaker B:It's just way too expensive, but I.
Speaker B:We should get it for the show and try it on the show.
Speaker B:It's.
Speaker B:It looks like it's fried chicken, but it's ice cream.
Speaker A:Why would I.
Speaker B:We should do that.
Speaker B:It's my.
Speaker B:I don't know what it is.
Speaker B:I'm saying we should get it for the show.
Speaker A:You don't know what flavor it is?
Speaker B:No, it was on, dude.
Speaker B:Perfect.
Speaker B:My kids saw that.
Speaker B:Can we please get it?
Speaker B:So I went online.
Speaker B:I went to go look it up.
Speaker B:It was like, 60 bucks.
Speaker B:I was like.
Speaker B:Or maybe it was more for ice cream.
Speaker B:Look it up, Regil.
Speaker A:How you gonna buy that, though?
Speaker B:They ship it to you.
Speaker B:I think it's out of, like, South Carolina.
Speaker A:Frozen.
Speaker B:Frozen.
Speaker A:That's weird.
Speaker A:Why you shipping ice cream from South Carolina?
Speaker B:It gets there in a day.
Speaker A:You got weight problems.
Speaker B:You Got.
Speaker B:No, but this is an experience.
Speaker B:Yeah.
Speaker A:Listen, I don't care how badly you want the ice cream, bro.
Speaker B:It's fried chicken.
Speaker A:Okay?
Speaker A:I can't ask you at one point in time.
Speaker B:Is this it?
Speaker B:Oh, yeah, that's it.
Speaker A:Fried chicken, ice cream.
Speaker B:Where does it come from?
Speaker A:What's the flavor?
Speaker A:So many questions.
Speaker B:What's it called?
Speaker B:Life raft.
Speaker A:It's on Shark Tank, dude.
Speaker A:Do they have ribs?
Speaker B:It was a fresh ice cream.
Speaker B:Oh, I didn't know that.
Speaker A:That's weird.
Speaker B:Look at that, bro.
Speaker B:That's ice cream.
Speaker B:Imagine taking a bite that would blow your mind.
Speaker A:That just looks like vanilla ice cream.
Speaker A:It's been, like, fried.
Speaker B:That's gross.
Speaker A:The hot dog ice cream.
Speaker B:Glizzy.
Speaker B:It's heartburn.
Speaker B:That's heartburn.
Speaker A:Who are these people?
Speaker B:Yeah.
Speaker A:Yeah.
Speaker A:Okay, well, I'm not understood, but.
Speaker A:James Beard foundation award.
Speaker A:I don't know who that is.
Speaker B:That's.
Speaker B:It's.
Speaker B:That's like Michelin level.
Speaker A:Also don't know that one.
Speaker A:Yeah, I don't really focus on food, gentlemen.
Speaker B:I could.
Speaker B:I could tell that your zepati is kicking in.
Speaker A:Oh, baby.
Speaker A:Is it kicking in?
Speaker A:I don't think about it the same way.
Speaker B:Not anymore.
Speaker B:Yeah, use it as fuel.
Speaker B:Move on to the next thing.
Speaker B:Yeah, Yeah.
Speaker A:I eat when I'm hungry.
Speaker A:I work when I'm not.
Speaker B:Look at that.
Speaker B:Damn.
Speaker B:Damn.
Speaker B:That's a bar, Socrates.
Speaker A:It's Call me.
Speaker A:So great.
Speaker B:That's a bar.
Speaker B:We're going to leave it on that, ladies and gentlemen.
Speaker B:All right, good night, everybody.
Speaker A:Okay, Goodbye.
Speaker B:That's because you don't need food.
Speaker B:You have no energy.
Speaker A:No energy.
Speaker B:Bye.
Speaker A:I'm drunk off that C4, baby.
Speaker A:Hell.
