Welcome to the middle. I'm Jeremy Hobson. It is great to have you here for our new weekly show. If you joined us last week, you know we have a house DJ named Tolliver.

Welcome to the middle. I'm Jeremy Hobson. It is great to have you here for our new weekly show. If you joined us last week, you know we have a house DJ named Tolliver.

Hi Tolliver, Hey, Jeremy, how's it going. It's our second show. We're going up so fast.

Hi Tolliver, Hey, Jeremy, how's it going. It's our second show. We're going up so fast.

I'm going up so fast. You're joining us today from Colorado Public Radio in Denver, bouncing across the country and when it comes to the country, Tolliver. The House is not in order right now, the House representatives, of course, and maybe we will find out next week if they can agree on a replacement for former Speaker Kevin McCarthy, who was ousted this week. Maybe Kevin McCarthy should have called into our show last week when we were talking about how to talk with people you disagree with politically.

I'm going up so fast. You're joining us today from Colorado Public Radio in Denver, bouncing across the country and when it comes to the country, Tolliver. The House is not in order right now, the House representatives, of course, and maybe we will find out next week if they can agree on a replacement for former Speaker Kevin McCarthy, who was ousted this week. Maybe Kevin McCarthy should have called into our show last week when we were talking about how to talk with people you disagree with politically.

He did.

He did.

I don't think that. I think I listened to the voicemails. I don't think he did. But we did get some great ones, and we listened to those voicemails. Let's listen to some of those calls that came in.

I don't think that. I think I listened to the voicemails. I don't think he did. But we did get some great ones, and we listened to those voicemails. Let's listen to some of those calls that came in.

My name is Karen, I'm calling from all in Missouri.

My name is Karen, I'm calling from all in Missouri.

The name is Donald.

The name is Donald.

I'm in Houston, Texas.

I'm in Houston, Texas.

My name is Christakiger. I am a Presbyterian minister. I live in Eudora, Kansas.

My name is Christakiger. I am a Presbyterian minister. I live in Eudora, Kansas.

Noah Patterson from Cape Maine, New Jersey. Ultimately starts with an individual's personal choice to be open to listen, and then from there it's a lot of how you frame the question. I disagree sounds a lot different than you were wrong.

Noah Patterson from Cape Maine, New Jersey. Ultimately starts with an individual's personal choice to be open to listen, and then from there it's a lot of how you frame the question. I disagree sounds a lot different than you were wrong.

I think what we're actually experiencing is a return to how politics were back at the beginning of the Civil rights movement, which is my earliest memory as a sixty plus year old woman of color.

I think what we're actually experiencing is a return to how politics were back at the beginning of the Civil rights movement, which is my earliest memory as a sixty plus year old woman of color.

One of the things you have to do to disagree with people who are disagreeing with you is say, excuse me, how.

One of the things you have to do to disagree with people who are disagreeing with you is say, excuse me, how.

About giving me an example of what it is you disagree with, and I'll do the same.

About giving me an example of what it is you disagree with, and I'll do the same.

Creating that spiritual space where we invite people to listen even in our differences, Folks in our congregation can still get along, even if they arrive at different places.

Creating that spiritual space where we invite people to listen even in our differences, Folks in our congregation can still get along, even if they arrive at different places.

Just some great calls last week, Thank you if you called in. But in addition to some of the drama we just talked about on Capitol Hill, we also got word this week that the interest rate on a thirty year fixed mortgage is now averaging almost eight percent, causing mortgage demand to drop to the lowest level since nineteen ninety six. So Tolliver, the question we are asking this hour.

Just some great calls last week, Thank you if you called in. But in addition to some of the drama we just talked about on Capitol Hill, we also got word this week that the interest rate on a thirty year fixed mortgage is now averaging almost eight percent, causing mortgage demand to drop to the lowest level since nineteen ninety six. So Tolliver, the question we are asking this hour.

Is how are higher interest rates and inflation affecting you?

Is how are higher interest rates and inflation affecting you?

And what is our phone number?

And what is our phone number?

It's eight four four for Middle that's eight four four four six four three three five three. You can also write to us at Listen to the Middle dot com. And if you want to buy me a house while you're at it, I'm good with that.

It's eight four four for Middle that's eight four four four six four three three five three. You can also write to us at Listen to the Middle dot com. And if you want to buy me a house while you're at it, I'm good with that.

And by the way, I encourage people to go to Listen to the Middle dot com and write to us there or through our social media channel which are linked to there, because we have a new phone system and we're still working at the kinks right now. So let's get to our panel. Guests joining me from Austin, Texas David Brown, host of the Business Wars podcast. He's also managing editor and hosts of Texas Standard from Station KUT. David is great to have you here.

And by the way, I encourage people to go to Listen to the Middle dot com and write to us there or through our social media channel which are linked to there, because we have a new phone system and we're still working at the kinks right now. So let's get to our panel. Guests joining me from Austin, Texas David Brown, host of the Business Wars podcast. He's also managing editor and hosts of Texas Standard from Station KUT. David is great to have you here.

It's great to be invited to join y'all. Thanks so much to hear me.

It's great to be invited to join y'all. Thanks so much to hear me.

And I want to ask you just because you're in Texas, which is a state by the way, that even when the economy is kind of floundering in other places. Texas likes to talk about how its economy is doing great. How does it feel right now inflation wise? To you in Texas?

And I want to ask you just because you're in Texas, which is a state by the way, that even when the economy is kind of floundering in other places. Texas likes to talk about how its economy is doing great. How does it feel right now inflation wise? To you in Texas?

It hurts.

It hurts.

I think it hurts a lot of folks all over. I think we've all felt a pinch of somewhere between a quarter to a third of an increase in prices for consumer goods. I'll tell you what's not really not not hurting us so much. I was out in California talking with an Uber driver and I mean, you know, we're not suffering from the gas prices. And energy is such an important and volatile component when it comes to inflation. So there, you know, gas prices are higher than they have been, but they're not outrageously high as high as they have been in past years, past recent years. So you know, getting along fine. But I say getting along fine, not everyone's getting along fine, right, And a lot of people are really hurting.

I think it hurts a lot of folks all over. I think we've all felt a pinch of somewhere between a quarter to a third of an increase in prices for consumer goods. I'll tell you what's not really not not hurting us so much. I was out in California talking with an Uber driver and I mean, you know, we're not suffering from the gas prices. And energy is such an important and volatile component when it comes to inflation. So there, you know, gas prices are higher than they have been, but they're not outrageously high as high as they have been in past years, past recent years. So you know, getting along fine. But I say getting along fine, not everyone's getting along fine, right, And a lot of people are really hurting.

And we're going to get to that as we as we get into this show. Let me bring in our other guests from Saint Louis, Missouri. Julie Nieman, financial analysts with Smith Moore and Company. Julie, great to have you on the show as well.

And we're going to get to that as we as we get into this show. Let me bring in our other guests from Saint Louis, Missouri. Julie Nieman, financial analysts with Smith Moore and Company. Julie, great to have you on the show as well.

Great to be here.

Great to be here.

And how does things how do things feel from your vantage point as you talked to your clients and other people in Saint Louis. When it comes to inflation right.

And how does things how do things feel from your vantage point as you talked to your clients and other people in Saint Louis. When it comes to inflation right.

Now, well, inflation and interest rates were made total linkage just because of Jerome Pole. But inflation's the thing that's really hitting people and hitting home because it covers not only the poor, but it covers also middle class and low middle class who are making it. But they don't have much room for a margin of error here. It's really hitting them on food and energy, the two big drivers here, and until we see some breaks in that, you're going to be seeing all of income going out that way and more debt taking on. So that's where you're really suffering.

Now, well, inflation and interest rates were made total linkage just because of Jerome Pole. But inflation's the thing that's really hitting people and hitting home because it covers not only the poor, but it covers also middle class and low middle class who are making it. But they don't have much room for a margin of error here. It's really hitting them on food and energy, the two big drivers here, and until we see some breaks in that, you're going to be seeing all of income going out that way and more debt taking on. So that's where you're really suffering.

Julie. We do know that from a high level that inflation has been coming down over the last year. Does it feel like that.

Julie. We do know that from a high level that inflation has been coming down over the last year. Does it feel like that.

Some areas it has, but service inflation has gone up and continues to go up. There's not much break in housing prices. You know, you're still seeing pretty sticky there because that has been a long term shortage, and you're not getting massive building there either, So it's strong demand and that's why Powell's going to have a tough time with inflation, some of it he can't fix. When you have strong long term shortage and housing strong long term demand in areas, there's nothing you can do about that.

Some areas it has, but service inflation has gone up and continues to go up. There's not much break in housing prices. You know, you're still seeing pretty sticky there because that has been a long term shortage, and you're not getting massive building there either, So it's strong demand and that's why Powell's going to have a tough time with inflation, some of it he can't fix. When you have strong long term shortage and housing strong long term demand in areas, there's nothing you can do about that.

You know, you've brought up your own Powell a couple of times. The FED chair David Brown, is he the one with the magic Wand here the people are going to blame President Biden. They might blame Congress if things don't get better from an inflation perspective. But how much power does Jerome and Powell have to fix this problem?

You know, you've brought up your own Powell a couple of times. The FED chair David Brown, is he the one with the magic Wand here the people are going to blame President Biden. They might blame Congress if things don't get better from an inflation perspective. But how much power does Jerome and Powell have to fix this problem?

Has a lot, and he doesn't have very much, doesn't have enough. You know that One of the reasons I love talking about business is because you know, these are numbers. We can all agree on a kind of a baseline, right. You can look at the data and you can say, this is what's real. Now what do we make of that? Whereas in politics often you have two or three narratives built around you know, the same set of facts. So I really, I really think that, you know, when it comes to the power that of the Fed, we're talking about the Open Market Committee primarily, and wouldn't I wouldn't put a whole lot of weight in one particular person, although there have been people Ben Bernanke comes to mind who have been instrumental in trying to deal with this issue in the past and who are kinds of lions in economics. But to be honest, I think a better perspective is less looking at the personalities. And I don't say this very often, but I think that it's less a look at the personalities and more a look at what this grouping of people who meet several times over the course of a year and talk about the direction of the economy where they are leaning. And I think one of the best gauges of making that determination are trying to get a consensus around what it is where the Federal Open Market Committee's leaning. I think you look at the at Wall Street, you look at the markets, you know, so.

Has a lot, and he doesn't have very much, doesn't have enough. You know that One of the reasons I love talking about business is because you know, these are numbers. We can all agree on a kind of a baseline, right. You can look at the data and you can say, this is what's real. Now what do we make of that? Whereas in politics often you have two or three narratives built around you know, the same set of facts. So I really, I really think that, you know, when it comes to the power that of the Fed, we're talking about the Open Market Committee primarily, and wouldn't I wouldn't put a whole lot of weight in one particular person, although there have been people Ben Bernanke comes to mind who have been instrumental in trying to deal with this issue in the past and who are kinds of lions in economics. But to be honest, I think a better perspective is less looking at the personalities. And I don't say this very often, but I think that it's less a look at the personalities and more a look at what this grouping of people who meet several times over the course of a year and talk about the direction of the economy where they are leaning. And I think one of the best gauges of making that determination are trying to get a consensus around what it is where the Federal Open Market Committee's leaning. I think you look at the at Wall Street, you look at the markets, you know, so.

You look at the markets right now, I mean that, you know, we've had a lot of bad days in the markets recently.

You look at the markets right now, I mean that, you know, we've had a lot of bad days in the markets recently.

We have we have you know, you know those vacuum gauges on a car where it shows you whether or not you're using too much gas or you're not using I you know you're saving all right. Well, if you've ever noticed on those vacuum gauges. If you step on the gas, you know you're burning up a lot of gas, and it's showing that. You know, it's showing that your fuel consumption is too high. So you back off just a little bit and it seems to line up. Ah, you're in that eco mode now, right, You're in that groove. But but if you'll notice, if you're not giving it enough gas, pretty soon your fuel efficiency will drop off the other direction. And I think of Wall Street as kind of doing that. It's that sort of vacuum gauge. It's telling us just how efficiently things are running. And right now that's all out of whack. I mean, if you go on you know, I was just on market Watch a moment ago, and here's the headline. The stock market is building up to a major buy signal all right now. Right below that headline in the picture that accompanies it is an opinion piece stock market over sold. So you know you're going to see all kinds of different takes on what's happening with the market. It'll be up one day, down the next. But I think a better read is to try to sort of synthesize a consensus around which way the market's headed and what that marketplace is trying to tell us.

We have we have you know, you know those vacuum gauges on a car where it shows you whether or not you're using too much gas or you're not using I you know you're saving all right. Well, if you've ever noticed on those vacuum gauges. If you step on the gas, you know you're burning up a lot of gas, and it's showing that. You know, it's showing that your fuel consumption is too high. So you back off just a little bit and it seems to line up. Ah, you're in that eco mode now, right, You're in that groove. But but if you'll notice, if you're not giving it enough gas, pretty soon your fuel efficiency will drop off the other direction. And I think of Wall Street as kind of doing that. It's that sort of vacuum gauge. It's telling us just how efficiently things are running. And right now that's all out of whack. I mean, if you go on you know, I was just on market Watch a moment ago, and here's the headline. The stock market is building up to a major buy signal all right now. Right below that headline in the picture that accompanies it is an opinion piece stock market over sold. So you know you're going to see all kinds of different takes on what's happening with the market. It'll be up one day, down the next. But I think a better read is to try to sort of synthesize a consensus around which way the market's headed and what that marketplace is trying to tell us.

Julie, Well, an intrinsic to that is that you have the real market indicator is where are going the quality of earnings that come out of it? Because jolly numbers are out there all the time and earnings are artificially kided, we know that. But when earnings are reviewed in terms of quality earnings, you know which direction the market ultimately is going to discount. Right now, the quality of earnings is not good. There are so many accounting gimmicks and jolly numbers of Wall Street is using to inflate earnings for one major reason, make them look better than they are, because that's how everybody's compensated. That you really do have an over not an over sold market. You probably still have a lot of froth in the market, especially in certain sectors. You take a look at the Magnificent seven. You know, are these semi tech companies really worth all that money? You're looking at artificial intelligence discounted for the next fifty years. When the price earnings multiple, it's a little hard to believe on that. So there's still a lot of froth out there.

Julie, Well, an intrinsic to that is that you have the real market indicator is where are going the quality of earnings that come out of it? Because jolly numbers are out there all the time and earnings are artificially kided, we know that. But when earnings are reviewed in terms of quality earnings, you know which direction the market ultimately is going to discount. Right now, the quality of earnings is not good. There are so many accounting gimmicks and jolly numbers of Wall Street is using to inflate earnings for one major reason, make them look better than they are, because that's how everybody's compensated. That you really do have an over not an over sold market. You probably still have a lot of froth in the market, especially in certain sectors. You take a look at the Magnificent seven. You know, are these semi tech companies really worth all that money? You're looking at artificial intelligence discounted for the next fifty years. When the price earnings multiple, it's a little hard to believe on that. So there's still a lot of froth out there.

You know, we're talking about these these things like the markets and mortgages. I want to point out that there are a lot of people who do not own homes, are not invested in big ways in the market, and in fact, when you look at the numbers, people who are renting feel inflation in some cases more than people who are homeowners.

You know, we're talking about these these things like the markets and mortgages. I want to point out that there are a lot of people who do not own homes, are not invested in big ways in the market, and in fact, when you look at the numbers, people who are renting feel inflation in some cases more than people who are homeowners.

David Oh, Absolutely, I mean, there's no question about that. And in fact we're seeing certainly here in the Austin area, but I think in Texas, which has had extraordinary growth over the past four years or so, a real housing crunch. I was reading the other day about this AIRB and B effect and what that means for real estate, and the point that was being made was that now you have a market for people who are looking for places to buy and basically rent out. That's in a perfect world, of course, with interest rates as high as they are right now, not a lot of people wanting to go out and buy. But those who do buy are heavily capitalized, which means they have a lot of money and it's not everyday folks, and that means that there's a real fight for a lot of those spaces, and that allows those prices to drift upwards and it's contributing. I mean, we see it as a major factor in what we call our rising inflation rates.

David Oh, Absolutely, I mean, there's no question about that. And in fact we're seeing certainly here in the Austin area, but I think in Texas, which has had extraordinary growth over the past four years or so, a real housing crunch. I was reading the other day about this AIRB and B effect and what that means for real estate, and the point that was being made was that now you have a market for people who are looking for places to buy and basically rent out. That's in a perfect world, of course, with interest rates as high as they are right now, not a lot of people wanting to go out and buy. But those who do buy are heavily capitalized, which means they have a lot of money and it's not everyday folks, and that means that there's a real fight for a lot of those spaces, and that allows those prices to drift upwards and it's contributing. I mean, we see it as a major factor in what we call our rising inflation rates.

David Brown, host of Business Wars and Texas Standard and don't go anywhere. We'll be right back with more of the middle. This is the Middle. I'm Jeremy Hobson. If you're just tuning in, we are a national call in show focused on elevating voices from the middle geographically, politically, and philosophically, or maybe you just want to meet in the middle. My guests this hour are Julie Nieman of Financial Analyst with Smith Moore and Company, and David Brown, who is host of the Business Wars podcast and Texas Standard. And we're asking you how are high interest rates and inflation affecting your personal economy? Tolliver, what is that number again?

David Brown, host of Business Wars and Texas Standard and don't go anywhere. We'll be right back with more of the middle. This is the Middle. I'm Jeremy Hobson. If you're just tuning in, we are a national call in show focused on elevating voices from the middle geographically, politically, and philosophically, or maybe you just want to meet in the middle. My guests this hour are Julie Nieman of Financial Analyst with Smith Moore and Company, and David Brown, who is host of the Business Wars podcast and Texas Standard. And we're asking you how are high interest rates and inflation affecting your personal economy? Tolliver, what is that number again?

It's eight four four for a middle, that's eight four four four six four three three five three. Come on, give us a call.

It's eight four four for a middle, that's eight four four four six four three three five three. Come on, give us a call.

Give us a call, or go to listen to the Middle dot com where you can reach out to us online. And I encourage you to do that because the phone system, you know, again it's new. We're figuring it out as we go. Right now. I by the way, I want to welcome this week the listeners of last former Southern formerly Southern California Public Radio and KNPR Las Vegas, Nevada Public Radio. Great to have you with us as well.

Give us a call, or go to listen to the Middle dot com where you can reach out to us online. And I encourage you to do that because the phone system, you know, again it's new. We're figuring it out as we go. Right now. I by the way, I want to welcome this week the listeners of last former Southern formerly Southern California Public Radio and KNPR Las Vegas, Nevada Public Radio. Great to have you with us as well.

I want to.

I want to.

Ask David Brown what other tools are available to policymakers like people at the FED when thinking about trying to bring inflation down other than simply raising interest rates further.

Ask David Brown what other tools are available to policymakers like people at the FED when thinking about trying to bring inflation down other than simply raising interest rates further.

Well, price controls come to mind. I don't know if how many of our listeners were around back in early seventies when meat prices began to spike and it was a real, huge inflation concern and it wasn't at all clear how the US would get out of it. President Nixon was in the House and he announced these very at the time very popular controls on the price of meat. It would fix it so that folks could afford it. Sounds great, but there are some real problems with price controls, and you know, not the least of which you know, even though you do make certain goods and services more affordable, that can lead to some real distortions in the market. You can have producers who are taking it on the chin and still trying to trying to make their business work and you have a notable change in quality. Funny about that, right, I mean, you put a price cap on it, you can expect people to try to cut corners and you end up with those sorts of distortions. So I think a lot of folks point to price controls, but I wonder if Julie has some other thoughts about ways to control inflation at that macro level.

Well, price controls come to mind. I don't know if how many of our listeners were around back in early seventies when meat prices began to spike and it was a real, huge inflation concern and it wasn't at all clear how the US would get out of it. President Nixon was in the House and he announced these very at the time very popular controls on the price of meat. It would fix it so that folks could afford it. Sounds great, but there are some real problems with price controls, and you know, not the least of which you know, even though you do make certain goods and services more affordable, that can lead to some real distortions in the market. You can have producers who are taking it on the chin and still trying to trying to make their business work and you have a notable change in quality. Funny about that, right, I mean, you put a price cap on it, you can expect people to try to cut corners and you end up with those sorts of distortions. So I think a lot of folks point to price controls, but I wonder if Julie has some other thoughts about ways to control inflation at that macro level.

Well, one of the key things that FED has is monetary policy is open marketing market transactions. They have been loading up their balance sheet with mortgages, all kinds of stuff that would border on the definition of crap. Unfortunately, they will buying so much of this to get so much money out to take care of the COVID problem and to keep people alive. Right now, they're letting it run off, which is also coming giving problems in the credit markets because they're the single biggest owner of many sectors of the market. They're letting it mature, they're letting it run off. But they also have some huge losses because they bought bonds with interest rates of two percent one half percent and now we're up at five percent.

Well, one of the key things that FED has is monetary policy is open marketing market transactions. They have been loading up their balance sheet with mortgages, all kinds of stuff that would border on the definition of crap. Unfortunately, they will buying so much of this to get so much money out to take care of the COVID problem and to keep people alive. Right now, they're letting it run off, which is also coming giving problems in the credit markets because they're the single biggest owner of many sectors of the market. They're letting it mature, they're letting it run off. But they also have some huge losses because they bought bonds with interest rates of two percent one half percent and now we're up at five percent.

Don't make me use the tools they have.

Don't make me use the tools they have.

Don't make us use the eight second delay button because of your language. But let's I think we actually have a call that got through to our system. Let me go to Bill in Tallahassee, Florida High Bill. Welcome to the middle Hey, how you doing doing great? Go ahead? Tell us how how inflation and higher interest rates are you?

Don't make us use the eight second delay button because of your language. But let's I think we actually have a call that got through to our system. Let me go to Bill in Tallahassee, Florida High Bill. Welcome to the middle Hey, how you doing doing great? Go ahead? Tell us how how inflation and higher interest rates are you?

Well? I've been renting a house for five years and I was trying to buy it last November at one hundred and ninety thousand, and now it's worth a lot more. But the interest rates at the time was like four and now they're at eight, so I can't afford the house. But my question is, how does raising interest rates?

Well? I've been renting a house for five years and I was trying to buy it last November at one hundred and ninety thousand, and now it's worth a lot more. But the interest rates at the time was like four and now they're at eight, so I can't afford the house. But my question is, how does raising interest rates?

Uh?

Uh?

The civil government raising interest rates help lower the.

The civil government raising interest rates help lower the.

Uh?

Uh?

Inflation?

Inflation?

Yes, I had a brain fart, I'm old, but the yeah, I mean it costs if you raise interest rates, it costs everybody more money, including companies that borrow money to run their business.

Yes, I had a brain fart, I'm old, but the yeah, I mean it costs if you raise interest rates, it costs everybody more money, including companies that borrow money to run their business.

So how does raising interest rates help the economy? How does it?

So how does raising interest rates help the economy? How does it?

How does it?

How does it?

How does it lower uh conflation for everybody?

How does it lower uh conflation for everybody?

Inflation?

Inflation?

I just I just don't understand it, all right, company that's all money to run?

I just I just don't understand it, all right, company that's all money to run?

Yeah, great question, Bill. Let's go to Julian Emon on that one.

Yeah, great question, Bill. Let's go to Julian Emon on that one.

Julie it's a crude but an effective tool. It kills demand. The best way to stop inflation is stop buying the stuff. We've never done that. There were a whole nation. If I want it all, I want it now, and we're willing as long as we've got a few extra coins in the jeans to run out and buy it. But when you lose your job, when things get tough in the economy, you no longer have the money or the ability to buy it, and that's when you see all the prices starting to drop like a rock. If we had the discipline of substituting, of conserving, especially in energy, take the keys away from the kids for crying out loud, start making them use the bicycles that are in the place, you know, do things like mass transportation. I know there's anathema over Middle America we have cars as mass transportation, but start carpool. There are one hundred and one ways of conserving energy. And the neat thing about that is it's cheap and it does kill demand, and you'll see prices coming down very effectively, which is exactly what they did before. The saudis absolutely hate conservation. So it's a cheap one of tool food the same.

Julie it's a crude but an effective tool. It kills demand. The best way to stop inflation is stop buying the stuff. We've never done that. There were a whole nation. If I want it all, I want it now, and we're willing as long as we've got a few extra coins in the jeans to run out and buy it. But when you lose your job, when things get tough in the economy, you no longer have the money or the ability to buy it, and that's when you see all the prices starting to drop like a rock. If we had the discipline of substituting, of conserving, especially in energy, take the keys away from the kids for crying out loud, start making them use the bicycles that are in the place, you know, do things like mass transportation. I know there's anathema over Middle America we have cars as mass transportation, but start carpool. There are one hundred and one ways of conserving energy. And the neat thing about that is it's cheap and it does kill demand, and you'll see prices coming down very effectively, which is exactly what they did before. The saudis absolutely hate conservation. So it's a cheap one of tool food the same.

Way, David, what about that question though from Bill and Tallahassee.

Way, David, what about that question though from Bill and Tallahassee.

Yeah, I mean, I think it's a great question, and I think it's an important question, and I think a lot of people are a little bit afraid of admitting that they don't know when they hear I mean, we constantly hear these headlines on the news. You know, the FED has increased interest rates. But I don't think we put two and two together. I think it's a very fair and indeed a very important fundamental question for folks to understand when the when the FED believes that that conditions are overheated and we may be headed into a situation where prices start to rise. One of the reasons that those prices rise is because there's money out there floating around and people are willing to pay for it. But then it reaches a certain pain point and people are no longer willing or able to pay for it. And that's where the FED tries to step in somewhere there in the middle, and they raise interest rates to make it harder for they're trying to draw the money out of the market flows, They're trying to make it harder for those prices to rise in effect, because you can't tell, for instance, suppliers to stop making things. But what you can do is try to decrease demand by making the availability of money well more difficult. It becomes harder to borrow at the bank, for example, and that's supposed to cool down the economy.

Yeah, I mean, I think it's a great question, and I think it's an important question, and I think a lot of people are a little bit afraid of admitting that they don't know when they hear I mean, we constantly hear these headlines on the news. You know, the FED has increased interest rates. But I don't think we put two and two together. I think it's a very fair and indeed a very important fundamental question for folks to understand when the when the FED believes that that conditions are overheated and we may be headed into a situation where prices start to rise. One of the reasons that those prices rise is because there's money out there floating around and people are willing to pay for it. But then it reaches a certain pain point and people are no longer willing or able to pay for it. And that's where the FED tries to step in somewhere there in the middle, and they raise interest rates to make it harder for they're trying to draw the money out of the market flows, They're trying to make it harder for those prices to rise in effect, because you can't tell, for instance, suppliers to stop making things. But what you can do is try to decrease demand by making the availability of money well more difficult. It becomes harder to borrow at the bank, for example, and that's supposed to cool down the economy.

But here's the rub.

But here's the rub.

People get hurt. It's a bit like I think often about, like interest rates like a kind of chemotherapy almost. You know, it's like it's the drug that you need, but it's also toxic and too much. If you go too high with those interest rates, it can really be deadly for the economy. And a lot of folks are really concerned right now. If the Fed continues to raise interest rates, at what point do you reach that danger zone? And a lot of folks think that we might be there at that danger zone right now.

People get hurt. It's a bit like I think often about, like interest rates like a kind of chemotherapy almost. You know, it's like it's the drug that you need, but it's also toxic and too much. If you go too high with those interest rates, it can really be deadly for the economy. And a lot of folks are really concerned right now. If the Fed continues to raise interest rates, at what point do you reach that danger zone? And a lot of folks think that we might be there at that danger zone right now.

Let's go to what you're getting in online, Lisa Rights. I'm having to work more just to make ends meet with the high interest rates. I was getting ahead with paying down debt, but the high interest rates are making it harder. Any suggestions on how to tackle this, Julie.

Let's go to what you're getting in online, Lisa Rights. I'm having to work more just to make ends meet with the high interest rates. I was getting ahead with paying down debt, but the high interest rates are making it harder. Any suggestions on how to tackle this, Julie.

Well, two things. First of all, the inflation's a key factor too. You're being affected by interest rates, means you're probably have a floating rate mortgage, which is absolutely deadly. Really good idea is to try and get that into a fixed rate mortgage.

Well, two things. First of all, the inflation's a key factor too. You're being affected by interest rates, means you're probably have a floating rate mortgage, which is absolutely deadly. Really good idea is to try and get that into a fixed rate mortgage.

That's right now. If you did that, you'd have a very high fixed rate mortgage, right you would.

That's right now. If you did that, you'd have a very high fixed rate mortgage, right you would.

But the floaters go higher, and they can continue to go higher. That's part of the anxiety there.

But the floaters go higher, and they can continue to go higher. That's part of the anxiety there.

Man, I got caught. I got caught in a nineteen percent interest rate thing that was much younger, and I was buying my first home and this was I guess it would have been the early nineties if memory serves, and I got caught in one of those adjustable rate mortgage situations. Never again, can you imagine nineteen percent? It was just incredible, But.

Man, I got caught. I got caught in a nineteen percent interest rate thing that was much younger, and I was buying my first home and this was I guess it would have been the early nineties if memory serves, and I got caught in one of those adjustable rate mortgage situations. Never again, can you imagine nineteen percent? It was just incredible, But.

You probably thought it was a good deal at the time.

You probably thought it was a good deal at the time.

Yeah, I mean it was, to be honest, this is something that I think a lot of folks really need to pay close attention to. If how the mortgage rate markets reacting to what the Fed's are doing, and we may have another adjustment this year, I think that that seems to be a general consensus there may be one more interest rate hike. But would you mind, Jeremy, if I asked Julie real quick. I know we're running out of time, but Julie, what's your what's your on what the FED might do next? Do you believe that they're going to raise interest rates at that in the next meeting?

Yeah, I mean it was, to be honest, this is something that I think a lot of folks really need to pay close attention to. If how the mortgage rate markets reacting to what the Fed's are doing, and we may have another adjustment this year, I think that that seems to be a general consensus there may be one more interest rate hike. But would you mind, Jeremy, if I asked Julie real quick. I know we're running out of time, but Julie, what's your what's your on what the FED might do next? Do you believe that they're going to raise interest rates at that in the next meeting?

The next one I think will be a tweak. But you have to remember that these all the impact is delayed. We still haven't seen the full impact of all the rates that have gone in already. They're going to take a more of a wait and see. They would love to have the world's first soft landing.

The next one I think will be a tweak. But you have to remember that these all the impact is delayed. We still haven't seen the full impact of all the rates that have gone in already. They're going to take a more of a wait and see. They would love to have the world's first soft landing.

Let's go to another call. Michelle is with us from Boston.

Let's go to another call. Michelle is with us from Boston.

Hi.

Hi.

Michelle, welcome to the Middle.

Michelle, welcome to the Middle.

Hi, thanks so much for having me.

Hi, thanks so much for having me.

Well tell us, do you have a question about this or how's inflation and higher interest rates affecting you?

Well tell us, do you have a question about this or how's inflation and higher interest rates affecting you?

Yeah, I was just curious.

Yeah, I was just curious.

I'm in the process actually of buying a house as we speak, and interest rates are about at eight percent. As you were mentioning, I'm just curious what the panelists think of if they're going to dip in twenty twenty four, and what the rates might look like maybe toward the end of twenty four as I'm thinking about hopefully refinancing.

I'm in the process actually of buying a house as we speak, and interest rates are about at eight percent. As you were mentioning, I'm just curious what the panelists think of if they're going to dip in twenty twenty four, and what the rates might look like maybe toward the end of twenty four as I'm thinking about hopefully refinancing.

Yeah, great question, Julie. You think, what about the rates? Are they going to come down?

Yeah, great question, Julie. You think, what about the rates? Are they going to come down?

This is more prayer, even in hope, than what the actuality is. We're not going to know until actually we get there. I think the Fed is going to take their break off the accelerator here, but the question is always going to be at what level do it? Will they be satisfied with inflation? If they decide three percent is not so bad, I think we're out of the woods. If they go hell bent for leather on two percent, it's going to be a real problem. You're going to see interest rates go considerably higher.

This is more prayer, even in hope, than what the actuality is. We're not going to know until actually we get there. I think the Fed is going to take their break off the accelerator here, but the question is always going to be at what level do it? Will they be satisfied with inflation? If they decide three percent is not so bad, I think we're out of the woods. If they go hell bent for leather on two percent, it's going to be a real problem. You're going to see interest rates go considerably higher.

Yeah.

Yeah.

I think one of the things that I've been hearing, certainly in the past couple of days, is that even though the FED says it's not working toward a specific sort of target number, that they may settle for around two point five percent, which a lot of folks think will mean another small increase coming up in I guess what would it be end of October if I'm not mistaken.

I think one of the things that I've been hearing, certainly in the past couple of days, is that even though the FED says it's not working toward a specific sort of target number, that they may settle for around two point five percent, which a lot of folks think will mean another small increase coming up in I guess what would it be end of October if I'm not mistaken.

Let's go to another message from coming in online, Nikki Rights. With mortgage rates higher than they've been in decades, is a home purchase for a first first time home buyer an absolute no go right now, David, say.

Let's go to another message from coming in online, Nikki Rights. With mortgage rates higher than they've been in decades, is a home purchase for a first first time home buyer an absolute no go right now, David, say.

That one more time. I want to I want to follow.

That one more time. I want to I want to follow.

Your first time home buyer.

Your first time home buyer.

Buy her.

Buy her.

Is a home purchase just a no go right now.

Is a home purchase just a no go right now.

Let me put it this way. I think that in situations like this, that old phrase cash is king, I think that it's never been more true. I do believe that if in a situation you know, markets, I mean, what is the what is the old saying markets abhorror? Vacuum like nature does? I guess? And and I think that as you see volatility and when you have people pointing in different directions, the bond markets have just been there's huge you know, there are huge developments in the bond market that I think raised serious questions about whether we're headed toward a soft landing or whether we're going the scenic route to a recession. And as I was hearing Julie talk about how a lot of this is guests work in terms of where the Fed's going to be, you know, next year, I couldn't agree more Based on everything that I'm hearing, I think your best solid bet is to preserve as much cash as you can. But of course, if you're sitting on the sidelines, and you're not making good investments, then that too is a kind of loss of money. And so you know the investments that you do make need to be wise ones. It's just that there's such an outlay right now for housing. Not knowing your particular circumstances, it's a little hard to offer advice, and I think a lot of folks would be very reluctant to say, here, here's what you need to do when it comes to making that first home purchase right now. If it were me, I'd be saving as much as I possibly could, and I'd be looking for longer term investments with higher yields.

Let me put it this way. I think that in situations like this, that old phrase cash is king, I think that it's never been more true. I do believe that if in a situation you know, markets, I mean, what is the what is the old saying markets abhorror? Vacuum like nature does? I guess? And and I think that as you see volatility and when you have people pointing in different directions, the bond markets have just been there's huge you know, there are huge developments in the bond market that I think raised serious questions about whether we're headed toward a soft landing or whether we're going the scenic route to a recession. And as I was hearing Julie talk about how a lot of this is guests work in terms of where the Fed's going to be, you know, next year, I couldn't agree more Based on everything that I'm hearing, I think your best solid bet is to preserve as much cash as you can. But of course, if you're sitting on the sidelines, and you're not making good investments, then that too is a kind of loss of money. And so you know the investments that you do make need to be wise ones. It's just that there's such an outlay right now for housing. Not knowing your particular circumstances, it's a little hard to offer advice, and I think a lot of folks would be very reluctant to say, here, here's what you need to do when it comes to making that first home purchase right now. If it were me, I'd be saving as much as I possibly could, and I'd be looking for longer term investments with higher yields.

Mark writes into us at Listen to the Middle dot com. I was recent involved in a car accident. I'm an uber driver, so having a car directly affects me earning money. My old car will be paid off as part of the settlement, but I can't get a replacement car right now. The higher interest rates and new loan requirements prevent me from getting financing. Julie, this is a This is a really interesting question because I was looking up some of the numbers on this. If you're at the low end in terms of your credit score, you might get a subprime auto loan, and the rate on that is now seventeen point nine percent, which means that the monthly payment on a forty three thousand dollars loan for a new vehicle would be almost one thousand dollars a month. So what about? How about how inflation is hitting the auto market and car loans.

Mark writes into us at Listen to the Middle dot com. I was recent involved in a car accident. I'm an uber driver, so having a car directly affects me earning money. My old car will be paid off as part of the settlement, but I can't get a replacement car right now. The higher interest rates and new loan requirements prevent me from getting financing. Julie, this is a This is a really interesting question because I was looking up some of the numbers on this. If you're at the low end in terms of your credit score, you might get a subprime auto loan, and the rate on that is now seventeen point nine percent, which means that the monthly payment on a forty three thousand dollars loan for a new vehicle would be almost one thousand dollars a month. So what about? How about how inflation is hitting the auto market and car loans.

Probably the biggest thing is that there is not almost nothing available in the used car market, and that's what's impacting a lot of people. Nobody's moving up because here in the Midwest, especially, we're cheap. We'll put a little more bondo on the buggy rather than run out and buy another car. I drive two thousand and five pt Cruiser. What do I know? But people hang onto things for a long period of time. Here we love to have new stuff. But that keeps the used car market absolutely horrible. This young man is in a horrible pinch because there is no alternative for him. This is going to be a case of where he's going to have to change professions because he's not going to be out of the woods in this for some time.

Probably the biggest thing is that there is not almost nothing available in the used car market, and that's what's impacting a lot of people. Nobody's moving up because here in the Midwest, especially, we're cheap. We'll put a little more bondo on the buggy rather than run out and buy another car. I drive two thousand and five pt Cruiser. What do I know? But people hang onto things for a long period of time. Here we love to have new stuff. But that keeps the used car market absolutely horrible. This young man is in a horrible pinch because there is no alternative for him. This is going to be a case of where he's going to have to change professions because he's not going to be out of the woods in this for some time.

Let's go to another call. Ben in Minneapolis is joining us. Ben, go ahead, Welcome to the middle.

Let's go to another call. Ben in Minneapolis is joining us. Ben, go ahead, Welcome to the middle.

Hello, long time listeners.

Hello, long time listeners.

Two weeks well, tell us tell us your comment.

Two weeks well, tell us tell us your comment.

I want to comment on how interest rates are affecting me. And one thing that was surprising to me this week was revealing some of my student loan payments as they're resuming this month. Some of the student loans that were very little rate notes are at a higher interest rate than they were prior to the pandemic. So I guess my comment or question was some of the student loan reform that we're talking about. And you know, even yesterday the bid Administration announced the nine billion dollar student loan you know, cancelations. What one thing that hasn't been talked about is around interest rates, And well, I guess I'm one of the people that thinks if I borrowed it, I should be paying it all back. One thing that hurts is that now you're paying it back at a higher rate than before, where for many years, those variable rate studentmons were at a very low percentage.

I want to comment on how interest rates are affecting me. And one thing that was surprising to me this week was revealing some of my student loan payments as they're resuming this month. Some of the student loans that were very little rate notes are at a higher interest rate than they were prior to the pandemic. So I guess my comment or question was some of the student loan reform that we're talking about. And you know, even yesterday the bid Administration announced the nine billion dollar student loan you know, cancelations. What one thing that hasn't been talked about is around interest rates, And well, I guess I'm one of the people that thinks if I borrowed it, I should be paying it all back. One thing that hurts is that now you're paying it back at a higher rate than before, where for many years, those variable rate studentmons were at a very low percentage.

Right, Ben, let me ask you, just while we have you on that topic, how do you, as somebody who's paying back your student loans, how do you feel about other people getting their loans forgiven.

Right, Ben, let me ask you, just while we have you on that topic, how do you, as somebody who's paying back your student loans, how do you feel about other people getting their loans forgiven.

The ones that are getting forgiven right now, they had been part of special programs that lead towards forgiveness, and so I think that participating in those programs is a really great benefit for a lot of those individuals.

The ones that are getting forgiven right now, they had been part of special programs that lead towards forgiveness, and so I think that participating in those programs is a really great benefit for a lot of those individuals.

Well, Ben, thank you for your call.

Well, Ben, thank you for your call.

Blanket A blanket forgiveness to everyone is obviously a little bit different because there's going to be different circumstances for each borrower, right David.

Blanket A blanket forgiveness to everyone is obviously a little bit different because there's going to be different circumstances for each borrower, right David.

What about Ben's comment and question about student.

What about Ben's comment and question about student.

Loans, Yeah, what I would say is, you know, first of all, if you can get lower rates, it's definitely worth exploring, you know, so anything that you can do to lower the interest rate would be a good idea. But you need to be really careful of making sure that you check the rate on each loan in case you have multiple loans that are you know, all bundled by the same lender and that sort of thing. But something else that you you want to make sure if you possibly can, is to is to try to get something that's that's federally insured. Don't go with the first, you know, loan consolidation offer that that you come across that kind of thing. And one other thing, don't stop at refinancing, you know, paying off the debt once and for all is a is a huge thing. And I'll tell you the advice that they give you when you're you know, thirty, to start saving. It's perhaps these days that should be revamped to twenty or something because the money just doesn't go as far as it once did. So I would say save as much as you possibly can and do everything that you can to try to bring that principle down because that's just going to hang over your head.

Loans, Yeah, what I would say is, you know, first of all, if you can get lower rates, it's definitely worth exploring, you know, so anything that you can do to lower the interest rate would be a good idea. But you need to be really careful of making sure that you check the rate on each loan in case you have multiple loans that are you know, all bundled by the same lender and that sort of thing. But something else that you you want to make sure if you possibly can, is to is to try to get something that's that's federally insured. Don't go with the first, you know, loan consolidation offer that that you come across that kind of thing. And one other thing, don't stop at refinancing, you know, paying off the debt once and for all is a is a huge thing. And I'll tell you the advice that they give you when you're you know, thirty, to start saving. It's perhaps these days that should be revamped to twenty or something because the money just doesn't go as far as it once did. So I would say save as much as you possibly can and do everything that you can to try to bring that principle down because that's just going to hang over your head.

That is David Brown of Business Wars and Texas Standard. We'll be right back in a moment with more of the middle. This is the Middle. I'm Jeremy Hobson. We're talking about high interest rates and inflation. My guests are Julie Neeban, a financial analyst with Smith Moore and Company in Saint Louis, and David Brown of the Business Wars podcast. We are asking that question. Our number is eight four four four Middle. That's eight four four four six four three three five three, or you can reach out to us Listen to the Middle dot com. And I'm going to go to another call. This is Liz in Topeka, Kansas. Liz, Welcome to the Middle.

That is David Brown of Business Wars and Texas Standard. We'll be right back in a moment with more of the middle. This is the Middle. I'm Jeremy Hobson. We're talking about high interest rates and inflation. My guests are Julie Neeban, a financial analyst with Smith Moore and Company in Saint Louis, and David Brown of the Business Wars podcast. We are asking that question. Our number is eight four four four Middle. That's eight four four four six four three three five three, or you can reach out to us Listen to the Middle dot com. And I'm going to go to another call. This is Liz in Topeka, Kansas. Liz, Welcome to the Middle.

Hi, how's it going.

Hi, how's it going.

It's going great. How is inflation feeling to you right now?

It's going great. How is inflation feeling to you right now?

It's hurting. It's hurting a lot. I've got a family of four and I just, you know, as soon as the money comes in, I head to the grocery store and it's all spent. Just it feels like you get six things and you're looking at, you know, one hundred and thirty dollars bill, and it's stuff that you've got to have. I've got to send my kids to school with lunch, and it's so expensive. We you know, you can't take a family of four out to eat anywhere and get a reasonable priced meal, but it's equally as expensive at the grocery store. So it's definitely hurting.

It's hurting. It's hurting a lot. I've got a family of four and I just, you know, as soon as the money comes in, I head to the grocery store and it's all spent. Just it feels like you get six things and you're looking at, you know, one hundred and thirty dollars bill, and it's stuff that you've got to have. I've got to send my kids to school with lunch, and it's so expensive. We you know, you can't take a family of four out to eat anywhere and get a reasonable priced meal, but it's equally as expensive at the grocery store. So it's definitely hurting.

Do you feel like Washington, and I say that broadly, not just the FED, but also the Biden administration and others in power are doing everything they need to be doing to help you deal with those issues, you know, I I hope.

Do you feel like Washington, and I say that broadly, not just the FED, but also the Biden administration and others in power are doing everything they need to be doing to help you deal with those issues, you know, I I hope.

So I don't know what needs to be done. I don't know the best course of action, you know. I just try and be as conscious as I can about my spending. So, you know, I hope, I hope my representatives have my best interest in mine.

So I don't know what needs to be done. I don't know the best course of action, you know. I just try and be as conscious as I can about my spending. So, you know, I hope, I hope my representatives have my best interest in mine.

Well, thanks, for that call Liz David Brown price of groceries. That's where we notice it. All everybody notices it. I mean, I'm a I'm a turkey sandwich person at lunch, and the turkey price is outrageous.

Well, thanks, for that call Liz David Brown price of groceries. That's where we notice it. All everybody notices it. I mean, I'm a I'm a turkey sandwich person at lunch, and the turkey price is outrageous.

Now it's like crazy inn a while since I had some turkey, but I got some uh some fruit loops the other day, and uh, that's more my speed. Jeremy, and and I noticed that the box has because it's it looks like a like a you know, very thin book. Now it's the shrink flation is what we're talking about there. But BOYD, listening to that caller, I really felt that, and I totally understand what she's going through. And and you know, to be honest, something that has chafed at me is I'll, you know, hear a headline or a report on the news about how inflation has fallen to two percent or three percent, and I'm thinking, what, how can that three percent? I'm I'm I'm bleeding here right, And I think a lot of people are feeling that, and and something that I mean, I get why that incremental measurement of how much inflation we've seen over the past month or whatever, that term is is is important and significant in terms of the data, but cumulatively we're looking at once you add up all of that inflation, that's what we're experiencing. So when we hear these headlines about you know, inflation now down, it sounds great, yay, And I think in the long term that's true. It's a it's a good harbinger. But what we are feeling may very well run counter to what we're hearing on the rate. You know, we're feeling the cumulative effects of all of that and what I just heard from the caller there, you know, shake him ahead and thinking it's hard enough to just try to put food on the table, much less save. But if there is any way that you can put aside just a little, it will it will accumulate faster than perhaps you may think.

Now it's like crazy inn a while since I had some turkey, but I got some uh some fruit loops the other day, and uh, that's more my speed. Jeremy, and and I noticed that the box has because it's it looks like a like a you know, very thin book. Now it's the shrink flation is what we're talking about there. But BOYD, listening to that caller, I really felt that, and I totally understand what she's going through. And and you know, to be honest, something that has chafed at me is I'll, you know, hear a headline or a report on the news about how inflation has fallen to two percent or three percent, and I'm thinking, what, how can that three percent? I'm I'm I'm bleeding here right, And I think a lot of people are feeling that, and and something that I mean, I get why that incremental measurement of how much inflation we've seen over the past month or whatever, that term is is is important and significant in terms of the data, but cumulatively we're looking at once you add up all of that inflation, that's what we're experiencing. So when we hear these headlines about you know, inflation now down, it sounds great, yay, And I think in the long term that's true. It's a it's a good harbinger. But what we are feeling may very well run counter to what we're hearing on the rate. You know, we're feeling the cumulative effects of all of that and what I just heard from the caller there, you know, shake him ahead and thinking it's hard enough to just try to put food on the table, much less save. But if there is any way that you can put aside just a little, it will it will accumulate faster than perhaps you may think.

Well, and you know, we talk about what we hear on the news. I think this is one of the points of this show, The Middle, is to bring the real human voice into exactly what's going on. Let's get to another call. Sharon is joining us from Fairview Heights, Illinois. Hi Sharon, Welcome to the Middle.

Well, and you know, we talk about what we hear on the news. I think this is one of the points of this show, The Middle, is to bring the real human voice into exactly what's going on. Let's get to another call. Sharon is joining us from Fairview Heights, Illinois. Hi Sharon, Welcome to the Middle.

Hi Jeremy, I love the program. Thank you very much, Thank you all I can say is giddo to everything that the people have said. So for two things occurred to me yesterday, and I am a seventy six year old retiring one. I went out to get my mail and in the mail was a letter from my Medicare advantage provider informing me that the cope on my prescriptions was going up by ten percent. Ten percent, not the three percent inflation. I have yet to get information from the provider as to what my insurance costs are going to go up to, what my premiums are.

Hi Jeremy, I love the program. Thank you very much, Thank you all I can say is giddo to everything that the people have said. So for two things occurred to me yesterday, and I am a seventy six year old retiring one. I went out to get my mail and in the mail was a letter from my Medicare advantage provider informing me that the cope on my prescriptions was going up by ten percent. Ten percent, not the three percent inflation. I have yet to get information from the provider as to what my insurance costs are going to go up to, what my premiums are.

Going to go up to.

Going to go up to.

Two.

Two.

I went out to Target yesterday and I got their brand targets brands hot dog funds. The last time I bought those, they were one dollar and nineteen cents. I paid one dollar and forty nine cents. It's not just the inflation. These companies are making a fortune. In my mind, in my way of thinking, not only that, but they're passing it on as being inflation. Not when you look at the earnings of the companies, they're doing mighty darn well.

I went out to Target yesterday and I got their brand targets brands hot dog funds. The last time I bought those, they were one dollar and nineteen cents. I paid one dollar and forty nine cents. It's not just the inflation. These companies are making a fortune. In my mind, in my way of thinking, not only that, but they're passing it on as being inflation. Not when you look at the earnings of the companies, they're doing mighty darn well.

What I brea It's yeah, I just want to say, it's that's a great point. Sharon and Julie Nieman, the idea that you know, there's inflation that's caused by real economic forces, and then there's also companies that are taking advantage of the situation, and people talk about, you know, the price of gas all the time in this way that you know it. They just raise the prices because they can, because they're because everybody's used to paying more, Julie.

What I brea It's yeah, I just want to say, it's that's a great point. Sharon and Julie Nieman, the idea that you know, there's inflation that's caused by real economic forces, and then there's also companies that are taking advantage of the situation, and people talk about, you know, the price of gas all the time in this way that you know it. They just raise the prices because they can, because they're because everybody's used to paying more, Julie.

That's exactly right. They raise the prices because they can, and the only time they'll stop is when demand falls off. And that's the problem. We're not there yet. People are still buying and still buying. It's erroneous to really report inflation as being down, down, down, because they always leave out the two most volatile sectors, food and energy. Well what do we consume food and energy? So it's it's really misleading as to what it is. But again, this is a situation where, because this is America, this is basically freedom to mark whatever price you want until people stop buying. So yes, as a corporate greed, every single food processing company is making money like crazy and over fist. And by the way, a lot of that is not going to the farmers. They're in the same pinch we're in. They have very high costs, they're not getting the benefit that the food processing companies are. So if you want to point a finger, it's the processors.

That's exactly right. They raise the prices because they can, and the only time they'll stop is when demand falls off. And that's the problem. We're not there yet. People are still buying and still buying. It's erroneous to really report inflation as being down, down, down, because they always leave out the two most volatile sectors, food and energy. Well what do we consume food and energy? So it's it's really misleading as to what it is. But again, this is a situation where, because this is America, this is basically freedom to mark whatever price you want until people stop buying. So yes, as a corporate greed, every single food processing company is making money like crazy and over fist. And by the way, a lot of that is not going to the farmers. They're in the same pinch we're in. They have very high costs, they're not getting the benefit that the food processing companies are. So if you want to point a finger, it's the processors.

Let's have to say, yeah, go ahead.

Let's have to say, yeah, go ahead.

Give me for interrupting, but I have to add in, since we've brought up cars before, I think it's worth noting something and maybe others, maybe some of the listeners have some thoughts about this, but I know that we're seeing something very different and interesting happening in the new car marketplace that's having a profound effect on used cars right now. Well, during the pandemic, there was a lot of money out there floating around because of pandemic checks and people using their discretionary spending, and in fact, there was a lot of saving going on at the same time because there was more money out there in the system.

Give me for interrupting, but I have to add in, since we've brought up cars before, I think it's worth noting something and maybe others, maybe some of the listeners have some thoughts about this, but I know that we're seeing something very different and interesting happening in the new car marketplace that's having a profound effect on used cars right now. Well, during the pandemic, there was a lot of money out there floating around because of pandemic checks and people using their discretionary spending, and in fact, there was a lot of saving going on at the same time because there was more money out there in the system.

Especially with those checks.

Especially with those checks.

It's my understanding that, based on best estimates, all of that savings has been almost completely spent down and that goes directly to inflation. But a big part transportation. Big part of this factor. What Detroit seems to be doing at this juncture is they seem to have come to the decision based on the supply chain issues that we saw during the pandemic. It appears that what they're doing is they're moving to a new model instead of selling large volumes that they're talking about, reducing the number of units sold and increasing the value or the cost the price, I should say, of different vehicles. And if you go out to a new car lot, you'll see cars that are SpecEd out to the nines, absolutely maxed, and prices matching it. And you'll also even see market adjustments that's supposed to reflect the increased pressure of inflation in a particular market. Who's going to be able to afford that eight ninety thousand dollars pickup truck, well healed people, people who are doing well in this situation, who can't come close. Most folks can't come close. And so that's driving up of the marketplace in used vehicles. And the used cars are selling out, and now we're sort of down to the to the ones that are just sort of limping along. It's not quite that bad, but a lot of off Broadway. Ex.

It's my understanding that, based on best estimates, all of that savings has been almost completely spent down and that goes directly to inflation. But a big part transportation. Big part of this factor. What Detroit seems to be doing at this juncture is they seem to have come to the decision based on the supply chain issues that we saw during the pandemic. It appears that what they're doing is they're moving to a new model instead of selling large volumes that they're talking about, reducing the number of units sold and increasing the value or the cost the price, I should say, of different vehicles. And if you go out to a new car lot, you'll see cars that are SpecEd out to the nines, absolutely maxed, and prices matching it. And you'll also even see market adjustments that's supposed to reflect the increased pressure of inflation in a particular market. Who's going to be able to afford that eight ninety thousand dollars pickup truck, well healed people, people who are doing well in this situation, who can't come close. Most folks can't come close. And so that's driving up of the marketplace in used vehicles. And the used cars are selling out, and now we're sort of down to the to the ones that are just sort of limping along. It's not quite that bad, but a lot of off Broadway. Ex.

Okay, let's go. Let's go to another called Patricia in Atlanta is with us. Hi, Patricia, welcome to the middle.

Okay, let's go. Let's go to another called Patricia in Atlanta is with us. Hi, Patricia, welcome to the middle.

Hi, thank you for taking my call. I was just concerned about my full one k that is taken up beating, and so I wanted to get maybe some advice. I left the previous employer, but that's where my full one K is. But I noticed that it keeps going down and down. Can you speak to this please?

Hi, thank you for taking my call. I was just concerned about my full one k that is taken up beating, and so I wanted to get maybe some advice. I left the previous employer, but that's where my full one K is. But I noticed that it keeps going down and down. Can you speak to this please?

Four oh one K is going down and down?

Four oh one K is going down and down?

Well, that was September. September was one of the worst months we've had. It was down about five percent. If you looked in the year twenty twenty two, it was a catastrophe. The average balanced portfolio is down seventeen eighteen percent. So we recovered from that. We started moving ahead this year, but September we got clocked. We're kind of moving our way back a little bit now. But that's part and parcel of the market. You go through corrections, excesses are burnt off. If you have a well diversified portfolio, one thing you do to do is review what your what kinds of stocks and bonds and everything your portfolio is in. Maybe you need to go out and roll that four oh one K over into a self directed IRA from you'll have the world from which to choose rather than just what that employer is willing to pay for. So take a look at that have somebody, a professional take a look at what your four oh one k is doing. Maybe be doing doing a great job. It's just the cycle of the market. But at least you'll know if you can make some good improvements out of if it's being done efficiently.

Well, that was September. September was one of the worst months we've had. It was down about five percent. If you looked in the year twenty twenty two, it was a catastrophe. The average balanced portfolio is down seventeen eighteen percent. So we recovered from that. We started moving ahead this year, but September we got clocked. We're kind of moving our way back a little bit now. But that's part and parcel of the market. You go through corrections, excesses are burnt off. If you have a well diversified portfolio, one thing you do to do is review what your what kinds of stocks and bonds and everything your portfolio is in. Maybe you need to go out and roll that four oh one K over into a self directed IRA from you'll have the world from which to choose rather than just what that employer is willing to pay for. So take a look at that have somebody, a professional take a look at what your four oh one k is doing. Maybe be doing doing a great job. It's just the cycle of the market. But at least you'll know if you can make some good improvements out of if it's being done efficiently.

Let's go to Gary in Las Vegas, Nevada. Gary, Welcome to you, bellow.