Transcript:

All righty. Welcome, everybody. Happy Friday to everybody out there. We’re going to go over a few things today. I’m going to be delving into the Federal Reserve. And she had this question asked by one of our listeners. That’s a good title of a of a bit that I should do. We’ll central banks destroy us all. We’re going to talk about the latest from the Fed and inflation. Again, we have to continue discussing what’s taking place in the UK. The mainstream media has got it all wrong. The conventional wisdom that’s being put out there is complete poison. Snap, snap. One big, fat, juicy. And I should probably put a little counter behind us here and the C I told you so moment calculator. I don’t even know what number we’re up to. But anyway, snap numbers coming in and we told you from the get go that this company was an example of the greater fools. Philosophy theory that we’ve tried to explain to people over the program, we’re going to do something a little bit different here. It’s going to be kind of like a quick hit Friday, a little stories here and there that I found very, very interesting. We’ll go through that on the end. But let’s let me first remind everybody as well. Take advantage of everything we have to offer at our website at WatchdogonWallStreet.com, we have obviously in years like this, these are these are years where we’re working our buttocks is off that Markowski Investments take advantage our personal CFO program take a look at how we’ve been handling all of this volatility.

Take a look at the performance that we’ve had over the years, not to mention a myriad of other things Account repair kits, newsletter, of course, podcast radio show, all sorts of great stuff. Get to our website at watchdog and Wall Street dot com. So there’s this guy writes for the Wall Street Journal and I’ve talked about him before here on the show. His name is Nick Timiraos and Nick is kind of like the the go to guy. For the Fed when it comes to them, trying to slowly but surely get information out. At least that’s what it seems. Anyway, he had a piece came out, wasn’t part of the Wall Street Journal’s print edition today. It was on the website later on in the morning talking about how the Fed is set to raise rates by 75 basis points in November. But. There’s a debate that’s taking place within the Fed, debate that’s taking place, saying whether or not we should start slowing down come December. See what’s going on. We stock market futures were way off. Then they came back. Market opened up big. You know, it’s bouncing around now again. More volatility. We’ll delve into this. But there’s another headline I want to give you. This was fascinating to me again, pretty well, Christine. Listen to this podcast, My thoughts when it comes to central banks and these fools that the Federal Reserve, these 400 PhD economists that get it wrong all the time.

But you know what? I learned something today. I didn’t know this. One of my favorites, Judy Shelton. Judy Shelton, who they didn’t allow on the Federal Reserve Board because she’s smarter than they are, made the point that over 90%, 190% of the economists at the Fed are donkeys. Make sense again. I didn’t know that. I didn’t know that 90% are registered donkeys. Anyway, you got this. Philadelphia Federal Reserve President Patrick Harper. He’s given a speech yesterday. Now, follow this one. He’s saying that higher interest rates. Have done little to keep inflation in check. So more increases will be needed. I’m not making this PhD. He’s saying what we’ve been doing isn’t working. Let’s do more of it. Again. Last time I checked, that is the definition of stupidity slashed insanity, is it not? Yeah. Yeah. We keep raising rates at a record pace here. It’s not working. So you know what? We’re going to do more. More cowbell. Great Senate, I’ll live. Christopher Walken. Remember that one Blue Oyster cult? Will Ferrell, anyway? Yeah. Yeah. He’s calling on more cowbell. Not going to do a damn thing unless you’re planning on really breaking things and taken the economy down. Is that is that what you want? Is that what you really want? A couple of stories looking at when it comes to the housing market right now.

And it is it’s coming down. It’s it’s collapsing. I keep thinking of a great, great book by Michael Lewis, and they did a really good job with the film Big Short and the scene where they go down to Florida to investigate. To investigate. They actually couldn’t they couldn’t believe what was going on. They had to see for their own eyes what was taking place in the Florida real estate market. All they had to do. All I do is actually listen to my radio show. I didn’t have a podcast at the time. Listen to my radio show back at that point in time. And I was, you know, everything’s going to collapse down here in Florida. This is a disaster, you’ll see. But there’s that scene and they’re driving around with the real estate agent and they’re probing her for information. And she keeps saying, Oh, we’re just in a little gully right now. We’re just in a little gully. Sure. Sure you are. Anyway, yeah, a lot of these markets that are still holding up, they are going to crack. It’s not a matter of if. It’s a matter of when. And I’d like to finish up with this story today before I get into the point I’d like to make. Cnn. Cnn continues to be stuck on stupid. Do you remember that? Stuck. I loved that line there was that I can’t remember the name of. I don’t know.

He was a general Admiral. I know. Colonel. Colonel. Something military high ranking that came in to the mess that was Hurricane Katrina relief with FEMA. Remember George W Bush? Brownie, you’re doing a hell of a job, Brownie. What a cluster. You know what? This guy comes in, military comes in and cleans the whole thing up. And he was going off on some media types and whatnot is like, what are you stuck on, stupid? Well, yeah. Cnn is can still stuck on stupid. Why Inflation can actually be good for everyday Americans and bad for rich people. I shit you not. This is a story on CNN. And how inflation can be a good thing for working class America. You mean to tell me that it’s good for working class Americans? I got to pay more for everyday items, The bare necessities. How is that good when that makes up a greater portion? A greater portion of their discretionary income, for crying out loud. I. Yeah that’s an actual see and and piece. Anyway, back to the folly of the Fed. They can’t fix it. They can’t fix the problem that they helped. Create. They can’t. There are a lot of people like to completely blame the Fed. They’re just enablers. That’s all. That’s enablers. You want to think of it this way. Let’s try to put it this way. You know, you have. So you have and this is an all too often occurrence here in the United States.

Family members, somebody you know, that’s fallen by drug addiction and comes to their demise. Again, I don’t want to be morbid on a Friday. It’s trying to make a comparison here. Is it the drug dealer’s fault? Is it the drug dealer’s fault or is it. It’s what the individual. Personal responsibility. The Fed is an enabler of the US government who enables the US government. We do. We do. I want. I want. I want. I want. I want. Gimme, gimme, gimme, gimme, gimme. And it’s just we don’t have we don’t have enough people of high character. Of people that, you know, it’s just it’s a collection of people who have just had an ethical bypass at birth. All they care about is their career. I remember this. You know, when the show start had to be like 2000, nine or ten, I can’t remember. Maybe it was a little bit later than that. Kevin Spacey. And he’s gone now, but House of Cards. The show House of Cards and showing that the politics what goes on in Washington, D.C. And I tried to explain people this is real. It was real. Again, you know, I would go to DC back when I used to do Radio Row at Inaugurations and all of these things, and it’s always felt dirty there. You got to take an extra shower a day. These are people that just care about themselves. We need people that want to go and serve and then go back home.

That’s what our founders wanted. Somebody that’s going to actually say no. That was the famous moniker that they gave the late great Senator, Tom Coburn. They used to call him Dr. No. You can’t have everything. You can’t. It’s not good for us. It’s fine. That was part of the sermon this past week at church. They had all the second graders there at church, and they’re starting their process to first communion. And Priest was talking to the kids and, you know, your parents giving you everything you want. And one kid raised his hand. His mother’s like, No, I don’t. Priest starts laughing. He’s like, you know, you may want to have £5 of candy every single day, but it’s not good for you. We don’t have any checks and balances in regards anything. That was kind of the brilliance of our Constitution as well, is the checks and balances that were put in there. And we’re getting some of it now from the Supreme Court in a few cases here and there, which I like to see. But let’s be honest, the legislative branch and the executive branch were hand in hand to further their needs and what we like to call the watchdog on Wall Street, axis of evil, big business politicians and the mainstream media. We’ve got to learn from these central bankers and what they’ve done and the money printing and the fact that we are this far in debt and what it does for and how it hinders upward mobility here in this country, how it makes things more difficult.

And we need to get back, quite frankly, to the overall beauty of the free market, because it is a beautiful thing. It’s like it’s a nature. Nature is a beautiful thing. It really is. It can be a dangerous thing. It could be a dangerous thing, but it kind of is what it is. You can’t fight it. You just have to let it work. And I’ve talked about the economist Joseph Schumpeter here on the program and creative destruction. And now the phoenix will rise from the ashes. Companies are going to fail. They’re going to go by the wayside. And that’s what we need to come back to the free market pricing of money. We don’t have that because of the central bankers. And the central bankers enable our central our central government to want to call it and who enables them? We do. And we really do need to cut the size of government. We need to cut spending across the board. We need to balance our budget. Again, kind of a take away. It’s just going to sound gloom and doom as far as your portfolio is concerned. You need to continue to focus on the fundamentals and I don’t want to come across here like the sky is going to fall, the world is going to end. There’s the possibilities and the greatness.

I wouldn’t be here. I quit. If I was a case, I quit. I’d be. I’d be on an island in Greece right now. Okay. But I don’t believe that. Again, fundamentals in your portfolio stick what stick with what has always worked. And in times like this, with the type of volatility that we’re seeing, guess what? It’s going to involve patience and along with patience. He’d have a little bit of courage. You need to stand in the face of the chattering classes. Okay. I want to move on to the U.K. I know we’ve been talking a lot about this, but it’s very important stuff. Everything you want to know about the U.K. crisis. But we’re afraid to ask. Okay. We’ve got we’ve got a myriad of different stories here. I mean, I’m going to go through what the narrative is. The narrative is this is what the media is putting out there. Like this. Joseph Sternberg actually lays this out pretty well. I want to give credit to him In his piece today in the Journal, the conventional view of mistrust is rise. An unfortunate fall holds that markets took fright after then Chancellor Kwasi Kwarteng. On September 23rd announced a major package of tax cuts and energy subsidies. This triggered a rout in the market for the pound and government bonds or gilts, as investors worried about the government’s capacity to pay its bills and properly hedge pension funds found themselves forced to sell gilts and ever larger quantities.

The Bank of England stabilized the market with emergency gilt purchases, buying time for trusts and new chancellor Jeremy Hunt, who’s a scary son of a bitch. You gotta look into this Jeremy Hunt character. To abandon the tax cut plans that had spooked investors. Once she had done so. Order was restored. Her departure will draw a line under this debacle. Oh, really? Just see gilts today. Take a look at the pound today. Every. Every sentence in what was what I just said when I went over in this entire fable is what is called a non sequitur. It just doesn’t add up by any stretch of the imagination. It doesn’t even. I mean, you take a look at the size of the tax cuts that they put in there, and they pale in comparison to all of the handouts and giveaways that they were putting forward. Put this in perspective. You’re going back to tax rates from just a couple of years ago. And that’s going to destroy your budget. You have all of these people that, again, make promises. They’re going to call themselves the Conservative Party in the UK. They’re not conservative. Did you not think that you don’t think that Liz Truss told everyone what she was planning on doing? The only thing that she didn’t tell the rest of the Conservative Party was to lower the the top rate.

By five percentage points. That’s it. They knew everything else. It amazing how they all, like, just ran. They all, you know. Oh, no, no, no, no, no, Ken. They were worried about their positions. That’s all. Commentators back from Sternberg’s piece. Commentators have coalesced around a theory that markets scorn the tax cut plan because investors feared it would be inflationary. Yet they’ve all seemingly accepted that the proper solution is for the government to backtrack on the central banks anti-inflationary policies, as when the Bank of England hints it might further delay its already languid quantitative tightening and success for the central bank and administration alike is measured via falling gilt rates. The market speed for trust nomics was that, quite frankly, it might have worked. The episode exposes the astounding fragility of the global financial system. After nearly 15 years of extraordinarily low-interest rates and quantitative easing. British pension funds cannot survive higher rates. They can’t. Is this problem coming soon to a theater near you again? We talked about treasury strips here and how our pension funds are being leveraged a little bit differently. Again, all of this financial engineering and all of these derivatives and all this stuff that is thought up by Wall Street. Again, it’s it’s putting a Band-Aid on a wound when you have funding problems for pensions when you have the concept, just the demographic issues of people living longer. When politicians make promises when it comes to certain pensions that are out there.

Again, the U.K. doesn’t want to deal with reality. And I explained to you what had taken place in Greece after 2010. Everybody’s pension just caught. They no choice. They had no choice. And again, we’ve talked about it here on the program. And I listen. Believe it or not, I could. It’s not too far off. I could start collecting Social Security. Might I get it? I don’t know. I don’t know. I mean, I put it off as long as I possibly can, But might it. Might we see cuts? Yeah. We might unless we get our act together here. In essence. In essence. And in a warning to conservatives here, so-called conservatives here, you want to call it the Republican Party. I don’t even know. Republican Party to me is a joke, really. It’s a sad joke. You make promises and you don’t follow through. That’s, again, what the Conservative Party in the UK is. They’ve had power for ten years. What did they do? They’ve had power for ten years. What did they do? They wrecked the energy policy. They had Brexit. Many of them didn’t even want Brexit in the first place. They failed to move forward on the things that were necessary. They continued in their handouts and giveaways. Tons of stimulus due to COVID. And again, I go back to the issues that we’re seeing now because again, stories that are bantering about talking about all the waste and fraud and COVID relief and whatnot.

You know, most of the Republican Party was going along with all of this nonsense and extended unemployment. And we warned about this and talked about this here on the program. Listen, people, I’m just telling you, I said at this point in time, we got to start learning from other countries follies. Why? Why make the same mistake? Anyway, let’s talk a little bit about snap crack. That’s right. We’ll call it. We’ll call it snap crap, shall we snap of when this company went public? I mean, the initial day the stock went through the roof and we explained that. Yeah, I’m being honest. I can’t. I can’t get my hands on hot IPOs. I’m on a blacklist. I’m on a Wall Street blacklist. Why? Why am I on a Wall Street blacklist? Because I’m just going to sell it. I’m going to sell it. Listen, if you’re going to give me a winning lotto ticket for the day. Guess what? I’m going to get my clients in and I’m going to get them the hell out. I want to get him in and I’m going to get them the hell out. It’s the concept out there that the executives, the CEO of this company, the benchmark price, is a stock to go public at a certain price and you’re willing to pay. A 20, 30, 40, 50% premium in back during the dot com age to be over 100% premium that very day, which is the equivalent of some guy buying a let’s put it this way, buying a pizza parlor in your town.

Guys got a pizza for 30 years, sell pizza parlor for $100,000, and you say, No, no, no, no, no. You come to the guy said, No, I’m going to buy it from you for 150,000 that same day, huh? Don’t you think the owner of the company had a good idea of what the value of his business was worth and priced it accordingly? But you’re willing to pay that much more. That there’s no logic or reason behind that type of thinking. But again, if I got in at the IPO price and sell it that same day, that’s what I would do. But again, they know we’re going to do that. They know we’re going to do that. So don’t give us those IPO shares anymore. And if you do, you’re working at a firm that does get them to what do they tell you? Oh, you need to hold on, and maybe you should buy some in the aftermarket because that’s what their schlock brokers. Stockbrokers slash advisers are told to do. Because the investment firm Wall Street makes more money laddering the stock up and their job is to get through the quiet period and get all of the inside investors out, making them fat and happy. We told you this was what was going to happen.

Snap. From the get-go. What a real company. It’s cute. It’s a trick. It’s a way for kids to communicate with one another and their parents not find out. It’s a way for kids to get around their parents finding stuff out. Anyway, their growth is going into the toilet. They got the CEO of that company. They got this part of the problem, too. You have a lot of these companies that went public, the venture capitalists, the executives have these special shares that give them special voting rights. So you can’t throw them out. So these guys made millions upon millions upon millions upon millions of dollars taking this company public their loaded. They’re loaded and basically, they hang on at the company as the stock continues to tank. I think SNAP is more than 50% below its IPO price. Like it’s some sort of toy. Or hobby and you can’t get rid of them. But again, this is the game of greater fools that we try to warn you about. Don’t be the greater fool. It’s one big sales ad machine. After the dot.com collapse, there’s a lot of great companies came. They all talk about the collapse of Dot, so there’s a lot of shit. But there was also a lot of great companies as well. Think about it, companies that are here today. You know, the power of Amazon, for crying out loud that came out of that.

A company that sold books. Look at it now. Right. Hear that part of the time apple was in the toilet. I mean, companies that really turned it around a lot was built and created over that period of time. And guess what? If you were smart, you were smart, you were able to get in at a very good price. Now, again, venture capital firms, they’re not concerned about a company that’s going to be around for the long haul. They’re concerned about getting out. I want my money out. Let’s sell it to the greater fools, the masses, by taking the company public. And we’re out and we can wash our hands of the entire thing. That’s the business people. That’s what Wall Street, unfortunately, has become. And it’s ugly. And again. We told you this was going to happen. This again, this is going back to George W Bush and all the crap that they put forward back then, Sarbanes Oxley after the dot coms and all the crap, the nonsense. Oh, we’re putting a Chinese wall up between this. I’m like, Wall Street. We’ll find a way to get paid. They’ll find a way around this. And they have. And again, it takes away the opportunity for average everyday investors to get in at the bottom. You’re not getting the IPO of a company is oftentimes more often than not. More often than not. Not the bottom, but the top. You’re top ticking on an IPO is what you’re doing.

Anyway, anyway. And what? What? Take away. Learn from this. You just got to understand people when I say it weekly on my weekend radio show that we also podcast watch talk on Wall Street dot com anyway. Yeah. Everything in life that has some meaningful value in worth involves work time and effort. All right. Rapid Fire Friday cuts were called Rapid Fire Friday. I’m going to go through a series of stories here that I find interesting and what we can take away from them. All right. Bring on the Bob’s I love the Bob’s the movie, Office Space. I am watching them while I got to go back and watch it. Yeah, the Bobs, the guys coming in, interviewing people, and good luck with your layoffs. Bobs. But anyway, yeah, Musk is bringing on the Bob’s Planning to Fire 70. They’re saying 75% of Twitter staff. Sorry. Good. We need more tech companies. We need more executives to start firing all of these little Marxists making six figures a year. Amazing that all these left wing Marxists making six figures plus a year. You’re gone. You’re gone. Lean, mean fighting machine. That’s what America has to get back to. Again, I go back. I always loved that scene. Tell Da paper, Wall Street and Gecko’s yelling about all the vice presidents and the paperwork and the money that they’re making and all their hunting and fishing trips. It’s not even vice presidents anymore. It’s the average worker at these tech companies.

Get rid of them. Good. It’s a long story today. About Wall Street in The Wall Street Journal talks about Russia and how Putin’s attempt to try to resurrect the Soviet Union is actually breaking the country apart. Again, spooky stuff. Spooky stuff. And again, it gets into its really interesting, I guess, into all of the various different ethnic groups that comprise Russia. And obviously, it was it was greater when it was the Soviet Union. But how they’re all apart and how they’re all pushing back now. And you know, what does that mean? I don’t know. I don’t know. But again, here is a country it’s frightening to the sense that this is a country that has nukes. He’s pushing people away. He’s sending you know, he’s sending his various different military personnel to all of these ethnically diverse areas and saying, send us your kids. You need to give us our kids. Give us your kids because they got to go fight in the Ukraine. And Zelensky is appealing to these various different ethnic groups saying, why would you do that? It doesn’t make any sense. So, again, it’s going to be fascinating to to watch. There has been some chatter here there that Russia wants to just go back to the way it was pre February. I don’t know if that’s true or not. I’ve heard it and read about it in several different publications. But Ukraine at this point in time is like, no, now we want Crimea back as well.

I do think that there is a negotiation to be had and the sooner the sooner the better anyway. This I read and again, I live in the state of New York and there’s many areas got their liberal tendencies and this wouldn’t happen. This wouldn’t happen at our high school. It wouldn’t happen in our school district. I’m not making this up. This is in San Diego. San Diego, the INS, Encinitas, Union School District. The school is promoting a promotion. It’s a Halloween party, a boo bash for elementary. Schoolchildren, elementary schoolchildren. Now, again, go back in time. Go back in time to when you were in elementary school? Sure. You have memories of Halloween and trick or treating and some of the Halloween stuff that you did back in elementary school. They probably don’t allow it now. Bobbing for apples and all this fun stuff. Upstate New York, we’re going to Indian ladder farms and we’re getting apple cider. And don’t I just it was nice. It was wonderful to be a kid. I always had my homemade costume. A mother would help us out. But anyway, neither here nor there. This is for elementary school, the queerest free Halloween party for youth and families. Elementary school. And it’s sponsored. Yes, this Queer Halloween party is sponsored by Sex Change Specialists Alliance Surgical Associates, a gay exotic dance nightclub, Rich’s San Diego Gay Neighborhood, and Fabulous Hillcrest. San Diego Pride North County LGBTQ Resource Center. Trans family support services. I can go on and on, and on. You have a gay bar, a strip club, and a section there sponsoring an event for elementary school children.

Honestly, in our school district here, I’m not even allowed to sponsor anything. No, we’re not allowed. We can give money to do. But you can’t sponsor any events. So of course we can sponsor anything at the public schools if they try to pull this in our neighborhood. I’m just being honest here. I’m. People start going missing. I’m just telling you what is wrong. I know some parents are up in arms here. How do you allow it to get to this point in time? And why wouldn’t you revolt and yank all your kids out of school? I mean, I’m sorry. At some point in time, you got to move where the same people are. It’s like the old Sam Kinison bit from back in the 1980s. I’ve talked about this before on the pro. We’re talking about all the aid to Africa. And I would send them food. Don’t send them money, send them your halls. Tell them to move where the food is At some point in time you and now you can with the way work is in this country, move to where sane people are. Just saying. Anyway, have a wonderful, wonderful weekend, everybody. Watchdog on Wall Street. Our site watchdog on Wall Street. We’ll see you.