Economy – Really Right

Young People and Socialism… Explained

I feel compelled to explain this to the older generation. Young people, millennials, generation Z, etc. are not socialists, communists, reds, or whackos… for the most part. I am going to explain why they have beliefs that you in the older generation call socialism or communism.

The biggest misunderstanding from generation to generation is life is always changing and evolving. I liken it to the game of football. For example, it used to be the forward pass didn’t/barely existed. Teams ran the ball exclusively; games scores were 12-9. Fast forward to today, the forward pass is a major part of the game and teams are routinely scoring 30 points plus per game! My point is just because something worked back in the day doesn’t mean it can’t evolve. A better example is the internet; I remember old AOL (America Online) when you had to essentially shut the phone line down to your house to surf the internet. Dial-up modem with blistering 56K connections. Oh, the memories. Now look, internet is widely available wirelessly and very inexpensive, relatively speaking.

I will try to explain the issues one by one, but I won’t bore you with an exhaustive list. Try to be open-minded here.

Tax the rich: This one is actually easy if you think about it. Most rich people actually pay little in taxes because they take their earnings in stock options, dividends, and capital gains. Those are taxed at a lower amount than regular income, substantially less. I am not calling them tax cheats, they are well within their rights to do this, but it’s viewed as an unfair loophole. This is where the “Warren Buffet’s secretary pays a higher tax rate than he does” argument originated from. Also, many wealthy own business(s) and create layers of LLCs to shield corporate tax as well. Again, I’m not calling anyone a tax cheat, just pointing this out. Lastly, Elon Musk passing a trillion dollars in net worth (in the form of stock options by the way) is another sticking point, who needs that kind of money?

Medicare for all: This one again is made possible by the older generations. Young people in general feel screwed because their corporations don’t offer healthcare either, or it’s so watered down that it’s basically a worthless plan. Try buying it on the healthcare exchange, options are very limited and expect to pay circa $500 a month for a trash plan. Many have opted out of healthcare period; that’s a very dangerous option.

Editor’s Note: Case in point, I have a health insurance plan (just for me) costing $840 per month. I have used it once so far this year. The doctor’s bill was $460. The insurance co-pay was $80 at the time of the appointment. The medical insurance paid $79 and then sent me a letter saying I need to pay the balance. It’s July. I have paid seven medical insurance payments of $840 ($5,880) and they paid $79. You bet I’m gonna cancel it early. Welcome to Obamacare in 2026.

Free groceries/services: Again, you scream socialism but with things so unaffordable right now the idea is striking a chord with younger people. Credit card accounts 90-days plus delinquent are at an all-time high. This means people are charging essentials and are hoping to pay them off with a Christmas bonus ala National Lampoon’s Christmas Vacation. City bus should be free. Why do we have toll lanes/booths? It seems unfair to us who don’t have money and are starting out.

Student loan forgiveness: yeah, I know back in the day you paid your loan in full, it was a fraction of today’s tuition. The reality is that college turned into a 5-year plus experience due to classes not being offered in certain semesters. The administration building and administrator staffs have doubled in size and tuition did the same. Six-figure student loan debt is a real thing, and it’s a millstone around people’s necks.

Pay a living wage: This one is actually one I agree with the younger generation on. Corporations are all about profit and numbers, so as a result, they suppress wages. The gym I work out at (it’s a chain by the way) pays the MANAGER $22 an hour! Wages for other workers are $16.50. This gym shares a parking lot with a Burger King where wages by law start at $20 an hour. You are telling me a manager should be paid only $2 an hour more than a fast-food worker? Come on. Quit worrying about making an extra buck on earnings and pay your people.

There is no loyalty to corporations anymore: Yeah, I know you worked for one company your entire life. You worked your way up to management and got a 40-year plus plaque when you retired. Times are way different now. Let me answer this with a question. Why should I be loyal to you when you will lay-off workers if the quarterly numbers are no good, shut the factory/store down at any moment, suppress wages, and take benefits away at any time? This cuts both ways.

Why aren’t young people having kids: Easy one, look at the cost of daycare alone. Then add other expenses related to child-raising, its flat-out unaffordable.

(Editor’s Note: 25 years ago, my wife was paying more than $1,200 per month for afterschool care for two children. That was for less than three hours a day. I’m sure that number now is at least double.)

Why does my daughter have an Only Fans: Well, it’s about wages/affordability. I do not condone the behavior on that site, but bottom line is, if you want to maintain a certain lifestyle, you have to look for extra money. Again, back to the living wage argument.

Rent control/freeze: Again, it’s about affordability. You raise my rent 10% a year, my wages are barely moving. You wonder why people are embracing van life and living in their cars? You priced them out of the rental market.

In closing, this is not an exhaustive list of issues and understand I agree with very few of them. We are in a vicious cycle, raising wages is great in theory yet it raises the prices of goods, and rent. It also gave birth to AI, and it is going to take probably 20% of the jobs in this country. You get a degree then you find yourself working at a job paying $25 an hour, it’s also a job you feel is beneath your qualifications. Your corporation doesn’t make its earnings numbers for the quarter, so layoffs and store closures are coming. Work harder and faster, they say; sure, and at year’s end you get no raise or bonus because, well, we have to meet the shareholder’s expectations.

Folks, the young people are not dumb, they know socialism doesn’t work, they just see Zuckerberg, Musk, and Bezos with multiple houses, yachts, private jets, and ability to do anything they want while we struggle to get by as a fairness issue. Just try to see it through a different lens. When you are going through life and you are having a hard time affording things then you look for an answer. You have a degree, you are living with a roommate, you are working a job that barely pays the bills. You look to the socialist types, and you think it’s a good idea. Socialists don’t have the solution but at least they acknowledge the problem exists.

The biggest point of this blog is I know boomer types, they are great at yelling for me to get off their lawn but the old ways of go to college, get a degree, work for one company your entire life, get married, buy a house, have a couple kids, is a faded memory that is unattainable because that world exists only in their faded memories. It’s not a thing anymore. It’s hasn’t been for a long time now.

The Chief

What’s in your wallet? Knights Of Columbus Edition

Fraternal organizations, church groups, volunteer groups, Kiwanis, Rotarians, Lions, Elks, even the Masons; when you think of them, you think service. Charitable donations, raising money, involvement in the community. One thing I doubt you think about? A branded credit card from said organizations.

In a first, the laymen’s service organization of the Roman Catholic Church, the Knights of Columbus, is now proud to offer their very own branded credit card.

Samuel L Jackson asking, “What’s in your wallet?”

Nope, this card is not just for members who travel on church business that functions as a company credit card, but one available to the public. Remember that availability to all is a requirement, as red-lining and discrimination is illegal in banking. So yes, atheists, wiccans, freemasons, and heretical protestants can use and apply for our credit card too.

The Knights is a fraternal organization. A friend had sent me this email that I thought was either; the Onion (a satirical online newspaper), the Babylon Bee (also majoring in satire), or some AI generated attempt at trolling. Nope, it’s true! It’s on the Knights website.

I am actually pretty aghast. If it weren’t for other things going on in my life, I would likely leave the organization. Seriously. When you stray from your core values that much? It’s a big problem for me.

The big issue I have is what a credit card really is. Sure, you think it’s a way to front some money, and as long as you pay it back each month, you’re fine. In theory you are correct but that’s mostly the exception; I’m talking about the rule. Quite a large number of people do not pay off said credit cards each month. Many are in debt over their head. Just check out Dave Ramsey, Clark Howard, or Suze Orman’s shows to name a few. Thousands of people are enslaved to debt, sometimes five figures!

The Knights’ credit card carries an interest rate of 36% while paying 1% in rewards. I believe the Bible makes several statements on usury (charging excessive rates/fees). This goes completely against the Church’s teaching.

Aren’t the Knights a church ministry? Correct.

At the same time we are touting the benefits of debt for our members, we have been offering prayers for the canonization (sainthood) of our founder Fr. Michael J. McGivney.

This prayer specifically talks about caring for the needy and the outcast. Doesn’t a credit card go directly against that? Why the need for unsecured credit? Don’t credit cards prey on the needy and outcast? So, what is the benefit to the Knights of Columbus in offering such a card?

The Knights do not have or operate a bank. We have life insurance and investment divisions that aren’t predatory in nature like a credit card is. Venturing into credit cards seems way off mission to me.

Jake the Snake

A Defense of Dave Ramsey

Folks, I was at the men’s Bible study at church last night when one of the Elders starts capping on Dave Ramsey.

They were talking about pop psychology and pointing out that it is a substitute for Biblical council. After a few jabs at Joel Ostein, a fellow brought up Dave Ramsey. I was like, hold it. Dave is a man dedicated to helping folks get out of debt. I said that Dave Ramsey often quotes the proverb about the debtor being the slave of the lender. I said that Dave is carried on many secular radio stations and probably is one of the only Christian voices that some folks may ever listen to on a regular basis.

Furthermore, I mentioned that his teaching helped my wife and I pay off $125K in debt (not counting the mortgage) and I tried to bring up the fact that many young people, following the advice of their parents, are getting out of college with huge amounts of debt and that it affects their ability to get married and start a family.

This guy was not moved at all. His only comment was that he was happy to be living off of his Social Security and that was good enough for him.

Folks, if you need another example of the worthlessness of the Baby Boom generation, here you go. Please understand that this guy may be an Elder in the church that I am currently attending but for many decades he was a pastor leading a flock.

As you know, money is one of the leading causes of divorce in our country and he has no empathy for folks that followed the advice of his generation, who went to college because they were expected to, and are now hopelessly upside down financially for the rest of their lives. WTF? When he was in the pulpit, did he never help people in such circumstances? Probably not, but he should have. Isn’t that part of the job description, to apply God’s Word to every area of life; unless he thought God is silent on the subject.

Dave Ramsey tries to offer people in such circumstances a lifeline, and somehow Ramsey is the villain. Whiskey Tango!!

I guess this pastor guy is so cocksure the Jesus is coming any second that his parishioners don’t need to pay their bills, save for the future, or help their fellow man. Sorry dude, but that attitude is both arrogant and unbiblical.

The Bible has much to say about marriage. Arguably, the second most discussed topic is money and commerce. Here are a few verses to wet your whistle on the topic.

Debit is bad.

The rich ruleth over the poor, And the borrower is servant to the lender.

Proverbs 22:7.

Debt is a sign of God’s judgment.

6 For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee.

Deuteronomy 15:6.

43 The stranger that is within thee shall get up above thee very high; and thou shalt come down very low. 44 He shall lend to thee, and thou shalt not lend to him: he shall be the head, and thou shalt be the tail.

Deuteronomy 28:43.

If you are in debt, get out ASAP.

1 My son, if thou be surety for thy friend, If thou hast stricken thy hand with a stranger, 2 Thou art snared with the words of thy mouth, Thou art taken with the words of thy mouth. 3 Do this now, my son, and deliver thyself, When thou art come into the hand of thy friend; Go, humble thyself, and make sure thy friend. 4 Give not sleep to thine eyes, Nor slumber to thine eyelids. 5 Deliver thyself as a roe from the hand of the hunter, And as a bird from the hand of the fowler.

Proverb 6:1–5.

Dave Ramsey is right that no one should be in debt.

Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.

Romans 13:8.

Furthermore, you should save up to give an inheritance to your children and grandchildren.

A good man leaveth an inheritance to his children’s children: And the wealth of the sinner is laid up for the just.

Proverbs 13:22.

Bottom line is that Dave Ramsey is in fact teaching God’s Word to people that otherwise would never hear it even if they go to church every Sunday.

Every area of life should be placed under the Lordship of Jesus Christ. If your church doesn’t teach it, they are not preaching the whole counsel of God.

Get out debt, yet another reason that eschatology matters.

The Supreme Court got it Really Right

I have been told by many so called conservatives that the courts only strike down Republican laws, never Liberal ones. This is patently untrue, but I cannot control the way you think as you have been programmed by tv media to think the way you do.

The Constitution says that taxes must originate in the House of Representatives, not the Senate, nor by Executive Order from the Executive branch. The reason for this is our Founders set up a process where checks and balances are a thing. Large states like California, Texas, and Florida get a large says about matters in the House, while small states like Rhode Island, the Dakota’s, and Montana can hold a larger say in the Senate on matters. The Executive branch is not allowed to issue Executive Orders on certain things; they must originate in the House.

“Sorry rules are rules.”

The Constitution states that Congress has the power: “To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;”

Oh, isn’t that the rallying cry of the Tea Party, far right types whenever the Liberals are in control of things? It’s all about the Constitution.

As William wrote in his blog, if Congress did its job, we would not be here. This has gone back to at least the W. Bush presidency, we no longer have a budget, we do Executive Orders and Continuing Resolutions; neither of which is authorized by the Constitution. We fund the government for around 60-90 days at a time.

This Executive Order gambit has taken on a life of its own; due to Congress not doing its job.

The problem is actually a bi-partisan one. Both parties do it. When one party controls the White House, the other party, if they control Congress, digs in and refuses to pass any legislation that helps the party in power. As a direct result, the White House does executive Orders to go around Congress. Then it is essentially up to the courts to litigate it.

Typically, the process works this way. The party out of power (not the White House), finds a friendly judge, said judge rules it unconstitutional and blocks it. Then the President, via the Department of Justice, appeals the ruling to Appeals Court. When that occurs, the Executive Order, could be allowed to continue pending appeal outcome, which is what typically occurs. In the case of tariffs, it was allowed to continue. The appeals court will rule (it’s typically a random 3 judge panel, not one judge). If the outcome is not to the liking of one party or the other, it can be sent to the Supreme Court. If the Court agrees to hear it, they usually issue a stay and allow the law/regulation to remain in place until they rule on its legality. The Supreme Court ruled today, 6-3 saying tariffs done by Executive Order are illegal.

In closing, I will say this, regardless of your belief on tariffs, I have made mine known previously, this is a big win for the rule of law. Just imagine for a minute if the Supreme Court ruled the other way, it opens Pandora’s Box for the other party to do the same on their legislative priorities. If that were to occur, what is the point of Congress? Trump is aiming his anger at the Court; he should be aiming his anger at Congress.

By The Chief

Supreme Court Tells Congress to Do its Job

The US Supreme Court just struck down President Trump’s ability to set tariff rates with other countries. The vote was 6 to 3. I never could figure the Constitutional basis that gave Trump this power. Yes, it was good from a fiscal point of view, but …

This ruling essentially told the do-nothing Congress, this characterization is true of both parties, that they must do their job. Congress has been a broken and failed institution for my entire adult life and then some.

Trump has proved that tariffs can be an effective way to generate revenue, they were for most of the country’s history and could be again. The Court has said that Congress needs to lead. Constitutionally, that is a correct statement, but in reality, it is not likely to happen.

This ruling is also good because the Court is politely saying that rule by Executive Order must have limitations. If Congress had any genitals, rule by Executive Order would be illegal.

Local Dickey’s Closes, Disturbing Details

Long time no blog out of me. Like most I have been busy, but also prices have gone up so much at local eateries that I am going to have to re-evaluate my criteria for judging businesses. However, I have killed the local Dickey’s “BBQ” joint for what may be the final time.

You may recall my initial review of Dickey’s that led to the franchisee trying to coerce me to “take down my review” in the comment section here. That franchisee subsequently closed down his restaurants, and re-branded as “Side Burn BBQ” which was essentially a copycat of Dickeys but with different names on the menu. He claimed he never read his franchise agreement with Dickeys, was sued and his concept was shut down.

The place re-opened as a Dickey’s again under a new franchisee.

Just a quick reminder of Dickey’s, I reviewed it again after it re-opened. Dickey’s is supposed to be Texas style BBQ that was going to go country wide. It’s a franchise model so you pay a fee, buy equipment, and must source the food from the local supplier, ala Sysco or US Foods. The menu is standardized and prices are set by Dickey’s corporate but “may be higher in select markets.”

They serve the usual BBQ faire, brisket, pulled pork, ribs, chicken, turkey, sausage and it can come as a plate, small or large sandwich. They also offer salads, and large baked potatoes. Their signature feature was that you got as many large pickles as you want, and a free soft serve cone as well upon leaving.

As for the BBQ itself, it was average at best, with a five-star price tag. NO smoker or BBQ on site, food was pulled from a warmer, wrapped in shrink wrap, cut, re-wrapped and returned to said warmer. This place had all the tell-tale signs of pre-made BBQ from a supplier, flash frozen/cooled and revived in the store. It was odd really, the place never smelled like BBQ, kind of like a Subway never smells like a deli. That being said, when I asked about how the meat was cooked, the worker opened a cabinet revealing a rotisserie type cooker with multiple shelves holding product. I’m guessing this was their version of a smoker. On my only visit when the place re-opened, the pulled pork on my sandwich had to be soaked in sauce to have any sort of taste. This place was not going to last.

But enough about the products.

I am stunned by this bankruptcy filing, here are the details, I am using the names because they are listed in public records.

Elk Grove, Calif. franchisees Miguel Zarate Ortiz and Maria Zomeno Sevilla filed their petition in the U.S. Bankruptcy Court for the Eastern District of California on Dec. 8 listing only $17,987 in assets and about $1.04 million in liabilities, the Sacramento Business Journal reported.

Most of the liabilities are debts owed to the Dallas-based parent company.

The Elk Grove franchisee did not state a reason for filing for Chapter 7 bankruptcy in its petition. The restaurant’s listing on the Dickey’s locations page reveals that the store is closed, and the phone number listed is not operational.

I had to do a double take, how on God’s green earth can a franchisee owning a single store have 1 million in liabilities owed? While Dave Ramsey would spontaneously combust upon hearing this, I want to examine it a little more. I actually have no issue with folks taking out a loan to start a franchise or small business. The way I view it, you do not own the store, or the concept, so why invest a lot of your own cash? While I would never own a franchise, I can see the draw. As a franchisee, you use a concept that already exists and is easily duplicable, use their menu, and use their supplier for food. I do not see how you can run up a million in debt.

Allow me to explain. Owning a franchise is an “asset light” model. Think of it like owning a Dominoes Pizza. You buy their oven, the decorations, the shelving, cooling units, ice machine, etc. These products cost money but not any amount touching 1 million. In the case of Dickey’s sure you have that smoker type thing, a cooling unit, a warmer unit, the ice cream machine, soda fountain is likely leased from Pepsi/Coke, the machine that butters/toasts the bread, and that’s really about it. Again, I’m not seeing 1 million dollars here. Nowhere close. I guess it could be they are not paying the franchise fees assessed monthly, but I cannot verify that.

Buyer beware, but my God in Heaven, you must be one crappy owner/operator if you somehow ran up that kind of debt. I do not think this store has been in operation under the new owner for more than 6 years. Sad!

Trump Slashes Credit Card Interest to 10% … That’s a bad thing

How is it a bad thing you ask? Easy, credit counseling, not credit interest rate cuts are needed. One thing I do agree with Sen Elizabeth Warren on is banks and credit companies take advantage of some of the most downtrodden and down on their luck individuals. They also prey on folks who should not even have a card to begin with.

Folk’s it may sound anti-business, but I do not think it’s right for a credit card company to be on a college campus hawking its products. Students, by and large, do not have an income, this is purely designed as a trap. Give them a card with $500 or so limit, get them to charge a bunch of fast food and booze, then tell them the minimum payment is all that’s required. Then when they hit the limit, either raise it, or charge over the limit fees. Then the higher interest kicks in and the minimum payment doesn’t even touch the principal. Countless lives have been ruined by these cards. Adults, families, and college age people by the way, credit cards do not discriminate.

So why is it bad to lower interest rates? It’s temporary relief, not the answer to the question. We are, in essence, rewarding bad behavior. I know some folks will be able to pay these cards off, but many more should also be closing them out. Pay in full and close them out? HA. This feels like an excuse to keep people spending once paid off, due to low interest rates compared to what they were paying. Not everyone needs to go to college and not everyone needs a credit card.

What do people need?

Credit counseling. Its not allowed in school as part of a budget class because it was deemed racist by the older generation. Not sure how budgeting is racist, but that maneuver has created a massive issue with the younger and some older generations. Credit cards, especially store cards, are far too easy to come by. While I do not think the interest rate should be allowed to touch 35%, I am not sure what the maximum should be.

On cards, I stick to what Dave Ramsey says; in essence you do not and should not need one. If you get one or more, like I have, be sure to pay them off in full each month, never spending more than you should. Differentiate between a need and a want. Sure, the points or miles are cool, but no one has gotten rich of credit card points… no one. Sure, it’s nice to earn a couple few hundred a year, but I do not have credit cards for that reason. Yes, its true people who get credit cards often overspend to earn extra “points” just remember folks 5% in rewards is $.05 per dollar spent, it’s not like you are coming out ahead.

My bigger issue is Donald Trump cannot do what he wants to do legally. Sure, he can sign an Executive Order, but will it stand the test of time? It appears to me to be blatantly unconstitutional. Time will tell, I guess.

My final thoughts are why do we no longer teach people about credit? Dave Ramsey is spot on when it comes to this. It’s the same with pay day lenders, pawn shops, and hard money lenders. Folks need to know what they are getting into, in the form of a class, via the internet or in person. Folks need to know how these financial vehicles work and what they could end up paying, not in the form of legal mumbo jumbo on their bill.

The Chief

The “Fed” Lowers Interest Rates…. Stupidly

So, the Federal Reserve Board of Governors agreed to lower interest rates yesterday for the third time this year. If you are wondering what this is about or how it affects you, congrats you are in the right place.

In cliff note terms what this means is the following: Banks borrow money from the Federal Reserve; they pay the rate the “fed” sets as interest. Then the bank turns around and loans it to “you” in the form of a car loan, home loan, line of credit etc. You pay higher terms then the bank and they make money on the “spread.” So, for example, when rates were zero about 10 years ago, I got a home loan (mortgage) my interest rate is 4%. So, the bank borrowed the money for zero from the government and loaned it to me for 4% so they make 4% on the money I borrowed.

As a result, mortgage rates will drop as will vehicle loans etc.

Why is this stupid?

Fed Chair Jerome Powell didn’t do this on his own volition, President Trump has been saying he will fire and replace him with someone who will lower interest rates all year. The fed is independent of the presidency, but this president doesn’t adhere to that. Simply put, Trump wants what he wants and will stop at nothing to get there. He wants interest rates to go back to zero, basically where they were during his first term. The fed controls interest rates as a check to keep inflation in order, most would agree inflation is still very high. We also have economic uncertainty, layoffs are up, and consumer spending (credit cards) is at never-before-seen levels.

Again, why is this stupid?

It helps out very few people actually. Sure, if you have a mortgage that started about 7 years ago or less, you likely can refinance to a lower rate, that’s a good thing. Ditto for auto loans and home equity credit lines. If you are a saver, you get whacked as your bank will lower interest rates paid on your savings account. To be fair no big bank pays much as far as savings, but my online bank has gone from 4% to 3.3% in the span of 3 months. Don’t cry for me, listen to my point in the following paragraph.

Trump wants corporations and the government to refinance their debt, not pay it off. Trump’s corporation has billions in debt. Look it up, as it comes due corporations do not pay it off; instead, they simply “recast” it and refinance at the going rate at the time. For the last 7 years or so, it meant much higher interest rates. Lowering interest expense means more to borrow, more to expand that hotel, or build that casino, or buy a competitor. It benefits corporations, not you the individual. Large corporations have popped up in the last 10 years buying up single-family homes and renting them out. Avalon Bay, and Invitation Homes are two of them. Very low-cost debt allows them to pay over asking price, and there are no contingencies. It’s hard for a person to buy a starter house when these corporations exist largely to buy up entire communities of homes. Sure, you could get approved for a lower interest rate to try to buy a home, but good luck.

If you are a saver, aka you follow the Dave Ramsey, Caleb Hammer, FIRE etc. movements, you lose purchasing power as the interest you earn in the bank will be a rate far lower than inflation. The destruction of the savings rate is exactly what Donald Trump wants. It’s a way to discourage this behavior. There is no benefit to the economy of me having $85,000 in the bank earning what will eventually be about 1% a year.

So, what is my point here?

Trump’s big thing is the stock market. He, like many others who are addicted to the TV, thinks the stock market is the economy. When it goes up, its great, when it goes down bad. 90-day guy believes stocks only go up, and Republican administrations are the best for the stock market. Think again, it’s the opposite. You’re better off in a Democrat presidency, Republican congress time. The problem is the only place to get a return of any kind when interest rates are that low is the stock market. This is dangerous because in most circles, folks believe the market has major external forces that dictate returns for those in the know. Why do you think people like Marjorie Taylor Greene go to congress flat broke and emerge as millionaires several times over? If you think they have good luck, God bless you! Just to add, for every Marjorie Taylor Greene or Nancy Pelosi, there are quite a few big losers in the market. Buyer beware… pun intended. I strongly oppose investing every dollar into the market, always keep money in a savings account, but to each is own.

In closing, please consider this word of warning. What about Donald John Trump screams he has your best interests in mind when it comes to money and budgeting? Think about it, I’ve mentioned his corporate debt, how about the spending while he was/is president? Doesn’t inspire much confidence huh? He loves debt, and cheap debt at that. You do not have as much money as he or his family does, rates will eventually go up again. Ask Rite Aid or any other corporation that went bankrupt. Nothing is forever and you don’t have the knowledge or insider status to compete in the stock market with these folks. Look at the number of billionaires in Trump’s cabinet, or any cabinet of past presidents for that matter. They know more than you and have more connections than me and you. In the long run this “great bull market” will run out of gas.

Beware of the prophet seeking profits. Also, know that a fool and his money are soon parted, don’t risk more than you can afford to lose.

PS. Anyone think it’s odd that folks you don’t know to be financially literate are now speaking about investing in crypto and other whacky things like meme coins? These are folks who never spoke about investing in the past. There are several in my circle. It has me worried. I understand the 90-day types being happy. They consume so much TV they live in a self-induced echo chamber. But what worries me is the folks who are not investor types starting to get into the game, especially some of the folks I know who are not exactly smart.

The Chief

Fifty Year Mortgages do not help Affordability

The fifty-year mortgage idea was floated by the Trump administration as a way to make home buying more affordable for the younger generations. While this may sound good on paper, it’s yet another way the older generation wants to saddle the younger ones with insurmountable debt. This is called “financial engineering” it’s the latest go to from the Baby Boomer generation that is entering the later stages of life… I mean power on this earthly plane.

You see, as things are currently, you have two options for a mortgage on a home, 15- and 30-year terms. Folks like Dave Ramsey and others rail against a 30-year loan, and he isn’t totally wrong. The problem is, we have a massive affordability crisis, as far as buying “your first home” is concerned. I say buy the place, if you can afford it, and you can always make extra payments toward your mortgage to build equity and own it quicker. Case in point, 10 years ago, I bought my first home, for $325,000. As of today, Zillow has it valued at $600,000. As you can see, starter homes are very expensive.

Enter the older generation. Having learned nothing from the financial crisis circa 2008, they now are floating a 50-year mortgage. This is the same group that floated and sold; interest only mortgages, negative amortization mortgages, NINJA (no income, no job, no asset) mortgages, and no down payment loans. This sunk the financial and credit markets so badly that banks needed federal government bailouts to stay in business. Foreclosures ran rampant and destroyed neighborhoods and cities. 15-17 years later we are not students of history, we just look for a new means to get to an end.

To be fair, this generation has been at it for a while now in regard to affordability. One thing William will tell you, I railed on the new 84-month car loan that replaced the 60-month car loan. This also had nothing to do with affordability. It was just a financial tool to get “you into that car you love so much.” It became not can you afford it, but how much can you pay monthly? We will adjust the dials in the finance department and make the numbers work. I do not know too many people who think it’s a smart idea to finance a vehicle for 7 years. Oh, check out what interest rate you will be paying, news flash it won’t be 0%.

Back to the 50-year mortgage, I ran some numbers, and it amounts to about a $300-400 savings per month in terms of a lower payment. This is based on a 30-year mortgage running about $2,600 which is common now. As you can see, the savings might help, but it comes with drawbacks. First, the interest rate will not be cheap as the bank will be holding the note for 50 years. Also, the age of the house will come into play. Buying that home built in 1960, it’ll be over 100 years old before the mortgage is 2/3 paid off! This carries significant risk for the bank as the asset could be falling into a state of disrepair. Also, you do not and will not build much equity over the life of that mortgage, so when you are looking to buy your bigger house, you won’t have much for a down payment. Just look at the amortization schedule. You will see the first 7-8 years is virtually all interest, not much toward principal.

The last thing to remember, the man pushing these mortgage ideas is none other than President Donald John Trump, a man who loves debt. Look it up, his corporation owes billions in loans. This is no shot at him, he made a ton of money in real estate, but he did it with the corporation holding the paper not himself. In this case, he is making you hold the debt personally. He has made zero attempts to cut the debt or deficit as President (this term or last), and a budget will never be a thing under him. He see’s things through the eyes of “as long as you can make the payment you are fine.” It’s the way his generation feels.

In closing, please think long and hard before you fall for these shenanigans put out by the older generation. The only thing they care about is wealth generation. The 90-day calendar types love it because this means home builders can sell more homes, banks can write more loans, and profits will go higher. They could care less about affordability; they prefer you locked into loan terms that won’t seem like a good move in a decade. This will not end well. I am happy there has been push-back on these mortgages. The truth is that some people will not be able to afford a home. You may not be able to afford that sports car, getting another credit card will not solve your problem. A class/seminar on budgeting/credit should be required.

Stop fleecing the younger generations. Be a student of history. We are entering a rough cycle in terms of affordability. Adding more years to the term is pointless. It’s time we grow-up as a country.

SNAP/EBT Benefit/Fraud/Use Explained

During the government shutdown you heard a lot about SNAP/EBT/CAL Fresh benefits. I will explain the propaganda both sides were using. 90% of it is not true, 100% of it was deplorable. I will explain the program and the amount of “fraud” taking place. If you are reasonable, you will learn something, if you are far right or left, you will not; feel free to quite reading if you fit into the latter categories.

Understanding what SNAP is. It is a supplement. People on SNAP are what I refer to as the “working poor.” They are folks working 12-15 hour days, possibly even 7 days a week, because the jobs they have pay minimum wage. They do this because their primary job doesn’t give them 8 hours a day or 30 hours a week to be eligible for benefits. These folks have their money run out around the 20^th or so of each month. Sure, there are disabled folks on here to who cannot work.
What you can use SNAP on. It’s essentially groceries and fast food. It will not work on alcohol and some prepared foods.As a result, you see the person in line having to swipe the card numerous times, and likely remove items that aren’t eligible for SNAP from their cart because the system will not take payment.
How much is the benefit? It’s about $188 a month. Again, the point of this program is a “supplement” not a living benefit, think of it as “something extra.” Look at that figure again. Folks, it’s $188. Recipients getting this aren’t going out to dinner at Ruth’s Chris Steakhouse. If you live in the real world, the folks on SNAP, as Dave Ramsey says “are only seeing the inside of a restaurant if they are working there.”

As you can see above, this program isn’t one that folks are getting rich off of, it’s just a way to put food on the table during the latter part of the month. No one is living high on the hog here.

I will now refute the criticisms the uninformed on both sides of the aisle spew about this program.

It’s rampant with fraud. This is flat-out, not true. First the benefit is so small that it’s barely worth the time to apply if you are doing it for nefarious reasons. I am sure your household income is verified, either via the IRS or State Tax Board so it would be pretty easy to catch the liars. If someone is working for cash or under the table, I am not sure how to catch those types, but it’s a small number. Now in regard to the folks selling their benefit card for cash to purchase drugs or alcohol, I am not sure how you stop that, but again that isn’t a large part of the program. Again, I just do not see a lot of people fraudulently being on this government program.
These people did it to themselves. In some cases, yes, I will concede that point, having a felony on your record severely limits the jobs you can have. Not finishing high school also will limit you, as is the case with having children out of wedlock. However those people are the exception, the rule is what I am talking about. Most of these recipients are working multiple jobs and are barely able to tread water. This is due to C-suite types not wanting to pay a living wage to folks and cutting hours to not allow benefits to be offered.
All they buy is junk food with it. This is mostly true unfortunately. Again, what we are dealing with here are folks with very little work skills, working for very little pay. Also, due to their schedule, they may not be able to cook or know how to cook. In that case buying, chips, cookies, cereal, frozen dinners, and soda is what they do. They can stretch these items out, I guess. Yes, this food is bad for you healthwise, but it does no one any good giving people who can’t cook; beans, rice and flour. It’s a deeply systemic problem that has been allowed to grow out of control.
Illegals are getting benefits in large numbers. This isn’t true. Why would you sign up for a program and call attention to yourself, especially with the current group in the White House. Let’s all agree on something, it isn’t illegals pulling off the fraud.
Not paying them during the shutdown will teach them a lesson. I heard this from a couple Republicans. Anyone else need proof that taking God out of our lives was a bad thing? Starving people to teach them a lesson? What is the matter with you. This is actually worse because the true “hunter/gatherer” mentality comes out and folks start doing drastic things to feed their families.
Can’t food banks take care of it? Nope. The truth is they can barely handle their current caseload; this just made the issue worse.

As you can see from the above, I am making light of the fraud, and what these folks buy. The questions being asked and statements made are a problem. We should be asking how are 42 million Americans on this program? That’s a ton! How DID this happen? We can talk about fixing this but I feel we are too far gone. Where do you start when 42 million people are on it? RFK Jr., for all his faults, is onto something about limiting the types of foods folks can buy with these benefit cards. I do not think they should be accepted at fast food places either but again the bulk of these folks can’t cook, or their schedule doesn’t allow them the time. It’s a chicken or the egg type argument.

If we want to be real about the program, I think those of us that are reasonable would agree, 7/10 of these folks do have a need to be on the program and receive the benefits. They as stated work multiple jobs, weird hours, and just cannot get ahead. 1/10 are likely fraudsters, but how do you catch them? As detailed above, it’s pretty hard to catch the person selling their card for cash at the local park/street corner. This is also likely a number higher than is reality. The remaining 2/10 are where the real problem lies. These are folks who are clueless as opposed to the 7/10 who are helpless. These people put themselves into this situation by having a deserved criminal record, having kids when they cannot afford them, and other poor choices. These are the folks we need to stop assisting. They likely spend countless hours watching the tv on the couch and intentionally not picking up more hours at their job because they are lazy. Frankly put, we help out way too many clueless folks in this country, we are bankrupting ourselves as a result. This is the group DOGE should have targeted.

Chief

PS now back to your regularly scheduled programming of tossing out far right and left ideas about this issue.

Editor’s Note: One issue that is not refuted in the above is stolen identities and organized crime. I suspect the bulk of fraud is via this mechanism. In my experience, government is ill equipped to deal with fraud as the presumption of any government program is that the applicant is eligible.