Fri, 27 September 2019
In today's 10th episode, Jason Hartman talks with Etienne Deffarges, author of Untangling the USA: The Cost of Complexity & What to Do About It, about some of the most pressing issues facing the country, such as health care and our banking system. They look at what exactly is causing the issues, but don't just focus on the problems. Etienne and Jason also discuss the most important part of the problems: their solutions.
[2:26] We as a society make things much more complex than we need
[7:51] Etienne's solution for health care
[14:04] How can we improve the world of finance?
[18:15] Etienne is in favor of banks having to have a higher equity to debt requirements
[21:35] With all of these problems in the world, what's the solution?
Fri, 20 September 2019
Jason Hartman and Adam examine the Investopedia article referring to the 9 common effects of inflation. The 2 types of inflation (cost-push and demand-pull) are also broken down in regards to how they impact your property value and rent.
Then the two examine what impact the Trade War with China could have on the markets properties are available in. If production from overseas come back to the United States, where are we likely to see the impact?
[3:40] The 9 common effects of inflation
[8:36] The land value is the one that's susceptible to big swings in value
[12:10] Cost-push versus demand-pull inflation
[15:19] How the Trade War could create cost-push inflation in the linear markets we're investing in
[18:34] If China ever manages to create a middle class they're going to have to deal with a new set of issues, which might make them an inopportune producer
[23:21] When labor shortages hit construction it can make it incredibly expensive to build a house and retain the workers needed
[28:00] Once the Trade War has ended, look at what job sectors are going to be impacted most and adjust your investing strategy accordingly
Fri, 13 September 2019
After giving a quick update on his cruise travels, Jason Hartman talks with Taylor St Germain, economic analyst at ITR Economics, about why lower interest rates haven't spurred the higher end housing market. The two also discuss what indicators Taylor looks at to get a gauge on the economy and the impact tariffs have had and may still have yet to come.
[1:04] Are lower interest rates good news for cyclical markets or are they just too overpriced?
[5:31] The rise in wages has helped the economy but it's not changing the overall trend or forecasts
[9:29] Why are housing starts so important?
[14:34] ITR's concerns with the tariffs currently being put in place
[18:50] More tariffs could potentially put us in a recession, so be very careful if we see more coming
Sun, 1 September 2019
Jason Hartman and Adam today break down a video about how Fannie Mae and Freddie Mac influence the housing market in the United States. While their publicly stated goal is to make housing in the country more affordable, are they really doing that? Listen in to find out.
[1:19] Fannie Mae Going Away?
[3:39] The idea that we need a high home ownership rate is a false idea
[8:11] How Fannie Mae props up the housing market
[12:53] Fannie & Freddie have a stated goal of making housing more affordable, but they don't do that at all
[22:24] If you're investing for yield rather than capital gains, the price of the house has much less importance
[25:30] The importance of sustainable investing