Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This is Monks and Merril hosted by Michael Monks and
Chris Merril. This is Monks and Merrill. Demand k merrow, damn.
Speaker 2 (00:16):
I.
Speaker 1 (00:18):
This is Monks and Meryl.
Speaker 3 (00:20):
So excited to have you on the radio.
Speaker 4 (00:22):
Hosted by Michael Monks and Chris Merrill on kf I Am.
It's KFI AM six forty live everywhere on the iHeartRadio
app Monks and Merrill. No Merrill today got him suspended
for a day. He'll be back on Monday. Don't you worry.
Got some bad news. I know we've been talking about
(00:43):
a lot of bad news today from the weather or
potential earthquakes and all that. But the OHI Raptor Center
has updated its social media post about Jackie, the bald
eagle out of Big Bear, who's been in the intensive
care for weeks now. They say this is the OHI
Center itself, saying that the update today is not positive.
(01:03):
Today's update is not positive. They say Thursday night was
quote particularly difficult. Jackie is still in intensive care. She's
receiving oxygen therapy, supportive treatment, and around the clock monitoring.
They identify her as patient two six five one nine.
I guess for hippo reasons. They say she remains an
(01:25):
intensive care. She's got her oxygen therapy or supportive treatment
around the clock monitoring. Her blood values have declined again.
Her packed cell volume or PCV, I don't really know
what that is, but it's fallen below ten percent and
her condition remains critical. The OHI Raptors Center shared that
this week's contrasts CT scan and bone marrowiopsy have provided
(01:47):
important new information, but they don't have the complete picture yet,
so that is difficult news about Jackie the bald eagle
out of Big Bear. You may recall Jackie, longtime partner
of Shadow, nesting together very popular figures online. Their live
camera is an extraordinary, extraordinarily popular feature for folks that
(02:11):
love to watch those two tend their eggs and hope
for those occasions where those eggs hatch and eaglets are
born and grow up in the nest and then fly
off on their own. And we did have successful eaglet
hatchings this season, and those two, those two baby eagles
(02:32):
left the nest this week. It appears for good, Shadow
is alone. Jackie, of course, was caught up in a tussle,
a fight or something with some younger Eagles, and some
say that she was kind of sick before that. Regardless,
she's been in the hospital in Ohai ever since, and
it seems to have gone back and forth.
Speaker 1 (02:53):
You know.
Speaker 4 (02:53):
There were some positive updates and people who are big
fans of Jackie and Shadow hoping that Jackie and Shadow
would reunite, but the day's update makes it sound like
that could be unlikely. And I'm sorry to put this
out into the universe, but we might be preparing for
a state funeral for Jackie the Eagle. So that's the
latest out of Ohio. We've been spending a lot of
(03:15):
time talking about whether this region is fully prepared, whether
our local government will have us prepared for any big
weather event related to this super o Nino or for
the big one, the earthquake, since we know that some
very very smart people are citing research saying there is
stress on these fault lines here San Jacinto, San Andreas
(03:36):
that is as high as has been in a thousand years,
and the only way that stress can be released is
through a major earthquake. And they also note that there
is a bit of earthquake amnesia in this region. That's
their time, that's their term. Not mine earthquake amnesia. Because
we've not had a significant quake in thirty years.
Speaker 3 (03:56):
I'm not expecting a good response the massive earthquake that
we couldn't even put out two big fires, you know,
that burned two towns to the ground. No, I don't
think that they're gonna be for it there for any
of us.
Speaker 4 (04:13):
It's going to be every.
Speaker 3 (04:13):
Man for himself.
Speaker 4 (04:15):
And just make sure you have.
Speaker 3 (04:16):
A lot of bottled water with those tablets so it
doesn't go bad.
Speaker 4 (04:21):
Yeah, I think that's good advice. I just finished watching
the series Fear the Walking Dead. I was a big
fan of The Walking Dead, the original series, and finally
got around to watching Fear the Walking Dead, which incidentally
features the zombie apocalypse starting in Los Angeles, and I
thought it was an excellent early portrayal. The first few
(04:41):
seasons were pretty good, but I thought they really captured
Los Angeles in the chaos of a zombie apocalypse. It
looked exactly how I would expect things to go. By
the way, It's a terrible series. It really falls off
a cliff and, as frankly I suffered through all of
the seasons, the worst show I've ever watched. The life.
I'm comfortable saying that, but the first few seasons are interesting,
(05:03):
especially season one where they're in Los Angeles. I bring
that up because it just got me thinking, like, how
would I do? And am I ready for any type
of series event like that?
Speaker 5 (05:12):
Now.
Speaker 4 (05:12):
I don't expect a zombie apocalypse, of course, I don't
think I'm prepared. And that's not the only piece of it.
That's not the only person who suggested that that we
need to be ready on our own. Several people left
messages on the talkback that, Yeah, the best thing that
we can do is just take care of ourselves, because
(05:33):
we can't entrust our health, our safety, our future to
the people who are in charge in Southern California or
even at the state level, because they've just proven time
and again that they will not get it together for us,
and I think that's sad. We talked to a little
bit in the previous segment of sharing some of the
comments that were so cynical, and I'm telling you it's
(05:54):
just justified. You've lived here long enough, and you see
who's in charge, see how they respond to certain constituencies
over others, or how they respond at all. I think
this is hopeless, and that's kind of how I feel too. Now,
there are some people who are pouring a lot of
money into the mayor's race. I'm probably a little late
(06:14):
to get to this since we spent some time on
the Jackie situation. So I'm gonna tell you who is
funding Mayor Bass's re election campaign in La. She is
significantly out raising her challenger, Councilwoman Nitthia Rahman, who also
has a very poor record at LA City Hall. So
I'll share that with you next. And I'm also going
to talk a bit about this op ed that was
(06:35):
published in The Hill. As in Capitol Hill, The Hill,
the Politics newsletter, a guy in charge of a hospitality
organization in San Francisco says San Francisco and La are
moving in different directions. Guest which direction LA is moving in?
We'll get into that next.
Speaker 1 (06:53):
You're listening to Monks and Merrill on demand from KFI
KM six forty more stimulating talk.
Speaker 4 (07:03):
So I know a lot of you are probably frustrated
with the leadership of LA Mayor Karen Bass. Whether you
live in the city of La or not, it impacts
the entire metro area. You're probably not all that enthusiastic
about her potential replacement, Councilman Nythia Rahmins, since they hold
such similar views on most things and both don't have
a very good track record in their offices at LA
(07:24):
City Hall. But regardless, they're the two candidates who are running,
so that is where the money is flowing. Most of
the money in this campaign is going towards the reelection
campaign of Mayor Bass. She is being backed by a
dramatic thirty six to one margin. New campaign finance data
reveals major corporate, labor and real estate interest are bank
(07:44):
rolling the race for LA Mayor. Now there are also
independent expenditure committees which are able to spend more than
the traditional eighteen hundred dollars that you or I could
donate as individuals. They are overwhelmingly backing Mayor Bass thirty
six to one. Direct donations to candidates are captain eighteen
hundred dollars per donor. But these ies, these independent expenditures,
(08:07):
they got no spending limits at all, and they've been
pouring money in to support Bass over Ramen. The biggest
spender on the Mayor's behalf the Los Angeles Police Protective League,
the Police Union. All outside spenders are below them. The
LAPPL has spent around one point two million dollars primarily
(08:28):
on targeted ads going against Nitia Ramen, the number two
biggest supporter Airbnb. They contributed seven hundred and fifty thousand
dollars to an independent committee backing Bass. According to Reporting
a LAist. This follows Bass advancing a city policy proposal
that allows short term rental hosts to operate second homes
and investment properties through twenty twenty eight. Now you may
(08:51):
have been reading what's going on in New York where
mere Mom Donnie has gone after folks who have what
they call pietes or second homes. Maybe they lived somewhere else,
but they keep a second home in New York or
vice versa. He's taxing them higher. So Airbnb seems to
like that. Mayor Bass isn't moving towards that type of policy.
(09:12):
The biggest spender number three commercial landlord Douglas Emmett. He's
a major real estate player here in southern California. He's
dropped more than half a million dollars into the LAPD
union main political committee. So Mayor Bass is still popular
with some sectors, and she's going to need every single
dollar to hold off this challenge from Nitthia Rahman. Some
(09:35):
of the other notable backers for Bass include one hundred
thousand dollars from building trade unions, fifty grand from Kaiser
Permanente CEO Gregory Adams, and twenty five thousand dollars from
former Dodgers owner Frank mccourtz real estate company. Don't forget
he is still actively looking to put a gondola from
around Union Station to Dodger Stadium. Donor's giving one thousand
(09:57):
dollars or more accounted for forty seven percent of Vass's
direct campaign fund, whereas for Ramen only eighteen percent of
donors gave a thousand dollars or more. So that is
the status of that race, But what is the status
of Los Angeles? I read this op ed in The Hill.
It's a political newspaper. If you've never read at the
Hill dot com. We have a lot of their reporters
(10:18):
on from time to time to talk about national issues
that impact us here directly. And this particular op ed
was written by a guy named Alex Bastioni, and he
is the President and CEO of the Hotel Council of
San Francisco. But he grew up in Los Angeles. And
the headline that they gave this piece is San Francisco
(10:41):
and LA two cities headed in opposite directions. And here's
how he opens the piece. He says, I've spent much
of my life going back and forth between San Francisco
and Los Angeles. One is my hometown, the other has
been my home for many chapters of my life. I
love them both, and for decades their fortune have felt
intertwined together. They have shaped how much of the world
(11:04):
sees California today. However, he writes, they seem to be
moving in different directions. He says, the city defying expectations
today isn't Los Angeles, It's San Francisco. And what does
he use to support that claim? Well, think about God,
what you hear us talk about here on KFI related
(11:25):
to Los Angeles, skid row or various other parts of
the city, drug written, homeless camps, a seeming lawless nature.
The same was true in San Francisco. The same is
true still to some degree in San Francisco. But San
Francisco was really getting hit hard nationally in a way
that La wasn't. For some reason, even though our problem
was probably worse. San Francisco was a symbol of urban decline,
(11:50):
according to this writer. He notes, and we can confirm
because we saw this headlines focused on crime. Are the
open air drug markets, empty streets, downtown businesses bolting San Francisco,
and this idea that was being nurtured by a lot
of people that the best days for San Francisco were
behind it and people were leaving. This guy writes, I
remember those conversations because I was having them every day.
(12:13):
He says, when I moved back to San Francisco from
Los Angeles in twenty twenty two, many of my friends
in La thought I was making a big mistake, but
he says they were wrong. He says, today San Francisco
feels fundamentally different. Even bigger than the cleaner streets, new
investment and improving economic indicators is the fact that the
city has regained confidence in itself. There's a growing belief
(12:33):
that our problems are solvable, that government can work, that
business is a partner rather than an adversary, and that
progress comes from collaboration rather than ideological purity. That paragraph
is what hit me the hardest when I was reading it,
because I don't know exactly what's happening in San Francisco,
occasionally read some stories about it. But they did elect
(12:54):
a mayor and a new DA who said this status quo,
this allowance for lawlessness and cultural decline is over, and
the narrative shifted, and all it took was one election.
Whereas here in La we've descended in the same chaos
that San Francisco was experiencing, and we seem to be
(13:15):
doubling down every chance we get, especially in this mayor's race,
but also in the city council races. Some of the
biggest defenders who are serving on the La City Council
at La City Hall, who support keeping homeless people on
the streets, keeping their camps in front of your parks
and your kids' schools, they were resoundingly re elected, and
(13:36):
at some point you can't just blame them anymore. They
have a constituency. You may not be a part of it,
but they've got the majority of voters, people who show
up the vote. And so the question was raised by
this writer that a few years ago, San Francisco was
asking itself, is the city's best days are the city's
best days ahead behind it? Well, some people came into
(13:56):
office and said, no, we can fix this. But in La,
you don't have that same attitude. Whether it's the reelection
of Mayor Bass or the challenge from council Woman Ramen,
Do you have any sense of pride, any sense of ambition,
any sense that La is going to write the ship
that's been sinking for the past several years. I don't.
(14:17):
I live a block from skid Row. It's gotten worse,
and I know that if Marribass is reelected and continues
her policies towards homelessness, it will continue to get worse.
And I know that if Councilman Ramen is elected mayor,
it will actually be worse than mahyor Bass's plan. I
believe we're just in trouble here, and I don't know
whether we can wait another four years. I mean, my
(14:37):
assessment is that LA's a tough city, it's an old city,
It's been through bad times before. But where are the leaders.
We're the real leaders, not the posturing ones, not the
ones who speak in platitudes, not in grand standards. But
we're the real leaders in a city this big, in
a city that's this smart, How are these our choices?
I don't know that we'll have any time left after
(14:58):
this election. It's pretty scary for those of you who
aren't planning to leave La though, and you want to
buy a house, there is a new report out that
suggests you might have to just wait till you're older.
You're like, well, wait a second, I'm thirty six years old.
I got a good job. It's not old enough. There
is data showing that Californians who buy homes for the
first time are the oldest in the country. We'll get
(15:21):
into that next.
Speaker 1 (15:22):
You're listening to Monks and Meryll on demand from KFI
AM six.
Speaker 4 (15:29):
No Merril today, just Monks. So glad to have you
with us on this Friday. Though. Have you bought a
house yet? Are you a renter? Do you dream of
owning a home here in southern California? Well, depending on
how old you are, that could determine your success. There
is some new data that was analyzed from the US
Census Bureau and then also getting involved with this was
(15:50):
the Public Policy Institute of California and last reported on
this and this new analysis has shown that the agent wish,
a majority of Californians turned from rents to homeowners is
forty seven. On the one hand, that's depressing. On the
other hand, kind of gives me home because there's still
time for me. The rest of the country, nationwide, majority
(16:11):
of people are homeowners by thirty six. Chris Duff, who
is president of the Greater Los Angeles Association of Realtors,
told last it's quite staggering. The age does seem to
be climbing every year, especially here in California. And apparently
what's being blamed for this late in life first time
home buyer situation is that, well, you guessed it. The
(16:32):
prices are expensive, mortgage interest rates have been rough recently,
we build new homes way too slowly, and wages in
California are not growing fast enough, so younger adults are
completely locked out, according to real estate experts. And when
you look at the median home price, if you just scroll,
I know both Marly and I talk a bit about
(16:52):
how we're Zillo guys. Yeah, I got a little time.
I'll sit here and pick either a place that I'm
attracted to or or a random place that I just
heard about, and check out the houses there. If you
are hoping to buy a home in La County, you
have to know that the median home price is just
under eight hundred eighty thousand dollars. That's more than double
(17:13):
the national median home price of four hundred and thirty
five thousand. And if you're looking at Orange County, it's
even harder. It's like one point three million median price.
And according to data, only seventeen percent of households in
LA earn the minimum income needed to afford a typical
five thousand, four hundred and eighty dollars monthly income excuse me,
(17:34):
monthly payment on a mortgage. You would have to be
making over two hundred nineteen thousand dollars, either as an
individual or as a couple to afford the minimum the
typical monthly payment. So that's the analysis. Forty seven years
old to be old enough and in a position to
buy a home for the first time in Los Angeles.
But then you can trast that with some other data
that I found recently, an organization called ATOM shows that
(17:58):
California actually has a smallest percentage of mortgages that are underwater.
So the people who do buy houses are in good
economic positions, they're well, let's keep it. Let me just
explain what underwater means. Let me give the definition, just
for the benefit of folks who might not know. Underwater
mortgages are where homeowners oh, at least twenty five percent
(18:19):
more than the house is actually work. That's not happening here.
In fact, it's a very very small percentage of people.
Even in coastal metros like us LA or up in
San Jose or San Diego, we have the top spots
for people who are equity rich with their houses. So
once you get a house, it's valuable. We posed some
(18:40):
questions earlier this week about the challenges some people face
and buying homes, and we did hear from some folks
who share, Hey, you know, wasn't that bad for me
thirty years ago? I got a house in Oceanside for
one hundred and sixty thousand dollars and now it's worth
one and a half million. Yeah, too bad. It's not
thirty years ago for a lot of us who are looking.
But its value is good for you. I mean, that
(19:00):
is an amount that you can either sell your house
for and pocket, or it's something that can help create
generational wealth for your descendants. California is among the lowest
in the US for underwater homes around one percent. States
like Louisiana and Kentucky are the worst. Louisiana's almost twelve
percent of underwater mortgages, Kentucky's over eight percent, and Los
(19:23):
Angeles is the best. Specifically, among the highest metro areas
nationwide for equity rich properties, nearly sixty percent of mortgage
homeowners owe less than half of their homes total value.
So it seems like it's tough to get in the
door of home ownership, specifically in southern California. But boy,
when you do, the data show that you're in pretty
(19:45):
good shape. Even if sale volume is low and mortgage
rates are still at high levels. Massive price gains over
the past decade mean these existing California homeowners hold unprecedented equity.
So yeah, if you bought your house in ninety five,
you're sitting on a gold mine. If you're trying to
buy a house in twenty twenty six, gold's expensive, very
(20:06):
very expensive. But the high equity, combined with three percent
locked in pandemic mortgage rate from just a few years ago,
it's keeping other homeowners from selling. Why would you You
don't want to pay a higher interest rate on a
new house and if you just got in there a
few years ago, you know that the value of that
home is going to continue to grow based on trends
here in California. But that's another situation that it's constricting
(20:28):
the inventory, so the prices remain elevated for people trying
to break in. So that's the conundrum we're in. It's
very tough to get in, but boy, if you can
get in, you're set. I read recently that there are
some folks who are getting in, some folks who maybe
even last year, didn't know if that would be true
for them, But then something happened, something involving the stock
market and a very successful company, and some of the
(20:50):
thousands of workers and former workers at this place, they're
millionaires now and they have chosen some very specific LA
neighborhoods to purchase real estate. Talk about that next. As
we wrap up the Friday edition of Monks and Meryl.
Speaker 1 (21:04):
You're listening to Monks and Meryl onto the air from
kf I AM six forty.
Speaker 4 (21:10):
Available anywhere on the iHeart Radio app. It is Monks
and Meryl Monks without Merrill Today.
Speaker 2 (21:18):
Hey, great show today, Monks, great job going solo.
Speaker 6 (21:21):
You really improved.
Speaker 2 (21:22):
Why you have a mattress degree?
Speaker 4 (21:27):
Ah, you know, we got to go through a whole
show without somebody making fun of my decision to get
an advanced degree, with hout Meryl being here. Thank you
for that. I agree, I'm glad we got to do that.
Hold On, we were talking about houses, and there's new data
showing that in California the age at wish you stop
(21:48):
being a renter and become a homeowner right now is
forty seven, whereas nationwide it's thirty six. And we talked
about some of the factors about why that is. There
are folks who bought a house thirty years ago, why
leave it? It's only growing in value, and so that
constricts the market. And there are other people who might
have gotten into home ownership a few years ago and
the rates were lower, so why would they sell and
(22:09):
move somewhere else? The equity is going to continue to mount,
the value the home is going to continue to mount,
and you've got that lower interest rate locked in, So
that's hurting folks. And the average of the median price
in LA and Orange Counties is super super high.
Speaker 5 (22:23):
Hey, eminem, it's the cors. Like King, I got a
good example what you guys are talking about. The house
I grew up in Lamorada. My dad bought it in
nineteen eighty two for a whopping eighty nine k.
Speaker 2 (22:36):
Wow.
Speaker 5 (22:38):
Fast forward to today, I now own that house and
as worth just over nine hundred and twenty K. Yeah,
and every bit of that equity is in that house
when I needed. I will never sell my house over here.
Speaker 6 (22:51):
Yeah.
Speaker 1 (22:52):
And you know so.
Speaker 4 (22:53):
On the one hand, course, like King, of course, I'm
thrilled for you that that's how generational wealth can start
to be built for folks. On the other hand, it
is one of the reasons that folks can't get in,
you know. But I'm not manage you about it. It's
a choice that you get to make. Otherwise we should
be building more. What a novel concept there. We could
increase supply that way, and maybe that would help lower
(23:14):
some of the costs if you've got more choices and
we're all looking in the same place.
Speaker 2 (23:20):
Hey, monks, If people want to buy homes, they can
buy homes. There's plenty of affordable homes around the country.
The bigger problem is the fact that people want to
live in the sun belt. They want to live in
nice places they want to live in those metros they
want to live in California. Well, you better have a
lot of money then, because those are the places where
people want to live. And unfortunately pay hasn't kept up
(23:42):
with the prices of what these homes cost, so it
makes it that much more difficult.
Speaker 4 (23:48):
Yeah, that's right, that's right. Pay is not kept up either.
Good point, Cliff, Thank you so much for that. And yes,
this is a desirable place to live in spite of
all the problems that we talk about every day here
on KFI. I mean, there's nowhere better to be than
than southern California, right, So I get why it's always
been comparatively more expensive to live here. But the idea
that the age at which someone is when they become
(24:10):
a homeowner for the first time being forty seven, I
think that speaks to some systemic problems that we've got here.
It did not exist before. It's always been a desirable
place to live, it's always been a more expensive place
to live. But something different is happening here that is
causing that. I mean, think about it, forty seven, You're
(24:31):
well in the middle age at that.
Speaker 6 (24:32):
Point, forty seven years old. Huh, So more than half
of your life span just to buy a house. Okay,
you ever played the game Monopoly. By the end of
the game, one person owns ninety five percent of all
the properties and then you win the game. So welcome
to end stage capitalism. And then people wonder why the
(24:55):
mayor of New York got elected. Yeah, because the other
ninety some of us realized that we were just born losers.
Speaker 4 (25:03):
Yeah, I think you're going to find the great, great call,
great call, absolutely correct. I think you're going to see
some more sympathies for policies because people are going to
get angry and they're hard working people. They can't afford things.
They're not lazy, they're not bums. They just weren't born
on third base or they don't have support from family
to get into a new home. But here're some lucky folks.
(25:25):
People who work for SpaceX. This rocket company made a
seventy five billion dollar public debut on Wall Street, which
meant that more than four thousand current and former employees
were instantly millionaires. And maybe they weren't before. So they've
got all this money. Keep in mind, a lot of
them work down the road in Hawthorn. Okay, so they're
(25:45):
here in southern California. Well, they are on the real
estate market now, and there is a report in a
publication called The Ankler indicating that SpaceX millionaires are coming
for houses in Los Angeles. They are sparking bidding wars
across the South Bay as well as the West Side.
And according to this article, they're kind of running directly
(26:06):
into bidding wars with people from the Palisades who may
not be rebuilding in their former neighborhood after their home
burned down, and they're looking for permanent homes. So now
you've got highly paid, new money SpaceX millionaires going against
these families that decided maybe not to go into the Palisades,
(26:26):
or maybe folks who want to move into the Palisades
as part of the rebuild. But it's interesting that suddenly
the market is flooded by these instant millionaires, because those
are the people who can get in the door here. Now,
that's what we're talking about. It's so difficult to get
in the door. Once you're in the door of owning
real estate in southern California, you are set. We just
heard that call a guy whose family bought a house
back in eighty two for eighty nine thousand dollars, and
(26:47):
now it's worth what almost a million bucks forty five
years later. But if you're in, you're in. Real estate
analysts are calling SpaceX's public offering LA's equivalent of Google's
two thousand and four area IPO, meaning thousands of instant
millionaires and roughly four hundred individuals have over one hundred
million dollars in stock. Now you can buy a home
(27:09):
here with that kind of money. Suddenly the media in
price doesn't matter. Suddenly neighborhoods don't matter anymore. You can
pretty much live wherever you want now. High end transactions
are already happening, including a former SpaceX employee who purchased
a fourteen million dollar home in Hermosa Beach and that
set a new record there in the neighborhood. But there
(27:31):
are some Palisades fire victims who say they're feeling the squeeze.
Hundreds of families displaced by the pecific Palisades fire temporarily
relocated to the South Bay as renters, but now their
leasas are coming up and they're trying to buy homes.
They're getting out bid by these tech guys who've moved in.
It's tough out there, but buy a lottery ticket. Buy
(27:51):
a lottery ticket, wish on a star, and maybe someday
you two could become a homeowner. So many calls to
get to today and I can't get to all of them.
They're still coming in. You guys have been great today.
Thanks for keeping me company while I've been here alone
without Chris Merril. He will be back on Monday. Than goodness.
Until then, I hope you all have a great weekend.
My thanks to Mario, Richie and Deborah for keeping me
company as well. We'll see you back again on Monday.
(28:13):
With the new edition of Monks and Merrill on KFI
AM six forty FIFKFI on demand. You've been listening to
Monks and Merrill here the show live weekdays from noon
to three on KFI AM six forty and anytime on
demand on the iHeartRadio app