Are huge market gains before President Biden’s farewell address, related? We asked our economist and money wiz David Bahnsen.
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Episode Transcript
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Speaker 1 (00:00):
Previously on Your Morning Show with Michael del Choonho.
Speaker 2 (00:04):
Listen. I'm not a financial expert. I just surround myself
with them. It sure looked like a correction to me,
but huge market gains right before Biden's farewell address?
Speaker 3 (00:15):
Could they be linked?
Speaker 2 (00:16):
We ask our money was an economist David Bonson, who
joins us from New York. Good morning, David, Good morning, Michael.
You know, we often talk about energy and how important
that is to an economy confronting high cost of living
and inflation, which are not necessarily the same thing.
Speaker 3 (00:36):
What about housing.
Speaker 2 (00:38):
That's that's really, you know, and no one's talking about it.
It's kind of coming up now as they're burning down
in California. In fact, I was talking to a colleague
friend of mine, and our heart was just breaking, because
you know who's going to get hurt the most in
this the teachers and the firefighters themselves that own middle
class housing. That's what's going to become impossible, even within
(01:00):
insurance money to rebuild, and they're almost going to be
forced to leave. But you and I have talked so
much about housing, and I wanted to just kind of
revisit it today because it's it's still a central part
of our dilemma, and I don't know that anybody's addressing
it head on as if it's just going to fix itself,
because it won't, will it.
Speaker 3 (01:20):
It doesn't fix itself.
Speaker 4 (01:21):
But it also doesn't get fixed by Washington, DC. And
that was one of the frustrations I had during the campaign,
is that President Trump said I'm going to just get
so much housing built. I'm going to fix the whole thing,
and I don't really know what he can do to
do that. And then Kamala Harris's plan was not just
also equally unhelpful, but it was counterproductive because she was
(01:44):
talking about doing something that would make it much worse,
which was subsidizing dawn payments for people, giving people money
to buy a house, which of course would would stimulate
demand without new supply and would be the exact opposite.
Speaker 3 (01:57):
Of what we need.
Speaker 4 (01:58):
And so there's a lot of serious people talking about
it and I don't and I and I think it
needs to be but you know, in a way it's
in the sound company sarcastic, but I'm not there was.
I think the fires are a story about a national
disaster and an absolutely awful human thing. But in the
weeds of it, there was a line or two or
(02:20):
three on Meet the Press from Gavinussum where apparently, we
do now know what needs to be done to build
new housing.
Speaker 3 (02:28):
And I've been saying it for years. But who am I?
Speaker 4 (02:31):
But I heard the liberal governor in the liberal state
of California say.
Speaker 3 (02:34):
It his words, not mine.
Speaker 4 (02:37):
I'm going to ban all of the SIKA regulations, all
of the restrictions for getting permits, all of the environmental
delays and impediments the Coastal Commission. We're going to suspend
all that so people can rebuild quickly.
Speaker 3 (02:51):
You would say this is new information.
Speaker 4 (02:53):
This is new information to me that he is aware
that those are the things that get in the way
of building housing.
Speaker 2 (02:59):
I don't think it's new information for his citizens, who
were probably thinking, like, well, if you knew this was
a solution all along, why'd you wait for me to
lose everything to enact it.
Speaker 3 (03:06):
But that's a big part.
Speaker 2 (03:08):
But there is competing agendas behind all of this. You
know that same governor, by the way, mentioned how he's
already been in contact with leaders in Hawaii and these
are issues of securing property and so that it can't
be bought up by speculators and so that you know,
multi family housing can be built. You know, the left
(03:30):
does have an agenda that wants to get away from
single family living. They'd like us to live in smaller places.
Never leave our neighborhood, shop in our neighborhood, eating our neighborhood,
walk in our neighborhood, so you can not drive.
Speaker 3 (03:41):
And leave our neighborhood.
Speaker 2 (03:42):
Because they want to control every aspect of where you go,
how you get there, and what you drive to get there,
and hopefully tax every aspect of it. That's still behind
and you're talking about in the weeds, that's still a
few layers in the onion underneath this, that that people
want to seize this crisis to achieve different things for
their agenda, not necessarily for the people who are struggling.
(04:04):
That may that arm wrestle may play out too right, well,
it could.
Speaker 4 (04:10):
I believe that the issue about low density and high
density is a market discussion.
Speaker 3 (04:17):
I think that there are.
Speaker 4 (04:20):
Arguments to be made, not environmentally, which is what you
often hear from the left, but just in terms of
communities and whatnot. I personally, but again I say the
word personally because It's the important adverb here. I personally
enjoy a pedestrian lifestyle, and I enjoy my kids knowing
the name of the guy who makes their bagel and
these types of things. And I think help people that
(04:42):
spend thirty to forty five minutes a day in the
car and park in their garage and don't ever talk
to their neighbors, you know, the preferences people have for
suburban versus urban living. This has been going on since
Madison and Jefferson and Hamilton.
Speaker 3 (04:56):
It's not new. What's new is that the Left has a.
Speaker 4 (04:59):
Certain environmental agenda around some of it, but market forces
always play out in the end. It's just not going
to change that there is a demand for some multi
family living and there is a demand for more single
family And I personally don't know why any governor has
an opinion. I do know why different people do. When
I was twenty three years old a m I wanted
(05:20):
an apartment with friends. When I was you know, thirty three,
I might wanted a backyard with my small kids, or
whatever the case may be.
Speaker 3 (05:27):
But I have never understood making an ideological.
Speaker 4 (05:30):
Issue out of personal personal preference of living right.
Speaker 3 (05:34):
Just don't get it.
Speaker 2 (05:35):
David Bnson's Our money was an economist joining us. All right,
so let's cut to the chase here. There's a lot
of optimism with Donald Trump coming in for the economy,
for the border.
Speaker 3 (05:45):
What is your view in terms of housing?
Speaker 2 (05:48):
What can people expect as we make some corrective course measures,
well housing correct with it. What's your forecast on housing
and what you're seeing.
Speaker 4 (06:00):
What's funny is that we've spent most of our adult
lives and people think using the sentence what's our view
on housing? Talking about the prayer that house prices are
going to be going higher.
Speaker 3 (06:09):
The cult from the right and the left has been this.
Speaker 4 (06:13):
It's been really a boomer driven phenomena that a good
housing means high priced housing, and that seems to have
suddenly changed where now I think people are talking about
it more in the context of affordability and more in
the context of adequate supply.
Speaker 3 (06:28):
But again, there is.
Speaker 4 (06:29):
Not much at all related to the Trump two point
zero that has to do with housing. For me, tax policy,
trade policy, immigration, border, and energy.
Speaker 3 (06:39):
These are lower.
Speaker 4 (06:40):
Hanging fruit agenda items in Trump two point zero. Housing
is going to be significantly affected by FED policy, and
it's going to be significantly affected by state and local activity.
Speaker 3 (06:50):
But see local.
Speaker 4 (06:52):
Then all of a sudden, now you're talking about local,
meaning the people in.
Speaker 3 (06:56):
The crowd at city council meetings. These are the worst
culprits in America.
Speaker 4 (07:00):
Then every time they say, I want to go build
a new subdivision, or we want to relax zoning, or
we want to build new this or that, and you
get thirty people to go talk to the city council
meeting about know why we don't need new houses building
and so forth.
Speaker 3 (07:13):
So nimbiism not in my backyard. Ism is a big
problem in liberal.
Speaker 4 (07:17):
Santa Monica, and it's a big problem in conservative suburbs
as well.
Speaker 3 (07:22):
I frankly have no tolerance for it.
Speaker 2 (07:24):
So if you're looking for a housing solution, it's going
to come at the local level, and it's going to
have to do with zonings, regulation, building more, and people
not fighting that progress.
Speaker 3 (07:35):
Kind of like education.
Speaker 2 (07:36):
If you're looking for the solutions to come from Washington,
that's the problem, not the solution. We need to get
closer and closer to the parent, the student, and the teacher.
That's where victories are one and that's probably where the
housing will be one.
Speaker 3 (07:47):
Right that's right.
Speaker 4 (07:49):
The only exception would be where the federal government can
get out of the way life. With education, you know,
I don't have any need for a Department of Education whatsoever.
But yeah, general side could help by just going away altogether.
Speaker 3 (08:04):
But yeah, I think that.
Speaker 4 (08:05):
With housing you have low hanging fruit, state and local
and the states that are most damaged in this regard,
it's even more than city county. It's state, and Sacramento
is a part of the problem in California. The states
that have done well in allowing new housing to get built,
Tennessee being one of them, North Carolina, Texas, Arizona, Florida.
(08:26):
These are obviously states that have generally pretty pro market
approach to the subject.
Speaker 2 (08:32):
David Bonnson from the Bonson Financial Group, as always, it's
a pleasure. We'll talk to you next Thursday or sooner.
If conditions weren't. Have a great day, serve.
Speaker 1 (08:38):
Miss a little, miss a lot, miss a lot, and
we'll miss you. It's your morning show with Michael del
Churno
Previously on Your Morning Show with Michael del Choonho.
Speaker 2 (00:04):
Listen. I'm not a financial expert. I just surround myself
with them. It sure looked like a correction to me,
but huge market gains right before Biden's farewell address?
Speaker 3 (00:15):
Could they be linked?
Speaker 2 (00:16):
We ask our money was an economist David Bonson, who
joins us from New York. Good morning, David, Good morning, Michael.
You know, we often talk about energy and how important
that is to an economy confronting high cost of living
and inflation, which are not necessarily the same thing.
Speaker 3 (00:36):
What about housing.
Speaker 2 (00:38):
That's that's really, you know, and no one's talking about it.
It's kind of coming up now as they're burning down
in California. In fact, I was talking to a colleague
friend of mine, and our heart was just breaking, because
you know who's going to get hurt the most in
this the teachers and the firefighters themselves that own middle
class housing. That's what's going to become impossible, even within
(01:00):
insurance money to rebuild, and they're almost going to be
forced to leave. But you and I have talked so
much about housing, and I wanted to just kind of
revisit it today because it's it's still a central part
of our dilemma, and I don't know that anybody's addressing
it head on as if it's just going to fix itself,
because it won't, will it.
Speaker 3 (01:20):
It doesn't fix itself.
Speaker 4 (01:21):
But it also doesn't get fixed by Washington, DC. And
that was one of the frustrations I had during the campaign,
is that President Trump said I'm going to just get
so much housing built. I'm going to fix the whole thing,
and I don't really know what he can do to
do that. And then Kamala Harris's plan was not just
also equally unhelpful, but it was counterproductive because she was
(01:44):
talking about doing something that would make it much worse,
which was subsidizing dawn payments for people, giving people money
to buy a house, which of course would would stimulate
demand without new supply and would be the exact opposite.
Speaker 3 (01:57):
Of what we need.
Speaker 4 (01:58):
And so there's a lot of serious people talking about
it and I don't and I and I think it
needs to be but you know, in a way it's
in the sound company sarcastic, but I'm not there was.
I think the fires are a story about a national
disaster and an absolutely awful human thing. But in the
weeds of it, there was a line or two or
(02:20):
three on Meet the Press from Gavinussum where apparently, we
do now know what needs to be done to build
new housing.
Speaker 3 (02:28):
And I've been saying it for years. But who am I?
Speaker 4 (02:31):
But I heard the liberal governor in the liberal state
of California say.
Speaker 3 (02:34):
It his words, not mine.
Speaker 4 (02:37):
I'm going to ban all of the SIKA regulations, all
of the restrictions for getting permits, all of the environmental
delays and impediments the Coastal Commission. We're going to suspend
all that so people can rebuild quickly.
Speaker 3 (02:51):
You would say this is new information.
Speaker 4 (02:53):
This is new information to me that he is aware
that those are the things that get in the way
of building housing.
Speaker 2 (02:59):
I don't think it's new information for his citizens, who
were probably thinking, like, well, if you knew this was
a solution all along, why'd you wait for me to
lose everything to enact it.
Speaker 3 (03:06):
But that's a big part.
Speaker 2 (03:08):
But there is competing agendas behind all of this. You
know that same governor, by the way, mentioned how he's
already been in contact with leaders in Hawaii and these
are issues of securing property and so that it can't
be bought up by speculators and so that you know,
multi family housing can be built. You know, the left
(03:30):
does have an agenda that wants to get away from
single family living. They'd like us to live in smaller places.
Never leave our neighborhood, shop in our neighborhood, eating our neighborhood,
walk in our neighborhood, so you can not drive.
Speaker 3 (03:41):
And leave our neighborhood.
Speaker 2 (03:42):
Because they want to control every aspect of where you go,
how you get there, and what you drive to get there,
and hopefully tax every aspect of it. That's still behind
and you're talking about in the weeds, that's still a
few layers in the onion underneath this, that that people
want to seize this crisis to achieve different things for
their agenda, not necessarily for the people who are struggling.
(04:04):
That may that arm wrestle may play out too right, well,
it could.
Speaker 4 (04:10):
I believe that the issue about low density and high
density is a market discussion.
Speaker 3 (04:17):
I think that there are.
Speaker 4 (04:20):
Arguments to be made, not environmentally, which is what you
often hear from the left, but just in terms of
communities and whatnot. I personally, but again I say the
word personally because It's the important adverb here. I personally
enjoy a pedestrian lifestyle, and I enjoy my kids knowing
the name of the guy who makes their bagel and
these types of things. And I think help people that
(04:42):
spend thirty to forty five minutes a day in the
car and park in their garage and don't ever talk
to their neighbors, you know, the preferences people have for
suburban versus urban living. This has been going on since
Madison and Jefferson and Hamilton.
Speaker 3 (04:56):
It's not new. What's new is that the Left has a.
Speaker 4 (04:59):
Certain environmental agenda around some of it, but market forces
always play out in the end. It's just not going
to change that there is a demand for some multi
family living and there is a demand for more single
family And I personally don't know why any governor has
an opinion. I do know why different people do. When
I was twenty three years old a m I wanted
(05:20):
an apartment with friends. When I was you know, thirty three,
I might wanted a backyard with my small kids, or
whatever the case may be.
Speaker 3 (05:27):
But I have never understood making an ideological.
Speaker 4 (05:30):
Issue out of personal personal preference of living right.
Speaker 3 (05:34):
Just don't get it.
Speaker 2 (05:35):
David Bnson's Our money was an economist joining us. All right,
so let's cut to the chase here. There's a lot
of optimism with Donald Trump coming in for the economy,
for the border.
Speaker 3 (05:45):
What is your view in terms of housing?
Speaker 2 (05:48):
What can people expect as we make some corrective course measures,
well housing correct with it. What's your forecast on housing
and what you're seeing.
Speaker 4 (06:00):
What's funny is that we've spent most of our adult
lives and people think using the sentence what's our view
on housing? Talking about the prayer that house prices are
going to be going higher.
Speaker 3 (06:09):
The cult from the right and the left has been this.
Speaker 4 (06:13):
It's been really a boomer driven phenomena that a good
housing means high priced housing, and that seems to have
suddenly changed where now I think people are talking about
it more in the context of affordability and more in
the context of adequate supply.
Speaker 3 (06:28):
But again, there is.
Speaker 4 (06:29):
Not much at all related to the Trump two point
zero that has to do with housing. For me, tax policy,
trade policy, immigration, border, and energy.
Speaker 3 (06:39):
These are lower.
Speaker 4 (06:40):
Hanging fruit agenda items in Trump two point zero. Housing
is going to be significantly affected by FED policy, and
it's going to be significantly affected by state and local activity.
Speaker 3 (06:50):
But see local.
Speaker 4 (06:52):
Then all of a sudden, now you're talking about local,
meaning the people in.
Speaker 3 (06:56):
The crowd at city council meetings. These are the worst
culprits in America.
Speaker 4 (07:00):
Then every time they say, I want to go build
a new subdivision, or we want to relax zoning, or
we want to build new this or that, and you
get thirty people to go talk to the city council
meeting about know why we don't need new houses building
and so forth.
Speaker 3 (07:13):
So nimbiism not in my backyard. Ism is a big
problem in liberal.
Speaker 4 (07:17):
Santa Monica, and it's a big problem in conservative suburbs
as well.
Speaker 3 (07:22):
I frankly have no tolerance for it.
Speaker 2 (07:24):
So if you're looking for a housing solution, it's going
to come at the local level, and it's going to
have to do with zonings, regulation, building more, and people
not fighting that progress.
Speaker 3 (07:35):
Kind of like education.
Speaker 2 (07:36):
If you're looking for the solutions to come from Washington,
that's the problem, not the solution. We need to get
closer and closer to the parent, the student, and the teacher.
That's where victories are one and that's probably where the
housing will be one.
Speaker 3 (07:47):
Right that's right.
Speaker 4 (07:49):
The only exception would be where the federal government can
get out of the way life. With education, you know,
I don't have any need for a Department of Education whatsoever.
But yeah, general side could help by just going away altogether.
Speaker 3 (08:04):
But yeah, I think that.
Speaker 4 (08:05):
With housing you have low hanging fruit, state and local
and the states that are most damaged in this regard,
it's even more than city county. It's state, and Sacramento
is a part of the problem in California. The states
that have done well in allowing new housing to get built,
Tennessee being one of them, North Carolina, Texas, Arizona, Florida.
(08:26):
These are obviously states that have generally pretty pro market
approach to the subject.
Speaker 2 (08:32):
David Bonnson from the Bonson Financial Group, as always, it's
a pleasure. We'll talk to you next Thursday or sooner.
If conditions weren't. Have a great day, serve.
Speaker 1 (08:38):
Miss a little, miss a lot, miss a lot, and
we'll miss you. It's your morning show with Michael del
Churno
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