June 4, 2024 • 21 mins
KFI's own Tech Reporter Rich DeMuro joins The Bill Handel Show for 'Tech Tuesday'! Rich talks about Instagram testing unskippable ads, E-Trade considers kicking meme stock king Roaring Kitty off their platform, Spotify is raising their prices, and why ChatGPT went down. They bought homes with the intention to refinance… now they’re stuck.
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Episode Transcript
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(00:00):
You're listening to Bill Handle on demandfrom kf I AM six forty m Ceenanic
Summit. You are listening to theBill Handle Show, and yes, you
are Handle here on a Tuesday morning, June four. As we continue with
(00:21):
the show coming up at a fiftyooh, is that going to be a
fun topic? And it's a legalquestion that I'm going to share with you,
and it's very complicated and I'm gonnaunwank it. Actually it's not.
It's just fun. But now itis time for Tech Tuesday with Rich Demurrow.
(00:42):
Rich is KTLA's tech reporter. Heis host of Rich on Tech here
on KFI Saturday's eleven to two pmor eleven am to two and at Instagram,
at rich on tech website, richon tech dot TV. Okay,
did it all? I did theentire introduction, Rich, Hey, good
morning to you, Bill. Oh, hold on, I got to put
(01:03):
my mic in front of me.Good morning to you. You start to
sound like me. I'm the onlyone allowed to do that sort of thing.
Okay, everybody else has to beprofessional about it now again. Okay,
thank you. We're moving into theworld of advertising and unskippable ads.
There there's a show I love towatch inside the factory and I don't know
(01:26):
what where, which I forget ison Hulu or whatever, and you can't
get away from the ads, andyou cannot go through the ads and you
go come on. So I'm payingnow for streaming and I have to watch
the ads please, And unfortunately that'sa new model, isn't it. Oh,
(01:48):
we're definitely. Yeah, it's it'skind of ironic that we're going back
to the beginning. You know,TV was you know, obviously like over
the air broadcast stuff is all supportedby advertising, TV radio, whatever,
And then we get the Internet.People get Netflix, they get very used
to a premium subscription, but itwas very cheap back in the day,
and that's the big difference. Nowpeople don't want to pay as much anymore,
(02:10):
so they're going these streaming services areembracing the ads, and we're not
even talking about that. That's justhappening in general. Like the fastest growing
TV streaming services are called fast freeads supported television, and they're all doing
it. But we're talking about Instagramnow they're getting in on it. So
Instagram is testing this new unskippable ad, So you are scrolling through your feed,
(02:35):
and all of a sudden, itjust locks up, and it's like
no, no, no, youcannot go any further until you watch this
ad break And there's a little countdown, just like you see on Hulu where
it says five four three two one, or just like you see on YouTube
for free, and you know,Meta says, look, we need to
drive value for advertisers. We'll seewhat happens. Yeah, I've always wondered
(02:55):
why you would buy television. Youknow, for example, I want national
news. It's one of my newsnews sources that I guess. So I'll
watch ABC or NBC and I'll recordthem and start ten minutes or fifteen minutes
after on the air, and I'mable to zip through the commercials and it's
(03:16):
a great deal. And by theway, I'm the demo for those advertisers,
you know, Viagra and all ofthose crazy drugs say your name,
Yeah, no they do. Andand I'm by the way, I maybe
well I'm not even joking. Ireally am the demo pharmaceuticals because you know,
I've had hard issues, I meanall of it, and it is
(03:39):
and I just zip right through theadvertisers getting screwed and the advertisers paying for
me to watch, And so Iguess they're getting smart and saying that's those
days are done. Yeah. Well, it's also fascinating to me. I
remember when Tvo came out. RememberTiVo was like the first DVR, and
people were said, Oh, that'sit. It's the end of every thing.
(04:00):
It's the end of news, it'sthe end of sports, it's the
end of programming. But what happenedwas number one news and sports. Unlike
what you just said, a lotof people actually like to watch news live
sports obviously. I mean, yes, there's some diehards that will watch the
game after the fact that most peoplewant to be watching their sports games live.
But the other side of it is, if you've noticed, the DVR
(04:23):
has largely gone out of fashion,a lot of these broadcasters no longer embrace
the DVR. They're all embracing ondemand video because they control that. Whereas
the DVR, like what you're saying, you record a show, they can't
control you skipping through those ads,whereas with a on demand situation, they
can control exactly what's happening. Andwe're even seeing pause ads. Have you
(04:45):
seen one of those yet bill whereyou pause the show and an ad pops
up. This happened to me onI think it was HBO or some one
of these services, and all ofa sudden it was like a Pizza Hut
ad or something, and I waslike, WHOA, that's brilliant because you
can't miss them you're on pause.It just it drives you nuts. And
they're still making a lot of moneywith the data mining, selling off the
data and the ads that people dowatch, and they're being able to geo
(05:13):
target and I mean they're doing great, aren't they. And there's just another
way to make money that Hey,someone came up with the idea and go
hey, let's go with this one. Yeah. Well it's again go back
to the quote from Meta that candrive value for advertisers. There is no
term customer or user in that sentencein any way, shape or form.
(05:34):
Look, do these big tech companiescare about the end user? Of course,
only in the fact that they wantyou to be there, They want
your eyeballs. And yes, thereare many ways for them to target you
and to get your to get youin, but they want to continue to
drive more value. When a companyis publicly traded, what do they want
to do. They want to makemore money for their shareholders. And Instagram
(05:54):
and Facebook and all these things aredoing great, but they could be doing
better, just like we're seeing withthe streaming services. They continue to raise
prices. These companies want to makemore and more money quarter in, quarter
out. Yeah, and we've gottento the point now where you're right.
It used to be cheap. Imean Netflix, no commercials, You would
get a lot of a lot ofproduct. And now I mean I think
(06:17):
I pay what seventeen eighteen dollars amonth for Netflix? Oh yeah, if
not more, I mean I payI think twenty three for Netflix. I
think, yeah, maybe I'm doingthat. I get the premier service,
but it's just bundled with everything,and I don't even want to look at
the bill. I just do autopay and leave me alone, because I
(06:38):
don't want to look at an eighthundred dollars or four hundred dollars a month
bill just for watching TV. Right. And the other thing is that the
price hikes have come at a fasterclip. So it used to be you
know, Netflix for the first coupleof years. I mean I think it
was like eight years before they raisedthe price and all of a sudden it
was like, okay, we gotto do this just to stay you know,
(06:59):
we're doing all this original programming andnow it's like clockwork all these services.
So if you do the math,they're just going to be you know,
eighty bucks a month by the youknow, in ten more years or
something. Yeah, just terrific.And now this is the story I want
to explore, and that is chatGPT is down and what is let's let's
(07:20):
talk about that because AI is everywherenow and oh boy, you know how
badly are we screwed when this happens. Yeah, I think the entire world's
productivity is gone downhill at this pointbecause I don't know about you, but
I'm not able to use it asof right now. And if you look
(07:44):
at the status so all of thesetech companies, by the way, bill,
they have like a status page.A lot of them do, like
Apple has one, Google has one, you know, open Ai has one.
And so this is there's a coupleof ways when you when you think
something is down, like if it'snot working, there's a couple of websites.
Number one is down detector. Soif you go to that website,
the number one thing on there rightnow is open ai, and there's another
(08:05):
website, like, if something's notworking on your computer, you can go
to this website called down for everyoneor just me. So let's say you're
having problems with like accessing open ai. So you can type in chat GPT
and it will say, yes,we are detecting problems with chat GBT that
began one hour ago, and soyou can know, like are you crazy,
(08:26):
Like is it just your computer oris it everyone that says is happening
too? And so that's those aretwo helpful websites. But open ai is
having issues with chat GBT. Icannot access it. It started earlier this
morning. This company has over onehundred million weekly active users and they've had
a couple of outages in the past. But you know, this is either
(08:50):
growing pains or they did something withtheir you know system, they tried an
upgrade. They are doing some majorupgrades to chat GBT that they've announced,
so maybe that's coming soon and that'swhat caused the outage. But of course
people also wonder, is it,you know, some sort of hack.
I don't think that's the case here, all right, So this morning I
did a story on AI being usedby English teachers to grade papers, and
(09:15):
I thought that was pretty fascinating.It makes a lot of sense. What
do you use What do you useAI for? So I use AI to
summarize any interview that I do,so it will pick out the main points
and kind of refresh my memory.Also handy for coming up. You know,
I always ask people to say theirname, company entitle, so that
will also give me a list ofthat, although it usually gets the spelling
(09:37):
of their name and company entitle wrong. If it's not very clear, right,
I it's not John Smith, it'snot going to get it right.
And then let's see what. I'llsummarizing news articles. So if there's a
news article that I'm reading, Idon't want to read the whole thing.
I can summarize it. Also toedit for content and clarity. So if
I write something, I will factcheck it using goog gouls Gemini because it
(10:01):
has access to all the facts inthe world in a real time manner.
So I will throw in a scriptthat I write and I'll say, hey,
fact check this for me, andit'll be like, you know,
you use this word and that's notvery clear or something like that. So
those are a couple of the waysthat I use it. And then obviously
the brainstorm, you know, comingup with ideas, coming up with places
to go, you know, whereshould I go in New York City.
(10:22):
I mean, there's just one billthat I mentioned on my radio show people
got up in arms about. Iwill take a picture of a menu at
a restaurant and I will upload itto CHATCHYBT and say, tell me what's
interesting on this menu, and itwill do that, and it will it
will figure it out, not alwayswhat I want to order, but it
will fascinating that I don't even understand. I mean, what is interesting about
(10:45):
the difference in a cheeseburger and aburger or adding avocado? I don't quite
understand. Well, you just nailedit. That's the thing. It's like,
it'll you know it. I mean, look, I don't know what
the magic sauce is behind CHATCHYBT,but like if you're thinking about a burger
versus you know, the crew toI don't know what these things are called.
IM not a fancy eater, butyou know what I mean, like
all these fancy dishes, It'll belike, well, you know, this
(11:07):
dish is renowned for its you know, palatability or I don't know it just
it will identify interesting things on themenu. It'll say, these are interesting
flavors that are intersected. You know, you can also ask for what the
healthiest thing is on a menu.Okay, to see that, I mean,
how we get away from that instantly? But that makes sense? Yeah,
and by the way, by theway, and I get confused when
(11:31):
it says with avocado at a dollar. That just destroys me in terms of
trying to understand making fun of youRich a dollar. Bill, I'm making
fun of you because you can't getavocado added for a dollar anywhere in this
town. Yeah. Well I'm notan avocado eater on my burgers. But
okay, thank you for making funof me. Now, Rich KTLA's tech
(11:52):
reporter and right here at KFI richon Tech. That's the show Saturday mornings
eleven am. To you and onInstagram at rich on Tech, and the
website is rich on Tech dot tv. You know, I hore you constantly
on this show. You know that, Rich and I do appreciate it.
And believe me, people email meand they say I love you on handle.
(12:13):
So the love is there. BillI'm telling you a little MDMA.
Okay, uh, thanks never mind, rich all right, thank you.
We'll talk again next week. Seethat. Now. I'm hoping you guys
listen to this show because I dida story before on MDMA. God,
I love you guys so much.All right. A phone call that I
(12:35):
got I received a handle on thelaw just before the real estate bubble burst
and then into the Great Recession,and this for us from a woman who
wanted to sue the developer of acondo building in Las Vegas. It happened
to be Trump Tower, by theway, although that's incidental to the story.
(12:58):
That's just interesting. And she boughta condo and it was a million
dollar condo and she was getting suedbecause she couldn't make the payment. And
I said, when did you buyit? She said, a month ago?
(13:20):
And how many payments did you miss? She goes, well, I
missed my first one. So letme get this right. You bought the
condo for a million dollars and youcouldn't make the first payment. Do I
have that right? Yeah? Okay, And so let me ask you how
(13:46):
much money did you put down onit? She said nothing. They sold
it to me without any down payment, a million dollars no down payment.
And then I asked her, Okay, let's go on the other side of
this question, in terms of youbeing able to afford a million dollar condo
(14:11):
with a million dollar mortgage, andthe interest rates I think at that time
may have been five six percent,So a million dollar mortgage is pretty healthy.
It's the eight thousand dollar range orseventy five hundred dollar range, something
along those lines. And I said, how much money do you make?
Yeah? Just I mean, obviouslyyou had to qualify, she said.
(14:33):
And I go, where do youwork? By the way, she says,
I work at a Starbucks? AndI said, okay, what do
you make? And I think inthose days it was twelve or thirteen dollars
an hour, because it's a wholebunch of years ago. And I said,
okay, so you make thirteen dollarsan hour and you bought a million
dollar condo. And hang on aminute. Something doesn't work, And what
(14:58):
do you want to do. Iwant to sue the developer for selling it
to me knowing I couldn't afford tomake the payments. And I said,
you know, that's not the worstlawsuit in the world. Because you know,
two seconds of due diligence would sayyou can't afford it, and we
(15:20):
can't sell it to you. Butin those days, say, it was
going up so quickly the value thatthey didn't even care. It was,
for example, stated income, whichmeans what's your income. Whatever you put
down on the paper, they wouldnever check. So I'm assuming she put
down a lot more than thirteen dollarsan hour. And it's not even the
(15:43):
developer's fault. What it is isthe lender's fault. How can you lend
the money on this? This iscrazy? Normally that would be a decent
lawsuit. But you're as much atfault you lied, So where are you
gonna go with that? But thepoint is the reason she bought it and
mister first payment, and this ismonths later when they're foreclosing, is the
(16:07):
property. The property values were climbingso quickly, and I'm talking about just
it was month by month. Thiswas just the real before the real estate
bubble burst. People were buying propertiesand flipping them next month for pretty substantial
(16:30):
profits. And she said, ohI was going to do that. She
wasn't alone, no ability to payoff that mortgage, and the lenders didn't
care because they were making fortunes onthat there was no due diligence. I
mean, it got crazy. Now. I don't think those days are going
to happen again because the requirements aremuch stricter. But I'll tell you what
(16:52):
the analogy, as the comparison ishere, and that is a lot of
people have bought homes at high interestrates, thinking that those are temporary,
the interest rates of six and ahalf seven percent, and all of a
sudden, the home mortgage payments atseven percent are a whole lot higher than
(17:15):
they are at three percent. Now, in order to buy a home at
seven percent, you've got to qualify, so there's a difference there. The
problem is the amount of money you'renow paying on those mortgage payments are sucking
up so much of your income.Lifestyles change and all of a sudden,
(17:40):
based on the fact that you boughtthis home and you're reaching for this house.
And I'm a big believer in reaching, especially if you buy a fixed
rate a home at a fixed ratemortgage, your income is going to rise.
Hopefully, it's just going to bea bit a great deal. Right
now, you suck it up andyou're strangled with it. Ten years from
(18:03):
now, it's oh, that's affordable. Twenty years from now, it becomes
a bargain because you have fixed rateloan. So always reach. I always
have, and I've always done wellby it. So you now reach because
interest rates are so high, andyou're going that's only temporary, right,
and then the interest rate's going todrop and you're not going to be you're
(18:26):
not going to be working three jobsto pay that mortgage payment. Well,
guess what, guys, doesn't looklike mortgage rates are going to drop anytime
soon. The days of three percentmoney are gone, gone, and the
value of homes if you bought itthree percent money, have increased dramatically.
(18:48):
Neil, you are a prime example. I remember when you bought your house,
and man, it was such areach for you. I mean it
was I remember those days, saygold, gold, gulp. It's fifteen
years ago or so. Now,I guess something like that. And I
had done the math and I wassuper conservative. I said nothing above four
(19:11):
hundred thousand, nothing. So wespent all of our six months looking around
and couldn't find anything. We endedup paying seven seventy. Yeah, I
remember, I remember, and youdouble and you were going around scared to
death and I've never thought about itsince, yeah, never knowing of us
(19:33):
has increased in value dramatically. Andthe mortgage payments now are well, uh,
it's we've refinanced too multi yeah,because you refinanced with percent money,
with three percent money, Oh no, I've got under three percent of YEA.
And then the secret of refinance,and I've always said this, if
you're going to refinance, don't takemoney out, just refinance the loan at
(19:59):
the same level. If you havefifteen years left, you get a fifteen
year mortgage. What people do,mistakenly is they refinance and it goes back
to a thirty year mortgage. Althoughat three percent it doesn't matter. You
can have one hundred year mortgage andit becomes basically free money. So that's
what people getting burned. So atleast no one's doing that anymore. They're
(20:22):
not buying homes and the hopes aregoing to refinance and the people that got
stuck. But here's the deal.Bill. Let's say it's what is it
sick something right now? Yeah,I know it's close to seven. I
thought it went down just a littlebit recently. So if you're going to
buy a house, you gotta eatit. You got to say, Okay,
I'm gonna do it at seven andfingers crossed, it goes down and
(20:45):
I refinance. But if you don'tand you want to buy a house,
then you're gonna buy it at almostsuffen unless you're buying a house with the
intention of refinancing it and you struggleso much now and then you find out
you're going to keep on struggling andthe intention was to get it to a
reasonable price by refinancing, Those daysare gone. That's the point. So
(21:07):
that's the comparison to what happened justprior to the bubble and the lady that
called me who bought a million dollarproperty on a minimum wage job. All
right, guys, we're done.KFI AM six forty live everywhere on the
iHeartRadio app. You've been listening tothe Bill Handle Show. Catch My Show
Monday through Friday six am to nineam, and anytime on demand on the
(21:29):
iHeartRadio app.
You're listening to Bill Handle on demandfrom kf I AM six forty m Ceenanic
Summit. You are listening to theBill Handle Show, and yes, you
are Handle here on a Tuesday morning, June four. As we continue with
(00:21):
the show coming up at a fiftyooh, is that going to be a
fun topic? And it's a legalquestion that I'm going to share with you,
and it's very complicated and I'm gonnaunwank it. Actually it's not.
It's just fun. But now itis time for Tech Tuesday with Rich Demurrow.
(00:42):
Rich is KTLA's tech reporter. Heis host of Rich on Tech here
on KFI Saturday's eleven to two pmor eleven am to two and at Instagram,
at rich on tech website, richon tech dot TV. Okay,
did it all? I did theentire introduction, Rich, Hey, good
morning to you, Bill. Oh, hold on, I got to put
(01:03):
my mic in front of me.Good morning to you. You start to
sound like me. I'm the onlyone allowed to do that sort of thing.
Okay, everybody else has to beprofessional about it now again. Okay,
thank you. We're moving into theworld of advertising and unskippable ads.
There there's a show I love towatch inside the factory and I don't know
(01:26):
what where, which I forget ison Hulu or whatever, and you can't
get away from the ads, andyou cannot go through the ads and you
go come on. So I'm payingnow for streaming and I have to watch
the ads please, And unfortunately that'sa new model, isn't it. Oh,
(01:48):
we're definitely. Yeah, it's it'skind of ironic that we're going back
to the beginning. You know,TV was you know, obviously like over
the air broadcast stuff is all supportedby advertising, TV radio, whatever,
And then we get the Internet.People get Netflix, they get very used
to a premium subscription, but itwas very cheap back in the day,
and that's the big difference. Nowpeople don't want to pay as much anymore,
(02:10):
so they're going these streaming services areembracing the ads, and we're not
even talking about that. That's justhappening in general. Like the fastest growing
TV streaming services are called fast freeads supported television, and they're all doing
it. But we're talking about Instagramnow they're getting in on it. So
Instagram is testing this new unskippable ad, So you are scrolling through your feed,
(02:35):
and all of a sudden, itjust locks up, and it's like
no, no, no, youcannot go any further until you watch this
ad break And there's a little countdown, just like you see on Hulu where
it says five four three two one, or just like you see on YouTube
for free, and you know,Meta says, look, we need to
drive value for advertisers. We'll seewhat happens. Yeah, I've always wondered
(02:55):
why you would buy television. Youknow, for example, I want national
news. It's one of my newsnews sources that I guess. So I'll
watch ABC or NBC and I'll recordthem and start ten minutes or fifteen minutes
after on the air, and I'mable to zip through the commercials and it's
(03:16):
a great deal. And by theway, I'm the demo for those advertisers,
you know, Viagra and all ofthose crazy drugs say your name,
Yeah, no they do. Andand I'm by the way, I maybe
well I'm not even joking. Ireally am the demo pharmaceuticals because you know,
I've had hard issues, I meanall of it, and it is
(03:39):
and I just zip right through theadvertisers getting screwed and the advertisers paying for
me to watch, And so Iguess they're getting smart and saying that's those
days are done. Yeah. Well, it's also fascinating to me. I
remember when Tvo came out. RememberTiVo was like the first DVR, and
people were said, Oh, that'sit. It's the end of every thing.
(04:00):
It's the end of news, it'sthe end of sports, it's the
end of programming. But what happenedwas number one news and sports. Unlike
what you just said, a lotof people actually like to watch news live
sports obviously. I mean, yes, there's some diehards that will watch the
game after the fact that most peoplewant to be watching their sports games live.
But the other side of it is, if you've noticed, the DVR
(04:23):
has largely gone out of fashion,a lot of these broadcasters no longer embrace
the DVR. They're all embracing ondemand video because they control that. Whereas
the DVR, like what you're saying, you record a show, they can't
control you skipping through those ads,whereas with a on demand situation, they
can control exactly what's happening. Andwe're even seeing pause ads. Have you
(04:45):
seen one of those yet bill whereyou pause the show and an ad pops
up. This happened to me onI think it was HBO or some one
of these services, and all ofa sudden it was like a Pizza Hut
ad or something, and I waslike, WHOA, that's brilliant because you
can't miss them you're on pause.It just it drives you nuts. And
they're still making a lot of moneywith the data mining, selling off the
data and the ads that people dowatch, and they're being able to geo
(05:13):
target and I mean they're doing great, aren't they. And there's just another
way to make money that Hey,someone came up with the idea and go
hey, let's go with this one. Yeah. Well it's again go back
to the quote from Meta that candrive value for advertisers. There is no
term customer or user in that sentencein any way, shape or form.
(05:34):
Look, do these big tech companiescare about the end user? Of course,
only in the fact that they wantyou to be there, They want
your eyeballs. And yes, thereare many ways for them to target you
and to get your to get youin, but they want to continue to
drive more value. When a companyis publicly traded, what do they want
to do. They want to makemore money for their shareholders. And Instagram
(05:54):
and Facebook and all these things aredoing great, but they could be doing
better, just like we're seeing withthe streaming services. They continue to raise
prices. These companies want to makemore and more money quarter in, quarter
out. Yeah, and we've gottento the point now where you're right.
It used to be cheap. Imean Netflix, no commercials, You would
get a lot of a lot ofproduct. And now I mean I think
(06:17):
I pay what seventeen eighteen dollars amonth for Netflix? Oh yeah, if
not more, I mean I payI think twenty three for Netflix. I
think, yeah, maybe I'm doingthat. I get the premier service,
but it's just bundled with everything,and I don't even want to look at
the bill. I just do autopay and leave me alone, because I
(06:38):
don't want to look at an eighthundred dollars or four hundred dollars a month
bill just for watching TV. Right. And the other thing is that the
price hikes have come at a fasterclip. So it used to be you
know, Netflix for the first coupleof years. I mean I think it
was like eight years before they raisedthe price and all of a sudden it
was like, okay, we gotto do this just to stay you know,
(06:59):
we're doing all this original programming andnow it's like clockwork all these services.
So if you do the math,they're just going to be you know,
eighty bucks a month by the youknow, in ten more years or
something. Yeah, just terrific.And now this is the story I want
to explore, and that is chatGPT is down and what is let's let's
(07:20):
talk about that because AI is everywherenow and oh boy, you know how
badly are we screwed when this happens. Yeah, I think the entire world's
productivity is gone downhill at this pointbecause I don't know about you, but
I'm not able to use it asof right now. And if you look
(07:44):
at the status so all of thesetech companies, by the way, bill,
they have like a status page.A lot of them do, like
Apple has one, Google has one, you know, open Ai has one.
And so this is there's a coupleof ways when you when you think
something is down, like if it'snot working, there's a couple of websites.
Number one is down detector. Soif you go to that website,
the number one thing on there rightnow is open ai, and there's another
(08:05):
website, like, if something's notworking on your computer, you can go
to this website called down for everyoneor just me. So let's say you're
having problems with like accessing open ai. So you can type in chat GPT
and it will say, yes,we are detecting problems with chat GBT that
began one hour ago, and soyou can know, like are you crazy,
(08:26):
Like is it just your computer oris it everyone that says is happening
too? And so that's those aretwo helpful websites. But open ai is
having issues with chat GBT. Icannot access it. It started earlier this
morning. This company has over onehundred million weekly active users and they've had
a couple of outages in the past. But you know, this is either
(08:50):
growing pains or they did something withtheir you know system, they tried an
upgrade. They are doing some majorupgrades to chat GBT that they've announced,
so maybe that's coming soon and that'swhat caused the outage. But of course
people also wonder, is it,you know, some sort of hack.
I don't think that's the case here, all right, So this morning I
did a story on AI being usedby English teachers to grade papers, and
(09:15):
I thought that was pretty fascinating.It makes a lot of sense. What
do you use What do you useAI for? So I use AI to
summarize any interview that I do,so it will pick out the main points
and kind of refresh my memory.Also handy for coming up. You know,
I always ask people to say theirname, company entitle, so that
will also give me a list ofthat, although it usually gets the spelling
(09:37):
of their name and company entitle wrong. If it's not very clear, right,
I it's not John Smith, it'snot going to get it right.
And then let's see what. I'llsummarizing news articles. So if there's a
news article that I'm reading, Idon't want to read the whole thing.
I can summarize it. Also toedit for content and clarity. So if
I write something, I will factcheck it using goog gouls Gemini because it
(10:01):
has access to all the facts inthe world in a real time manner.
So I will throw in a scriptthat I write and I'll say, hey,
fact check this for me, andit'll be like, you know,
you use this word and that's notvery clear or something like that. So
those are a couple of the waysthat I use it. And then obviously
the brainstorm, you know, comingup with ideas, coming up with places
to go, you know, whereshould I go in New York City.
(10:22):
I mean, there's just one billthat I mentioned on my radio show people
got up in arms about. Iwill take a picture of a menu at
a restaurant and I will upload itto CHATCHYBT and say, tell me what's
interesting on this menu, and itwill do that, and it will it
will figure it out, not alwayswhat I want to order, but it
will fascinating that I don't even understand. I mean, what is interesting about
(10:45):
the difference in a cheeseburger and aburger or adding avocado? I don't quite
understand. Well, you just nailedit. That's the thing. It's like,
it'll you know it. I mean, look, I don't know what
the magic sauce is behind CHATCHYBT,but like if you're thinking about a burger
versus you know, the crew toI don't know what these things are called.
IM not a fancy eater, butyou know what I mean, like
all these fancy dishes, It'll belike, well, you know, this
(11:07):
dish is renowned for its you know, palatability or I don't know it just
it will identify interesting things on themenu. It'll say, these are interesting
flavors that are intersected. You know, you can also ask for what the
healthiest thing is on a menu.Okay, to see that, I mean,
how we get away from that instantly? But that makes sense? Yeah,
and by the way, by theway, and I get confused when
(11:31):
it says with avocado at a dollar. That just destroys me in terms of
trying to understand making fun of youRich a dollar. Bill, I'm making
fun of you because you can't getavocado added for a dollar anywhere in this
town. Yeah. Well I'm notan avocado eater on my burgers. But
okay, thank you for making funof me. Now, Rich KTLA's tech
(11:52):
reporter and right here at KFI richon Tech. That's the show Saturday mornings
eleven am. To you and onInstagram at rich on Tech, and the
website is rich on Tech dot tv. You know, I hore you constantly
on this show. You know that, Rich and I do appreciate it.
And believe me, people email meand they say I love you on handle.
(12:13):
So the love is there. BillI'm telling you a little MDMA.
Okay, uh, thanks never mind, rich all right, thank you.
We'll talk again next week. Seethat. Now. I'm hoping you guys
listen to this show because I dida story before on MDMA. God,
I love you guys so much.All right. A phone call that I
(12:35):
got I received a handle on thelaw just before the real estate bubble burst
and then into the Great Recession,and this for us from a woman who
wanted to sue the developer of acondo building in Las Vegas. It happened
to be Trump Tower, by theway, although that's incidental to the story.
(12:58):
That's just interesting. And she boughta condo and it was a million
dollar condo and she was getting suedbecause she couldn't make the payment. And
I said, when did you buyit? She said, a month ago?
(13:20):
And how many payments did you miss? She goes, well, I
missed my first one. So letme get this right. You bought the
condo for a million dollars and youcouldn't make the first payment. Do I
have that right? Yeah? Okay, And so let me ask you how
(13:46):
much money did you put down onit? She said nothing. They sold
it to me without any down payment, a million dollars no down payment.
And then I asked her, Okay, let's go on the other side of
this question, in terms of youbeing able to afford a million dollar condo
(14:11):
with a million dollar mortgage, andthe interest rates I think at that time
may have been five six percent,So a million dollar mortgage is pretty healthy.
It's the eight thousand dollar range orseventy five hundred dollar range, something
along those lines. And I said, how much money do you make?
Yeah? Just I mean, obviouslyyou had to qualify, she said.
(14:33):
And I go, where do youwork? By the way, she says,
I work at a Starbucks? AndI said, okay, what do
you make? And I think inthose days it was twelve or thirteen dollars
an hour, because it's a wholebunch of years ago. And I said,
okay, so you make thirteen dollarsan hour and you bought a million
dollar condo. And hang on aminute. Something doesn't work, And what
(14:58):
do you want to do. Iwant to sue the developer for selling it
to me knowing I couldn't afford tomake the payments. And I said,
you know, that's not the worstlawsuit in the world. Because you know,
two seconds of due diligence would sayyou can't afford it, and we
(15:20):
can't sell it to you. Butin those days, say, it was
going up so quickly the value thatthey didn't even care. It was,
for example, stated income, whichmeans what's your income. Whatever you put
down on the paper, they wouldnever check. So I'm assuming she put
down a lot more than thirteen dollarsan hour. And it's not even the
(15:43):
developer's fault. What it is isthe lender's fault. How can you lend
the money on this? This iscrazy? Normally that would be a decent
lawsuit. But you're as much atfault you lied, So where are you
gonna go with that? But thepoint is the reason she bought it and
mister first payment, and this ismonths later when they're foreclosing, is the
(16:07):
property. The property values were climbingso quickly, and I'm talking about just
it was month by month. Thiswas just the real before the real estate
bubble burst. People were buying propertiesand flipping them next month for pretty substantial
(16:30):
profits. And she said, ohI was going to do that. She
wasn't alone, no ability to payoff that mortgage, and the lenders didn't
care because they were making fortunes onthat there was no due diligence. I
mean, it got crazy. Now. I don't think those days are going
to happen again because the requirements aremuch stricter. But I'll tell you what
(16:52):
the analogy, as the comparison ishere, and that is a lot of
people have bought homes at high interestrates, thinking that those are temporary,
the interest rates of six and ahalf seven percent, and all of a
sudden, the home mortgage payments atseven percent are a whole lot higher than
(17:15):
they are at three percent. Now, in order to buy a home at
seven percent, you've got to qualify, so there's a difference there. The
problem is the amount of money you'renow paying on those mortgage payments are sucking
up so much of your income.Lifestyles change and all of a sudden,
(17:40):
based on the fact that you boughtthis home and you're reaching for this house.
And I'm a big believer in reaching, especially if you buy a fixed
rate a home at a fixed ratemortgage, your income is going to rise.
Hopefully, it's just going to bea bit a great deal. Right
now, you suck it up andyou're strangled with it. Ten years from
(18:03):
now, it's oh, that's affordable. Twenty years from now, it becomes
a bargain because you have fixed rateloan. So always reach. I always
have, and I've always done wellby it. So you now reach because
interest rates are so high, andyou're going that's only temporary, right,
and then the interest rate's going todrop and you're not going to be you're
(18:26):
not going to be working three jobsto pay that mortgage payment. Well,
guess what, guys, doesn't looklike mortgage rates are going to drop anytime
soon. The days of three percentmoney are gone, gone, and the
value of homes if you bought itthree percent money, have increased dramatically.
(18:48):
Neil, you are a prime example. I remember when you bought your house,
and man, it was such areach for you. I mean it
was I remember those days, saygold, gold, gulp. It's fifteen
years ago or so. Now,I guess something like that. And I
had done the math and I wassuper conservative. I said nothing above four
(19:11):
hundred thousand, nothing. So wespent all of our six months looking around
and couldn't find anything. We endedup paying seven seventy. Yeah, I
remember, I remember, and youdouble and you were going around scared to
death and I've never thought about itsince, yeah, never knowing of us
(19:33):
has increased in value dramatically. Andthe mortgage payments now are well, uh,
it's we've refinanced too multi yeah,because you refinanced with percent money,
with three percent money, Oh no, I've got under three percent of YEA.
And then the secret of refinance,and I've always said this, if
you're going to refinance, don't takemoney out, just refinance the loan at
(19:59):
the same level. If you havefifteen years left, you get a fifteen
year mortgage. What people do,mistakenly is they refinance and it goes back
to a thirty year mortgage. Althoughat three percent it doesn't matter. You
can have one hundred year mortgage andit becomes basically free money. So that's
what people getting burned. So atleast no one's doing that anymore. They're
(20:22):
not buying homes and the hopes aregoing to refinance and the people that got
stuck. But here's the deal.Bill. Let's say it's what is it
sick something right now? Yeah,I know it's close to seven. I
thought it went down just a littlebit recently. So if you're going to
buy a house, you gotta eatit. You got to say, Okay,
I'm gonna do it at seven andfingers crossed, it goes down and
(20:45):
I refinance. But if you don'tand you want to buy a house,
then you're gonna buy it at almostsuffen unless you're buying a house with the
intention of refinancing it and you struggleso much now and then you find out
you're going to keep on struggling andthe intention was to get it to a
reasonable price by refinancing, Those daysare gone. That's the point. So
(21:07):
that's the comparison to what happened justprior to the bubble and the lady that
called me who bought a million dollarproperty on a minimum wage job. All
right, guys, we're done.KFI AM six forty live everywhere on the
iHeartRadio app. You've been listening tothe Bill Handle Show. Catch My Show
Monday through Friday six am to nineam, and anytime on demand on the
(21:29):
iHeartRadio app.
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