AM Show Hr 3 | Even After A Month, Some Businesses Are Without Power Still

Episode Transcript

Speaker 1 (00:03):
It's that time, time, time, time, luck and load. So
Michael Verie Show is on the air.

Speaker 2 (00:24):
Mister female el Casino.

Speaker 3 (00:27):
What does Japan's crashing have to do with the United States? Everything?
Absolutely everything, but it's not necessarily our fault. There is
something called the yen carry trade lea and of course
being their currency, and you will hear a lot about

(00:50):
that this week, and it is very complicated. I'm going
to try to explain it in as simple terms as
I possibly can. But this is why I don't expe
things like finance on the radio, because there's two problems.
You explain it in a way that simply validates people
who understand it, and they go, oh, that's pretty good,

(01:12):
but nobody else understands it because that's not your thing.
Or you try to explain it in a way that
it is very accessible, which is much harder to do,
and then the Finanzka has go yeah, but you didn't.
You forgot that. There's also a triple reverse that you
can run on fourth down out of the Statue of liberty,
and you didn't point that play out. So either way,

(01:37):
the real answer is don't read your listener emails. But
let me try to explain. Because the crashing of the
whether you want to call it globalism or interconnected economies,
when Japan and South Korea and Taiwan crash, they're taking
us with them. It doesn't mean that it'll be the

(01:59):
end of the United States. It does mean it's going
to have a recessionary effect. There's no doubt about that.
It's going to affect you wherever you are now. If
you don't have a if you don't have a retirement account,
if you don't have a four oh one K, if
you don't have any investments, if none of this, if

(02:22):
you have none of this going for you, but you
have a job, it's still going to affect you. The
more invested you are, obviously, the more it's going to
affect you. So you have something called the yen carry trade,
and you're going to hear this term many times this week.
Yin of course, and again I'm going to explain this

(02:44):
like we're all in sixth grade, because I think that's
the better way to go about this. The en is
a Japanese currency. So what happens is you've got these
guys in Japan. Let's start with the Bank of Japan.
So the Bank of Japan decided to raise their rates. Okay,

(03:07):
they raised them about zero point twenty five percent, one
quarter of one percent, so the second time they've done
this since two thousand and seven, so fair to say,
much like the United States. Up until the FED hiked
our rates recently, we had artificially low interest rates. That

(03:28):
was creating a lot of cash that was available to
the market, which can be a good or bad thing.
So the traders were taking advantage of those rates, which
were insanely low. So the investors would borrow yin at

(03:49):
really low rates, practically zero, and then they would use
that as leverage. They would convert the yen to our
US dollars and get basically a free margin. And that
only worked with low rates, and then the US rates

(04:14):
started rising and other countries started raising their interest rates
as well. I quote mortgage rates all the time just
to see what they are, and I'll run spreadsheets on
my home. All right, I got my mortgage at two

(04:35):
point five per two point five to five percent several
years ago, and as the rates go up, I'll go in,
just as an academic exercise, and say, all right, what
happens at four percent, what happens at five percent. What
happens at seven? When I got my mortgage at two
point five to five, I wasn't some genius. I didn't think, well,

(04:55):
I better get this now because it's it's going to
get up in the eights. I knew these were historically
low rates, and I knew they couldn't last, and frankly,
I knew they shouldn't last. What happens is in an
era of exuberance of artificially low interest rates. Rather than

(05:17):
solve a problem and create a more balanced environment, you
live in this era of exuberance and nobody wants it
to end, and eventually, by the time you admit it
has to end, the result is devastating. When you could

(05:42):
have I hate the word correction, but you could have
corrected or altered that number slowly and caused a lot
less pain. So then the Bank of Japan started raising
their rates. Well, that meant there was no carry trade.

(06:02):
The en carry trade didn't make sense anymore. What was
driving so much of that activity no longer made sense
for the people doing it. Then the US started cutting
our rates, European unions started cutting their rates in parody.

(06:23):
So the Japanese yen strengthened relative to the dollar, and
the pairing of the of the two hit the lowest
level since December of twenty twenty three. You now get
one hundred and forty two y for every US dollar
compared to one hundred and sixty for every US dollar

(06:45):
a few weeks ago. And the reason that's important is
as the yen strengthens, those yin carry trades as they're called,
are being the term as margin called. Now the free
yen loans have come to an end, so the underlying

(07:07):
assets are being sold, and that's causing a crash in
the equity market. You want a robust trade in your
stocks in your equities, you don't want everybody trying to
sell at the same time. That becomes a huge problem.

(07:29):
Just imagine if you would, the car market. The car
market is a rather sophisticated market of people buying and
selling all day every day. You've got the new car dealers,
they're all along the freeways. Then you've got people. Then
the new car dealers can't survive unless when it's time
to upgrade your car, you sell them your car and

(07:52):
they give you some money for that. Because if you
can't get money for your used car, then you don't
buy the new car. That's just the way it works.
So they ended up having to get into the used
car business, and in many cases they push those cars off.
They find ways to get rid of those cars. That's
not where they want to make money. Now, some dealers
will make it a bigger part of their business than others.

(08:15):
But over a period of time, you created these very,
very sophisticated, diverse markets. Remember you had the what was
the one that would do the tall glass building and
they'd have the what's it called? They'd have the cars
stacked in there, look like lil what was that called.
The point is you got a lot of people buying

(08:36):
and selling at any given time. But imagine what would happen
if everybody on the same day said I'm selling my car.
If everybody started trying to sell their car, it'd be
a great time to buy cars, but it would crash
the market because you'd have competition. You'd have a race
to the bottom.

Speaker 4 (08:55):
It is a dismantle the black family. Why don't we
ask missus Brown if Kamala Harris cares about Black families?

Speaker 5 (09:23):
The best things in life were free, but you can
give them to the beds and bees.

Speaker 3 (09:29):
I want money.

Speaker 6 (09:33):
That's what I want.

Speaker 5 (09:36):
That's what I want.

Speaker 3 (09:40):
That's what I want. So we're not in the clear,
but it does seem like things are settling down a bit.
For the morning. There was a great deal of anticipation
as the markets opened, and fear, if not out right panic,

(10:01):
was the order of the day. But the major indices
or down. Sandy Peterson, our research director, says about three
percent ish. The volatility index is up over forty. Obviously
that's concerning. What's going to be interesting is what happens

(10:26):
when the Asian markets open this afternoon. That's when we're
going to find out how much volatility we have in
this market. Add into that, because things like this create
a great deal of volatility, is if Iran attacks Israel.

(10:54):
The hope has always been that Iran would use proxies
to fight their wars, the Huti's battling the Saudis, so
that Iran would keep their fingerprints off of it. Iran,
for that matter, has fought us in Iraq through insurgents.

(11:16):
Iran's leverage in the world, their ability to create turmoil
rivals literally any other nation. They have such a far
flung enterprise of terror and outright war it's staggering. It's

(11:41):
absolutely staggering. But they have such incredible focus on that
they are not focused on the various things we are DEI.
For instance, there are reports of Soviet or Russian planes.
I don't know that I'll ever stop saying Soviet of

(12:02):
Russian planes, supply planes delivering material to Iran. If those
are true, Uh, it is disturbing. We could be bracing
for we could be bracing for a very very ugly

(12:24):
month in the Middle East. If well, I don't even
want to I don't even want to. Uh, I don't
even want to speculate. I made the point that Charles
Schwab's trading accounts for customers that their customer logins are down,

(12:48):
and that I'm not a Schwab customer, so but multiple
business site reports that their sites go down when there
is volatility in the market. And I made the joking
comment that, well, there's nothing to worry about. It's kind
of like center Point. Center Point's fine until you need

(13:10):
the most. And I made the point that, well, I'm
sure the Schwab accounts are fine until you really need them,
and that's when they go down. And somebody I don't
know who it's not their real name they're using. Made
the point that that's by design. And there comes a

(13:34):
point in the life of every citizen when you start
realizing so many things that you would have naturally believed
are simply an error of mistake, of failing not at all.
That's not a bug in the system, that's in the design.

(13:59):
At backflow Preventer, there's a there's a trigger, there's a
breaker that flips that says too much action, site goes down.
I do not know this to be the case. I'm
going to be very clear. I don't. I don't have
unreliable authority. But it is certainly within the realm of

(14:24):
possibility as a business decision that if people are moving
money out of those accounts, pulling them out of active
trading for which you get commissions into a cash management account.

(14:45):
If you are a financial advisor, a daylight today is
a real moral dilemma. Do you do the right thing
and most will I believe that. Do you do the
right thing for your client and their investments, or do

(15:09):
you take action that will bring them harm but minimize
the loss to you financially. And what do the firms do.
I don't put it past the firms themselves. That's not
to say I think they'll all do that or even
a lot, but I think there will be some. We

(15:32):
know what these guys have been up to. There was
a guy named Michael Berry's still around.

Speaker 6 (15:37):
Be you r y.

Speaker 3 (15:40):
I would say, I would rather I be him than me.
But he's got an eye that just wanders all around,
and I really don't want that. You got to wear
sunglasses all the time. That is not an easy way
to go through life, because I think it would probably
get tiresome to be talking to somebody and they're looking
where your one eye is looking and you're going no, no,
And you got to learn to cock your head just

(16:02):
right to where your eye locks down on them. And
I really do I try ramon when I'm having a
conversation with somebody in a situation like that, I really
do try to lock down on the eye that I
think they think is looking at me. But then I
in my mind starts wondering. Then I'm worried about the eye,
and I'm not listening to what they're saying. And I
still can't understand why we can't fix that. We can

(16:25):
get a dude that it ain't had wood in forty
years to make babies and we can't fix the wandering
eye that what's that? Yeah, it feels like you could
just reset the system and the settings would kick in
and everything would work this time. You know, just maybe
that one. Have you tried to restart your system, It

(16:46):
feels like that should be the way that would work. Well.
These are tumultuous times. Rustling Ball is probably the only
person I've ever heard consistently use the word tumult, not
tumult to us the adjective, but tumult the now. And

(17:08):
it feels like a time of tumult today. I suppose
we should probably engage a and I truly believe because
I know that for a lot of people simply getting
ideas out there, I do want to caution you be
careful because it is easy to spiral into a frenzy

(17:32):
of fear. I'm not here to do that. But by
the same token, I'm also not here to tell you
that this is just another Monday and things are going well,
that the chickens are coming home to roost. The long delays,
the long problematic cancers are developing and metastasizing. Seeing it

(18:00):
in the world, I mean, I guess if you're going
to try to find a silver lining, at least you
want that to happen. It's forty was it forty three days?
Forty two days until early ballots are going to be
mailed to be to be stolen in Pennsylvania, We're about
to start voting. And if you want to get people

(18:21):
to focus on why Donald Trump and why not Kamala Harris?
I suppose this is a cocktail perfection of why you
don't want that?

Speaker 7 (18:31):
All right?

Speaker 3 (18:31):
It's and I truly believe. Get right to your point
and don't say it unless you really believe it. Seven
one three nine nine nine one thousand seven one three
nine nine nine one thousand.

Speaker 4 (18:40):
To Michael Berry Show, why don't we ask missus Willie Brown,
if Kamala Harris cares about black families.

Speaker 1 (19:11):
Extremely making what some would call history, don't say that.

Speaker 6 (19:15):
I've never been down a thousand points ever, not even
enter day on the now stack?

Speaker 5 (19:19):
Is that true?

Speaker 4 (19:19):
That is true?

Speaker 8 (19:20):
Okay, I'm down six percent right from the get go.
This is heavy heavy set, big tech.

Speaker 9 (19:25):
Here we go.

Speaker 8 (19:26):
Look at them go down. Microsoft is down twenty bucks.
That's five percent, Alphabet five percent, Meta six percent, Amazon
six percent Apple nine percent death.

Speaker 2 (19:50):
It's not truly believable.

Speaker 3 (19:51):
Don't worry, we don't need the music. Sometimes it's good
to get ideas on the table. Understand this for those
of you who are overly literal. Just because someone says
something doesn't mean it is true. Just because you don't

(20:11):
like it doesn't mean I'm going to disagree with someone.
This is a free speech zone, a free idea zone.
I know that's hard for people to understand. It's and
I truly believe Aaron. We'll start with Aaron, John, Chris, Randy.
We'll just go down the list like that, seven one, three, nine,
one thousand erin what do you truly believe?

Speaker 10 (20:36):
I truly believe that Kamala Harris gets her hand me
down pants suits from Hillary Clinton?

Speaker 3 (20:43):
Maybe it maybe you know, let me address something because
this keeps coming up in emails. Thank you for the call.
I keep getting emails from people's stands. Stop focusing on
Konela having an affair with a sixty year old man,
and stop focusing on her husband getting that warman pregnant,
and stop focusing on Joe Biden. Okay, what you're telling

(21:10):
me by virtue signaling is and they would usually say,
I want you to talk about her policy and how
bad our policies are, and her policies are no good,
and I want to tell at her policies. Do you
do my job because I don't do yours, and I
don't tell you how to do it. But I will
tell you this. I have talked about policy till I'm

(21:34):
blue in the face and people go to sleep or
not me, Michael, not me. I'm so serious. I'm talking
about policy. Do you need me to tell you how
bad commalist policies are the positions she has taken? Do
you need me to do that? Because I'm gonna tell

(21:56):
you the way this works. Do you know why they
drive Donald Trump to court because they wanted to brand
him a felon? Tell me one policy of his that
they say is the end of the world. It's gonna
take away your abortion. Well, do you want me to
go to the other side and say that? So I

(22:17):
hear these people who say, don't make fun of her cackling,
don't listen. There's more big mac sold every day than
there is caviar. You've got to go get independent voters,
low information voters. If you already understand the policy implications

(22:40):
of a Kamala Harris presidency. Bully for you, but sit
down and shut up. When it comes to serving the masses,
which you know nothing about, you don't have to share
with me. An anecdotal case. Well, a friend of mine said,
I don't even know what Kamala has done wrong. All
they talk about is she Indian or she black? Or well,

(23:00):
what do they talk about with Trump? It is a
democratic republic. It is not people who study policy and
economics all day long. And the guy who says talk
about the polacy is never as smart as he thinks
he is, but he feels like that makes him sound smart.

(23:22):
Clip on tie guy, John, What do you truly believe?

Speaker 5 (23:27):
I truly believe that the spirit of America has been
bred out of our children. And I'm a retired teacher.

Speaker 3 (23:34):
Well that's a damn sham. And all we can do
is everything in our power to prevent that happening with
our own children, and that is my goal. Chris, What
do you truly believe?

Speaker 10 (23:48):
I truly believe that your four one ks are being
unburdened today. But what has been.

Speaker 3 (23:55):
With the promise of what could be? You know, that
very phrase that she uses so often is a hallmark
of Marxism. You destroy the past. Or Well talked about this.
Bradbury talked about this. The reason for Fahrenheit four or
five to one is if you burn the books, you

(24:17):
burn the repository of knowledge and information. And when you
destroy the past, then you create the future in your
own image, unburdened by what was, unburdened by the constitution,
unburdened by our political traditions, unburdened by the truth in fact,

(24:42):
and the failures of socialism that are well recorded, unburdened
by any of that. Now we can promise anew Venezuela
fell to socialism relatively recently. It is a very very
deductive mistress that takes new prisoners every single day, and

(25:04):
it's working in this country. Randy, what do you truly believe?

Speaker 5 (25:10):
I truly believe the military will reinstate Donald Trump is
president instead of the elections in November.

Speaker 3 (25:19):
How does that work out?

Speaker 5 (25:24):
Well? From what I understand, it'll be Marshall law. The
military is in charge of protecting the Constitution, and the
only way to protect that is to reinstate Donald Trump
is president and hold the others accountable for.

Speaker 3 (25:41):
Treason and would this happen under the leadership of the
current military command.

Speaker 5 (25:49):
It would happen under the generals that chose Donald Trump
to be president or asked him to be president ten
or twelve years ago.

Speaker 3 (26:01):
You know, I've heard this there and I don't believe it.
If you look at the top brass of the United
States military, including one that he brought in to be
his chief of staff, they are the most political people
you'll ever meet. They work their way through a system.

(26:21):
They embraced woke, they embraced the establishment between the Bush
dynasty Republicans and the Democrats because some of them are
DEI I think you'd be shocked. I will never trust
the generals.

Speaker 4 (26:41):
Black community is to dismantle the black family.

Speaker 3 (26:43):
Michael Show, why don't we ask.

Speaker 4 (26:45):
Missus Willie Brown if Kamala Harris cares about black families?

Speaker 3 (27:14):
Roger writes, wandering eye topic. Please let mister Barry know
that there is a fix for the wandering eye issue.
I suffered with it for over sixty years. Very embarrassing,
and some people thought I was retarded. I totally get
what he was talking about this morning. I have nothing
but sympathy for those who do Texas Children's Hospital are

(27:35):
right there in Houston is where it can be done.
I thank God for finally going to the right doctor
in Beaumont, and he pointed me in the right direction.
Better late than never. Well, wish they'd stop focusing so
much on trying to make boys into little girls and
focus on fixing eyes. Shane writes Zar I had a
crooked eye caused by an inner tube at the Guadaloupe

(27:58):
back in the eighties. I lived with it for over
thirty years and took a lot of abuse. I am
positive it affected my career as well. In the late
twenty tens, I found a doctor here in Houston that
detached and reattached the muscles to match it to my
other eye, and it changed my life. Oh the accident
also left me blind in that eye. Of course, it

(28:23):
affected your career, There's no doubting it. It affects your career.
Have you ever seen a CEO of a company with
a crooked eye? You don't. I mean it is a
whether people like it or not, physical appearance matters. Alan writes,
I heard from someone way smarter than me that a
botox injection to the opposite side of the way the

(28:45):
eyes looking will strengthen or somehow enable the eye to
straighten out. Cousin Eddie's kid fell in the well and
then got kicked by a mule, So there's also that well,
I guess that's true. It's and I truly believe. To
round out the show, we have a lot to get
to this evening, and we welcome you to join us back.

(29:07):
We have been dropping a bonus podcast or two per
day by noon when we finish our morning show. We've
just kept going through the morning show. So if you
want to hang around and get more Michael Berry Show,
give us about thirty minutes and we'll usually drop the
first one and within thirty minutes the second one as well.

(29:28):
If you're not already following us on the podcast, go
to whatever podcast platform you use. iHeart iTunes and subscribe
to our podcast. They will be clearly noted as bonus podcast.
All right, we'll go, Ben, Chad James, justin Mark, Ben,
what do you truly believe?

Speaker 9 (29:52):
I truly believe in the freedom of speech, and I
truly believe that I owned a yacht and I don't
give a damn what you said.

Speaker 3 (30:03):
Oh it's goofy Ben with his yacht again. All right, Chad,
what do you truly believe that's when his wife ran
away on him? And now you start going, well, let
me not be too judgmental. Maybe she he got on
her nurse too, Chad, what do you truly believe?

Speaker 5 (30:20):
Sir?

Speaker 11 (30:20):
I truly believe you really enjoy saying rat hole oh
from the the pipe ink commercial. I just it gets
me every time I can hear the giddiness in your voice.

Speaker 3 (30:36):
Did you email me?

Speaker 10 (30:39):
Yes?

Speaker 3 (30:40):
I did, okay, because because somebody emailed me to that effect,
and I didn't know if there was another person that
felt the same way, or if you're the only one
that said it. My buddy Ray Briers, he's such a
good dude. Ray buys and sells pipe. That's that's his deal.
He buys and sells pipe all day, every day, and

(31:01):
he manages relationships and so people will email him or
me and say, hey, we got this abandoned pipeline over here.
I don't know if he wants to take a look
at it, and he's like, I'm on it, And within
twenty four hours he's got a deal and he's buying
this pipe and getting it out of there and selling it.
It's all a relationship business. It is not a high

(31:22):
tech business, but boy is he ever good at it.
It's Thepipeyardinc. Dot Com. But by the way, if you
ever hear me talking about a show sponsor and you
cannot remember, okay, what was the name of the people?
Or how do I all day long? That's my priority.
Email If you email me through the website Michael Berryshow

(31:46):
dot com or just Michael at Michael Berryshow dot com.
If you email me and say, hey, who is the
person who does this, this or this? I will personally
forward you to the owner and they will personally reach
out to you every time. James on the Black Line,
what do you truly believe, sir?

Speaker 7 (32:07):
I truly believe that in a time of universal deceit,
telling the truth becomes a revolutionary act.

Speaker 3 (32:14):
Yes, indeed, that dude, Georgewell, James, what do you make
What do you make of the increasing number of blacks?
And I don't mean Harvard educated river Oaks living. I
mean you're seeing guys now driving along like a Snoop

(32:35):
Dogg in the Gen and Juice commercial, in the Jen
and Juice video with Macga hats on. You're seeing rappers,
You're seeing athletes, you're seeing guys that were not typically
voting Republican very much openly supporting Donald Trump. Do you
think that's Do you think that is widespread or do

(32:57):
you think this is an anomaly?

Speaker 7 (33:01):
No, I think that. Oh and it's Jay, by the way,
I've called a couple of times.

Speaker 1 (33:07):
Yeah.

Speaker 7 (33:07):
Yeah, No, No, you're good, You're good.

Speaker 6 (33:09):
No.

Speaker 7 (33:09):
I honestly think that this is a widespread issue right
now because at the end of the day, I don't
care what color you are, socio economic status or whatever.
We all got to eat. And so not only that,
but social media has kind of helped play the key
role in that where people can actually start researching for

(33:33):
themselves versus listening to any and everybody, and so, you know,
blacks are not a monolith. And that's that's one of
the things that is shocking a lot of Democrats and
a lot of left leaning people because they started because
people are starting to wake up.

Speaker 3 (33:51):
You know, you are exactly right, and more and more
blacks are starting to realize just it's because the Democrats
tell you Republicans are racist and they're out to help
they're not. You watch the replacement for Sila Jackson Lee.
You look at how Silvester Turner has been anointed. You

(34:11):
look at how crappy the eighteen congressional district is. You
look at what Sylvester Turner did at city Council, at
City Hall. It's a fraud, it's shameful, and yet they're
gonna pull it off yet again. Justin what do you
truly believe? Quickly?

Speaker 10 (34:28):
I truly believe that it is insane. We let our
room full of bureaucrats decide the cost of capital based
on skewedent metrics and hyperbolic information, and ninety percent of
the problems could be fixed if we fix the money.

Speaker 3 (34:41):
Amen a monetary policy argument. I wish we could have
that all day, every day. I concur good sir, great
call mark. What do you truly believe? Quickly?

Speaker 6 (34:53):
I truly believe that DPS stands for Data Process and Service.

Speaker 3 (34:58):
Why do you say that?

Speaker 6 (35:02):
Because I've been driving a truck for twenty three twenty
four years, and every time you go on DPS office,
they treat you like a terrorist while they're letting all
these millions of people come across the border down there.

Speaker 3 (35:12):
You know, if if the governor had good advisors, they
would bring in some really smart minds and focus on
customer service and solve that, and people would have a
good experience and you'd remind them that you were part
of that. But if ifs and butts were candy and nuts,
who'd Yeah, we'll be dropping a bonus podcast here in

(35:32):
just a moment. We'll record it right now.