Bill Parcells and Inflation

Bill Parcells and Inflation. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader, Chris Markowski.

Speaker 2 (00:16):
Bill Parcells and Inflation.

Speaker 3 (00:20):
I am a New York Football Giants fan since I
was little. My best friend growing up, I had season
tickets and would take me to games. This is back
in the day when every seat in Giant Stadium was
season ticket. It was a completely different atmosphere than it

(00:42):
was today.

Speaker 2 (00:42):
It was way better back then. Sorry.

Speaker 3 (00:46):
Also, you enjoy going down for training camp. They used
to do training camp at Pace University are in Westchester,
and go down to that as well with my best friend.
Bill Parcells had a line that I used here on
the program.

Speaker 2 (01:01):
Use it when I coach kids. You are what your
record says you are. That's it. And to watch to watch.

Speaker 3 (01:14):
All of these pundits try to talk in circles around
inflation and where we're at in this country, what it's
like for the average American citizen. Again, they can talk
all they want. That's what I would say. I would say,
you know what you are? What your record says you are.

(01:35):
Since since the Biden Harris administration took office, consumer prices
have risen twenty six percent faster than private sector wages.
Paychecks now buy less than they did back in twenty
twenty one. During the four years Donald Trump was in office,

(01:59):
inflation adjusted private sector wages rose by eight point one percent.
That means real private sector wages today are effectively eleven
point eight percent lower than they would have been if
the Trump era economy had continued another four years. Again, again,

(02:20):
you are what your record says you are. You want
to understand this again. This is a good piece that
was actually put together by Ted Cruz and Rick Scott
Ted Cruz Center from Texas, Rick Scott, Senator from Florida,
talking about how the inflation rate understates the bundling effect

(02:43):
of higher prices. A new car today costs forty seven,
eight hundred and seventy dollars versus eight hundred and fifty
seven dollars in January of twenty twenty one. The cost
to operate that car has gone through the roof. The
interest rate on an average new car today is more
than eight percent, compared with about five percent in January

(03:05):
of twenty one. That increases the cost of a sixty
month loan by seven hundred and twenty six dollars a year.
The average annual auto insurance policy costs fifteen sixty seven
in twenty twenty one. By the end of this year,
two thousand, four hundred and sixty nine yours worth. A
gasoline that costs nine hundred and ninety five dollars in

(03:28):
twenty twenty one is now twelve eighty one. A family
in twenty twenty one paid an average eleven thousand, five
hundred and seventy nine dollars to own a new car
and cover its associated cost for the year. Today it
costs fifteen thousand, three hundred and thirty seven dollars a year.
The car price rose for seventeen percent, but its total

(03:48):
annual costs rose thirty two percent. Home ownership average home
this is amazing to me three hundred and three thousand
nine dollars January of twenty twenty one. Cost is now
four hundred and sixteen thousand, seven hundred. But with mortgage
rates now again over seven percent versus two point seven percent,

(04:14):
the total cost of buying and financing a home has
it's doubled doubled from fourteen thousand, nine hundred and twenty
eight dollars to well over thirty thousand dollars a year.
Homeowners insurance that costs nineteen hundred back in twenty twenty
one is twenty five hundred today. The average annual electric

(04:37):
bill was fourteen hundred, today it's almost nineteen hundred.

Speaker 2 (04:42):
The average annual natural gas utility bill.

Speaker 3 (04:45):
Seven hundred and sixty one dollars back in twenty twenty one,
now nine hundred and sixty five. The cost of owning
and living in a home rose from nineteen thousand, one
hundred nineteen and twenty twenty one to thirty six thousand,
seven one hundred and thirty six.

Speaker 2 (05:02):
Today, the annual.

Speaker 3 (05:04):
Costs of owning a home and a car American dream
Stuff is seventy percent higher, twenty one, three hundred and
seventy five dollars higher than it was four years ago.

Speaker 2 (05:20):
Now again, I'm a money guy. I'm a money guy.

Speaker 3 (05:24):
Imagine if you took that savings okay, yeah, you had
that extra twenty one thousand, three hundred and seventy five
dollars and you just put it aside, put it aside
for four years. His past four years, you took it
and you put it into a retirement account. Just with

(05:45):
the S and P five hundred performance again, you you'd
have you'd have almost six hundred grand within twenty years
just off that money. And that's being very very conservative.

Speaker 2 (06:01):
Again. You are what your record says you are.