March 10, 2025 • 10 mins
Discover why shortcuts like "six-minute abs" and decades of big government spending have left the U.S. economy with $36 trillion in debt. Christopher Markowski explains how command-and-control policies, bailouts, and modern monetary theory have failed us. Learn why rebuilding a private sector-driven economy—step by step—is the key to long-term growth, despite the volatility ahead. www.watchdogonwallstreet.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
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):
What do six minute abs and the US economy have
in common? Now, again, if you're not familiar with this,
back in the nineteen nineties, there was a lot of
videotapes going around with these six minute abs and these
little short form workouts, and they would have the picture
on the box and as oh, you do this and
every day and you're gonna be jacked right right? Shortcuts shortcuts,
(00:39):
And we at the Watchdog in Wall Street show, we
don't believe in shortcuts. Everything in life that has meaning,
value and worth involves work, time and effort. And it
was actually funny in the movie something about Mary Ben
Siller's character picked up a hitchhiker who turned out to
be a serial killer. It was a common new movie
(00:59):
by the way, that he was thrilled with the fact
that he turned seven minute abs into six minute abs
that was going to be a huge hit. Well, what
I get in that right now? We have we have
for decades, now decades, done the wrong thing. What I mean,
(01:21):
done the wrong thing with for thirty six trillion dollars
in debt. We have gone from an economy that was
primarily reliant upon the ingenuity of the American people and
the private sector. We still do We're still better than
most of the world, not all of the world, but
(01:41):
we've leaned on government and government expenditures and quite frankly,
you could take a look at our GDP growth since
the nineteen nineties, for the most part, it's been met anemic,
not something that we're used to as a country. And
(02:04):
again I discussed this in the past. How I want
to go back to the Obama administration, they really put
command and control policies on steroids. Again he used that
rom Emmanuel, who is Barack Obama's chief of staff at
the time. He actually said it is that I never
let a crisis go to waste, and they didn't. They didn't.
(02:25):
They they took the financial crisis, they turned it into
something where they could point the fingers at Wall Street
ignore all of the things that the government did to
create that financial crisis, which we highlighted, and again it
was a long process, and allow the government to take
(02:47):
a bigger role in the overall continent. Now they thought
it was going to work. They actually believe their own
bs they did. You can go back to watch videos,
got receipts, you know, Recovery Summer and all of the
things that they were going to do in the American
Recovery Reinvestment Act and all of the money that they
(03:08):
were going to spend that was going to juice up
the economy didn't work.
Speaker 3 (03:14):
But by the end of Barack Obama's first term, he's like, ah, yeah,
you know, we gotta get used to this here in
this country. We all had economic growth that was dean
That was just short term stuff. It wasn't real, wasn't real.
Speaker 2 (03:25):
He basically threw in the talent and we can move forward.
You know, you could take a look at what Trump
did in his one term and the tax cuts and
Kain't got the economy going again. But here we had
COVID come along again. We can go through a mere
conspiracy theories. Why but Trump made the error as well
(03:48):
of going all in on the government, trusted people Washington,
d C. Massive mistake, massive mistake that Joe Biden. You
start talking more and more about modern monetary theory. You know,
we were told that is no inflation out there, and
you don't have to worry. Government does have to worry
about debt. We can just print more money. Again, I
(04:12):
liken this to somebody who has spent decades of their
life living in an unhealthy way, not exercising, not eating properly,
doing the wrong things, drinking too much, smoking, whatever it
may be. You do damage, You can do a ton
(04:34):
of damage. But the amazing thing about free market and
also the human body, it's amazingly resilient and if you
make changes, you make changes, you can turn things around. Now, hey, again,
it's not going to be easy by any stretch of
the imagination. And again, everything that's taken place we foretold,
(04:57):
We told you come expect a lot of volatility moving forward,
and there's going to be massive amounts of pushback in Washington,
d C. Without a doubt. This is not it's it's
not going to be an easy run by ani stretch
of magics. And I'm going to tell you there's going
to be many people out there. And I said, I
(05:18):
don't want to deal with this, and I don't want
to deal with that. I don't like this. Yeah, Secretary
of the Treasury discussing you know about listen, you know
we're going to have to make some real changes here
and there's going to be a massive hit. I was.
I was glad to see the President yesterday was being
(05:39):
interviewed and said, hey, listen here. You know China looks
at things in one hundred year prison. Even though the
China is looking at things to the form of government control.
But you better way of putting it. President could take
a look at the way that Rome handled things when
they were republic. They didn't look at the next quarter,
the next three months. You take a look at at
(06:03):
the long term, long term where we're going to be Again,
everything here in this country it is. It's focused on
the short term, next election cycle, next quarter. When it
comes to Wall Street, true success is built over time.
Charlie Munger, he had Warren Buffett's right hand man, the
late Charlie Munger, talked about building bit by bit, inch
(06:27):
by inch, brick by brick over time. That that's the
right way of doing things. Trying to goose things, trying
to look for short cuts. It doesn't work. And that's
what we've been We've been bailout nation for an extended
period of time where they be bailing out the automakers,
making homes affordable, subsidizing this forcing interest rates down where
(06:53):
they do not need to be. It's interesting the moves
that the President is making right now is forcing interest
rates down. He's done a better job of driving down
interest rates than the Federal Reserve has. And it's natural,
it's not forced. The free market works every single time
(07:17):
it's tried. Another thing that I was happy to see
the President say. Yes, they said, yeah, well, this is
what we're gonna get. We have to get back to
an economy that is based in the private sector rather
than the government, rather than the government handing out contracts,
picking and choosing winners and losers. And yeah, it's it's
it's gonna be painful. The old saying there's no pain,
(07:39):
no gain. Okay, Now, your six minute workout a day
is not going to get you jacked. Kids, it's not.
You have to put the work in. You have to
put the work in. You have to experience that type
of pain. It's it's we got to retry the American economy.
(08:05):
We have to empower the individual and small business owners.
We have to stop looking for Washington DC to solve
all of our problems. We do that, that will put
us on a much better track. It will allow for
(08:25):
us to get our national debt down and live a
much Uh, we'll put our nation on a much stronger
footing in more ways than one, because that's our greatest
nationalist security concern. He quick side note when it comes
to that, and everybody's back and forth right now about
daylight savings time clocks, look at the debt clock. Thomas
(08:50):
Massey just put this out. It was genius. Quite frankly,
Thomas Massey just puts I was laughing. He goes, who
was actually talking about the clock worried about in comparing
it to daylight savings time And hey, listen, you know
every hour, every hour two hundred million dollars further in debt. Man,
(09:14):
that's a clock we need to be paying attention to. Again,
it's gonna be rough sailing and looking at the the
violent swings and the short term movements in the stock
market is not a way to run. To come to
stock the stock market and the economy, you have to
(09:36):
you have to take the two apart. Are they related, Yes,
without a doubt, without a doubt, But saying no, no again. Rebuilding,
fixing our foundation, strengthening the overall economy. That's where we're
going to see great economic growth, and again it'll translate
(10:00):
to the stock market over time. Our nation is on
an unsustainable path when it comes to spending in debt
and it needs to be dealt with. Waxstrog on Wall
Street dot Com
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):
What do six minute abs and the US economy have
in common? Now, again, if you're not familiar with this,
back in the nineteen nineties, there was a lot of
videotapes going around with these six minute abs and these
little short form workouts, and they would have the picture
on the box and as oh, you do this and
every day and you're gonna be jacked right right? Shortcuts shortcuts,
(00:39):
And we at the Watchdog in Wall Street show, we
don't believe in shortcuts. Everything in life that has meaning,
value and worth involves work, time and effort. And it
was actually funny in the movie something about Mary Ben
Siller's character picked up a hitchhiker who turned out to
be a serial killer. It was a common new movie
(00:59):
by the way, that he was thrilled with the fact
that he turned seven minute abs into six minute abs
that was going to be a huge hit. Well, what
I get in that right now? We have we have
for decades, now decades, done the wrong thing. What I mean,
(01:21):
done the wrong thing with for thirty six trillion dollars
in debt. We have gone from an economy that was
primarily reliant upon the ingenuity of the American people and
the private sector. We still do We're still better than
most of the world, not all of the world, but
(01:41):
we've leaned on government and government expenditures and quite frankly,
you could take a look at our GDP growth since
the nineteen nineties, for the most part, it's been met anemic,
not something that we're used to as a country. And
(02:04):
again I discussed this in the past. How I want
to go back to the Obama administration, they really put
command and control policies on steroids. Again he used that
rom Emmanuel, who is Barack Obama's chief of staff at
the time. He actually said it is that I never
let a crisis go to waste, and they didn't. They didn't.
(02:25):
They they took the financial crisis, they turned it into
something where they could point the fingers at Wall Street
ignore all of the things that the government did to
create that financial crisis, which we highlighted, and again it
was a long process, and allow the government to take
(02:47):
a bigger role in the overall continent. Now they thought
it was going to work. They actually believe their own
bs they did. You can go back to watch videos,
got receipts, you know, Recovery Summer and all of the
things that they were going to do in the American
Recovery Reinvestment Act and all of the money that they
(03:08):
were going to spend that was going to juice up
the economy didn't work.
Speaker 3 (03:14):
But by the end of Barack Obama's first term, he's like, ah, yeah,
you know, we gotta get used to this here in
this country. We all had economic growth that was dean
That was just short term stuff. It wasn't real, wasn't real.
Speaker 2 (03:25):
He basically threw in the talent and we can move forward.
You know, you could take a look at what Trump
did in his one term and the tax cuts and
Kain't got the economy going again. But here we had
COVID come along again. We can go through a mere
conspiracy theories. Why but Trump made the error as well
(03:48):
of going all in on the government, trusted people Washington,
d C. Massive mistake, massive mistake that Joe Biden. You
start talking more and more about modern monetary theory. You know,
we were told that is no inflation out there, and
you don't have to worry. Government does have to worry
about debt. We can just print more money. Again, I
(04:12):
liken this to somebody who has spent decades of their
life living in an unhealthy way, not exercising, not eating properly,
doing the wrong things, drinking too much, smoking, whatever it
may be. You do damage, You can do a ton
(04:34):
of damage. But the amazing thing about free market and
also the human body, it's amazingly resilient and if you
make changes, you make changes, you can turn things around. Now, hey, again,
it's not going to be easy by any stretch of
the imagination. And again, everything that's taken place we foretold,
(04:57):
We told you come expect a lot of volatility moving forward,
and there's going to be massive amounts of pushback in Washington,
d C. Without a doubt. This is not it's it's
not going to be an easy run by ani stretch
of magics. And I'm going to tell you there's going
to be many people out there. And I said, I
(05:18):
don't want to deal with this, and I don't want
to deal with that. I don't like this. Yeah, Secretary
of the Treasury discussing you know about listen, you know
we're going to have to make some real changes here
and there's going to be a massive hit. I was.
I was glad to see the President yesterday was being
(05:39):
interviewed and said, hey, listen here. You know China looks
at things in one hundred year prison. Even though the
China is looking at things to the form of government control.
But you better way of putting it. President could take
a look at the way that Rome handled things when
they were republic. They didn't look at the next quarter,
the next three months. You take a look at at
(06:03):
the long term, long term where we're going to be Again,
everything here in this country it is. It's focused on
the short term, next election cycle, next quarter. When it
comes to Wall Street, true success is built over time.
Charlie Munger, he had Warren Buffett's right hand man, the
late Charlie Munger, talked about building bit by bit, inch
(06:27):
by inch, brick by brick over time. That that's the
right way of doing things. Trying to goose things, trying
to look for short cuts. It doesn't work. And that's
what we've been We've been bailout nation for an extended
period of time where they be bailing out the automakers,
making homes affordable, subsidizing this forcing interest rates down where
(06:53):
they do not need to be. It's interesting the moves
that the President is making right now is forcing interest
rates down. He's done a better job of driving down
interest rates than the Federal Reserve has. And it's natural,
it's not forced. The free market works every single time
(07:17):
it's tried. Another thing that I was happy to see
the President say. Yes, they said, yeah, well, this is
what we're gonna get. We have to get back to
an economy that is based in the private sector rather
than the government, rather than the government handing out contracts,
picking and choosing winners and losers. And yeah, it's it's
it's gonna be painful. The old saying there's no pain,
(07:39):
no gain. Okay, Now, your six minute workout a day
is not going to get you jacked. Kids, it's not.
You have to put the work in. You have to
put the work in. You have to experience that type
of pain. It's it's we got to retry the American economy.
(08:05):
We have to empower the individual and small business owners.
We have to stop looking for Washington DC to solve
all of our problems. We do that, that will put
us on a much better track. It will allow for
(08:25):
us to get our national debt down and live a
much Uh, we'll put our nation on a much stronger
footing in more ways than one, because that's our greatest
nationalist security concern. He quick side note when it comes
to that, and everybody's back and forth right now about
daylight savings time clocks, look at the debt clock. Thomas
(08:50):
Massey just put this out. It was genius. Quite frankly,
Thomas Massey just puts I was laughing. He goes, who
was actually talking about the clock worried about in comparing
it to daylight savings time And hey, listen, you know
every hour, every hour two hundred million dollars further in debt. Man,
(09:14):
that's a clock we need to be paying attention to. Again,
it's gonna be rough sailing and looking at the the
violent swings and the short term movements in the stock
market is not a way to run. To come to
stock the stock market and the economy, you have to
(09:36):
you have to take the two apart. Are they related, Yes,
without a doubt, without a doubt, But saying no, no again. Rebuilding,
fixing our foundation, strengthening the overall economy. That's where we're
going to see great economic growth, and again it'll translate
(10:00):
to the stock market over time. Our nation is on
an unsustainable path when it comes to spending in debt
and it needs to be dealt with. Waxstrog on Wall
Street dot Com
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