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May 26, 2023 52 mins
As the debt ceiling deadline approaches, Handel examines what the timeline might look like for Medicaid, Social Security and other payments needing to be made by the government. New details have emerged from the investigation into the classified documents found at former President Donald Trump's Mar-a-Lago estate, suggesting there may have been a "dress rehearsal" when it came to moving sensitive papers. And It's being suggested that California crack down on cash apps that allegedly target women, intending to trap them into loads of debt.
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Episode Transcript

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(00:00):
Your listings. KFI AM six fortythe bill handles show on demand on the
iHeartRadio app. And this is atKFI AM six forty live everywhere in the
on the iHeartRadio app. Some ofthe stories we are covering, UH,
there was a near fatal stabbing ofa metro bus driver in Woodland Hills.

(00:21):
A teenager has been arrested, andso we're seeing more and more violence on
metro buses or metro and on thesubway. UH. And CVS now adds
mental health treatments to drug stores insouthern California. So I guess right past
the apps asbourn Aisle. Uh,It's it's like Lucy UH giving you advice

(00:46):
for five cents and you pays yourmoney and you get mental health advice.
The debt ceiling timeline and now we'vebeen hearing more and more about this,
and believe me, up to Junefirst, we're going to hear a whole
lot about this. And as weknow, and by now, if you
other than if you've been living undera rock and just woke up this morning,

(01:10):
you know about the debt ceiling offiasco. And this is the ability
for the government to allow itself toborrow money to pay its bills. That's
all you know. You're you've runout of cash on your credit card,
You've run out of credit, andyou either get more money or allow more
credit from the bank, or you'redone. You can't pay your bills.

(01:30):
You can't borrow more to pay yourbills. That's the US government problem is
that no one stops the US governmentfrom doing this except the law, which
says that when we hit that figurewhere there's not enough money, no more
money to pay for our debts.We're talking about a budget that goes forward.

(01:53):
We're talking about debts that have beenincurred. Right, your utility bill,
your car payment. The debt isgetting there, and you need the
money to pay for it. Well, June first, is that magical number
or that magical date. And Idon't know how many times we've had to
raise your Congress had to raise thedeath sailing. I think sixty eight times
or something, all in those lines, and another one is coming up.

(02:15):
I think during the Trump administration therewere a couple of times, certainly during
well the Culton administration. Clinton waslucky. That was the second time since
or the first time since the Eisenhoweryears. In the fifties that we actually
had a balanced budget and even broughtin more money than we spent. Those
days of short gone. Now we'retalking about trillion dollars deficits, and so

(02:38):
the government house to borrow money.Now, what happens June first, that's
technically the time when we run outof money, and you've got Kevin McCarthy
and you have President Biden arguing,and McCarthy is saying, if you don't
cut expenditure, if you don't keptthe amount of money that you're spending,

(02:58):
if you don't even vote tax cuts, we're not going to pass the bill.
We're not going to let the moneybe borrowed, which means that it's
a default. The bills are due, the government doesn't have the money to
pay for it. Done well,a default has worldwide implications with the United
States, I mean, at worse, So we're going to go into a
deep procession almost to mean the dayit happens, at best, it's only

(03:23):
going to have was still going tohave a big effect, but not catastrophic
effect. Both McCarthy and Biden understandwe can't let that happen. This country
going to default is a big deal. When Argentina went into default, for
example, it took them ten yearsto get out of it, to crawl
out of that hole. And Argentinadoesn't have a whole lot of influence on

(03:47):
the world economy. The United Statesit has the greatest influence on the world
economy because the world runs on dollars. You buy oil, well, you
get an oil cost today, barrel, what is it? It's in dollars.
That's all commodities are in dollars,and so if a default happened,

(04:08):
it gets to be a mess.So they're negotiating now, they're saying they're
closer, but we're also hearing thereapart, there's a little bit of compromise,
and there isn't. We're hearing backand forth. Congress is going home
for the weekend, Memorial Day weekend, and nothing's happening until Tuesday. It's
a god awful mess, it reallyis. Interestingly, both parties understand the

(04:30):
magnitude of this problem. Both sidesunderstand how horrible dreadful it will be if
we go into default. And theycan't agree, will they agree? Well,
only they're understanding of what would happenif default occurs. That's the only
thing and June first. That's kindof a it's a number that bounces back

(04:51):
and forth. June one, Junefifth, June ninth y. Because the
government doesn't know how much twenties comingin to pay his bills. Doesn't know.
You think the government knows. Theytry to figure it out, but
they don't know. They don't knowhow much money comes in tax exercise taxes,
that sort of thing, income taxes. Until the money is paid,
then it's in the bank. Socome Tuesday, because a Memorial Day,

(05:15):
nothing happens, is and I'll behere Memorial Day. Come Tuesday, there's
going to be more and more inthe works. And the world markets are
going to the world stock markets andthe world commodity markets. I think they're
going to start to shiver come Tuesday. That's my take. Yesterday, the
oath Keepers Stewart Rhodes was sentence andhe was the guy who founded the oath

(05:35):
Keepers. He's the guy with theeye patch and he's the one that always
starts every conversation with arg that's abad joke in any case. He got
eighteen years in prison. And thisis the biggest punishment that has been handed
down for seditious conspiracy in January sixattack on the US capital, longest given

(06:00):
to any of the people found guiltyof involvement in the riot, the first
to include an enhanced penalty for terrorism, and there was there was a question
as to whether or not terrorism wouldbe included in the charges. They were
and the jury convicted and the judge, well, you know, it's one

(06:23):
of those things. This guy isnuts. Rhodes is out of his mind.
I always tell you the worst thingyou can do when you are stopped
by the police on a traffic violationis to get out of the car,
poke the cop in the chest andsay, hey, buddy, I pay
your salary. That's a bad idea, even a worse idea is what he

(06:46):
did in front of the judge.Although wouldn't have changed anything other than that,
you would have shown some kind ofremorse. And so he is in
front of judge. I'm eat meta. And the judge said that eighteen years
was merited by the role that Rhodesa leader in the anti government movement,
the armed anti government movement and hasbeen for decades and the founder of the

(07:13):
Oath Keepers, and the judge saidhe played not only a role in the
in the insurrection, in the overturningof the capitol, over running of the
capitol, even though he wasn't thereis he was the leader. He put
this together, and he convinced othersthat they had a right to impose their

(07:35):
political beliefs by force. And therewas no issue as far as that was
concerned. Although his defense was kindof interesting, which I'll talk about in
a minute. His defense was,Hey, I didn't intend to do anything.
I may have gotten out of hand, but it wasn't me. I

(07:55):
didn't tell anybody to overrun the capitolto cause damage. Yeah, well,
wait till you see, or waittill I describe some of the evidence.
And so he the judge now remainedinsistent, or excuse me, Rhodes remained
insistent that he was being targeted,that he was a target because of his

(08:16):
far right political beliefs. I meanhe's fine with that, of course he
is. And the judge said that, and I'm going to quote he is.
Rhodes is disturbingly a disturbingly charismatic figurewho manipulated his followers to bring firearms.
And the judge went on, Imean, this was harsh stuff.

(08:37):
The judge went on to say thatthey too are victims of the lies his
group, victims of the lies,the propaganda, the rhetoric, and the
intention that you conveyed. And Matowent on and predicted the moment you are
released, you will be prepared totake up arms against your government. I

(08:58):
mean, Rhodes had eppste lutely noremorse whatsoever. Now keep in mind that
this is the largest investigation political orotherwise in US history. Netted about a
thousand charges. Again, An gotmore than six hundred and fifty convictions.
Most people played guilty. Also,Meta on Thursday yesterday sentenced Kelly Meggs,

(09:24):
a Florida car dealer and a topdeputy to Rhodes, got twelve years.
By the way, Rhodes didn't disputethat he was a key figure in this
movement, but he did say hisconviction was part of a left wing plot
that included the Biden administration, themedia, the anti fascist activist. I'm

(09:45):
a political prisoner, he said,and this is his statement made before sentencing.
And like President Trump, my onlycrime is opposing those who are destroying
our country. And then he comparedhimself to Soviet dissident Alexander Souls and Eatson.
Now, uh, that's an interestingone. Souls and Eatson wrote,

(10:07):
what the book did he write?Uh? Got it it? Uh?
I just uh, I just forgotit for a moment. A political prisoner
in Russia. He was in agulag and he wrote this book secretly published
in the West, and he finallygot out. And what souls and Netson's
crime was was publishing the book.And he was a dissident. He didn't

(10:30):
talk about the overturn of the government. Where the oath keepers have where Rhodes
has u and he said that Ihad very little to do with it,
and this whole thing is a politicalcrime. And then he talked about,
uh, the oath keepers. Uh, they pledged to defend the constitution from

(10:50):
federal overreach, recruiting former military andlaw enforcement. Uh. And he said,
we've embraced Donald Trump as an ally. And well, frankly went to
and he was accused of shifting totargeting the president's political rivals. So it
went from his avowed concept, hisdeclared belief that it's we're defending the constitution,

(11:16):
what we're doing is keeping the countryon the right track, to we
are going to defend the president becausethe election was illegal, and the election
was unconstitutional, and that's the message. It's a rigged election illegal. President
Trump should still say the president.Except the difference is President Trump has never

(11:39):
said you overrun the Capitol, youdestroy property, you threaten legislators with hanging.
Trump never went that far. Andas a matter of fact, there's
an investigation going on, how muchis Trump involved with January sixth. There's
no way he's got I don't eventhink he's gonna be charged with inciting the

(12:01):
January sixth riot. And he wasin combat gear, stage and arsenal of
weapons that nearby hotels ready to takeup arms. And it's just so crazy.
He makes apologize, Rhodes did not. Rhodes kept on saying, I

(12:24):
am a political prisoner. That's it, and the United States, the people
in United States will recognize that Iam. And he considers himself basically on
the state. I'm surprised to sayit was Nelson Mandela because when you think
about it, Nelson Mandela was accusedof blowing up offices of that kind of
a crime. So I guess that'sa better it's a better analogy, that's

(12:46):
a better comparison. I don't knowwhy he said, I'm not Nelson Mandela
political prisoner. The difference is peoplebelieve one and they don't the other.
Have you ever seen a video ora documentary on Hell Week. I mean
you've certainly heard about it. Youcertainly you have to see in pictures and
you've got it. It's just insane. And this is the seal training Sea

(13:07):
air Land is what it stands for. These guys go through just completely insane,
a brutal week. They sleep fourhours a night, they go in
the water, they practice tactics,hand to hand combat, and what they
do is the one I saw wasthey were carrying this log. Six of

(13:30):
them were carrying this huge log,wearhing hundreds and hundreds of pounds, maybe
thousands of pounds, I don't know, and marching into the water, turning
around, marching back a couple ofhundred yards, turning around, marching back
into the water for hours on end. And if someone collapses, which a
lot of them do, well,tough luck. And the number of people

(13:56):
that actually apply for seal training notthat many. The number of people who
survive and pass very few. Sowhenever you hear anybody saying I have seal
training, or someone is a formerseal member in the military. You have
to be impressed. So with thatbeing said, there was a guy,

(14:20):
a seal candidate named Kyle Mullen,and in twenty twenty two, he completed
Hell Week and he underwent a finalmedical check because as you can imagine,
it is so rigorous, it isso tough, because they take you to
the very limit of your physical abilityand then go beyond that to where you

(14:41):
can very seriously injure yourself. Sothey give me medical checks at the end
of this, at the start ofit, and he underwent a final medical
check before he went back to thebarracks to rest. And the investigation because
he died found that Mullin had sufferedrespiratory issues during the training. I mean,

(15:01):
he had a hard time breathing morethan others. But that information about
the symptoms was not passed on tothe Navy's medical clinic, and so he
passed. He wasn't at risk.Eight hours later he's dead. And here
is what happened. This is whyan investigation has gone forward, this is

(15:22):
why this thing is has blown up. In the hours before he died,
he was coughing Upwold is described asan orange red fluid. Having trouble breathing.
Now, they offered him medical helpand he refused. He said no,
I don't need it, and theygave it and they said okay.

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But as he was saying no,he was choking on his own words and
gasping for air, and he wasdescribed as looking as if he were drowning.
The personnel that were assigned to checkon him and the other CEO candidates
had no medical or emergency care training. There were other they were just in
the SEAL program. And here's somethingelse and I didn't know this. Candidates

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going through Hell Week are normally givenpenicillin at the start to reduce the risk
of bacterial pneumonia. The investigation foundhe never received it. He never received
the presentative, the preventative medicine,and not because someone forgot, and not

(16:30):
because there was tremendous negligent. Theydidn't have any There was a shortage at
the time, so they couldn't givethem the medicine. And would that have
saved him. Well, the bacteriathat is that causes this kind of respiratory
illness can be treated by a certainantibiotic, and that's what they give SEAL

(16:52):
candidates, they ran out of thestuff so they couldn't give it, And
in the end, this investigation foundfailures across multiple systems and said that candidates
are at high risk of serious injury. This is the rear admiral who oversees
the seal training, but on avery top level, so he wasn't nailed,

(17:17):
although usually that's the case. Itgoes all the way up. So
in October, this is February oftwenty twenty two. In October there was
a separate investigation that focused specifically onMulin's death, not just a generalized investigation,
and the Navy took administrative actions againstthe former commanding officer of Basic Training,

(17:40):
the captain, the commander of NavalSpecial Warfare Center, another captain,
a senior medical staff all under theircommand, and one of them, the
captain, his name is Brian Dreschler, was removed from his job. Even
if these people survive, if they'renot thrown out of the military, they're

(18:00):
done as far as their career isconcerned. I mean, they might as
well just leave because in many casesthey are either going to be demoted or
certainly never never go up the ladder. And candidates now recover from the course
in a center located close to themedical clinic. They moved where the barracks

(18:21):
are after the seal hell week andthey are given a more thorough observation at
this critical time. Because this isthe other thing about seal candidates, they're
macho men. I mean, theydon't need medical help because they're the kind
of guys that turn it down.So you've got Mullen here who is literally
coughing up this fluid, can't breathe, No, I don't want it,

(18:47):
and they say, okay, we'renot going to give you the help that
clearly well, if you were trained, you knew he needed. But the
people that were overseeing him weren't trained. They probably didn't know how serious this
is, and if they did,they sure shut up about it. And
so now the leading watch standard,that's the guy who watches over these guys

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at the end of hell week,is now a qualified high risk instructor with
medical background. And then there wasa real weird one. Mullin's car was
searched after his death and there werepackages labeled big genes, recombinant, human
growth hormone, steroids, testosterone siphonate. It's a steroid. Mullin was not

(19:36):
tested for those those chemicals or supplementsafter his death, so we don't know,
but I'll tell you what we doknow. Other members of Mullin's class
told investigators they felt it was animpliccement, implicit endorsement of these supplements of
the steroids, when instructor told thecandidates don't use these steroids is cheating and

(20:00):
you don't need them, and whateveryou do, don't get cut with them
in your barracks room. And howdo you think they interpreted that one?
Huh? Now I want to sharea story. I'd love this story.
I love this whole thing about theinvestigation former President Trump and Marl Lago.
And the reason is not only well, you know where I sit in terms

(20:21):
of the former president. I'm nota fan at all. And one of
the things that I absolutely love abouthim, and I'm being obviously being sarcastic,
here is the utter hubris that heshows and hugely entertaining. You are
going to hear already with DeSantis.He's talking about how DeSantis is lightweight,

(20:44):
doesn't have any experience, although howmuch experience the Trump have in politics,
and certainly to run the presidency whenhe was elected, and what does he
do? Was it Marco Rubio?Did he refer to Marco Rubio's small hands
and reference to the size of hispenis? I don't remember. I think

(21:06):
he did, and I just loveit. Dirty Hillary, crooked Hillary.
I mean, you're going to seea lot of that, particularly against the
Santis. Now we move over tothe investigation. And what investigation am I
talking about about Trump? Oh?I don't know. Half a dozen of
them. You've got the FEDS intwo of them. You've got Georgia involved
in one of them. You've gotNew York in which there hat So he

(21:30):
has been an indictment in New York. And so this latest story happens to
be about the federal investigation and thosedocuments of classified material that were at Mara
Lago, and how many did Trumpkeep? And did he violate the law?

(21:52):
Well, he certainly violated the law. But either it's small potatoes.
And why is that? Because federallaw, a president former president upon leaving
the presidency has to turn over alldocuments related to the presidency over to the
archives, and not doing so isa violation of federal law. Now,

(22:15):
what ends up happening is in thelast days of a president presidency against very
frenetic. Boxes are being moved.We're talking about millions of documents and someone
has to go through and figure out. Okay, this is private, writing
to a personal friend, writing toa former girl friend. Hey, I
was thinking about you last night whileI was putting the State of the State

(22:38):
of the State of the Union speechtogether. I mean, it goes on.
Those are private, they're separated out, but anything relating to the presidency,
to the government has to be segregatedand sent to the archives. So
you can imagine trying to figure allthat out in the weeks leading up to
leaving the White House. Well,it turns out, as we know that

(23:00):
President Trump, former President Trump kepta bunch of documents. He moved the
documents from the White House to hishome in Mara Lago, and the Marlio
House has storage capabilities. I meanit's huge. Obviously has an office where
Trump sits in and just has allkinds of administrative offices. I mean it's

(23:22):
a big deal. I mean that'swhere he basically lives now. And former
president especially presidents who have all thesebusiness dealings and have dozens and dozens of
companies. So they do a lotof work there. Okay, the FBI,
someone tells the Archives, seems thatthere were documents that were classified.
Now, all documents have to beturned over, but classified documents are particularly

(23:48):
important because they have secrets, theyhave state secrets. There's intelligence, names
of foreign agents, names of Americanswho are at risk that do intelligence,
I mean, all of it.And so you have these documents that the
FBI, well, the Archives says, are at Trump. Trump's residents.

(24:11):
They contact him, he says,yeah, I have a few of them,
and he turns the bunch over.And then it turns out that the
National Archives say, wait a bittit. We think there's a lot more.
And so they contact Trump's attorneys,because all of this is negotiated.
Of course, attorneys to the Departmentof Justice, because it's the FBI that

(24:32):
enforces this entire action and goes outand does the raids, etc. And
that's what happened here. So formonths this negotiation goes on. Archives says,
we still need those documents. Trump'sattorney says, we've turned over all
the documents. They either here oron a tip ORF some information that they
weren't turned over. And so there'sthe raid and over one hundred were picked

(24:56):
up. You saw those photos ofthose envelopes and those documents and the file
folders that said classified secret on thefloor where the FBI put them on the
carpet and snaff pictures. Think alittle bit anti Trump, But sentiment there
you think so. And so it'sa huge controversy Trump. This is where
the hubiest parts comes in. Trumpsays they were declassified. But what do

(25:19):
you mean they were declassified? Theyweren't classified. What do you mean?
It says classified all over them,And he said I classified them. I
declassified them because the president can declassifyanything. That's true, but there are
certain procedures you have to go throughto declassify documents. You have to name

(25:40):
the specific document, how many pagesit is. It has to be pointed
out with specificity. He did noneof that, and he was told by
the FEDS you didn't do that.They're not classified. He goes, yes,
they are. What is the basisfor him saying that I, as

(26:03):
president can declassify these documents? Andin my head, I declassified them.
Therefore they're declassified. What I mean? Come on? Really? And so
now it turns out and there's evidencethat there actually was some kind of address

(26:26):
rehearsal where documents are moved. Thereis a worker at maral Lago who is
testifying who has said that he wasasked to move certain documents certain boxes,
didn't know what was in him.It turned out there were classified documents in
him into a storage room. Andthere's more and more evidence that Number one,
the president knew these were classified documents. Number two, he took them

(26:48):
knowing they were classified. Number three, when asked through his attorneys, do
you have any of these? Doyou have any more other than the ones
you turned in? Nope, Idon't have any more documents. So the
FBI raids the place, picks upthose documents, and now the investigation goes
forward basically, what did Trump know? What did Trump do, and what

(27:14):
was his intent? And that justadds another level to this investigation. I
gotta tell you, this gets betterand better. You have to admit this
is one fascinating presidency. And ifhe gets elected again, I don't even
know what's going to happen the secondtime around. I have told you time
and time again, and we havetalked about it, and you've heard news

(27:37):
reports and Steve Gregory has reported onthe problem with La County Child Protective Services,
and you have those horrible stories ofthose kids being tortured by step parents
and moms, and these people havegone to jail for I don't know the
rest of their lives kind of thing. And there there's a real problem with

(28:00):
La County. Well, it's suchas La County Child Professor Protective Services.
Let me tell you what's going onin San Bernardino County Child Protective Services.
They've just been sued federal class actionlawsuit on behalf of more than fifty eight
hundred kids. Is alleging that SanBernardino County Children and Family Services was deemed

(28:23):
too broken to fix by a civilgrand jury, and the jury went on
to say it failed to protect childrenunder its care and it sometimes placed them
in danger. I mean, youtalk about a lawsuit and here is the
evidence. Oh, we didn't doit. Let's say there's the defense.
Well, here's some evidence. Thegrand jury found that you did this.

(28:47):
Fifty eight hundred kids, and thelawsuit says that overburdened case workers are unable
to perform required visits inspections of fosterhomes. It fails to properly vet homes,
families where children's are placed sometimes actuallywith dire consequences, and we know
about that now. It is easyto attack those social workers, like in

(29:11):
the case of I think Gabriel Fernandez, where this poor kid was tortured by
his parents step stepdad and stepmom,and the agency, the agencies that went
out child Protective Services went out tothe house and came home and the child
was taken away from the mother basedon abuse and went back Child Protective Services

(29:33):
CPS sent the kid back and theninevitably the child was murdered. So that's
that's easy to attack. But thebig picture is, and I'm not defending
those case workers, but I amdefending case workers who can't do their job,
and that's because they're so understaffed.To give you an idea of what

(29:55):
this investigation has shown, and thislawsuit has fact argued, kids spend an
average of five hundred and fifty onedays in custody in San Berdino County Agency,
one hundred and four days longer thana national average. Case workers in
San Bernardino. Well, let meput it this way. The Child Welfare

(30:15):
League of America recommends case loads oftwelve to fifteen children per staffer. In
San Bernardino, the case workers workfrom seventy to ninety children each. I
mean, can you imagine foster homeswere failed to properly be vetted, required

(30:37):
meetings and inspections, or instead perfunctoryfly by visits. And I gotta tell
you, Yep, inadequate, noquestion about it. Failure of the system.
But I also tell you that itis in big picture. We just
don't give these agencies enough money tohire social workers. And even when you

(30:59):
do, they don't want to work. It's hard to find qualified people,
it is hard to place them,it is hard to train them, and
in some cases, the entire system, it may me even be dangerous for
social workers. So the whole system, top to bottom has to change.

(31:19):
And there are ideas out there thatare brought forward that makes sense. They
seem to work when their pilot programsare established. But you know the problem.
Two problems. Number one, theycan't get enough people. Number two,
there's one, there's not enough money. There isn't enough money. Oh.
The State of California, the ChildProtective Services of the state, that's

(31:42):
the California Department of Social Services,also named as a defendant. You think
that's a winner lawsuit. Yeah,I think so. I don't know.
If you're a fan of brunch,I am. I love brunch. It's
just one of those things I enjoywaking up on a Sunday morning. I
enjoy reading the newspaper, having acup of coffee. Sometimes early in the

(32:07):
morning, I'll have my bagel andit's really wonderful to have the the streaks
of inc on the bagel. It'sjust there's just something wonderful about that.
Now on special days I go andhave brunch. Brunch actually used to be
fairly cheap. Brunch at a goodrestaurant today is astronomically priced, especially if

(32:30):
you go to like a major hotel, for example, that are really known
for their brunches. But we're talkingabout regular hotels here, or excuse me,
regular restaurants here. And there's asort of a new way of doing
businesses, and that is restaurant ownershave really discovered brunch. I mean,
not that they didn't know about brunch, but how about just brunch restaurants that's

(32:52):
it. They serve brunch. They'reopen from nine where am where they serve
brunch to about three where they servebrunch throughout the entire day. And there
were used to be a few ofbreakfast lunch places that specialize in breakfast lunch,

(33:15):
and then they would close early afternoonand they go home, and they
weren't dinner places because usually breakfast lunchesare a lot easier to make, They're
a lot less complicated. People don'texpect the big dinner items. But what
restauranteurs are discovering is that people arelooking at brunch as a seven day a

(33:37):
week event. Used to be justweekends and it made a lot of money
for restaurants that really profitable. Nowpeople aren't waiting till the weekend. The
ability to indulge is really all aboutthe changing nature of how we work,
because well, we work more selfdriven hours and all of a sudden we

(34:00):
like comfort food and comfort food.What are you eating Tyler? Tyler's munchee
on something in a little breakfast britto? Oh okay, is that Brian gangs
fairly brunchy, although there should bea brunchy burrito. It's a little on
amanopiotic. Anyway, you go andat brunch, what do you have chicken
and waffles? You have eggs,Benedict. There's this story is out of

(34:22):
the Wall Street Journal and it talksabout seafood with warm grits. Hmm,
I'll take the grits, not you. I don't understand grits, oh,
Jennifer. I mean grits. They'reso good, they're tasteless. It's like
polenta. There's nothing there. Youhave to put all kinds of crap on
it. Okay, We're going todinner sometime and you're gonna order all that

(34:44):
and I'll just take it off yourplate. I've had grits once in my
life at a restaurant once, andno surprise, the waitress, the female
server had several teeth missing, justone. Because it's a Southern thing and
considered a condiment down there does notmean it's all rednecks you like it,

(35:07):
although I am a redneck and Ilike no, I know that. But
yeah, okay, so anyway,we can go on and talk about grits
all day long. We've done thisbefore. We just went to a brunch
for Mother's Day for my mom.You were talking about like the different things
that are on it, and itwas everything from bacon and eggs and sausage
and whatever too then as you gottoward the end of the line, it
was green salad. They had chickenparmesan. They had some sort of pasta

(35:31):
thingy going, and so it waskind of if you wanted breakfast or lyne.
Oh no, it's great. No, this is filling. That was
it. And all of those arefar cheaper to make. And were there
grits? There? No grits,That is correct. Why because people like
you eat grits and people like medo not. I live here in southern

(35:52):
California. You grew up in squirrelHollow. I understand that. Hey,
my birth certificate says so there.But yeah, we honestly up there.
I don't I don't remember it.But biscuits and gravy, and with like
that gravy that's like coagulates. It'snot even running with big chunks of sausage.

(36:12):
Wow. Hey, your first car, did you take it off the
cinder blocks from the front wall thefront yard? No, it was an
eighty five Honda Prelude. Okay,Red, all right, now the other
thing, let's go back to goingback to brunch and this discovery or actually
this reinvention and moving towards just lunch, just Sunday brunch to all day or

(36:36):
all week is a huge profit makerfor restaurants especially, and this is I
go to brunch places all the time. When you pair it with for example,
all you can drink mimosas. Everybodyhas seen that, and you wonder
how the hell do they do that? And if you go back behind the

(36:58):
kitchen you will see the bathtub waythat where they make the champagne and fill
up the bottles and people just loveit. I guess if you pour enough
orange juice and it'll kill the tasteof anything. Let me give you a
couple of examples before we break.There is a Gotchas that's is actually named
Gocha Breakfast Bar in Atlanta. AndGotcha Hawkins was a hairstylist and she moved

(37:22):
from Miami to Atlanta and she livesin a well. There was a high
end black neighborhood she was living inand there were no brunch places. She
opened it up, by the way, just to let you know. She
opened it up a couple of yearsago. She plans to open two more
locations. Michael Reid, executive chefand co owner of Poppy plus Rose.

(37:44):
This is La two of them nineto three pm. Launched near the Flower
Market, where there wasn't brunch competition, now there is. He has dishes
like brown butter waffle sounds great,brine and spice fried chicken that sounds great.
Does three million dollars a year,which is pretty good. Then you've

(38:06):
got Oh this one, I justlove. There is a national chain in
Denver, opened its sixtieth location inLobock Snooze Am Eatery, and the menu
features habannaro, pork belly, friedrice, and Elote breakfast pasta. Wow,
that's impressive. First watch out ofFlorida. I mean, let me

(38:30):
give you an idea of how,how what kind of restaurant, what kind
of success this has. It's adaily breakfast, brunch and lunch chain,
a mainly brunch, French toast,breakfast, tacos, granola bowls. But
revenue has gone from four hundred andthirty six million dollars three years ago to

(38:52):
seven hundred and thirty million last year. Can you imagine the kind of money
that brunches make? And I loverun love it. I want to direct
your attention to some advertisements that arespringing up, particularly on the Internet.
One of them is It's a blacklady with bright colors and smiling and celebrates

(39:19):
the arrival of some desperately needed cashand the red the website of what is
called well, I'll tell you whatit's called in a minute, and it's
this you have to know about.So the website of one of them starts
with che ching, and there's amom and a child who look for They

(39:40):
look to be jumping for joy.It's pay day, all day, every
day. Funds are available in minutesto help pay for groceries, rent,
family celebrations without mandatory fees or interests. So how do they do that?
No mandatory fees or interest So yousee another app and there's a photo of

(40:01):
six female workers and a man laboringand call centers, nursing homes, restaurants,
retail and the voiceover says, paybills on time, no late fees,
no overdraft fees, no need forpayday loans. There's a third I
want to talk about and this isbacked by actor Ashton Kutcher and NBA star

(40:22):
Kevin Durant, and they're on TikTok. There's a video on TikTok. There's
a young black woman approach while she'sjogging down the street. She's in jogging
shorts, and you hear the voiceoverwhat if I told you talking to her?
What if I told you I couldget you some money right now?
Seconds later, she looks at thecamera goes, oh my god. So

(40:46):
these apps, these particular apps arecalled arnin, Daily Pay and bridget are
all examples of a product called EarnedWage Access. And this is one you
probably didn't know. It has advancednine point five billion dollars to consumers in

(41:07):
twenty twenty, because that's the lasttime they have numbers. They put together
fifty six million transactions. And thisindustry is growing like crazy. So it's
similar to a high cost payday loan. And we know these payday loans the
interests could be in the hundreds ofpercent annually. And what these apps do

(41:29):
is offer workers emergency cash I headof paychecks, proven upcoming paychecks, got
to prove that paycheck is coming up. And here is the problem with them.
They're disproportionately used by women, especiallywomen in color, especially single moms.
Now you would think that these womenparticularly are well, they're being taken

(41:53):
at advantage of they're really vulnerable becausewhen you look at payday loans, taken
out by the poor earned way Jack'sas users are usually college educated, middle
class, full time workers. Thisis a report by FTI Consulting, a
consulting company. It looks at thisthe typical recipient makes fifty thousand dollars a

(42:13):
year, almost fifty one thousand dollarsa year, still living paycheck to paycheck
because in reality, fifty thousand dollarsdoes not support a family comfortably, especially
here in southern California. Two thirdsof the users were women, half were
people of colors. So how dothese companies operate? Well, they're in
a gray area of the law.They have found the loophole and they can

(42:37):
function like a payday lender, butno consumer protection rules like payday has.
The federal government doesn't regulate them likebanks. The products are free from scrutiny
under the Truth and Lending Act.That, by the way, is an
opinion that was written by the ConsumerFinancial Protection Bureau during the previous administration.

(43:00):
The companies claim no mandatory fees,no interest, technically correct, but the
sticker price, man, that's high, and there are lots of them and
most people are jumping right in.Who use this? In California where most
of these companies are based. Regulatorshave started to look at this. In

(43:22):
March, the Safe Consumers Protection AgencyDepartment of Financial Protection released or before it
saying that these earned wage access appscharge an average interest rate annually between three
hundred and thirty one percent and threehundred and thirty four Can you imagine paying
three hundred and thirty one percent everyyear? You borrow one hundred dollars and

(43:46):
you are paying back three hundred dollarsfor that hundred dollars you borrow. You're
better off going to the mafia.You're gonna pay less than vig And why
is it so expensive? And whyare people so upset about this? Well,
here's what happens is they almost becomeaddicted to these apps. One mother

(44:09):
that was interviewed Melissa Barola. She'sforty six, a mom of three adult
children's single mom makes not a lotof money nineteen dollars and fifty cents an
hour and a nonprofit and her carbroke down and she needed five hundred dollars
just to get to work. Thisis paycheck to paycheck time. So last

(44:30):
September she cobbles together five hundred dollarsfor repairs and She went to three different
earn wage app company, each ofthem charging her a fee. One of
them called Dave and it's an LAbased neo bank backed by Mark Cuban by
the way of Shark Tank. Billionairealso encouraged her to tip the company on

(44:55):
top of the seven dollars fee shepaid to get cash instantly, and there's
a default on it, a sixdollar tip on one hundred dollars advance.
So every hundred dollar advance they askfor a six dollar tip. And if
you have three hundred dollars, it'san eighteen dollar tip that you're taking out.

(45:17):
And you would think, who doesit go to? This is an
app. This is what happens whenyou simply go on an app. It's
like transferring money on a website oron just you your app, your phone
app. So this is a newone Earned Wage Access and it is an

(45:39):
app where you go on and youborrow money against a paycheck, a proven
paycheck that's coming in. And asI told you, there's three of them
in this story in the Times,and usually it's a black or Latina woman
because those are the customers for themost part, not real poor people too.

(46:02):
The average income of someone who goeson the app and borrows money is
about fifty thousand dollars a year,but still living paycheck to paycheck. So
these are ads. I mean they'reridiculous. You see a woman jump for
joy. Oh boy, I gotmoney. I can pay off my bills.

(46:23):
I mean, it goes on andon, like the utter joy that
people have in getting this advance ontheir pay and by the way, paying
it back at about three hundred percentor more. However, and oh,
by the way, no fees,no added fees, and no interests or

(46:43):
actually no mandatory fees and no interestSo how do they make their money?
Well, there are a few feesthere. They charge their money by transferring
the money, which means of coursetheir fees. So I don't know how
they get away with that. Tellyou how they get away. It's not
regulated. This stuff is not regulated. Heyday loans are regulated. Certainly car
title loans are regulated. This isnot This is learning to slip through the

(47:08):
cracks. And very smart financial peopleare involved in this. One of them
Mark Cuban. Ever seen Shark Tank. He is, He's one of the
regulars on Shark Tank. He's abillionaire, owns the Mavericks and is an
entrepreneur of many businesses. He ownsone of these, loaning money at insane

(47:28):
prices. Now a lot of themoffer a free version of the app that
features financial planning tools, but youcan't get a cash advanced unless you pay
a subscription, which is much likewhat the banks do. You pay a
fee, but that's regulated. Iguess that's the same as a subscription.

(47:50):
You pay an annual fee, soyou have a subscription. There's one backed
by Kutcher in Durant, Ashton Kutcher, Kevin Durant names sound familiar that charges
ninety nine a month for a plusplan people who need cash a SAP.

(48:12):
Then you have others that offer freeadvances for customers if you're willing to wait
up to three days for a banktransfer, and charge a fee if you
want cash immediately. And this ismuch the same as a credit card.
If you use a credit card smartly, you're not going to pay any interest
at all. I don't care whatthe credit card charges me an interest,

(48:34):
because I pay my bill at theend of the month. Now granted,
I first of all, I don'tspend that much on credit cards. And
number two, I thank goodness,earned a good enough living where I can
do that. A lot of peoplecan't. I understand that. And the
problem is people who can't shouldn't usecredit cards at all. I mean,
should literally have a checking account andsend checks out or send or man money

(48:57):
under the mattress and send it viaUS mail and put on the cash.
There's cash in these envelopes. Pleasedon't touch it. Now. Tell you
what else the apps do which otherapps don't do, and that is they
suggest that users pay tips, justlike you tip an uber driver. But
these paycheck chips. Tips don't goto any worker. I mean, it's

(49:22):
an app. There's an algorithm thatruns all of this. So where do
they go. They go to thecompany, and there's a default. In
one case, it's a six dollarsper one hundred dollars default tip. And
when you don't tip, when it'snot a default, or you say no

(49:44):
thanks and you don't tip, youactually get a ding and you get an
email saying, hey, you borrowmoney from us, but you didn't tip.
And you have someone who's supposedly aworker looking at you and saying,
hey, you didn't tip, pleasedo so, and your heart sort of

(50:06):
goes out to them. Well,my heart doesn't. But it's you know,
one message reads and there's a womanwho's interviewed for this. We really
could use a tip for the lasttime you didn't tip two that's allowed under
the law. Wow. One ofthe apps tells that it tells the story

(50:28):
of a tip going to a charitycalled Feeding America, which under the law,
if they if you get to givehim a tip of ten dollars,
they can send twelve cents to thecharity. And that's legitimate. I mean,
this truly is the craziest stuff inthe world. You look in the
cracks. Now before we bail,Gary and Shannon are broadcasting live from Bravery,

(50:51):
Brewing and Lancaster today, starting justabout now to one am. Guys,
how's it going over there? Wait? One pm is probably the better
time for us? Oh, I'msorry? All right? Then, I
say one am. Yeah, it'sa long day. Who knows where the
day may lead. We might behere till one am. So what's going
on over there? It's beautiful,the sun is out, not a cloud
in the sky, nice breeze,it's the perfect data. Come on out

(51:15):
and hang out with us. Absolutelyworth the drive. To get out here,
because not only are they debuting thekfipa that they brewed for us this
year, they have an incredible pizzakitchen that they've opened up, salads,
everything well in the backyard area hasbeen built up. It is beautiful.
There's plenty of shade, there's tonsof sitting, there's beautiful tables, and

(51:36):
it's incredible. What they've done heresounds great. Actually, Okay, that's
uh bravery brewing in Lancaster starting injust a few minutes and not going to
one am because these two are justnot working that hard to one pm.
This is kf I am six fortyLive everywhere on the iHeartRadio app. You've

(51:58):
been listening to the Bill Handles Show. Catch my show Monday through Friday,
six am to nine am, andanytime on demand on the iHeartRadio app.
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