Hey, it’s Dan. Welcome back. This is I allegedly, and I’ve got a good one for you, because they can’t fix this one, guys. You’re gonna see more the same over the course of the next few months as this thing just escalates completely out of control. So before I get into it, please take a second. Like the video. Subscribe, share it with everybody. We have a sponsor today, doctor Amy. I’ll talk about her in a bit. But first things first. You know, with the chaos that we saw yesterday and with what is continuing, I want to talk to you about a few things when it comes to everything that’s happening right now, because you can’t fix it.

You just can’t. And the first thing is, I am not a financial advisor. I am not a stock trading guru. I will take your tips. I will listen to them. I will investigate what I buy and then make my own decisions. One thing that is undeniable, though, as a businessman, is that I have seen people make a lot of mistakes in their lives, and I’ve seen things pay off to where they’ve made millions of dollars. I’ve seen people lose millions of dollars. But one thing that is undeniable right now is that there are certain problems that are only going to get worse right before our eyes.

And yesterday’s cover of the Wall Street Journal had a great article, is that, hey, are banks, in fact, hiding the losses that they have when it comes to mortgages? Are they doing that? Well, I for one, guys know for a fact that they are doing this in a big way. They’re doing it on the commercial side and they’re doing it on the residential side. Now, let’s start with this and that. Back in the day, you know, during the last economic downturn, one thing that they did was they told us that they needed to book losses when a loss at a bank, whether it be a loan or a bond, when it was probable that it was going to lose money, it was going to default, they had to report that.

Okay, what does that mean? Well, probability, they said it was about 70%. And the problem with that is in 2020, they kind of changed it. And what they did was they go, hey, we want a more fluid output from you banks to tell us when you think things are going south earlier. The only problem is the banks being the snakes that they are and being the most deceptive group of people that we deal with in our lives. That’s the central bank. That’s a, you know, your local bank. That’s everybody. What they did was they didn’t tell us about these losses.

So what they did was, if it’s kind of a. If we don’t tell you about it, it’s clearly not a problem. Now, here’s the thing. Commercial real estate is a very, very simple business. I know people freak out when I say that, but you have the value of the building, you have the tenancy, the people paying their bills, and you have your expenses. It’s that simple. Now, the problem with it is, since 2021, thing that we have seen is the price of real estate skyrocket. Then all of a sudden, everybody didn’t want to work outside their homes.

Nobody wants to go anywhere. Nobody wants to eat out. Nobody wants to even go to a store. They just don’t want to deal with it. So if we do that and we don’t, you know, have these buildings and have these banks, you know, we’re not going to lose money. Everything’s going to be great as I walk across the rocks and see what I’m traversing right now. But the point was, the banks kept it quiet. With COVID if you wanted to not pay your bill, you could do that. You could get forbearance. You could have the payments put at the end.

Man, oh, man, there were so many things that you could do with these loans, and it was amazing. You could basically do whatever you wanted. Now, here is the one thing that I have said in the past that people don’t believe. But again, I had this conversation driving to this beach, to this beautiful spot to tell you this. And that Wall Street Journal is going to bring up something that is like, wow. If we talk about it now, it won’t look like this was something that just came out of the blue. But we know this. I know this.

I know that there are office buildings that the people have not made payments on for years right now. I know that there are. They talk about tenancy of 50%, 40%, but you’ve got 25% to 30% of the people in the building not paying their rent. Just, they’re there for free. And by the way, they’re using your electricity. So the place is losing money hand over fist. Okay. We saw a building last week sell at a 97% discount. You’re going to see more of this right now. Now, one thing that is happening is there are so many people that are in trouble with their mortgages right now that are not making their payments.

This includes the people that recently are out of work. And with that, it’s only getting worse. Right now, I know you guys want to see more of this than you do me. But this is a beautiful spot. This is Moss point. This is that area that they redid in the wintertime when the tide goes out. It’s just stunning out there. It’s really, really cool to see this. But again, California guys, kind of nice. So with this, you have all these mortgages that people are not making payments on, commercial and residential Blackstone realty, okay? They are a non traditional lender, a non traditional real estate company, and they right now have so many losses, and everybody’s gonna say, oh, Blackrock’s gonna own everything.

Well, they’re not, guys. They’re not. You eventually have to have. You can’t have an asset that you pay $10 million, be worth a million. Well, why would we keep that? Why don’t we just give it back? They buy these things with llcs, and they’re going to give them back the real estate market. If you follow guys like Greg Mannarino, who I love, and he’s great, I’m using round figures. Let’s say that the s and p went up 25%, and you guys get a 5% drop, and everybody wants to jump. It’s kind of ridiculous when you think about it, but I, for one, think that you haven’t seen anything yet because of the desperation of the selling.

We’re gonna get Bob Kudla on here. If you want to send me questions for Bob Kudla, I’m get him on here as quick as I can. Okay, so he’s a little busy right now, believe it or not, but we’ll get Bob here shortly, and Bob will answer your question. Send me an email at hello. And I allegedly. And put Bob in the title that way. I know it’s a question for Bob, but the commercial real estate guys, this is gonna be a problem going to make. Banks have to admit their losses. They’re going to fail. They’re going to fail.

Now, how many of you tried to log into your brokerage account yesterday, or today, for that matter, and couldn’t get through that? Happened. Happened to me. Happened to me at my banks. And I’m like, okay, I’m not going to freak out. I’m going to wait ten minutes and see if I can log in. Well, it makes you think, okay, this is it. This is done. Let me go check here. And it makes you think that this is the problem that I’ve been talking about for years. So things worked out, you could get in, but I’m telling you, you’re going to have a problem with these banks.

I’m going to give you my experience on something that you have to look at. That will happen again. And that is, for those of you that have lines of credit out there on your real estate, I don’t care how much equity you have on your house, they can cut these lines of credit off like that. When the economic downturn happened in 2008, they started to cut lines of credit off. And I had a $200,000 line of credit on a piece of property and wrote checks here, wrote checks there. Everything was hunky dory. Paid it off, paid it back.

Anyways, started to hear about people having their bank, their, you know, banks come off their lines of credit. So I’m like, gosh, I’m going to take 5000 here and 5000 there. And one of the checks that I wrote was to Wells Fargo bank. One of my accounts at Wells Fargo bank, which I hate Wells Fargo, I call them Hells Fargo, by the way, and the bank that had the line of credit, which was world savings at the time, cut it off and cut off the line of credit. So what they did was they would slow play paying those checks.

One of the checks went through, and one of them that I wrote to my Wells Fargo account did not go through. So with that, the check basically bounced, right? Stop payment, put on the check. So I get a phone call from the manager at Wells Fargo. You need to come in. We have a real serious problem here. Wasn’t overdrawn on the account, wasn’t anything like that. You wrote yourself a check, and the check was no good. I said, what do you mean it’s no good? Here’s the letter from world Savings where they closed the line of credit.

I had no idea they were going to do it. Look at the date of the letter, look at the postmark of the letter, and look at the date that I wrote the check. Okay, well, that’s probable that that’s not, you know, that you didn’t mean to do this, okay, but we want you to close the account. I’m not closing the account. Why would I do that? That’s ridiculous. So what they did, Wells Fargo and world Savings did this with people, was they demanded that people close their accounts or they would just close them for people. You’re going to see this happen again.

You’re going to see lines of credit cut. I have a family member who had a hundred thousand dollar credit card, okay? Business credit card. And he had it in his safe under lock and key, and didn’t use it. Hey, that hundred thousand dollar credit line is null and void, guys. It’s done. So you’re going to see this. Now here is the thing. Some of us are living on our credit cards right now if that is important to you. I’m telling you. I’m not telling you to go borrow money against your credit cards because I don’t believe in getting yourself into debt.

But if there’s any shenanigans, they’re going to cut this off like that. And it’s going to be faster and quicker this time than it was last time. So you’re going to see this again and you’re going to see craziness happen. When it comes to the commercial real estate. You have not seen anything yet with the foreclosures. My buddy who owns the foreclosure company is getting himself ready to foreclose in these buildings. And the money is huge. It is absolutely insane. But the amount of business is unbelievable. How do I train people down? How do I get a staff? And again, everybody thinks their problem with business is money.

How do I train people to do this? Now here is my buddy who drove in from Las Vegas this morning and on his way in had scheduled eleven foreclosures. And on the way in they wanted him to do nine more foreclosures to post the houses. Okay? And then tomorrow, hey, I’ve got an auction down. We’re gonna have a bunch of auctions come on out. Let’s do auctions together. You know, come see me do my thing. It’s getting busier, guys. They cannot hold the dam. The water is too high and there’s too much of a problem right now.

Mark my words on this, guys. Mark my words on this. So stock market’s one problem. The banks are a huge problem. The commercial real estate’s a problem. But when you put that cauldron of crap together, it tastes terrible. And it’s going to be the thing that’s going to decimate the economy. The black swan and the lie, the lie that was on the COVID of the Wall Street Journal talking about, hey, do you think banks are holding back on their losses? I am telling you this, guys, that, that there are hundreds of thousands of people that have not made a house payment in years and have given story time to the bank.

Okay? And think about, let’s say, your house payment. See, everybody has different house payments. But here in California, let’s say you had a $3,000 a month house payment and you didn’t make the payment for years. You could never catch that up again. Okay. So it’s going to be absolute chaos. And you’re going to see this only get worse. Correct me if I’m wrong. Let me know what you think about this. But again, this cannot be fixed. It’s going to go a certain direction before it gets better. And, you know, again, guys like Greg Mannarino who follow the stock market and follow trading, certain things that he says make sense.

The one thing that makes total sense was if we’re in such dire straits, you know, if they, if they, in fact, lower interest rates, it’s because the economy is horrible. Don’t forget that. If they lower interest rates, it’s because we are in absolute, utter pandemonium. But they’re lying to us and telling us it’s bidenomics and we’re doing great. And, you know, it’s not. So it’s gonna get worse before it gets better. A lot worse. Let me know what you think about this. Let’s talk about our sponsor, Doctor Amy. Doctor Amy is a board certified physician and natural nutritionalist, and she has asked a question for a while.

And in a country and a world where we have all these advances in health, why is it that we have foods that they advertise as health foods when in fact they are not? So here’s the thing. There are three foods that are pitched here in the United States that they are health foods when in fact, they’re illegal in other countries. You can do yourself a favor and you can get rid of these foods out of your diet. If you go to three harmfulfoods.com Dan, you can see what these are and how you can get them out of your life.

Now, Doctor Amy, you know, she’s been practicing this for years. You can reverse, you know, belly fat, joint pain, things like that. Take a look at this today. But I go to threeharmfulfoods.com dan. It’s the number three. Take a look at it today. But again, why is it that we have these things that they call health foods when they’re not? Take a look at her video today. Once again, one thing that I’ve talked about in the past is having multiple bank accounts, multiple brokerage accounts. You know, clearly, if you have a retirement account at one of your places, you can’t have nine retirement accounts.

Clearly, you have to have one. But again, do not panic if you cannot get into your account when you have days that are super busy. I spoke to Fidelity and I spoke to different places, Charles Schwab, and said, you know, is it normal? And they just said it’s just sheer volume, sir. Just sheer volume of people trying to log into their account. You know, Robinhood, webull, everybody had the problem, so don’t panic now. Jamie Dimon, man of the people. Jamie Dimon, greatest guy in the world, okay? Mister 36 and a half million dollars a year. He’s just like you and me.

Don’t forget that. That’s his salary. Anyways, Jamie Dimon was at a bipartisan group in Washington, DC, talking about the economy and was talking about, is the american dream still attainable? And he says he don’t know. He doesn’t know. Doesn’t think it is. Now, they had asked 8800 people what they thought about this. And 53%, only 53% said it was achievable. And what that is is owning a house, owning a car, having a family, having a good life, being debt free. Huh? Okay, you added that debt free part in there, Dan. That’s kind of crazy. So people don’t have the ability to do this right now.

People are upside down. And Jamie Dimon said, you know, we have to look at the how when you go to the poorer communities, you’ve got worse health, you have more crime, the schools are terrible. Duh. Okay. You know, if you listen to Barbara Corcoran, she says, buy a house with the worst schools because you’ll get a better deal on real estate. Well, again, you know, this is a perfect example of why you don’t do that. This is insane that you’re trying to pitch this, but do you think the american dream is still salvageable? Do you think it’s out there? I’m telling you guys right now, you know, I always say, where can you buy a house for 400 grand? And then you guys send me all these little slices of places to live.

But you need an infrastructure. You have to have it so that you can go out and you can go to dinner, you can go to, you know, the vet, have your dog taken care of, you get a place to get your nails done, your hair cut, you know, and you’ve got places like Rite Aid. Do you know that one third of the Rite AiDS have closed right now? The drug stores? That is nuts, guys. They’re going to close another 40 right now this month. And there’s a list below that you can look at of the next 40 to go.

The point is that you have to have drugstores, you have to have local banks in your community, because not everybody’s driving everywhere. Not everybody has a Tesla, and they can go charge it and wait for 2 hours to charge their car. You know what I mean? So with that, you’ve got to be able to go around Bucco di Beppo, which arguably the worst italian food I’ve ever had in my life. I do this thing, and when my late girlfriend was alive, we would do something where if we had a good experience someplace, we would go back there.

She and I came up with the conclusion that we never had a good meal at Bouquet to Beppo. And it was always somebody’s birthday or a party or a business event that we had to. We got invited to that s hole. So. Asshole. Buca de Beppo just filed for bankruptcy. So there’s one in Huntington Beach, California. And as far as I’m concerned, it couldn’t have closed soon enough. So horrible food, horrible service, just overpriced, too. So. But again, you can go buy a $400,000 house someplace. Here’s the other thing. For all you realtors out there that want buyer agreement signed and things like that, you’re going to have a problem with this.

It’s going to happen. But I’m looking at two houses right now. Okay. That’s what I want to do. I also think that you should wait. Do not buy a house. I’m not going to buy a house right now. I am looking. I constantly look. And I have to give my son credit. As he graduated college, he’s looking for a new apartment. He’s out researching the community, researching crime. You know, I don’t have kids, but why am I looking at schools? I guess the schools are pretty good. Because you want to live in a nice neighborhood. That’s the point.

But I’m telling you guys, unless you’re convinced, and people convince themselves of a lot of things, you want to put strain in your marriage, buy an asset that’s depreciating. Buy a house that will be worth less than you owe on it. Buy a building that’s worth less than you owe on it. Want to experience bankruptcy? Have at it. But again, wait. Right now, just wait. Just wait. You’re going to have an influx of properties from these foreclosures. You’re going to have houses available for sale. Wow. I had no idea those people were in trouble. Yeah, they are.

And you’re going to have this out there. It’s going to hit the market. The realtors out there that can sit there and say that they’re in the know and they know everything. They don’t know everything. They don’t. They just don’t. I got the guy who posts the houses. I got the guy who’s going to be posting commercial buildings left and right that he won’t have enough people, and they want to train people to do this. That’s where it’s headed. Guys, the stock market is going to be a byproduct of all this. Do I think it’s going to go down? My guess is yes.

But again, look at the expert. Get some solid advice right now. But I have experienced divorce. I have experienced business failures. I have experienced being dead broke. And it was the greatest thing that ever happened to me for a lot of reasons, because I respect money now differently and have a different feeling for it. But I also am a guy that if I don’t know the answer to it, which I don’t know a lot of things, I constantly reach out. And the advantage to being Dan is that Dan can call a lot of people, hey, this is what I do.

Oh, yeah. What can I do for you? And get a lot of free advice. A lot of free advice from attorneys, a lot of free advice from people. But try this yourself. But if you can wait right now, just do yourself a favor and wait. Just do yourself a favor and wait. I love Josh Altman from the Altman brothers, and I will have him on this show someday. But the two things about Josh Altman that I have a tremendous amount of respect for was that he was in the mortgage business during the 2008 nonsense when everything went south and they lost everything.

And when his brother went down for the count, okay, then he met Heather, then he turned everything around. Everything was fantastic since then. But they’re having a difficult time selling houses right now in the LA market right now. And if you watch his show, he’s talking about that. Is he stupid? Of course not. The guy’s brilliant at what he does. Mark my words. Guys, just wait. Please wait. Please wait. I’m going to finish this video with these last couple stories. And first one again from JP Morgan. Great story below about how they were talking about how this may not be the buy the dip moment.

We may have not seen the bottom of this market. It may go down much further. I think so. I think you’re going to have things that could set it off. Remember what set this off? You really think it’s the labor, the labor numbers that they lied to us about that are much worse than they’ve even told us? You think it’s that? Okay, that’s the thing that made the stock market drop like that. No, it’s going to get much worse. Now, final, final story is, I love this. When I travel, I don’t like Airbnbs, guys. I like hotel rooms.

When you travel places, because they will take care of everything for you. Clean your room. You know, you can have coffee at 715 in the morning, you know, before your meeting. You can have all that stuff and not worry about it. I’ve seen nothing but problems with Airbnbs lately where they clip people and take advantage of them for, hey, our cleaning deposit. You can have my place for next to nothing. It’s three grand to clean it. Well, my cleaning lady is fantastic. She’s not charging three grand to clean a house. So anyways, you get what I’m saying? Sonia Denning went on holiday, and she’s kind of an Instagram model, kind of an attractive woman, and she saw a great place to stay.

And when she got there, it was a little bit different than what she thought it was. And what they did was it was in a basement room. Room was in the basement, but they stayed. A poster above the window with an outdoor view of the ocean. And of course, she was furious. But, hey, that’s what you got. That’s the room. Oh, I’m sorry. We have a poster there that shows the outside, and she had no idea that wasn’t the view that she was getting, so. Caveat emptor. Caveat emptor. Isn’t that what they did to Greg Brady? Anyways, let buy her beware.

Okay? Anyways, like, subscribe, share your thoughts. Let me know. Remember, if you want to get a hold of Bob Kudla, okay. Send me an email@hellogedly.com, and put Bob in the title. And if you want to send me a story, you can do the same thing. Okay? If you want me to use your name, let me know. Okay. Onward and upward, guys. But remember, they can’t fix this. This is going to get much worse before it gets better. You will see. Okay, I’ll see you soon. It.
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