Bad News for the Boat Industry
Summary
➡ The ongoing economic issues are providing opportunities for people to save significant amounts on purchases like ski boats, cars, and real estate. However, the precarious economy, coupled with escalating national debt and a questionable housing market, suggests a potentially advantageous investing environment for precious metals like gold. Notably, Bank of America recently faced a $12 million fine for flawed mortgage application processes. Furthermore, leases of the so-called ‘open airspaces’ in California, numbering as high as 601, pose potential hazards due to the substances stored there. Rising rates of hacking occurrences are alarming for sectors like banking and genetics testing companies like ’23ANDMe,’ with personal data being exposed. Meanwhile, Virgin Galactic’s prospects are dimming with its founder Richard Branson’s declaration of financial withdrawal from the venture, suggesting the fleeting popularity of commercially-funded space exploration. Increasing stories of retail crimes illustrate another troubling trend, while issues like inadequate shuttle services in popular venues like Pinnacles National Park in San Francisco surface due to workforce shortages.
➡ Pinnacles National Park is closed due to a shortage of licensed shuttle operators and, in a surprising move, a content creator named Bud has bought a state park in Oklahoma with no fee upfront, only the responsibility of paying for maintenance. Meanwhile, a frugal 25-year-old millionaire lives within means, preferring to save rather than spend on luxuries, illustrating that substantial wealth does not equate to extravagant spending. Lastly, there are predictions of a major recession in 2024, with one industry insider reporting a 20% downturn in infrastructure manufacturing and potential job cuts in the future.
Transcript
And today we have a sponsor, Patriot Gold Group, and I will cover them a little later. Now, we talked about this about two years ago, about how you were going to see boat prices drop to the floor when we had this feverish buying, and now it’s here. It’s live, it’s right here. And what I mean by that, first of all, is they go out by the shipyard where they build boats and stuff like that.
But one thing that’s absolutely fascinating with this is in 2021, we saw a peak for boat purchases. We saw 1. 4 million boats purchased. In fact, everything with a motor. All terrain vehicles, UTAS, utility terrain vehicles, anything that had a motor on it, motorcycles, RVs, everything went through the absolute flipping roof. Now this, they’re building custom boats out here. Okay? It’s a different clientele. People that are getting their boat worked on, these are not people that are worried about making a payment on a boat.
But the one thing I want to talk to you guys about that always fascinates me as I do this, is how many of these are paid for? Seriously, has everybody paid cash for their boat? Nobody has a loan against it? Well, that’s not the case. And what we’re seeing right now is that boat sales alone let’s just start with that. Boat sales alone were 1. 4 million in 2021.
They dropped last year for new boats to only for this year excuse me, 2023 269,000 boats and used boats for sale. Right now, they anticipate that there’s 900,000 boats that changed hands this year. The problem with it is the price is dropping. And if people learn the magic word, which is patience, if they learn patience, they can save themselves a tremendous amount of money. Now, I love walking here, because every time I come down here, there’s different boats down here that people are working on.
But this is the shipyard where they work on stuff. You can hear them grinding and doing stuff. Behind me, the other side over there is where I walk in the dock, the public dock that I walk on. And you can just see how this is over the fence and just beautiful, beautiful boats. But the point is that when COVID hit, everybody was out feverishly buying everything, and you had everything that moved, jet skis, wave runners, boats, everything.
But boats have fallen to the floor. Now, a lot of problems with this is know, here you have all these environmental rules that they’re trying to inflict on boat owners and the boat owner industry. The National Marine Manufacturers Association is trying to make it so that people don’t use a lot of ethanol and things like that inside their boats because of how it can damage the motors and the engine.
Man, oh, man, this is just a beautiful, beautiful spot out here. So they’re making the boats. They’ve got the boats docked here. But people, I’m telling you guys right now, let’s not even talk about cars. We’re not talking about cars right now. We’re just talking about everything else. With a motor right now has fallen to the floor right now. As far as price, and when you look at boating and how expensive boat insurance is, it’s gone through the roof.
On an average, you’re seeing a 40% increase in people’s boat insurance. Well, okay, that’s a lot of money. The problem with it is that people, a lot of them that have boats that are paid for, go self insured. So if they get into an accident, or if they wreck it or somebody damages their vessel, they’re in deep trouble because they have no way of fixing it, or if they have an insurance claim where somebody gets injured, things like that.
Big problems ensue with this. But what you’re seeing right now is that these boats that are for sale right now are being sold at such a dramatically discounted price, and you’re seeing all these different problems with waterways, with boat docks. For the first time here in Newport Beach, California, you’re seeing that there’s boat slips available that normally had a ten year waiting list for this. And a lot of people what people do also is let’s say that they want the slip because it’s in the right spot.
You can park here. I’m right by the Galley Cafe, which has been here forever, and the Flack family has owned it forever. And if you want to have a boat down here, people buy people’s boats just to get the slip. It’s crazy, okay? More and more boats are getting repossessed than ever, happening all over the place. But this also goes to motorcycles. It goes to dirt bikes. It goes to off road bikes.
With the invention of electric motorcycles, it made it so that the enthusiasts that may have gone out and spent five grand on a dirt bike, not doing that anymore, they’re spending $2,000 on the electric bikes, trying it out, riding around, not taking it that seriously. But you’re seeing an abundance of motorcycles that are for sale right now. So this industry is done. And again, if you have patience, you’re going to be able to get a tremendous deal on all this.
And that is a word that most people don’t even know. They really don’t. They don’t want to wait. They want immediate gratification. That was the problem with COVID Now, one thing that we’ve talked about in the past is that during that 2021 time, you saw things like CarMax I talked to a lot of CarMax salesmen. Again, they’re order takers. People would walk in and say, how much is the car? I have a stimulus check.
I want that car. I want the lowest payment I can get. I don’t care about the price of it. Get me in the car, but put the payment off as long as you can. People did this with boats as well. So when you have an industry that has an abundance of inventory and you have insurance problems, you have fuel problems, you have places to park it. Again, the three greatest days of a boat owner’s life are the day they buy it.
The day that three hot chicks walk up to you and say, hey, do you guys have any drinks? No, but we’re going to the barge to get drinks. Hop on. Okay, that’s the second best day. And the third best day is the day you unload that thing and you get rid of that headache, and it’s somebody else’s headache. Okay? Three best days of a boat owner. Now, people that do this, people that are anglers and people that are fishermen, this industry right now is seeing an abundance of inventory of bass, fishing, boats, everything.
It’s crazy, guys, you’re seeing this at a complete inventory glut right now that’s for sale. Now, these are the rich people. Guys, let’s face it, okay? This is a lot of people that have their boats that they’ve had forever. And whether they’re paid for or not, I have no idea. None of us do. We don’t know the financial status of any of this. But what you’re seeing is more and more people right now that are losing the boats.
And again, you want to buy a boat, talk to a boat. Financer the yacht sales that are down. Think about this. All the yacht sales that are down have dropped to the floor. There is so much inventory that they have, so much used inventory that they have. You’re going to see the same thing with RVs. RV sales have absolutely dropped. Everybody wanted to get out of town during COVID in 2021.
Again, peak sales. The last time that they saw a drop like this was in 2011 at the end of the last financial cris when everybody had tapped out all their credit lines and everything that they had. And that’s when they saw sales this bad. So I’m telling you, if you want to buy something that moves anything, okay, we’re not even talking about cars right now. We’re just talking about boats, motorcycles, utility vehicles, ATVs, RVs, anything.
The price is falling so fast. There’s tremendous deals. But the other thing is the maintenance. The insurance has all skyrocketed. That has not gone down. That’s gone the complete opposite direction. And most people cannot afford this. So share your thoughts on this stuff so far because we haven’t seen the end of this. But again, as you see this inventory and see these boats that are for sale. You’re seeing prices that are coming down and you want to buy any of this stuff, go to the boat, financers the banks that carry boats, go to them.
That’s where you’re going to get the tremendous deals on all this stuff. So this is beautiful. It’s just such a great area. These are all the private docks places I’m not supposed to be at, guys, actually. But anyways, to prove a point, though, this industry, you haven’t seen anything yet. You want to buy a ski boat for the river. I know people that have talked about it for years and they said, I’m buying my ski boat.
And think about this. People have ordered custom boats. People have spent $20,000 on a paint job. And you know what? Now they can’t afford it. They have to get rid of it. Look at this guy working on this thing right now. So as this happens, their loss is going to be somebody else’s gain. But if you go out and if you look at this stuff right now and you look at the inventory and anything and do your research, you’re going to be able to save a bloody fortune on all this stuff right now.
So do some research, guys. Look at what you want and find it because I’m telling you it’s going to go down now. The real estate agents and the home sellers, oh, damn. We’re going to see interest rates go down and you’re going to see prices skyrocket. It’s going to happen with this. Think about this. There are millionaires in Los Angeles that are selling houses that throw in things like Porsches and Corvettes and boats are being thrown know, hey, buy this house, get the wave runners in the trailer, we’ll transfer it over to you.
That’s happening all the time right now, guys, all the time. So do your own research. Check it out. But I love coming down here. It’s just a different area for this. But man, oh, man, when you see that prices have started to drop and you see that the inventory is going through the roof on anything, it’s time to buy, guys. Okay, but how much further is it going to go down? Share your thoughts on all this stuff.
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You don’t want to miss this. Call the good people at Patriot Gold today, 88833 00:14 31 and get your Free Investor Guide. Let them know that Dan from I allegedly sent you it’s absolutely no obligation. Now, there’s a few other things to cover in the economy right now. Bank of America, man, oh man, they’re getting hit lately. They just got fined another $12 million for inaccurately reporting people’s applications on mortgages.
And when you fill out an application, there’s certain data that has to be reported to the Feds since 1975. Bank of America violated that, and now they’re getting fined $12 million for this because they said things like people declined to comment when it was on the applications and the bank was just lazy and didn’t want to report the information. The next thing is around the country, I’m sure you heard the story where there was a fire under the Ten Freeway in Los Angeles, and come to find out it was a fire in an area that was leased by the state of California.
How about this? That’s called an open airspace, which, hey, you want to lease this from the state of California? There are 601 open airspaces in California that are currently for lease right now. Isn’t that wild when you think about that? All those different places under freeways, different locations. And I never really looked at these places until this happened. But they say that there’s 39 potential places that could have fires and could have questionable damage with things that are stored there.
Now, this substance started on fire. They were storing things like hand sanitizer and things that just made it burn like crazy. And now they’re saying that there could be 39 more locations like that. Isn’t that wild to think about? Who knew? It’s just unbelievable they would let this happen. Now that thoroughfare the Ten Freeway. If you’ve ever been to a sporting event at Staples Center or the Crypto Arena, as it’s now called, you’ve gone down the Ten Freeway.
It’s such a major thoroughfare. Plus also for the manufacturing in La. That is the area to drive down. So it destroyed a lot of things when this happened. So share your thoughts on this stuff so far. Another day, another hack, but this one we already heard about and that was 23 ANDME. But now 23 ANDME is admitting that the hacking and the ransomware that was done to the company, they got significant information on people’s ancestry, their data, their personal information, all that stuff.
So if you were part of 23 ANDME expect that the bad guys got your stuff now, that’s awful. Because the problem with this, as this happens, it’s happening more and more. The banks we’re seeing more and more banks that are getting hit by this. And the next thing is Virgin Galactic, which is Richard Branson’s space company. They’re saying that this is done, okay? And the reason why it’s done is because Sir Richard just stepped forward and said he is no longer going to put any more money into the company.
Okay, well, that’s the kiss of death. If the founder is done with the company, the investment’s done, wouldn’t you think? So it’ll be interesting to see how this works out and how this plays out. Again, all these guys, I’m telling you, I understand. I guess if you have a lot of money, there are certain things you want to do in the world. Wouldn’t you want to just clean the place up? Wouldn’t you want to worry about people’s health, getting homeless people? I was a veteran today.
My daughter and I were together and this morning, and there was a guy on the side of the road, and he looked like Santa. Okay. But he was a veteran, and we stopped and gave him some money. He says, oh, I get to eat today. And I just broke my heart because people like that are suffering and people like Richard Branson, who have billions of dollars wasted, billions of dollars on space exploration, are not taking care of people.
Now, he’s a Brit, so I know he doesn’t care about our veterans like we do, but they could do some good in the world. Jeff Bezos just says he invested $122,000,000 in homelessness. I don’t know what that’s going to fight. Thank God he did this. It’s great, but what are you going to do? And this time of the year, guys, I’m telling you, the last time of the year, look at helping people.
Look at being kind to people. I went to a breast cancer conference and fundraiser over the weekend, and they raised a bunch of money. It was for the common good. But it really made me feel about how people that have nobody because there’s a lot of people going through cancer treatment, other health related treatments that don’t have family, don’t have friends. If you can reach out, you want to do something good.
If you don’t want to write a check, go help these people. Be kind. Do what you can do. Take people, drive them to a doctor’s appointment. Man, oh, man, that’s the greatest thing you can do for these people. So anyways, I don’t know if I got a billion dollars, there’d be a lot more things I would do. Share your experience in this. Again, space exploration company. Looks like they’re down for the count.
Let me know what you think about this. We keep hearing stories about retail crime and how employees are getting caught stealing from different store chains. A Gwynette Kroger, an employee who was 1919 year old kid, think about this one. He started to falsify returns and he would put that money on his credit card, and he bought cars, he bought jewelry. He just squandered it. Now, here’s the thing.
He did it for two weeks. Two weeks. And he got almost a million dollars in two weeks from one store. Isn’t that crazy, guys? One store that they did almost a million dollars in returns. Now, you’d think somebody would catch that. Someone would say, hey, wait a second, this is a little bit too much. So anyways, he got arrested. The next one is Pinnacles National Park in the San Francisco area.
Okay. Out of the sun here for you. They have a shuttle. Think about this. Elderly people go to the park. You want to carry stuff, and you’re going a long distance. They have two shuttles, and the shuttles are closed because the two workers quit, and nobody else can handle the shuttles. And they don’t know when they’re going to be able to hire people to do this. Now, you can say that’s ridiculous, but you have to understand, to shuttle around 30, 40 people, you’ve been to Disneyland.
You’ve been to Place, an amusement park where they have the shuttles that carry 60 people. It’s just not hey, Ted, you drive the car today you have to have a special license. And this place is completely upside down because now Pinnacles National Park is closed. I want to talk to you guys about something else that came to my attention last week. That’s absolutely amazing. And that is Bud, who’s a content creator, had the opportunity to take over a state park in Oklahoma.
I’m like, really? What’s that? Think about this deal in Oklahoma. This guy bought a state park, no fee, okay? He’s got a 50 year lease, okay? He won’t be around in 50 years, okay? 50 year lease. And he gets to keep all the revenue, but the only financial requirement is that he has to do all the maintenance, okay? Think about it. There are boat slips, there are camping spots.
There’s places to take showers, places to hook up your RV. Think about this. This guy’s going to bring all this money in, and it’s free for him. So again, there’s business opportunities out there, but as you’re seeing municipalities and governments get more and more desperate, they’re going to unload more and more things like this. So this guy Bud bought himself a state park. Isn’t that crazy to think about? What’s next, guys? What’s next? Great story below about a millionaire who’s 25 who said, I don’t spend extra money on anything.
I don’t spend extra money on expensive trips. I don’t spend money on expensive clothes, expensive dinners, expensive dates, and the guy’s got millions of dollars. Again, personal choice. But no one cares what you drive. No one cares where you go on vacation. There’s deals out there for everybody. Everybody I know that travels right now. I have a friend that owns a cruise company. Damn, the deals are out there.
You just got to look for them. So when a millionaire has money, there’s a reason for that with him saving money. And the real millionaires are not squandering it and pissing it away. Okay, so share your thoughts on that. I’m going to finish this video with this last story. And you know how we keep hearing, hey, our recession is going to be off. It’s going to be a soft landing.
It’s bad, it’s good, it’s bad, it’s good. Well, it looks like it’s going to be bad again, guys, because there is a study right now that says that it’s going to be a 50% chance that in 2024, we’re going to have a major recession. And I love J. P. Morgan steps forward and says it’s going to be dangerous and inflationary. What’s a dangerous recession? Seriously, seriously dangerous recession.
My buddy works for a manufacturing company back east, and he handles West Coast sales. And we sat down for a meal and talked about how things that the company talks about and I won’t say the name of the company, but things that they talk about get reported as facts. Like, hey, we’re looking at potentially adding a new facility next year. And again, it’s a conversation. I am thinking about dating twins next year.
It’s a conversation, okay? Until you see the photos and you have proof of it hasn’t happened. Understand? So they’re thinking about this, but it gets reported in the press. Like, look at manufacturing is great. They’re expanding. There’s nothing there. But the one thing is that so many experts now talking about how the recession is going to be bad in 2024, which could turn into a depression. This guy says they had massive layoffs this year at his company and that his entire industry as a whole is down about 20%.
And this is infrastructure manufacturing. Okay, so wait a second. The whole industry is down? Not just his company, everybody is down. And that they’re going to see more job cuts in the future. So get ready, guys. You haven’t even seen the massive job cuts. Yes, people have lost their jobs. You haven’t seen anything yet. They’re saying, please don’t forget to the like button. Please don’t forget to subscribe the channel.
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What are you saving for right now that you can’t wait for the price to drop? Is it a boat? Is it a motorcycle? Is it a house? Is it cars? What is it that you’re saving for? Let me know because it’s going down in price. Share it with all of us. .
