THE FED WILL PUT MORE HOT AIR IN THE EVERYTHING BUBBLE TOMORROW

Summary

In this video, the host anticipates Jerome Powell's speech at Jackson Hole, speculating on potential rate cuts and market reactions. They discuss the weak housing market, with rising inventory and falling sales, and the impact of high mortgage rates. The script also covers the closure of Subway stores, ATM fee hikes, and the economic struggles faced by Americans. Concerns about cybersecurity are raised following a major cyber attack on an oil field service company, and the video ends with a call for prayer and action for the United States.

Takeaways

• 📅 It's Thursday, August 22nd, 2024, and Jerome Powell's speech from Jackson Hole is anticipated to be a significant market event.
• 💹 The market is expecting a rate cut in September, and Powell's speech may provide hints about the number of rate cuts for the current and next year.
• 🏠 Home sales rose in July for the first time in five months, but overall sales are at the weakest level since 2010, with a 20% increase in inventory.
• 📉 Despite lower mortgage rates, there is no significant rush to the housing market, suggesting a lack of motivation among buyers.
• 📊 The average cost to withdraw cash from an ATM in the U.S. has hit a record high, with cities like Atlanta and San Diego having particularly high fees.
• 🛒 Walmart and Target are cutting prices to attract customers, indicating a competitive retail environment.
• 🏥 There's a proposal to close two hospitals in the Shenango Valley, reflecting financial struggles in the healthcare sector.
• 🚨 The U.S. government has allocated nearly $800 million to help shelter and transport migrants, raising questions about domestic economic priorities.
• 💼 The job market is facing a crisis, with many people losing their jobs, which could exacerbate economic challenges.
• 💻 A massive cyber attack on Halliburton, a major oil field services company, highlights the vulnerability of digital systems and the risks of relying on digital currency.
• 🙏 The speaker emphasizes the importance of prayer and community action in addressing the economic and social challenges faced by the United States.

Q & A

What is the significance of Jerome Powell's speech at Jackson Hole?

Jerome Powell's speech at Jackson Hole is significant as it is anticipated to provide insights into the Federal Reserve's stance on interest rates, potentially hinting at upcoming rate cuts and affecting market expectations.

Why are markets expecting a rate cut in September according to the script?

Markets are expecting a rate cut in September because it has been a recurring expectation that has not yet materialized, and the speech by Jerome Powell could be a pivotal moment for such an announcement.

What does the script suggest about the current state of the housing market?

The script suggests that the housing market is weak, with home sales up only 1.3% month over month but down 2.5% year-over-year, marking the weakest July since 2010. Despite increased inventory and lower rates, there is no significant rush to the housing market.

What is the current mortgage rate mentioned in the script?

The current 30-year fixed mortgage rate mentioned in the script is 6.62%.

How does the script describe the impact of high ATM fees on consumers?

The script describes high ATM fees as a burden on consumers, with an average cost of $5 to withdraw cash and significantly higher fees in certain cities like Atlanta and San Diego, contributing to the financial strain on people.

What is the script's perspective on the current job market and its implications?

The script suggests that there is a growing job crisis, with many people losing their jobs, making it difficult for them to afford basic necessities and contributing to a larger economic problem.

What major event is mentioned in the script regarding the cyber attack on a large oil field service company?

The script mentions a massive cyber attack on Halliburton, one of the largest oil field service companies, which impacted business operations and global connectivity networks, highlighting the vulnerability of digital systems.

Why does the script express concern about the move towards digital currency?

The script expresses concern about the move towards digital currency due to the risks of cyber attacks, the potential for systems to be shut down, and the convenience and safety trade-off that people may not fully understand.

What is the script's opinion on the allocation of $800 million to Catholic Charities for migrant support?

The script criticizes the allocation of $800 million to Catholic Charities for migrant support, arguing that the money should be used to help Americans first, especially considering the economic struggles faced by many citizens.

What economic issues are highlighted in the script regarding small businesses, hospitals, and the middle class?

The script highlights the struggles of small businesses closing down, hospitals facing shutdowns, and the middle class falling behind financially, suggesting a deteriorating economic situation that is not being adequately addressed.

Outlines

00:00

📉 Economic Expectations and Housing Market Insights

The script discusses the anticipation of a rate cut by Jerome Powell, expected to boost markets and metals. It also highlights the mixed signals in the housing market, with an increase in home sales in July but a significant year-over-year decrease and a 20% rise in inventory. The script questions why the market isn't responding to lower rates and increased inventory, suggesting a potential housing collapse. It also mentions the impact of high mortgage rates on buyer motivation and compares the current housing market to that of 2008.

05:02

🛑 Rising Costs and Economic Challenges

This paragraph delves into the increasing costs of living, including insurance, ATM fees, and other expenses, and contrasts them with the affordability of big screen TVs. It notes the efforts of Walmart and Target to cut prices to attract customers amidst a backdrop of economic hardship. The script also addresses the job crisis, the vulnerability of digital currencies to cyber attacks, and the importance of having physical cash and resources in case of a grid shutdown or cyber attack.

10:03

🏥 Healthcare and Financial Allocation Concerns

The speaker expresses concern over the allocation of federal funds, criticizing the $800 million given to Catholic Charities for migrant support when local communities and hospitals are struggling. The script mentions the potential closure of hospitals and the economic strain faced by Americans, suggesting that funds should be prioritized for domestic needs. It also touches on the difficulties faced by small businesses and the broader economic implications of these financial decisions.

15:05

🗳️ Political and Social Calls to Action

The final paragraph is a call to action, urging viewers to vote, engage on social media, and pray for the country. The speaker decries the state of the economy, the closure of businesses, and the perceived lack of support for American citizens. They emphasize the need for change and the importance of community involvement to address the nation's challenges.

Keywords

💡Jerome Powell

Jerome Powell is the Chairman of the Federal Reserve, the central banking system of the United States. In the video, he is anticipated to speak from Jackson Hole, an event where central bankers meet annually. His speech is expected to have significant implications for economic policies, particularly regarding interest rates, which is a central theme of the video.

💡Interest rate cut

An interest rate cut refers to a reduction in the interest rates set by a central bank, like the Federal Reserve. The video discusses the anticipation of a rate cut, which is believed to stimulate economic growth by making borrowing cheaper. The expectation of such a cut is a key point of speculation in the financial markets, as mentioned in the script.

💡Dow Jones

The Dow Jones Industrial Average is a stock market index that tracks the performance of 30 large companies listed on the stock exchanges in the United States. In the video, it is mentioned that the Dow Jones was down, indicating a decline in the stock market, which is a reflection of the broader economic sentiment and investor confidence.

💡NASDAQ

The NASDAQ is another major stock market index, representing the performance of technology and other growth-oriented companies. The video notes that NASDAQ was down, which, similar to the Dow Jones, signifies a negative trend in the stock market and could be related to broader economic or sector-specific concerns.

💡Home sales

Home sales refer to the transaction of residential properties. The video discusses an increase in home sales in July, which is presented as a positive sign. However, it also contrasts this with a significant year-over-year decline and a high inventory level, suggesting a potential weakness in the housing market.

💡Inventory

In the context of the video, inventory refers to the stock of unsold homes available in the market. The script mentions that home inventory is up 20%, which is unusual given the declining interest rates. This could indicate a slowdown in the housing market as buyers are not rushing to purchase despite favorable borrowing conditions.

💡ATM fees

ATM fees are the charges imposed by banks for using an ATM, especially for withdrawals. The video highlights that ATM fees have hit a record high in the United States, which is a concern for consumers as it adds to their financial burden. The cities with the highest fees are mentioned, illustrating the disparity in banking costs across different regions.

💡Cyber attack

A cyber attack is an attempt to damage or disrupt computer systems, networks, or digital infrastructure. The video discusses a significant cyber attack on a major oil field service company, emphasizing the vulnerability of digital systems and the potential risks associated with a move towards digital currencies and reliance on technology.

💡Hospital closures

Hospital closures refer to the shutting down of medical facilities, which can lead to reduced access to healthcare services. The video expresses concern over the proposal to close two hospitals, highlighting the impact on patients and the community. It contrasts this with the allocation of funds to aid migrants, raising questions about the prioritization of resources.

💡Economic indicators

Economic indicators are statistics that provide insights into the health of an economy. The video uses various indicators such as home sales, stock market performance, and ATM fees to paint a picture of the current economic climate. These indicators are crucial for understanding the broader implications of monetary policies and market trends.

Highlights

Jerome Powell's speech from Jackson Hole is anticipated to be a key event affecting market sentiments and potential rate cuts.

Markets are expecting a rate cut in September, which could influence the direction of the economy.

Home sales in July saw a slight increase, but overall, it was the weakest July since 2010.

A 20% increase in home inventory raises questions about the lack of a rush to the housing market despite lower rates.

Current 30-year fixed mortgage rates are not motivating buyers to enter the housing market.

Comparison of 2024 home sales to 2008 levels, indicating a potential housing collapse.

Subway's abrupt closure of 23 stores in Washington and Oregon, highlighting the struggling restaurant industry.

ATM fees in the United States have reached a record high, with cities like Atlanta and San Diego averaging over $5 per withdrawal.

Walmart and Target are cutting prices to attract customers amid a challenging retail environment.

The job crisis in America is intensifying, with many facing difficulties in meeting basic needs without employment.

Halliburton, a major oil field services company, was hit by a massive cyberattack, emphasizing the vulnerability of digital systems.

The importance of having physical cash and resources in case of a digital system failure is stressed.

Catholic Charities received nearly $800 million from the federal government to assist in sheltering and transporting migrants.

The economic implications of allocating funds to migrants while American hospitals and infrastructure struggle.

The potential closure of two hospitals in the Shenango Valley highlights the dire state of healthcare funding.

A call to action for Americans to vote, speak up, and pray for the country amidst the various crises.

Transcripts

it's Thursday August 22nd 2024 thanks

for joining me today please make sure to

like this video uh share this video

everywhere and make sure you subscribe

uh kind of a a quiet day overall today

uh all eyes and ears are on Jerome pal

tomorrow uh he'll be speaking from

Jackson Hole and it'll be a very uh

interesting uh Speech uh obviously uh

most uh economists and the markets

believe that the next rate uh cut coming

uh or the first one

coming uh as we've seem to uh think

every month we're going to get a ray cut

we're finally going to get one it looks

like in September now Jerome P will

speak tomorrow uh I think he will

acknowledge that the question is how

much does he acknowledge beyond that uh

is he going to hint at more rate cuts

for this year will he hint at a number

of rate cuts for next year uh is he

going to uh juice the markets a little

bit tomorrow we shall see I would not be

surprised to see markets uh very happy

tomorrow I would not be surprised to see

medals having a very good day tomorrow

who knows uh as we all know you cannot

predict forecast any of this stuff there

really are no fundamentals uh with these

markets anymore but uh all that being

said I I think that uh markets and

metals should have a good day tomorrow

we shall see uh today Dow Jones was down

177 NASDAQ was down 300 again everybody

everything is waiting on Drome pow

tomorrow so we'll see what he has to say

home sales Rose in July for the first

time in five months that sounds like

great news doesn't it uh home sales uh

up 1.3% month over month although they

were down 2 and a half% year-over-year

uh this is the weakest July in home

sales since uh uh uh a July of 2010 uh

this was interesting inventory is up 20

% let me repeat that home Inventory is

up 20% rates are coming down inventory

is going up why are we not seeing uh a

run uh to to the housing market why

isn't everybody out buying house right

now with rates coming down in all this

new inventory mortgage rates Edge lower

this uh uh on Fox Business 30-year fixed

rate today

6.62% it is not enough to motivate

buyers to jump into the housing market

and go buy house uh I looked at some of

the uh uh home sales uh 2008 we saw

around roughly about 4.2 million home

sales this year right now we're sitting

at about 4.25 million so we are looking

at a year of home sales

literally the same as 2008 going to be

very very close to what we saw in 2008

this is just how sick the housing market

is right now you are witnessing another

housing collapse right now again

inventory is going up the pool of

qualified buyers is shrinking uh days on

Market is is lasting longer it's getting

harder uh to sell a home uh ask a new

ask a new Builder uh they're throwing in

tons of incentives and dropping prices

in order to to move their inventory uh

here's one from the sun gone for good

Subway abruptly closes 23 stores in two

states and 200 workers out of jobs uh

Diner sphere changed is dropping like

flies uh this happened with no warning

no heads up they just shut down 23 uh

locations uh this happened in Washington

and in the state of

Oregon uh we're going to see more of

this you're going to see more

restaurants family restaurants fast food

chains uh the franchises they're all

shutting down uh people are having to

make decisions now they're they're

deciding to save money cook at home they

just don't have the discretionary

spending as you all know to go out and

you know have lunch at a fast food

restaurant for $15 $20 now uh they're

pulling back you know on the $10 coffees

so things are definitely changing uh

it's going to be very interesting to see

what it looks like this winter ATM fees

hit a record high in the United States

these are the cities where you'll pay

the most the average cost to get your

paper money out of out of an ATM right

now is $5 don't the banks just love you

don't the banks just love you don't your

credit card companies love you that are

charging you 23 25

29% don't they love you and you know

when they were borrowing money for

literally nothing they were still

robbing and ripping people off with high

interest on their credit cards and and

and now these ATM fees in Atlanta the

average is

$533 San Diego you want to pull some

some of that Monopoly money out it's

going to cost you $522 Phoenix $522

Detroit

$518 people are just getting decimated

Every Which Way their health insurance

goes up the car insurance goes up the

the the property insurance goes up the

cost of an ATM goes up your cell phone

bill goes up everything is going up

where are people getting a break

somebody please tell me today other than

maybe seeing you you know big screen TVs

uh at the lowest I've ever seen them

where are people really getting a break

at right now because it looks to me

everywhere you go prices uh just

continue to go up or they're going to

they're they're going to stay up Walmart

and Target are cutting prices to entice

customers well here's some good news uh

they're cutting some prices people are

going to go where they feel they're

getting a deal and so uh Walmart and

Target have come to the conclusion that

hey we're going to have to get trapped

we're going to have to pick up some

traffic so in order to do that we're

going to have to entice the consumer to

come into our store so let's cut some

prices a little bit and it seems to be

working

um when you see what's happening in Auto

Sales what's happening in in in home

sales uh when you're sitting on all this

inventory and you're not getting the

foot traffic you're not getting the

sales well Walmart and Target figured it

out cut prices repeat cut prices you cut

prices people will come as long as they

have a job this is going to be another

problem now that so many people are

losing their job that no matter what

prices are if you don't have a job it's

going to be very very difficult to eat

to shop to buy a car to buy a house and

this is going to be a big problem coming

to America is this uh job crisis that we

are now uh in the beginning stages of

without a job it's going to be very very

difficult for people to survive so do

whatever you got to do to hang out of

that job uh you know diversify a little

bit have a side hustle have a couple

side hustles uh hton allegedly hit by

Massive Cyber attack one of the largest

oil field uh

Service uh uh compies in the

world uh was hit Wednesday by a Cyber

attack uh again you know I don't think

people understand how fragile this whole

thing is and we're talking about you

know going to a digital currency and

won't that be wonderful and convenient

think about how many countries now have

the ability to Cyber attack us they're

hitting our hospitals they're hitting uh

our oil feeld field uh Services they're

they're hitting our financial sector uh

they're hitting our military uh they're

hitting uh our grids they're hitting

everything and it's amaz it just amazes

me that people will sell you know

they'll they'll sell everything for some

convenience they'll sell safety for

convenience oh you know yeah we could

get Cyber attacked and maybe our money

won't work but boy it's so convenient

and so easy to have this digital money

um people just don't understand how

quickly things can be can be shut off

and just imagine where the technology is

going to be a year from now two years

from now three years from now do you

really want to have all of your eggs in

one basket sitting on a computer screen

do you really think it's that safe uh it

appeared to impact business operations

at the company's North Houston campus as

well as some Global uh connectivity

networks they have

48,000 employees and they operate in

more than 70 countries

I mean think about the security they

must have on their systems and yet

they're being

infiltrated uh you know I I I read daily

about our water treatment facilities and

our grids being like being attacked

every day uh you have uh the FBI warning

US Weekly now that you know they're

gonna they're going to be very

successful at some point and they're

going to shut some grids down they're

going to shut some cities down they're

going to shut your water down uh they're

going to shut your emergency services

down they have the technology to do this

and we're being overwhelmed every day by

this so be careful don't keep all your

money sitting on a computer screen

because if that screen turns up to be

blue one day and you can out access your

money you're going to be in very very

big trouble especially when your

electricity doesn't work your water

doesn't work it's imperative that you

are putting some water away you're

putting food away put some food away for

your animals too remember your animals

uh make sure you have a trauma kit make

sure you maybe have some extra vitamins

some extra medicine put this stuff away

if you have a small budget just think

about what you would need to survive for

a week or two if the entire grid went

down think about just a few items water

food security things like that a little

uh silver some cash don't keep all your

money in the bank ladies and gentlemen

uh keep enough to pay the bills uh but

you may want to get some of it out

because if that grid goes down and those

systems don't work they're not taking

your ATM they're not taking your credit

cards uh they're not taking your debit

card they're taking one thing cash

that's it if it gets really bad then you

may be talking to a farmer about uh

trading some gold and silver for food uh

feds gave Catholic Charities almost $800

million that help shelter and transport

the president's migrants into US

communities now this isn't to get

political you know I don't get

political um but we do have to get e

economic

here wouldn't $800 million really be

helping some Americans right now look I

don't want to see anybody suffer I don't

care where somebody's from what part of

the world I don't want to see anybody

suffer but I can't afford to pay for it

this country can no longer afford to pay

for anybody we're bankrupt $35 trillion

in debt we cannot afford to do this

stuff who paid for this what would $800

million do for your city what would $800

million do for your business what would

it do for your kids people are going

into debt to buy back to back to school

supplies people are going into debt to

go to the grocery store they're going

into debt to pay their electricity bill

and $800

million went to help these people when

it should have went in my opinion my

opinion only should have went to to help

Americans where's this money coming from

I think you have an idea it's coming

from you it's coming from me I want my

money to help these people right here in

the United States of America

Americans first if we can't help

ourselves we can't help anybody we're in

very very big trouble again not

political it is economic we deserve to

know where this money is coming from and

we need to know why it's not helping

Americans why it's not helping the Vets

why it's not helping small businesses

while it's why it's not helping your

kids school why it's not helping to

create more jobs why it's not helping to

um uh uh improve the infrastructure why

it's not going to help things right here

to feed people that need food right here

in America who's paying for this why is

this being

allowed and as I speak about that

Pittsburgh Post debtors propose closing

two Chenango Valley hospitals bankrupt

Steward Health Care system LLC is

seeking Court approval to close a

346 uh uh bed trauma center and a 69 bed

Rehabilitation Hospital in the Shenango

Valley at the same time F raising in

negotiations continue see we we have to

negotiate and fundraise to get money

nobody gives it to us to continue to

save stewards 82 uh bed Sharon Regional

Medical Center in Mercer County the

owner is of these

properties uh is medical properties

trust Inc from Birmingham Birmingham ham

Alabama

now while I read you this article coming

from the Pittsburgh Post

they're looking to place these patients

somewhere else because these units these

hospitals look like they're going to be

shutting

down and it blows my mind that we have

$800 million to just give out when we

have hospitals closing and patients in

the hospital rooms need to find a new

location this is absolutely appalling

that we're not helping our own people

that we're allowing hospitals to close

but but we have hundreds of millions

billions of dollars to give to everybody

else what do you think about this I I I

think this should be completely illegal

I I think it should be

uh completely

unacceptable uh I I just I I just don't

get it I mean this is just to me it

looks like a fullon assault uh to the

American people in my my opinion that

they're not getting the help businesses

a people laying in a hospital bed

um the infrastructure the average person

working paycheck to paycheck 78% of this

country falling behind falling behind

spending another extra thousand bucks a

month just to live like they were just

to keep up where they were they're

spending an extra thousand dollar a

month that's $1,000 a year most people

cannot do that and they're falling

behind and many people are falling out

of the middle class while we give

hundreds of millions and billions of

dollars uh to people from all over the

world while our hospitals shut down

while uh our infrastructure crumbl

while our small businesses close down

while our restaurants close down while

the economy continues to fall into

shambles this continues to go on we have

money for everybody else we don't have

money for

America I'm going to leave it there

today uh please comment on any of this

uh tomorrow should be very very

interesting uh what jome pal says how

much does he juice the markets maybe he

doesn't maybe he shocks everybody I

doubt that but uh how doish will he be

how hawkish will he be I think he's

going to be extremely doish who knows I

don't have a crystal ball let me know

your thoughts what's Dr pal going to do

tomorrow how will the markets react and

are you seeing hospitals businesses

restaurants in your areas continue to

close down and how much worse is it

going to get this is absolutely

unacceptable it's absolutely pathetic

it's disgusting it's repulsive that this

is allowed to go on and nobody is doing

anything about it I hope I pray to God

that

everybody's voting I I know that it's

selection yada yty but look you got to

do something people got to be out

talking they they've got to be posting

this stuff on social media they've got

to be voting uh you know it's not an

election it's a selection maybe to a

point but if enough people got off the

couch and voted maybe it's not it's

harder to select at that point I don't

have the answers ladies and gentlemen

but we got some big problems and they

need to be addressed and I think the

more that people admit that we have

problems the more that people see these

problems the more that people speak up a

little bit vote a little bit more uh

post more on social media uh maybe maybe

something gets done how about prayer how

about prayer if you don't think any of

that works one thing that we do know

that works is prayer we all need to be

praying for the United States of America

we all need to be be praying for one

another um because if we're not praying

for this country at this point because

it needs a miracle the only thing that

saves us now saves this economy is a

miracle and the only way we're going to

get that is prayer and getting off the

couch have a great day be safe out there

God bless all of you God Bless America

talk to all of you very very soon