The Envy of the World (EP.383)

24:22Did you see that? Okay. And Buko quotes you. He's like, listen, if I had, if I had$3 million in income and I ever complained about anything financial, like I'd stand myself. You know, something like those were the sentiments. And so somebody replied to him and I never thought about it this way, but okay. Somebody replied, all these I have a friend shit posts are just engaging farming, period. Online lonely adult version of a five-year-old playing house with their imaginary friends. So it makes them feel temporarily better, more important, less insecure. So this person's thinking like, dude, all of these f***ing stories are not even real.

25:00I totally agree with that. I think 90 % of online videos aren't real, I think. They're like staged. I don't believe any of this stuff. The idea that somebody can make$3 million and I understand that they might feel like, holy shit, I'm in a pinch because I'm spending so much money. Right? My worry to my this, my that. Fine, I get that part of it. But what asshole would dare say that out loud? Right. Like that, keep this shit to yourself, idiot. So maybe, so I do think that this person's retort was fair. Like it's just engagement farming. Yes. Yeah, there's definitely a lot of that. Right. Do you think anyone really goes their whole family budget with friends?

25:37Like we spend this on this and no one does that. They don't know either. No one knows what their actual budget is. Oh yeah. And it got so granular as to like how much they spend on food and this and that. And I just, I don't, I really, I don't buy it. Sorry, not buying it. I agree. Put a bow on this. I am a glasses half full guy. So I probably look through most things with rose colored glasses. But I do think it's okay to celebrate when things are going well. And I feel like no one will do it this year because it's an election year. Like, but I'm willing to say like, things are pretty good right now.

26:09They're not going to be good forever. They are pretty good right now. And people are going to be missing this economy when it's not here anymore someday. Here's more good news. According to GasBuddy data, the median US gas prices dropped to$2.99 a gallon. I paid$2.88 this weekend. Not bad. By the way, here's another point. So that's the national price. I'm here in California, beautiful Colorado Island, and I saw gas prices for like$5.090. So I think a lot of this discourse, it's like we're talking like aggregate national stuff and everything is like very much segmented. The nation is not homogenous.

26:42That's true. But we live in a homogenous time being online. Yeah. So it's a weird dichotomy. All right. I think Mike Sicardi tweeted this from Bank of America. We expect 30 % year-over-year earnings growth in 2025 for the S &P 500. Okay, great. Well, I mean, holy cow. We'll take it. All right. So, but this is the, again, the concentration risk is that how much of that growth is coming from a handful of companies. Yeah. Right? So, yeah, that's the downside. All right. From the Washington Post, we've talked about this a little bit, but I wanted to pull out a few things in this data that we haven't talked about before.

27:18So they looked at median net worth by age adjusted for inflation. Before anyone asks, this is inflation adjusted. So they did millennials, Gen X, boomers, and silent generation, which, when did we go from the greatest generation to the silent generation? Who decided to make that? Were boomers sick of being told their parents were the greatest generation, didn't want to call them that anymore? Right? Like, are our grandkids going to change our name from millennials or something else? Anyway, so they look, through 2019, millennials were lagging pretty much every other generation. and now we're at the same age and now we're way ahead of any of these other generations in the 35 to 39 age range.

27:54Gen X is also ahead where baby boomers were. Here's what's interesting though. Look at how the silent generation peters out like immediately. Like that whole generation die young because I don't know they all smoke two packs a day didn't take care of themselves whatever had never heard of sunscreen whatever. Look at how much the baby boomers just keeps going up the older they get. That keeps going up and it's not rolling over. um and and also again gen x is way ahead so this was a one-time shot in the arm i think as far as housing prices that all this stuff happening at once but we've just we've never seen anything like the baby boomer generation be this large with this much money live this long before and their wealth is just going to keep going up yeah so we'll get later in the show to some of the wealth transfer and we'll rehash the conversation we had last week about the guy complaining that his parents were giving him money.

28:43So my dad asked me if I would, speaking of the sign of the generation, my dad asked me if I would take a drive to the neighborhood that he grew up in, a place called Far Rockaway, which is in Queens. It's like on the border of Queens and Nassau County. So my dad grew up, I would say poor. I don't even think like lower middle classes like there. He grew up poor and he grew up in an apartment complex. And his grandfather, Imagine this. His grandfather, Hyman, who people called Henry. That's my middle name. That's where I get my middle name, which I hated growing up. Really? I like Henry. Well, now I like it.

29:17But he shared – my dad shared a bedroom with his grandfather from the time that he was 11 to 17. Can you imagine? Yes. That is the thing that doesn't happen anymore. You don't get those kind of stories. And it was by no means a big bedroom. Like, I think there was a bunk bed in there. So, this is – As a teenager, can you imagine the teens of today taking that? So this is the stock that I come from, Ben. This is my heritage, my lineage. So Hyman was a tailor. And so when we pulled up to the building, my dad showed me that this was the bus stop where my dad would come home for work every day. So my dad's dad worked in a department store, like just a bunch of random odd jobs.

30:04And so we were driving around and my dad said, he didn't know anybody that lived in the house. That was like people with money. Everybody that he knew lived in the apartment complex. I said, did you feel poor growing up? He said, immediately, no. It was a, no. Did not feel poor. We're driving around. Then I guess he thought about it. He said, he just like five minutes later said, I didn't feel poor because I didn't know what Rich was. Right. He knew everyone else around him was living in the same type of environment, right? Yes. I think that my dad's experience is pretty normal of what it was to grow up in the 60s.

30:43And just, again, my dad saying, I didn't know what Rich was. They didn't like, they were living in fishbowls, right? So there wasn't all this access to the outside world. Right, they didn't know it. My dad would always used to joke, and I think it was tongue in cheek, but half serious. He always talked about how, like, they used to have to rent presents for Christmas. And I think his implication was always that, like, we never got anything. because he grew up with four other brothers and sisters. And my uncle still lives in the house, and it's a tiny house. I can't imagine having five kids in his house.

31:12But yeah, again, that was, a lot of people grew up that way. And I think that's why you always get the intergenerational battles because it's like, listen, I struggled. I did all this. And that's the same thing with the millennial boomer thing that we were talking about. Yeah, but my dad was like, no, I had, you know, we had, we played ball outside in the lot. We played a steep ball. We had pizza. We went to the movie theater. He didn't have like presence and stuff like that, but like didn't feel poor because he didn't know what Rich was. Yeah, and he couldn't be on social media all the time seeing other people flaunt their lives or whatever, right?

31:44Yeah. It's interesting. So yeah, the generational divides are stark. And then of course our grandparents, like my grandfather was in Africa in World War II. You know, like it's just the generational divides are like comical how different our upbringing was compared to our parents and their parents. Yes. My grandfather lied about his age to get in the war at age 17 in World War II. It's – yeah, that's a whole other – Yeah, and here I am. I have a ticket broker. Right. That you talk to like once a week apparently. OK. So there was a tweet – yeah, there was a tweet. Somebody tweeted, the end of shrinkflation.

32:27Tostitos is adding more chips to bags after sales decline. And I think one of the things about the shrinkflation that really, really pissed people off, it's like, yo, we're not f***ing stupid. Right. We know what you're doing. Like, there's more air in the bag and fewer chips. It's so insulting. Yes. Right. Just raise the prices. Yeah, I agree. That's always really bad when you open it up and it's just, yeah, tons of air. Oh, anyway, one more thing on this. so my dad brought over so this is friday we spent the day together and my dad brought over a box of of my stuff from growing up and so it was it was you know nostalgic take a trip down memory lane and see pictures of me as a kid and stuff and then i saw some of my report cards i didn't share this with you right no you shared a few things but don't think that okay so i was talking to my dad And I think about like my childhood a lot in terms of how I treated my education.

33:31And I think this is just a nature versus nurture thing. Cause I grew up in the same house as my brother and my sister and they did not behave the way that I did. I was a little bit rebellious. I think, I don't know if that's because my parents got divorced and it was like a subconscious thing. I don't know, but I didn't give a shit about school at all. Like was completely not motivated by grades. And I just, I just had like this inner delusion that like things would be okay. That like, yeah, I don't, I don't worry about it. Don't worry about it. I'll be fine. I'll be fine. and my parents were always like disappointed that I was underperforming my like potential, but they didn't know what to do because also like I have like attention issues.

34:05So I don't think that there was any environment in which I could have thrived in school. So I saw this one report card. Now in like fairness, this was my senior year. So I was already admitted to the Kelly School of Business as an undergrad, not to brag. It was like top 15 at the time because I did well in my SATs. But listen to this report card. So you were pre the days when every kid gets taken to a doctor to diagnose ADHD or whatever. Correct. It was before those days existed, kind of. Yeah, yeah. So I never did my homework. I was never able to pay attention, like obviously. Not a shocker to the audience, I don't think.

34:35But I did well on my SATs, and I did well enough in college to get into the Kelly School of Business as an undergrad. So, all right, so post getting into college, all right? So I was already in. It's my senior year. These are the teacher comments. More effort needed. Difficulty with subject matter. Inconsistent effort. Low test grades. Not working up to ability. Work is satisfactory. Frequent lateness. More effort needed. Inappropriate class behavior. I sent this to my friends and they go, which one did you have satisfactory? Because that was the only mildly positive thing. And that was phys ed.

35:07Another friend of mine said, 13 absences. I can't imagine why you had difficulty with the subject matter. So it's okay to laugh about this now because obviously it turned out okay, even though it could have not turned out okay. I don't know what the f*** is wrong with me. Like I have a hard time. Like I think about this a lot. like what was wrong with me. But I just think, I just think I just didn't have like the constitution to do well in this classroom environment. I think about the nature versus nurture thing a lot, especially because we have twins. So I feel like I'm watching an experiment play out in real time.

35:36And it's bizarre because I keep falling more and more to the nature thing. And which is a weird place to be as a parent. But I think for some kids, there's only so much you can do as a parent, I think, right? Like I'm sure your parents tried a lot of stuff to get you to do it. And some kids just don't respond. so my dad said he's like you know he said like me and mom spoke about you like all the time like we we didn't know what to do yeah and he said like what are you gonna do because my younger son logan like he's an angel he's he's not gonna have these issues but kobe is like my son and he said like what are you gonna do if like if you know not god forbid but if he has these sort of issues and i said i don't i don't know what the right answer is because if my parents and i got grounded a lot for like, you know, bad behavior and stuff.

36:21But if my parents pushed me harder and they did, they did like try it. But like, if they pushed me hard, I would have like dug my heels in even more. Yeah. You would have pushed back. So I don't know what the answer is, but, uh, I have a friend from high school who married an older woman who already had some older children. And he talked about disciplining. One of the young kids kept getting in trouble and trying to discipline him. And he said, we take away everything we punish. We have consequences. And he said, whatever, the kid doesn't care about the consequences. So how do you, how do you punish someone who doesn't care about the consequences?

36:51That's what, that's what I was like. I was grounded the entire eighth grade. Um, and I just didn't care. Yeah. So you, but to your point as a parent, that's, you want to do everything you can, but at a certain point you kind of go, you hope they figure it out someday. And you obviously did. It just took longer than your parents probably would have hoped. Right. So my parents always did trust that. And I'm obviously sad that my mom didn't see this, but they trusted I would figure it out. And like, it took a while, obviously, but holy shit, I was a disaster. Late bloomer. That's okay. All right.

37:24So this, I feel like, this is from Eric Paltunas, introducing battle shares. And you can pick companies. I guess you go long one, short one. And it's like NVIDIA versus Intel, Tesla versus Ford, Amazon versus Macy's. I like these. See, so to me, this is the sports gambling-ification of markets, right? This is, I'm going to pick a winner and a loser or whatever. And there's just going to be ETF parlays now, I guess. Is that where we're heading? That's exactly right. So there's like a hard line of people that think like, this is garbage, toxic. This is not investing. Jack Bogle will be rolling over in his grave.

37:57These things will probably be huge. Yeah, I, well, I don't know. I'm not sure about that. I understand why people feel that way. I think that I am just more, like, this is gambling. and again, I don't know that, but people are having fun and I know investing shouldn't be fun, but nobody's doing this in their 401k. Nobody's going all in on this stuff. It's people that are probably for the most part being relatively responsible with these products. Do you think that's fair? I read the stories about sports gambling and how it's the worst thing to ever happen and it's going to ruin people's lives and I don't know, I feel like the people who are going to have their lives ruined would have it ruined by something at some point anyway.

38:37I don't think we can protect people from themselves at all costs. It sounds like a really bad way to look at it. I'm thinking of the Jack Nicholson gif. You're coming over to the dark side. You know, I know it's like it's an uncomfortable thought to have, but I'm kind of with you. So listen to this one. This was in the Wall Street Journal. I've never heard of this guy before. The story was really good. So it's Archie Karras, a gambling legend who made and lost a fortune, dies at 73. And they talk about how this guy showed up in Vegas with$50 to his name in the 1990s. He borrowed 10 grand and he basically doubled and doubled and doubled his money until he got the 40 million bucks.

39:06And he said he did it playing like craps. And so there's a story about him. And it says he was up$35 million at the horseshoe one night. And this is one of his friends, a famed poker player. He said, I saw it all in the box. And he said he walked up to him and said, Archie, do you know what an annuity is? Basically being like, cash out, man. You're good. And it said people tried to talk him into investing his winnings and taking somebody off the table. And he said he just couldn't do it. And he basically lost all of the time. And they said it took him longer. It was faster to lose it all than it was to gain it all.

39:34and he said in 2021 he said I try to invest my money but I'm not an investor I'm a gambler that's who I am that's my personality so it was like the things that made him win that money were also the things that made him lose it and that's just some people's mentality right yeah if you have that you can't walk away you like the the what is it from the heat the action is the juice so that's I'm a gambler now thank god like in my in my 401k I don't I don't do anything right like I said it and forget it. But I think that a lot of people, listen, it's hard to say a lot of people, who knows? It's individual.

40:08But I think that people hopefully are able to compartmentalize, okay, this is my gambling account. I'm gambling. I'm having fun. And yeah, it's probably not going to go well financially, but I'm having fun. And then this is my responsible retirement money. I think we all know people who have just an addictive personality, whether it's smoking or drinking or drugs or, but you've figured out, but there are people who literally can't control it. Like they have an addictive personality and that's just what everything for them is all in or nothing. Yes. Yes. All right, Ben, I got an email last week.

40:40This is pretty cool from Gmail. Like, who is this person? So I scrolled over their name and Google said their birthday was two days ago. And I say that to say, that's just like one tiny, tiny thing of where this is going. like some of the stuff that we're going to see over the next couple of years is going to blow our faces off. Well, I saw the video of the new Facebook glasses where you walk by a person and then you'll hit the button. It'll scan and tell you everything about them. Dude, I need that. We all need that. So I'm here at Stocktoberfest. We do not need that. That sounds awful to me, but that's where we're going because people just share so much information that.

41:14Okay. I saw two people that I'm like, I have to know their name. Speaking of this, I'm not going to share that story actually I don't want to get myself in trouble but there's people that like you should know by their name and you don't oh yeah I'm like this with all the parents at the different games I'm like who's that guy the dad too and who's she the mom my wife knows everyone and I know no one who's that guy I was just talking to the story that I'm not going to share is the one that I shared with you about calling the person the wrong name ah yeah I coached my first I coached my first my first flag football game this weekend and I got the text.

41:54So I'm the, I'm like the third coach. I, I'm on the sideline. I harangue the boys and they don't listen to me. You're basically the guy who stands behind the coach, pulling him back if he runs out to the ref. Like guys, if you're not standing with coach Mike, you're not getting in. And they're like, Mike, you gotta do a better job. I'm like, ah. So, so I got the text like, hey, you're coaching on Saturday. And I'm like, uh-oh, uh-oh, uh-oh. I've never, I've never coached. Oh, like you're the head coach. Okay. Yeah. Both of the coaches were out and it was only, so a lot of the boys, like half the team is on a baseball team, like a travel baseball team and half the team is not.

42:29And you can imagine half the team that's not like Kobe, my son are not the greatest athletes. Right. So we were completely underdogs. We had to call up two people. So it was five kids that I know, two strangers versus the second best team in the league. And I was nervous. Like I was – I didn't tell Robin, but I was actually nervous going into this. I was like – anyway, credit to me. We were down 14 to 6. We scored a touchdown and the ref called like shield guarding, flag guarding. Ah. And then one of – so it was working. We were getting down. it was fourth and goal twice and we didn't convert two times down 14 six stopped him twice and one of the boys on my team goes hey i want to be the quarterback i want to be the quarterback so i'm like i'm like but it's working we're like we're doing well he's like but i want to i want to get a chance so i'm like okay but if it doesn't work i'm going back to this boy first play of the game first play the drive pick six now we're down 21 six i'm like all right um but i have a lot of sympathy now for the coaches um because when i'm on the sideline and they're in the huddle i'm like what's taking so long to call the play?

43:37And now that I was in the huddle, it felt like it was two seconds to get the boys to like, even look at me and pay attention to the lineup. Little boys are animals. I talked about this on Ask the Compound last week. Like you tell them everything you're going to do in the huddle. Then you break the huddle. Then you have to tell each person individually at the line again what they do because they don't listen. Yeah, and there were so many places where I'm like, all right, run to me, run to me, run to me. And I'm like, dude, I said run to me. You literally ran the opposite direction. See, here's my plan as a flag football coach.

44:04if I ever was one. You put the boys in literally the same spot every time. You don't do any reverses. You turn and hand it off and that's it. You make the simplest plays ever. You know what? Credit to me. So there was, so we just, it was quarterback, get open. And we ran that play like eight times in the rounds. Like again, again, again, again. We just kept running the same play and it was working. Yes, exactly. Keep it simple. All right. Let's do this crypto stuff real quick. I know we're running long here. So Nate Garasi tweeted nearly$1 billion into spot Bitcoin ETFs in the last two days. For context, only eight out of the 560 ETF launches in 2024 have taken more than a billion dollars this year.

44:45So I saw a tweet from HODL Capital saying the most frequent question I get is who is selling Bitcoin? And interestingly, it looks like the mega whales, the people that have – these are the addresses that have 100 Bitcoin plus are buying the shit out of Bitcoin. The sellers are the 10 to 100 Bitcoin. So that's anywhere from, I guess, is that 600 ,000 to 6 million? So you didn't make like buy an island kind of money, but you made enough money where it's like, okay, I need to take some off the table here. Yeah. So it's like the, not the whales, but maybe the dolphins that are selling. A16Z did a state of crypto report 2024.

45:25And the big takeaway for me anyhow was just stable coins. That's like the killer use case, I guess, for now. stable coins are only a decade old, and now they're a top 20 and rising holder of US debt. That's kind of wild, right? Huh. Interesting. Yeah, that's like the Trojan horses get people in, right? They showed the cost to send US dollar internationally,$44 for international wire transfer, and it's less than one cent now on one of these L2 platforms. And then lastly, They show stablecoin activity has grown despite crypto market cyclicality. So they show a spot crypto trading volume. And of course, it went parabolic into 21, crashed during the bear market has come back.

46:08And stablecoins have risen and risen and risen, completely uninterrupted by the ebbs and flows of the crypto market. And then lastly, yesterday, Stripe just made their biggest acquisition ever. They are buying a stablecoin platform company called Bridge for$1.1 billion. So the shit's getting real there. So volume is still pretty low. I looked at IBIT as the biggest ETF, the iShares one. It's$27 million, roughly. The Fidelity one is$13 billion, almost. So I was way wrong on this. You were right. I was wrong. Credit to you. Thank you. ETF flows. All right. Piece from the Wall Street Journal on home prices.

46:46They talk about builders offering buy-downs still. They give these stories of people coming into my house and be like, listen, I can't borrow for 7%. And they talked about how a builder offered someone 4 % for the first year, 5 % for the rest of 30-year loans. It's pretty good with the seven-year mortgage rate. Around three quarters of builders recently used rate buy-downs that covered entire 30-year mortgages according to John Burns. I've said this a few times. Is this still the best way to buy a home if you're going to do it just to build and get a buy-down from a builder? Build. Build, baby, rebuild that sounds right to me um making plans over there i am so sorry my uh i'm going to opening night of the knicks on friday and we play the pacers at home and friday night is also the world series so my friend keeps texting me about are you down to swap our tickets for tickets that are higher up in madison square garden but have a view of a tv so that we can watch the yankee game.

47:42So he keeps texting me. So I apologize. Yes, I'm texting it back. Sorry. All right. This is from the Wall Street Journal. Home purchase mortgage application index. And in 2020, it's really high. 2019, 2018, 2023 and 2024 are way, way low. And we haven't gotten much of a spike. Actually, things have fallen, even as mortgage rates have fallen. My take here is that this is just this is bad. And I can't believe we haven't had more like ramifications from just a lack of activity in the home purchase market. There's just like no activity going on at all. And I think rates are going to have to get to like 5 % for this to actually move the needle.

48:19Yeah. Well, how's that happening? I don't know. All right. Here, this is also bad. So this is from Freddie Mac. And they do like a state of the economy every month. And they said, renter households between 25 and 44 of age earning at least 75 grand inflation adjusted. And this was 1 million people in 1984. Now it's 3.3 million today. And look at the jump since 2015-ish. So tons of people in that 25 to 44 range. Again, inflation-adjusted earnings of 75 grand early. There's just people who are being priced out of the home market. And this happened in a hurry. It's awful. Yes. I guess this is, I don't know if this is a positive or not, but this is from Lance Lambert.

48:5925 % of mortgage borrowers have rates above 5%. So obviously 75 % below. But look at this. There's only 22 % of people that have less than 3 % and 35 % that have 3 % to 4%. So we're talking 55 % of people have below 4%. So it's widening out a little bit for people who have 5 % and above. It's, I don't know, it's almost 50-50 now. So it's like slowly but surely people are working their way up. And I think as we whittle down that 3 % mortgage, like that's going to be what unfaws this stuff for people and has some more activity. And people are not just sitting on their 3 % mortgage. I hope. That's not good, as they say.

49:39No. All right, let's do some great quarter stuff. So Netflix, stock that I'm up 100 % on, no big deal. You never sold? I never sold. No, I bought it. I sold it for a healthy profit, and I bought it back. Okay. Okay. In Q3, revenue grew 15%. Isaac Newton did. it. Remember, he bought, sell C shares, sold it, and got back in. But it was the second time they got them. Yeah, but he bought, yeah, and then they crashed. All right, so revenue up 50 % year over year, operating margin 30 % versus 22 % last year, which is insane. Ads membership was up 35 % quote over quarter. And I think they said that, I don't have this in the notes, but I think they said that 50 % of signups are now choosing the cheaper version.

50:29UCAN, the US and Canada, which is their most mature market, saw a 60 % year-over-year increase in revenue, which is kind of wild. Like their most mature market, 10 % and 5 % growth in average paid memberships and average revenue per member. Engagement on Netflix, they say, is around two hours per day. That sounds high, no? Wow. Yes. So they say that for the full year, they expect$6 billion in free cash flow. So I think the market cap is like$350 billion, maybe a little bit more. Sounds pretty f***ing expensive. $3.30. Their stock chart is unbelievable. Over the last five years, inclusive of a 75 % draw, and over the last five years, the stock is up 180%.

51:17Just an insane move. And obviously way back at all-time highs again. The stock is feeling a bit rich here. I don't want to sell winners, but I don't know. I might sell this. So look at this chart from Alex Morris. Netflix trailing 12-month EBIT per average paid subscriber. And if you're listening, it's just up until the right. I mean, they are absolutely dominant. But the game is over, and of course, it's reflecting the stock price. As I just said, it's$6 billion in free cash flow for the year, and it's a$300 billion market cap. $330 billion. I'm not saying Netflix is going to drop 75 % again.

51:49It feels like everyone's done the victory lap. Isn't there going to be a time in the next five years where everyone goes, oh, Netflix is done again. These other streamers are coming up? I don't think so. Are we over that? No, no, no. No, no, no. That shit's over. They won. They won. All right. It's both. I guess if they had football, I'm willing to concede. Well, no, no, no. They have. They have Christmas games. Okay. Yeah. I guess so. Dude, they won. All right. Amex. Total build businesses. Goods and services has been hovering between 5 % and 6 % for the last five quarters. But travel and entertainment is coming down.

52:24So this is from Q3 to today. Q3 of 2023 to today. 13 % is year-over-year growth. 13%, 9%, 8%, 7%, 6%. So that's coming down. So someone emailed us from Australia about the fees, the convenience fees from last week, saying the government announced they're threatening to ban surcharges by 2026. It's just at the look into point, but they say Australians lose$4 billion a year to these fees. And they said that Visa and MasterCard threatened to remove scam and fraud protection if that occurred. So that could be like the use case of, we could have a, they could actually test this out if they got rid of those fees, those 2 % surcharge fees on credit cards.

53:02It just seems just so egregious. It's ridiculous. So US consumer services build business. Okay, check this out. So we speak about this every time American Express reports. Millennials and Gen Z. Year over year, 12%. Percent of total, 33%. Gen X, 37%, only 4 % growth. I'm not sure. That's so interesting that millennials and Gen Z, their growth is growing. Their spend is growing so much faster than Gen X. I'm not sure what's up with that. Baby boomers, no growth. 0 % growth, 30 % of the pie. So to your point earlier, Ben, about millennials and Gen Z, carrying shit. You know the Paul Rudd meme? You ever think we'd be here?

53:43Nope. All right. Lastly, not last actually, almost lastly. Commercial services build business. No growth here. 1%. What does that mean? I guess this is like business spend. Okay. No growth. Aren't Visa and MasterCard way better than Amex though as far as usage? It's different businesses. But yes. But business cards, it's Amex. Okay. And then look at their credit metrics. We're talking about like credit cards that are 90 days past due. I guess maybe it's a different color because American Express tends to be a wealthier, more affluent customer base, but nothing to speak of here. Numbers seem low to me, yeah.

54:22Nothing to speak of here. All right, we talked about the inheritance thing last week, and someone sent us a comment that was a follow-up. It was the, what is wrong with our parents? Why don't they give us more money? I wrote a blog post about this. I got a ton of feedback from baby boomers, especially. A couple from like younger millennial people saying, hey, but a lot of baby boomers, a lot of them had the sentiment of, listen, like we grew up with a scarcity mindset. Our parents were in the great depression. Um, that's one of the reasons we're hoarding this stuff. We're worried that we're going to run out of money.

54:49Right? So there was a lot of that mentality. I heard from a few people being like, listen, our big thing is we're going to spend on travel and family trips. So every year we're taking the kids on a cruise or on a trip to Mexico or Hawaii or something. And that's like our thing. We're going to pay for all the travel. I actually like that one. Like spend your experiences together. You know what resonated with me? Somebody said, my perception, which could be inaccurate, is that there's some entitlement in the millennial writer's comments. If I detected that in my kids, my response would be, your mom and I worked for 40 years.

55:20Okay, that's not what I was talking about. I guess the comment was like, I don't want my kids knowing how much money I have because it's going to demotivate them. Yeah, there was a little bit of that too. So to me, that makes sense. But somebody emailed us a post on Reddit and this person said the original poster, because I said to you last week, I need more context. Yeah, we don't know what's, yeah. What if this kid sucks? He's like mad at his parents. What if he sucks? And somebody wrote the original poster. Now, I don't know if this is true or not, but let's just assume for this argument that it is.

55:49The original poster is a car head and is dropping tons of money on his big truck Ram 1500 hobby shit on a credit card. Also doing full room house renovation on credit card debt. Also did a bunch of crypto mining shit that obviously didn't pan out. If the base habits that got him$20 ,000 in credit card debt aren't fixed, They can pay it off monthly and he'll just end up back at square one. His parents likely paid off his cards multiple times and he just racked up more debt. So again, assume this is true. This kid's an asshole. Why should his parents help him at all? It sounds like they're doing plenty for him.

56:20Yes, and my only thing would be if you have young people right now who are looking to buy a house, helping them pay for a down payment is a, that's an investment that you make in your kids these days if you can. That'd be the one place where I'd say, as a boomer, like you should step up to the plate if you can help. But I don't think – I know this is happening all across the country because we see it in the data. It doesn't seem fair. But yes. But let's say that you are able to help your kids out financially. You have great kids. They're hardworking. They're responsible. They're trying to raise a family.

56:51They're doing all of the right things and they just need help with the down payment. Like what – as a parent, what could be better than that? If you have a child who's not ungrateful, who's not always has his hand out and you want to step to them and help them out, I think that's like a beautiful thing. To me, that's what money is for. Yes, I totally agree. And it's unfair that certain people don't have that help from their parents. But if you can, I think that's the place that you help today. So, Ben, you wrote in here the worst part about switching from cable to YouTube. What's wrong with it?

57:20So I'm, I don't know, a month into YouTube TV full time. I got rid of cable. I mentioned two things that are bad. The first is you can't channel surf anymore. It takes way too long. So that's the part I don't like. You can look at the guide, but it takes a while for it to cycle through and to change. And YouTube does kind of know your habits, so you kind of get in. So especially sports, I like the ability to see the four screen and stuff. But if I want to go from game to game to game much quicker, it's not as easy. It takes – there's an extra step that takes too long. And the commercials on YouTube TV are ten times worse.

57:52Like, obviously, it's election year, so that doesn't help. but all I want is a few jingles that'll be stuck in my head all day. Like you don't get those commercials. You get like really - Are you having switchers remorse? No, no. I still like it. There's nothing that I miss besides these are just, I'm nitpicking here. The commercials are awful. My kids are like, I hate elections because that's all they see is on YouTube TV is just election commercial after election commercial. So my kids are like, we're done with elections and we don't know what it is. Ben, you shared a picture with me, Duncan and some of the gang, a picture of you failing to crack an egg on the flat surface.

58:29I don't believe you. What did you smash the egg? I did it twice. Well, you sent us the video of the guy dropping it and smashing it, right? He dropped it and it broke in the middle and the crack worked, but then it left remnants of the yolk on the counter. It doesn't. What did you do? I did it twice. Just like the video you showed me, I did exactly what that guy did. I didn't. No, just hit it a little bit. you shove your thumb up there and it just it breaks out so nicely. But anyway, funny, the next morning I do it on the side of the pan. Last thing, the day after we were talking, I grabbed an egg out of my refrigerator.

59:04I opened my cabinet to get a bowl. Look at this picture. Somehow, I just smashed the egg right against my countertop by accident. Ew. Gross. Nice. Alright, let's get to recommendations. So, I was on an airplane. coming to San Diego. And there's a dude that went to the bathroom with the socks. What are you doing? Oh, shoes off on the plane? What are you doing? That's a big no-no too. Oh, that's gross. Okay, I watched First Man, the Ryan Gosling movie. Actually, great cast. You ever see that one? Yeah, the weird movie. Okay. Did you think it was kind of weird? So, I think I have to revise my take a little bit on my no drama rule on an airplane.

59:52I would say specifically a drama that's longer than two hours. Because if I watched this at home, I probably would have turned it off after, I probably would have given it like 20 minutes. Pretty slow. In fact, very slow. But for the story that they were telling, which is Neil Armstrong, it had to be slow and methodical because there was a lot of character stuff. so I was able to get through it and I quite enjoyed it within the context of the airplane ride okay I remember not liking this one when I saw it yeah because it's not a great movie yeah like it's pretty boring but on the airplane I think it worked better alright I was watching I was watching the bike riders I'm about probably got 40 minutes left it's a weird movie so to me it felt it felt a lot like a Bronx tale in the sense that like it's kind of like gangster stuff aside it's like an enjoyable movie.

1:00:47It's like pretty good, but it just feels like - First half, probably better than the second half, right? Okay, it just feels like weirdly hollow. Like - There was just something off, but I liked it. Yeah, like Tom Hardy's accent was horrible. Michael Shannon's character was weird. Like the whole thing just feels, I'm probably not articulating this well enough, but it just - It should have been better with the cast, right? It should have been so much better. And the subject matter, yeah. Yeah, so to me it felt like a Bronx tale. All right, lastly, actually not, almost lastly. Why can't Elon Musk with Starlink make like better internet on the airplanes?

1:01:19That is a good question. They, not to be the guy who complains about Wi-Fi on an airplane, but I hate when I pay for it and it doesn't work. Like I should get an immediate refund if it doesn't work, right? Yeah. It just, it just seems odd to me. All right. Lastly, lastly, Alien Romulus. I don't know what's going on here. They're making a VHS out of it. It's because it's like the 45 year celebration of the original one. I guess they're making like a limited number. Who's buying a VHS of anything? What are they doing? Collectors are buying it and they're never opening it and keeping it for a collector's item, I guess?

1:01:48I mean, it's just odd. It does seem weird. All right. I got to do one story time before I get into it. I don't have much recommendations. You were talking about coaching earlier. And I saw this piece. So I watched the Texas-Georgia game on Saturday night, and there was like a really bad pass interference call. And they went to look at it in the review booth and stuff. And as they did, it was a terrible call. And it was an interception that seemed like it was going to swing the game. and then the fans threw a tantrum and started throwing beer bottles onto the field. And then it made the refs change their call, which was crazy.

1:02:20And Jason Gay wrote about this in the Wall Street Journal. Wait, what do you mean it made the refs change their call? Like the refs... Like they called the penalty. They said pass interference and it was a terrible call. It should have been called. And so that was going to negate the interception that the guy had the interception all the way down into the side of the 10-yard line. And they threw all these bottles on the field and then the refs talked about it and they said, all right, you know what? No penalty. We're giving it to Texas. and Jason Gay wrote about this, how it's like we are a tantrum nation.

1:02:46Like, we throw temper tantrums about everything. And he was saying, like, it's kind of funny that, like, this temper tantrum from the crowd actually worked, and it got the refs to change their call. And I was thinking about this because we had a huge temper tantrum with a coach this week at a girls' soccer game. And I've seen a few of those this year. We had one in flag football against a team we were playing. My daughter Kate is seven years old, and she plays on a soccer team. And it's club soccer, but it's four on four. It's these girls, kind of like the boys with flag football. If they're paying attention to half the game, you're happy, right?

1:03:15But this coach of the other team was going just insane the whole game. And there was two girls were running for the ball. They ran into each other. One fell down. The other girl didn't. And our girl was the one who kept standing. And she went in and scored a goal. And this guy lost his mind. The ref was probably 12 years old, you know? Oh, my God. And the guy wanted to foul because it was a one-goal game. And the guy lost his mind. and he's screaming at the ref, just berating him. This kid's 12 years old. It looked like he was going to cry. And I almost wanted to get involved. And so this guy, and again, this is seven-year-old girls soccer.

1:03:48They're playing four-on-four. And you're the other coach? Oh, no, I'm not. I'm not coaching. I'm just on the sideline. And I had to go up to the ref after the game and be like, dude, don't worry about that guy. Take it. You're fine. Our coach after the game, he went up to the guy. He's like, hey, man, just take it easy. There's a seven-year-old girls. What are you doing? And the guy goes, it was a one-goal game. Like he wanted to win this seven-year-old girl's soccer game. So he threw a literal temper tantrum. The worst part is we had to play the same team again the next day. And it was kind of like after a night of heavy drinking and you said or did something you're probably embarrassed of.

1:04:20Like he kind of had that feel and he was much quieter the next day. But just I can't imagine getting that. It just – seeing those kind of things happen always makes me like just zip it up whenever I'm watching my kids do anything. But there is an interesting life lesson here because it's funny you mentioned this because I had a very similar experience. And I was thinking like the squeaky wheel gets the grease is one of the takeaways, which is kind of annoying, but it's a reality of life. Like if you don't ask, you don't get. So all right. So I am also the sideline coach for Logan's flag football.

1:04:50They're five. So I mean they're five years old. They're babies, right? Right. And there's 14 kids. So there's always seven kids on and seven kids off. And we're always rotating. and one of the kids was off, and he's standing next to me, and the mom comes up. I don't know these people. The mom comes up to him, and she's saying, and she's talking basically to me through him, right? Now, mind you, it's obvious that I have nothing to do with what's happening here, okay? Yes, I wear a coach t-shirt, but I have no influence on what's happening. So she's talking to me through him. Okay, do you want to come off the field?

1:05:29This is your third time off the field. do you want to play and then she goes um excuse me and i'm like yep she goes are you are you a coach and i'm like and i point to my shirt i said yep technically i am i am a coach she goes he's been off three times and so i walk onto the field and i'm like hey to the other coach don't turn around but his mom and i'm just like they're five everybody's shuffling in and out just what are you doing. And I guess to her credit, he did get the ball. She said, thank you to me, which was the right thing, of course, but it's just like, don't be that person. These people, but it's up because she got what she wanted.

1:06:13Right. Luckily this guy, this guy didn't get rewanted, but yeah, it's bad. All right. I've got a couple short recommendations. I started watching disclaimer on Apple TV. This is Kate Blanchett. Uh, I've heard, I've heard multiple good things. I want to get involved. I don't think you want to get involved in this. This is a no, this is a no. from it. It's two episodes in. It's either going to be the thing where it's a miniseries where it's done and you go, ah. Or it's done and you go, oh, okay. Very well. Kevin Klein's in it. It's very well acted. Pretty slow paced. It's like a mystery. You don't know what's going on kind of deal.

1:06:45Something happened when they were younger. Big Kevin Klein guy. I love Kevin Klein too. I'm going to stand on the sideline and I'm going to wait to be called in. Wait till it's done. Thank you. I think this could break either way. It's good, not great so far. And then I got a rom-com on Amazon Prime that I haven't watched in forever. It's called A Lot Like Love. Ashton Kutcher was throwing, he was throwing heat in the mid to early 2000s, you know, Amanda Peet. He was great. I never heard of this. Who's the counterpart? Amanda Peet and Ashton Kutcher. And they do a great job. It's like people who come in and out of their lives for 10 years and they finally get together at the end.

1:07:18And, oh, spoiler alert. In a rom-com, they actually get together. But they do a great job depicting the dot-com boom and bust. Like he gets involved in like a baby diaper company that goes under or something. And just a quirky little cute rom-com, but I've always kind of liked it. All right, listen, it's not rom-com season yet. Give it a month, Ben. It's still Halloween season. And to that end, I forgot, I was watching the new VHS, VHS Beyond, which Ben, I'm sure you're not familiar with, but it's a great franchise. It's found footage, horror, sci-fi. And Robin sneakily likes this shit as much as I do because it's found footage.

1:07:52And there's like, I don't know, six to eight stories per movie. And she watched the first two and she's like, what is wrong with you? I was like, you like it, don't you? It's pretty good, right? So VHS Beyond. I only saw the first two skits, but I don't want to call them skits. First two stories. So she hates herself for liking it though, probably. She likes it. She likes it. Okay. All right. We didn't mention you're in California for StockTwits right now. We did mention it. Did we? I'm at Stocktoberfest. This is Hotel Coronado, Hotel Del Coronado, whatever it's called. My favorite hotel that I've ever been to.

1:08:26I absolutely love it here. It's just, it is spectacular. Really great place. Okay. Enjoy. Remember to check out the unlock. That's advisorunlock.com. Sign up here for financial advisor. Thanks to the - Come work with us. Yeah. Check out the emails for coming to work with us. What's the email again? Hiring at redholtzwealth.com or there will be a link in the show notes. We're looking for advisors in California, tax people in Philadelphia. We've hired multiple people who've emailed us through Animal Spirits before. I had a conversation last week. One of our new text people said, hey, I came through Animal Spirits email and got hired.

1:08:58Email us, animalspirits at the compoundnews.com. We'll see you next time.