Scams, Dan Ariely’s Abstract Money & Valuation Inflation

Scams, Dan Ariely’s Abstract Money & Valuation Inflation

Jason Hartman and Investment Counselor Adam start the show examining a real estate scam that is finally being investigated by the FTC. They talk about accountability with crimes. Later they look at Dan Ariely’s YouTube video about paying yourself first. The close the discussion talking about positive economic news for our tenants.

Investor 0:00
The markets were buying in a robust markets there, the population is stable and growing, and the values are stable and growing. It’s not like we’re just buying residential anywhere. We’re buying

Announcer 0:10
into the market. Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multi millionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 1:02
Welcome to Episode 1298 1298 glad you could join us today from 189 countries worldwide. Thanks for being here. So today we are going to talk about a scam. And this is you know, like elementary My dear Watson. Sherlock Holmes will say, Adams here with me. You can hear his cackle. I mean, I could have told you this was a scam. Right? But yeah, he’s now the Federal Trade Commission agrees with yours truly. Right. So we’re going to start with that. Then we’re going to talk about the abstraction of money. The abstraction of money with Dan Ariely probably read some of his books or heard about him. He’s a great author has some really interesting takes on things that they’re really just unique. He has really unique take on things. Then what’s

Adam 1:56
after that, Adam, we’re going to talk about the good economic news that nobody And democrats don’t want to talk about

Jason Hartman 2:01
Yeah. Isn’t it weird? Usually one side or the other of the political aisle, wants to either bash something or brag about something else. But this one nobody wants to talk about yet. It’s good news. Why wouldn’t our brash braggadocious President Trump, be bragging about this? Because, well, there’s a dark side to it, right? Every silver lining has a cloud.

Adam 2:30
A reverse the old saying whether or not they want to admit it, it’s still good news.

Jason Hartman 2:34
Yeah, it is good news, but it’s not good for everybody in the voting bloc, and I guess that’s why they’re kind of sweeping this one under the rug surprisingly. So what does the Federal Trade Commission have to say about house flipping seminars? Oh, boy.

Adam 2:52
Well, if you’ll do this, so apparently, a lot of it stems around HDTV stars. Now I have to say personally, I don’t really watch any of those. shows because me I don’t have any interest in flipping homes. It’s not something I’m going to be picking up a hammer and doing myself. So

Jason Hartman 3:06
and you don’t want to be fighting with and arguing with in litigating with contractors all the

Adam 3:12
time. with contractors in my house,

Jason Hartman 3:15
you don’t want to be in court with contractors having them sue you sue them hard, pal. That doesn’t sound like fun.

Adam 3:21
Now I will say one of the big things they have there’s a company called Zurich’s. I believe I’m saying it right. And

Jason Hartman 3:27
z you are IXXZRIXX what a name.

Adam 3:31
Yeah. And they offer free real estate seminars using HGTV people and other TV personalities who endorse them and they make it sound like they’re going to be at the event when in reality, most of them never are. And that’s free and quotes, by the way in quotes, but because the first seminar is free, but all you learn in the first seminar is Hey, you should pay over $2,000 are right around $2,000 to come to the seminar that actually teaches you something. Yeah. And then you go to that one you paid $2,000 to go to that seminar. Guess what, this $2,000 seminar taught you a little bit. But if you really want to learn more, you got to spend 10s of thousands of dollars to get our big package program, and you end up spending $40,000 with a promise of, oh, you’ll make this back in a minimum of three times they say, the price of the workshop within six months. You know, if you don’t make that you’ll get your money back. But you know, as soon as they say you’ll get your money back, one of the big things they say is, as long as you follow our plan is usually a caveat on a lot of them. And there’s a whole lot of ways they can say you didn’t follow our plan to the letter. You know, this is I mean, look at folks, the old saying If it sounds too good to be true, usually is caveat emptor, let the buyer beware. And this is the case with his stuff that home flipping is not all it’s cracked up to be. It’s much harder than it looks. Investing in assisted living facilities is a lot harder than it looks. Hey, doing what we do is harder than it looks too.

Jason Hartman 5:01
Okay? It everything in life is hard. It’s difficult. Passive income is boring. Okay, it’s just there isn’t any such thing as passive income. And I’ve debunked that myth 1000 times if anyone tells you passive income just run the other way. The stock market is not passive income. Your bank account isn’t even passive income. I’ve demonstrated why that is true. Certainly flipping is the exact antithesis of passive income. So whenever someone’s on a big TV show, you got to be really really careful because they’re using their hokey celebrity status to market themselves. So this Christina I’ll Moosa is this the star of this episode or this show? Right ended up going to on ABC to defend Zurich’s seminars? That’s where she was. She was defending it on ABC but she was on HGTV. Yeah, these are just bait and switch clickbait scams like they all are. It reminds me of the old joke, and I can’t tell a joke very well. So don’t expect much out of this, folks. But here’s the idea. And this came from, I think, the multi level marketing world kind of bashing that because all those things sound too good to be true, too. Right? And, and so here’s what happens, Adam, I’ll tell you this story. So someone dies there at the pearly gates. St. Peter says to this guy that dies, well, would you like to go to heaven or hell? He says, Well, obviously I want to go to heaven. Have I earned it? I’d like to go to heaven. And then St. Peter says, Well, actually, you know, some of our visitors they decide to go to hell, I hear it’s pretty fun down there. And and you can go for a day and check it out, and then come back and make your final decision. So that’s the free seminar, right? And he says, Okay, why not, you know, go down there. So he goes down down to hell. And you know, first of all notices it’s it’s really hot, but it’s a dry heat. So it’s not that bad. Just like Arizona, it’s just like Arizona. And then he looks around and men are dressed to the nines wearing, you know, the latest tuxedos, designer suits. Women are wearing beautiful evening gowns. They have glass of champagne in their hand. He looks over at the buffet. And there’s all this wonderful extravagant food, anything you want, right? And people are laughing and having a great time. There’s music, they’re dancing, they’re living it up. It looks great. So the next day after his fun night in hell, he goes back to the pearly gates and says St. Peter, hey, look, you know, you’re right. I’d like to spend eternity there. It looks like a great time. gets back down there for his permanent stay in hell. And he looks around and it’s like terrible. First of all, it’s hotter than it was the night before. Like someone turned off the AC and then he looks around and people are wearing grungy rag clothing. They’re disheveled. They look terrible. They look terribly unhealthy. You know, they’re all like, you know, pawing at each other and, and gnashing of teeth and everybody’s desperate for food and water. And it’s awful. It’s just a wretched existence. He says to the guy next to me, he says, Hey, I was here last night. And I made my decision to spend eternity here because it was great. And the man says to him, he says, oh, last night, that was the monthly opportunity meeting. So there you go.

Adam 8:34
I will say these seminars aren’t necessarily bad to go to sometimes you might actually if you’re interested in flipping, or something like that, if you’re interested in the topic being led, maybe you want to go to a free summit just don’t cave into the pressure.

Jason Hartman 8:46
Yeah. I went to many of these. I’ve been to many of them over the years. I remember I went to a couple of them in particular, I think one was nouveau riche that is now defunct and it’s now changed its name to Renato or something like that. You know, they have that same thing. They have like three courses. You know, there’s the free meetings then the $5,000 thing and then the $15,000 thing and the Grand Master thing of $20,000. So, you know, you basically spent like 40 grand, they literally stand at the back of the room, intimidating people to try to leave the room. Now, I’m not saying that was the nouveau riche one because I’m mixing them up. Another one was Armando montelongo, another TV star who got indicted last year, you know, it’s just unbelievable. It’s like a cult, whenever it’s a free program, you probably should watch out, that’s your first sign that of course, you know, you’re going to be up sold to something, and it will be a bait and switch. Because, look, everybody wants to make money. Nobody does anything for free. You know, you’ve got to always assume that everybody on the planet is almost always looking out for their own interest and they don’t care about you, and they’re trying to get in your pocket and take your money. Okay, so You know, capitalism is great, but it has its flaws, okay? So

Adam 10:04
you got to look at where they’re making their money, how they’re making their money, and decide if that’s for you. But yet, even if they’re looking intimidating, just walk right by them. Because you can learn things at this. Like, even if you go to like a webinars, you always know at the end of webinars, there’s going to be a pitch, but you can just ignore that part if you’re not at all interested in it. So these things, they leave you in with the promise of celebrities, and especially if you see the celebrity thing attached to it, but then the celebrities not at the event. that’s a that’s a big tell.

Jason Hartman 10:31
And even then, who cares if the celebrity is there, right. But I’m just saying,

Adam 10:34
if you watch the show, and you think, oh, they do a really good job or know what they’re talking about, but then they’re not willing to put their body where the action is. Yeah,

Jason Hartman 10:44
yeah. So this is the Federal Trade Commission and the Utah division of consumer protection, announced this week that they’re charging Utah based company with allegedly lying to consumers to convince them to attend the company’s supposedly free real estate seminars. Company promised to give away the secrets to making money flipping houses at the event, but actually charged 10s of thousands of dollars for said, quote, secrets unquote.

Adam 11:09
Well, that’s the secret. The secret is you have to spend $40,000.

Jason Hartman 11:13
Yeah, that’s the secret. Yeah, absolutely. Oh, the three day workshop in their scam was 2000 bucks. 1997. So now there you go, Hey, at our events, when you come to our events, this is the deal. The rubber meets the road at whether or not they actually have to provide you with the actual properties. It is so easy to get everybody jazzed up and hyped up about the opportunity meeting and take a bunch of their money and send them out into the world and have them look for the needle in a haystack deal, which is possible, but extremely, extremely hard to find and very rare. But it’s possible. You know, it’s not impossible to find those deals they talk about, and they’ll always have a couple of examples. of them, you know that they Trump it and use over and over again. But it’s really easy to do that. But we on the other hand, they have to provide the actual properties. Because we are at our core, a real estate broker, okay, we hold a California real estate license, we provide a referral network, people can buy properties through our network. And man, when you’re attached to the actual outcome of can you deliver the property that has a much higher standard? Okay, then, you know, can you get people jazzed up about, you know, some opportunity off in the distance. And I guess that’s a good segue to going into Daniel area. Lee’s, we want to play for you a little clip where he talks about making money less abstract. And this may not seem like rocket science to you, but I think it’s really important. And it’s something that I notice, I do and I think it’s a good thing that I do this. And one of our Hey, we got a few celebrity clients of our own. Okay. One of our celebrity clients told me that he he texts me a few weeks ago, saying that he charted a private jet. He said for the cost of that private jet, I could have purchased another property from you in Memphis, you know? And in cash for cash. Exactly. And that’s true, that is a proper way to compare it. Look, I can certainly afford to fly first class or even fly private pretty much everywhere I want to go right. But I rarely do it. Okay. I’ll fly first class or business class on longer trips. But not even always, sometimes I just fly economy, because the price differential is so absurd. You know, having grown up poor, I think I have a deeper appreciation for money than some of these people that made it too easily, right. I just kind of compare it like this. I’m like, Look, I’ll be on that plane for 10 hours. And the cost of upgrading my seat is $400 an hour versus what I’m going to pay in economy class, or business versus first class. And I’m like something you don’t that’s just dumb. It’s not worth it. It’s just frivolous. It’s too frivolous. So, yeah, whatever. You know, I was surprised when George Gilder who spoke at our last meet the Masters event, and has been on the show many times. And, you know, Merrill Lynch was going to take his publishing company public years ago with 150 million dollar valuation. I was really kind of surprised, but then not surprised when he told me right before speaking at our event, he came back from China and talked about the flight and he said, he flies economy class, you know, and he lives on 100 acre property videos. You know, it’s just funny, but when you compare things properly, it’s the right way to do it. You shouldn’t always compare You’re expenditures within the same category. And I think this is a really important thing. And that’s the point Daniel makes. Adam, you want to go to the clip, let’s go. So what he’s talking about here, let me just set this up for you. He’s talking about how he’s developing an iPhone app that allows you to put in the things you like to spend money on the things you personally find valuable. So you plug them into the app. And then when you see an other expenditure out in life, it tells you how much of this you can buy. So you’re comparing outside of the category, very important concept.

Adam 15:36
Books. And now you’re tempted to buy something that thing translates in terms of the things you’re interested in. So it says, Hey, this particular item is like half a day in the Bahamas, two shoes at one lucky which one of those is better than reality. We think that comparing everything to money is great. But the reality is that it’s very hard to think about money. It’s so general, it’s abstract. That we don’t really know what we’re giving up and what we’re gaining. So if I gave, you know, $10 as a gift, how happy would you be? Would you be happy as the module $10, the best use of $10 that you could use, of course, now, if I gave you a CD, you know exactly what you’re getting, and you’ll have an additional value for it. So money has kind of lots of problems.

Jason Hartman 16:19
So what he said there is that you will have a hedonic value. In other words, we talked about that when I talk about inflation, and the way they’re skewing the inflation index, the consumer price index, they do it what three ways good students, you know, through hedonic waiting and substitution, the hedonic indexing concept is an index of how much pleasure you get out of it. And that’s why buying someone a gift is better than buying them a gift card, because when you buy them the gift card or gift certificate, they don’t really know what it’s worth. I know we’re all intelligent people. Yes, we know what $100 means are we know what in his example, $10 means and by The way he misspoke when comparing half a day in the Bahamas versus a lot day, you know, he said that backwards, but you get the idea. And the actual commodity, the goods, the thing that has the intrinsic value, like a new shirt is more valuable than the gift card, which we don’t really know what it’s worth, even though we know what $100 means, right? We know what that means. But it’s important to always compare outside of the category, money, we

Adam 17:31
really fooled ourselves. I mean, we are our biggest enemies with money, and there’s some things we can do about it. Automatic deductions are wonderful. Right? Ideally, you should wait until the end of the month, you can see how much extra money you had. And you should put that in your savings account. We don’t do that. Well, if we did that we will never save. So what we do is we take money out of our pocket into a savings account in the beginning of the month. Take it outside of our control. And as a consequence, we spend less and save more. This is by the way, very good trick When you say if I rely on my own decision making in every moment, I will fail many, many times. If I think once very hard and create a standard of what I want to do, and create an automatic execution that will take out the money every month from my bank account, then there’s good chance I’ll behave but not because of

Jason Hartman 18:16
him. That’s the concept of paying yourself first, pay yourself first very good concept. Because when that’s an automatic deduction toward a savings or investment account that you know, you can save up X amount of dollars for a down payment on another property. You’ve made the decision beforehand, so you don’t have to think about it. You don’t have to make judgments in weak moments. You know, never go to the grocery store when you’re starving, right? Because you won’t make good decisions. Never go to a restaurant or an all you can eat buffet even worse, when you’re really really hungry. It’s better to go when you’re in the middle of that spectrum and you know, you’re hungry

Adam 18:58
but you’re not starving. And when you look at This when you pay yourself first, you can still use the money that you put in there for something else. But you have to mentally go through it and justify it to yourself. So you know, say you have $20,000 and you’re about to purchase a new property, but you want to go on a vacation that’s going to cost $1,000 more than you were initially thinking. You have to look at it and say I could use this money. But is it worth it? So I mean, it just forces you to make your decisions a little different.

Jason Hartman 19:25
Yeah, absolutely. So pay yourself first. That’s one of the concepts of the famous old book, The Richest Man in Babylon by George Gleason, great little book. Definitely one to give to your kids and have them learn about money at an early age. Very good concept. pay yourself first.

Adam 19:42
Because it’s making it for me. So I think automatically the options are one, thinking about money in concrete terms. So when you come to think about buying something, usually we compare within categories. For example, restaurant, you look at the wine list, and you never say to yourself, Mike Goodness for the difference between these two bottles of wine, I could buy three gallons of milk, right? We just don’t think like this, we compare one to one and milk to milk and beer to beer. But in fact, it’s how we want to think now it’s very hard to do it in an extensive way. But when you face something, you could say, what else could I get if I didn’t get this? And which one of those is giving me their greatest pleasure? Now, it’s not always that we always need to save more and spend less, I think the question is, are we allocating your money correctly or crossing two different categories? Money is a great way to get happiness, right? lots of wonderful things you could do with money. The question is, are we really optimizing on that? So if you think about getting lattice and getting cable, which one of those is actually giving you a great, greater happiness? And if you had to cut them one of those, which one would you would you cut? And so I think thinking in terms of concrete in concrete terms would would help us

Jason Hartman 20:54
a great deal. Here he talks about something he calls the pain of paying,

Adam 20:59
there’s another idea called the pain of pain, which was proposed by George Lowenstein and drogyn prelab. And he was the idea. Imagine that I own a restaurant. And imagine that I discover that people come and they eat 50 bytes and they pay $60. In one day, I offer you a great deal. So you know what, today could be half price, 50 cents per bite. And moreover, on only charging for the bites you take. And you will just sit there when you come to eat. And I’m going to sit there with your wallet and every bite you take, I’m going to take 50 cents from your wallet and transfer it to my cash register. Now, it’s going to be a very efficient way to eat, because you’re not going to spend much money cheaper, class only device you eat, but how much fun will eating me? Not very fun, right? Why? Because it turns out that the simultaneity of eating and consuming or enjoying and paying actually makes things less happy. Here’s another example. Imagine you go on a cruise to Alaska. And you can either pay six months in advance, or the moment you get off the ship. It’s much more real Reasonable economically to pay the moment you get off the

Jason Hartman 22:02
sea. Everybody paid for our cruise in advance. We’re leaving on Saturday,

Adam 22:06
the ship, but how much would you enjoy the last day of the cruise, it will be kind of miserable knowing that tomorrow you have to pay all this money. So what happened is that the symbol kinetic is very important. And we can use it in two ways. We can think about how we reduce the pain of pain. So for example, credit cards are wonderful mechanisms to reduce the pain of pain. If you go to a restaurant and you pay in cash, you would feel much worse. And if you pay the credit card, why, you know, the price is no surprise. But if you find cash, you feel a bit more guilt. It’s a bit more difficult. It’s kind of painful to part with your money with the credit cards at another time. So you can think about this as good or bad. If you want to spend more money in restaurants use credit cards more than cash if you want to spend less use cash more than credit cards. But in general, we can think about how to use the pain of paying and how much do we want and I think we have like a range. Credit cards have very little panels. debit cards have a little bit more because you feel like today, at least it’s coming out of your checking account. And cash has much more. But you can even do better than cash. Imagine that you had envelopes, and your envelopes with telling you how much money you have in each category for the for the rest of the month. With an envelope for coffee, you had an envelope for restaurants, you had an envelope for grocery. Now, when you take money out, you also see how much what you have left is shrinking. And that will actually increase the pain of paying more. Now, I don’t think we should go around life and being miserable all the time and feeling the pain of pain. It’s a question of what categories we want to spend more on in what categories we feel that we’re spending too much or we want to cut down.

Jason Hartman 23:40
And that for me is the key message. You know, this is not rocket science. That’s not like any huge Aha, right? But always compare when you’re spending money compare out side of the category. That’s why for example, you know, like my girlfriend and my mother both they’re both food You know, they love to go to fancy dinners, and you know, sit at the table for two hours. And I’m like, I just hate sitting at a table for that long. And I also hate spending money like that, I just don’t think it’s a very good value. You know, I’d rather go on a trip. I mean, you can spend a fortune just going out to dinner. It’s amazing. And I like to go out, I just don’t like to make it a big, huge production, right? That’s all I’m kind of in the middle. But compare outside of the category, what you’ll find is that some things just don’t really bring you much joy or happiness, and you’re not getting a good hedonic value for your money, whereas other things might be much less expensive, and you’re getting a much better hedonic value. So have your own hedonic index, the way the Guru’s and the government use it against us to underestimate the true rate of inflation. We should all have our own hedonic index, what do we really get the most pleasure out of, and let’s Feel free to spend money there, rather than just sort of going through life, not thinking about it, kind of wasting money on a lot of things. Because remember, especially when you’re spending money that’s not tax deductible. And being a real estate investor, you’re really in another business, right? You have a business or your business is real estate investing, even if you have a regular day job. And so you get to make more expenses that you have deductible. For example, maybe you’ve been talking and thinking about going to Disney World or Epcot Center. You know, maybe you haven’t been there ever, or you haven’t been there in several years. And you come to our event profits in paradise in Orlando. Now you can deduct the cost of that trip right now. Check with your tax advisor on everything. That’s my disclaimer, but hey, look, if it were me, right, I would deduct the cost of that trip. Okay. And a lot of that stuff would be a business expense, a business education expense, and you get to sort of compile things together, you get to enjoy a trip, and you get a tax deduction. When you don’t get that tax deduction. Just consider that you’re paying. Depending on where you live, you’re paying maybe 40 or 50% more for that item than a deductible expense. You’re getting it at a much bigger discount. So always keep that in mind and hypnotically index your own expenses. Again, this is not a big revolutionary idea. Okay. Just something to mention. We’ll be back to you with more big revolutionary ideas on another episode. But Adam, before we go, the best economic news that neither side of the political aisle want to talk about. Are you kidding me? There is that news that still exists? In today’s world? We’ve heard about wage growth. And we know that wage growth has been happening for the first time in decades. But we’ve also heard recently if you’ve been following the news wage growth is slowing. But that’s not exactly true. wage growth for the higher wage earners is slowing. That’s down to two and a half to two and three quarter percent year over year. So just like we talked about how you can’t listen to the idiotic soundbites on the news, or the things that you read in any national publication that talk about the real estate market or the housing market, this is the same idea. You’ve got to segment you’ve got to slice and dice. You got to peel back the onion, whatever old saying you want to use. I’m pulling cliches today. And you’ve got to really look at which segment is affected, right?

Adam 27:44
Yep. And you got middle wage workers. Their wage growth is only about 3% year over year, but the lower wage workers, the bread and butter workers, and people who are doing all the grunt work,

Jason Hartman 27:55
they’re doing well.

Adam 27:56
They’re crushing it. They’re a four and three quarter percent year. Over here, and this, it’s growing the highest it’s grown in the last 20 years, says here, the Federal Reserve Bank of Atlanta found that wage growth among the lowest 25% of earners has exceeded the growth in every other quarter in recent years. So I mean, it’s just there, you know, crushing it for the low wage. So here’s the reason why,

Jason Hartman 28:22
why isn’t Bernie Sanders happy?

Adam 28:24
So the democrats don’t want to talk about it because it sounds like Trump’s economy. Trump’s administration is growing wages, and it’s true. It is currently growing and

Jason Hartman 28:36
whether or not you agree that you never know you heard that from Adam, who I mean facts are facts.

Adam 28:42
Facts are facts. Now, whether or not you attributed to him is a completely different story. But during Trump’s administration, they don’t like to talk about the fact that the lower wage and middle wage earners are growing because

Jason Hartman 28:55
they’re fine talking about that Trump is all for the people. He’s a populist, right? I’m talking

Adam 28:59
about Democrats Well, we have the Democrats, they don’t want to tell their they don’t want to tell their constituents or primary constituents, that their wages are going up and you can think the Trump administration Well, okay, so now let’s look at the other side.

Jason Hartman 29:11
Yeah, we got that. So what does the Trump administration and what do the republicans want to hide? Why aren’t they bragging about this? Hey, the wages are going up, wages are going up. Unemployment is the lowest it’s been in five decades. Well, they don’t like having to tell the higher wage and the business owners that the part of the reason it’s going up is because of a tight labor market and increase in minimum wages, which is helping the lower wage workers so they don’t like talking about that so much. And they also don’t like telling the higher wage earners. Hey, you guys are falling behind. You know, you guys are only rising at two and a half percent and they’re rising at four and a half to 5%. You know, so they’d like to just say, overall wage growth is up. And that’s slowing down a little bit, but they don’t, they don’t like to parse it, and that So you got to look at what each one wants to tell their constituents. In general, Republicans have the higher wage and business owners. So they’re going to tell them, Hey, we want to tell you wage growth is great. But if it’s not great, we’re just going to ignore it. And democrats are going to say, hey, lower wage workers, we’re not going to inform you that your it’s going up the highest in the last 20 years. So it’s something that neither side can really thump their chest about. So they’re just going to keep their mouth shut. Yeah, right. That’s pretty interesting, very interesting. You know, one of the things that you really want to make sure you’re doing in your life, and I just finished to Nassim Nicholas Taleb books. That last one I finished yesterday was anti fragile, and wow, it’s just brilliant. And then even better, I think is the first one I finished in New York, which is a skin in the game. In anti fragile, he talks about the counter intuitive idea of how fragile someone’s career or business or life is. You know, he gives the example. He says, Look, if I’m a blue collar worker, and you know, I make minimum wage or, you know, above minimum wage, but it’ll generally look considered low wage, versus being some big CEO, whose life do you think is more anti fragile? Now, anti fragile is the term he uses or maybe even coined the term I think, to describe the opposite of breakable. Right? fragile fragility is a bad thing, right? We don’t want our career or financial life to be fragile. We want to be anti fragile. And he basically shows how the low age person is much more anti fragile, because I mean, you know, let’s take any one of the I mean, you know, pick Take your pick of scandals, right, they’re all over the news. All these scandals. The low wage guy is not susceptible to a scandal, but the CEO is susceptible to scandal, the Catholic priest is susceptible to the scandal. Where is the blue collar worker is not susceptible to the scandal. So who really is more fragile and who’s more anti fragile? It’s interesting to think of it. You look at a lot of these businesses, and I look around and I hear this, like bs claims from my entrepreneur, acquaintances, who are just half of them are just full of crap. They’re like, there’s this one out there that brags constantly about how he was, you know, he had a business with a $10 million valuation completely bogus, right? He didn’t sell the business for $10 million. He was just trying to raise money based on his arbitrary valuation. And he had three partners. So it’s not like he owned it all. He was just the most talkative, right, and it never sold for that. But everybody thinks he’s some rich, successful guy, right? You look at a lot of these businesses where there’s partners, and I call this valuation inflation, right? It’s just bogus. And a lot of these companies and people are a lot more fragile than you think they are. They have huge overhead, their whole empire can just go away in a matter of months because of their overhead cost. Look at all of the big ones, right? Look at WorldCom Enron global crossing. Bernie Madoff, you know, the list is endless, right? Look at Lehman Brothers. It’s just an endless list of fragility. And he talks a lot about the fragility in the banking system, and how really, the global economy is just built on a house of cards. It really is the only thing that we can truly be like live and this is just me talking these last part, truly concerned with is the comparison of the fragility and you know, a lot of the haters and sky is falling chicken. Little People love to talk about the us stay and in America, they can talk about that because there’s really no repercussion. You can criticize the governor All you want, you know, you’re probably not going to go to jail. Okay? I mean, maybe you will, but it’s unlikely, okay. And you can be really outspoken in a place like the US. And thankfully That’s true. But the US is is not very fragile compared to many other countries like Japan, for example, that’s a super fragile country. I mean, the US has such incredible things going for it, not the least of which are the American brand is the biggest brand in the world. The American military is the biggest one that human race has ever known. It’s the reserve currency of the world. And then those Chicken Little People will say, well, that could change, you know, the reserve currency could become the yuan, right or something else, or the euro. No, that’s really unlikely. Actually, the dollar is still pretty awesome, comparatively speaking. And it’s got the big brand and the big military behind it, you know, comparatively speaking, I mean, the US is not very fragile company. narratively speaking, now, if you want to look at the whole global economy, it’s all fragile. It’s all a game of smoke and mirrors. It’s built on derivatives and House of Cards. But every economy is like that. Pretty much. So compared to what, that’s always the right question, isn’t it? Yeah. And you know, the whole money thing, it’s, you look at other countries that have their own control their own currency, and they’re doing just fine, too. So I mean, it’s, there’s a lot going on, in that regard. So the whole idea of having to worry about those kind of things to me is not as important. You can’t worry about it, you know, there’s just you have no control. It’s like, you know, I don’t necessarily deny that, like UFOs might exist. You know, I mean, with billions of planets. There’s probably some life out there somewhere. But I’m not going to agonize about it, because it, there’s nothing It doesn’t mean anything to me. At least not at this moment. Maybe someday will. But you know, who knows, right? so

Adam 35:55
far. They’re learning something out of area. 51. Right, exactly. And I’m not worried about Bigfoot. Either so there you go.

Jason Hartman 36:02
All right, everybody, let’s wrap it up for today. We’ll be back tomorrow with another great episode. Go to Jason Hartman live.com Join us for upcoming profits in Paradise is going to be an awesome, awesome weekend and we’ve got a property tour on Friday before that, that’s October 25. For the property tour. A lot of you have been registering lately. do reach out to us after you register. And let us know if you’ll be attending the Friday property tour. That’s an optional event. Oh, and also I should mention again, if you want to attend just the property tour, you can do that as well. So just go to Jason Hartman live.com and check all that out. And until tomorrow, happy investing. Thank you so much for listening. Please be sure to subscribe so that you don’t miss any episodes. Be sure to check out the show’s specific website and our general website heart and Mediacom for appropriate disclaimers and Terms of Service. Remember Guests opinions are their own. And if you require specific legal or tax advice, or advice and any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to iTunes or Stitcher Radio or whatever platform you’re using and write a review for the show we would very much appreciate that. And be sure to make it official and subscribe so you do not miss any episodes. We look forward to seeing you on the next episode.

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