The Young Turks - Trump Warming Up To North Korea, Will Excessive Bank Loans Crash The Economy?

Episode Date: June 12, 2018

A portion of our Young Turks Main Show from June 12, 2018. For more go to http://www.tytnetwork.com/join.  Hour 1: Will Trump pull US troops out of South Korea?, Stupid peace is still peace. Hour 2: Banks handing out huge loans to almost anyone Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

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But if you want the full show, which is actually five segments, come become a member and support independent media as well. t-y-tnetwork.com slash join. Meanwhile, enjoy the free podcast. Hey everyone, welcome back or welcome to the Young Turks. I say welcome back because it's been a long day, lots of news stories breaking throughout the day. Yes, we will talk about North Korea, but there are a lot of other news stories that we will get to, including corruption in the White House, how much money Ivanka Trump and Jared Kushner made on the side with their little side hustles while they've been in the White House. Little.

Very big side hustles to the tune of $82 million. And we will also discuss the AT&T Time Warner merger in the second hour. But as you can see, we have an awesome panel here. Brooke Thomas and Mark Thompson join me for another day of news. Thank you so much for being here, guys. Great being here, Anna. Yeah, thanks for having me. This is a huge day.

It is a huge day. Now, before we get to the story, it's just a very quick announcement. As some of you know, we have been supporting a candidate, Brent Welder, for Congress. And if you are interested in also supporting his congressional run, we are having a fundraising event for him. It will be at the Mandrake, on the patio at Mandrake in Los Angeles. If you're interested in attending, you can buy tickets at Brentwelder.com slash t-y-T. The event will take place Thursday, June 14th. So this Thursday coming up, and Jank Yugar will be there, Allison Hartson, Stivo, and Bank

Mankowitz will also be special guests at the event. So please attend if you are interested. All right, moving on. Donald Trump's summit with Kim Jong-un, the leader and dictator of North Korea, has happened, and they have signed some sort of agreement, although that agreement is vague, and we'll get to the terms of that agreement in just a moment. But following the meeting, Trump did speak to the press and said the following. He said that he was suspending joint military exercises with South Korean forces and that he was confident Mr. Kim would begin dismantling his nuclear

arsenal very quickly. Now, that news caught South Korea by surprise. They had no idea that was coming. And based on that very statement, it appears that the United States has already made a large concession, a big concession to South Korea. There's also talk of the U.S. I'm sorry, to North Korea, my apologies. A big concession to North Korea. And another concession is the idea of bringing U.S. troops who are currently stationed in South Korea home to the United States. Currently there are about 28,000 American troops in South Korea and that concession could destabilize the region. South Korea is very much concerned about that.

But the only agreement that Kim Jong-un made was complete nuclearization, which sounds good. But there is no talk of a timetable, and there is no talk of a verification process to ensure that Kim Jong-un upholds his side of the deal. Now, we'll get into specifics and more details in just a second, but I wanted to get some quick reactions from you guys before we move forward. The only thing new from this is that America has made a huge concession. Yeah. That's not what at all would we expected going.

I don't think what anyone expected going in. I'm not surprised at all that in the end of it, it's we will continue to have talks to see what North Korea will do. That's right. That's right. I'm confident they will begin soon, possibly maybe, maybe not. We're going to talk about it. Like, what? Yeah, we talked about this yesterday as something that was going to be primarily a photo op,

and it was really a bunch of pageantry and largely ceremonial. So from that standpoint, I'm not surprised there are no details. There are really no details that could be possible in a meeting of such brevity, and it was really designed just for this moment to see these two leaders shake hands. Now, let's leave aside whether or not this is a good thing, but just talk about what Anna is mentioning, which is that there is. out of left field, this concession, that we're going to stop these what are perceived as sort of aggressive military maneuvers that threaten in some way North Korea's safety.

At least this is the way it's being cast. That's not an unfair way to cast it. I would say this, overall, and believe me, we can talk about Kim, and we talked about him yesterday, and I talked about what a horrible, horrible dictator he is. It's a gulag nation, and most of his nation is starving, and we can get back into that. But just on the point that you're talking about, Anna, I'm not sure, and I think people who have to speak honestly about this have to agree, I'm not sure that some small concession, even some large concession on our part doesn't help de-escalate the tensions there. And that's a net gain for the world. We've come in this weird way, and it's a bizarre, perverted way that we've come to this place. But having said that, if we can get some peace on the Korean Peninsula, that'd be good. Now, finally, the troops, that's a different thing.

That is absolutely a different thing. Because that does ensure security to some. China would love to see us get those troops off of the Korean Peninsula. You're absolutely right about that. And the reaction from China has been a favorable one. They're happy with these talks. They're happy with the outcome of these talks. And again, you know, right now, we really have no idea how things will proceed because what they signed, what Kim Jong-un and Donald Trump signed was very skimpy on details.

There was really nothing there. But again, there were large concessions by Donald Trump that go against the interests of our ally, South Korea, right? So let's get into more of those details. So Trump's decision to suspend the war games, which he described as, quote, very expensive, but also, quote, very provocative, given the continuing negotiations, appeared to take South Korea by surprise. So the military exercises are one thing. But what also got them got South Korea a little worried was the idea of pulling U.S. military out of South Korea, because that essentially messages to North Korea, you know, any form of provocation.

could be met with military action, with the United States backing the South Koreans. Taking the troops out of the country and bringing them back home could really destabilize that situation. And also, if you look at the terms of this agreement that they signed, who acts first? Is Trump going to bring the troops back home? And then we wait for them to denuclearize, and then we lift the sanctions? How does that happen? How does it get verified? Now, South Korea did respond to this. The U.S. and the DPRK, I'm sorry, this is actually more of the agreement, the U.S. and the DPRK will join their efforts to build a lasting and stable peace regime on the Korean peninsula.

Okay, how? Exactly. That's just more generic. Exactly. So let's hear from the South Korean spokesperson on this. USFK has received no updated guidance on execution or secession of training exercises to include this falls schedule Ulci Freedom Guardian. So in cooperation with our South Korean partners, we will continue with our current military

posture until we receive updated guidance from the Department of Defense and or Indio-Pacific Command. All right, so guess what? The Department of Defense also wasn't notified about this unilateral decision that Donald Trump made. So let's go to their statement. The Department of Defense continues to work with the White House, the interagency and our allies and partners on a way forward following the summit.

We will provide additional information as it becomes available. But again, they were unaware that Trump would offer to bring troops home or end these military exercises. All right, so with that said, let's take a look at what Donald Trump had to say to the press about these so-called war games. One of the things that I suggested, and I want to do, is we're going to stop the war games. Flying to South Korea to practice and then drop bombs all over the place and then go back to Guam. We are going to get out of the war games that cost so much money. So under the circumstances that we're negotiating, a very common.

comprehensive complete deal. I think it's inappropriate to be having war games. And I'm doing something that I've wanted to do from the beginning. We stopped playing those war games that cost us a fortune. The war games are very expensive. We pay for a big majority of them. We fly in bombers from Guam. I know a lot about airplanes. It's very expensive. Because I think number one, it's very provocative. And I want to do it. And I think they're very happy about it because it is so provocative. And I think it's very provocative. It's a very provocative situation. You know, I wanted to stop the war games.

I thought they were very provocative, but I also think they're very expensive. It really is something that I think they very much appreciated. And I think it's very provocative, especially, George, since we're getting along. So we need to talk about a relatively new show called Un-F-The Republic, or UNFTR. As a young Turks fan, you already know that the government, the media, and corporations, are constantly peddling lies that serve the interests of the rich and powerful. But now there's a podcast dedicated to unraveling those lies, debunking the conventional wisdom. In each episode of Un-B-The-Republic or UNFTR, the host delves into a different historical

episode or topic that's generally misunderstood or purposely obfuscated by the so-called powers that be, featuring in-depth research, razor-sharp commentary, and just the right amount of vulgarity, the UNFTR podcast takes a sledgehammer to what you thought you knew about some of the nation's most sacred historical cows. But don't just take my word for it. The New York Times described UNFTR as consistently compelling and educational, aiming to challenge conventional and upend the historical narratives that were taught in school. For as the great philosopher Yoda once put it, you must have learned what you have learned. And that's true whether you're in Jedi training or you're uprooting and exposing all the propaganda and disinformation you've

been fed over the course of your lifetime. So search for UNFDR in your podcast app today and get ready to get informed, angered, and entertained all at the same time. I just want to clarify something in regard to Trump saying that these war games are expensive. It just seems a little silly and strange for someone like Trump to make that argument when he himself has advocated and pushed for a military parade in Washington, D.C., that would cost somewhere between $10 to $30 million. So if you're really genuinely concerned about how expensive it is, maybe don't consider wasting taxpayer money on a military parade, just so you feel better about yourself and puff up your chest. But he is saying the word provocative,

over and over again, which plays into the narrative that Kim Jong-un wants to push out there. And by the way, mind you, the concessions are one thing. Another portion of this is how much this meeting has legitimized Kim Jong-un's place in the world, in the international stage. Because he's out there in Singapore, taking selfies with world leaders, gallivanting around town. This has really led to a certain level of credibility that North Koreans have been craving. And, you know, I do agree that it's better that Trump takes this route of diplomacy, but he has gone a little too far, and that's what I'm concerned about.

We're now celebrating him. Yeah. I'm always thinking the basis for the reasoning. That's the thing. So when Trump speaks out of both sides of his mouth all the time, you know, one minute, he's for immigration, next minute he's not, depending on which immigrants we're talking about, it's with anything. So again, with this, so when people say, how could you guys be against what he's saying,

you're just out there just to be opposed him because it's him. Well, if he says both things, we have to now try to determine how he came up to each of those scenarios. And the reason he came to this scenario was at the end of that whole compilation was because they're being so nice to me now. Now we're getting along. Now they're my friends. It's not based on anything it's of reality, anything your experts told you,

anything of what the repercussions of doing, previously doing the military exercises were doing, which a lot of people leave nothing, except for puff and not your chest, which you were a fan of before. So now it's just people can easily say, hey, I like you. Hey, nice hair, guy. Hey, we can get a long take, won't we?

And you'll give him anything we want. So it's not these concessions, these particular ones, it's the next ones you'll give because he gave you a piece of cake. But there is a caveat that I wanted to quickly mention. Because remember, Macron from France was very complimentary to Trump because he understood this is the strategy to use if you want to get through to Trump and if you want him to agree with you on the issue. including the Iran nuclear deal, for instance, which France did not want Trump to pull

out of. But Trump quickly turned on Macron and went against what Macron wanted. And I realized something. Trump is much more willing to go against our allies and favor our adversaries. So that's certainly the case with North Korea, with Russia. And I think that he, for some reason, has some sort of affection for those who tend to be dictators, those who have a dictatorial streak. And he will say the worst things about Justin Trudeau and call him weak and meek, but then turn around and say all of these great complimentary things

about someone like Kim Jong-un. Look, the outcome of this meeting further alienated our allies. Now we're alienating South Korea and Japan. I mean, these are things that we should all consider even though, again, there is that silver lining of diplomacy rather than insults on Twitter. Right, because it's not just friends. We have a very clear set of friends that he is slowly turning into enemies. And we've seen this happen specifically this week multiple times already. It's, I guess, new friends that everyone else is telling him not to interact with. Well, he does have a thing for strong men, you know.

It's true. I mean, Duterte and Erdogan and Putin and Kim now, and so on, I could go on. It's true. And he himself has got sort of strongman tendencies, right? He'd like to sort of be, and he praises Kim for being a tough guy and taking a position of power at a young age and ruling with a tough hand. I mean, these are all pretty disgusting things when you look at the details. But to what J.R. is saying, it's interesting, you know, if you end up in a good place, a place of peace, and I know I'm going to get barked out of the room on this, but I'd rather end up at a place of peace for the wrong reasons.

That is to say, just because they gave him cake and gave him a parade, if it ends me of, up in a good place, and if it's a net positive in terms of producing peace, I'm for it. The problem is the details that follow beyond this ceremony, I don't know that we're going to see any follow-through at all. Trump got his moment. He got his photo up, and he gets to proclaim, I brought peace to the Korean Peninsula. But as you're going to detail, when you compare this to the agreement that he was not such a fan of, like the Iran Agreement, it leaves us not in the best position.

The Iran Agreement specifically had a process of verification that indicated that they, would stop their nuclear programs. We don't have that with North Korea. Now, the argument that you'll hear from some of the supporters of this agreement, of the North Korea agreement, is that, well, there will be follow-up meetings to kind of hash out those details. And by the way, Republicans in Congress, to their credit, are fighting to have this, you know, done through Congress in the form of a treaty. So you can really, I guess, solidify the terms of how this is all going to be done. And the reason why I say, to their credit, is because one of the biggest criticisms that Republicans and Congress had toward Obama and the Iran nuclear deal is that Obama acted unilaterally.

And they're making the same arguments in regard to Trump. And so you don't see that often in politics. Usually things become tribal, and you'll see people support their side while simultaneously and hypocritically criticizing the other side. But in this case, Republicans in Congress are saying, no, no, no, we need to do this through a treaty. We need to do this through Congress. Now, another part of their agreement was that the joint statement said that two nations would hold a follow-up or follow-up negotiations led by Secretary of State Mike Pompeo and a high-level North Korean official at the earliest possible date to implement the outcomes of the summit meeting. We'll see if that happens.

But, you know, as things stand right now, I think people are right in being skeptical. Pompeo, though, I want to remind everybody, Pompeo lit up Obama over normalizing relations in any way with Cuba. He was brutal about it. So it's so weird to see these guys back Trump and somehow support him in a meeting with a dictator who make the situation in Cuba look like Mr. Rogers' neighborhood. That's right. I mean, the situation in Cuba, the Castro's weren't developing nuclear weapons to cause severe harm. They weren't threatening us. They weren't threatening our allies. You know, you might have issues with the way Cuba is run. You might have issues with communism.

I hear you on that. But at the same time, they did not pose an imminent threat to the United States. They didn't. I mean, they did decades ago, but they certainly don't today. And the idea that Pompeo would be, you know, critical of Obama and his stance on Cuba, and then all of a sudden brokering a peace deal. It's like these guys all have collective amnesia. It's crazy. And the issues that one could have, should have with Cuba, they're not on the table. Right.

We're discussing North Korea. That's right. And by the way, let me just say, I'd rather they just say, well, times have changed, and I did have, at least acknowledge that you are backpedaling on an original position. You could even say I may have overstated it for, and maybe politics got the better of me. At least I would be honest to what's going on here. This is a very important issues. And I hate, you know, to use the word that Anna just used a moment ago, to see tribalism dictate what our decision-making process is.

Exactly. Now, just one more video that kind of shows you how much Trump has played into the narrative that the North Koreans want. Okay, so there was a lot of concern about whether or not Trump. Trump would address human rights violations. He did not address those violations during this meeting with Kim Jong-un. However, he did talk about this issue with the press following the summit. Take a look. And you at that point said that North Korea has more brutally oppressed its people than any

other regime on earth. Do you still believe that is the case having sat down with Kim Jong-un? And does he need to change that? John, I believe it's a rough situation over there. There's no question about it and we did discuss it today. We'll be doing something on it. It's rough. It's rough in a lot of places, by the way.

They didn't really discuss it. And when he says it's rough in a lot of places, I just, I find it fascinating because again, it plays into what Kim Jong-un wants. Yes, there are human rights violations in other countries. There are human rights violations in countries that we do business with, including Saudi Arabia. However, you are making excuses for Kim Jong-un, or at least minimizing how brutal he is to his own people by making that statement. It was the last part of that statement I had a problem with. I understand the president's in a tough position right there.

You're being held to the fire on one issue that you've made an issue that you've acknowledged the human rights issue and what's going on inside the country. So you have to waffle it. It's one of those situations where, as a politician, you have to kind of play it generically, which he did. He said, it's a rough situation over there. That was his way of saying, I still believe it's pretty brutal. But then the last thing he said was, but, you know, it's brutal in a lot of places all over the world. Yes, that completely normalizes it or takes it to a place where it suggests anyway that it's more commonplace than just in North Korea. Whereas we know, North Korea arguably the head of the table when it comes to this kind of brutality.

Absolutely. And then everything else, so he said about him, it doesn't match even that, just that simple, yeah, things are bad. everything else, he said, they're not in the same box. That's right. No, it does appear like you're speaking out both sides of now. At TYT, we frequently talk about all the ways that big tech companies are taking control of our online lives, constantly monitoring us and storing and selling our data. But that doesn't mean we have to let them. It's possible to stay anonymous online and hide your data from the prying eyes of big tech. And one of the best ways is with ExpressVPN.

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break, but when we come back, we are going to compare the Iran nuclear deal, which Trump pulled out of, to this agreement that he just signed with Kim Jong-un. You're right in the middle of this podcast. We've got another great segment coming up for you. If you'd like the full show, which is actually five segments, go to t-y-tnetwork.com slash join. You become a member, you support the show, you support independent media, and you get the whole two-hour show ad-free every day. Let's go do it now. Hey, everyone, welcome back to TYT, Brooke Thomas, Mark Thompson, and Anna Casparian with you. We do have a super chat in JR. Take it away because we want to hear.

So, member shoutouts first real fast. I'll make sure we get these in. Walter Metzger. Thank you. And Judith Lee, members of the day. And our super chat, Mark Keister, $10 on the super chat on YouTube, of course, through the chat, said he may be an idiot. He may have stumbled into this, but a carrot is, in most cases, is better than a stick. I bet assuming verification that Kim Jong-un would jump at a chance to modernize to, quote, prosper, which has been said.

Yeah, and that's not something we've neglected saying here, I think that's true. It's all in the details. It's in doing it a certain way without just jumping into and going, oh, he wants to jump. He wants to modernize and prosper. Cool. Let's just blindly follow him. Yeah, those are big things. The verification is a big if, you know.

And listen, I agree with you, Mr. Keister. But I think that you can use the carrot without being used as a propaganda tool for Kim John. which I think is what Trump is essentially doing right now. You could have a nice conversation with dude and not come out and go on every interview and say, you know, he's the best guy ever met in my life. I mean, I look in his eyes. You're so smart. He's smart.

He's honorable. Yeah, I've had friends that are more dishonorable than this guy. You don't say any of that. You don't have to, exactly. He doesn't have to say any of that. Right. When JR plays it all back like that, it just does sound absurd, doesn't it? Yes, it really is.

He said his father, he said his father reneged on a promise to America because his father felt that America did him wrong. He's running his own talking point. I'm just saying you don't have to say anything, and no one will have to criticize you, except you just had your handshake, you went back and you said, I don't choose to talk about what we talked about. Calculated and careful diplomacy is a great thing. We're not seeing that right now with Trump.

All right, a story I've been meaning to get to, and finally I get to talk about it, so let's get right to it. Following the economic collapse in 2008, there was some effort by the Obama administration and members of Congress to regulate the big banks that were giving out adjustable rate mortgages to individuals who didn't really qualify for those mortgages. Well, fast forward to 2018, and it turns out that non-bank lenders who are not regulated the same way big banks are through Dodd-Frank are handing out mortgages to a ton of people who do not qualify, and many of these mortgages are backed by U.S. taxpayers. Let me give you the details.

There's one non-bank lender that was profiled by Bloomberg, and they did a really great job in profiling them. It's the American Financial Network, and one of their employers is a man named Angelou Christian. Now, Angelo Christian is a heavy hitter within this non-bank organization. He is aggressive, and he is willing to work with anyone with almost any credit score to get them a mortgage. So to give you an example, there was a man by the name of Taylor, corrections officer by the name of Joseph Taylor. He had just gone bankrupt because he had a $25,000 credit card, $25,000 in credit card debt that he couldn't pay off. And because of the American financial network, he was able to secure.

a mortgage. He just bought his first home for $120,000 with zero down from Christian's company. Monthly debt payments now eat up half of his take home pay, which is not a good thing. The way that you get approved for a loan is that they want to ensure that your debt to income ratio is in a good place, right? So you don't have a lot of debt, but you have decent income. But more importantly, they want to make sure that you get approved for a loan where your you're not spending more than 30% of your income on your mortgage or your housing.

And in this case, you have an individual who has terrible credit, who has already gone bankrupt, getting approved for a loan and paying half of his income on housing. Now many of the customers for American Financial Network have no savings, poor credit or low income, sometimes all three. Some like Joseph Taylor, a corrections officer who saw Christian's roadside billboard touting zero-down mortgages, Taylor had recently filed for bankruptcy because of his $25,000 in credit card debt. Now again, non-bank lenders are loosely regulated compared to the JPMorgan Chases of the world,

and they're bigger players today than they were during the last mortgage bubble. They're making almost half, 50% half of new loans compared with 19% in 2017, I'm sorry, in 2007. So, they're playing a larger role because of the fact that they're not dealing with the same regulations that the big banks are. Fifty percent of these loans come through these organizations. This is not good news. These are people who are one paycheck away from not being able to pay their mortgage, right? And we have some numbers on how many of them have already defaulted on these loans.

For first-time purchasers, many non-bank lenders rely on the government's affordable finance backed by the Department of Veterans Affairs and Department of Agriculture and the Federal Housing Administration. These are loans, again, that are supposed to be backed by the government. And the numbers indicate that right now, the amount of money that these homeowners are spending on their insurance is not enough for the government to come in and save them should they begin defaulting on these loans. Look, this is brewing, okay?

This is something that I've been seeing and I've been bringing up. But every time I do it, people roll their eyes and talk about how difficult it is to get approved for a mortgage. No, it's not. There are these, you know, predators out there who are willing to do anything and everything it takes to make a buck. And that's what's happening with some of these non-bank lenders. No, exactly what you said, and you kind of started it out saying, Angelo Christian,

will absolutely get you in it, because it makes him a lot of money. Yep. This makes him a lot of money, just this profile on him. It makes him a lot of money. This is a very successful business for him, but also what you were talking about, paying more than 50% of your income. The reason that you can't even get into an apartment on those terms is because it's not sustainable. You can't continue to do that.

And last time, this all blew up. This has happened before the insurance that the government makes these people who are taking these loans out that makes them take out just in case they can't pay it back, the insurance couldn't cover. Couldn't cover it. It couldn't cover it. And so there are former government employees who spoke to the Brookings Institute, which did an incredible study on this, and I highly recommend you guys read it.

They spoke to, you know, these researchers and said, no, no, no, the numbers don't add up. A lot of these first-time homeowners who secure these loans are supposed to at least, at least make a down payment of 3.5%. But in many cases, these non-bank lenders give them the loan zero down. That is crazy. Now let's get into some more details on the story that are incredibly relevant. As before, lenders use lines of credit to fund the loans, which are packaged into securities. In this case, Ginnie Mae bonds, common in mutual funds and pensions.

Does any of this sound familiar to you guys? Does any of it sound familiar? It's the same dance from before, 08. It is the same dance. And so, look, I saw this story on Bloomberg. I think they did a decent job covering it. But I wanted to read the original study by the Brookings Institute because Bloomberg made a point to include something about how this is different.

This isn't as bad as what was happening prior to the original or first financial collapse related to the housing market. But then I look at the study by the Brookings Institute and they're sounding the alarms and essentially saying that the same thing is happening. And I just thought it was fascinating to compare the two different perspectives. And I don't know why Bloomberg would pretend like this isn't causing a housing bubble that could come crashing down very soon. Yeah, that seems to be at odds with the facts. All the facts point to the exact same situation.

And, you know, those flimsy standards that were put in, as Anna says, after the fall in 08, after the huge correction, after these people who put no money down on mortgages and were getting. When they didn't have the ability, they didn't even have to show proof of income to get some of these loans approved, after all of that, there weren't certain safeguards put in places. I say they were flimsy. I mean, they weren't, didn't even get all the safeguards they wanted. Why? Because of Wall Street lobbying and banking lobbying. But in any case, all of those now, many of them have been rolled back.

So you don't even even have those flimsy standards anymore. So if ever, and now with this influx now of these same kinds of loans, If ever there's a situation which was ripe for failure, it's this one. And guess who's going to have to bail out these huge institutions again, just like the last time. You and me. That's right. We have, again, socialized our corporate profits. They're allowed to make them money.

We don't share their profits during this boom time. But when they go down, you're going to hear too big to fail. The American taxpayer has to step up, and we're going to have to bail them out. Yes. Okay. So one thing that I really want to make sure no one missed just in case because they don't spell it out for you, but this is what's going on. So let's go back to Graphic 40.

As before, lenders use lines of credit to fund the loans. Okay, come back to me. They use lines of credit. Where do you think those lines of credit come from? They come from the big banks. The big banks are essentially bypassing the financial regulation through these non-bank lenders in order to do the same thing, to give out these loans to people who don't qualify. Where do you think the money comes from?

It doesn't come from some rinky dink company that just started. The money comes from the big banks. They're bypassing the regulation, which was too weak to begin with, right? It was weak regulation. If it wasn't weak, then they wouldn't be able to bypass the regulation and do what they had previously done through these non-bank lenders. Okay, so just making that clear. Let's fast forward to 42.

So how many people have already defaulted on these loans? Recent FHA loans are souring faster than those made years ago when the industry had stricter credit standards. So about 9% are 30 days or more past due as we stand today. Now at the height of the financial collapse, about 14% were defaulting on the. these loans. And so this does not look good. And again, for anyone paying attention, all of these like rosy stories about the economy are just terrible. Because it's very surface and superficial. It doesn't really get deep into what's really happening. You know, why is the housing market the

way it is? How are these numbers so inflated when American wages are stagnant? How is this all happening, you dig a little deeper and you find out that the same BS is taking place again. Yeah, it's a, this is, again, the same dance. We're at a different way that these financial institutions where you're getting into trouble, you could say, well, they, they short up one place, but they've let a leak spring in another place. But that's not the case. Zana says it's exactly the same deal. And I'm so glad you brought up the way that these institutions get around even the flimsy restrictions, they pour the money as loans into these, I don't want to call them fly-by-night, but these independent loan providers like this guy profiled in that piece.

Exactly. It's a, I mean, it's a bonfire that's building, and eventually it's going to consume the real estate industry again and the rest of the economy. That's right. All right. Thank you to Brooke Thomas for joining us again. Brett Ehrlich will join us for the final part of the show. we will see you soon. Yes, Brooke. Thank you. Thanks for watching. We're listening to this

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