2:46:05 But no, we didn't talk about all these trusts failing and some of this other stuff. It was a foregone conclusion. I mean you can invest in these areas and that's why the American stock market is so good because at least we are not completely but more transparent than anybody else. Well according to our ex-banker from New York, we won! The American banks won. It's funny, I was standing on the balcony last night...I have a little balcony here Did you finish the story about him when he started his show? Yeah, you know he whoops there we go. Hey man fist bump He was the one that got me on to power and gossip is capitalism That was that was all right, okay? But as a standing overlooking downtown Austin And that's the view I have
2:46:49 Here's what I see. You know, there are a number of buildings and the buildings are labeled and from right to left... Do you have a balcony? You can stand out on the balcony and view the bugs and bats and all the rest of it and say my people! No that would be a southern view and i have a northern view so I see the city which is... You have a balcony? Yeah small balcony Small? Can you have a party on the balcony? Absolutely not. Party in my pants is about it and I go from right to left and there's maybe, I can see 15 buildings maybe something like that then who what do i see? Bank of America Chase bank Moody bank IBC bank And It only kind of hit me last night There's all banks and they have huge buildings They're running the show every single bit of it People like Belinda Gates They are the lower level They are a lower level than these guys
2:47:52 Well, you think they're doing a crappy job these banks? Not for us. And I think in Gitmo nation proper here, I think we're doing okay but yeah...but they're running the drugs and running everything was just that's my point is that really what's going on and just when you see the power this power these huge buildings what is in there What are all these people... Clerks. No! What are they doing in there? What are they doing in this huge Chase Bank building, what do they do it for? I know because Chase Banks and New York that their headquarters or someplace else that's not the headquarters. No no huge. This is one of many giant chase buildings around the country what did they agree with me? What are they doing to need all these people but Austin yeah and then Bank of America as big as the biggest building here what are they doing in
2:48:42 Well, did you know? I read that the retail is what they really want to get away from. None of these banks want to do it anymore. It's all about running the world, I guess. And then this comes out and I thought, I found this was kind of coincidental with my observation of downtown Austin is the president's podcast. It just got a little piece of it his little, um, his little podcast that he does about 2000-3000 people ever watch this thing on video? I don't know if even anyone listens to it on audio and they had a couple There was a couple of orders that came out with this, not memoranda. Not executive orders and it's about something we've talked about in the past payday loans and we've talked about that in regards to people who work at home do webcam work or any kind of work that may or may not look like it's similar to payday loans just individuals and they're getting thrown out of banks
2:49:41 Chase is number one, like we won't let you have an account here anymore. And now the president comes out with this... This began with porn stars? Yeah I think webcam mainly but maybe some porn sites as well and we deconstruct that back to they want to get rid of payday loans And we'll get into that in a second, but first let's listen to the president and how he describes this. And of course, we always start off the podcast with our everyone say it. Hail everybody! Hi everybody five years ago after the worst financial crisis in decades We passed historic Wall Street reform to end era bailouts and too big to fail as part of that reform we created an independent consumer Financial Protection Bureau with one mission
2:50:27 to protect American consumers from some of the worst practices in the financial industry. But was $1,000 of the just go ahead. Just send us in we'll give you a thousand dollars and what was the big on that 27%? The whole thing she did these this consumer protection has done nothing. Yeah nothing as for at least know nothing we can see any evidence of They've already put $5 billion back in the pockets of more than 15 million families. Oh shit! I don't know where those numbers are coming from either This week, they took an important first step toward cracking down on some of the most abusive practices involving payday loans Wow he actually named a company during his speech Did he name a company you said? Yeah that's pretty outrageous He targeted pay day loans
2:51:27 That's an actual company name as well. Yes Wow, let's listen to that again you didn't know that no I did no No, I didn't know that yeah, let's do it again paying payday long go back a little bit more That's pretty brazen is involving payday loans Millions of Americans take out these loans every year In Alabama, where I visited this week there are four times as many payday lending stores as there are McDonald's. Another fine American institution! But while payday loans might seem like easy money folks often end up trapped in a cycle of debt If you take out a $500 loan it is easy to wind up paying more than $1,000 in interest and fees The step that Consumer Financial Protection Bureau announced this week is designed to change that
2:52:13 The idea is pretty common sense. If you're a payday lender preparing to give a loan, you should make sure that the borrower can afford to pay it back first As Americans we believe there's nothing wrong with making a profit but there is something wrong with making that profit by trapping hard-working men and women in a vicious cycle of debt Yeah like student loans as an example? Protecting working Americans' paychecks shouldn't be a partisan issue I love that protecting American's paychecks That's the meme right there. We're going to protect your paycheck. Let's just talk about payday loans for a moment, which I think you're probably more qualified to do that John
2:52:56 Okay. What is a payday loan? Just so we explain this... Payday loans began as a very interesting scheme where you're kind of, you have a bunch of debts or something and you're behind and you're gonna have to pay a bunch of fees. You can take a loan out of your payday that's kinda a pun. You take a loan out in the check that you're going to get but today is Monday, you're gonna get paid on Friday. And so you show some check stubs or whatever, and they'll give you a loan for the entire amount of your Friday check. So you're gonna get $180 on Friday and they'll give you that $180 on Monday but there's gonna be like an 18 dollar fee. Right it's the fees really that are... It's not the APR. Right, so when Friday comes along you get your 180 bucks and you have to pay back
2:53:51 $180 you owe these guys, but you can't because...I mean, you can but you're still gonna be short 18 bucks to go by net. And so that becomes a...so you only get the payoff some of the loan and then so now you're gonna be behind at least minimally $18 on the principal and so now you have to go to the next week and either take out another loan or just wait till you get paid again. But meanwhile, it's added up to now probably 36 bucks the 18 plus an $18 fee is like a fee base in this interest aspect of it. And if you...it starts building up to the point where you never can pay at all when you've made not just $1,000 people. A lot of people in the military have been because they put these payday loan places around these bases that have been bankrupted by these guys
2:54:41 What's interesting is the calculation that the president and this agency made It's based upon the APR, the annual percentage rate. And what they say is if you borrow $100 on a payday loan with a 15 dollar fee and so your next paycheck...and sometimes you have to write them a check or cash that check in multiple ways they do it. The way they calculate the annual percentage rate on a 15 dollar fee for 100 payday advance, they say that's 391% annually. annual percentage rate. Okay, however if you take their same math and you take a credit card $100 credit card balance your late fee will be 37 dollars on average which is a 965 percent Annual percentage rate oh that's okay Yeah How about your utility bill if you're late on 100 dollar utility bill typical fee 46 dollars results in a 1,203% APR
2:55:46 All this used to be against the law and they had ursery laws in place around the country. And the last state to void them, I believe was Arkansas I remember back years ago when you could get an Arkansas credit card, which was the best deal in town because they couldn't charge more than 3.5% or something like that and this is all a joke considering the cost of money based on the interest rates coming out of the Fed is near zero. So this is all... We used to be illegal that is now all legal. because there's no consumer protection. It was illegal for a reason, because this bullshit would happen and half the dummies out there are well you know they won't be all pay next week but this sort of thing goes on because the public needs literally
2:56:33 needs to be protected against this sort of thing, because at some point you don't get how complicated it is. And they make it and what do you think all the fine print is? Well there's a huge document you got assigned! This is terrible and Elizabeth Warren is going to promise to fix us she's not gonna do anything nobody's gonna do anything this is horrible the situation we're in and maybe he's what this guy went overboard for cuz were complaining about stuff like this live-in-a-dream world Yeah, it's I think was also the New York Bank who told me we were talking about Oh, of course. Now I'm just rolling everything out. I can add them just to get a job. We only have a dinner so i have to throw as much as I can out see you scare me You have 10 minutes that you wouldn't play the clip playing on maybe you never played on yourself? I'll play it on myself less than 10 minutes ago. Okay, well, I can save it for Thursday if she wants but it was really just they
2:57:35 It was related to this, but okay. Fine. No, no you should finish it up now he said because I was talking about auto loans he said the auto loan we were talking about Uber that's what it was and talk is um they already provide auto loans and he was just talking about the business in general And then I said well until that subprime market crash He's like no way there's nothing as small The biggest one is student loans and there's a business In providing uh loans at the government doesn't Won't provide I gotta get more you know what the ten more minutes. You're right? I got to stop We got to find out whether there was something very big is going on There's an opportunity for us to make money, and I'm sure we'll see hey. I'm sure we'll screw it up We're not gonna screw it up Which is not going to capitalize on it. We're not gonna do it. That's true. That's what's really in a house. What's your right oh
2:58:30 Besides that, who wants it? We could do research for the public at large as a public good. Our organization, the two of us we could do that and become enlightened or we can go work like our butts off to make you know blood money off of lending or something with the government oh my god why don't you just retire now I prefer doing this i enjoy what we do I wish more people would show some appreciation. We do have people that support the show, there's no question about it but sometimes it's like what happened? That's true all right we're gonna enjoy the sunshine here in the drone star state coming to you from the crackpot condo right here in the capital Austin Texas in the morning everybody I'm Adam Curry and from the capital of northern Silicon Valley
2:59:26 Yes, yes by the bridge. Yes I'm John Cena all right we'll be back on Thursday right here on no agenda man overboard bomb them we need to kill and bomb them, bomb them. We need to kill and bomb them, bomb them. We need to bomb them! We need to kill them and bomb them again! Adios mofo Boom shakalaka Devorac dot org slash N A Amen fist bump