1 00:00:00.000 --> 00:00:01.590 Sean Murray: deBanked TV. I'm Sean Murray. 2 00:00:01.630 --> 00:00:03.280 Johny Fernandez: And I'm Johny Fernandez. And thank you guys so 3 00:00:03.280 --> 00:00:06.610 much for joining us today. It's gonna be a good day so far great 4 00:00:06.610 --> 00:00:08.560 morning can't complain. How are you doing? Sean? 5 00:00:08.590 --> 00:00:09.100 Sean Murray: Pretty good. 6 00:00:09.130 --> 00:00:10.690 Johny Fernandez: Nice. We definitely have a couple of 7 00:00:10.690 --> 00:00:14.560 interesting conversations to go through today, specifically. And 8 00:00:14.560 --> 00:00:17.170 the first one we're gonna talk about is about interest rates 9 00:00:17.380 --> 00:00:22.120 and rates in general. So I, first of all, Sean, let's talk 10 00:00:22.120 --> 00:00:25.120 about what you've been seeing so far in regards to interest rates 11 00:00:25.240 --> 00:00:26.890 here within the industry. 12 00:00:27.220 --> 00:00:29.320 Sean Murray: Alright so we just talked, we just talked about 13 00:00:29.320 --> 00:00:33.580 inflation had to be this point, two weeks ago, yeah, give or 14 00:00:33.580 --> 00:00:37.360 take, give or take. And low and behold, what happened after that 15 00:00:37.360 --> 00:00:42.130 conversation, is that we saw an actual, we actually saw the Fed 16 00:00:42.280 --> 00:00:46.300 signal that they agree. I mean, they didn't they didn't refer to 17 00:00:46.300 --> 00:00:50.500 us, but then they kind of were on the same wavelength as, as we 18 00:00:50.500 --> 00:00:55.360 were. And one thing that I had mentioned, very forcefully 19 00:00:55.390 --> 00:00:58.450 during our live stream is that if you're out there, right now, 20 00:00:58.450 --> 00:01:00.700 in the lending field, you should probably be jacking up your 21 00:01:00.700 --> 00:01:01.690 rates, right? 22 00:01:02.010 --> 00:01:03.420 Johny Fernandez: Yeah. And I think one thing, when we had 23 00:01:03.420 --> 00:01:06.870 that conversation, you had just simply said, if you're offering 24 00:01:06.870 --> 00:01:08.910 low interest rates, but essentially you're kind of 25 00:01:08.910 --> 00:01:12.030 saying, You're not bumping things up, and kind of keeping 26 00:01:12.030 --> 00:01:13.830 up with the trends, essentially, you're losing. 27 00:01:14.020 --> 00:01:16.955 Sean Murray: Yeah, you don't want to you don't want to lend 28 00:01:17.019 --> 00:01:20.273 below the rate of inflation. Obviously, the federal 29 00:01:20.337 --> 00:01:24.421 government is definitely fearful of what would happen if it lets 30 00:01:24.485 --> 00:01:28.377 inflation to to continue to grow unabated at the rate, or the 31 00:01:28.441 --> 00:01:32.397 pace that it is right now. And so they have signaled that they 32 00:01:32.461 --> 00:01:35.715 intend to raise the interest rates at the very next 33 00:01:35.779 --> 00:01:39.544 opportunity. And I think that that's probably the right, it 34 00:01:39.608 --> 00:01:43.692 makes sense. It's logical. And I think that that's going to lead 35 00:01:43.755 --> 00:01:47.712 other people in the chain, to also make adjustments themselves 36 00:01:47.776 --> 00:01:51.540 to we'll see lenders start to increase rates, that's what I 37 00:01:51.604 --> 00:01:53.200 would think would happen. 38 00:01:53.240 --> 00:01:56.390 Johny Fernandez: Yeah. And then, in regards to what I've seen, 39 00:01:56.390 --> 00:01:59.900 specifically, when it comes to people doing mortgages for their 40 00:01:59.900 --> 00:02:02.510 houses, and the lenders, and how everything's going, you know, 41 00:02:02.510 --> 00:02:05.390 obviously, it was at an all time low, you know, we're looking at 42 00:02:05.390 --> 00:02:08.480 people getting, you know, anywhere from like, up to 2.1%, 43 00:02:10.670 --> 00:02:13.790 you know, and I refinance my house, I was at 5%, I dropped 44 00:02:13.790 --> 00:02:17.120 down 3%. So everyone was saying, Hey, this is all free money 45 00:02:17.120 --> 00:02:20.270 right now, definitely go ahead, dive in dig, you know, it's 46 00:02:20.270 --> 00:02:23.630 pretty much at an all time low. And something that I got word of 47 00:02:23.630 --> 00:02:26.300 from Bank of America, Wells Fargo, as I work directly with 48 00:02:26.300 --> 00:02:30.020 them is that it could, the rates, depending on how the year 49 00:02:30.020 --> 00:02:33.440 goes, it could anywhere from double to triple. And then I was 50 00:02:33.440 --> 00:02:36.110 reading an article from Forbes specifically and they were also 51 00:02:36.110 --> 00:02:39.470 confirming it that, you know, they've also seen that, you 52 00:02:39.470 --> 00:02:42.380 know, in December, we were looking at like rates on an 53 00:02:42.380 --> 00:02:46.460 average of like, 2.6. And then we jump into January, and now 54 00:02:46.460 --> 00:02:50.030 it's at a 3.1. Like, that's like the average. So obviously, we're 55 00:02:50.030 --> 00:02:52.790 looking at it going little by little, you know, we're at the 56 00:02:52.790 --> 00:02:56.150 twos now we're at the threes. Yeah, they were predicting at 57 00:02:56.150 --> 00:03:01.160 this point like it can, they can range anywhere, by like, fall, 58 00:03:02.210 --> 00:03:06.800 end of summer, we're going to fall 3% to 4%. So you know, 59 00:03:07.070 --> 00:03:09.860 you're going from like two to four, and then at the end of the 60 00:03:09.860 --> 00:03:12.080 year, we don't know what it could be. But they are 61 00:03:12.080 --> 00:03:15.350 predicting that, you know, again, inflation and the way 62 00:03:15.350 --> 00:03:18.260 things are working now, we are seeing the numbers go higher. 63 00:03:18.260 --> 00:03:20.870 And something that I've recommended a lot of clients 64 00:03:20.870 --> 00:03:23.870 that I'm working with, and that I've also seen from these 65 00:03:23.870 --> 00:03:26.690 lenders talking directly with them is that if anyone wants to 66 00:03:26.690 --> 00:03:31.280 borrow money to do it now, because the rates are literally 67 00:03:31.280 --> 00:03:35.930 by the day going up little by little. So someone that I worked 68 00:03:35.930 --> 00:03:39.680 with someone directly that they were borrowing money, they were 69 00:03:39.680 --> 00:03:44.120 borrowing at, like 2.5. This is for what a mortgage for 70 00:03:44.120 --> 00:03:47.720 mortgage. Okay, so they're early at 2.5. And then, you know, now, 71 00:03:48.020 --> 00:03:51.260 you know, they had to pretty much do the pre approval again. 72 00:03:51.440 --> 00:03:54.470 And now they're like looking at like a 3% three point. So they 73 00:03:54.470 --> 00:03:55.580 waited, they wait. And 74 00:03:55.630 --> 00:03:57.370 Sean Murray: in between in between the first pre approval 75 00:03:57.370 --> 00:04:00.190 and the second one, the rate went from like two and a half to 76 00:04:00.190 --> 00:04:01.510 close to around three 77 00:04:01.600 --> 00:04:03.880 Johny Fernandez: Yeah so it's just and everyone they're 78 00:04:03.880 --> 00:04:07.330 recommending, if you want to borrow money, do it now. But 79 00:04:07.330 --> 00:04:10.570 things are starting to change. And again, they they've pretty 80 00:04:10.570 --> 00:04:14.200 much told me straight out from December to now like, hey, if 81 00:04:14.200 --> 00:04:16.540 you want to borrow on December borrow in December, because it's 82 00:04:16.540 --> 00:04:19.570 going to change in January. Now we're seeing that. Yeah. So it's 83 00:04:19.570 --> 00:04:23.290 very, it's very interesting to see, you know, they've pretty 84 00:04:23.290 --> 00:04:25.750 much predicted as they're telling people, hey, if you're 85 00:04:25.750 --> 00:04:28.300 going to borrow money bar now because things are gonna go 86 00:04:28.300 --> 00:04:31.510 high. Yeah. And everyone's boosting up, you know, the 87 00:04:31.510 --> 00:04:33.700 interest rates, they're gonna jack up the rate and jack up the 88 00:04:33.700 --> 00:04:36.940 rates massively. Yeah. So I mean, I say massively because 89 00:04:37.060 --> 00:04:39.220 we're looking at it, you know, for mortgages, for example, 90 00:04:39.220 --> 00:04:45.250 you're looking at two, you know, 2.1% and now we're at 3.1%. And, 91 00:04:45.730 --> 00:04:48.340 you know, you know, the article and four is predicting that by 92 00:04:48.340 --> 00:04:53.770 fall, the fall, summer, we're looking at between four 4.5% on 93 00:04:53.770 --> 00:04:58.570 an on average, which, you know, it, you know, it's definitely 94 00:04:58.570 --> 00:04:59.500 going up so 95 00:04:59.990 --> 00:05:01.970 Sean Murray: Yeah, so if you're out there and you work in the in 96 00:05:01.970 --> 00:05:06.950 the lending world, be prepared to potentially have to pay more 97 00:05:06.950 --> 00:05:10.460 for funds that you borrow your competitors may also increase 98 00:05:10.460 --> 00:05:14.630 their own rates. Yeah. So you may see rates go up rather than 99 00:05:14.630 --> 00:05:19.280 down. And one of the things that correlates with this sudden 100 00:05:19.370 --> 00:05:23.090 prediction that rates will increase is that we're seeing a, 101 00:05:23.390 --> 00:05:29.480 I guess, you could say, an expected event in the stock 102 00:05:29.480 --> 00:05:32.930 market. Yeah. That being that the stock market is going down. 103 00:05:33.020 --> 00:05:36.080 If you go on to like CNN or Fox News, like, oh, it's because 104 00:05:36.290 --> 00:05:40.100 there's some international event taking place between like Russia 105 00:05:40.100 --> 00:05:44.270 and Ukraine, and everyone's scared. That's not what it is. 106 00:05:44.720 --> 00:05:48.800 What it is, is that when interest rates go up, the allure 107 00:05:48.800 --> 00:05:52.910 of the stock market goes down. Right? Yeah. Because if interest 108 00:05:52.910 --> 00:05:55.460 rates are zero, let's say you're gonna, you're gonna say you're a 109 00:05:55.460 --> 00:05:58.490 big pension bond, and you have to invest somebody's pensions. 110 00:05:58.910 --> 00:06:01.820 And like, like for, you know, 10s of 1000s, maybe even 111 00:06:01.820 --> 00:06:06.110 millions of workers. If that if a treasury bond is yielding, 112 00:06:06.110 --> 00:06:09.980 essentially 0%, then you're not going to do anything for these 113 00:06:09.980 --> 00:06:13.910 people who are hoping to retire on the money. Right? So what do 114 00:06:13.910 --> 00:06:16.160 you do you put the money in the stock market? Yeah. Because the 115 00:06:16.160 --> 00:06:18.860 alternative is 0%. Yeah, they say I'll take some risks, 116 00:06:18.890 --> 00:06:21.740 because they get some yield, you put it in an index fund, you can 117 00:06:21.740 --> 00:06:26.120 earn, you know, 1.8%, just on the dividends. So that sounds 118 00:06:26.120 --> 00:06:28.070 good to a lot of people even even though there's downside 119 00:06:28.070 --> 00:06:33.380 risk. Now, because interest rates are expected to go up, 120 00:06:33.620 --> 00:06:38.660 right? All of a sudden, you have yield to to earn on bonds, so 121 00:06:38.780 --> 00:06:41.090 that big pension bond that had all this money in the stock 122 00:06:41.090 --> 00:06:43.640 market is going to take the billions out of there and put it 123 00:06:43.640 --> 00:06:46.730 into like a treasury, right. So when you hear like the stock 124 00:06:46.730 --> 00:06:48.830 market is going down, because there's some international event 125 00:06:48.830 --> 00:06:51.620 of the economy is crashing, and something that's not what it is, 126 00:06:51.650 --> 00:06:54.800 it's just that all of a sudden, now you have a variety of 127 00:06:54.800 --> 00:06:57.470 options to invest in the market before it was like you had to 128 00:06:57.470 --> 00:07:00.110 put money in the stock market, because you couldn't, couldn't 129 00:07:00.110 --> 00:07:04.700 earn any money in like bonds or treasuries, or whatever. That 130 00:07:04.700 --> 00:07:08.090 may also be why this is complete speculation why we're seeing a 131 00:07:08.090 --> 00:07:13.430 crypto bloodbath. Yeah. Do you have any friends who invest in 132 00:07:13.430 --> 00:07:13.820 crypto 133 00:07:13.870 --> 00:07:15.970 Johny Fernandez: I do I have a handful of friends that are 134 00:07:15.970 --> 00:07:19.540 investing in crypto, and a lot of them woke up. And they've 135 00:07:19.540 --> 00:07:22.120 tweeted, they're panicking because they're like, hey, like, 136 00:07:22.420 --> 00:07:26.680 this is like, we're hitting a low and a lot of them are 137 00:07:26.680 --> 00:07:29.380 cashing out. They're cashing out cashing out, they're cashing 138 00:07:29.380 --> 00:07:31.420 out. They're like, hey, you know were, 139 00:07:31.445 --> 00:07:32.770 Sean Murray: let me ask you a question. Do you know if 140 00:07:32.770 --> 00:07:36.610 they're, if they're just taking lower profits? Are they selling 141 00:07:36.610 --> 00:07:41.320 at a loss? No, they're selling at a loss. So you know, it's 142 00:07:41.320 --> 00:07:45.040 it's interesting to see just normal human behavior, right? 143 00:07:45.070 --> 00:07:49.750 Yeah. Because, you know, normally you don't buy at the 144 00:07:49.750 --> 00:07:53.800 high and sell at the low. Yeah, you just write it out? Yeah, 145 00:07:53.800 --> 00:07:57.340 that's what you're supposed to do. Yeah, right. But it's not 146 00:07:57.340 --> 00:08:00.640 uncommon. You hear that your friends are not uncommon. Yeah. 147 00:08:00.670 --> 00:08:02.920 Yeah. This is what so many people are doing Yeah. Is 148 00:08:02.920 --> 00:08:05.680 they're saying I'd rather have something than end up with 149 00:08:05.680 --> 00:08:09.610 essentially zero right. So they're probably fearing that 150 00:08:09.610 --> 00:08:12.460 the numbers going down? Yeah, to zero. Yeah. And they'd rather 151 00:08:12.460 --> 00:08:14.650 have something rather than than nothing that basically 152 00:08:15.680 --> 00:08:17.540 Johny Fernandez: Essentially what's going on and I think in 153 00:08:17.540 --> 00:08:19.280 their mind they're freaking out because they're like, oh my god, 154 00:08:19.280 --> 00:08:21.560 like there was just big hype. There was this like, you know, 155 00:08:21.590 --> 00:08:24.230 we're making a ton of money let's do this and now that it's 156 00:08:24.470 --> 00:08:27.740 coming down, it's just like, oh my gosh, let me take it out. Let 157 00:08:27.740 --> 00:08:29.720 me make sure I have something I'm gonna recover some of my 158 00:08:29.720 --> 00:08:33.140 money. I heard you know, different people saying oh my 159 00:08:33.140 --> 00:08:36.020 god, like I put in you know, a couple 1000s I'm coming up I'm 160 00:08:36.020 --> 00:08:39.740 coming I'm leaving with like the six $700 But you know, 161 00:08:39.770 --> 00:08:42.740 something's better than nothing and and there's this whole panic 162 00:08:42.980 --> 00:08:46.190 all over Twitter honestly, not only with my friends but online. 163 00:08:46.610 --> 00:08:49.520 And people are just like, and I've heard two different sides 164 00:08:49.520 --> 00:08:52.280 other people are like willing to stick it out and you know, they 165 00:08:52.280 --> 00:08:54.800 have all this hope that you know, bitcoins gonna be 166 00:08:54.800 --> 00:09:00.470 something that's going to save the economy, yeah 167 00:09:00.470 --> 00:09:01.931 Sean Murray: Yeah. Well, I mean, what you're what you're 168 00:09:01.986 --> 00:09:05.321 describing is extremely common. This is exactly what happened 169 00:09:05.376 --> 00:09:08.384 the last time Bitcoin had Bitcoin had a big run back in 170 00:09:08.438 --> 00:09:11.665 2017. Yeah, everyone bought in it was going up in this huge 171 00:09:11.720 --> 00:09:15.001 hype cycle, then it start to go down, start to go down a bit 172 00:09:15.055 --> 00:09:18.336 more and people start to freak out. And then you have people 173 00:09:18.391 --> 00:09:21.727 selling people selling for a loss and that poisoned the water 174 00:09:21.782 --> 00:09:25.063 for a long, long time where people wanted nothing to do with 175 00:09:25.117 --> 00:09:28.399 crypto people would be mad they would get mad at us. When we 176 00:09:28.453 --> 00:09:31.406 would write about Bitcoin. They're like that's a scam. 177 00:09:31.461 --> 00:09:34.523 Yeah, it's a scam. I can't believe you write about it. A 178 00:09:34.578 --> 00:09:37.859 couple years go by and like Bitcoin is going up. You need to 179 00:09:37.914 --> 00:09:41.250 write more about Bitcoin. That's how we're going to get rich. 180 00:09:41.430 --> 00:09:44.160 Johny Fernandez: But again, it's it's a cycle things that always 181 00:09:44.160 --> 00:09:48.660 happen. It's like something goes up and goes back down. It's a 182 00:09:48.660 --> 00:09:49.290 cycle. 183 00:09:49.440 --> 00:09:52.200 Sean Murray: It's it's, it is a cycle. You know, I don't know 184 00:09:52.260 --> 00:09:57.480 I've said for a very long time that I do not invest in crypto, 185 00:09:57.510 --> 00:09:59.220 Johny Fernandez: but when you tweeted something really 186 00:09:59.220 --> 00:10:01.950 interesting that caught my attention. And I'm gonna 187 00:10:01.950 --> 00:10:04.350 definitely butcher it right now. But you tweeted something that 188 00:10:04.470 --> 00:10:06.990 Bitcoin was made to invest. Because 189 00:10:06.990 --> 00:10:10.260 Sean Murray: No, I said I was not made. Yeah, well, when I 190 00:10:10.260 --> 00:10:13.410 said that Bitcoin is not investment, okay, it's a way to 191 00:10:13.410 --> 00:10:16.560 move money outside of banking. Yeah. In my mind, that's all 192 00:10:16.560 --> 00:10:20.940 it's for, okay. In fact, the founder of Bitcoin, Satoshi 193 00:10:20.940 --> 00:10:24.930 Nakamoto, who no one knows who that is. He described it as a 194 00:10:24.930 --> 00:10:29.190 peer to peer payment system outside of banking. Right? It's 195 00:10:29.670 --> 00:10:32.970 about sending money between two people. We don't need the bank 196 00:10:32.970 --> 00:10:37.650 to do it. Yeah. So naturally, we're deBanked. Right? Here's a 197 00:10:37.650 --> 00:10:40.800 way to move money outside of the banking system makes total sense 198 00:10:40.800 --> 00:10:44.430 to me. Yeah, the whole concept that people like we need to buy, 199 00:10:44.460 --> 00:10:47.460 because it's going to go up, like this totally is totally 200 00:10:47.460 --> 00:10:50.580 lost on me, or we need to buy it because it's the new digital 201 00:10:50.580 --> 00:10:53.700 gold. Maybe there's maybe there's some merit to that, 202 00:10:53.700 --> 00:10:56.310 right. But the whole, like, it's gonna go to a million dollars, 203 00:10:56.310 --> 00:10:58.620 we got to get rich, you got to get in. That's not even what 204 00:10:58.620 --> 00:11:01.590 it's for. It's like, I think it's important for certain 205 00:11:01.590 --> 00:11:06.420 people to kind of understand what Bitcoin is even for, if 206 00:11:06.420 --> 00:11:09.060 someone told you that, it's, you need to get into it, because 207 00:11:09.060 --> 00:11:10.830 it's gonna go up and you're gonna get rich, that's not even 208 00:11:10.830 --> 00:11:11.760 what Bitcoin is for. 209 00:11:12.140 --> 00:11:14.330 Johny Fernandez: I'll pause that because I know for a fact that 210 00:11:14.330 --> 00:11:16.850 especially during this last cycle, because that's what I'm 211 00:11:16.850 --> 00:11:20.090 gonna call it a cycle. A lot of people got into just for that 212 00:11:20.090 --> 00:11:22.310 reason, because they saw that their friends were doing it they 213 00:11:22.310 --> 00:11:25.010 saw that their friends were doing it and they put, I know a 214 00:11:25.010 --> 00:11:27.530 lot of guys that have put literally like they're like I'm 215 00:11:27.530 --> 00:11:30.320 gonna cash out of my 401k and put it into Bitcoin. 216 00:11:31.080 --> 00:11:33.720 Sean Murray: This happened in 2017. Now, literally, it was 217 00:11:33.720 --> 00:11:37.050 literally like watching it was deja vu for me. Yeah, to watch 218 00:11:37.050 --> 00:11:41.160 the same thing play out. All over again, people are selling 219 00:11:41.190 --> 00:11:45.780 just like they did in 2018. After the 2017 bull market. 220 00:11:45.870 --> 00:11:50.280 Bitcoin is not even an investment and my from, from my 221 00:11:50.310 --> 00:11:52.890 perspective, it's really just about moving money outside of 222 00:11:52.890 --> 00:11:56.730 banking. There there, there is utility to other forms of 223 00:11:56.730 --> 00:12:00.660 crypto, like, Ethereum has the whole smart contract, smart 224 00:12:00.660 --> 00:12:04.920 contract concept to it, right? I think that's really cool. Yeah. 225 00:12:04.950 --> 00:12:08.310 And it's different than Bitcoin, Bitcoin and Aetherium some of 226 00:12:08.310 --> 00:12:11.310 the other Kryptos there's different purposes to each of 227 00:12:11.310 --> 00:12:15.090 that. But bitcoin is very limited. The beautiful part 228 00:12:15.090 --> 00:12:18.060 about Bitcoin, it's just about I can send money to you. And 229 00:12:18.060 --> 00:12:20.820 there's nobody out there that says, hey, you can't send it to 230 00:12:20.820 --> 00:12:24.600 him. Yeah, this happens. And you might not appreciate that, if 231 00:12:24.600 --> 00:12:27.570 you've never had to deal with it. Yeah. If you work in a 232 00:12:27.570 --> 00:12:30.540 business and you want to send money internationally, guess 233 00:12:30.540 --> 00:12:34.560 what? Someone can say no, yeah. You have to worry about whether 234 00:12:34.560 --> 00:12:36.750 or not the bank on the other side is going to accept it and 235 00:12:36.750 --> 00:12:38.940 say, Well, what country did it come from? Why are you sending 236 00:12:38.940 --> 00:12:41.160 this money? Yeah, how do you know this person? Yeah, they 237 00:12:41.160 --> 00:12:44.070 want to know all these things. Yeah. They also they have their 238 00:12:44.070 --> 00:12:46.710 hand in the pot, and they want to charge you for it too. They 239 00:12:46.710 --> 00:12:47.550 want to take their feet, 240 00:12:47.580 --> 00:12:50.520 Johny Fernandez: They take the charge that nice. That's that 241 00:12:50.520 --> 00:12:50.910 fear. 242 00:12:50.930 --> 00:12:53.690 Sean Murray: So once you start to appreciate it becomes 243 00:12:53.690 --> 00:12:57.650 difficult to send money within the banking system, once you 244 00:12:57.650 --> 00:13:00.020 reach a certain size or do certain type of transactions, 245 00:13:00.020 --> 00:13:03.590 you're like, I really wish I just had control and I could do 246 00:13:03.590 --> 00:13:06.320 whatever I wanted. Yeah, that's what Bitcoin is for. Yeah, 247 00:13:06.350 --> 00:13:08.420 that's what Bitcoin is for. If you're like, hey, I bought 248 00:13:08.420 --> 00:13:11.390 Bitcoin, because it's going up, and I'm gonna get rich. I think 249 00:13:11.390 --> 00:13:14.150 you were you were fed some false information. That's my personal 250 00:13:14.150 --> 00:13:14.780 point of view. 251 00:13:15.060 --> 00:13:17.610 Johny Fernandez: It Yeah. I mean, it's, it's interesting how 252 00:13:17.610 --> 00:13:20.220 everything again, everything's a big cycle, you know, like 253 00:13:20.220 --> 00:13:22.410 interest rates are going back up, things are gonna hopefully 254 00:13:22.410 --> 00:13:26.460 level out and kind of go correct itself. Bitcoins going back 255 00:13:26.460 --> 00:13:31.860 down. It's I don't know, I want to word it and say it's crashing 256 00:13:31.860 --> 00:13:34.350 and burning. Like it's gonna go. That's it. But again, it's all a 257 00:13:34.350 --> 00:13:37.410 cycle. Yeah. That that, you know, it's gonna cycle through 258 00:13:37.410 --> 00:13:39.330 and then in a couple years, we're gonna see the same thing 259 00:13:39.330 --> 00:13:42.600 happen again, and potentially, yeah, you know, like things are 260 00:13:42.600 --> 00:13:45.600 going back up, like, let's let's buy into Bitcoin. Yeah, 261 00:13:45.630 --> 00:13:47.280 Sean Murray: Well, you know, we're only talking about this 262 00:13:47.280 --> 00:13:48.600 because they're just talking about interest rates in the 263 00:13:48.600 --> 00:13:52.260 stock market. But is it any coincidence that the stock 264 00:13:52.260 --> 00:13:55.710 market is going down at the same time crypto is going down? 265 00:13:56.340 --> 00:13:59.160 Perhaps it's not a coincidence, perhaps it's due to the fact 266 00:13:59.160 --> 00:14:03.510 that some people were borrowing money very cheaply at near zero 267 00:14:03.600 --> 00:14:07.590 and using it to put money into crypto. Because it hey, it's 268 00:14:07.590 --> 00:14:10.050 gonna go up, you know, I mean, crypto is gonna go up. So I 269 00:14:10.050 --> 00:14:12.420 borrow money and put it into crypto, all of a sudden, now, 270 00:14:12.600 --> 00:14:15.660 lenders are starting to tighten up a little bit, you know, 271 00:14:15.660 --> 00:14:18.870 interest rates are gonna go up a little bit like, Well, maybe 272 00:14:18.870 --> 00:14:21.840 it's not a smart thing to borrow money to put it into crypto 273 00:14:21.840 --> 00:14:24.990 anymore. So I'm just gonna kind of, you know, kind of cool off 274 00:14:24.990 --> 00:14:27.810 on that. That could be one of the causes of why crypto is 275 00:14:27.810 --> 00:14:30.480 coming out. At the same time. The fact that interest rates the 276 00:14:31.290 --> 00:14:33.480 you have opportunity cost in the market when you where you're 277 00:14:33.480 --> 00:14:35.790 going to invest and where you can park your money. You know, 278 00:14:35.850 --> 00:14:38.700 is it bonds is it the stock market is it crypto crypto is 279 00:14:38.700 --> 00:14:41.340 kind of this new thing, and bonds and like let's say 280 00:14:41.340 --> 00:14:44.190 treasury bonds are out because you earn 0%. So you're like oh 281 00:14:44.190 --> 00:14:47.820 stock market and crypto, you plop it into both of them. Now 282 00:14:47.820 --> 00:14:50.670 you're like, you know what, now I can put it into into bonds and 283 00:14:50.670 --> 00:14:52.920 treasury, you know, treasuries all over again. I'm going to 284 00:14:52.920 --> 00:14:55.290 take my all my billions out of there, what happens these two 285 00:14:55.290 --> 00:14:58.290 things crash, and then everyone starts to panic. What's going on 286 00:14:58.320 --> 00:14:58.590 is 287 00:14:59.020 --> 00:15:02.410 Johny Fernandez: So so let me ask you this for someone that is 288 00:15:02.440 --> 00:15:05.470 watching right now and they have their money invested, you know 289 00:15:05.470 --> 00:15:08.740 whether it's in crypto or they're trying to borrow borrow 290 00:15:08.740 --> 00:15:10.750 money, and they see that interest, interest rates are 291 00:15:10.750 --> 00:15:14.080 going up and they have money in the stock market and the stocks 292 00:15:14.110 --> 00:15:17.560 are going back, they're going down. What would you say? Should 293 00:15:17.560 --> 00:15:20.980 they panic? Should they just be like, Oh my gosh, like, let me 294 00:15:21.010 --> 00:15:24.370 take my money out and let me not like do anything. Like, what 295 00:15:24.370 --> 00:15:26.770 would you say to them? Cuz a lot of people are panicking. That's 296 00:15:26.770 --> 00:15:29.170 just the truth. A lot of people are like, I'm gonna cash out. 297 00:15:29.230 --> 00:15:32.530 Gotta cash out, like, cause this panic mode that's going on 298 00:15:32.650 --> 00:15:35.080 today? Yeah, yeah. What would you say to them? 299 00:15:36.390 --> 00:15:40.050 Sean Murray: I'd say you need to think through what your 300 00:15:40.050 --> 00:15:43.950 investment strategy is ahead of time. So that you don't end up 301 00:15:43.950 --> 00:15:46.500 in this type of situation. And now nobody wants to hear this 302 00:15:46.530 --> 00:15:51.060 after the fact. Yeah. So my own personal investment strategy is 303 00:15:51.060 --> 00:15:53.760 that I am in index funds long term. 304 00:15:54.060 --> 00:15:57.000 Johny Fernandez: Okay. So you're looking at you look at long term 305 00:15:57.000 --> 00:16:00.510 picture, big picture in a couple years from now. 306 00:16:00.840 --> 00:16:04.080 Sean Murray: Twenty, thirty years. Okay. All right. I invest 307 00:16:04.080 --> 00:16:06.930 time like, you know, ten, twnety, thirty, year basis. 308 00:16:06.990 --> 00:16:08.550 Okay. I don't care about a couple years. So 309 00:16:08.579 --> 00:16:10.559 Johny Fernandez: you don't care about the five year plan, like 310 00:16:10.559 --> 00:16:12.689 two year plan? That's not even your mindset? 311 00:16:12.870 --> 00:16:14.790 Sean Murray: No, it's not. It's not even my mindset. I'm not 312 00:16:14.790 --> 00:16:17.340 investing money that I you know, I'm going to need six months 313 00:16:17.340 --> 00:16:21.060 from now. Okay, that that money for me isn't isn't invested in 314 00:16:21.060 --> 00:16:24.390 like something like crypto, whatever. Anything that would be 315 00:16:24.540 --> 00:16:27.960 I don't invest in crypto. Okay. So if you invested in crypto, 316 00:16:28.200 --> 00:16:30.060 and you're saying, you know, Sean what should I do? I would 317 00:16:30.060 --> 00:16:35.520 say don't invest in in coins and tokens. It's, it's a terrible 318 00:16:35.520 --> 00:16:40.440 investment. Okay. And so it this was said at Broker Fair by Slava 319 00:16:40.440 --> 00:16:42.600 Rubin, he's like, You should like you should invest in the 320 00:16:42.600 --> 00:16:44.850 concept. And everyone immediately goes to what coin 321 00:16:44.850 --> 00:16:47.790 should I buy? And he's like, he's not what he was saying not 322 00:16:47.790 --> 00:16:52.320 about buying the coin. It's about creating a company that 323 00:16:52.380 --> 00:16:54.420 does something with the infrastructure. Yeah, it's about 324 00:16:54.420 --> 00:16:59.040 getting into payments. So many people don't want to do any of 325 00:16:59.040 --> 00:17:02.070 the work. They just want to sit at home, press some buttons on 326 00:17:02.070 --> 00:17:06.420 their phone, and hope that it goes up. Right. But the way to 327 00:17:06.420 --> 00:17:11.340 make money in crypto is to build a crypto company. That's the 328 00:17:11.340 --> 00:17:14.520 truth. So that's what you should be thinking about next time 329 00:17:14.520 --> 00:17:17.190 around, not, oh, I should have bought different coins, or I 330 00:17:17.190 --> 00:17:20.070 should have sold at the top. And this doesn't make sense. You 331 00:17:20.070 --> 00:17:22.950 know, I was lied to about crypto. Yeah, you were lied to 332 00:17:22.950 --> 00:17:26.400 about crypto from the standpoint of he thought crypto, which is 333 00:17:26.400 --> 00:17:29.460 something it was just like some sort of investment where if you 334 00:17:29.460 --> 00:17:32.460 just buy a coin, and you told your friends to also buy the 335 00:17:32.460 --> 00:17:36.210 coin, then it will go up and you'll be rich. Like that's not. 336 00:17:36.690 --> 00:17:39.840 That's not real investing. Yeah, that's not real. That's not 337 00:17:39.840 --> 00:17:43.200 investing. I don't really know what that is. It's like, you got 338 00:17:43.200 --> 00:17:46.350 it. You got to think bigger picture. If crypto is you know, 339 00:17:46.350 --> 00:17:49.230 one of your strategies. I would never buy a coin says let's hope 340 00:17:49.230 --> 00:17:52.350 it goes up. Me personally. Yeah. And I'm very much into crypto. 341 00:17:52.380 --> 00:17:56.070 Yeah, but the whole concept, I'm gonna buy a coin and then hope 342 00:17:56.070 --> 00:18:01.020 other people buy the same coin. Yeah. It's just and what is it 343 00:18:01.020 --> 00:18:03.750 backed by nothing. So you an indexed bond is backed by the 344 00:18:03.750 --> 00:18:06.420 companies who are producing value for the entire economy. 345 00:18:06.780 --> 00:18:10.530 Right. All the things that exist in the physical, tangible world? 346 00:18:10.650 --> 00:18:14.220 That's what behind the stocks? But if it's just a coin, there's 347 00:18:14.220 --> 00:18:18.150 nothing behind it. Yeah, then there's nothing to it. Right? It 348 00:18:18.150 --> 00:18:21.450 can go to zero, because what's behind it? Nothing. Yeah. But if 349 00:18:21.450 --> 00:18:23.850 you can the entire stock market go to zero? Well, I guess the 350 00:18:23.850 --> 00:18:27.150 whole country, all in all physical made goods would have 351 00:18:27.150 --> 00:18:31.800 to go to zero too. Yeah, that's true. Stocks have like, you 352 00:18:31.800 --> 00:18:34.290 know, they have like a book value. You have like the market 353 00:18:34.290 --> 00:18:36.090 value, and the book value and like, they can come down to the 354 00:18:36.090 --> 00:18:38.970 book value, you say, it goes below book value, like, Wow, is 355 00:18:38.970 --> 00:18:41.130 it an attractive investment? Yeah. Because it's below the 356 00:18:41.130 --> 00:18:41.460 book. 357 00:18:41.510 --> 00:18:43.820 Johny Fernandez: Yeah. Well, and I just think for me, personally, 358 00:18:43.850 --> 00:18:48.320 I do not invest in crypto, because it's still fairly in its 359 00:18:48.320 --> 00:18:51.500 infancy stages. Because for stocks, for example, for real 360 00:18:51.500 --> 00:18:56.900 estate, there's proof that like it can surpass, you know, real 361 00:18:56.900 --> 00:18:58.940 estate is a real thing. Yeah. Well, and that's the other 362 00:18:58.940 --> 00:19:00.830 thing, like you can you can touch it, you can feel it, you 363 00:19:00.830 --> 00:19:04.790 can see it grow, you can grow stuff on it. Yeah. And that's, 364 00:19:04.820 --> 00:19:08.060 that's, I've always been like, kind of just like, wait and see, 365 00:19:08.120 --> 00:19:11.090 because crypto still technically, in its infancy 366 00:19:11.090 --> 00:19:14.150 stages, it's not something that's been able to surpass like 367 00:19:14.210 --> 00:19:18.590 fifty a hundred years of, you know, stuff that has gone on in 368 00:19:18.590 --> 00:19:22.820 the world. You know, it's still theres, I still want to see more 369 00:19:22.820 --> 00:19:26.870 proof of what will happen, you know, after this cycle, like 370 00:19:26.870 --> 00:19:29.330 what like what's going to happen what's, what's the pattern of 371 00:19:29.330 --> 00:19:33.110 events that like how it functions. So that's what I want 372 00:19:33.110 --> 00:19:35.690 to see. That's why I've always kind of been very, I like to 373 00:19:35.930 --> 00:19:39.170 observe from afar first before jumping in. Yeah, that's, that's 374 00:19:39.170 --> 00:19:40.280 always been my mindset on it. 375 00:19:40.720 --> 00:19:42.730 Sean Murray: That makes sense. And if you're someone out there 376 00:19:42.730 --> 00:19:47.200 who who believes they would benefit from the value of being 377 00:19:47.200 --> 00:19:49.330 able to move money outside of banking, then itcoin is 378 00:19:49.330 --> 00:19:51.550 certainly for you. Maybe not as an investment but it's something 379 00:19:51.550 --> 00:19:55.450 that you would want to use. Yeah. But if you're just piling 380 00:19:55.450 --> 00:19:57.370 in it because other people are piling in it, 381 00:19:57.610 --> 00:19:59.680 Johny Fernandez: and that that was a lot that was a big trend. 382 00:20:00.220 --> 00:20:03.190 That was a huge like, I say it because I've had a lot of people 383 00:20:03.190 --> 00:20:06.280 approach me like, hey, gotta get into Bitcoin and they approached 384 00:20:06.280 --> 00:20:09.550 me and they're like, sold on it 100% and the 385 00:20:09.550 --> 00:20:12.100 Sean Murray: individual out there in that type of in that 386 00:20:12.100 --> 00:20:15.760 type of investment. They're designed to be the ones that get 387 00:20:15.760 --> 00:20:18.700 screwed. Yeah. By Design. 388 00:20:18.760 --> 00:20:19.570 Johny Fernandez: Yeah, right. 389 00:20:20.560 --> 00:20:24.040 Sean Murray: That's how that's how it works. So, I would say, 390 00:20:24.610 --> 00:20:27.940 you know, you know, what should people do? I don't know. I don't 391 00:20:27.940 --> 00:20:30.250 know. Be smarter about your investments next time. 392 00:20:30.490 --> 00:20:31.510 Johny Fernandez: Yeah, that's good advice. 393 00:20:32.620 --> 00:20:34.810 Sean Murray: It's mean, but yeah, no, but I've been saying, 394 00:20:34.810 --> 00:20:38.290 you know, watch this whole bull run. Bitcoin happened and the 395 00:20:38.290 --> 00:20:40.570 entire time I've been saying Bitcoin is not an investment. 396 00:20:42.340 --> 00:20:44.590 Johny Fernandez: You said from the beginning too I mean, we've 397 00:20:44.590 --> 00:20:44.980 talked about. 398 00:20:46.000 --> 00:20:47.800 Sean Murray: I don't. Yeah, here I am. I've been talking about 399 00:20:47.800 --> 00:20:49.840 Bitcoin for eight years. I don't invest in Bitcoin. Why? You have 400 00:20:49.840 --> 00:20:52.240 to ask yourself, why? How can that be Sean Murray? How can 401 00:20:52.240 --> 00:20:55.390 that be? Yeah, some people tell me I screwed I don't get it. No, 402 00:20:55.390 --> 00:20:57.940 I get it. I know exactly what Bitcoin is for. I love it for 403 00:20:57.940 --> 00:20:58.960 what it's used for. 404 00:20:59.010 --> 00:21:01.950 Johny Fernandez: Yeah. Although people doubt, like, 405 00:21:03.250 --> 00:21:04.750 Sean Murray: hey, you know, who knows, maybe I'll be proven 406 00:21:04.750 --> 00:21:06.640 wrong. Bitcoin will go to a million everyone will laugh at 407 00:21:06.640 --> 00:21:09.880 me. That could happen too that's all. It's also a possibility. I 408 00:21:09.880 --> 00:21:10.630 have to admit that. 409 00:21:11.080 --> 00:21:12.190 Johny Fernandez: And it goes to a million. 410 00:21:12.850 --> 00:21:16.630 Sean Murray: I won't even care. Yeah. Because I was never 411 00:21:16.630 --> 00:21:19.240 investing in it. Yeah. I can't be mad about something I never 412 00:21:19.240 --> 00:21:20.200 considered in investing in 413 00:21:20.230 --> 00:21:23.290 Johny Fernandez: Yeah, that's true. You can so Amen. Good, 414 00:21:23.320 --> 00:21:24.220 good conversation, 415 00:21:24.220 --> 00:21:27.450 Sean Murray: In regards interest rates. Interest rate interest. 416 00:21:28.020 --> 00:21:30.780 Yeah, I did see one last point about interest rates. I know, 417 00:21:30.780 --> 00:21:32.670 we've been talking for, like forever long about this whole 418 00:21:32.670 --> 00:21:36.960 thing that I saw on Bloomberg, that economists predict that 419 00:21:36.990 --> 00:21:39.990 interest rates, I guess that the Fed funds rate will could creep 420 00:21:39.990 --> 00:21:43.950 up to as high as like 2%, they enter 2024. And so interest 421 00:21:43.950 --> 00:21:46.530 rates for everyone else up the chain, you know, we could be 422 00:21:46.530 --> 00:21:50.370 seeing interest rates higher higher than, you know, six seven 423 00:21:50.370 --> 00:21:53.670 eight. He was saying more percent by the end of the year, 424 00:21:53.670 --> 00:21:56.370 maybe in a few years, you know, maybe eight 9% interest rates. 425 00:21:56.370 --> 00:21:58.100 Johny Fernandez: I mean, and like I said, I mean, they said, 426 00:21:58.100 --> 00:22:02.030 4%, I've had other, you know, lenders from banks, told me that 427 00:22:02.060 --> 00:22:05.840 their predictions were you know, up to like, triple like, you 428 00:22:05.840 --> 00:22:09.530 know, 2%, so meaning it'll be up to six. So, you know, obviously, 429 00:22:10.310 --> 00:22:12.230 no one knows what's going to happen, no one has a crystal 430 00:22:12.230 --> 00:22:15.410 ball, but we do know that things are increasing a lot higher, 431 00:22:15.410 --> 00:22:20.660 and, you know, take advantage of that 2% or 2.1%, you know, 2.5% 432 00:22:21.110 --> 00:22:24.590 on the average, then, you know, just take advantage now before 433 00:22:24.590 --> 00:22:27.890 it goes up. So, and then also for the people that are doing 434 00:22:27.890 --> 00:22:30.530 the lending, they should also kind of keep up to date 435 00:22:30.920 --> 00:22:34.280 regarding our last video, because I think that was 436 00:22:34.280 --> 00:22:39.350 important too lenders that just don't move and they stay like 437 00:22:39.350 --> 00:22:41.450 within that area of like low interest rates. 438 00:22:41.660 --> 00:22:44.120 Sean Murray: Yeah, you gotta gotta land above inflation, even 439 00:22:44.120 --> 00:22:46.550 the government's trying to wake up to that, hey, we got to raise 440 00:22:46.550 --> 00:22:47.330 interest rates. 441 00:22:47.450 --> 00:22:50.240 Johny Fernandez: Yeah. So the next type of conversation we're 442 00:22:50.240 --> 00:22:55.760 gonna discuss is regarding IT Media Solutions, or Media 443 00:22:55.760 --> 00:22:59.570 Solutions, LLC. IT Media Solutions, I don't know. Yeah. 444 00:22:59.840 --> 00:23:04.400 So this was a new. This was something that came out 445 00:23:04.820 --> 00:23:08.990 regarding the FTC and them that they essentially collected very 446 00:23:08.990 --> 00:23:12.770 sensitive information for for millions of consumers. And 447 00:23:12.770 --> 00:23:16.700 essentially, they connected them with lenders and pretty much 448 00:23:16.700 --> 00:23:20.090 gave their information out to other companies without their 449 00:23:20.090 --> 00:23:23.120 permission, very sensitive information, things like their 450 00:23:23.120 --> 00:23:26.930 social bank information, all that stuff. And it pretty much 451 00:23:26.930 --> 00:23:33.080 resulted in a FTC lawsuit. So the allegations go that since 452 00:23:33.080 --> 00:23:37.730 2012, a number of the IT media's affiliate companies and their 453 00:23:37.730 --> 00:23:40.880 owners have operated hundreds of websites that were designed to 454 00:23:40.880 --> 00:23:45.170 entice consumers and sharing sensitive financial information. 455 00:23:46.610 --> 00:23:52.610 So it's from what we had, I had read from the article, they 456 00:23:52.610 --> 00:23:55.010 trade millions of people into giving their information and 457 00:23:55.010 --> 00:23:58.070 selling it to companies that were not making loans. So 458 00:23:58.070 --> 00:24:00.800 obviously, you know, these guys thought that they were kind of 459 00:24:01.400 --> 00:24:06.440 dive in and go into getting loans and whatnot. And they did 460 00:24:06.440 --> 00:24:10.460 that. So they can get their information to the right people. 461 00:24:11.800 --> 00:24:15.880 Sean Murray: Okay, so here's the takeaway from all that. If you 462 00:24:15.880 --> 00:24:19.180 are someone who participates in lead generation, and you own a 463 00:24:19.180 --> 00:24:21.850 bunch of different websites, and you say, hey, we're going to 464 00:24:21.850 --> 00:24:25.330 connect, connect you with a lender, based upon the 465 00:24:25.330 --> 00:24:29.410 information you put in, and something else happens along the 466 00:24:29.410 --> 00:24:34.120 way, you could potentially be violating federal law. So this 467 00:24:34.120 --> 00:24:37.150 particular company that Johnny mentioned, they owned a bunch of 468 00:24:37.150 --> 00:24:39.880 different websites. They were lead generation sites, you might 469 00:24:39.880 --> 00:24:43.150 even think, oh, that sounds like somebody that I might even know 470 00:24:43.180 --> 00:24:46.720 they owned cashadvance.com They owned, I think it was 471 00:24:48.130 --> 00:24:53.590 badcreditloans.com. Right. They own generic sites, that a 472 00:24:53.590 --> 00:24:58.420 consumer or potential borrower would find online, and they 473 00:24:58.420 --> 00:25:01.540 would apply for a loan on with the understanding that these 474 00:25:01.540 --> 00:25:05.320 particular sites, were going to connect them with a lender, that 475 00:25:05.320 --> 00:25:08.170 it was a loan marketplace, I bring this up, because this is a 476 00:25:08.170 --> 00:25:11.920 very common business model J, you go up, you go on a website, 477 00:25:12.400 --> 00:25:13.990 it says something about, we're going to connect you with a 478 00:25:13.990 --> 00:25:17.020 lender were a loan marketplace, you put in your information, 479 00:25:17.020 --> 00:25:20.440 they try to connect you. And everything sounds very normal up 480 00:25:20.440 --> 00:25:24.220 until this point, yeah, except the FTC says, what happens next 481 00:25:24.250 --> 00:25:28.000 is where you break the law, that if you then sell that 482 00:25:28.000 --> 00:25:32.710 information, to let's say, like a credit repair company, or a 483 00:25:32.710 --> 00:25:37.210 debt relief company, or you sell the credit score of that 484 00:25:37.210 --> 00:25:40.300 applicant to somebody, hey, you done things you weren't supposed 485 00:25:40.300 --> 00:25:41.980 to, you said you were gonna connect them with the lender. 486 00:25:42.310 --> 00:25:44.890 Instead, you took their data, and you sold it, debt relief 487 00:25:44.890 --> 00:25:47.740 company, credit repair company, you know, all these other data 488 00:25:47.740 --> 00:25:50.140 companies. And if you're the person who owned the website, 489 00:25:50.140 --> 00:25:52.600 you might be, you might be thinking, Well, hey, I'm just 490 00:25:52.600 --> 00:25:56.380 monetizing this lead as much as I can, right? Yeah, they, they 491 00:25:56.380 --> 00:26:00.010 qualify or don't qualify for a loan. But hey, they probably 492 00:26:00.010 --> 00:26:03.700 would benefit from all of these other products. FTC says you 493 00:26:03.700 --> 00:26:06.250 can't do that. He said, You're going to offer them a loan, 494 00:26:06.250 --> 00:26:08.260 you're gonna connect them with a lender, and you and you did 495 00:26:08.260 --> 00:26:11.290 things that were outside of that scope, you broke the law, this 496 00:26:11.290 --> 00:26:16.900 company got fined $1.5 million for taking leads, people were 497 00:26:16.900 --> 00:26:20.770 applying for loans. And with the belief that it was gonna be they 498 00:26:20.770 --> 00:26:23.290 were going to be connected with a lender in a marketplace. And 499 00:26:23.290 --> 00:26:26.590 because other things happened, the company running the the 500 00:26:26.590 --> 00:26:29.710 websites they got in trouble. Yeah, this should be this should 501 00:26:29.710 --> 00:26:33.040 be a wake up call for anyone who relies on websites, very, you 502 00:26:33.040 --> 00:26:35.770 know, multiple websites, or even just one website, where you say, 503 00:26:35.770 --> 00:26:38.530 you're gonna connect a potential borrower, with a network of 504 00:26:38.530 --> 00:26:38.980 lenders. 505 00:26:39.050 --> 00:26:41.570 Johny Fernandez: So and according to like, the the the 506 00:26:41.570 --> 00:26:45.230 report that was online, they said that 84% of the loan 507 00:26:45.230 --> 00:26:49.400 applications, never made it to the lender, their information is 508 00:26:49.400 --> 00:26:54.020 given to, you know, all these companies 84% that's 509 00:26:54.020 --> 00:26:56.397 Sean Murray: Well, so here's the thing, right? So I'm looking at 510 00:26:56.455 --> 00:26:59.508 it from the, from the perspective of the company that 511 00:26:59.566 --> 00:27:03.080 may be operated the site, they have lead generation sites for 512 00:27:03.137 --> 00:27:06.709 loans. People throw out their information, yep, it becomes 80, 513 00:27:06.766 --> 00:27:10.223 let's say 84% of them qualify for nothing. Right? So what do 514 00:27:10.280 --> 00:27:13.564 you do? Throw them in the garbage? Well, like, they don't 515 00:27:13.621 --> 00:27:17.250 qualify for loans. So I'm going to sell it to this person could 516 00:27:17.308 --> 00:27:20.822 really benefit from debt relief, the real problem is not that 517 00:27:20.879 --> 00:27:24.451 they need more money. Yeah, the real problem is that they need 518 00:27:24.509 --> 00:27:27.850 to talk to some sort of debt settlement company, where the 519 00:27:27.907 --> 00:27:31.248 real problem is that their credit is too low. So I'm going 520 00:27:31.306 --> 00:27:34.877 to sell it to a credit repair company. So let's say 84% of the 521 00:27:34.935 --> 00:27:38.564 people inquire, are eligible for one of the loans that you have 522 00:27:38.622 --> 00:27:42.136 available at the lenders you work with in your network? Yeah, 523 00:27:42.193 --> 00:27:45.650 so you sell it to other people. Yeah, where this customer in 524 00:27:45.707 --> 00:27:48.991 your mind, you think would benefit? FTC says you can't do 525 00:27:49.048 --> 00:27:52.447 that. That's illegal. That violates the law. That should be 526 00:27:52.505 --> 00:27:55.961 a wake up call. For anyone who has a lending website and you 527 00:27:56.019 --> 00:27:59.417 say, well, this person applied for a loan. And because they 528 00:27:59.475 --> 00:28:02.816 right off the bat did not qualify for one, I then sold her 529 00:28:02.874 --> 00:28:06.503 information to a credit repair company, or debt relief company. 530 00:28:06.560 --> 00:28:10.074 If they weren't explicitly told that that's what you would do 531 00:28:10.132 --> 00:28:13.761 with your information, you could be violating the law. Now, I'm 532 00:28:13.818 --> 00:28:17.505 not a lawyer. Right? So I'm just reading the press release. That 533 00:28:17.563 --> 00:28:21.192 was that was that came out from the FTC. But if you are in this 534 00:28:21.250 --> 00:28:24.475 small business, finance industry, or any type of lending 535 00:28:24.533 --> 00:28:28.220 industry doesn't matter what it is, and you encounter people who 536 00:28:28.277 --> 00:28:31.791 do not qualify for financing and you say, Well, I still gotta 537 00:28:31.849 --> 00:28:35.248 monetize it, I'm going to sell it, this data to somebody be 538 00:28:35.248 --> 00:29:15.510 Johny Fernandez: Yeah. And it's, I think it's interesting because 539 00:29:15.510 --> 00:28:38.704 very, very careful, because the FTC is saying, you can't do 540 00:28:38.761 --> 00:28:42.218 that. So pay attention to that. This literally came out. You 541 00:28:42.275 --> 00:28:45.789 know, Johnny said, we're not sure if it's pronounced IT media 542 00:28:45.847 --> 00:28:49.534 or it media, we're not sure. But this came out on January 7, and 543 00:28:49.591 --> 00:28:52.759 it said, they now face restrictions on their operation. 544 00:28:52.817 --> 00:28:56.389 So not only they're a fine, but now they're all they also have 545 00:28:56.446 --> 00:28:59.499 to make all these all these changes. And this type of 546 00:28:59.557 --> 00:29:03.013 business model sounds just very, very familiar. Yeah, make a 547 00:29:03.071 --> 00:29:06.412 bunch of websites, acquire leads. And for people who don't 548 00:29:06.469 --> 00:29:09.811 qualify, perhaps you try to monetize those leads some some 549 00:29:09.868 --> 00:29:12.000 other way. FTC says you can't do that 550 00:29:15.510 --> 00:29:18.510 I, when you look at the people that we work with directly here 551 00:29:18.510 --> 00:29:22.860 in this space, a lot of people don't know the rules. They don't 552 00:29:22.860 --> 00:29:26.310 look at on a lot of them that I've noticed they don't do their 553 00:29:26.310 --> 00:29:29.520 full due diligence, so do some of it. And if they have a 554 00:29:29.520 --> 00:29:31.200 situation like this, where they're giving out the 555 00:29:31.200 --> 00:29:34.200 information, you don't know you're doing, you're doing it 556 00:29:34.200 --> 00:29:36.570 and then you get hit with this. And like you said, I think 557 00:29:36.570 --> 00:29:38.970 what's really sad is when you end up, you know, not only 558 00:29:38.970 --> 00:29:41.730 getting fined, but then also you can't work in the space or you 559 00:29:41.730 --> 00:29:45.060 can't do anything similar and you kind of end up getting your 560 00:29:45.060 --> 00:29:48.690 hands tied and you're like alright, well, I just I lost 561 00:29:48.720 --> 00:29:51.420 pretty much everything from not knowing you're not doing the due 562 00:29:51.420 --> 00:29:54.180 diligence, of understanding what I'm getting myself into. 563 00:29:54.510 --> 00:29:58.080 Sean Murray: Yeah, hey, I mean, I think this type of situation 564 00:29:58.080 --> 00:30:01.680 is even surprising to me. That if someone comes on your website 565 00:30:01.680 --> 00:30:03.060 and you say we're going to connect you with a bunch of 566 00:30:03.060 --> 00:30:06.090 different lenders, and upon the information they fill out, you 567 00:30:06.090 --> 00:30:08.730 find out that they don't qualify for anything. And you say, well, 568 00:30:08.730 --> 00:30:11.370 I'll just sell their information to, you know, credit credit 569 00:30:11.370 --> 00:30:15.480 repair. Yeah. That that's potentially against the law. To 570 00:30:15.480 --> 00:30:19.890 do. Yeah, no, it's, it's, I'm not lecturing. No, I'm just I'm 571 00:30:19.890 --> 00:30:22.620 just telling you, this is what you should know about. Yeah, 572 00:30:22.650 --> 00:30:26.370 because this is almost even. So you know, somewhat news to me. 573 00:30:26.940 --> 00:30:29.460 You know, a company did get in trouble for doing it. And they 574 00:30:29.460 --> 00:30:32.460 own websites that sound like ones we probably have visited 575 00:30:32.460 --> 00:30:36.330 before, like badcreditloans.com cashadvance.com, this was all 576 00:30:36.330 --> 00:30:39.510 consumer loans. But I think it still applies regardless. 577 00:30:39.540 --> 00:30:43.200 Johny Fernandez: Yeah, no, it definitely does. So always good 578 00:30:43.200 --> 00:30:46.440 to keep everyone up to date regarding situation, like things 579 00:30:46.440 --> 00:30:49.350 like that, because it'll, definitely help benefit them and 580 00:30:49.350 --> 00:30:55.170 understanding that you can get in big trouble, essentially. So 581 00:30:55.200 --> 00:30:58.920 for more stories, obviously, and any other videos that we have 582 00:30:58.920 --> 00:31:03.360 online, you can check us out on deBanked.com or check us out on 583 00:31:03.360 --> 00:31:05.880 our social media platforms on Twitter, LinkedIn, and 584 00:31:05.880 --> 00:31:09.660 Instagram, obviously, those will always lead you back into 585 00:31:09.960 --> 00:31:13.290 deBanked.com. Or you can also check out Daily Funder. That's 586 00:31:13.290 --> 00:31:16.080 definitely a great website to interact with different people 587 00:31:16.230 --> 00:31:20.190 and, and get, you know, kind of get an idea of what's going on 588 00:31:20.220 --> 00:31:23.670 in the industry. And stories like this would definitely also 589 00:31:23.670 --> 00:31:27.450 pop up on there too. So definitely two good resources. 590 00:31:27.870 --> 00:31:30.570 If you're new, if you've been doing it for a while, and also 591 00:31:30.570 --> 00:31:33.210 if you know you want to help other people out and give 592 00:31:33.330 --> 00:31:36.270 information to other people, definitely check those out. So 593 00:31:36.360 --> 00:31:39.930 yeah. So So that does it for us today. Again, I'm Johnny 594 00:31:39.930 --> 00:31:40.560 Fernandez. 595 00:31:41.470 --> 00:31:43.450 Sean Murray: I'm Sean Murray. And we'll see you guys next time