00:10
Peter Dunn
Fire. Here Comes The Thunder of The Pete Planner show. I was just trying out new stuff. Did you like that, Damian?
00:23
Damian Dunn
That was almost as great as your new closing line for this.
00:29
Peter Dunn
The new closing line is amazing. That new opening line, you want it again? Let's start from the beginning again. I'll try something else. Okay, hold on a second. I'll try a new line to start the show. Fire. Let's bring the noise. Hey, everyone. I don't know. Hi, Dame.
01:00
Damian Dunn
Are we in an 80s metal hair band?
01:04
Peter Dunn
Well, bring the noise. I believe was Anthrax and Public Enemy did a song together called Bring the Noise.
01:09
Damian Dunn
That's true. I was leaning towards was it Twisted Sister with come on, feel the noise.
01:14
Peter Dunn
Oh, yeah, twisted Sister. Anyway, Dame, we're doing a radio show here, a little podcast recording. Whatnot? Whatnot? You are full back now, a full week back from vacation. You're ready to go? I mean, you are rested, recharged, re energized?
01:33
Damian Dunn
Totally. And ready to take next week off?
01:36
Peter Dunn
No? Good. All right, dame. So on the week show, we're going to talk about yolo is the new Fire movement. Is the first segment we're going to talk about will the housing market come back to Earth because of interest rates going up, because inflation is going to force interest rates up? Then finally, will employers adjust their standard of living raises based on high interest rates? Those are the questions. Danza, hello to you. Good to be with you, Danza. All right, Dame, are you ready to do the show?
02:15
Damian Dunn
Yeah. I know you've got a lot of things going on this afternoon, so let's make sure we get you onto this.
02:20
Peter Dunn
Well, I don't want to be specific about what I've got going on, but it's nothing, absolutely nothing. I'm going to maybe not work for once in my life on a Friday. Okay? By once in my life, I mean just once in the last five years. Okay, we're ready to go. Getting text messages. No one cares. Okay. Three, two, one. This week on The Pete the Planner Show, we answer your money questions. Here's how the show works. You email us, askpete@petetheplanner.com that's askpete@peteteplaner.com, and magic happens. At that point, you will either be ignored don't take it personally or I will answer your email on this very show or in some newspaper column, or just at a cocktail party that I'm not invited to with friends that I don't have. Joining me, as always, is Damian Dunn. Hello, Dame.
03:09
Damian Dunn
Hello, Pete.
03:10
Peter Dunn
You ready to bring the noise?
03:12
Damian Dunn
Of course.
03:13
Peter Dunn
All right, let's rock. Dame. This week, our first segment here in my Indianapolis Business Journal column. This week, I revisited a prediction I made in September of 2020, and I want to revisit that prediction with you. You and I love to revisit our predictions and see who is wrong. Well, your pal Pedro de Pesos was dead wrong on my prediction in September of 2020, where I waxed poetically that there will be a new sensibility amongst the American people akin to the sensibility that was gained after the Great Depression. In terms of resourcefulness and financial modesty, I was wrong. What anew but Dame, the opposite has happened for a lot of different reasons. I believe the yolo movement is upon us. You only live once, and I think people are spending money like that is the case.
04:19
Damian Dunn
While I would love to hear more about how you were wrong and just let you fill up the segment about that, we do see a lot of that right now. And I think it's really weird to juxtapose these two things, yolo and fire, because there are some components of fire that say people would say, well, we only live once. We want to enjoy ourselves. But it is completely separate, in my estimation, of how most people achieve fire versus what we're seeing with yolo. So we're seeing a lot of pent up consumerism right now and demand and people just going out and enjoying their refound freedoms, whatever. You want to define that as getting out in the public and spending cash and eating at restaurants and all that fun stuff. But I think that doesn't line up with the tenets of fire movement, because most people, to achieve fire are very scrupulous with the dollars that they have and where they spend them.
05:23
Damian Dunn
I think there are components here, Pete, that cross over, but I still see them as two very different ideologies.
05:31
Peter Dunn
I agree there's an evolution, I think, going on here. I think sort of classic financial sensibility is this live a modest lifestyle during the working years, which creates a reasonable nest egg. Okay. Modest living, reasonable nest egg. And by the way, I'm not suggesting I have a modest lifestyle now, but compared to what it could be versus how what I'm trying to create in terms of a nest egg, I currently subscribe to that idea. Then there's the fire movement. Financial independence, retire early, which convinced a lot of people that's subjective, some people, to live a Spartan existence now, just like you said, Dame, so that they can have a very long and comfortable retirement. And then I think after this anguish and languish of 2020, we've got the, hey, who knows what life holds? Let's just do what we do and possibly deal with the ramifications later.
06:42
Peter Dunn
I think people are doing that. I think people have always sort of done that, always sort of said, we'll figure it out later. But I feel it's just more purposeful at this point based on what's happened in the last 15 months or so.
06:55
Damian Dunn
I can picture somebody two years ago sitting in their apartment, reading up on fire, thinking, you know what? I think this is something I really want to go for and maybe even starting to put the pieces in place to start achieving that. And then they're confined more or less to their house or their apartment for an extended period of time, and they just look around and, like, there's more to life than this. And the pendulum swings dramatically back to the other side, just like you said. And they say, you know what? This isn't for me. And who knows if any of those habits that they were starting to build, whether it was modest living or aggressive saving or whatever the case may have been, if those will resurface, you would think that they would it will come back from, you know what? I've spent enough money.
07:44
Damian Dunn
I can't stand looking at my credit card bill. Oh, my gosh, what do I do now? And will it be as easy for them to jump back into some of those habits, to have those things reemerge in their financial lifestyle, to get them back on a path of I'll call it normalcy. I don't think fire is the normal for many people to consider a comfortable means of living. And honestly, I'm not sure Yolo is either. I think it takes a unique personality to be able to continue to do that month after month. We all have months where we take a big vacation or some large event in our lives is going on, and we spend a lot of money, but water finds its level pretty quickly after that, I think, for most of us. So I think there's a subset of people that are really going through some considerations after this past 18 to 24 months of life and how dramatically it's changed.
08:43
Peter Dunn
For some people, I have to admit, I have loosened the purse strings and become a little more fun. Little bit more fun in the moment. Dame, I'm not kidding. There is a term going around my house right now. People are calling it fun dad summer. No, it's true.
09:02
Damian Dunn
So what's your neighbor doing that your kids really like?
09:04
Peter Dunn
No, I've been told by all three members of my household who aren't me that I was going to say who don't look like me, but then I realized that I just excluded Ted. All three are saying, Is this fun dad summer? I have been fun. Do you want to hear what I've done?
09:20
Damian Dunn
I would much rather your kids tell me what it's been fun, but, yeah, you go ahead and tell me what you think is fun.
09:24
Peter Dunn
Took everyone to Indie eleven socks soccer game. Had a big fun night. I mean, yes, were the first people there because I wanted to beat traffic, but other than that, the rest of the night was fun.
09:36
Damian Dunn
Did you leave before halftime?
09:37
Peter Dunn
No, we shut it down.
09:40
Damian Dunn
Because you didn't want to deal with traffic on the way out.
09:42
Peter Dunn
Didn't want to deal with traffic on the way home. Fun, dad. Summer. Last weekend I went to the pool at the beginning of the summer. I usually go, like, the last day. I'm like, okay, fine. I'll go I went at the beginning and swam with the kids. Fun, dad. Summer. Then Ted made a soccer team that a travel team that he's been working very hard to make. And so we got it. And I was like, hey, let's go celebrate. And went and got a shirt that has the club name on it. And I am a fun dad. And I think it's honestly, all jokes aside, I think it's a little bit of yellow. I think last year was so hard at various times, and I've just tried to settle myself down. And I can't tell if getting off social media and just sort of having healthier, mental health or whatever it is, but I feel like I just want to enjoy life a little bit more right now.
10:36
Peter Dunn
Now, am I going to blow a bunch of money and not save for retirement? No, because I have to do that first as opposed to last. But Dame, I think rising interest rates, which we're going to talk about in the next segment, will put the end to the yolo movement.
10:54
Damian Dunn
I'm just really interested in the concept that your yolo experience is bettering the lives of people around you.
11:02
Peter Dunn
Oh, that hurts. Oh, that stings. That feels like a kick right to the area below the navel.
11:10
Damian Dunn
But I think that's an excellent dad yolo.
11:13
Peter Dunn
Well, that's the only dad yolo I can do because otherwise I'm like I'd like to sit in my chair, and I'm going to bed now. I don't know. Anyway, dame coming up after the break, here's what we're going to do. It's sort of the next two segments are attached. We talked inflation a little bit last week. We're going to extend that conversation now. I think it's conceivable that this inflation issue, if it doesn't end soon, could tank the housing market. And I will explain the connection between those two things next. And then after that, will your employer give you a bigger raise because of inflation? Is it possible? Do you get a 5% raise because of standard of living? You'll find out soon here on the Pete the Planner show. I'm Pete the planner. I'll just say that was phenomenal. Now, I have been fun this year.
12:11
Peter Dunn
This summer, I should say. You're doubting me?
12:19
Damian Dunn
I have no data points other than what you've shared with me. I would need your family to confirm the funness.
12:25
Peter Dunn
Do you want to see if we can get Mrs. Planner on the air right now?
12:27
Damian Dunn
Yeah.
12:28
Peter Dunn
This is going to backfire. Oh, actually, we'll call Ollie. That'll better. Okay. This could get super weird. This is a mistake. Okay. Hi, Ollie. I'm live on the radio show right now. I just wanted to tell you.
12:46
Ollie Dunn
Okay.
12:47
Peter Dunn
Okay. I was telling Uncle Dame here that I have been fun this summer, and it's been fun dad summer. And he didn't believe me because he knows I'm not very fun. Is it fun dad summer?
12:59
Ollie Dunn
Well, if you want me to make you look good? What answer would you like?
13:07
Peter Dunn
I want the truth.
13:10
Ollie Dunn
Well, if 100% was you say yes to everything. I say you're like at maybe a 74%.
13:21
Peter Dunn
That's fun for me, though. I mean, I'm usually the hardcore no man.
13:26
Ollie Dunn
Yes. So I would say you said yes to everything so far except a few things.
13:35
Peter Dunn
Okay, thank you.
13:36
Ollie Dunn
Like getting the naked guinea pig and.
13:39
Peter Dunn
Yeah, we're not going to get a hairless guinea pig, sweetie. It looks like a miniature hippo and I don't know what they eat.
13:47
Ollie Dunn
Yes. Well, I think you've been fun, dad. Summer so far.
13:55
Peter Dunn
All right, perfect.
13:56
Ollie Dunn
You could add some more things, but other than that you're good.
14:02
Peter Dunn
All right. Hey, I love you, buddy. I'll see you when I get home.
14:05
Ollie Dunn
Love you. Bye.
14:06
Peter Dunn
Bye. Fun, dad. Summer. Validated.
14:09
Damian Dunn
All right. Way to go. It is 100% confirmed.
14:15
Peter Dunn
Boy, I'm glad that worked out. All right, our man Brian says his wife texted him randomly this morning that they should start flipping homes just today, and he put yolo. That's so true. Okay, ready? In three, two, one. Back on the Pizza Planner show, answering your money questions. Dame, I don't know if you know about this, but just this week, the inflation rate I got updated, I was sort of remeasured. Within the last twelve months, inflation is at 5%. Now it is at 5%, which is an issue. I mean, long term inflation. Financial planners often measured at around two and a half to three and a half percent somewhere in there, over a long term rate of return, or long term, I should say. Now, to get there, of course, sometimes it's 1% and sometimes it's five, and it just hurts when it's five. This is the worst inflation we've had since 2008.
15:20
Peter Dunn
And prior to that, it was in the early ninety s. And I wonder nothing's killing the housing market. It just keeps going higher and higher and higher because of people's willingness to go deep into debt to buy homes that are overpriced. Do you think one of the side effects of inflation, which is rising interest rates, do you think when that starts to happen, if inflation hangs on, interest rates go up because banks want more interest. I mean, they want more money for the money they're letting people borrow, do you think that will shrink the buyer's pool and cool down the housing market? I'll hang up and listen.
16:07
Damian Dunn
In many markets, we're already starting to see that very thing happen. Mortgage applications are declining. Now, of course, last year a huge amount of the applications were refinances, but the strength of the housing market couldn't be denied either. So we've talked about it multiple times on the show and in the news that prices are ridiculous, frankly, right now, and that's for a number of reasons. But one of the biggest reasons was the fact that interest rates were so stinking low and we see it all the time. When interest rates start to go up, of course, that's going to make the monthly payment that much higher, and mortgage applications are going to be scrutinized a little bit as well. And it's just going to naturally start to shrink the mortgage pool. And so when there's fewer people out there shopping for homes, then hopefully that means that the law of supply and demand will continue to march forward and prices will start to come back down to a reasonable amount and we'll be on to the next bubble at that point.
17:10
Peter Dunn
There's the topic we don't talk about on the show anymore for a while at least, which is a lot of demand, a lot of sort of mania of investing, people getting carried away. The housing market has certainly had some of that. Yes, there's not a lot of supply of pre owned homes or whatever you call that. And so then people all of a sudden freak out about that and say, well, we got to get one. And oftentimes it's people who already have one, yet they use this mania to convince themselves that it's perfectly normal to keep just buying more home.
17:50
Damian Dunn
Yeah, a lot of people are heard critters. I mean, they get caught up.
18:00
Peter Dunn
Heard critters.
18:00
Damian Dunn
Critters. Herd mentality. Heard critters.
18:03
Peter Dunn
Go right ahead. I'm listening. I just didn't know if this is.
18:07
Damian Dunn
Like a this isn't going to be an old farmy time, Joe. That's where it ends, Pete, with heard.
18:14
Peter Dunn
I mean, you said heard critters. You're currently broadcasting from a barn. You tell me what's happening next.
18:21
Damian Dunn
I think the only critters I might have out here are a couple of mice, but they're not going to make any appearances today. But people get caught up in it. We see it. And honestly, maybe some of this consumerism that we're seeing right now is based on everybody following the herd of what everybody else is doing right now. So I'm not sure why people seem so aggressive at going out and buying their second house or a house that's way larger than they have a need for. I mean, I had lunch with a realtor earlier this week. He said they weren't even putting signs in yards. It was just all digital. There was no point in putting signs in yards because it was just a waste of time.
19:02
Peter Dunn
Yeah. Typically rising interest rates will cool a housing market, but I think obviously our entire economy is connected amongst itself. But this idea that inflation based on the economy shutting down, opening back up supply chain issues, pent up demand, the fact that all of those things could directly impact the housing market just fascinates me. There are aspects of inflation right now that are understandable like used cars. In the last year, used car prices are up 29%. And the justification behind that is because rental cars, businesses have not been putting their cars back out to pasture. There's just not as many cars in the market to buy and that all trickles down from the travel shutdown. And so that is an understandable piece of inflation because it's a demand issue or pardon me, it's a supply issue and then demand remains constant.
20:04
Damian Dunn
Well there's the chip shortage as well so there aren't as many new cars to be purchased anyway. So used cars are going to as you said, be in higher demand and well when that happens prices go up so they can make a little bit of extra cash. So a number of factors that we haven't had to face recently and then the confluence of some of these just all coming together at the same time is something that we can hopefully look forward to the end of in the near future. But when we start looking at historical interest rates, even if it's 5% higher than it was last year, what is it compared to two years ago? I mean right now this time last year prices were very low on almost everything. And so if we're comparing prices from today versus last year we're going to get a little bit of a base effect on these numbers.
20:57
Damian Dunn
So let's not get too worked up. But yeah, inflation is something very real that we're dealing with right now.
21:02
Peter Dunn
We are going to talk about in the next segment how inflation is going to affect our incomes and what our employers are going to have to do or are thinking about doing or won't do at all. But I also wonder before we even get there dame, how about for the average investor, especially conservative investors who maybe have CD ladders that have no rungs on them anymore, they've just got to wait for interest rates to rise before they can do anything. Because if you're so conservative that you're not willing to put money into the market and you're only getting 1% on your money and your money is going backwards at the pace of 5% a year in terms of buying power, I think uber conservative, unsuitably conservative investors are getting hammered right now.
21:48
Damian Dunn
There is still an option out there for people who are looking for very safe money and I'm going to say it and you're probably going to chuckle.
21:58
Peter Dunn
I might.
21:59
Damian Dunn
Savings bonds. I bonds, particularly if you had to guess what the rate on an I bond was right now.
22:06
Peter Dunn
Oh, a little game. Okay. An I bond. The rate on an I bond. I don't know much about this. I'm going to go two and a half percent.
22:18
Damian Dunn
Just over three and a half.
22:20
Peter Dunn
Okay. Not terrible. Guess I was just mostly wrong.
22:23
Damian Dunn
Yeah you're like 50% offish.
22:25
Peter Dunn
Yeah. Fun dad. Summer can't always be 100%.
22:28
Damian Dunn
So if you're that conservative person there are some stipulations that go along with owning I bonds. But if you are looking for a place to park cash they're still out there and it's backed by the US government. So you know, they'll just keep printing money to give it to you when you need it. So I bonds are still a very attractive parking spot for some of your cash if you want it.
22:48
Peter Dunn
If I may play Pedro's advocate here, dame, if inflation is 5% and these I bonds are at three and a half percent, are we still going backwards?
22:57
Damian Dunn
Yeah, but I don't think either you or I expect inflation to remain at 5% for the foreseeable future. I firmly believe this is a blip, maybe a little bit of an extended blip, but it will come back to what we would reasonably expect in the not too terribly distant future.
23:18
Peter Dunn
Yeah. So here's my quick inflation prediction, which then bleeds into the next segment. I believe we may have one more month of ticking up a hair. Right. We might go from five to, like, 5.55.6, which is not really hair, it's 10%. But then after that, I think it's going to stabilize and then fall back down into the three and a half percent range that is my gut through the end of the year. I'm curious. Your thoughts, quickly.
23:43
Damian Dunn
I don't think that's out of line. It may take a couple of extra months beyond that again, because we're comparing to last year's numbers. So we'll have to look and see when the prices really started coming up or normalizing last year.
23:54
Peter Dunn
And we will talk more about that after the break right here on the Pizza Planner show. You're not running your clock anymore?
24:01
Damian Dunn
I started it too late.
24:03
Peter Dunn
Oh, my gosh.
24:04
Damian Dunn
How bad did I blow it?
24:06
Peter Dunn
No, I saved it because I'm a broadcasting professional. You almost added five minutes of editing onto my work day today.
24:13
Damian Dunn
So sorry. You mean the job that I've offered to do for you? I don't know how many times I.
24:21
Peter Dunn
Don'T want you to do a job to me, Dame.
24:23
Damian Dunn
I don't really either.
24:28
Peter Dunn
All right. Can I tell you, our friends are vaccinated friends are coming in from St. Louis this weekend and we're all spending hot breathing times in our house together. And they're bringing the one and only legend of St. Louis custard, ted Drews. No idea. What?
24:49
Damian Dunn
No idea.
24:50
Peter Dunn
Ted drew. Drewes.
24:55
Damian Dunn
Okay.
24:56
Peter Dunn
Ted Drew's is a famous with a t custard place in St. Louis. I believe there are two locations. One on Chippewa, I believe, and one on not chippewa. And it is what I believe to be the world's finest custard.
25:12
Damian Dunn
Okay?
25:14
Peter Dunn
And they mix pie, slices of pie in like an entire they have pies. They cut a piece of pie and then they mix it into your custard, sort of like a pie blizzard. And I think they call them concrete, but a bunch of people call stuff concrete. Anyway, the Great Pumpkin around in the fall is a piece of pumpkin pie that's got, like, pie crust in the custard. And I'm getting an apple pie, whatever it's called, tomorrow when they arrive at my home.
25:41
Damian Dunn
Did they have to throw that in a cooler? I mean, I'm sure they can't just throw it in the back of the car.
25:45
Peter Dunn
Well, let me take this a step further. Our two friends happen to be really intelligent people. Both are PhDs, and they have dry ice at their disposal, which they bring because they're scientists.
25:59
Damian Dunn
How convenient.
26:01
Peter Dunn
You should see when, like, my wife's very intelligent, and obviously these two friends are incredibly intelligent. I just sort of sit there, stupefied, just drink the brown liquor. I'm just like, whatever, guys.
26:12
Damian Dunn
Google Translate. Open at all times so you can try and figure out and catch up to what they're talking about.
26:16
Peter Dunn
Yeah, and I think they love to watch me glaze over, and so they get after, like, the Rhomboid. I'm like, I don't know what a Rhomboid is. I don't know if a Rhomboid is anything.
26:25
Damian Dunn
It is.
26:26
Peter Dunn
It might be some awful okay, you ready, Dame? Yes. I have to admit, I feel like the inflation thing is running out of steam, though. I feel like we almost need another topic on the back end of this segment.
26:42
Damian Dunn
Well.
26:44
Peter Dunn
Okay, I'll think of something.
26:47
Damian Dunn
All right. If you have a topic for us to talk about, throw it in the comments.
26:51
Peter Dunn
Yeah.
26:53
Damian Dunn
If it's something we can do something with, we will jump on it, potentially.
26:56
Peter Dunn
Danza says she forgot to say facebook spying is so hardcore. Never heard of Duck Donuts before last weekend, before then today, last Friday. And then she just got a notification that Duck Donuts is opening in Rancho Cucumanga. Yeah. Duck donuts.
27:11
Damian Dunn
It's worth it if it's close.
27:14
Peter Dunn
It's delicious. It's a little high maintenance, but it's good. I mean, it's like me, high maintenance, but good. All right, in three, two, one. Back on the Pizza Planner show. Dame, I don't know if you've heard about the inflation. It's 5% right now. A lot of organizations, when they go to increase people's pay, do so in a systematic way, and there's a couple of ways they do it. Number one, it's just a standard rate. It's just like we always do. This fixed amount, like 3%. It's 3%. It's what we do. It's our standard. Others do sort of attach it to the inflation rate going up and down much in the way that Social Security does their cost of living adjustment. So the question in front of you, Dame, is in the year 2021, as businesses are recovering, what do you think the majority of businesses who do give cost of living adjustment raises will do?
28:14
Peter Dunn
Do you think they will stick to their standard fixed rate, or do you think they will jump at the higher rates and adjust wages up by five percentage?
28:29
Damian Dunn
I think it's going to be determined mainly on the health of the business, first and foremost. But if I had to guess, because that's what we're best at here, yes, they'd stick with their standard. One.
28:45
Peter Dunn
I think so too. I think so too. And here's why. Social Security, I don't know if you've heard of it. Every year they have a cost of living increase and in 2020 so in 2019 they decided for 20 this is wrong. In 2020 they decided for 2021 there would be 1.3%. Okay. And so far the estimates for what they're going to decide here in 2021 for 2022, the Senior Citizens League, which is a thing, it's not like a slow pitched softball league. I think it's actually like a group of people who talk about the old.
29:26
Damian Dunn
I was going to look on DraftKings for them.
29:27
Peter Dunn
Yeah, they're estimating 4.7%, which would be the largest increase since 2008. But it goes to the bigger point here. If you look at the Cola, over time, it still averages below 3%. So if the average employer says, hey, we give 3% raises. So let's say you got a 3% raise in the year 2020 or a 3% raise even in 2021, and Cola was blipping along at 1.3% for Social Security. Therefore, theoretically, with inflation itself, you got ahead further than the raise was meant to get you ahead because that raise isn't merit based, it's just a standard of a living increase. Right?
30:15
Damian Dunn
Yeah, I think there's we're looking at a fairly truncated segment of time right now where it's 5% maybe by the end of the year. It looks like it's trending to be rather normal ish we really don't know, and we haven't even talked about the Fed maybe stepping in and doing something. They've got a long term target of 2% inflation, so they're not going to let this get too terribly out of control. How long does this go on before other measures are starting to be implemented on our behalf to rein inflation? I don't know. That's above my pay grade. I don't sit in any of those meetings. But this isn't in anybody's best interest right now, so I appreciate a government that's willing to keep their hands off for a while and see if things will normalize themselves. But if it continues on, the Fed will start to enact some policies to get things back under control.
31:14
Peter Dunn
So the other element here, of course, is that there's this concept of what's called real wage. And so real wage has to do with the increase in wages over time as it relates to inflation, which has been relatively modest over the last several decades, especially at the lower income levels. So I think if anyone is going to get hurt by what's going on right now, big surprise, dame, it's people at lower income levels. However, here's how this ends up affecting us and here's how inflation ends up spiraling out of control. Chipotle this week announced that they increased menu prices because they are increasing wages for a couple of reasons. They're trying to get people across the board to $15 an hour. Great. They are also trying to be. Competitive in the hiring environment. Great. And so when they raise their prices, though, that means that is a form of inflation to some degree.
32:15
Peter Dunn
Right. And so then people have to be able to afford those burritos and quesadillas and tacos and bowls. They need more money. So therefore, this inflation thing starts to really spiral out of control, which is why people, especially employers, it's so important for them right now to decide how they're going to handle this. Are they going to increase prices? Are they going to try to absorb these cost of living adjustment raises within their own profitability? What's really going to happen here? Yeah.
32:45
Damian Dunn
Employers are faced, especially employers like Chipotle, with tons of different price inputs, whether it's the food that they buy from a wholesaler to turn into food to repurpose not repurpose, but make into beautiful food for us to consume. The transportation to get it there, oil prices are going up, so the transportation to get the food there is going to increase as well. And if there's any plastic being used, oil prices are very influential on plastic as well. So we're seeing a big storm of increases coming across the board for things that we kind of like to do. We like to eat. And I mean, I do, Pete. I know you do.
33:33
Peter Dunn
Wow, that seems judgmental.
33:35
Damian Dunn
Okay, maybe not as much as you used to, but we've got some things that we're dealing with right now, and I still expect them to level out in due time.
33:45
Peter Dunn
We just had someone on Facebook Live ask an interesting question that's mildly related to this. Do you think employers will change their stance on remote work even after they've told workers they can work remote? That's an interesting question because we're starting to see I saw on CNBC this morning, by the way, I wasn't watching. I was walking through our office building. It was plain, so don't no one judge me. And talking about how some companies have already they said, hey, we're coming back. And now they've pulled back and say, okay, well, actually, you can work from home a little bit more than you thought. Even this week we had a discussion here. Internally, it's like we only require people here one day a week, and then the other four days are at their disposal. But then culturally, it became this thing where people started to feel like they were being asked to be here more than they were.
34:33
Peter Dunn
So I think, actually, that's what's going to end up happening is that whether it is explicitly stated by your boss that you need to be here, or whether you feel like your boss is saying you need to be here. I think that's what gets people back to the workplace. Other than the social component of seeing other humans that you didn't live 15 months with 24 hours a day.
34:53
Damian Dunn
Yeah, we only see the stories about, like, J. P. Morgan. I think it was. People got to get back in the office. I'm tired of having Zoom meetings on, but that you can go out and read other stories that say, you know what? We found out our employees do just as good of work at home as they do in the office. And it saves us money if we don't have as big of an office. So we're going to run with this work from home stuff as long as we can. Or until we're proven that it isn't a good fit for our business type. So we don't hear too many of the stories of the in between folks who are trying to figure this all out and figure what works for their employees and their business model. So. I think you're right, though, Pete. I think there's going to be some growing pains with this new normal that we've all kind of acclimated to.
35:37
Peter Dunn
I think the next weird stage is going to be the fall, when I think a lot of business travel picks back up. I know business travel has picked back up, but I think conference season in the fall is always a huge oh, by the way, we got some good feedback. Damien, your volume is a bit low today. That's all right. New Mic. Who this? I like your new mic, by the way.
35:56
Damian Dunn
You should.
35:57
Peter Dunn
Yeah. I think in the conference season, in the fall, october, September, October. That could change the dynamics of going back to work too. Because, I mean, guess theoretically you could work from home, then go to an airport, go to a conference and come back to your home. But for some reason, I think that begins to shift. In fact, our hybrid work policy is a temporary one. It's sort of a pilot that we're testing through September. So there you go.
36:23
Damian Dunn
Yeah. I appreciate flexibility and I think we'll figure it out. And just like every other company in the US. You got to deal with the cards you were played. We'll figure it out as we go.
36:33
Peter Dunn
All right, dame. So here's what we're going to do. Coming up after the break biggest waste of money of the week. I struggled this week. Funny one. But then I found one at the last second, and it's a doozy. So we'll hit that. Of course, current Events as well. All right, dame, I got to tell you, we talked about Ted Drew's during the break, which is my favorite custard place in St. Louis. And now I can't get my mind off of it because I know I get it tomorrow. I'm very excited. So, anyway, I don't know why I just distracted the show to tell you that, but, alask, here we are. I'm Pete, the planner, and this is the show. Man, that's a dumb way to hit the post. Just bring back something I talked about during the break just so I could add another 10 seconds of patter.
37:12
Damian Dunn
But it worked.
37:13
Peter Dunn
Oh, yeah, well, I hit the post. I hit the post, kids.
37:17
Damian Dunn
Red, I've turned up the gain on my mic just a little bit, so hopefully that'll be a little bit more pleasing to you and everyone else listening. Thanks for the feedback.
37:26
Peter Dunn
You know what that also means is I've got to edit that in post, too.
37:31
Damian Dunn
I've turned it back down and we'll do it next week, okay?
37:34
Peter Dunn
No, it's fine. I mean, I want to stay here all weekend messing with your sound levels.
37:39
Damian Dunn
You could do it at home.
37:41
Peter Dunn
Listen, I will do what I do when I do it. Okay. Ready to go?
37:49
Damian Dunn
Sure.
37:50
Peter Dunn
Okay. You ready to start your clock? That's part of it.
37:52
Damian Dunn
Remember, I got it.
37:53
Peter Dunn
Three, two, one. This week's biggest waste of money of the week right here on the Pete the Planner Show is the auto Wild Steak Grill. Using radiant instead of convection heat, this Pat lafreda backed, German made countertop machine delivers restaurant quality Sears at home. A pair of individually adjustable infrared over fire burners cranks things up to 1500 degrees Fahrenheit, giving you the steakhouse crust you long for while keeping the inside a juicy medium rare same. A solid cast iron grid distributes the heat evenly and can hold the biggest porterhouse your butcher can dish out and is height adjustable with a multipurpose lever that doubles as a great handler and bottle opener. The burners are easily removed for cleanup and are powered by readily available propane tanks, letting you cook nearly anywhere. All right, Dame, I have so many comments about this. First of all, propane tanks are not readily available.
39:02
Peter Dunn
There's a huge propane shortage in our country, and so that is not true.
39:09
Damian Dunn
That's a shame.
39:11
Peter Dunn
Number two, what do you think this thing costs?
39:15
Damian Dunn
Well, I had a price on my mind until you mentioned that multipurpose handle.
39:22
Peter Dunn
That's funny. That might be the funniest thing you've said in, like, three years.
39:31
Damian Dunn
It has and very industrial look to it for those of you listening along. And looks very upscale as well. I mean, it looks like it's even got somebody's signature on it that may have made it, or Otto's signature himself. This is destined to be drastically overpriced. It looks like a giant toaster oven.
39:51
Peter Dunn
Yeah, it does look like a big toaster oven.
39:55
Damian Dunn
I'm going to say this is a $659 grill.
40:04
Peter Dunn
It's $999. Here's what they don't understand about it. They say it's a countertop. I assume you're still going to use this on an outside counter. Because if I put this on our countertops in our house and cooked a 1500 degree steak, I think my wife would kill me.
40:21
Damian Dunn
I'm not dragging a propane tank inside to cook. You know what? Maybe that's like the outdoor bar countertop that they're talking about.
40:29
Peter Dunn
Yeah, the other thing is, I'll be honest. I can make a pretty mean steak using, oh, I don't know, a grill. I don't need it cooked at a higher temp, cast iron pan.
40:41
Damian Dunn
I mean, there's all sorts of ways to get that nice sear, that nice crunchy crust on your steak.
40:46
Peter Dunn
What's in the news this week, Dame, was that you stalling to pull up the news?
40:53
Damian Dunn
That was me stalling to figure out which one I wanted to read first.
40:56
Peter Dunn
I love to catch you off guard. It's the best part of the show.
40:59
Damian Dunn
A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house. Illustrating the rise of big investors as a potent new force in the US. Housing market. Dr. Horton built 124 houses and I'm going to say conroe. That's probably not how people in Texas say it, but I'm going to say Conroe, Texas, rented them out and then put the whole community with Amber Pines at Foresters Ridge, if you're interested. On the block, a who's who of investors home rental firms flocked to the December sale, and the winning bid was $32 million from an online property investing platform, Fundrise LLC, which manages more than a billion dollars on behalf of about 150,000 individuals. The country's most prolific HomeBuilder booked roughly twice what it typically makes selling houses to individual middle class owners an encouraging debut in the business of selling entire neighborhoods to investors, depending on which side of the fence you're sitting on.
42:01
Peter Dunn
Pete yeah, so that's unusual. Now people are just buying giant blocks as opposed to houses themselves, which I got to think is not really helping the housing bubble too much.
42:12
Damian Dunn
No. How could it be? Now you're bidding against pension funds and specific funds to buy against this stuff. It's an interesting concept, I'll give them that, but this is not helping at all.
42:29
Peter Dunn
I wasn't going to bring it up, but I have to. Speaking of weird ideas, unusual ideas to invest in more formal ways, like giant neighborhoods within a pension fund. How about certain retirement plan advisors now allowing cryptocurrency investments within employer backed 401? You and I discussed this privately this week. It is a giant heinous mistake that I cannot believe a single investment committee at any employer, actually, I can believe of course I can believe everything's believable now, but it is a tragedy that is happening.
43:11
Damian Dunn
I think this appeals to a very small subset of certain companies that they could potentially say, hey, we've got crypto in our 401K plan. You can invest in that. I think it even blurs the line even further between what crypto really is and how it's perceived. What function does it serve? And putting it inside of a think just adds confusion to the mix.
43:37
Peter Dunn
I mean, it's not like there's been a lot of negative news about how this untraceable currency is remarkably traceable this week with the FBI recovering the hostage ransom money from the pipeline shutdown and of course, a couple of other stories about tracking down the cryptocurrency? I don't know. At this point. I don't know. We'll just keep reading the news stories.
44:00
Damian Dunn
Can I tie a story into that?
44:02
Peter Dunn
Please, go ahead.
44:03
Damian Dunn
Unemployment fraud during the Pandemic could easily reach $400 billion, according to some estimates. And the bulk of that money likely ended up in the hands of foreign crime syndicates in Russia, China and Nigeria, making this not just theft, but a matter of national security. You see, when the Pandemic hit, states weren't prepared for the unprecedented waves of unemployment claims they were about to face. And they all knew fraud was inevitable, but decided getting the money out to people who desperately needed it was more important than laboriously making sure all of them were genuine. All of the claims, that is. So here's how it works. Scammers often steal personal information and then use it to impersonate claimants. Other groups trick individuals into involuntarily, I should say, handing over their personal information. And once they have the info, the claims are filed, benefits are received, and, well, they're happy, presumably.
44:52
Damian Dunn
So then mules. Pete mules. Not the critters. I'll use it again.
44:58
Peter Dunn
No.
44:59
Damian Dunn
Rather, low level criminals are given debit cards to the accounts receiving the benefits and then asked to withdraw the money from ATMs. That money then gets transferred abroad, often via cryptocurrency. You got it.
45:14
Peter Dunn
I was wondering where this tied in at this point, I had drawn an entire Beautiful Mind bulletin board of how this crime syndicate sticks together. And it, of course, ends in bitcoin. My man Brian, alive on Facebook right now, says he's been a victim of that very crime.
45:34
Damian Dunn
Should have had him on this segment.
45:37
Peter Dunn
Yeah. Every time people say and then you impersonate someone, I like to imagine that you're actually doing an impression of them. It's like, yes, I'm John Smith, and you call in and it's like, oh, my gosh. They're impersonating you? No. With your documents. It's like, no, this is really me. But that's not how it works.
45:56
Damian Dunn
No.
45:57
Peter Dunn
One more story.
