Category: Investments For The Modern Family

Now, I know you got half the world that says, you know, oil’s horrible fossil fuels this and fossil fuels that, you know, whatever. I’m not here to debate that. What I am here to let you know is we can have that argument tell I’m 60, I’m only 35. So, but that entire time we’re having that argument, we’re still going to be pumping oil. Right? What about the electric cars? Erik? It’s great. We don’t, they don’t just make gas out of petroleum. Never heard of petroleum jelly. You know the stuff you put on a face it’s also made out of petroleum, right? There are so many products that is used from, you know, oil that it’s it’s, we’re never going to stop using it. Right. It’s just never gonna stop. We’re gonna continuously use it, use it, use it, use it. If there were so scared about it, they wouldn’t be spending billions upon billions of dollars searching for more right now with that being said, wasn’t an expensive and not a data.

Yeah, it is. And when you, when you’re dealing with certain companies, right, when you’re dealing with the company, it is expensive. It’s risky. You don’t know because you’re getting management, right? You have management, you have people that are, are a greedy that, you know, that like to go fly a private jet a little bit too much, right. Or whatever, whatever it is, you know what I’m saying? Mismanagement of capital, mismanagement of management, whatever it is. Well remember we were talking about REITs real estate investment trust. Well through, excuse me, through this, that we’ve got something called an MLP master limited partnership. Right? So no longer are you just an owner of the company, like owner apart as be the owner of Exxon, you’re actually a partner in one of these companies right now, these companies, they’re not quite as much if you’re exploration and all that kind of stuff, that’s risky.

Now, if you hit like a lot of you hit like a lot of them, but there’s a lot of times that you don’t and you drill dry. Right. And then look at all that money you wasted. All right. Shareholder money, my and your money. Right. Well, with the MLP, they’re not really into the exploration stuff. They’re more into pipelines, refineries, tank farms, right? The more of the, the brick and mortar type of stuff. Right. The stuff that makes America move. Right. So what a MLP is, right? So in the oil business, you there’s different ways to get into it. I don’t want to confuse you too much. Cause it is, it can get a little confusing. Right? So winners, you have something called working interest, right? So you can invest, let’s say Exxon or Joe Small, is it jewel on the pipe drill in the home?

Right. Well, they don’t want to have all the money involved in it. Right. They only want to have a certain amount of money into it. And so they’re going to be like, look, Eric, give me X amount of dollars every month. And I’m going to give you X amount of working interest. Right. And then once we, once the, the, the oil starts popping out, all right, that working interests, whatever percentage is that we already came up with is how much of that oil that you’re going to be getting, right? How much money you’re going to be getting right as the very simplified version of it. But for lack of time and wanting to confuse you, that’s the easiest way to think about it. So a lot of these MLPs, they supply some working interest. Maybe a lot of these companies have done it a while ago.

So, I mean, I’m just explaining the basics of what it is. Right. But they’ve been doing it. They’d done it a while ago. So they like from, you know, the eighties, nineties, early two thousands. So they already have oil. That’s pumping out, they already have the client. And then in some of these we already have, or they already have the gas station to sell it to you. So we’re talking about, we don’t, we’re not trying to go look for the oil. You know, we’re not trying to do that. No, we’re, we’re investing in companies that already have an oil street. Right. They already have the wood, they already have a refinery. They already have the pipelines. They already have the storage facilities. They already have it. All right. So all we’re doing is buying a percentage of the partnership to start collecting royalty checks. That’s it, partnership, texts, dividend checks, whatever you want to call them. They’re all the same thing they’re paying you. You know, whatever you want to call it a coupon, you know what it is, all the same thing. It means that they give you money. Right now, let’s get into the, the company.

All right. Let’s break down into the company. M M P. So like always let’s check out the dividend yield. So on this, we’re making 6% on our money. Excuse me. It’s a $14 billion company. So, you know, don’t really too much worry about them going out of business anytime soon, they’re quite large. And what would these do with this company is it’s different than like a exploiting company, right? As you see, they have 9,700 mile refined products, pipeline system would have 53 terminals as well as 26 independent terminals, not to connect to the pipelines. I mean, they just, I mean, when you look at their, their map is just like, wow, right. They basically this entire region throughout the United States, the middle of America, they control, they got pipelines everywhere. So, I mean, it’s just an easy, steady flow of capital. They’re not ever going to stop paying. Right. And what I did just to show is

There we go, sorry,

Quick five years on the, on the dividends or I, and like clockwork pay. No problem. So when you put it like that, like just put it like this. So this is pretty much easy peasy. 6% of your money every three months. I mean, that’s, that’s beautiful. The next one, right? This one, we’re looking at a 10%

Yield

On our money right now. That’s that’s I mean, that’s, and it’s, it’s, it’s in a business that we all know, right. Or if, if you live on this part of the United States, you’ve heard of it. Right. Or if you, you like let’s see what what do they vary in NASCAR? Or if you ever heard of any of these brands right here, then you know what I’m talking about? You talking about Sunoco right there. They have they’re in everything they’re in. I mean, they’re not quite as much in the pipeline business, but we’re going to get into, into their like big picture here in just a second, the next company. But the reason I say invest in this one, just because they give such great return on the investment and it’s, it’s a recognizable company. And as we can see, they’re not going out of business anytime soon, as long as people are filling up gas stations or going to convenience stores, buying snacks, getting gas diesel, then you know, this is it’s NASCAR Indy 500 or Indy car.

And H R a don’t know what that is, but I’m sure most of you guys do out there. So that, I mean, it’s just guaranteed. It’s, it’s, they’re an entertainment. They’re in necessities, they’re in snacks there and everything. And then look at all these different gas stations that they also supply, right? The oil gasoline to now the big boy, right. Which basically trumps both of these companies is this one and entity transfer. They don’t quite pay quite as much Sunoco, but let’s look right here. They’re invested in Sunoco, right? So they’re large investor of Sonoco. So when you’re buying this company, you’re not only are you going to get 10% of your money on Sonoco, which they’ve been paying for quite some time. So you’re getting on the retail and everything, but you’re also getting it on a much larger infrastructure. Right? huge, huge company. You’re getting it on this right. At $33 billion company. And they’ve been paying consistently. No problem. And then when you look at their infrastructure, they’re kinda like let’s go back and I’ll show you. They’re kinda like them right here, MMP. Right.

But they have a lot more in Northeast. Right. You can’t the, I don’t know. Let me see if I can get this smaller so you can see. No. All right. Well, all right. Well, these are energy transfer assets, right? You can’t like, I can’t scroll down anymore. Right. But you’ll get these notes. So you’ll be able to see what I’m talking about, but these are mostly just like different assets that they have little squares where the terminals and these are pipelines, right. So they got your pipeline out of Montana. They got out of, out of basically all these States right here, going in California, all a whole bunch of just infrastructure to continuously generate capital. Right. And then, you know what Obama did and few year, years ago now is allowed us to export our oil. So these companies right here that are already have a foothold in the pipeline industry, the retail, and you know what I’m saying?

The natural gas, I’m the different type of like ammonia pipelines, all different types of gases. Petroleums, they’re set up perfectly to continuously pay over and over and over again. So like with these three companies, this one is quite, it’s expensive, but you’re going to make a decent return on your money. This one’s a little bit cheaper making a decent return on your money. And then the behemoth it’s even cheaper. And you’re, I mean, it all depends on where your money comes in. That’s, that’s another reason I gave you three different opportunities, but how cool is that to be able to invest with the oil. And it’s not, as in investing with with exploratory company, right. Where it’s very risky. You’re already at you’re investing in companies that are, well-established already having like their income coming in. They’ve already been paying dividends. It’s very obvious. They’ve been paying dividends. You can look it up and they pay you a great return on your money just to sit and have ownership and be, or being a partner.

I then training here today. We’re gonna talk about something that’s guaranteed by law helps us out Right now. They’re not as sexy as stock. So people don’t really talk about them, right? If you’re not going to get a huge game, you’re not turning $5 into 5 million, right? That’s what everyone wants to sell on the stock market, whether it happens or not, maybe it does, maybe it doesn’t, but that’s not what we’re talking about. We’re talking about the other world. The bond world now was thought, people don’t really tell you is this. If the stock goes under the government forces the company to pay the bonds, first, the bonds are alone. The stock means that you own part of the company, right? So, you know, you have to pay your debt first. So what bond, what a bond is basically is you’re loaning money out, right? So in any, like do your own research on bonds, they’re a great way you got municipal bonds. That’s even greater.

Maybe I’ll teach a class on municipal bonds later. Those are they’ll. They, they get, I mean, they pay much, much higher than regular government bonds and the, you know, we call them munies. But what we’re talking about right now, we’re talking about corporate bonds and even more precise, we’re talking about corporate bonds with companies that are known companies, but kind of had a rough patch. Right. And with this particular company, right. It’s not a company, it’s a fund, right. It’s kind of like a, like a reap, but it’s not, it’s more of like just a fun. Alright. And on this one, what it, what it does is, I mean, it’s, it’s called angel it’s the fund families then act. Right. And I guess you don’t really need to see this screen on this one because it’s, it’s kind of basic. Now what it does is established companies that fell on hard times and a hire properly for the companies to be upgraded, which means, right.

So if a company went down here, like, okay, the issue, the bonds right here, the companies down here, right. This company buys the bonds when they’re down here where, when they’re not sexy. Right. And in hopes that the bond will be, or that the world, well, in, in upgrade the company, which will bring the company back up to where it started. Right. So if the bond, if the company goes right back where it started, then that bond becomes sexy again. Right? So you profit from the bond being worth more, you know what I’m saying? Supply and demand. Right? So when it amine and when the is higher for something, and there’s still a finite supply of them, that the price goes higher, right. When there’s demand is here, no one really wants them. And that’s where it’s called the angel. Right. It’s kind of like the grand slam, but it’s a good way to profit. Plus we’re still collecting the coupon, the dividend, right. We’ll just keep it as dividend. It’s not called a difference, but for lack of confusing, everybody, we’ll just call it the dividends. Right. So we’re still collecting the dividend and on this particular one, well, I guess you do need to switch over, all right, let me switch over.

Oh, I didn’t even start recording this. That sucks. All right. So on this, let me go ahead and you know what I mean? This is what I’m do. I’m going to talk and then I’ll just have a picture open on my face.

So right here, as you can see it, the market cap of this company is 1.3 billion, which not the largest company, not the smallest, not going anywhere for awhile. Doubt it. Over the last five years, it’s stayed pretty much in the same range. It’s not one of those companies we’re trying to get rich off. Like I said, it’s not, we’re not retiring off of this grand slam. It’s not right where it’s not going to be the next Apple where you invest a thousand dollars. And in 10 years, it’s worth a hundred thousand. No, it’s not going to, that’s not what we’re, that’s not what this is about. This is about making 5% on your investment monthly, right? They give you a dividend once a month, right? So every month you’re getting your money, right? And every month, so rain or shine, no, you get on every share that you have right now, it’s $30 a share and you’re getting 13 cents a share.

So if you own for 200 or for $300, you’re making a dollar and 30 cents every month just coming right back to every single month. Now on a different class, your, I will talk about drip, right? Which for stuff like this, it’s, it’d be perfect, right? Because it’s a low cost investment, but yet you’re going to get a monthly monthly month. Right. And that’s, that’s what we want. Right. We’re trying to build different small assets that we can, you know, add to small, add to slowly but surely that by then, we’re, it’s going to be a large asset. It’s going to be worth a lot of money, right? Cause if we were to do this for 10 years and just collected 13 cents a month, or I’m sorry, the 13 cents per share per month, every single month, we’re doing pretty good. So that’s at least that, that we’re making a minimum of a dollar per share that we own a year. Doesn’t sound like a lot, but let’s, let’s do the math. It’s only $30 stock. We’re making a dollar, dollar and 30 cents a year, minimum per stock that we have $30, 10 years. For what? $13. We’re almost made half our money back by doing absolutely nothing in 10 years.

See what I’m saying? That’s that’s, that’s what I’m talking about. That’s and that’s off of one share. Now, if we have, you know, we continuously put money in there, then we’re going to have our money back and on the next, the next one of the programs, I don’t know exactly what number this is, but we’ve, I don’t know if you took drip before a drip after, but after or before, you’re going to learn what to do with that dividend, how to grow larger and larger and larger and larger. Now, once again, to save a nation, you have to start with education. So, you know, save a nation, start with education. That’s what we’re all about here is giving you a quick little lessons on how to change a life for the future.

So with these companies, you’re going to gain income for life the same with all the other ones. But this is just a different, a different standpoint, a different, different viewpoint of where to put your money. Right. So, you know, we got a little bit of money in, in land. We got a little bit of money in, in the cannabis sector. Right. We got, I don’t know exactly where you guys are. This is the fourth video. So I don’t want to interrupt you on all the other great things that you’re going to learn. So, you know, we’ve got the federal reserve, we got the interest rates, we got land, we got marijuana. Now we got great companies. Now in this sector, we’re more, we’re kind of talking about companies that own a real estate, right? Like not just like a house or we’re talking about big boy stuff, like huge office spaces, industrial buildings, you know what I mean?

Like the big boys stuff, the commercial stuff. And what’s so great about this is president Eisenhower, you know, long, long time ago, he, he came out with this thing that said, companies, you don’t have to pay us as long as you pay 90% of your profits to shareholders. Right. So when it’s a public company, it’s not my company, not your company. And you don’t really care, you know, because you’re getting an income, right. Well then it’s just advantageous for you to get all the money out after you pay. So you don’t have to give it to uncle Sam. Right. And that’s what the president set up years ago. And so what did these, these companies do? And what’s great is cause they collect rent, right? So every month they’re collecting, collecting, like, like they pay their bills and then they pay you, right. They skip uncle Sam.

Well, you know, they try to skip as much as uncle Sam as possible. Cause that’s why they’re giving you so much of the money. Right. You’re giving it all to you. You know, besides the, the, the upkeep, the, you know, the, the maintenance, the, all that other kind of good stuff, all the profits, 90%, they’re distributed, distributing it to me and you, the shareholder. How cool is that? Now let’s get into that. Companies are, let’s take it away from great names to bring great income. First, we’re talking about Boston, as you see, got a decent level of yield devotee, Neil, 2.8% of your money, kinda expensive, $135.

But as you can see over the last five years is pretty consistent. So it’s a nice place to hold your mind. Excuse me. So with this so this company, I mean, as we’ll see in just a second, it holds a lot of different, different, real estates and a lot of different, different cities. So it has like, as it says, right here, 160 office properties 400, 4 million net rentable square feet, excuse me, as of last year. So we’re talking about like a decent size company and major cities, Boston, New York, San Francisco, and DC. So let’s, let’s take a look at about what, what they have over it.

So here’s a breakdown on where most of our properties are. Obviously there it’s mostly DZ or in Boston as in the company, Boston, the VXP as we see, I mean, it kind of just this one, this doesn’t really tell you much, but all right. So here we go in Boston, they, it shows that 96% occupancy. So look at that, they’re pretty occupied it’s square footage, 14 million square feet and 48 different properties in the Boston area,

Los Angeles area, 27 different properties, New York, 25 different properties. They’re a little bit the is down a little bit in New York, but you know, still in the 90 percentile. So that means that they’re 90% rented out. And if you look over here, they have like decent amount. So you know that it’s only going to get more expensive than these places, especially like San Francisco. They’re a little bit, they’re down a little bit, but again, look, Silicon Valley, we all heard of Silicon Valley, 12% is in Silicon Valley. Then we go to DC for the last one, 89%, you know, they could work on that, but they still have 44 different properties there. And they’re not just in DC, they’re in like Maryland as well. But like that’s a decent property to just hold your money because, you know, especially in these key cities, it’s not like the, the economy is going to stop.

I mean, if it was in Omaha, Nebraska, that that gives a little bit of concern, but we’re talking about DC, New York, San Francisco and Boston, excuse me, we’re talking about like the major cities in the United States. So it’s like I said, it’s a decent place to hold, hold some capital for the long haul. Again, we’re not talking about the next week. We’re not talking about the next year. We’re talking like 10 years, right. Something to hold money that we can pass on to our kids or I, or our grandkids, or a great, great grandkids, something we’re just want to hold and continue to profit off of from now until forever. Right. That’s the main strategy with, with, with, with this whole program. Now, the next one I was looking at, or that I’m recommending is this one it’s mostly down in Southern California.

Right. But the reason why I, I liked this is just the scale that they have right. On the California coastline and what they do, you know, they, they mostly, it’s mostly industrial and like a lot of different shipping to stuff. So like all in Southern California coastline like that, like this is a big pork right here, like the Los Angeles port Los Angeles. So just to have that much exposure and that many, those, that many buildings down in that area is just, I mean, to me, it’s great. I mean, unless California is breaking off into its own country, pretty soon, it sound like a pretty brief, decent investment. They don’t give you very much. But then look at the growth that they’ve had over the last five years. Like this is pretty 68 or the, excuse me, substantial growth. And it doesn’t really look like it’s going to kind of stop, right?

So over the 52 routes yet, well, the $28, but that was like more with like the entire stock market. So this is a huge run and just this year, right. And, you know, obviously wait for a little bit to get in, get in, in a good time. Don’t just buy automatically. But, you know, get in little by little and hold on for a while, like right here, again, 213 properties in approximately 26 million square foot square feet. That is extremely large, right. That is a lot of square footage in the Southern California area. Right. That’s why this one right here. And let’s not forget that because it is one of these lovely, great names, big, great income it’s they pay out majority of their money. So the more money they make in the future, once they stop expanding the more money that they have to give out to you guys right.

In the future. Now let’s go to the last one, which is core. As we see this, I mean, it’s already a pretty big company. It’s a $4.1 billion company. It’s like this someone’s a little bit more difficult to explain. All right. So there, there are data centers, right? So all they like trying to figure, like I try to find the easiest way to explain it. And the more I read and the more I got to try to explain it easily, the harder it was, right. The more I learned, the harder it is to explain it like the easiest way. So in other words, this has put it like this all the servers, right. And then let’s say

Thinkers win, right? Any major program that’s running, let’s say, or a Google, I don’t know, Google. Doesn’t probably not will Amazon or Amazon cloud. They work with Amazon cloud based or whatever, the Amazon cloud thing. So they do work with, I think they also were Microsoft. I’m not quite sure. They’re just, they basically just rent out space or servers. Right. So, I mean, it’s a great business. It’s, it’s, it’s a business. That’s not going to go anywhere because the, the more, the more we’re in this business, the more we’re in the more we expand into the future, the more computers, the more data we store with, the more, I mean, it’s just getting bigger and bigger and bigger. And the opportunity for a company like this is just, I mean, it’s unlimited. They already pay a decent amount or 0.4% of your money.

So just put it like this. Every, every year you’re making 4% of your money on a business that is almost guaranteed going to be around for quite some time, by let me show you exactly where they have their centers, just to kind of, it doesn’t go down very much. Okay. Well, I’ll let me hold it right here. So I don’t know what I did. I will hold it right here. So you can kind of see the bottom part. Last one says Silicon Valley, right? So they’re basically in every major city, Boston, Chicago, Denver, Los Angeles, Miami, New York, Northern Virginia, and then down here with Silicon Valley, right? So they’re throughout the United States. They already deal with, with with well-known companies. And it’s basically like a cash cow. They’re renting out these like basically core site facilities, design construct using industry best practices, but currently operate 21 data centers across eight us markets. So that’s 21 different centers that are, they’re only going to expand. You don’t need that big of a workforce because they’re just computers. So it’s basically, they’re printing cash and they’re giving you a whopping 4.4% of it. Right? So let’s, let’s think Eisenhower for his tax breaks and let’s invest in.

Good morning today. We’re going to discuss how to get paid from the federal reserve we want to do with this is I know over the last, what, since 2008, the market’s gone straight up. Right. And if you had basically invested in anything, you’d be great. Right? That’s part of the reason why we’re having this whole video is because me and my grandma missed out on it and 10 years later, we’re not millionaires. Right? So now I want to, I’ve been talking to her and explaining to her like, look, we got to change something. So the next 10 years, we’re not looking back and like, man, we missed it again. Right. Excuse me, excuse me again. So now that the market’s on all time highs like yesterday was Thursday, December 19th, and it hit another all time high. Right? Well, what’s happening also is the federal reserve, right?

Changes its rates. Sometimes it’s cheap money. Sometimes it’s expensive money. Right? I go more into this later on, but what, what this income strategy is based off of is based off of investing in one, one security, right? It’s kind like it’s a mutual fund kind of more or less, for lack of better words, it’s a fund, right? Not a mutual fund, it’s a fund. And what it does is it invest in bonds, right? Earn like basically the federal reserve bonds and it’s a free floating rate bonds. So what it does is when the government increases interest rates, right? Well, it has money set on the side, right. To capitalize on that. So it’s always adjusting, right. I’m not good enough to be able to do that. And I’m pretty sure you’re not good enough to be able to do that either. So there’s, they got professionals in the background.

I just think it’s because they’re in cash majority of the time, like 80% or something like that. And then they adjusted around. Right. So all right. Well, to break, I mean, the way that they explain it is a little bit more confusing. So it invest in the bond and it does a futures, right? So through the futures that hedges itself even more right. Cause the futures are more liquid. All right. Don’t need to go into that. What, how does it help you? They pay you once a month, right? It’s not, it’s not that they’re not paying you millions of dollars every month. Right. But they’re paying you a small stipend every month. I mean, it’s not, you’re not getting rich off of it, right. It’s a one 12 or 1.2, 5% per month. Right. But if you continuously get that, then you’re making a decent amount of money yearly, especially if you compound it, like, we’ll talk about drip later on and you ran best that money back into the fund, but that’s in a different strategy right now.

We’re just solely just talking about how do we hedge ourselves against the inflation or not inflation, excuse me, the interest rates going up, going down and going all the way around. It’s confusing. You don’t know how much, how expensive money is to let the professionals do it for you and gain a nice little, little bit of money every single month off of your investment. Cause that’s basically what we’re trying to do. That’s the basis of everything is to set ourselves up for the future. Now with further ado, let’s get into the explanation of the federal reserve, kind of how it came about and there, all right, to understand the federal reserve need to understand this person right here, J P Morgan and the importance on why we created the federal reserve. Now a lot of people can have their federal reserve. Is this private dadadadada that child’s own this and own that.

And you know, you can go down that path and, and, you know, have fun, but there was a reason why United States created. And the reason has a lot to do with this person right here, JP Morgan. I know we, we, you know, the bank, right? JP Morgan, right? Well, the person that created the bank is this is this person right here. Now there was more reasons than just this, but part of the real reasons why we created the federal reserve system is because what happened in 1895, right? The United States had gone through a couple of years, depression and I happened have heard, you know, the civil war, as I says right here they’ve read a, he rested the United States first in 1895. Right? So what he did was after the civil war, there was a, like the, like I said, the boom on railroads that triggered a series of bank failures in a run-on goal.

So what happened is at that point in time, you know, we were the country for runoff of gold and domination of gold. And you went into the bank with some gold, the gold, the banks gave you some, some, some like paper money or whatever. And you know, I, I don’t want to get into the banking system too much because that’s not what I’m discussing right now, but to make, to it, to explain it easily. Right. And short that’s kind of what happened. Right. So what happened in 1895 is when we started going in the second year of a depression, people started wanting to get their gold back. Right. They didn’t want the paper money, they wanted the gold. Right. And so they went to their banks, they went everywhere and they started to go on bankrupts. Right. Kind of, kind of like in the great depression that we know, but a little bit different.

Cause it was, it was a little bit, it was before the central bank. It was before all that. So it was, it was just it was, it’s the same thing that we know today in 2008 route the banking crisis. But imagine what, a hundred years ago before technology and things. And so it was, it was a lot scarier and a lot more uncertain. So what JP Morgan did is he basically guaranteed the money. And then we started buying a lot of gold from overseas and replacing the gold back into the United States so that the United States wouldn’t fumble. Right. As, I mean, get into more detail, but that’s, that’s like the basis, the easiest way to explain it. Right. So he was basically the bank of the United States. Right. So when we think of today, we think of the federal reserve, okay. We need a new budget, right.

A new military budget, new education budget. We go talk to the federal reserve and the federal reserves like, okay, well we’ll give you this. Right. So back in those days, we didn’t have that. So we also didn’t have very many people that knew or knew or could solve the problem. JP Morgan was a banker was used to solving problems. So that’s what he did for the United States in 1895 is he basically saved the economy the first time right now, not too many years later in 1907. Right. So we’re talking what 12 years, 12, you know, give or take started, starts, you know, cause everything’s not on a precise moment, 12, 15 years, which makes sense. You know, cause that’s when you know, every 12, 15 years we have a kind of a downfall, you know, as a business cycle. Right.

Okay.

Well, eight give or take whatever, eight to 10 years, eight to 15 years, whatever. So in this one, what happened was, you know, we did the same. This is more like, it’s the easier way to explain this as is the housing crisis because we all understand, well, for the most part, we, we understand that it’s a little older for some of the younger kids or someone younger people, but for the most part, we, what happened. Well kind of understand what happened. All right. So what happened is, is this company down here in Tennessee, coal, iron, and railroad, all right, you can read it. It’s it’s

Well on Wikipedia and you can, you can look and you can read it yourself. But for the most part, let me just summarize what happened. So just like in the housing crisis, people are like, no, what? I don’t have any money, but this house is going to go up. I’ve seen so many people get rich. I’m just gonna buy this house. Even though I know I can’t afford it. And in a year I’m going to sell it for a huge profit. All right. That is an amazing strategy until it doesn’t work. Right. When it works, you’re a genius. You get rich in a year, you know, your life changes. But when it doesn’t work, you compound a negative situation. All right. So that’s kind of what this company did. All right. So they pledged $6 million of olden time money, which is a lot of money now on base to, you know, $6 million.

That’s I did like a hundred or a million and it was like 23 million. So what, six times 23, we’re looking at over a hundred, hundred million. And when you’re thinking of the, the GDP back then, that is in the staggering amount of money. Right? So they borrowed a lot of money from banks that they didn’t have. They gave them a piece of paper saying basically promissory note, right? A piece of stock saying, look, this is going to be worth as much money, but then the banks wanted their money back. Right. And when they wanted the money back from Tennessee coal, iron and railroad company, they didn’t have it. Right. Kind of like when people bought houses, they couldn’t afford. And when the balloon payment went up from a thousand dollars a month to $8,000 a month, they didn’t have it. Right. So they had to read Nick.

Well, when you borrow, when you bend known money to somebody, you know, you, you lend a little bit more than you, you know, you should, right. You have 10 friends and your loan money to each and every one of them right now, they’re your friends. They’re supposed to pay you back. But when they don’t all right. And what happens to you, then you put yourself in a horrible situation, especially when you have bills, right? So things can get turned off because of the debt of other people, right. Their credit worthiness. Wasn’t very good. So, you know, that’s what happened in second time, Mr. JP Morgan has to come back and basically buy out the railroad. The 10 minutes is TLC buy everything out in order, because we knew that it, some banks started to fail and other ones would bail and there’d be another run on banks, another panic.

Right. So they had to stop this. So I mean antitrust and it to make it simple, right. I can get much more into it, but I’m trying to make it as simple as possible so everyone can follow me. What happened at JP Morgan had to come in for a second time and bail out the United States before it basically crumbled itself right after they did it for the second time, the United States realized that no one person can have that much power. Right. JP Morgan was visiting the most powerful person in the United States at the time because he controlled the money. Right. He controlled the banks. He can basically control the stock market. He, I mean, he was the done data of that era, right? When it comes to banking and understanding finance, right. It wasn’t the richest person, as, as Rockefeller said, you know, died a poor man, right?

I mean, we’re talking hundreds of millions of dollars and, and Rockefeller’s like go to bad and guide a poor man. Right? So this man was very wealthy. Wasn’t the most wealthiest of the time, but was very influential on the banking system. So after the two times that one person had to save the United States, the United States was like, never again, never again, can we depend on just one person? So that’s like right here by Senator Nelson, Albridge decided never again. And that’s what they created the federal reserve, right. To be able to have an entity, which isn’t government, right. It’s its own separate entity. So it’s kinda like JP Morgan, but was a group of money, right? It’s not just one person. It’s a group of different banks throughout the United States that all talk together and discuss in union. Right. And unison about banking system.

Like, do we need the money supply? Do we need to raise interest rates to make an let’s go down here? Money is cheap. If you ever heard that, that means that the interest rates are low, so you can borrow money for cheaper. Right? So the federal reserve, like the easiest way to think of it, all right, you go to a bank, right? Cash checks, do everything, you know, get alone, all that kind of good stuff, whatever we go to the bank for. Well, the bank has the federal reserve to do that. Right. So again, I don’t want to go too far into it. It’ll take way too long to explain. And it’s not the class for this. It’s really just talking about float, right. About getting in and being able to buy it. So I just wanted to give you a little bit of insight on what the interest rates and the federal reserve.

Right? So when they raise interest rates and they make money expensive, right. To go for other people to borrow you capitalize on, right. If we all heard over the years, basically since 2008, the interest rates have been nothing. Right? If you look back in the eighties, the interest rates were extremely high, right? Then we come into now, interest rates are low. If you go to look at Japan, I don’t know if it’s still that way, but it’s a negative interest rate. So if you were to hold money in the bank, actually lose money. Right. They brought it. The part of the reason they do that is because they’re trying to stimulate, spending right. Spending. Because if there’s no incentive to save, then what do you do? You spend it right. Different class. I’m important right here. But what they’re doing is win. And that’s like, it’s applying a man contracting retract and the, the economy.

But again, what float does this right here. See, I mean, the intro, you don’t make very much money. Right. But you’ve also looked in the last five years. It hasn’t really gone anywhere. Right. So it’s, it’s, it’s not a get rich quick scheme by any means. It really, truly is hedging against the world and hedging against interest rates. Right? Hope you learn a little bit about JP Morgan providing didn’t go too far into history and go and confuse you too much about what’s happening back in the day. But yeah, that’s kind of why the federal reserve was created and to get part, to be a part of, you know, that the hemoglobin that giant and get paid from that grand idea, this is a great, great way to invest in it. And can continuously just gain a small little interest interest off of your money. And like I said, when they make money more expensive, you’ll get paid more. Right. That’s the whole thing.