This Week in Finance News! // Fed Rate Hike, Russia/Ukraine Affects Fuel, Supply Chain, Home Repairs

Today is our first podcast-style news roundup! Garrett and I cover a number of topics that have come up in the last week.

Well this is the first kind of live stream we were gonna actually do this live and uh we had some technical difficulties so we’re doing it as a premiere tonight five and a half live and a half um so this is garrett uh he’s been on the channel before uh i interviewed him and his wife about their process of paying off their house early i mean you’re only 26 26 yeah

And you paid it off when you were 25 yep okay so i um wanted to have him on here so that we could start doing some of these live streams where the goal of the live stream is kind of to take more of the um news aspect of finance and make it digestible for people to really understand and i kind of i just wanted to make it so that you can take what’s going on in

The world and and put it in context so that people understand how these things are going to actually affect their personal finances so that’s the goal uh but we have to make a quick disclaimer because neither of us are personal or financial advisors and this is entirely just for your entertainment and digestion mostly entertainment yeah mostly entertaining

So we’ll see how it goes um ohio state is not a sponsor but i am an alumni from there and what i have in here is actually not water it’s maple sap which is just like water with uh with it’s like sugar water basically yeah but my dad and i are working on boiling down maple sap into some maple sugar maple sugar maple syrup just for the heck of it to see if we can

Turn it into a side income and it’s actually really good i don’t think you’ve tried it i’ve had it before but see you had me because i thought it was water so yeah well what’s crazy is it looks super clear you would think that it was darker than that but it definitely gets darker it could have been some of that black market russian vodka yeah i knew maybe all

Right so speaking of russia that’s our first topic on my list and that’s because obviously with all the russian and ukraine stuff going on this is we’re talking about this completely aside from the aspect of human life and all the issues going on there um but it does have an impact on the economy just not just in the united states but across the whole world

And one of those is in fuel and this is something that i found was really interesting i had no idea but apparently in 2021 russia accounted for 21 of the us gasoline imports did you have any idea was that high no i didn’t and i guess uh i guess actually in in um researching i was kind of surprised how actually spread out it is against other countries yeah but i

Yeah i was definitely surprised that russia was number one on the list yeah i was too because i’ve always thought that like most of well up until a couple years ago when a lot of our fuel was actually coming from the united states i was thinking that most of it was coming from the middle east yeah so yeah same here and then also canada you know i’ve always heard

Canada and they were number two but just that they weren’t number one i ca i guess kind of surprised me yeah it kind of reminded me of um when i was doing some research into national debt for one of the videos that was on the channel i found out that like china holds a lot of the united states national debt but it’s only a small portion of it like i don’t know

Everyone’s always talking about how china has so much of united states national debt and it’s kind of kind of like that with the fuel where it’s like really split up across a lot of different countries and and segments i guess so i thought that was interesting but unfortunately with everything associated with uh russia invading ukraine it looks like gas could

Really go up quite a bit i know one of these articles that i had pulled up from forbes was talking about how gasoline could hit an average of four dollars a gallon this spring yeah which is insane to think about because back in 2008 we took a vacation to canada and gas prices were all the way up to four dollars a gallon and like in canada we were paying over

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Five the equivalent of over five dollars a gallon and you know last year and this year you’re looking at california and they’re paying five dollars yeah or more per gallon so especially for someone like me who drives an hour every day like 100 miles that’s just one way drives 100 miles for the whole day to just get to and from work that is an insane amount

To be paying for fuel yeah and me and my wife travel a lot for pleasure and yeah we already had a discussion about how that might have to slow down a little bit yeah yes it’s just it’s crazy how how high that could get um another one of the articles that i pulled up was from cnbc talking about how the oil that’s the fun part about living on a busy road yeah

Probably yeah he’s like better burn the fuel while i still can yeah yeah um let’s talk about the oil prices and how the um the barrel price per for oil crossed a hundred dollars per barrel last week which i remember when it was when it got up to that point gosh it was probably at it was probably eight years ago maybe and it i don’t think it’s really been super

Close to that since then but so hopefully hopefully things cool down with the fuel prices but there are a lot of variables yeah so uh but the next one that i wanted to talk about is the fed raising rates which is probably going to happen let’s see so tomorrow’s the 1st of march it looks like they’re meeting on the 15th and 16th of march so that’s probably when

It’s gonna happen um but actually one of the videos that i am posting well the only video that i’m posting this week aside from this one is about the fed raising rates and um what i find is interesting is i think i don’t know how you’ve viewed the fed raising rates but i’ve always kind of seen it as like you know you’re trying to get the economy back on pace but

It kind of feels like a kick in the face yeah because it’s like you know people who are trying to get a house or car or anything like that that requires financing is suddenly that’s taking away from their bottom line you know yeah so like one of the things that i read about in my research for this video is about how obviously this hits the lower class the most

Because that’s the highest percentage of their income so um one of the articles that i was reading was saying that the elevated inflation has been driven by the supply chain disruptions and pent up consumer demand this is from cnbc and that’s been kind of where a lot of this inflation has been coming from so i thought it was interesting just doing the research

Into it how seeing that um the feds raising rates actually the goal is to decrease the amount of consumer demand because things are more expensive so it kind of slows down and hopefully that can help with the supply chain issue yeah which brings us to one of my articles which is uh the largest national or international logistics company uh was hacked eight days

Ago and they’re still offline right now and it’s uh according to them they are unable to uh i guess communicate with um customs like they usually do in in importing goods and also obviously just lining up you know trucks and that kind of thing and it’s all computerized today you know so yeah uh that could be interesting they they employ 15 000 workers and

They have 300 locations across the world so yeah more supply chain issues going on right now yeah when did you say that that that happened uh well it was a week ago yesterday so so they’ve been down for a week yes and um uh yeah in the article it was on the wall street journal okay uh the fbi agent that was talking to the journalists said that on average uh a

Hack lasts 24 to 48 hours so i don’t know what’s going on there and they’re not being very transparent in their article but it’s still offline yeah that’s that’s insane because you know obviously with the supply chain issues if you have i mean if if this company has any truckers who are available to work but they’re not able to work just because their system is

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Down that’s massive yeah and obviously it’s gonna hit everyone that those supplies in the supply chain would be going to whether it’s grocery stores or yeah anything i mean the thing about the supply chain is it just trickles down everything trickles down and it affects everyone yep so um i found this article was interesting this isn’t well this this has to do

More so with the markets being down because you know like uh i looked at my 401k late last week i know but i don’t care i’m like i’m i’m not retiring for you know a long time so yeah i’m i’m not too concerned about it it probably helps me a little bit more to kind of know where where i’m at for at least for the channel sake yeah but uh i looked at it late last

Week and it was like it was like eight percent down since the beginning of the year so that’s two months it’s been eight percent it’s eight percent down and that’s including the amount of money that i’ve put in every two weeks yeah so four contributions in that time and i’m still down eight percent which is massive yeah obviously so um i like this article from

Cnbc talking about the um the title is when market when markets go down investors need to focus on what they can control and i think that’s a good reminder for us because a lot of times we get all flustered about something like the market going down when in reality you know it happens but we just have to realize like there are some things that we can control

And there are some things that we can’t um and one of the things that this financial planner is saying is like just control on just focus on controlling things um like improving your credit score paying down debt putting away money into an emergency savings fund you know those are all things that you can control and sometimes that’s all you can do yeah and

When it comes to money there’s just so many variables and things that can go wrong just do what you can and move on yeah so uh let’s see so i’ve got one more what was i think you had another one right yeah that kind of goes back to the ukraine thing so yeah so yeah just with the ukraine thing it’s not just oil and fuel gas prices they also are the leading producer

Of palladium which is used in car batteries uh electric car batteries uh yeah so that kind of is you know i i guess a trap there it’s like well gas prices are going up well our battery prices in the electric cars going to go up also the maintenance and those so yeah that’s that’s another thing and even palladium is even in um exhaust systems in in your gas car

So yeah that’s another one to phone batteries also to an extent are these all needs though so that kind of goes to the yeah what can you control kind of thing you know if you need a new exhaust system on your car that’s one thing but you need a new phone you know if phone prices are jacking up maybe not yeah yeah and it’s it’s interesting that you mention the

Whole palladium thing because um in an actual conversation today one of my co-workers because we were talking about gas prices one of my co-workers uh was like you know what uh it’s kind of funny like when something like this happens with russia and and you’ve got gas prices going up you know it starts starts to make you think like maybe an electric car would

Be uh kind of nice and like i’m not gonna deny that sometimes an electric car really seems like it would be great especially when the gas prices are going up yeah but when you look at the bigger picture you can see oh this is actually affecting more than just gas prices it’s affecting the kinds of supplies and resources that we need for an electric car that’s

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That kind of changes your thinking a little bit so all right so the last one that i’ve got is uh an article it’s not so much about current news but it was published just recently titled 77 of home buyers face unexpected repair costs in the first year of ownership surveys fines here’s how to head off surprise expenses and um i did a video uh later last year

Where i was talking about three different large expenses that we had to pay for with our house since we bought the house this house was built in like 1830 so it’s very old and we went into it knowing that there was probably going to be some stuff that we had to fix because there’s a lot of stuff that we’re just trying to renovate and um one of the things that was

Unexpected was the furnace going out one was the plumbing needed to be re-run um outside because one of the trees damaged our sewer line and uh and then there was the roof the roof went bad and the the thing that i want people to take out of this is and you’ll testify to this because you’re a homeowner is things always cost more than we expected yeah and the

Issue with the way people think about buying a house especially right now with you know the housing market being so hot is you have to remember like it’s not necessarily cheaper to buy a house just because your mortgage payment is going to be less than your rental payment because you know three quarters of people deal with unexpected repair costs well if you’re

Like the majority of america and you don’t have an emergency fund that’s more than a thousand dollars you can’t take care of a 4 500 furnace or a 2 900 plumbing repair or a 15 000 roof you know but then you can just finance it right yeah exactly but the financing prices are gonna end up going up because the fed’s gonna be raising rates that’s right yeah yeah uh

Yeah the more overhead you have the bigger your you know emergency fund should ha should be so yeah don’t don’t get in your head that just because you’re buying a new house means it’s a new house it’s new to you most the time yeah so yeah yeah and um one of the things that i found it was just kind of something that came up in my head as i was preparing for this

Video for this coming week about the fed raising rates is a lot of people like you know you’ve got the housing market that’s really hot right now everything’s everything’s not that housing market’s hot purchasing vehicles is hot because you know all your used vehicles are way up because of the chip shortage yeah and that kind of thing well one of the points

That i’m making in this video is like hey just remember just because the fed’s going to be raising rates please don’t make any rash purchasing decisions and this fits in with the whole with the last article that we were talking about with purchasing a house because if you make a rash purchasing decision then there’s uh there’s a chance that you might regret it

Later yeah and i would almost always rather pay a little bit more for something that i know and am confident that i like and it’s gonna fit my needs and my budget than paying less for something that i’m just like quick gotta buy a house before the fed raises rates yeah yeah so all right well that’s the last bit of news that we want to cover today uh let’s see

March 28th march february 28th and uh we like to do this on a semi-regular basis but we’ll see how regular it really is but let us know in the comments down below what you think about some of these different articles what you find is interesting and whether i guess just if there’s any other articles or uh new stories that you came across in the past week that

You think is particularly relevant to personal finances got anything else keep on keeping on all right keep on keeping on grow that emergency fund yeah all right cheers

Transcribed from video
This Week in Finance News! // Fed Rate Hike, Russia/Ukraine Affects Fuel, Supply Chain, Home Repairs By Caleb BaleliveBroadcastDetails{isLiveNowfalsestartTimestamp2022-03-01T011511+0000endTimestamp2022-03-01T013654+0000}