[0:01]Hey, this is Ken at Capital Ventures and it's my job to get you past the SBA exam and all the other fines exam, but I'm trying to do the whole entire SEI in one big video. It's going to be two couple small ones and then I'll push them together and make one big one. I don't try to do this for all the tests. Um, you're going to cover everything. You won't see everything I talk about on the exam, but it should cover a lot of it and that should help you a little bit. Um, if you're bored and you need questions for me, obviously I do my membership stuff. But for the SEC every Tuesday night at 8:00 p.m. I do a live Q&A for free for anyone that's a subscriber. 8:00 p.m. is to me do an hour. It's a lot of fun. It's kind of a shit show. I celebrated people winning and I answer questions too. And you get to see what absolute kind of idiot I am on a weekly basis. Okay, let's get into it. So we're going to start with the SEC, the securities and exchange Commission. God, I couldn't think of the fucking word. And I list but you going to have to deal with it. I I talk funny. Okay, if you haven't seen my shit before, I in general. Okay. The SCC is basically the big boss of the security rope. Think of them like a referee at the next game. They're there to make sure everyone's playing fair, nobody's been the investors don't get screwed over. Their mission is all about protecting the normal people, grandma and grandpa from the shady Wall Street brokers and issues. They're going to make the markets run smooth as fuck, they're going to try to keep everything co-optic. So the SCC is a federal agency, meaning it's run by the government. They regulate all the stock exchange breaking dealers, investor advisors and basically anyone messing around into securities arena. If you're raising money from the public or trading on a national exchange, the SEC is a power to say, "Hey buddy, show us your papers." Or we're slapping you the fine, or it's putting you in jail. And the nutshell, they've got the jurisdiction over anyone issuing or trading securities in the US. They set the rules, they enforce the rules, and if you break the rules, they can drag you into court. That's it in a nutshell. The SEC is the watchdog to keep the markets honest. If you remember that for the test, you're golden. Okay, now I'm going to tell about SRO's self-regulatory organizations, they might even say DEA, not the drug enforcement agency, designated examining authorities. Think of the SRO as a community watch group for security. They're not government agencies, but they still making enforcement rules for their members. The main idea keeps markets fair and honest without the government having to jump in for every little thing. In other words, the SROs keep the industry in check and protect investors, but making sure everybody follows a standard set of rules and if they don't, this kind of hell to pay. In the form of fine sinks are getting booted. Now, the jurisdiction of other SROs, the CBOE, the Chicago Board Options Exchange, that's the name an option trading. They set the rules for the options market, monitor activity and make sure nobody's rigging the system. Finra, these are the folks undergoing brokerage firms and their employees. They've got the power to disband brokers and post fines and keep the industry from turning into the West. You mess up under Finers Watch, you feel in your wallet, your license or both. Msb handles the rules for anyone dealing in the bond by used by states, cities, schools, districts. They write the rules, but they do not enforce them. Instead the SEC actually actually forces the MRB rule. All these SROs exist so the SEC doesn't have to be baby and every little fucking thing you do. They keep things running smoothly, keep investors safe and make sure there's a layer of oversight at every level. So when you when you're slinging unibonds or jumping into options, these are the watch dogs making sure nobody's playing dirty. So let's say who else is in this group? Who else is going to be a regulator? Let's get into this. These are regulators and agency. The Department of the Treasury, think of them as the US government's piggy bank managers. They're in charge of the nation's finances, handling everything from printing money to managing government debt. They also oversee the IRS, which is the evilest of evilest. They're IRS, they they're the tax people. They make sure everyone including your favorite Wall Street projects pay their fair share taxes, maybe not the Wall Street people. There's loopholes. You try to slip on by them, they'll be knocking on your door, faster than you can say, order. Now, let's talk about the state regulators, NASA, North American Securities Administration, not a fucking letter. This is the umbrella group for the state securities regulators. So, the NAFTA writes the rules for the USA for the states. And then state administrators regulate their own states. So, New Jersey has one, New York has one, IHA has one, Florida has one, California has one, Texas. They all have their own regulators and they can actually switch around. They can make their own rules within within an umbrella. So, the NAFTA writes this umbrella term. This big blue skylos and each second you know what? I'll take that, I'll take that one, I want this one. They don't have to do all the rules. They get to pick what they do. They have control in their own state. They have jurisdiction in their own state. Now, the federal reserve, the Fed, FBR. The Fed is like the economic puppet master. They control the money supply, send interest rates and try to keep the financial system stable. When they move rates up or down, the stock market either throws a party or freaks out. Their job is to keep inflation in check, keep employment healthy and basically keep our economy from going off a cliff. Now we have It's because like FDC. Remember, FDC is if the bank, if the bank goes bankrupt, bank bankrupt. You funny, you get up to 250 grand per account if it goes bankrupt, okay? Cick is 500 grand, but no more than 250 of its cash. So if your brokerage firm goes under, Cick steps in to cover you up to a certain limit, 500 grand. They're not protecting you if your stocks tank, that's on you in the market. But if your brokerage goes belly up and your assets are missing, Cick helps make you whole up to certain and those limits are 500 grand of securities of which 250 can be cash. Now if you have a margin account and a cash account that's one account. However, if you have an account, your wife has your husband has an account and you have a joint account that's three different accounts, 500 each. Now 1.5 million, 500 your account, 500 your wife or husband's account and 500 to join account. Max of 500. So you talked about the FEC, it's up the bank, goes up goes under, it's up to 250. The enter bank deposit if your bank You won't lose your life savings as long as you're within limit. That's why we don't have panicky runs in the banks like in the old days, like in the one to one flight.
[6:29]And there you have it a quick runoff of who's watching the money, who's collecting it, who's protecting it, and who's making sure the whole system doesn't explode. And if you like what you see so far, please hit a like, subscribe, hit the notification button so when my other shit shows up, see the like button, hit that, hit the notification bell so when I put up more shit, you can see it. Let's go, baby. Let's keep going. So let's about who's who in the financial zoo? Markets participants, investors, accredited, institutional retail, accredited, these are the high rollers, but at least folks the SEC consider sophisticated, could be big earners, people with certain net worth or institutions, they have access to certain investments that regular folks can touch like some hedge fund your private placements. Now, a credit investor always think 1, 2, 3 accredited, 1 million net worth, 200 salary or three single or 300 miserable. I mean married. 1, 2, 3 accredited. Okay? Also, if you have the series 7, the 65 or the 82, you are considered credited and you can buy in private placements and certain heads. We'll get into that later.
[7:54]Dummy of institutional, picture like pension funds, insurance companies, mutual funds, banks, broker dealers, big organizations investing in behalf of other people. They usually have more money and control their weight around in the market. Then we have retail that you and me, well not us anymore, we're in the thing. But me, your neighbor, grandma, grandpa, any individual investing in money. Well, we're out of buying a few hours of Apple or trying to look at game stop, but it's still important.
[8:31]They have retail, that's like normal people. That's grandma, grandpa, your neighbor, everyone. They're investing their own money. We're buying a few shares of Apple, buying stuff, little stuff. Small, smaller scale, but important. Now you're broker dealers. We have introducing broker dealers, clearing broker dealers, prime brokers, they're all kind of like a little different. But the broker dealers are firms that kind of execute transactions for their customers or themselves. So introducing the Brodills, they're kind of like the front desk, they take your trades, pass them along, but they don't actually do the heavy lifting, heavy lifting of settling and clearing trades. They're the face you see but some someone else handles the behind the scenes paperwork, who they use a clearing broker. These are the broker dealers that handle the back office stuff. They confirm the trades, make sure you get your shares, settle the money, all that stuff. So, introducing broker dealer is a small firm like maybe a few people, maybe it could be 50 people, but they don't have enough ban with their money or whatever it is to clear and settle trades. So they bring in a clearing broker who will do that for you who do that for them and they pay them a fee. Now we're prime broker. They typically serve big institutional client-based offering a bunch of services like execution, clearing, lending and helping with short sales and stuff. They're the big fancy all-in-one shops for sophisticated investors. They really are like the big shops that they JP Morgan, the Perz. So I'm a hedge fund and I have to do and I have a bunch of broker dealers I want to deal with I may not want to move money around all the time. So I put it all with the prime broker and as I actually I say my prime broker is JP Morgan, right? All my money in shares are with JP Morgan. If I want to do a trade with DJ and how, I do the trade with DJ and how, but DJ and how, let's JP Morgan know, hey, 10 bought or the hedge fund bought $5,000 with the BYB, they will send 5,000 shares to DJ and how to to settle the trade with the other person. If they sold shares, they'll say we need 5 grand, then JP Morgan and uh that we need shares, JP Morgan will send the shares to D.C. Dow and how so they can settle. So the JP the the the Prime Broker works for the big institution clients, hedge funds and stuff, holding all their stuff and allowing them to execute through various places, but they're like a guesthouse for that stuff. Okay? Now investment advisors, they give advice. Remember, ABC, advice as basis for compensation. Usually they take a fee like a percentage of the assets, maybe a flat fee. They're bound by fiduciary duty which means they got to act in the client's best interest not their own, which seems like it should be normal. So again, investment advisors are firms that give advice or manage money for a fee, whether it's a performance based fee or an annual assets under management fee or flat fee, whatever it is. They are not broker deals, they cannot execute. So if an investor advisor gets an order, they have to give it to a broker dealer to execute. Now, munity advisors, think of them as a go-to for state, cities or school districts that want to issue bonds. They by guidance and how to structured the deal, what interest to go for, when to hit the market and so on. ers and underwriters. Now ers, they're companies or governments that need cash. Decide to raise it by sung suck. So if I went if I decided to bring my Tucker company go public, I would sell shares or bonds of my company and an underwriter would help me do it. So like Apple issuing shares, New York City issuing bonds, catch Tucker issuing shares or bonds, those are ers. Now the underwriters, they are broker dealers that help issuers bring those stock bond to the market. They they may buy the securities from the insurance and then sell them to the market. They may form a syndicate of other brokers to make it if it's a bigger deal so they can help each other out and they make sure it launches go smoothly. So think about it. If I have if I'm in issue my share, I do like a $20 billion deal. And you're at JP Morgan and Morgan Stanley, you could probably do it on your own with it's a lot of risk. So what you'll do is you'll either buy my shares from me at like 18 bucks, create a syndicate of other brokers like Goldman and Schwab and Jeffreys and all that. And they will help you sell the the shares at 20 bucks and you make two bucks. Okay? So underwriters sometimes they'll buy the shares for me and then sell them. Other times, they will just take my shares and some in the market and what they call a best effort offering where they're going to do the best they can and any shares or bonds that aren't sold, they give back to me. So underwriters help me help issuers sell their shares. No traders. Anyone actively buying and selling securities could be for their own account as a proprietary account or for clients, agency trading or market maker. Market makers, these guys, they're going to be broken into all the time, commit to quoting both buy and sell prices in a particular stock, ensuring there's liquidity in the market. So market makers have rules. They have to be they're going to trade their own money, they're going to use own money to trade, they have to be there from 9:30 to 4:00, willing, standing ready to buy and sell at a price. So they actually have to have quotes from 9:30 a.m. to 4:00 p.m. all day in the various stocks they make markets. Okay? They are absolutely they're there to create liquidity in the market. So market makers buy and sell securities all day long using their own inventory or their own money and they charge mark ups or mark down. Custodians they hold on to the securities or money for safe keeping. Think of them like a security guard for the investment like banks and stuff like that. Trustees responsible for handling assets and a trust according to whatever the trust talk say. They have a producer duty to act in the best interest of the beneficiary. So remember a trust is using charge of a trust like If you used to set up a trust, you put money in it for your kids, you hire a trustee and you name your kids as the beneficiary. The trustee manages that trust for the beneficiary according to the rules of the trust. They must always put the the beneficiary needs or the trust needs ahead of their own. So if they have to do something for the trust or the beneficiary, that will cost them money, they kind of have to do it. Now they can pay themselves a little salary. Transfer agents, these keep track of who owns what in a corporation. They issue and cancel stock hand and name change and make sure the dividend get to the right person. They're basically the record keepers for a company shareholders.
[16:11]Now, the DTC and OC, the DTC, the depositary trust and clearing corporation, they handle the custody of securities electronically and make sure trade get settled. They're the ones to settle it. It's like the big clearing house that sits in the background and trying everything matches up. So basically all stocks are going to be DTC eligible, which means I always think of them as like a big warehouse and every broker dealer has a slot. And as you do a trade, the DTC has a big arm, reaches in, grabs the securities of the cash from one and puts it in the other and then it settles. That's what I think of it. I mean, it's not that clear, but it's this way I think of what it's clear in cooperation is. Now, the OCCE, it's a similar idea, but it's on the options. They act as a middle man for the option trades, guarantee the obligations of the option contracts so that you're not worried about the other guy bullying on the trade, they're you're rid of what they call counterparty risk. Now, so if I buy a call from you, they're not guaranteeing profit, they're guaranteeing execution. So, if I buy and a call from you, I bought the call from you, I gave you money, you sold the call to me. If I then exercise it, you if you have to sell me stock at a price, we'll get two later when we're oppositions. If you watch my videos on it, but you're obligated to sell stock to me when I exercise it. So if you just disappear, the OC will make sure that I get to buy my stock and then they will track your ass down. That OC, that's what they mean by guarantee performance. They don't mean guarantee or profit or loss. They guarantee that if you exercise, the contract will be filled.
[18:04]Okay, now we're going to jump about the different like markets. So we have the primary market which is regulated by the act to 33 which we'll get to. This is where new issues of securities get born. So every time an issue is sell shares whether they're brand new first time or second or third or fourth, but the issue gets the money, this is their primary market. Okay? So this is where companies or governments come to a cash, raise cash by selling shares or bonds to the public. They'll link up with an underwriter, help them set a price, line up buyers and essentially get the money rolling in. Once these shiny new shares are sold the first time, they're out in the wild, welcome to the secondary market. The secondary market is where previously issued securities get traded among investors. Think about like a use car lot for stocks and bonds, except for hopefully, it's a lot more regulated and less shady than some random car dealer. Within the secondary market, you have four markets, okay? So you have electronic where trades happen on a computerised system like Nasdaq and everything zipping around at the speed of Wi-Fi. me a physical. This is the old school shooting in the pit, hands that those type of trading floor, like the New York stock exchange. I love best place in the world. Now, so inside the second we have the first market which is exchanges. Nasdaq and the New York stock exchange are the first market. It's called listed. They have higher regulatory requirements, all that stuff. Then we have over the counter. This is a network of broker dealing trading directly with each other, not on a formal exchange. Think smaller or more thinly traded stocks. These are securities that are not big enough to trade on the exchanges. they don't have money, not enough market cap, whatever it is. They're not big enough to trade on the exchange. So it's a little more wild. This is like the pink sheets and OTCQX and OTCQB, they're not listed on the exchange. So it's a lot more risky. And if remember Penny stocks or stocks under five and trade over the counter. So if it trades down an exchange, it's not a penny stock. But if it's over the counter and it's under five bucks, it's a penny. Now, the third market, the third market is basically exchange list securities being traded over the counter. So if you've got a stock that's listed on the New York Stock Exchange and Nasdaq, but some broker broker dealer goes, yeah, let's do the trade off the exchange, maybe to get a better price or handle big shares. It's kind of a cross between the exchange and the over the counter world. So they will do this off the exchange. So again, say IBM's trading on the New York Stock Exchange. Goldman wants to buy directly from Morgan Stanley, they will do it on the third market off the exchange. You will still see the print on the tape, but it's not done on the exchange. Now, the fourth market, this is where the big guns, institutional investors trade securities directly with each other. Now, technically, it's not only for big institutions like ECNs, these are electronic communication networks. Anyone can really trade on these, but it's really built for institutions. Cuz remember something. If you are not a finre member, you cannot trade on the exchange or over the counter. So like a hedge fund is not a broker dealer, a bank, an insurance company or or a pension plan. They're they're not broker dealers so they can't trade on the exchanges. So they created the fourth market for them to trade with each other. Often through electronic networks called. No broken deal in the middle, just giant pulls of money cutting deals with each other to save on cost and keep things efficient. Think of big pension fund fund goes, hey, I got 200,000 FXYZ, you want them and then the buy and then the other side says yes. One market to issue primary, one to trade them. So that's they have the primary market is new issues, the secondary market is after trading that stuff.
[22:53]So now we're talking about fiscal versus monetary policy. Now, if you like what I'm doing, hit a like, share and subscribe And if you haven't subscribed, why the fuck not? Okay. So monetary policy, this is the fence playground. They messed with interest rates and the money supply to help keep the economy humming along. Think of it is controlling how faster slow the financial train runs. Think of it this way. So we have during expansion, we we raise rates and sell treasuries to the banks. That's the Fed doing not me, we. And then during contraction when the inflation is getting worse, they will buy treasuries in lower rates. So during expansion, they raise and sell during contraction they lower and buy. Now fiscal policy, this is all about the government's taxing and spending. Congress president, all that stuff. You know, Congress holds the purse, right? They decide if taxes go down and where the government spends their money. So if monetary policy is a throttling on the train, fiscal policy is a tracks. I'm kind of cynical with that. But so, they're going to raise taxes, if they want to slow it down, they could raise taxes and spend less money on infrastructure. And if they want to dole the economy they will lower taxes make it people pay less and build projects like highway projects, dam projects, rain to give people job. That's fiscal or otherwise known as Ki.
[24:41]So now, this is the thing. So Fed uses open market operations buying and selling government bonds to tweet the money supply. If the Fed buys bonds they're injecting cash into the system which will usually lower interest rates and encourages folks to spend and invest because banks need to lend their money. If the Fed sells bonds are pulling money out of circulation Raising interest rates, slowing down spending and teemming inflation. Essentially, the Fed like the thermostat in your apartment. If the economy is running too hot, inflation too high, they cool it down by selling bonds and raising rates. If the economy is freezing up, recession territory, they heat it up by buying bonds and lowering rates. So, interest rates are really what it's basically a broad term for cost of borrowing money. It can refer to all sorts of rates like what you're paying credit cards or mortgage. So, let's go through these. So, a prime rate, which is the bank with banks lender their best customers. That's the highest. Then the breaking loan caller caller caller call rate. That's for margin. That's what banks send to broker deal for margin. That's lower. Then we have the discount rate. It's the rate the Fed charges banks to borrow directly from the federal reserve. It's the official rate if the bank needs quick cash in the Fed window. So that's what they do. It's a discount rate and then we have the Fed funds rate. This is the rate that the banks charged to lend each other for overnight loans. Remember, the discount rate and the Fed funds are more like a bank has a reserve requirement where they have to have a certain amount of money in the bank at all times at the end of the day. If they're low, they have to get it. So they usually do it by borrowing if they borrow from the Fed that's at the discount it was just say here and if they borrow from the banks, it's here it's a Fed fund rate which is lower.
[26:50]Always think of the Fed fund is like a benchmark for other short rates. I think what they usually do is they're using so far now, which is the overnight length for the different countries. But right now we're going to use Fed fund rate as our base rate. Now, um, when you hear that the Federal Reserve is targeting the Fed fund rate, they're messing with open market operations and the discount rate because the Fed funds rate will always be about 50 basis points which is like half a percent below the discount rate. So if they move the discount right down, the Fed won't drop and if they move the discount right up, the Fed funds will go up. So that's the Federal Reserve and the shell. Messing with the economy, monetary policy to keep the economy for railing while fiscal policy is Congress deciding how to build and fund those train tracks and all that stuff. Okay. Now let's talk about business and economic factors. Purpose of financial statements. Balance sheet. This is like a snapshot of a company's finances at any given point in time. It shows what they own assets and what they owe liabilities and what's left for owners, shareholders equity. Think of it like checking your bank app to see if you're in the green or the red. Income statement. This one shows money in and out over a period. It details revenue, expenses, final that income profit or loss. If you ever attract your own monthly expenses versus salary, that's basically what the What he's doing? Well with the hell of more zeros. The business cycle. So we have contraction, start bad, right? When the economy starts slowing down, business is cut back on a pumping tip up, it's like that slimy stretch in the subway, I'd have to rush over. Things turn out and everyone's kind of on edge. The trout, this is rock bottom. The economy is darkest thing. Unemployment might be high, production is low, but hey, there's only way to go from here. up. expansion, the bounce back phase. Jobs are popping up, production picks up, consumer confidence. feels like that first Sunday day after the winter. Everyone's happy and spending money. Then we have the peak, the top of the roller coaster. The economy is running full steam, but watch out, things can't stay that hard forever. Next stop, another contraction. Now we have different kinds of indicators, leading, lagging and coincident. They're not going to make you remember all fucking 36 I promise you. But they will make you know what they are. So leading indicators, these hint at where the economy is headed. Think of things like building permits, stock performance, new orders. They're your early warning signs. Like your buddy saying, hey, the boss is in a bad mood. Watch out. Luring indicators, these confirm what we already did. Unemployment rates, corporate profits, after a quarter. They're the official scoreboard when the game's over. Now, coincidence not over here. coincidence, these move at the same pace of the economy right now. GDP, personal income, that's I checking the weather up for today's condition. Inflation, price is going up over a long time. A slice of pizza used to be a buck, now it's like three bucks. Unless you go to that recess pit. By the way, even the even the 99 cent pizza now is a dollar 25. Thank you, inflation. Okay. Now, basic effects on bonds and equity markets. cyclical stocks, these rise and fall with the economy's ups and downs. Think auto companies, airline hotels. When people have money to spend, these stocks go up, when they don't, they don't do well. Defensive stock, these are the companies selling stuff no matter what you need, utilities, consumer staples, healthcare. Um, what else? We have alcohol, tobacco, food. These are things that are you're going to need no matter what. So even if we hit a you're still brushing your teeth and flipping on the lights. Gross stocks, typically younger companies like innovative sectors that reinvest profits to grow like crazy. They may not pay dividends, but they're banking on getting bigger. That's the whole point. Investors expect a higher return, higher risk too, assuming they can deliver on the hype.
[31:49]Now, let's talk about economic theories. Kisin, I think he's a bad guy, but whatever. This theory says that the government jump in with spending or tax cut when the economy is struggling. Sort of like a life coach giving the economy a pack of. and some cash to get you back on track. Monitors, these folks believe that the Federal Reserve of monetary policy is the main driver of economic stability. Keep the money supply steady and predictable and the economy should behave itself. And that's your quick write down how we read a company's financial and where we're standing in the economic cycle. It's a little deeper. Remember, everything we do here, I'm doing this, you need to read the book. I can't say that enough. This is high level shit, Bull Point, Bull Point, Bull Point, Bull but my bullshit, my crappy Bull Point 2 fair style, but it does gives you an idea of what to look for so you have a bigger picture idea. I'm always about the big picture. I'm not about little details. It is a thing. That's why I do well in these exams because I don't worry about every little detail. I think big picture and I can usually figure this stuff out from there. So we're going to get this, baby. We're going to get this.
[33:24]Now let's talk about international economic factors. Okay. The US balance of payments. This is like the country's check book with the rest of the world. What we're spending versus what we're earning. It attracts all the flows of money in and out of the US. If we're buying more stuff than abroad from abroad, then we're selling and that's a deficit. So if we're exporting more than importing, that's a good thing. If we're importing more than we're getting in, that's a deficit. So understand. If we're exporting, that means we're selling our stuff, we're getting the money, that's good, that's a surplus. If we're importing, means we're buying their stuff, that is a deficit because our money's leaving in the country. That's the whole point of the stupid tariff or whatever it is. They're trying to get it even. We don't want a deficit. Always remember, wherever the currency is weakest, it usually is where a lot of people do exporting, we want to export. So we want a week dollar. We don't admit that, but we want a dollar that's a little weaker so that people will buy our stuff. Now, the balance of payments is split into a few parts. So if the current account, which is a good, services and income and capital account, investment flows. Think of it is a money scoreboard. Okay? Now, GDP and GDP. We got to talk about this. GDP this measures the total value of all goods and services produced within a country borders in a given time. So if a Japanese This car plan is in Tennessee, that plants output counts towards US GDP. GNP, this one looks at what's produced by the country's citizens and companies regardless of location. So if a US company has a factory in Germany, that factory's output is included in the GNP, but not in the GDP because it's built outside. Both GDP and GDP are big picture numbers, the economic activity is happening in the world and helps compared to the US to the rest of the world. Exchange rates. This is the price of one country's currency in terms of another. Like how how many dollars you need to buy a euro. Exchange rates matter, big time for trade, travel and investments. If the dollar is strong, you can snag more foreign goods on the cheap, good for importers, but our exports become pricier overseas. That can hurt us. American companies trying to sell abroad if the dollar is weak, foreign stuff cost more for us, but we sell more goods overseas because they're cheaper. So remember, the strong dollar is good for importers, bad for exporters. A week dollar is good for exporter, bad for importers. I'm going to say this again because it needs to be said. If dollar is cheaper, the US currency is cheaper, we're going to export more, which is good because our money we get a surplus. If the dollar is more expensive, then we're going to buy more other stuff, so it's kind of it's going to we're going to spend more money that's a deficit. So remember, the fact the Federal Reserve interest rates and global economic conditions absolutely play a role in all of these rates.
