Valuetainment - October 30, 2023


Florida Insurance Rate Hike Crisis - BlackRock’s ESG Influence Causing Industry Exodus？


Episode Stats


Length

21 minutes

Words per minute

220.2595

Word count

4,838

Sentence count

414

Harmful content

Misogyny

2

sentences flagged

Toxicity

1

sentences flagged

Hate speech

4

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Florida insurance premiums have gone up 900% in some places and farmers are leaving the state. Is this a good or bad thing? Is Florida headed down the path of California or is it headed up the road of Texas or Florida?

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 So a recent article came out with Newsweek talking about insurance premium in the state
00:00:04.200 of Florida is up in some places 900 percent. And you read this article, oh my God, this whole
00:00:09.680 Florida. A Tim's donut and coffee is the original collab. And now any classic donut is a dollar
00:00:14.240 when you buy any size original or dark roast coffee. Get a deal on the iconic duo with a
00:00:18.840 Tim's dollar donut plus tax at participating restaurants for limited time. Terms apply.
00:00:22.300 See app for details. It's time for Tim's. I think maybe it's a gimmick. Maybe they're not doing as
00:00:27.180 good of a job. And if you look at the article, it says 275,000 people left the state of Florida.
00:00:33.160 In some places, premiums gone from $1,700 to $4,200 per year. How are people making these
00:00:38.140 things happen? Farmers, massive company, just announced they're leaving the state of Florida.
00:00:43.020 It was so bad that the CFO of Florida, Jimmy, came out and said, Farmers is the Budweiser,
00:00:49.280 Anheuser-Busch of the insurance industry because they follow this ESG score. So what is really
00:00:53.700 going on in Florida? Are they targeting DeSantis? Are they targeting Florida because they had the
00:00:58.240 best reputation during COVID and California got destroyed? Who knows? What I do know is we got all
00:01:03.080 these slides to go through today on what the hell is going on in Florida with insurance.
00:01:06.900 Okay. So if you get value out of this video, give it a thumbs up, subscribe to the channel. But listen
00:01:10.220 to the people from California, you're watching this video saying, oh my gosh, finally redemption
00:01:14.360 time. He's going to attack Florida and California is going to come back to being the winner. Hang
00:01:18.620 tight. Listen, the reason why I have a different perspective than some of you is for the following
00:01:23.140 reason. Imagine if a man had dated Marilyn Monroe, Elizabeth Taylor, and Sophia Loren. To me,
00:01:30.100 all dimes, right? He can probably give you perspective on all three. Now, I have not dated
00:01:35.100 those three, okay? But I have dated California for 24 years. I dated Texas for five years and I'm still
00:01:41.200 dating Florida for two and a half years to kind of give you some context. Having said that, before you
00:01:45.840 jump to conclusion, whether you're pro Florida, pro Texas, or pro California, hang tight to the end of
00:01:50.720 the video. When you jump to conclusion, wait for the data. Let's get right into it. So stats,
00:01:55.400 home insurance premiums have tripled in the state of Florida the past five years. Florida average is
00:01:59.580 more than $4,200 per year. National average is $1,700. Some insurance premiums have risen by nine
00:02:04.960 times what they were in 2022. According to the chief executive of NSI Insurance Group and construction
00:02:10.380 costs has risen by 40% since 2017. Again, they give this data. This is Florida. This is what's going on.
00:02:17.860 Super expensive. All right. Next one, Newsweek. I told you earlier, Florida resident flea state 1.00
00:02:22.060 has insurance premiums skyrocket up to 900%. They're not lying. This is actually happening
00:02:29.220 in some places in Florida. In the same article, when people are reading stats, people don't go
00:02:33.680 and investigate even more. They're like, oh my God. Did you see how many people they said left? How
00:02:37.420 many? 275,000 people estimated left Florida. Nearly 23,000 people every month. And according to
00:02:43.500 the Bureau, they relocated to places like Georgia, 46,000. Carolina, 42,000. Tennessee, 36. South
00:02:49.200 Carolina, 31. Texas, 30,000. This must be a bad thing. A lot of people are leaving the state of
00:02:53.720 Florida. Man, we were all talking about how many people left California where they were kind of
00:02:58.440 like, since 1851, we've never had this kind of numbers of people leaving California. The whole U-Haul
00:03:02.660 joke that they would say, you know, Gavin Newsom is the number one U-Haul salesman because he's got so
00:03:06.760 many people renting U-Hauls to leave the state of California, right? So this shows Florida bad. But when
00:03:10.480 you go and look at U.S. Census Bureau of net positive versus net negative, guess who is still
00:03:15.920 number one in net negative in 2022? You ready, California? You're not going to like this,
00:03:20.960 okay? Here you go. You ever wonder why Jamie Dimon, CEO of Chase, has a $900 million art collection? Or
00:03:26.000 Steve Cohen, $1.1 billion art collection? Or Microsoft has nearly a billion dollar collection? The
00:03:31.960 company, 5,000 art pieces in 180 different locations worldwide. Why? Because billionaires and
00:03:38.800 millionaires understand one of the ways to hedge against inflation, money being printed, market
00:03:42.820 crash, interest rates, is to buy non-duplicatable assets. And one of them is art, fine arts. And
00:03:49.520 that's why today's sponsor is Masterworks. Let me tell you a little bit about Masterworks. You may
00:03:53.440 be watching and saying, Pat, I'm not a millionaire or a billionaire. I can't afford to buy Warhol or
00:03:56.660 Banksy or Basquiat. How am I going to buy that? Well, Masterworks allows you to buy fractional shares,
00:04:01.720 like buying a share of Apple, you buy a share of a Banksy painting or a Warhol piece. You're able to do
00:04:07.940 that through Masterworks. This is why over 800,000 people have signed up with Masterworks. Offerings
00:04:13.040 have sold out within minutes, and many of you have already created accounts, and some of you that
00:04:16.640 haven't. This is your chance to skip the waiting list and start your collection today. Just click
00:04:20.920 on the link in the description. Go to masterworks.art forward slash value attainment. Once again,
00:04:25.840 masterworks.art forward slash value attainment, or click on the link below. California, minus 343,000
00:04:32.600 people left California. According to Census Bureau, New York, minus 299,000 people left. Illinois,
00:04:39.900 minus 141,000 people left. But if you go to the net positive state, guess who's at the top? Florida,
00:04:45.260 number one. Domestic net migration, 2022. Florida, number one, 318,000. See, Newsweek, you didn't tell
00:04:52.120 the whole story. You know who number two is? Texas. 230,000. Then it's Carolinas. Then it's Tennessee.
00:04:57.640 Then it's Georgia, Arizona, Idaho, Alabama, Oklahoma, Nevada. You get the idea. At the bottom is California,
00:05:01.900 New York, Illinois, Jersey, Massachusetts. Blue, blue, blue, blue, blue, blue. Get the idea?
00:05:05.520 What's going on here? What people are doing? Bad policies have consequences, but they're targeting
00:05:09.300 Florida. So let's continue with this whole Florida concept, seeing what else they're going to tell us.
00:05:12.820 Since 2017, 11 property and casualty companies that offered homeowners insurance in Florida
00:05:16.960 liquidated. Five of those companies liquidated in 2022, meaning they're liquidating. They're no longer
00:05:21.800 wanting to do business in the state of Florida. Five of those companies left in 2022, United Property
00:05:26.600 and Casualty Insurance Company, left in 2023. Okay? This is obviously not a good look.
00:05:31.600 When you look at the Florida company's liquidation, this is what you'll find. American Capital Insurance
00:05:35.180 Group, Avatar Property and Casualty, FedNet, Florida Specialty, Guarantee Insurance Company,
00:05:40.280 Gulfstream, Physicians United Plan, Southern Fidelity Insurance, St. John's, United Property,
00:05:44.580 Universal Healthcare, Universal Healthcare Inc., Western Property and Casualty, Windhaven Insurance
00:05:48.860 Company. The list this year you can find is, it's all over the place, not hard to find. However,
00:05:53.200 several factors. Number one, they left for high threat of widespread weather-related damage.
00:05:57.720 Okay, fair. Florida's got hurricanes, all the stuff they talk about. Number two, insurance fraud
00:06:01.980 driven by fraudulent roofing claims. Number three, Florida accounts for 9% of country's home insurance
00:06:08.600 claims. It is home to 79% of the country's home insurance lawsuits. And by the way, some of these
00:06:14.860 can be addressed by the governor. So let's see what Governor DeSantis did. Underwriting, Florida
00:06:18.960 property insurance are projected to post a cumulative underwriting loss of $1.7 billion for 2021 due to
00:06:25.520 these runway litigation costs. According to Mark,
00:06:27.720 Friedlander, Director of Corporate Communications at the Insurance Information Institute. This is from
00:06:32.160 2022 and 2023. Let's continue. Senate Bill 2D, signed by Governor DeSantis in May of 2022,
00:06:38.120 enacts pro-consumer measures to help alleviate rising insurance costs, increases insurance claim
00:06:43.840 transparency, and cracks down unfrivolous laws that drive up costs for all Floridians. So what does
00:06:49.500 this mean? For the longest time, these guys don't have to report how much it costs. Now they're like,
00:06:52.700 no, no, why are you charging me this much? Because of this. Okay, disclose it. We need to know.
00:06:56.340 There's got to be transparency. He's holding them accountable. So for some of you that want more
00:06:59.920 intel, let's go a little bit deeper and kind of see what Governor DeSantis did. So this is what
00:07:03.200 you'll find here on flgov.com. Property insurance legislation. The bill's proposed provides both
00:07:08.320 short and long-term relief for Floridians. That's good. Provides grant funding for homeowners to make
00:07:13.300 their homes more resilient to storms, resulting in insurance premium discounts. Number three, reforms the
00:07:18.060 legal environment to reduce frivolous lawsuits. And last but not least, cracks down on fraudulent roofing
00:07:22.720 scams and predatory actors. That's very good. By the way, this has happened. I've been in life
00:07:26.580 insurance. There was a lot of fraudulent going on in life insurance and Medicare, many different
00:07:30.040 things. This is actually very normal for states to do. So he's taking the right actions. Now let's go a
00:07:34.720 little bit deeper. Pro Consumer Measures. Provides $2 billion in reinsurance relief to benefit policy
00:07:40.100 holders over the next two years. Dedicates $150 million to the My Safe Florida Home Program, which
00:07:44.860 provides grants to Floridian homeowners for hurricane retrofitting, making homes safer and other
00:07:49.940 resilient and more resistant to hurricane damage, results in premium discounts for homeowners who
00:07:54.060 participate in the program, and requires the Department of Financial Services to report the
00:07:57.820 average annual amount of premium discount for participating Floridians. This prevents insurance
00:08:01.580 companies from denying coverage based on the age of a roof that is less than 15 years and
00:08:05.940 strengthens Office of Insurance Regulation oversight of insurance companies to better detect and prevent
00:08:10.160 insolvencies. Again, this is all good things that he's doing. But when you do this, you're kind of
00:08:14.360 putting insurance companies in corner and they're kind of saying, well, it's not as lenient, man. I want to
00:08:18.440 kind of leave because I can make profit other places. That could also happen. That's the risk
00:08:22.320 when you come up with certain regulations like this. So, increases insurance claim transparencies.
00:08:27.780 Number one, prohibits insurance companies from denying claims without communicating sufficient
00:08:31.240 reason. They need that. You know how many times you get rejected. Can you tell me why? Nope, we don't
00:08:35.020 need to tell you. You need to now tell the client why you're doing that. Number two, provides consumer
00:08:38.520 greater access to information during the claim adjustment process. Number three, requires insurance
00:08:42.760 to provide adjusted reports to policyholders in a timely manner. And last but not least,
00:08:46.640 anti-fraud and legal reforms cracks down on predatory actors who file fraudulent roof claims,
00:08:51.520 reducing litigation costs, which are passed on to Floridians, and limits the assignment of attorney's
00:08:55.920 fees to contractors in property insurance cases, de-incentivizes frivolous claims and further
00:09:00.740 stabilizing premiums. What does this do? Those who are doing these things, those actors, are going to
00:09:06.060 say, I'm no longer going to do business in Florida and I'm going to leave. And it's going to actually
00:09:09.540 increase the quality of business that people are doing. And the actors that are trying to take
00:09:13.340 advantage, they leave. So now somebody may say, but Pat, you know, this is great. You know, you could
00:09:17.440 lose a customer here and there on some of those insurance companies you read. We've never heard
00:09:20.640 of those companies, but everybody knows farmers. There's some farmers like massive. You're right.
00:09:24.080 Farmers is massive. So what do farmers do? Farmers Insurance has become the latest insurance company
00:09:28.900 to pull out of Florida. They said the move will affect only company branded policies, which account
00:09:33.160 for about 30% of policies sold in the state. Fourth major insurer to leave the Florida market in the
00:09:38.940 past year with most citing the risk from hurricanes. So what are some of the big insurance companies
00:09:43.280 that have left Florida? Here you go. You got Farmers, Lexington, Centurion, Bankers have left
00:09:47.540 Florida. So now if you're thinking like me, you're asking the question, is it just Florida that farmers
00:09:51.560 left or are there other states they don't do business with? And is there a pattern with these states?
00:09:55.300 Like what do they do? Here's a list of states that farmers doesn't do business with. Alaska,
00:09:59.280 where is it at? Coast. Delaware, coast. Hawaii, coast. Maine, coast. New Hampshire, Rhode Island,
00:10:05.320 Vermont, West Virginia. All of these places are in a place where they have a higher chance of getting
00:10:11.280 some risk. And by the way, even in the state of California, they kind of have a creative way where
00:10:14.920 they don't necessarily do with everybody, but they're a little bit tighter and stricter on who
00:10:18.560 they underwrite. So now the questions I want to know is, is this happening across the board in
00:10:22.180 America or is it just a Florida thing? What states are premiums increasing more than others and what
00:10:26.900 states is lower? Here's a list for you. Okay. So if you look at the largest increase, Florida is at the
00:10:31.420 top. 35%. That number is a real number. Then it's Idaho, Colorado, South Dakota, Oklahoma, Texas,
00:10:37.320 Louisiana, Arizona, Nebraska. You see the list of names. Some people may say it's only the red
00:10:40.860 states that are increasing. How about the blue states? Go to blue states. Smallest increase.
00:10:43.920 Vermont. We know who's from there. The legendary Bernie Sanders. New York. We know where New York
00:10:48.040 leans. California, Nevada, Maine, New Hampshire, Wisconsin. They had a smaller increase. So why is
00:10:53.940 that? Some states, like I've been in the life insurance industry for 20 plus years. You ever heard of
00:10:57.720 New York life? You've heard of New York life? You know what's one of the worst businesses to do
00:11:01.160 insurance in? New York. And New York life is from New York. How weird is that? That's one of the
00:11:05.760 hardest states to do insurance with. Why? Overly regulated. So you have to balance over regulation
00:11:11.880 because then people don't want to do business there. And you have to also balance under regulation
00:11:15.840 where insurance companies can kind of just come and say, nope, you got to pay for this and we don't
00:11:19.180 have to explain it. Florida has to kind of figure out where they stand with this ranking here. 0.86
00:11:23.100 So one argument some people are making are saying, well, listen, this is all because Governor DeSantis
00:11:27.420 took such hard lines when it comes down to ESG. And it's one of the biggest anti-ESG states.
00:11:32.040 And when you look at this map here, based on Bloomberg, you'll see this. Red are the anti-ESG 0.97
00:11:37.120 states with the most laws against them. Then you have those who boycott the law, those who are both
00:11:41.840 anti-ESG and boycott. Then you got the divestment and a pro-ESG law. If you notice Florida on the
00:11:47.340 bottom right is anti-ESG. And Farmers is one of those companies that is fully committed to making sure
00:11:52.860 they have a high ESG score. So one would say, well, those stories kind of go together and maybe
00:11:56.960 behind closed doors, somebody influenced Farmers to leave Florida because, you know, Florida is not
00:12:01.300 really an ESG company, ESG state. That could be something to consider. So I want you to see this
00:12:05.100 exchange of different thoughts from the CFO of Florida, Jimmy. He continues. But I also want you
00:12:10.280 to hear what the CEO of Farmers have to say. Watch this. So Jimmy says, while they're bad at helping
00:12:14.420 people, this is Farmers, that's what he's saying, they're good at virtual signaling. Instead of focusing
00:12:18.400 on their policyholders and running a functioning business, the insurer became the first U.S.-based
00:12:23.600 insurer to become signatory of the United Nations Principles for Sustainable Insurance. Very
00:12:29.300 interesting. Okay. First to do that. Now watch this. Here's a response from the CEO of Farmers and
00:12:34.060 see if there's anything about ESG there. This is him. Farmers is committed to operating in a way that
00:12:38.840 positively impacts our customers, our employees, and communities by incorporating environmental,
00:12:43.320 social, and governance, ESG considerations into our business. So maybe the CFO of Florida was right
00:12:50.540 on what Farmers is focused on. We'll see. Now let's see if, you know, the CFO, Jimmy Petronas,
00:12:54.900 knows what he's talking about. Maybe he's just kind of upset at what they did. Let's actually go to the
00:12:58.260 U.N. website and see if we can find Farmers. Here's what we found. U.N. influence, last signatory
00:13:03.300 stats, 151 signatories, 103 supporting institutions. If we look further, the U.N. influence convened by
00:13:10.220 Geneva, Switzerland-based secretariat, more than 500 banks, and insurers with assets exceeding,
00:13:15.700 ready? $170 trillion. That's a lot of influence. Working together to facilitate the implementation
00:13:22.340 of UNEP, FI's Principles for Responsible Banking and Principles for Sustainable Insurance, as well
00:13:27.100 as the three U.N. convened net zero alliances. We'll talk about that in a second. Now to learn more about
00:13:31.740 UNEP, FI, this organization founded in 1992 was the first organization to engage with finance sector
00:13:37.200 on sustainability and incubator, the Principles for Responsible Investment, now the world's
00:13:40.980 leading proponent of responsible investment. Today, we cultivate leadership and advanced
00:13:44.920 sustainable market practice while supporting the implementation of global programs at a regional
00:13:49.180 level across Africa, Middle East, Asia Pacific, Europe, Latin America, Caribbean, and North America.
00:13:53.760 Principles for Sustainable Insurance, PSI, established in 2012 by UNEP, and today applied by one quarter
00:13:59.340 of the world's insurers, 25% of world premium, PRI established in 2006 by United Nations, and the
00:14:04.780 UN Global Impact, and applied by half the world's institutional investors. Again, $83 trillion by
00:14:10.840 2022. That's a lot of assets. That's a lot of money. And by the way, the three finance sectors that they
00:14:15.660 were talking about for the Net Zero Alliance, the first one is Net Zero Asset Owner Alliance AOA,
00:14:20.080 launched in 2019 with a membership of more than 70 institutional assets with over $10 trillion in
00:14:25.360 assets, about 7% of global investment. Number two, Net Zero Banking Alliance, NZBA, launched in 2021
00:14:30.760 with over 100 banks and U.S. $65 trillion in assets, about half of the global banking industry
00:14:35.460 assets. And last but not least, Net Zero Insurance Alliance, NZIA, launched in 2021, convening 25 leading
00:14:41.740 insurance representing about 12% of world premiums. And by the way, guess who's on that list? UN
00:14:46.180 influence. Bingo. When you look at this, farmers insurance. Who knows? Maybe farmers left because
00:14:50.960 they're being pressured by UN, ESG, DEI. Who knows? But there's some influence there when a state like
00:14:57.700 Florida. And Governor Ron DeSantis says, I don't support you bullying your ESG policies in my state
00:15:04.000 with UN. And he makes all that noise. There's a lot of quiet people that nobody knows their names or
00:15:08.780 their faces behind closers going to work to say, I don't like this guy. We have to make their life
00:15:12.460 hard. Guess what? Let's expose him. Let's write a bunch of things about the state of Florida and hurt
00:15:17.280 his reputation when he's running for president. Is that true? Is it not happening? I don't know. But it's
00:15:22.140 worth speculating that there's a possibility of that happening. So if you're watching and saying,
00:15:26.580 Pat, I don't even know about the war with him again, ESG. Are we just making this up? I've not
00:15:31.160 been following this story. What's DeSantis said about ESG? Well, let's take a deeper dive and kind
00:15:34.940 of see what he said about ESG. August 2022, Governor Ron DeSantis, along with fellow trustees of the
00:15:39.960 State Board of Administration, SBA, passed a resolution directing the state of Florida's fund
00:15:43.920 manager to invest state funds in a manner that prioritizes the highest return on investment for
00:15:48.960 Florida's taxpayers and retirees without considering the ideological agenda of the environmental,
00:15:54.980 social, and corporate governance movement, ESG. Florida pulled $2 billion from BlackRock
00:16:00.140 venture funds back in December 2022. You think Larry Fink likes that? He doesn't like that. You
00:16:05.920 pulled. How dare you? Do you know everybody says yes to me? Who do you think you are to say you're
00:16:10.640 going to pull $2 billion? You, Governor DeSantis, you. I'm not saying Larry said that, but maybe
00:16:15.000 something like that went through his mind. Florida's chief financial officer said his department
00:16:18.460 would pull $2 billion worth of its asset managed by BlackRock. The biggest such divestment by a
00:16:23.500 state, again, big as such divestment by a state, opposed the asset manager's environmental, social,
00:16:29.460 and governance policies. The move will hardly dent anything with BlackRock. This company's an A2,
00:16:34.280 $10 trillion of assets under management. They don't really care about that. What they do care about
00:16:38.740 is an article that says a state had the brass to stand up against BlackRock. What? Because if you do
00:16:45.640 that, maybe you're going to teach other states to follow Governor DeSantis. That's not good for them.
00:16:51.180 By the way, if you want to read further, you can. We'll put the link below, but I want to read one
00:16:54.220 of them here, some things that he's prohibiting. Prohibiting the financial sector from considering
00:16:57.800 so-called social credit scores. There's a lot of people that are worried about the social credit
00:17:01.620 scores because they're doing that in a lot of different places. In banking and lending practices
00:17:05.640 that aim to prevent Floridians from obtaining lines of credit and bank accounts. Can you imagine
00:17:10.260 if somebody says, I don't like what you posted the other day? Nope, we're not going to give them this
00:17:13.800 loan. Florida's trying to protect that from becoming the norm. That's become in many different
00:17:17.900 places. They had it in Europe. You had the vaccine passport. You were traveling at the airports. Can
00:17:22.640 you imagine? They don't want to bring that to the state of Florida. So if you're against this,
00:17:25.860 guess what? You support what Ron DeSantis is fighting against. But if you say, I want a social
00:17:31.220 credit score, then Florida's not the state for you. I want to go a little bit deeper with this
00:17:34.720 whole concept. Some of you guys may be asking a very valid question. Why would farmers be afraid
00:17:39.160 of BlackRock? Who the hell is BlackRock? Wouldn't you want to have a better relationship with Florida
00:17:42.740 than a BlackRock? Well, you have to understand that when it comes on to BlackRock, they don't
00:17:46.680 just give institutional money. They also lend to big companies. So imagine if you're worth eight
00:17:51.300 to ten trillion dollars of assets, some of that money you're lending to people and you're getting
00:17:55.240 interest back. So when you're borrowing money from a company like BlackRock, you don't want them to
00:17:59.120 charge you eight percent. You want them to charge you the least possible because you are in good
00:18:03.760 standing with them. But BlackRock, if your score isn't good, they can say, farmers, you didn't do right
00:18:08.620 with us in the state of Florida. Instead of giving this thing to you at four percent, we're going to give it to you at
00:18:12.140 eight percent, seven percent, nine percent. That may not seem like a lot of money. That's a lot of money.
00:18:16.020 And by the way, when you look at this chart here, here's what you'll notice. Okay. Market size for
00:18:19.960 broadly syndicated loans in America is one point two trillion dollars. Europe is two hundred billion
00:18:24.600 dollars. And private direct loans market, U.S. market is nine hundred and ten billion. And in Europe is
00:18:29.980 one hundred and twenty billion dollars. This is why companies like farmers want to be on the good graces
00:18:36.320 of a place like BlackRock. They worry if we don't do right by them, they're not going to lend us more money.
00:18:41.720 Does that kind of make sense? If you want to kind of unpack it and you're like, Pat, I want to know
00:18:45.160 what part of that one point two trillion dollars goes to different industry, how much of it is
00:18:48.240 insurance for farmers to be afraid of it? Let's take a look at this chart. This is the U.S. broadly
00:18:52.020 syndicated loan market breakdown. And if you look at this, the dark blue is the CLOs. Okay. These are
00:18:57.680 collateralized loan obligations. But if you go to insurance, that's PNC and life. PNC stands for
00:19:02.720 property and casualty and life. Light blue, baby blue, all the way at the top there to the right,
00:19:07.480 you'll notice two percent. The hundred percent is one point two trillion, but two percent still
00:19:11.280 equates to twenty four billion dollars. It's a lot of money that companies like farmers, one of the
00:19:15.640 biggest companies, they need access to that twenty four billion dollars. So it's real money we're
00:19:19.900 talking about here. So let me give you my final thoughts on this year. Number one, we learned
00:19:23.200 during COVID one very simple thing, maybe more than ever before, that governors matter. Governor DeSantis
00:19:29.400 had better policies than Governor Newsom. Okay. One got people to show up here. The other one lost
00:19:34.160 people. What is the problem of losing people? You got to replace them. But what is the problem
00:19:38.040 of gaining a lot of people? Holy shit. Prices are going to go up. You know, cost of living is going 0.99
00:19:41.940 to go up. Everything's going to go up. How are we going to handle all this stuff? They both have
00:19:45.260 a problem. It's a different problem. When a company is growing very, very fast, you don't have money to
00:19:49.800 catch up with the growth. That's still a problem. When a company is not growing, you're also losing
00:19:53.320 money. Both is a different problem to solve. Newsom's got to make sure he makes an argument for people
00:19:57.000 to say, come to California. No one's coming. He's got to make a better place to say, listen, those of you guys
00:20:01.320 that came to Florida, you got to stay here. So, regulation. You know, some may say, well, we need
00:20:04.780 to deregulate. And some say, we need to overregulate. California is overregulate. New York is overregulate.
00:20:09.620 Illinois is overregulate. Florida is here. So, as a parent, I have two sons. If I don't have proper
00:20:15.040 regulation in my house, my oldest son could bully my youngest son. Employer. I'm an employer. We have
00:20:18.880 employees. I need to be held accountable to certain levels. My employees need to be held to certain
00:20:23.140 levels. Okay. If one is over the other, the other one doesn't have an incentive to do something.
00:20:27.700 So, Governor DeSantis has to figure out the balance of regulation so these insurance companies don't
00:20:33.820 just charge premium because they can. And these other people don't go abuse and take advantage
00:20:38.460 of insurance companies with fraud because they can. So, he's dealing with that part. But more than
00:20:42.900 anything else, the ESG story tells you it's real. That is involved. They have a lot of influence.
00:20:47.360 It is becoming deeply concerning to a lot of different people. And there's a big part of America that
00:20:51.460 doesn't want to live in a place that companies like BlackRock have such a big influence over what they get
00:20:56.400 to do. Small business owners don't want to be controlled by companies like BlackRock. They want
00:20:59.920 to be able to say, look, I got access to you, but I don't want you to give me access because of the
00:21:03.800 way I vote or because I took the vaccine or because I did this or I didn't do that. Just judge me based
00:21:07.900 on the kind of a business I built. Not who's Middle Eastern. Not who's black. Not who's white. Not 0.79
00:21:12.120 who's women. All this. That's just nonsense. Let me build a good business. If we have a good 1.00
00:21:15.960 profitable environment, our employees are happy. We take care of the people in our community. Reward us for it.
00:21:20.500 Nothing more. Nothing less. If we don't do it, we'll go out of business. So, there's a reason why
00:21:24.820 Ron DeSantis is running for office because many of his policies attracted a lot of people here.
00:21:29.840 And now he's probably being targeted. And he's got to show his fight. It's not easy. Not everybody
00:21:33.360 wants to be a governor. He chose to be a governor. Not an easy job. But I trust he's going to do his
00:21:37.980 fight and show up like he has the last few years. Having said that, if you've not seen the video,
00:21:41.360 by the way, if you got value out of this video, give it a thumbs up. Subscribe to the channel. But if
00:21:44.680 you've not seen the video we did on ESG, it's a must watch. By the way, if you've not seen the one on
00:21:50.400 Larry Fink, click here. But if you've not seen the one on ESG, click here. Both of them are great
00:21:56.080 videos. Take care, everybody. Bye-bye, bye-bye.