Personal finance practice problem using OneNote. Buy or rent home decision problem number one. Prepare to get financially fit by practicing personal finance. OneNote, you're not required to, but if you have access and would like to follow along, we're in the icon on the left-hand side, the practice problems tab in the 7140 buy or rent decision problem one part one tab. Also take a look at the immersive reader tool. The practice problems will be in the text area as well with the same name, same number, but with transcripts, transcripts that can be translated into multiple languages and either listened to or read in them. Information's on the left-hand side. We're gonna do the calculations in blue on the right-hand side and down below. We're breaking out on a year-by-year basis. The costs and benefits between renting and purchasing, which could be useful if we're going from a rental property and thinking about purchasing something, a similar calculation might be put in play if you were thinking about purchasing rental property because you would think about the kinds of rents that you would be receiving, the income versus the yearly costs that you would have to own the property. Now, when we make a decision that has two paths from a financial perspective, then typically what we want to do is look at the differentials between the two paths so we could break out the flows of income on a year-by-year type of basis and look at the differentials between the two paths. Obviously, we have other factors involved as well, which are less easy to quantify than the financial items, such as we might be moving from a rental property that's smaller to a bigger place. When we own it, we've got the value of us owning the home versus renting the home and the equity in the home so it can get more complex as well, but from a financial perspective, that's what we'll try to do and we'll try to quantify everything as much as possible. The more we can quantify the values that we have the benefits of the two items, the easier we'll be able to look at a comparison from a quantifiable type of standpoint. Now, obviously, when we purchase the home, we'll typically have the cash outflows that will happen upfront, which could include things like the deposit and the closing costs and so on upfront, and then we're gonna have the yearly costs after that point in time. We're gonna be trying to compare the yearly costs at this point in time. So we've got the information on the left-hand side. So for the rent or buy for the rental costs, the renting is pretty easy from a yearly cost perspective. You've got the annual rent, we might have insurance, and we've got the security deposit that we could deal with pretty straightforward. If you're buying, then you've got the mortgage payments. So we could think of the mortgage payments in terms of a cash flow basis. If I'm trying to break things down simply to a cash flow scenario, I could do that. Now, obviously, we might actually have to format or calculate what these mortgage payments would be based on the home. So we'll talk about that in a bit more detail afterwards. We're just gonna assume for starting out that the payments are gonna be for the 10,700. The interest portion is 8,000. That's gonna be, we'll talk more about how to get that number as well because that number will change from year to year. So we'll dive into that in a bit more detail later. We'll assume it to start with. The property taxes are gonna be the 2,100 per year. The down payment closing costs, we're gonna say are the 37,181. The growth in equity, we're gonna say is 2,700. The equity component, that's gonna be the difference between the home value and the loan. So remember, when you purchase the home, you're typically gonna have the home on the books as an asset, and typically most people have to take out a loan. That's a liability. The difference between the two is going to be our equity. Two factors contribute to hopefully an increase in equity. One, paying down the principal of the home, which will change from period to period as we'll see. So we'll see how to get that number. And the other, hopefully the value of the home goes up. The insurance and maintenance are here in the estimated annual appreciation. We're hoping the value of the home goes up. That's what we're assuming the value of the home is gonna go up by. We've got the after-tax interest rates. This is what we're gonna be able to gain or earn on if we have money that we could put into a savings account. And the tax rate we're gonna say is the 28%. We'll try to put in the tax calculations in here as well. So we've got the rental costs fairly straightforward. We're just gonna say we've got the 9,600 of the rent. And then we've got the insurance. If we have to have renter's insurance of the 300, the security deposit, we might try to figure out if, for example, I have that $800 that I had to give to a security deposit, they're supposed to give it back to me. If I had it, then I would be able to invest it. So what am I really losing from a cash flow basis? We're losing that after-tax 6%. So it might not be that significant to put this into consideration, but you can consider the fact, the security deposit, the fact that you can't invest it, but they have to give it to the rental company for them to hold on, means you're losing the interest that you could have got on it, which we're gonna say is 6%. Why is it 6% over here? Because we're figuring that's what we can generate in say the stock market or something like that after taxes, after we pay the taxes, that's what it means after taxes. So that means it's gonna be 800 times 6% or 48. So if we pull out the trustee calculator, I'll do that one more time, 800 times 0.06, that's gonna be the 48 plus the 9,600 plus the 300 that comes to the 9,948. So then if I go to the costs to buy, to buy the yearly home costs, if we were to purchase the home versus the benefits. Now note, when you get to the home side of things, then you're gonna have a cash flow kind of component that we wanna think about, which is important for the cash flow. And then we also have the benefits of the home, which have some non-cash flow items, which includes the equity in the home. And it's important to break those two things out because even though we have more assets, we could look good from the standpoint of assets minus liabilities, meaning we have a lot more assets than liabilities. But if all of our assets are wrapped up in the home and we don't have any money to pay the bills, then we're still in a financial heart, we're still in a problem and we're gonna have to do something about that. So we wanna think about it from the cash flow perspective as well as the net asset perspective. So if we have the annual mortgage, so now we're looking at an annual basis comparing this information. So the mortgage payments we're gonna say is 10,700. We'll talk about how to calculate that more that we've seen in the past. We can try to figure out how much it would cost based on the terms of the loan and so on. And then the property taxes are the 2,100. You can typically get estimates to figure out what you think the property taxes will be in your particular area. Those are gonna be more localized in terms of how much they will be. The insurance and maintenance, we're gonna estimate at the 1,650. So we're gonna take the insurance and maintenance into consideration because when you own the home, notice that when you're renting, we don't have the same kind of maintenance costs up top because clearly those are typically things that are gonna be covered by the rental area. Whereas down here, we've got to deal with the maintenance through a differentiating factor. You might say, well, where's the utilities in there or something like that? Utilities, phone bills, those aren't differentiating factors because we have to pay those up top and we have to pay them whether we own the home or we rent the home. The thing that's gonna differ is things like the maintenance and so on, which we'll have to deal with when you're purchasing the home and can be significant, something we wanna take into consideration. After tax interest lost on the down payment. So now we've got the same kind of thing. We're looking the down payment note is a cash flow item that would happen upfront. So if I was to try to, if I was to another comparison that you can do between these two decisions is to try to think about the cash flows over the life of these two items and try to present value the cash flows. And that means you could think about, obviously you got a big outflow of cash up top for the down payment. That's not really what we're doing here. We're comparing after the purchase has taken place what's gonna be the year by year kind of comparison, benefits and costs between the two. So what we're thinking here is if I had to put that 37, 181 down, what's gonna be the cash flow in a year by year basis? Well, I couldn't put it into a savings account then because I had to put it into the down payment. That means I'm losing whatever I could have made in the savings account or the stock market which we're assuming after taxes is the 6%. So if I had to tie my money up in the down payment and I can't make money on it, that means I'm losing on an annual basis 6% 37, 181 times 0.06 and that's where we get the 2231. And so now we've got the cost to buy which would be the 10, 700 plus the 2100, the 1650 and the 2231. So that's an annual of the 16, 681. Notice this last one, if I had the cash flow for the down payment, this last one isn't really a cash flow item. It's more that I'm losing the cash inflow I would have gotten if I could invest this somewhere where I got a 6% return. So from a cash flow perspective, you might say, well, I've got the 10, 7 plus the 21 1650 and that's basically your cash flow kind of item. So it's important to note from a budgeting perspective, I wanna know what the cash flow is because I wanna determine if I can cover that, if I could pay basically the cash flow. And then from a comparative perspective, I would also wanna take into consider these items with regards to the loss of income from us tying up the money. And that's these two items. Now that's not the end of the story though because we also have the benefits from the purchase of the home. And these are the financial benefits. We could also have the benefits of non-financial benefits I might have purchased a larger home, for example, or a home that has stuff in it that I didn't have when I was renting and so on. So we'd have to factor those in, but we're looking at the financial items here. One, we've got the growth in equity. So there's gonna be that 2,700. Now there's two factors to the growth in equity. One, the equity represents the difference between the home value and the loan value. And the equity can then go up when we pay down the loan, but it's not gonna go up by the payments per se themselves because interest is gonna be involved and it's gonna change from year to year. So it's actually a little bit more complex to figure that number. So we'll talk about it later, but the amount that's paying down the principal will hopefully increase equity. As the loan goes down, the difference between the value of the home and the loan will go up. And that means you have more assets compared to the liabilities equity than going up. Even if the home value stays the same and we're hoping that the home value goes up in value. So this is the estimated annual appreciation. That's the other equity component. We're hoping the home goes up in value. That's the 1,000. This 1,000 is purely speculative. We don't know if the home's going up. We're hoping it goes up. And notice that both of these items, the equity components here, are things that we cannot easily, we can't cash them. So they're great because they make our net assets go up, assets over liabilities. That makes us look better from a financial perspective, but they're not liquid. So we gotta make sure that we still have the cash flow, which is this calculation down here to pay our bills because to tap into this equity, we would have to refinance or sell the home. So we want the equity to go up and we're gonna use that in our comparison calculation. But we also have to be careful with the fact that we can't really get that equity per se. It could be locked up if the economy is doing good. We could refinance possibly. We could do it that way, but just notice not as easy to get the cash. So tax savings on the interest. So we said the interest is gonna be this 8,000 up top. This is another number that we might get from the amortization table. It will change from year to year, but we're gonna use that number for the purposes of the example. We've got the rate at the 28%. This is a little bit deceiving. So this is something that you also wanna take in a lot, look at a lot more closely because if you talk to people that say, you're gonna get, like if I take this calculation, I'm gonna get a tax savings of the 8,000 for the interest. That's gonna lower my taxes. It's an itemized deduction on the schedule A times 0.28. And that would mean savings of the 2,240. That's true, but you have to also consider that before you did this, were you itemizing or were you taking the standard deduction? And the standard deduction, most people are taking the standard deduction if they do not own a home. And therefore, and the home is usually the thing that kicks people over to itemizing. And that's because of the big guys here on the itemized, which is the interest on the home as well as the property taxes. So you have to really do a projection because any gap between the standard deduction and the itemized deduction isn't really a benefit to you until you get over that. In other words, if it was taken, if I wasn't itemizing, I was still like 4,000 away from itemizing, then really I only got a $4,000 benefit because if I was to take the standard deduction, I would have still gotten the other 4,000 because the standard deduction would have been higher than my itemized deductions. So it's a little bit more confusing than this. And the only way to really wrap your head around it is to use tax software, do a projection in tax software and talk to your accountant about it. Also note that the interest will not be the same each year. It will go down each year. Also note tax laws could change. So if the tax law changes, like the rates could change and or the deductibility of how much interest could possibly change and the changing of the itemized and the standard deductions could change. So all that stuff makes the tax calculation a little bit more complex than you might first think. Then we got the savings on the property taxes, same kind of thing here. The property taxes depend on your local area, how much the property taxes will be. We have the same tax rate. These are also itemized deductions. So everything I just said with the interest applies here too.  What's the standard deduction versus the itemized? So you wanna do an actual tax projection on those ones. So in other words, if I got 2100 and I was at the tax rate of the 0.28, also note that this is the marginal rate that you would typically be using because we have a progressive tax system. So that means you're actually getting taxed on multiple rates but you would think that the change would happen at your highest rate would be the marginal rate. So the best way to do these is actually to do a tax projection in tax software. So this tax savings are gonna be the 588 there. So the benefits we're gonna say then we're gonna hope the equity goes up because we're paying down the loan balance of the 2007 plus we got the 1000 that we're hoping the home value goes up. Plus we're gonna save on taxes 2240 plus we're gonna save on taxes 588 for the property taxes. That's gonna be the 6528. So the 6528. And so if I take that on the benefit side minus the 16681, that's gonna be the 10153. And then on the equity side of things like if I take off the equity. So in other words, this is kind of like the total benefit the 10153, but on a cash flow side of things, you've got these two equity items over here and you might also take into consideration the amounts here that aren't really cash flow items. But at the least you'd say, okay, there's the 10153. If I then take that and I say if I take the 10153 minus like the equity components, which is the 2700 minus the 1000, which is the 37. Let's do that one more time. I'm gonna take the 101353 one more time. We're gonna take the 10153 plus the 2700 plus the 1000 that gets us to the cash flow of the 13853. So if I compare these two, I can start to say, okay, well, if I was renting up here on a year by year basis, I got to the costs of on a yearly basis of the six of the 9948. Whereas down here, I've got to the 10153. So you got some comparative numbers there that you can take a look at to help you with your decision-making process. But then you might also kind of break it down to more of a cash flow basis to think about your cash flow item. So we're thinking about one, our full, our kind of like our balance sheet information in terms of our total benefits and costs. And then we might break it down to our cash flow information. So up here, clearly this is basically a cash flow type of item, the 9948. Whereas down here, this 10153 is taking into consideration equity benefits of the 2700 and the 1000, assuming the home goes up in value and because we're getting a benefit in terms of our net assets going up when we pay down the loan principle. So those are not cash benefits. So if I add those back, then we've got the cash here at the 13853. So that's the kind of comparison that you might wanna look at basically on a year by year basis. And then also look at that kind of cash flow that's going up front, which would include of course the deposit. Now, once you have this information, you might also think, okay, how did I get to this 10,000s? All the yellow items, the annual mortgage payment, the interest portion of the 8,000 and the growth in the equity. How did I get to those items? Well, you're gonna basically get to that with the loan calculation, which might be the first thing that you'll take a look at. We'll back into it here because we've seen the loan calculation a couple of different times. But let's say that we had the loan of the 148.723, the mortgage payments at the 8.92 and the periods are gonna be a 30 year loan. The rate is at the 6%. If we made then our loan amortization table, which we can do here, or you can do it with an online calculator tool such as this, just type into the browser, the loan calculator. Although I think it's easier and better to do in Excel because you could tie everything out a little bit more easily that way. Now note that we're kind of backing into this loan amount so that we could tie into the numbers that we had up top. So we said, for example, that the annual mortgage was the 10,007. So if I take the 8.92 times 12, we get about that 10,007. So in practice, you might actually first think about how much home you're purchasing, for example, and then the loan amount. So we kind of backed into the loan amount in this way to kind of tie into our data up top. And then we took our loan amount and we assumed that there's a 20% down payment. So if there's a 20% down payment, that means that we purchased, we purchased, or we're gonna finance 80%, one minus 20%. So we would have then, I can then get to my home cost 148.723 divided by the 80%, which would give us the 185.903 about for the home value. So in other words, in practice, you would probably run it this way. You would be looking at the home cost, the 185.903, and say, okay, I'm gonna assume a 20% down. So 185.903, I'm gonna have to put 20% down. There's the 0.2 for the 20%. There's the 37.181, which we kind of put in our data up top, the 37.181 here about. And then we're gonna say that means that if I had a house of 185.903 minus the 37.181, that would give us the 148.723 that we're going to finance. And so then I can build my amortization table. So now I'm gonna assume this data up top to build the amortization table, which looks something like this. It's a little overwhelming to look at, but we can see that we now have the interest and the loan decrease. Those are gonna help us to get these balances, the interest here and the equity. Now that's useful because it helps us to calculate our tax calculation for the interest and our equity calculation up top. The problem is that it's not even from year to year. So if I'm trying to look at cash flows over each year after this point in time, then it's gonna be difficult to do that comparison because those two numbers change. As you can see here, we've seen in prior presentations that interest and the loan decrease are changing. So it's nice to be able to break this out into a year by year breakout, which we can do in Excel using formulas or using a pivot table, which we do in Excel. We do this problem in Excel if you wanna check it out. And that's something you can't do as easily here. And then we can try to use this number to try to populate our data. So this might be the first thing we do to help figure out the annual mortgage payments, the interest portion and the growth in equity. So the annual mortgage payments pretty straightforward. It's gonna be the 10-7 and that doesn't change. So that's fairly easy to do. The interest, I'd have to calculate or add up the interest for the 12 months each time, which is gonna differ from year to year. Year one is different than year two and it's substantially different than year 30. So that means I'd have to say, okay, if I'm gonna try to average this so I can get a calculation on average from year to year, I gotta use something I used. That's why we used 8,000. So it might take like an average of some of these, of some of these years or something that would be around year seven. You might try to pick the one in the middle like in year 15. But most people start off using the first year, which is really only gonna be your benefit. That's like best case scenario because it's going downhill from there. If you're owning the home for 30 years, you might choose somewhere in the middle of this whole thing. If you're choosing, if you're only gonna own the home for a few years and you think you're gonna sell it after 10 years or something, you might try to take the middle number between one and 10 and there's formulas in Excel to help you do that so that you could automate this whole thing. Meaning I could pull this data from this table and try to pick the one in the middle so this will populate automatically and we could tie everything together if we so choose. And then the growth in equity is the same thing. This equity balance here, this represents how much on a year by year basis of this payment is going to the decrease in principle. That's important because the amount that decreases the principle is increasing our equity. Meaning the equity is the difference between the loan balance and the value of the home. If the value of the home stays the same and we pay down the loan, that's gonna increase our equity which increases our balance sheet. So this number, notice it changes though from year to year. So if I'm gonna pull this number over here, we got 2007 which is somewhere around here for year eight but you'd have to use some kind of, you could use some kind of median calculation or average calculation or something like that pulling from something like this year by year table. It's more difficult to get from the amortization table which it would be very difficult to try to determine which equity number would be appropriate depending on how long you're gonna be holding this. That's why it's a lot easier to do this in Excel, put together some table like this and we can start to draw the data from say the table which would be the better way to go. We could also do these tables with formulas or a pivot table which is nice. So that's just one kind of comparison method that you might take a look at. And so when you're thinking about a decision like these or any financial decisions you might try to break everything out to cash flows and try to compare the differences in the cash flows between the two items. You might try to present value those and then in this what we're talking about here is basically looking at the year by year cost to see if we can break out or think about the cash flows and benefits from a financial perspective from one decision compared to another decision after the initial purchase.


Listen now to the adventures of Sam Spade, starring Howard Duffin, the convertible keeper. Detective Agency. Me, sweetheart. Sam! I knew you'd have the turkeys to come back and face it. Well, I'm back, Evie. What shall I face first? You didn't do something else, did you, Sam? Besides what? Besides running away with that woman in a stolen car.  The car was stolen from her. You mean it was her own car? Well, not exactly, Evie.  Well, it must have been quite a car to be worth all that trouble. Well, it wasn't so much the car, Evie, is it? Bobby? Then I don't understand. Think it over, sweetheart. I'll be right down to dictate my report. Can't you take no-fun answers? And just what do you mean by that, Miss Perrine? Claw marks are the same. Wrong again, sweetheart. She said yes, I said no. Hence, discretion. I knew she was that type the minute she walked into this office. That ankle bracelet and green nail polish. Green nail polish. Well, cute colors. This one goes to homicide, Evie. Oh, not another murder, Sam. What else? Two detectable tenants and me from Samuel Stade with her license number 1-2-7-5-9-6. Subject, the convertible kicker. Dear Dundee, it has been a dull morning, but just before lunchtime, things began to brighten up. Her clothes looked like money, unless they were wrapped around, unless even better. She eased herself into the chair I pushed up for her, rattled about a thousand bucks with a charm bracelet at me, and after she'd arranged her legs, mouth, and eyes to our mutual satisfaction, she allowed me to hear the sound of her beautiful voice. I do not know whether you would be interested in my case or not, Mr. Stade. What's your mind at rest, Mr. Stade? It's rather sad. Who knows? Perhaps I am merely a waste of time. My time is your time to stay in the station, Mr. Stade. Oh, you are very impartial, very kind. And, Dundee, my automobile has been stolen. When and from where? Last night, after midnight, while I was taking in at the hotel stand after y'all, what I am saying, I foolishly left to pass outside with the keys in it. Have you reported this to the police? No. I suggest you do not. No. No? No. Oh, why not? Because I stole it from another. Oh, I see. No, but you do not yet know all. If the police find the card and notify the one from whom I stole it, then that one will know that I am a South African. And that's bad. Ah, he finds out. If he finds out I am a South African, then he will come here and kill me. That is why I must recover the car rapidly and without the police. You will be glad to meet me. It's a very pleasant, Mrs. Strada, but my car is not exactly in my line. You wish that I... I don't think anybody would murder you just by stealing your car. Oh, not for the car, no. Already, he tried to kill me once. Why three times? So I take the car and drive away rapidly. Go away from where? Mexico State of Chirara, where the pig resides who wishes to murder me. Why? Oh, he drinks, he becomes a beast. He accuses me of... Look, look here on my shoulder, the scar. Well, already he cuts me with a knife. Uh-huh. Now you have seen something that changes your mind about me, huh? You see that I am confused. Why, Mrs. Strada, I never had any doubts. Oh, please. I knew that friend. You would call me... me, OK? Yes, indeed. Oh, and now we are saying... Any car is hitting the pig. Hmm. Hey, what's this pig's name? Pig is the only name I will honor him with. Pig. Pig. Hmm. Yeah, what make a car is this? They answer. You know this kind of car? Yes, a foreign car. I've seen a few around. This must have set the pig back several thousand bucks. Huh, he steals everything. Listen, my darling, please notice. Around here is pink. With blue fenders. Uh-huh, not anymore. That's the first thing a car thief changes. The paint job. Any other distinguishing marks? Distinguishing marks. Yes. Ah, you think. Uh, each has a radio. You don't say. Uh-huh. And it has two windshield wipers. Uh-huh. Well, uh, I'll buzz around me too. If I find anything, I'll let you know. Uh, my C is... Yes. Yes, that's something else. I have no money. Oh, that's great. That's just great. But I am sincere. You said so. Look, my darling. Keep this. It is worth very much. See? This little charm alone. Platinum, said with diamonds, worth very much. You will keep it until I pay you, eh? I'll be your driver. I'll see you later. She thrust the charm places into my hand, fit me on the ear and the front it. I put a band-aid on it, ran some cold water over my head, rubbed myself with spits like a bourbon and examined the bracelet. The dangles she pointed out was a white metal disc with a monogram and diamonds to vertical bars with a horizontal and on top. It was the Greek letter pi or the initials pt, depending on who had stolen it from whom. I knew it was at least worth my fee. I dropped it into my pocket and went out. My first stop was over on Mission. A sign on the building says, masterpiece auto-painting, Joe Rembrandt, the pilot. Sam, long time no see. Hello, Joe. Got something you want painted? No, but I think you may have painted something I want. Sam, you know me. They drive them in the front. We spray the paint on them and push them out the back. No questions asked. That's quite a turnover, Joe. Yeah, we're going big time. Got the clues of now for the synagogue work in the hill. Is that right? Yeah. What are you looking for, Sam? A motor car? Could be. It's a custom job, foreign car. Here's what it looks like. Yeah, incredible. Sure, come in this morning. Two-colored job. Which two-colored? Canary yellow body, baby blue fender. Yeah, quite a car, Sam. Quite a snazzy heap. Heap, huh? Yeah. Tell what you want to know. It was. Happy Herman Heap was one of the biggest used car thieves in the city. As I got off the street car, and son of Happy Herman's lot, a slash of canary yellow paint caught my eye. I strolled down between the rows of cars and fondant. Yes, sir, heap's the name. Happy Herman Heap. Every car on this lot is in perfect mechanical condition. Take your choice. Kind of hard to choose, Herman. There's so many here. Yes, sir. It takes a heap of heaps to make a heap of heaps. Yeah. That yellow job with the blue fenders, then? Oh, yes, sir. But the motor in that car, it doesn't need some work. Now, over here. Does it run? Oh, yes, it'll run. But over here. This is more of what I want. Let me try. Sounds all right to me. Oh, idling, yes. But it needs some work in the transmission of the differential. Mind if I drive it around the block? Well, the mechanics work just about to work on it. Besides this, I'm afraid this car is more than you care to invest. Well, let me try it out anyway. Here, I'll leave it a pocket. I raced in my pocket for Meach's charm bracelet. He took one look at it, and his expression changed. Well, why didn't you say so? No, the pocket is necessary. You can charge yours. Drive it and charge your life. Thank you, Herman Heap. I took him in his word. I put the magic bracelet in my pocket, drove back to O'Farrell Street, parked in front of the San Rafael Hotel, slipped the doorman a buck to wash it for me, and went on into the lobby. The desk clerk said that Senorita Estrada had checked out 30 minutes before, leaving no address. I found the house-tick in the bar, and asked him for a run-down. Yeah, I remember very, Sam. Very nice day. Any callers, Simon?  Who were they? You won't believe it, Sam. One of them was Tom Tom Carey. What's he doing in San Francisco? He's one of the murderers. I don't know, but there must be plenty in it if he's brought him back across the border. He's staying here? Yeah, room 613.  Anything at all, Sam. There's a car parked outside in the loading zone here, stored in a hotel garage for me. When you're upstairs, as far out of sight as you can get it. I went upstairs, and rang the buzzer at room 613. The door was opened by a little dark, complexed man with hard eyes and Indian features. There was a mean-looking knife in his hand, but he put it away at a nod from Tom Tom Carey. How'd you find out I was in town? Not from me, chief. I don't know how much he told you, Sam, but if he told you this much, he was 11. It's a million-dollar caper. And you know some of the things I've done for life. What's in it for me? What'd she pay you? Nothing. She left this charm bracelet in the pocket. Now, boss, I cut him now. Give me that bracelet. Uh-uh. Watch it, Tom. Don't crowd me. I got something bigger than this, so you wouldn't be here. All right, Sam. What do you want? I want to hear you talk. I guess you know I've been down Mexico way. I'm listening. I got a little business here in the garage. Running hot cars across the border in the states? We cool them off. Little buddy raked in his serial number. Like plastic surgery. Sounds like a good business. He shouldn't be neglecting it. You've met the Dane.  I was out of my trouble. I scared her. I didn't mean anything. I thought I could carry her and sit her around. I let Pa go and make her shoulder a little bit. Oh, just a little bit? Yeah. I figured her wrong. I know that. If I could see her for five minutes, just to talk to her. I know it'd be okay. I can't help you, Tom. Tom, I want to talk to her myself. That's when she hasn't got a penny. Only that car. She figures I'm peddling that, not me more. You already told her? Some car thieves took it. She hired me to price it. Maybe he drove from a strange country. I'd look good to her. Here's a thousand bucks, Tom. A sudden, Tom. Nothing. When you hear again, give her that bracelet back. It was a present from me. And whatever you do, don't find their car. Okay, Tom. Tom, it's a promise. Only one thing I don't understand. You said it was a million-dollar caper. I meant that. She's worth a million bucks to me, Tom. The girl, Tom Tom, or the car? Although I wish you hadn't asked that question, Tom. I really do. Back to the convertible caper. Tonight's adventure with Sam Spade. When Tom Tom Kerry said a million-dollar caper, he meant just that. He never risked a rap to less than a hundred grand and no dame that ever lived was worth more to him than a hot mink coat. If Nietzsche wasn't a million-dollar package, the car was. I didn't know what was in it. Tom Tom, it might be diamonds, dope, smuggled Chinese, or just plain money. So I went back to the hotel garage. I climbed the long-curving ramp to the second floor and found the canary yellow of the ends of the convertible crowded in behind four ranks of cars at the rear of the building instead of the workhouse. Nothing in the luggage trunk, nothing under the seats, under the upholstery and the door panels, nothing anywhere. Then I got tiny stover and the two of us went over the second time. Ah, it's a cold knee to say it's not. I know it's not nothing tiny. What's different about this car? Solid, they're built in most good bodywork. I don't know. Hey, here's something. What?  Let me see that. Yeah, right here. It curves under, see? Well, yeah, yeah. What's that you got? It's an umbrella. Did you say this dangle on here was what was cut out of that fender? Let me see. It fits. Fits even occur. Yeah. What does it mean, Sam? The dangle on the brakes. What a solid platinum. Hey, Sam, you trying to tell me defenders on this heap are solid platinum. You got a pocket knife, Sam? Yeah. Yeah. Yeah, yeah. Nice. It shines. Sam, is this a hot car? I didn't answer him. I didn't have to. He looked in the gray white gleam in the bracelet charm of a square of paint I had scraped off the fender and answered the question himself. Meach is convertible. It was convertible in more ways than one. It's about the hottest car in San Francisco as of that moment. After I left the garage, I tried to phone Tom Tom, but he wasn't in. I had an uncomfortable feeling he was out looking for me. He was. As I stepped out of the phone booth, there was a rush of air past my left ear. A knife stuck in the wood less than an inch west of him. He came out of the street and found a seam duck around the corner into an alley. I ran after him. I crawled in and stood him up against the wall. Let me go. Let me go. I cut you down. What do you know about that car? Cut. What do you know about that car? Cut. Come on. I'm talking. You get more of this. I don't know nothing. They don't tell me nothing. Where's Meach? I don't know. Meach, you don't know nothing either. Only Tom Tom and. Tom Tom and who else? I don't talk no more. They're cutting you in? I don't need no cut. The boss, he pays me good. 40 pesos. Sometimes more. Work for me and I'll cut you in. I cut you for faces. The boss pays me good. Sure.  There's no trouble. You'll take the wrap. What means wrap?  You fall dead. Gas? Tom Tom do this? He does indeed. Venga. Tom. I thank you to see the man. It's an honor. I thank you. I think he will be very happy to see you. This Paco took me through. It was about as high on Russian Hill as you can get. The house was old, based in Brownstone. It had a high iron pencil on it. And the gate was amazing. H-H lovely. When I opened it to go in, I noticed that Paco was no longer with me. Mr. Stade, come in. Come in. The gray-haired gentleman who greeted me was wearing a wing collar, a carnation and a very distinguished hair. I could hardly believe it, but he was definitely beyond the shadow of a doubt. None other than the one and only Happy Herman Heath. Well, Mr. Stade, I see that you're surprised. I'm overwhelmed, Mr. Heath. Lovely. Lovely. That is the correct name. For my first application, I selected my first and second names, the H-H, you know. My full name is Herman Heath Lovelace. About that car, Mr. Stade. Yeah, about that. I must have known that you outwitted me. I was not proud of my little device, the disc on the charm faces, you know. When you showed it to me at the, uh, my business establishment, I naturally thought you authorized the ticks to car. Yeah, naturally. However, I'm not averse to enterprise in the young man, and I'm prepared to pay for my blunder. You said a million. I still couldn't accept, Mr. Lovelace. Oh, why not? I was hired to recover that car for my client. It's not mine to sell. Well, it's certainly not hers. I don't care whose it is. All I know is that my client's life is in danger and it has something to do with that car. Mr. Stade, rather. Yeah. Excuse me one moment. Please. It's all right. Hello, Papa. That's all she said. And she stood there looking at me in that way that made you not care who she was double crossing or why. And she turned to, uh, Lovelace, alias, Herman Heap. How much did you know? At last, everything I fear. He has agreed to a term? Yes. Good. I must have my bracelet back now, Sam. Sure. It's right here in my... I reached in my coat pocket but a charm bracelet should give me the key for it. It wasn't there. It wasn't any of my pockets. I guessed that it was in one of Paco's pockets. Meet you, watch me, fumbling her eyes, blazing with anger. Ooh. You have lost it. We are helpless without them. I thought it was the car you wanted. Please, please, one thing at a time. I can guess that we first gained possession of the car. Yes, Lovelace. You are right. First, the car. This is the car at last. A princess in vulgar raiment but still a princess. No royal coach carrying a king or a coronation ever held such riches. Oh, you talk too much. Oh, I do. Well, take your place at the wheel, Richard. We shall drive out of here into a splendid future. After you, Mr. Spade. Oh, no, Mr. Heap. After you. Ironic, isn't it, that with all my very interest, I've never learned to drive a car. That's a buckle vehicle. You seem kind of shaky, Richard. Are you sure you can handle the car down the ramp? I'm very good driver, Waffle. Stop, put on your brakes. There's a man coming up the ramp. As I leaned over, I saw the bracelet lying beside his hand. I picked it up and walked back to the car. Richard and Herman Heap Lovelace were sitting in stony silence, glaring at each other. Is he dead? Yeah. What, the bracelet on him? I didn't look. Lovelace, go and trace him. Must I? It's merely distasteful to me. Come, Mr. Spade. You fool, we trust this detective. Go on. I'm getting well. Get in, Sam. Get in. We live in here. What's the matter? Is something wrong? Oh, nothing at all. Come back here! This is an outbreak. I didn't expect... Waffle, a cigarette. Sure, sure. Here you are. I, uh... I saw you pick up the bracelet. I meant that you should share it with me. That is why I gave you the bracelet in the first place. I liked you. Couldn't have been because you were safe as long as Tom Tom didn't know where the bracelet was and you had to kill somebody for it. It would be me. Please, Carita, what does it matter now? We are together. We have the car. We have the bracelet. And the kid is dead. That's what worries me. Surely you do not think I meant to kid him? Of course not. You've put just slips. You've stepped in the gas by accident. Yes. Yes, that was you. It was six, sweetheart. Not with me. But with the police? My story won't help you. I don't know enough. Oh? Then I tell you everything. I was with Tom Tom for a year. I hated him 365 days. I tried to run away. Always that Paco came after and brought me back. Then, Senor Lovelace came with the car. Senor Lovelace had much money, but he could not take it from the country. So he bought sold platinum. Some he received from refugees who had sent their fortunes abroad in that form. But there was no safe way to get it across the border. So for a cut, Tom Tom had the platinum made into fenders and welded onto the car. Why was the bracelet so important? It was too dangerous for Lovelace to bargain directly. Tom Tom was to get the money for the platinum and give the little piece of the fender at the token. Lovelace would know who to give the car to when they showed it to him.  I don't care, darling. Even if you try to steal it, now we understand each other, no? You are tougher than Tom Tom, I think. Well, now we have everything for ourselves, you and me. What do we care for the others, huh? You make a good pitch, sweetheart. You look beautiful while you're making it. But I know I keep driving. What do you mean? Pull over. I'm driving the seat back to the city. No. I said pull over. I won't let you do it.  Say it easy.    Yes or no? You're nuts. Answer me. The answer is no. Well, no. You will see I mean what I say. We ran a defend in the road. There was a point ahead with a sheer 300 foot drop to the sea. She jerked the car away from the pavement and steered straight at it. I grabbed the wheel and pushed it. The car skidded on gravel and slid sideways toward the cliff. I got the door open and tried to yank her out with me. She held on and kicked me until I rolled free. She didn't look very beautiful when I saw her for the last time. And the plushy convertible was a pilot junk. Very expensive junk, but junk all the same. I understand the federal men have confiscated the platinum and are holding lovelace for questioning. I doubt it'll crack. Nobody can embarrass a used car salesman. Period. End of report. Sam, do you really like this racket we're in? I hate it. So do I. But don't let's ever go in with any other racket. It's a promise, sweetheart. Why? I'll never know. No reason. Good night, Sam. Good night, sweetheart. The adventures of Sam Spade, Dashel Hammett's famous private detective, was written for radio by Bob Tormund and Gil Dowd, with musical direction by Lud Bluskin. Sam Spade is played by Howard Duff. Blurring Tuttle is Effie. Tonight's program was directed by Elliot Lewis.


Hi, myself, Suresh. That's me. So I work at Red Hat. I work on a tool known as Odo, which helps developer to work with OpenShift. Apart from that, I'm a CNSIP ambassador and organizes the Bangalore Kubernetes Meetup. So if you're around Bangalore, let me know. Yeah. So I'm going to talk about CubeCTL, which is a Kubernetes CLI. So I assume all of you are familiar with the Kubernetes and its CLI CubeCTL. So it's the disclaimer. There's no rocket science as the talk title is. So yeah, let's start. So before that, recently community, Ashley McNamara from community has created a nice logo for the CubeCTL. So that's the logo for CubeCTL. Then, yeah, so how do you guys read CubeCTL? So just shout out if you have any different pronunciation or something. Okay, anything else? Okay. So yeah, some people call it as CubeCTL, CubeControl, CubeCuttle, CubeCuttle. So yeah, different, different pronunciation for the same. So yeah, so pre-flight, I mean, when you start. So that's something known as autocompletion with the CubeCTL. So if you add this line into your BASA-C, it helps you to autocompletion, which kind of increase your productivity while working with Kubernetes. So like, and yeah, if you have ZSH, there's also a support for ZSH also, you just need to add this line. So this autocompletion works for the verb. So verb that means like CubeCTL get create anything. Also, it works for the resources also, let's say CubeCTL get parts, deployments or whatever. And also it works for the flag. So it is like one of the cool stuff which which increases your speed while working with Kubernetes. Yeah, so that's about autocompletion stuff. Then next is editor. I mean, if if you add this line into your BASA-C, it helps you to have your own editor. I mean, let's say you are editing something or you are you want to edit some YAML with the help of CubeCTL. Let's say I wrote here, G-Edit, you can write Emacs, WIM code, whatever you want. So it's it's kind of useful and much helpful when you work. So next is about alias. So all the things that I'm going to talk about, it's all a suggestions which helps you to work more better with Kubernetes. So that's alias.  I mean, when you set, let's say K with CubeCTL, it's easy to type K get parts like that. And Ahmed from the Kubernetes community has wrote a nice blog on CubeCTL aliases. And he also has a nice project with generate around 600 aliases which helps while working. Next is about PS1. So PS1 is this nice line in the terminal which helps. So like this. So I have my cluster IP and my namespace along with my PS1. So it helps when you work with the multiple clusters. So it's my PS1, something like this, but you can create your own also. So there's some cool project known as QPS1. You can use this project to set some fancy PS1 for you. It helps. I mean, rather than just going to just look at like CubeCTL config view just to see which cluster you are on or which namespace you're on, you can just set this. And now all the BASRC stuff are done. You are ready to work. Then next hack is about, let's say, there's some resource and you want to know something about some resource. Rather than going to the doc, let's say, in a previous days in the Linux, we used to have a man pages. So similarly, you don't need to go to documentation. You can just do explain. So let's say CubeCTL explain. So you can do CubeCTL explain pod, deployment, spec, anything. So maybe I can quickly show you how that works. So let's say you want to see what all the keys are there in the pod. You can just do explain on the pod. Maybe you want to see, let's say, what's there in the pod spec. You can check with all the descriptions also. So it's very helpful when you don't know some key or something. You can go and read from the same terminal. You don't need to go to documentation for this. And thus, this is very helpful when you know the key, but you forgot, I mean, you know the resource, but you forgot something and you just need that key. So what you can do is you can do CubeCTL explain pod and let's say recursive.  I mean, it's very helpful. Personally, I found it very useful to find some key. So yeah, that's about resource. Then there's a nice feature also DryRun. If you're familiar with Ansible, Ansible also has something similar as DryRun. So DryRun is like if you are creating something and you're not sure about whether your YAML is correct or maybe you're not sure that you're creating the right resource, you can just have a DryRun. It will not deploy anything, it will just, virtually it will try to do something and you can be sure about it. I mean, okay, so I can create this object. So for example, so let's say if I'm trying to create a config map, if I give up flag DryRun, it just say it created and DryRun. That means whatever command I run was correct. Also one of the advantage of DryRun is you just provide hyphen of flag and you get the YAML for the same, which is like you can export and maybe store it somewhere. Next is about edit while you create. It's also one of the useful commands. So let's say for example, you have some file or a URL, you can like simply while creating, you can simply provide this flag and it opens editor and you can, let's say, edit and save it and it will, it will deploy that new changes. So I already have that part, so it's a, it gives me an error but it also, it is also a useful flag because you have some file, you don't want to make change to that file but while deploying, you want some changes to try out some, to debug. So this flag is very useful. Next is copy. So I have seen some people, what they do is like, okay, so they will take a SSH access of that container and they will download something, even if they have file on their machine. So instead of that, you can just use kubectlcp. It's very similar to what CP or like R sync or something. It's very similar to that. So it is also useful while you are developing something or you are working on some application. And yeah, so this was all about like a normal commands and let's talk about a bit kubconfig. So kubconfig is a configuration file which contains all the information talked to a specific cluster. So those are the precedents of the flag where let's say you provide a hyphen hyphen kubconfig flag, maybe the kubconfig environment variable or maybe the default kubconfig file inside your .kub directory. So let's say you still have this file in your home directory but if you have some random cluster, you want to just try out, you provide with the flag. It has a first preference. So you can do that. Next is about porting the kubconfig. So let's say you have some cluster and you want to give access to someone and so for that you need to port your kubconfig file. So how you can do that? So let's say for example, you have a sample kubconfig file here which has let's say all certificates client, cert and key path are there. All the contacts are there. But those certs and the key are present on my machine, not on the next person machine. So what I can do is kubconfig view. So that's something known as flatten. So I'll show you what flatten does. So it takes that certificate or key or whatever, it just dump into that file and it gives you this file. So you just redirect this output into some file and you can like easily port your kubconfig and give it to someone to access your cluster. And so this one nice flag known as minify. So the title is just the current context. That means let's say you have a multiple clusters with a multiple namespace, but you just want to provide the current namespace and the let's say current cluster. So along with the flatten, you just provide this minify flag. It just provide the current context. So that you just provide the one cluster while porting the kubconfig. Then there's one cool thing about kubconfig. It's not well known also that if you have a multiple clusters with a multiple kubconfig file, but you want to use all those things at once, you can just export a variable like this. Just kubconfig 1 colon kubconfig 2 and your kubctl knows the both kubconfig now and it can work accordingly. So that's about it. I mean two kubconfig if you have. Let's say you're not okay with it. So what you can do is you can do the same thing with this command kubctl config view and just this flag merge which merges the both kubconfig file and set the right context. And then you have a new kubconfig file which you can give it to someone or maybe you can use yourself. So this is about kubconfig. So again the Ahmed guy from Kubernetes community has wrote a nice blog about mastering kubconfig. It also has nice things, nice tricks about kubconfig, how you can deal with it. So next level, I mean so we're done with the Basasi with our basic stuff. Then we saw some nice commands which can help us. So let's go to next level. So next level is accessing Kubernetes API. So usually what people do is they'll do something like kubctl proxy and then they will go and access the API but instead of that you can just do kubctl getraw and you can access it. So let's say kubctl getraw slash. So you can access all the APIs here. Let's say you can do api slash v1. So maybe you want to debug something or maybe you want to see something from the YAML. So you can use this raw function. I found it very useful while taking some API parts or something. So next is about logging while running some commands. I found those log level very useful. For example v9 gives you the curl command which you can use, v8 gives you the request and response body and v6 gives you the method and API path. So let's say for example, so I have this nginx1 pod. If I do v6, it gives me the path. So let's say this path. Now I can use this same path with hyphen hyphen raw also to retrieve the JSON and to play around it. So let's say for example and similarly if you see v8, you get the request headers, response body, everything. It is much useful for the debugging purpose when you are developing some tooling around Kubernetes. So it is very useful there. And next one is crue. So the thing is to add your own stuff, people used to write some their own shell script, some own Golang code or something to have their own hack around Kubernetes. So the community added this new tool known as crue. So crue is basically a package manager for the plugin. So it's very similar. You can just do crue search. You can search from all the plugins by the community or maybe you can create your own also. So it's very simple. You just do install this plugin. It's very simple. Search it and install the plugin and you are ready to use. Let's say cube ctl xyz and let's say you want to, like once you have a crue installed on your machine, what you can do is if you have your own shell script or any script which talks to Kubernetes cluster, any hack, just rename it to cube ctl hyphen let's say xyz and put it in your path and you are ready to use just like cube ctl xyz. So I created for myself which is cube ctl status. So I work around OpenShift mainly. So OpenShift has this command known as OC status, but so I'm much familiar with that. So I created my own which is a cube ctl status. So I can check, let's say, cube ctl status. Currently it just shows the deployment for me. So it's very similar to how OC status works with OpenShift. So anyone can create their own sub command for this cube ctl. So and the last is output. If you want the output in a nice format you can, there are like n number of options we can go through. Usually we are just familiar with JSON and YAML, but there are much more greater formats like JSON path or maybe custom columns you can use. So that's a nice collection of all those output hacks are there at this link by Vincent Dismit. So Vincent Dismit is an organizer for Kubernetes met up here in Bangalore, sorry, in Singapore. And if you need more help, there are like a bunch of tools. Mainly I found this very interesting, cube ctl, but there are n number of tools on the internet. You can search for it. So I guess that's it for my talk. So if you need this slide, if you find it useful, so I created this nice URL just redirects to this slide. It's very simple for satiate2019.sourage.pro. So yeah, if you need slide just go to this URL. Thank you. And if you want to talk about Kubernetes or maybe anything about it, I'm around in the exhibition hall. If you don't find me, that's my Twitter and LinkedIn, you can just ping me there. Thank you. I've been scheduled for Q&A, so if there are any questions, any questions? Okay. I won't excuse to throw the microphone. Nope. Oh, come on. Nobody uses Kubernetes. We're in a cloud session and no one has questions about cube ctl. Okay. Yeah, if you have anything to talk around Kubernetes, I'm around. Catch me, we'll talk. Yeah. Thanks a lot. Many thanks.


Coming up on DTNs, could NFTs help people circumvent Hollywood? What life is like with a chronological Facebook feed, and how Apple is hurting advertisers? This is the Daily Tech News for Friday, October 22nd, 2021 in Los Angeles. I'm Tom Merritt. And I'm Chris Ashley. Drawing the top tech stories from Cleveland. I'm Len Peralta. And I'm Roger Sheik. This show is pretty. We were just having a wide conversation on the benefits and disadvantages of eating at Panera and Taco Bell. If you like that expanded show, get good day internet. Become a patron at patreon.com slash DTNs. That's where you can join our top patrons like Paul Teeson, Ollie Sanjabi, and Andrew Bradley. Let's start with a few tech things you should know. You may be under the impression that the US bans sales of chips to Huawei. That's not exactly the case. The US requires you to get a license if you want to sell chips and certain other kinds of products to Huawei. Thursday, US House Representative Michael McCall of Texas got permission from the House Foreign Affairs Committee to release data from the US Department of Commerce about how many licenses have been issued. From November 9th, 2020 through April 20th of this year, the US granted 113 export licenses to sell about $61 billion worth of products to Huawei. So now you know. AMD's latest chipset driver resolves performance issues on Ryzen processors running Windows 11. Microsoft also began rolling out Windows Update to resolve increased L3 cache latency with Ryzen processors on the new OS. A lot of people were waiting for that fix. Twitter publicly released the results of its internal investigation on what effect its algorithm has on amplifying political speech. This is when its algorithm adds it to your feed. Like, oh, we think you'd be interested in this. It analyzed tweets between April 1st and August 15th, 2020 from political parties and news outlets in Canada, France, Germany, Japan, Spain, the UK, and the US. It categorized the politics of a tweet based on public third-party sources. You know, like, I'm a member of this party, that kind of thing. It didn't make it up itself or guess. They did not find that the algorithm amplified extreme content, more than mainstream content, but they did find that the algorithm amplified right-leaning content a little more than left-leaning content. They did not determine whether this was a bias in the algorithm itself, might be, might not, or if the people creating right-leaning content are just better at using the system and getting amplified. Or if there's more engagement there. Yeah, yeah. So Apple introduced a new set of App Store guidelines with three key changes. One clarifies the developers are allowed to communicate with their customers about other payment methods. This is the result of the settlement of a class action settlement with US developers. So there you go. Apple said it will not take a commission on purchases made outside of its App Store system. Another change clarifies that developers can ask for name and email addresses as long as it's optional and won't prevent use of the app. They deleted a clause prohibiting using information obtained within the app to communicate about outside purchase options. The third change details the use for a new App Store feature called in-app events rolling out next week. That's it, that's the end. Everybody will just go buy outside the App Store now. It's all over. 3,000 App Stores, there we come. And the US NTSB updated its preliminary investigation report on the fatal crash in Spring, Texas of a Tesla that happened back on April 17th of this year. This is the one that indicated people might have left the driver's seat unoccupied while the autopilot function was running, something that should have been prevented by Tesla's system. The preliminary report has now been updated to indicate that the deformation of the steering wheel seems to have been partly caused by an impact and that along with data from the event data recorder indicate the drivers and passenger seats were occupied and the seat belt buckled when the crash occurred. Thanks to James C. Smith for tipping us up on this update. The conclusions are still subject to change until a final report is published, but now you know the latest. All right, let's talk a little about Intel. Intel beat expectations on earnings per share last quarter but fell short on total revenue. Net profit overall rose 60% on the quarter. So not bad, but the devil's in the details. It's client computing group revenue which includes PC chips down 2% on the year. That was mostly caused by a 5% drop in notebook chip sales due to the ongoing chip shortage. And side note, Intel CEO, Pat Gelsinger said, we're in the worst of it now regarding the chip shortage. Every quarter next year will get incrementally better, but they're not gonna have supply-demand balance until 2023. You hear some positive spins on this and you hear some negative spins, but they're all pretty much saying either like, hey, it's gonna keep getting better every quarter and we'll be in the clear in 2023 or like Gelsinger like, it's not gonna get better until 2023. It might get a little incrementally better, but... All I heard was buckle up. Yeah, pretty much. Okay, that's the short-tune nerves for Intel. Here's the long term. Gelsinger made some interesting comments in the earnings call. Intel is expanding its contract manufacturing, going from making only its own chips to working with other companies to make their chips. They've tried this before, but they're really serious about it this town. Intel is in the middle of its transition under Gelsinger, or maybe not even in the middle. During the earnings call, Gelsinger said the contract manufacturing business will have little impact in the next couple of years. Again, keep those seatbelts buckled. Gelsinger said that they will, quote, really deliver in years four and five and in the second half of the decade more significantly. So he's preparing people like, don't expect our foundries to just start pouring in the cash right away. We're doing this right and it's gonna take time. Intel also wants to regain the leadership position in chip sales, that might happen a little sooner, but it's still gonna cost you. Gelsinger plans to run the company's gross margins below current levels for the next two to three years. Another thing that investors don't like to hear, he said it'll still be comfortably above 50%, but that's mostly down to capital spending of 25 to $28 billion next year. They're building new fabs, they're pouring money into research and development. In the end, Intel's biggest obstacle is TSMC, the leading foundry in the world. TSMC's advantage is long experience in meeting customer expectations. Intel has been its only foundry customer, only real foundry customer up till now. And Intel needs to gain trust. TSMC doesn't make its own chips. So customers never have to worry that any intelligence will leak over into competing projects. To meet those challenges Intel Foundry Services has been created as a standalone business reporting directly to Gelsinger. So it's kind of a startup. One more move that could help would be to acquire another foundry business. There's been lots of rumors about Intel acquiring global foundries that has never materialized, but never say never. But essentially Intel Gelsinger saying, Chris, we got a long way to go. He's trying to say we're gonna make it, but it's not gonna happen overnight. Have some patience, folks. Yeah, this is a very interesting thing because it's nice to see a business that was kind of shaky for the last couple of years. Everybody was counting them out with Apple coming out with their chip to find an avenue that they could potentially pivot in and go another direction and get healthy again. So that's what I'm reading out of this is like, look, if we can become the center point for making many other folks chips, perhaps that's the new way. Much like when Microsoft did it pivoting to the cloud Office 365. Yeah, that's a good comparison. There's a really good article from Ars Technica on all of this. If you really want to get the lay of the land on this, there's also a pretty good description of this from the Verge and protocol as well. We'll have links to all that in the show notes, but the short version is really it's hard to compete. It's hard for anybody to compete with TSMC right now. And if anybody can, it's Intel. They have a lot of disadvantages in not having been in this game, but they also are the only ones big enough to maybe really make a go of it. So that'll be interesting to watch. Yeah. So nobody yet knows what NFTs will be good for, but I think it's too short-sighted to dismiss them out of hand. Just because there are a lot of, shall we say, less honest things being done with them, that would be like dismissing the internet in 1995 because there were scammers on use net. So let's look at the interesting example of how NFTs are being used. It may or may not be the thing for NFTs, but it's interesting to consider. Protocol has a profile with interview with Erica Alexander who played Maxine Shaw on the TV show Living Single back in the nineties. And I love that show with Queen Latifah and the character Obi, great show. I used to watch it all the time. So Alexander is working with an NFT platform called Curio to extend the universe of a sci-fi graphic novel called Concrete Park that she created with Tony Perrier. They created the novel in a response to a TV executive turning down the same story as a TV show premise because the executive believed black people don't see themselves in the future. Concrete Park started offering NFTs based on the graphic novel's characters in July. Those sold out quickly. So they created 7,000 more NFTs called Bangers that are avatars with unique traits and characteristics that aren't in the novel but fit in its world. Now begins the big challenge of creating a roadmap for the people participating in the community. Alexander talks with engaging fans one-on-one in the space. Where do you think this could go, Tom? I'm a big fan of people telling you you can't do something because, you know, like you can't do this TV show because black people don't see themselves in the future or you can't make money at a daily show about technology news.  And so I love this story. I love that Alexander went and said, hey, there's a lot of technology out there. We can just leapfrog in front of the old system and show them what we can do. So I love that they're trying this. I love that they not only made a graphic novel of their premise to show that there was an appetite for the story but then said, let's do more than that. Let's give people a chance to participate in the story. I'm still waiting and I'm still curious how they're going to proceed from here, right? We're still in the first two steps, which is we've created the characters and issued NFTs for those. We've created an expanded universe, so to speak, with these 7,000 bangers that people can get. And now it's like, okay, cool. What are you gonna do with that? Is it a game? Is it a social network? Is it a participatory story? There's all kinds of things they can do with it. I don't know where it's gonna go next but I'm very curious to see if it goes somewhere. Like you said, this may not be the thing that works but there's so many different ways to approach using the non-fungible token. The thing that says we can verify something unique on the internet. We can verify a unique digital file. There's so many cool things you can do with that. Yeah, so for me, and I agree with you wholeheartedly I love the fact that her and her teammate there just said, you know what, we're gonna do this ourselves. But what I'm hoping actually happens is more people attempt to take down the gatekeepers because it's so important for not just minorities in Hollywood and other businesses. You gotta break these gatekeepers down so that you can continue to do your own thing. Unfortunately, sometimes it goes left when you like Uber or something like that. Let's take down the taxi companies and the minorities they have and then they start being not the greatest company to their people. But I just like to see opportunities like this present itself and people take advantage of it and kick the door down. Yeah, that's why I don't like to dismiss the NFTs as just like, ah, it's a pyramid scheme. It absolutely can be used as a pyramid scheme and people are doing that. I'm not trying to deny that. But there's something else that's useful for and somebody's gonna hit on it. I'm not saying it's this. I'm not saying it's not this. Maybe it is. I don't know. Yeah, for sure. Wired's Brian Barrett has an article up called I Used Facebook Without the Algorithm and You Can Too. Barrett focused on Francis Hogan's testimony to the US Congress where she said quote, I'm a strong proponent of chronological ranking ordering by time with a little bit of spam demotion. We should have software that is human-scaled where humans have conversations together, not computers facilitating who we get to hear from. Now anyone can experience what that's like right now. On your desktop, click Most Recent in the left-hand pane of Facebook. Mine was under a C-more arrow. And on mobile, you have to tap the hamburger menu, those three lines, and then tap Most Recent. And then you get chronological. Facebook doesn't let you make that the default. You can bookmark facebook.com slash question mark SK equals H underscore CHR. We'll have that in the show notes. That would let you go to the chronological view every time you click it, but that doesn't help you use the app. Anyway, if you wanna try it out, you can. And Barrett did. He noticed that when he viewed chronologically, the newsfeed reflected the percentage of people he followed versus brands. He follows a lot more brands. And in chronological order, he saw mostly brand posts because that's who he follows. The algorithm filled his newsfeed with posts from his friends, so it balanced it more. But even then, he noticed that his actual friends did not seem to post much compared to the brands. He said, at any given moment, the bulk of posts appearing organically in my feed were from the same half dozen people, none of whom I'm especially close with. However, in the algorithmic feed, he was seeing friends he was interested in, but sometimes the posts were four or five days old. Another thing he noticed was how news differed in the chronological feed, the death of Secretary Colin Powell was posted many times by multiple sources, giving him a choice of which one to read, whereas the algorithmic version chose one to give him for him. Another thing about the chronological view was he didn't see sponsored or recommended posts artificially inserted. And in the end, here's what Barrett concluded after his experiment. The algorithm is there to show you who Facebook thinks you are, but also to hide what Facebook knows it is. A little, empty, sad place where a few voices get the most attention no matter what it is they have to say. Ouch. So this is very interesting for folks. The problem is most people that we know in our lives that should do something like this will never do anything like this because it's already too complicated for them to make this switch, right? Well, and it doesn't stick either. You have to do it every time or do that bookmark thing. And so it's too complicated for most people. Yeah, so, but I don't use Facebook enough for me personally.  I was able to find my long lost niece who I hadn't seen in 20 years because of Facebook. I got a message out of the blue. It's like, I think you're my uncle and we just lost contact with her mother for years. And so it kind of always has like a little hitch to me. But yeah, I definitely recognize the issue in the echo chamber that's created. So being able just to see recent posts, maybe you would lessen the amount of foolishness that you see that are driving such a divide between friends. Now I wanna say, I tried this today. So rarely go into Facebook. And when I do go into Facebook, I'll be honest, it's either the look at the DTNS page or the SMR podcast page. So the algorithm showed me three posts related to Chris here about barbecue and tech and the SMR podcast. And then also gave me a post about Pixel 6, 21 hour old post from a friend whose father had passed away, two day old cartoon from Scott Johnson. The chronological version was two CBS news articles and almost entirely posts from a group I follow called Numtot that I'd forgotten I even followed, but apparently they just post a lot. Who says Facebook doesn't put the important information up there? It was a good half a dozen posts before I got to Alison's husband posting a birthday wish. I was like, oh, look, somebody I actually know. Yeah, I made the switch just a second ago just to kind of see and it was definitely but a bunch of posts from friends. But I honestly, I think I've trained myself to just ignore stuff that comes in that I would just don't pay attention to. So I'd have to really pay attention to see if I may, if it makes that much of a difference for me personally. It was interesting to me that Barrett noted that he didn't see a lot of posts from his friends. And I also noticed that too. That a lack of friends? Yeah, maybe it's just we both have our friends. That's a perfectly reasonable explanation. I don't know, maybe Facebook's a ghost town where brands are just talking to each other. I don't know. Oh, that'd be funny. Everybody's just using it for marketplace and birthday reminders like Stoic Squirrel says he does. Oh, I'm sorry, that was bio-cow said that, but still, yeah. Anyway, let us know if you try this experiment, what you find out, feedback at dailytechnewshow.com. Now listen, we know you are listening to the ad-free feed on Patreon, but not everybody is. So here's what we want you to do. Remind the folks, if you hear them listening to the public feed, that they can get a personal RSS feed supported directly by them at dailytechnewshow.com slash Patreon. Back in April, Apple rolled out a change to iOS that requires apps to get user consent before sharing data about them with third parties. Those third parties usually would be ad surfaces that can use that data to better target advertisements not only on iOS, but other platforms as well. Wall Street Journal has an overview of how Apple's privacy policy on ad tracking is affecting businesses since it rolled out. App analytics tracker Flurry, for instance, estimates US users opt into tracking because you have to pick, it gives you a pop-up. US users will say, yeah, go ahead and track me 16% of the time when they encounter that prompt. You think that's higher or low? I think that's probably spot on. I think it's, I think I would have guessed 20, so it's not too far off, yeah. One of the effects is that without the Apple's user data, there are fewer users that can be precisely targeted. Think about it. If Apple users, most of them are saying, nope, don't track me anymore, then when you wanna say, I want an advertisement targeted to people who game and like drafts, there's fewer of them in that data set now, because a bunch of people opted out. That means the cost to deliver ads to those remaining users goes up. That's just simple supply and demand. A company called GetSticks, which sells pregnancy and fertility tests, told the Wall Street Journal their acquisition costs for users has tripled. They pay three times as much in advertising to get a new user as they used to. So they reacted by shifting their ads off of Facebook and taking them to TikTok and email as well as trying to tweak their Facebook ads to get a bigger boost from the algorithm. I think the secret is right there. You're gonna see a learning curve here and this is gonna start to fix itself a little bit. Now, those are anecdotal examples, but Snap Inc said in its earnings report Thursday that it made a billion dollars in revenue, but that was three million shy of what it expected due in part to a fall in its advertising business and it attributed that to changes by Apple. It said it expects to have slower growth this next quarter because of those changes. Another effect of this is less accuracy in measuring an ad's effectiveness. Since you can't track an Apple user that has said they don't wanna be tracked, when that Apple user goes and buys something on a website, there's no way to know if they saw your ad or not because you can't compare the pixels and go, oh yeah, that's that same person. And finally, another criticism being levity at Apple is that the change benefits Apple's own ad business because Apple sells ads in their app store and they track you through iOS, but Apple points out they ask for your permission when you set up your phone. You may be more likely to give it to Apple, but it's also usually first party tracking, not third party tracking when Apple does it. Yeah, so this is super interesting for a couple of reasons. One, I definitely think that Apple could stand to benefit if they make stuff harder, but they should make things harder and I think a lot of these companies got fat and a lot of these apps are created simply to gather data about people. And it's one of my pet peas I used to complain about all the time when people were just trashing Microsoft and giving Google all the props, so everything is free and everything is wonderful. It's like, it's not free for no reason, guys, come on. And so I like the fact that at least one platform is making a move that requires these guys to put some thought in and actually ask permission before they start taking people's data and making tons and tons of money. I'm not getting the cut. It's one of the reasons I refuse to do self-checkout. That's it until Home Depot or any of these other places pay me, I'm not doing it. So yeah, so I'm not getting any of these ad money. Yeah, and honestly, this is not shocking.  So it's gonna have a big effect and it's gonna take a while for everybody to work out the implications of, okay, how do I tweak my copy to get those people who are no longer tracked? How do I figure out how to tell, even if I can't tell the individual, like I used to be able to tell that, hey, I ran this ad and I got an uptick over there. There's a lot of work to be done to deal with this. It doesn't mean that Apple has irreparably harmed the advertising industry. In fact, it would be shocking if they had made this change and you didn't see these kinds of effects, in my opinion. So the question is, do they have a reason for doing this? And the reason is that people should be in control of their data. And I don't care how you wanna argue that this is hurting your business. As long as Apple is asking every user, including their own, is it okay if we track you or not? And you can say no, that's the right thing to do. That is the right thing to do. The ecosystem has to adapt to that.  It's like three, two, one. Ooh, and everybody starts losing money left and right. Yeah. All right, real quickly. CoinDesk, notice that CoinStar Machines and Walmart, coindesk.com, notice that CoinStar Machines and Walmart's, the ones that let you dump all your coins in and get cash back, will now let you buy Bitcoin with paper money. So usually you can dump all your pennies in and it'll say, hey, do you want a gift card? Or do you want actual paper money? You can't get Bitcoin with that, but you can go to the same machine, put in some paper bills and get Bitcoin. So it'd be like a two-step process.  Of course, you're gonna get a transaction fee on both of those. Your old pennies cannot be turned into Bitcoin directly, but your dollar bills can up to $2,500 worth. The transaction to Bitcoin is handled by a crypto wallet and payment firm called CoinMe. So the way it works is, CoinStar Machine issues you a paper voucher, probably with a wallet address on it, and then you use that on the CoinMe website to redeem your Bitcoin into a CoinMe wallet. CoinStar will charge a 4% fee for the conversion and a 7% cash exchange fee. So it ain't free to do it. But if this shows you anything, it shows you that Bitcoin and cryptocurrency is here to stay, because you can literally walk up to a machine in a Walmart and get Bitcoin. So this is going absolutely nowhere. The other thing the CoinDesk article pointed out is that you had that fake story going around that Walmart was gonna start accepting cryptocurrency recently. Apparently because of the fallout of that, where Walmart was so upset about combating that story, they decided not to issue the press release about the real thing happening with the CoinStar because they didn't want to cause confusion. See, I told you. They do take Bitcoin at this CoinStar. At the machine, yeah. Now it's going nowhere, that's a hefty fee, but if it's an easy way to people to access this type of money, then so be it. I don't think it's easy though. It's easier to just buy it at home on your website, on a website, isn't it? Then going all the way to the Walmart. If you've got internet. If you've got a computer. If you don't have internet, why are you buying Bitcoin? You have to have internet to go to CoinMe and redeem the voucher. Hey, look, Cousin Ray Ray said this is the new thing, so I'm gonna go get me my Bitcoin. Yeah, maybe that's it.  No way to redeem them. All right, let's check out the mail bag. We got a nice email from Duncan and Warman Sonny, but wishing it was called Brisbane Australia who said, hi, Tom, Sarah, Roger and the entire DTNS crew and family. I've had a long overdue to do in my life and that's to reach out and thank the DTNS Extended Network. You likely don't remember, but early in COVID, I reached out for assistance in rapidly setting up a video streaming solution so we could communicate with my organization who had been digitally unprepared for not being able to meet in person. Long story short, I was amazed at the support you offered and the lengths the DTNS crew and extended family went to help me out. Thanks in no small part to Roger and others, I was streaming like a pro and more importantly, you helped get information to people who needed it at a time when this was all so uncertain. From the other side of the globe, you had a positive impact on many others through the generosity of your time and that's actually pretty cool when you think about it. From the bottom of my heart, thank you. At a time when I was a little overloaded, you took that load and made things easier. My other unfinished business is a long overdue raise. Every day my DTNS family are waiting to inform Rich and entertain me whether that's the latest Google Pixel launch or an in-depth discussion on tacos or hats. I am along for the ride every day. I can't express the increasing value I get from the DTNS network and family, but I can at least increase the value I return as thanks. Thanks so much for all you do. Your newest co-executive producer, I don't think I'll use that title regularly, you should, Duncan. Thank you Duncan, that's so nice. Oh, nothing like somebody showing love, you got to love it. And that's not just him thanking Roger and us, but there were folks in our audience that pitched in and helped out with that as too. So anybody that pitched in with some tips, whether it was in the Twitch chat or the Discord or on email, you're part of that thing. So it's all of us. Feedback at dailytechnewshow.com folks, keep it coming. Speaking of which, that community just got a little bigger thanks to our brand new bosses, Adam Oliver, Annie Martin and Vivek Bhavishi who just started backing us on Patreon. Oh yeah, it's always good to get new bosses. Free new ones, thank you. Adam, Oliver and Annie, if you're not backing us yet, be like them, you'll get a shout out on tomorrow's show. Be like Adam, be like Oliver, be like Annie. All right, be like Len Peralta, Len Peralta's here all the time writing up stuff. I like what you did this week, Len. You got really inspired by one of our stories. Yes, so a couple of months ago, I got into the NFT market. I don't know if anybody knows that, but I am in the NFT market, I'm on OpenSea. And the story about trying to figure out what the next thing for NFTs is kind of inspired me, right? And I love your idea of, hey, I can do this too, right? I can make this happen. So I've never done this before. I have drawn just an avatar, a drawing of myself and I've made this an NFT. Right now, if you go to OpenSea, if you search me, you'll find this in there. You can't get it on my online store. You can't get it on Patreon. That's the only place you can get it. If this is successful, if people like these DT and SNFTs, I will make one for each member of the community, meaning the people who are contributing to the show. So Chris would get one. Obviously Tom, Sarah, Roger, but everybody else. So, you know, see if this will happen. See if this can work and see if this will be interesting. And by the way, they're called in, I've decided to call them Leneftes. So check them out and go to OpenSea and maybe purchase this NFT. Maybe this could be your first NFT. Or if you go to my online store, you can do Substera too as well, so. Very cool. And just like we were talking with the bangers earlier, who knows what we'll be able to do with this. Who knows? Right, that's what's interesting about it to me. All right, Chris Ashley, host of bbqintech.com. I'm wearing the t-shirt. The t-shirt's amazing. You got it. You got to check out the t-shirt. Oh my God, I'm so excited. Yes. These are sweet. How's it going, man? How are you feeling about that show? I think Rod and I, we recorded an episode just this week and we really hit a stride on this one. We was talking about tailgating and barbecue. So a lot of information there. So feeling really good, the feedback, the comments I'm getting and we haven't even put out the second episode with the technical second episode yet. It's been fantastic. So really excited about it. I mean, folks that want to check it out, go ahead over to bbqintech.com. We're doing big things over there trying to generate this community where we can just talk food and barbecue and the technology around it. And don't forget about your boys, Rob Dunwood and Rod Simmons over at SMR podcast. We still doing our thing over there. Good stuff. All right, folks. Don't forget, we are live Monday through Friday at 4 30 p.m. Eastern 2030 UTC. Find out more at dailytechnewshow.com slash live back on Monday with Allison Charited as our guest and be comparing notes and buying our new MacBooks together. Talk to you then. This week's episodes of Daily Tech News Show were created by the following people, host producer and writer Tom Merritt, host producer and writer Sarah Lane, executive producer and booker Roger Chang, producer, writer and host Rich Strfellina, video producer and Twitch producer Joe Koontz, associate producer Anthony Lemos, Spanish language host writer and producer Dan Campos, news host writer and producer Jen Cutter, science correspondent Dr. Nikki Ackermans, social media producer and moderator Zoe Deterding. Our mods! Beatmaster, W. Scottus One, BioCal, Captain Gippert, Jack Shid, Steve Guadarrama, Paul Reese, Matthew J. Stephens and J.D. Galloway, mod and video hosting by Dan Christensen, video feed by Sean Wei, music and art provided by Martin Bell, Dan Looters, Ristafa A, A-Cast, Creative Ast Arts and Len Peralta, live art performed by Len Peralta, A-Cast ad support from Trace Gaynor, Patreon support from Stefan Brown, contributors for this week's show included Lamar Wilson, Scott Johnson, Justin Robert Young and Chris Ashley. Guests on this week's show included Nika Monford and Terence Gaines. And thanks to all our patrons who make the show possible. This show is part of the Frog Pants Network. Get more at frogpants.com. The club hopes you have enjoyed this program. Ha ha ha ha ha!