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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Warning: The Recession Could Begin Sept. 1st (Here’s Why)
As global economies continue to battle the coronavirus pandemic, concerns about a potential recession have been growing. While governments and central banks have implemented various measures to mitigate the economic impact, some experts are warning that the recession could begin as early as September 1st. Here’s why.
1. Unemployment Rates:
One of the major indicators of a looming recession is a high unemployment rate. With businesses shutting down and experiencing financial strain, millions of people have lost their jobs globally. Despite some economies gradually reopening and businesses slowly recovering, the unemployment rate is still significantly higher compared to pre-pandemic levels. As government support programs begin to taper off, the lack of job security could further worsen the situation, pushing the global economy deeper into a recession.
2. Economic Contractions:
A recession is typically defined as two consecutive quarters of negative economic growth. As the world battles the effects of the pandemic, a sharp economic contraction is likely to occur in many countries during the second quarter of 2020. If the economy fails to rebound convincingly in the third quarter, it could indicate that a full-blown recession has arrived. While some regions may experience a more delayed impact than others, the possibility of a global recession is a distinct possibility.
3. Consumer Spending and Confidence:
Consumer spending plays a crucial role in the health of any economy. However, the COVID-19 crisis has triggered a significant decline in consumer confidence. With job losses, reduced incomes, and overall uncertainty about the future, people are cutting back on their expenses, particularly non-essential items. This decline in consumer spending has a ripple effect on businesses, leading to decreased revenues and, ultimately, potential bankruptcies. If this trend continues, it could seriously hamper the economic recovery and push the global economy into a recession.
4. Geopolitical Tensions:
Another factor that could contribute to an economic downturn is the escalating geopolitical tensions around the world. From trade wars to political conflicts, these factors can disrupt global markets, impede international trade, and dampen investor confidence. The current strained relations between major economies, such as the United States and China, could exacerbate the recession risks. The uncertain global political landscape may further hinder economic recovery efforts and potentially plunge the world into a recessionary phase.
While these warning signs indicate a potential recession, it’s important to note that predicting the exact timing and severity of economic downturns is a challenging task. The true extent of the damage caused by the pandemic and the effectiveness of government interventions and stimulus measures will ultimately determine if the recession begins in September or unfolds at a different pace.
To navigate these uncertain times, governments and central banks need to continue their supportive measures, such as providing financial assistance to struggling businesses, implementing fiscal stimulus packages, and protecting jobs. Furthermore, international cooperation and open lines of communication between nations are crucial to stabilize markets and restore investor confidence.
In conclusion, the possibility of a recession beginning on September 1st is a real concern given the current global economic landscape. However, it is important to remain cautious and prepared for various scenarios as the world navigates through these unprecedented times.
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September or October? Make up your damn mind!
If u prepay during a moratorium that saves a ton in interest. Surely some people were saavy.
They should have never stopped the student loan payments. We would never have to hear about people stupid choices.
The federal reserve is thinking or not thinking right personally I think they are just evil higher unemployment won’t fix the economy or slow inflation printing more money is what causes inflation
I’m coming to the conclusion that a financial education is worth much more in the long run than a college education.
recession will start in 2024
Is it the wage price spiral or the goverment horrible spending spiral. Fed should unemploy curupt senitors and president on spending spree insted of using small buisness as the whipping boy for there corruption. Bring government spending caps and peoples voted spending, balanced with tax.
Can you do a video on debt to gdp by country time line? Realy makes understanding economics and everything clearer with asset distribution.
People work for money and pay tax and the government spends it and then borrowes 100% more from fed and people get poor with inflation, seems like there could be a better system. Some countries don't have central banks but who do they pay for there air?
Thank you George
Student payment resumption will suck something like $30b per month of consumer spending out of the economy.
do people take this guy seriously? he says sept 1st, like the day payments resume the economy crashes. any reasonable person would know the impact will take several quarters to see an impact
The comment on $100k bad w money – id think so too but then it may depend on what the local market is. If you are in Cali or NY you’re fkd.
I used to believe that during a recession, each financial decision went bankrupt while some made millions. During the Great Depression, I also believed that everyone went out of business, but others started new ventures. The bottom line is that having the appropriate mindset is the first step in achieving success for some and depression for others. Having said that, I've saved $250k to invest for the future, but I'm a total novice.
You're very sensible. Subscribed.
Too bad the government hasn't learned that they can't fix stupid yet. Pay off all the student loans under the condition that the borrowers lose all federal benefits including no federal jobs until the loans are paid.
I've always thought the term 'meteoric rise' was dumb; meteors actually FALL.
The other choice to tame inflation is to implement pro-growth policies and tighten the money supply. So, instead of making working-class people pay the price for stupid economic policies, we can grow our way out of this mess. So, lower marginal tax rates, reduce regulations that stifle job creation, and withdraw currency from circulation.
You forgot something George . No matter how many chips under your skin or tattoos on top stuck into the brain or biological concoctions injected into your body is going to make one difference in how much more money you make . Because it's not money your ruining your life for . It's all fake and you are allowing nit wit's to destroy your life along with your body for nothing except to be allowed to ride this merry go round one more time , if you live that long .
That is madness folks . I just don't understand how people buy into this . Like the woman sings ' is this all there is ?'
T/C/E
What’s the actual deal with student loans? Is it going to be like a back pay for all the time it wasn’t paid? Or would they just start their regular payments as before with whatever balance they have? If I took 20k loan with 400$ a month as payment plan.. Then old Guy in charge said I don’t have to pay it. Two years went by. Now I have to start paying it again. Do I owe bank back payment of 9600 $ ( 400×24 months) or do I just resume where I left? Is there an interest rate on 20k I took out? If so what’s a general rate and will it be applied to the two years I didn’t pay?
Billionaires and corporations robbed the United States.
Factors that could trigger recession
Things aren't different this time, but you need a catalyst to un-invert the curve, which is when things go bad economically. Possible triggers:
*Sep 1st: Student Loan payments resume (which directly impacts 43.5 million Americans). 56% of borrowers will have to choose between paying their debt or buying groceries
—This is with unemployment rate at 3.5%, and central bank wants to increase μ to curb inflation.
*When people lose their jobs, there is contagion effect, because businesses themselves aren't able to conduct business in general.
*Majority of current hiring is being done by movies, bars, cafes, restaurants. They have been seeing high demand because customers haven't had to pay student loans. Those same customers primarily work in those industries.
*68% of borrowers with household incomes of $50k will have to choose between expenses and necessities.
*Aggregate demand will go down, a lack of liquidity in banking will make credit tight for businesses, along with issues in real estate sector.
In light of the impending recession and the fact that inflation is still far higher than the Fed's 2% target, several of the most prominent market analysts have been expressing their views on how terrible they believe the next downturn will be and how far stocks may have to fall. I need advice on what investments to make because I'm attempting to create a portfolio for my children that will at least be $850k in value.
Federal reserve is increasing unemployment to decrease inflation, but the same time continuing send the money to Ukraine and print the money.
This looks like controlled demolition.
Forget any economic analysis , George!