Jerome Powell & the Federal Reserve just issued a major warning to the US Economy and Housing Market. Suggesting that financial conditions are tightening “more than the traditional metrics suggest”.
That’s Powell implying that a bank credit crisis could be overtaking the US Economy in 2023. Which, combined with Fed Interest Rates Hikes, could mean that the layoffs are about to get much worse.
Companies like Meta, Amazon, and Indeed are the most recent ones to announce big layoffs. The layoffs by Indeed are especially concerning. Because they have lots of data on the US Job Market. And they are seeing a big slowdown in new job listings. Which means the Recession in 2023 could accelerate.
But these white collar layoffs haven’t spread yet to the rest of the economy. Causing some to think that we’ll have a “Soft Landing”. Or will avoid a Recession entirely. Nearly 50% of the subscribers on my YouTube Channel think that at most we will experience a normal recession. However, people need to be careful to account for the lag that takes place between layoff announcements and economic contagion.
As more white-collar workers lose their jobs, consumer spending will go down. And as consumer spending will go down, the layoffs will spread. Which will make the Housing Crash worse. Especially in states like California where the home sales have already gone down 30-40% YoY. They will likely keep declining in metros like San Diego, Los Angeles, and San Francisco because the huge economic exposure to the layoffs.
—
REVENTURE APP: www.reventure.app
INSTAGRAM:
TWITTER:
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting’s YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
Image(s) and/or Footage used under license from Shutterstock.com.
Additional stock footage provided by Envato Elements.
#HousingCrash…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
The Federal Reserve recently issued a warning that the United States’ financial conditions are getting worse. In an announcement made after their September meeting, Fed policymakers revealed that the country’s economic recovery is losing momentum, and risks are stacking up, both at home and abroad.
The Fed noted that the ongoing coronavirus pandemic continues to have a significant impact on the country’s economic activity, as evidenced by the high number of job losses and business closures. Moreover, the resurgence of virus cases in some parts of the country has further hampered the recovery, with policymakers warning that the path forward may be long and uncertain.
The Fed’s announcement highlights the growing concern that several headwinds are threatening the country’s financial system. Since the start of the pandemic earlier this year, the US government has injected trillions of dollars into the economy to shore up businesses and households affected by COVID-19. However, with the number of infections and deaths still surging, there are doubts about the economy’s ability to recover quickly.
The Fed’s announcement also cited concerns about the political environment, noting that the upcoming presidential election in November could bring further uncertainty, which could unnerve investors and slow down the economy’s progress. Furthermore, political tensions between the US and China and other geopolitical risks around the world could similarly weigh on the economic outlook.
The Fed’s warning of worsening financial conditions comes at a time when the country’s economic recovery is already showing signs of slowing down. In recent months, there has been a slip in consumer confidence, rising unemployment rates, a decline in retail sales, and an increase in business bankruptcies. These indications point to a more extended economic slowdown that could be difficult to unwind.
In response to the worsening economic condition, the Fed is expected to continue its efforts to support the economy, including maintaining low-interest rates, providing monetary stimulus, and supporting financial markets. However, policymakers warned that these measures alone may not be enough to address the mounting risks, suggesting that government intervention may be necessary to prevent a more significant economic downturn.
Overall, the Fed’s warning about worsening financial conditions underscores the need for continued vigilance and proactive measures to address the ongoing economic challenges. While there are reasons to remain hopeful, the path forward is indeed uncertain, and policymakers, businesses, and households must be prepared to adapt and work together to navigate the choppy waters ahead.
Map of Home Sale Declines at 6:59.
California really bad. Florida also starting to look bad. Tech + tourism not going to fare well in this Recession.
Map shown again at 12:10.
All of the comments on this video are spam. Cleanup your comment section Nick!
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated
It's all local.
We live in the Mid-Atlantic states and houses in our area are selling for top dollar in less than a week… restaurants are full… the white collar job market is relatively healthy.
I know it'll eventually come crashing down… But when?
I’m seeing more & more new homeless. This is indicative of upcoming issues.
The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Love your insight. Will prices also drop all over SoCal, if so, when?
I’m looking to buy in Phoenix
The job market in the uk is no better, I look after maintenance of a 60acre commercial estate and the employer thinks it’s appropriate to pay £13 per hour. Frankly it’s an insult, when the management team rides around in flash cars, with large bonuses, and I had to get on my hands and knees for them to provide tools and a works van. Which I was reminded that it’s not for personal use, hmm , great place. It’s across the board this bad news is happening.
You should stop making videos.
“There’s more and more of a concern that incoming data is revealing that the Fed might be a little bit behind the curve than maybe they expected heading into this year,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets in Toronto. In my portfolio, I'm noticing more red than green. How are other people in this market raking in over $350k gains within months
Real estate investing is not a short term game. Anyone with a time horizon under 10 years is just gambling. The mortgage principle will still be high, equity gains can quickly evaporate, and chances are net rents won't be staggering. Real estate is slow and methodical. Time is your friend. Let the market come to you. Be ready to act when it does.
Everyone in Cali are saying prices aren’t going to go down much at all, they look at me like I’m crazy!
Home sales are down big, but prices aren’t, the biggest drops in California are in San Jose and San Francisco but again you’re talking about 10% off in markets were median prices are above a million dollars, in the majority of markets here prices are off slightly from last year’s peaks but the problem is for people who already bought and don’t absolutely need to sell, they’re not going to list so inventories will continue to be tight and prices holding steady.
The other hard part to swallow is that for the people making $20-25 hr. the truth is they aren’t qualified to buy a home here, plain and simple. Beyond that if you look at listings turnkey ready to move in homes are still going at a premium and selling with 3 days at above asking price, there is no real “entry level” inventory in California and unfortunately rents are still rising so it’s not like rent is at a discount allowing potential buyers to save money, if anything the rising rents (along with inflation) are making it harder to save for a down payment, it’s awful out here.
Stop.. ur lies
As a foreigner who lived through the entire duration of zero covid for the past 3 years in China, this is by far the most objective commentary I’ve seen on YouTube to date. Economists and business leaders are voicing concerns at the start of 2023 that the year could be a difficult one. JPMorgan Chase & Co. Chief Executive Jamie Dimon said Tuesday that the Federal Reserve may need to raise interest rates to 6% to fight inflation, higher than the peak level between 5% and 5.5% in 2023 that most Fed officials penciled in after their December meeting. Although I read an article of people that grossed profits up to $500k during this crash, what are the best stocks to buy now or put on a watchlist
Kind of funny how Indeed is laying off employees. My heart goes out to them and their families, obviously, but I can’t help but appreciate the irony.
Fear fear fear. YouTube is nothing but constant fear about everything. I'm about to delete my account
housing prices still going up. where is this epic crash? you all realize prices would have to fall like 60% to get to where they were when he first started to call for a crash and right now prices are still going up.
The fin-Market have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. My portfoliio of $250k is down to $192k any recommendation;s to scale up my return;s during this crash will be highly appreciated
Another reason it's less likely to happen that way is that, despite how terrified everyone is and how they're predicting the crash, there is already an overwhelming amount of demand waiting to absorb it. As I shall explain below, this prediction was not made in 2008, at least not by the general public. The other comment is that the ownership rate peaked in 2004. In the second quarter of 2020, we peaked, and now we are at the median level. It decreased by 3% between 2008 and 2012, and by the second quarter of 2020, it had dropped from 68 to 65.
sales are down? yes. Is pricing down? no
Please. Stop with the "sky is falling" crap.
Wrong my child, 6.5% is not a historical high interest rate. But then again I am a lot older than you and have survived multiple peak-to-trough-to-peak-again cycles.
As for the used car market, the data from Cox (Mannheim), that is what the dealers are paying at the dealer auctions. Too many dealers with fresh credit lines are convinced they must buy anything they can to supply the tax refund fueled early spring car sales market. That too will end in disaster.
Shockwaves, panic, massive drops… don’t get me all hyped up nick… prices in California are exactly the same… UNAFFORDABLE
I wonder if you can utilize more hand gestures and hyperbolic scare tactics?
You are so right! This is bad going on worst!
Keep raising the interest rates. All good news.
Yup, I kissed Good Bye to buying my first time home in CA. Now even considering moving to Texas.
There's no way out of this mess.
Housing market is tricky. Can u explain why Dallas, Kansas city, and some other cities in the middle still have bidding wars on most of houses?
Indeed sucks! I’m in desperate need of employees but am not wasting another cent with that company!
A Wendy's small chilli was .99 and now it's $3.19, so inflation is as real as hell here at home.
Legally banks can take your money that why you should not deposit money in bank but if your on ssi you have to so they can track what you do with your money this is not a free country its communist countries that do that congress took away free country wake up America they want your money