The Hidden and Genuine Catalyst Behind All Recessions That Remains Unspoken

by | Jul 9, 2023 | Recession News | 26 comments




Try ChartMogul ►
Help us make BETTER videos ►

We don’t just make videos. Slidebean helps founders scale their startups.

The Slidebean Platform ►
Presentation Design Services ►
Financial Modeling ►
Subscribe to our FREE weekly startup newsletter ►

Recommended videos:
Dot-com Bubble documentary: how history might repeat itself ►
Housing bubbles explained with Monopoly ►

#slidebean #startups #recession #recession2020 #1929 #2008 #financialcrisis
___

We’re at it again. These are tough times.

It’s gotten so bad that it has even taken a toll on this and it’s a big deal.
In NYC, for decades, there was the pizza principle: where a slice of pizza was the same price as a subway ticket.
But not anymore. The decade-long balance is now gone.
The bad thing is that it’s much more than just pizza.
Global chaos, rampant inflation, and a looming financial crisis.
Crypto rose promised millions and then collapsed, taking people’s fortunes with it.

Startups are closing down, and thousands are losing their jobs.
Expensive pizza is the least of our problems.
The problem is that having something to eat, like a slice of pizza a miracle for some.

And a bigger question lingers: how do we end up in this sh*t in the first place? And, most importantly, who’s responsible?

Let’s talk about financial crises in this episode of Company Forensics.

About Slidebean

Slidebean is a platform for founders to scale their startups. Our platform offers everything you need to build your startup, your pitch deck, set up your company, and start gaining traction.
Our team of experts can also help you write and design your pitch deck and build the financial model for your startup.

See also  Shocking Economic Warning Issued by Bank of America

0:00 Financial Crises – Intro
1:27 Financial Crises- 1700
6:04 Financial Crises – 1929
16:52 Financial Crises – 2008

Follow us
Twitter:
LinkedIn:
Instagram:

Caya
Twitter:
LinkedIn: …(read more)


BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing


Title: The REAL Cause of All Recessions (That Nobody Talks About)

Introduction:
Recessions are one of the most distressing and economically challenging times for any country. The causes of recessions are often complex and varied, with many factors contributing to their occurrence. However, buried beneath the surface of economic discussions lies a crucial aspect that often goes unrecognized or neglected. In this article, we will shed light on the real cause of all recessions—debt.

The Debt Factor:
Debt, both public and private, stands tall as the underlying catalyst that triggers and exacerbates recessions. It is the elephant in the room that rarely receives adequate attention when assessing the economic health of nations. The magnitude of debt accumulated by individuals, businesses, and governments over time directly affects economic stability and ultimately leads to recessions.

Consumer Debt:
Consumer debt is one of the primary drivers of economic growth in many developed nations. It enables individuals to finance their needs and desires by borrowing against future income. However, excessive consumer debt can quickly become unsustainable, leading to a domino effect that cripples the economy. When consumers struggle to meet their debt obligations, they cut back on spending, triggering a decline in demand for goods and services, thereby dampening economic growth.

See also  Rishi Sunak's Dilemma: Assessing the Impact of the UK Recession

Business Debt:
Similar to consumers, businesses rely on debt to finance expansion, invest in new technologies, and maintain operations. However, excessive business debt can be highly detrimental during economic downturns. As businesses face difficulty in generating enough revenue to service their debts, they cut costs by reducing hiring, capital spending, and even laying off employees. These actions contribute to a downward spiral, leading to reduced economic activity, lower consumer spending, and ultimately, recession.

Government Debt:
Governments, often driven by fiscal policies, accumulate debt to fund various programs, provide public goods and services, or stimulate economic growth. Although government debt can be beneficial in certain situations, excessive borrowing without adequate revenue generation can have dire consequences. Increased debt burdens may lead to lower public confidence, higher borrowing costs, and limited financial flexibility, leaving economies vulnerable to recessions.

Credit Availability:
The availability of credit plays a significant role in creating a debt-driven economy. Financial institutions, encouraged by interest income, often extend credit to borrowers even during uncertain economic conditions. This influx of credit further exacerbates the debt issue and creates an environment where borrowing becomes increasingly uncontrollable. The subsequent default rates on these loans during recessions set off a chain reaction that disrupts financial stability and precipitates economic downturns.

Conclusion:
While various factors contribute to the onset and severity of recessions, debt, both at the individual and systemic level, stands as a critical element that cannot be ignored. It is imperative to recognize the implications that excessive debt levels can have on economic stability. Policymakers, financial institutions, and individuals must acknowledge and address the root causes of debt to ensure a sustainable and resilient economy. Ultimately, an open and honest discussion about debt can contribute to a more comprehensive understanding of recessions and pave the way for effective prevention and recovery strategies.

See also  How Paul Volcker Ended The Great Inflation in 1980s
Truth about Gold
You May Also Like

26 Comments

  1. Ten Minute Tokyo 2

    Banker manipulations. Too much prosperity is bad for the loan business. Central bankers control everything.

  2. Giller Heston

    In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

  3. Sam Garcia

    Calvinism and its TULIP is the worst and most unBiblical thing out there.

  4. Grey Beard

    Your grasp of the dynamics in play seems superficial. You describe the game being played on the field and note this or that play being run, but you do not realize the large organization dedicated to getting you in the stands and over paying for your parking, tickets, hot dogs and beer.
    Imagine real money, not fiat currency(theft). Imagine usury(theft) being illegal. Imagine actually owning land that can't be taken from you through taxation (theft). That is a world we have been robbed of by the same evil geniuses who also run the ponzi schemes you are discussing.

  5. Trappindotcom

    perfect sound effect for the bro who invented futures. time to pay up

  6. Karl Gutowski

    After the 1929 crash, US unemployment never reached double digits, then a new president was sworn in, who, despite warnings from a thousand economists, increased tariffs on foreign goods, which prompted other countries to retaliate in kind, and 6 months later the real economy collapsed into the great depression. So no, almost a hundred years later, you don't know and understand the whole story. Until the government restricted free trade, only Wall Street speculators and banks were crashing. After it stepped in to help, the real depression started.

  7. dot com

    What is up with you and these obnoxious noises in our video. Can you never do that's again. That high pitched troll noise is annoying as FUCK

  8. Eryk Chojnacki

    It's funny how you mention FED printing money, experimenting with interest rates, but you never consider FED at least somewhat responsible. The banks and brokers need to get money from somewhere and this is the FED. The FED printing money and allowing for very low reserve on banks' sheets generated all those loans because the FED's strategy was to boost the economy and initially they took the 1929 bubble as a great success of their policy. Until it popped and they blamed the people they gave the excessive money. Same way, during the 2008 housing bubble, let's look at Fannie May and Freddie Mac, heavily government-subsidized institutions giving out mortgages to everyone (subprime credit) and also were very happy that the artificial influx of money in the housing market caused a great boom. Until it popped and they blamed the banks that tried to somehow sort out the situation joining the mortages into MBS. The private market plays as the government and the FED allows them and those crises were not caused without the approval of the gov and the FED.

  9. Leon Donald

    The way I see it this recession most likely has an external cause. The United States is losing influence as a federal currency for the first time in decades. They don't have any more economies to utilize to control their inflation, and less money is being spent on stock and oil trading than previously. They all lend credence to the hypothesis that a new multilateral world order may be in the works.

  10. Jason Smith

    Wow,

    I was a trader on the floor in Chicago when this whole thing went down. That was the best description of what happened that I've seen.

  11.  Plessis

    Greed ruins people and businesses! Then businesses buy government to bail them out. People just can't buy anything on credit for awhile after bankruptcy.

  12. kenny lynch

    and everybody except 4 SSI SSDI will get helped but SSI SSDI will get screwed over just like always

  13. Radja Lomas

    Apparently there is no historical evidence for the Tulipe Craze

  14. Vincent Hall

    Beginning of video: "It's just money"
    End of video: it's your house, your education, your kids' futures…

  15. Vincent Hall

    Perhaps I'll buy property to let and not over mortgage the priorities.

    And always hold (hodl) through the crash!!
    In fact, buy in the crash.

  16. Vincent Hall

    Thank you, this is a very nicely researched video.
    I've learned a lot.

  17. Vincent Hall

    Oh, Margin Call is a truly scary film!
    Far more scary than any traditional horror film, meant to frighten us.

    Who knew that the real hero was Jeremy Irons.

  18. Giovanni Martin

    The culprit of most recessions is greed thru speculation. We must ban excessive leverage for the sake of speculation.

  19. Cristian Paul Martinez

    thanks for the video essay but your takeaway sucks. who's the REAL cause of all recessions? your answer: its you in the mirror. some BS. the wealthiest 10% own 89% of the stocks and the top 1% own 39%. blame the rich people not your average viewer. Its our fault for being duped into bad investments? some fkd up victim blaming.

  20. Lesley Willis

    Just look at a chart of stock or stock market prices. Quite steep gains followed by much steeper losses (crashes). All these are is a track of human emotions. Greed and fear. The crashes are steeper than the gains because fear is a stronger emotion than greed!

  21. Wapperd

    The amount of daytraders and s&p 500 holders has skyrocketed in recent years. These are often people that start with a relatively small portfolio and have a higher risk involved with stocktrading, and have therefore everything to lose by making a wrong investment decision. I wonder if this has anything to do with the economic problems the world is currently facing.

  22. John Jensen

    For the middle and lower economic classes real wages have not kept up with the cost of living since the 1970s. That is an issue. Also the way the cost of living is calculated leaves out things that probably should be included in that calculation in the "modern" world such as access to the Internet and devices with which to use the Internet.

  23. Jahlea Jahlou

    80 years now unlimited tax dollars funneled into secret unacknowledged special access programs. Without ANY OVERSIGHT resulting in a "military"/corporate/cabal which acknowledges no civil laws, no governments and no constitution. A militarized breakaway criminal mafioso which has acquired technology 2,000 years beyond human imagination and does whatever they want to do with it. Anti gravity "ships" were perfected in 1954. They don't have 12 ships OK ! This group of criminal thugs could PSYOPS a hostile ET space invasion tomorrow. RICO charges are being filed in every state in the US as we speak. IT IS A CRIMINAL CABAL ! Congress, The White House & the Pentagon have already received 20 terabytes of documentary evidence proof and 450 first hand witnesses are ready to be sworn into OPEN congressional hearings.
    100 years tax payer funded energy technology suppressed and withheld. CRIMINAL
    Disclosure Project. Dr. Steven Greer. Movie-The Lost Century. Contact your elected representatives NOW NOW NOW ! OPEN HEARINGS

  24. SVURulez

    Had to stop watching less than halfway through because that goddamned yodeling transition was driving me insane. Literally as bad as nails on a chalkboard. Why the fuck would you do that??

U.S. National Debt

The current U.S. national debt:
$34,609,796,817,427

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size