Do you feel broke in the 2023 economic recession? Turn’s out you’re not alone. People are saving money at the slowest rate in 15 years. This is due to inflation, Jerome Powell (over at the Federal Reserve) raising interest rates, and many Government assistance programs being shut down. But is it going to change anytime soon?
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0:00 Do You Feel Broke?
0:38 Reason 1
3:35 Reason 2
6:00 Reason 3
7:35 Is It Going To Get Better Soon?
DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.
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The year is 2023, and people all across the globe are feeling the pinch of a severe recession. Empty wallets, dwindling savings, and increasing debt have become the harsh reality for almost everyone. But why does it seem like everybody is feeling broke right now? In this article, we will delve into the factors contributing to the 2023 recession and explain the gloomy financial state the world finds itself in.
One of the primary causes of the recession is the bursting of the housing bubble. Over the past few years, rampant speculation and lenient lending practices created an unsustainable rise in housing prices. This resulted in a bubble that eventually burst, leaving many homeowners with properties worth less than their mortgage debt. The housing market collapse resulted in a significant loss of wealth for individuals and led to widespread financial instability.
Another crucial element fueling the recession is the cascading effect of the housing crisis on the financial sector. As housing prices plummeted, mortgage-backed securities held by banks and other financial institutions also saw their values diminish. This caused a domino effect, leading to significant losses and numerous institutions facing bankruptcy or requiring government bailouts to survive. The ensuing turmoil in the financial sector rippled through the economy, making it harder for businesses and individuals to access credit.
Moreover, the pandemic played a significant role in exacerbating the economic downturn. In an effort to contain the spread of the virus, governments imposed strict lockdown measures, effectively shutting down entire industries. As businesses closed their doors, millions lost their jobs, leading to a sharp increase in unemployment rates around the world. With reduced income and uncertainty about the future, consumers were left with no choice but to cut back on spending, exacerbating the recessionary spiral.
Global supply chain disruptions also contributed to the economic downturn. With borders closed, transportation systems disrupted, and trade restrictions in place due to the pandemic, the flow of goods and services was severely impacted. This resulted in shortages of essential items, increased prices, and reduced consumer spending power, all of which deepened the recession.
Furthermore, government debt played its part in making everyone feel broke. To mitigate the impact of the pandemic, governments around the world implemented massive stimulus packages, injecting money into their economies. While these measures were necessary to support struggling businesses and prevent a complete economic collapse, they came at the cost of significant increases in public debt. As governments financed these packages, they had to divert funds from other sectors, leading to reduced investments in infrastructure, healthcare, and education.
So, why does it seem like everybody is feeling broke right now? The answer lies in the interplay of various factors, including the bursting of the housing bubble, financial sector instability, pandemic-induced job losses, global supply chain disruptions, and soaring government debt. These factors have combined to create a perfect storm, leaving individuals across the world grappling with financial challenges.
The road to recovery from the 2023 recession will be long and arduous. It will require governments, financial institutions, and individuals to work together to rebuild economies, address systemic issues, and find innovative solutions. While the current situation may seem overwhelming, history shows us that economies can rebound from even the most severe recessions. By learning from past mistakes, implementing prudent policies, and fostering a spirit of resilience and innovation, we can rebuild and create a more resilient future for everyone.
Thanks everyone for watching! Let me know your thoughts in the comments, and if you wanted to leave a like it really helps the channel! Thanks 🙂
Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680k savings vanish after putting in so much effort to accumulate them.
I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest
Nice video
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
Global stocks headed for their biggest weekly decline in more than three months. European shares fluctuated, with a record 36% drop in Siemens Energy AG’s shares after a profit warning dragging on the broader market. US index futures fell. According to chief economist at UBS Global Wealth Management “Financial markets have had one of those switches in the narrative that happen occasionally, and are starting to worry about higher interest rates driving recessions,” I'm still at a crossroads deciding if to liquidate my $300k stock portfolio, what’s the best way to take advantage of the market?
Nice video
I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest
Nice video
Nice video
Very true, people downplay advisors role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, my stagnant reserve of $225K has yielded nearly $1m after subsequent investments so far
Well traveling isn’t slowing down. Everything is overbooked. So people need to stop whining.
If you wanna be successful, you most take
responsibility for your emotions, not place
the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet peoplestill invest and succeed. You must look outward if you wanna be successful in life.
Debt ceiling isn’t even an issue when republicans have the congress. They will spend more if history is any indication just not on social programs but for defense industry
I was in Hong Kong until November 2022. Felt great. Loads of disposable income. Now i made a lateral move to Toronto. Cant even save 200$ a month
The world has come to an age of digitalization. "digitalization allowed companies to sell goods without a physical presence"
So has digitalization made it easier for us to earn good profit from the comfort of our home with the help of digital currency.
It’s been all beneficial earning 2 percent daily ROI profit of my invested capital.
I love all your videos! So helpful
I wasn't financial free until my 30’s and I’m still in my 30’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
So basically the only way to keep inflation down (with rampant money printing) is to keep us poor / squeeze all our disposable income from us so we can’t buy anything. Demand down, prices down. Got it. Great. Thank you RBA and federal reserve. I’ll just enjoy being poor.
This hits harder knowing my lease is up in a month and my rent increased by 1k since I have to move :/
BULLLLLLSHEEEET VIDEO, my portfolio is up about 72% this year…. DISLIKED!
Great video man!
The UK is in big trouble. We have brexit, a useless government and a a bank of England that simply have no idea how to react.
stunning video and thank you for breaking it down!! Saving your money and Investing it into the stock market or something profitable, will be the wisest thing to do, to ensure success..
Usually learn something with your videos, but today — ZILCH!
Great video. Another reason people may feel broke is that in 2022 the S&P returned -18% and bonds returned -13% (Vanguard bond index).
So savings are down, purchasing power is down and investments are down.
The governments were warned that pointless Lockdowns would cause more human misery and kill more people than a virus could, but sadly Australia, US, UK et al ignored the 'actual science'.
Hence the terrible trouble we are in.
As someone who makes around 35k a year down south of texas on a farm
Its only been a slight inconvenience, my life goes on as normal and continue to save, I dont have a car, just the old rusty motorbike,
Although Im not rich, Im comfortable and happy, compared to some people I know who makes wayy more than I do, yet struggle to get by because they overspend.
I dont own a house, only thing I have is my motorbike and and a few things
Im blessed the farm has given me a room to stay in, might be small but thats all I need to still live my life. Hopefully when the market crashes, I can buy my own house. Right now, even if everything crashes, my life wont change so much as ive had savings for years and years and I dont spend more than I earn. 🙂 looking forward to the crash.
The only way to fight inflation is to increase your earning capacity.
The erosion of my financial reserves due to inflation adds to my concerns. At this point, I require precise market trajectory information, but I find myself unsure about the appropriate course of action.
I used to think every investor went broke during recession, meanwhile some make millions. I also thought everybody went out of business during the great depression, but some went into business. Bottom line, there's always depression for some, and profits for others. it all starts with having the right mindset. That said, I've set aside $265k for future, unfortunately I'm a complete noob.
From having no money to working countless hours delivering for Uber Eats, I was able to save up about $20k, which I subsequently invested with Gregory Thomas Patchak.
My investment has already increased to $128k, and I am beyond happy that you brought him up in this comment section.
17%? It sure feels more like 70%!
This was a very US centric video… it was great content but I feel like you could and should be talking about lots more economies than just the USA.
It’s been a while I don’t watch any videos of this channel. Can someone tell me if he is now making videos for Americans? I was hoping to see this topic more focussed on Australia :/
US stimulus cheques seem almost harmless compared to having a 0% official cash rate. That causes some lollie scrambles for sure, especially since US can get 30 year fixed terms for mortgages.