[Bell Ringin]
Tonight, Wall Street sinking deeper into
the red. The dow having its worst week
since the 2008 financial crisis
plummeting 12% in just five days! This is
music to your ears. The Great Depression,
The Great Recession, and the Great Lockdown.
What do they have in common? Fear and
panic. But you're not a regular spectator,
you're better than this. You know that you
should be fearful when people are greedy
and greedy when people are fearful. You
know that every problem is an
opportunity in disguise.
[Music]
What is a ression in the first place?
A recession is defined as a negative
economic growth for six consecutive
months.
What causes a recession? You never really
know. there's so many variables at play
that no one can time the market, and the
market will eventually crash. Notice that
I said no one can time the market and not
predict the market; because the market
will eventually crash. It's a matter of
time only. Millions of people are out of
work, financial markets have been rocked,
and supply chains have faced major
disruptions as factories around the
world have closed. The world is braced for
recession even after governments and
central banks have pumped trillions of
dollars into their economies and slashed
interest rates. How bad will it be? And how
soon will we recover are two questions
we'll be hearing a lot in the coming
weeks and months. But the rich didn't wait
weeks and months. For 8 American
billionaires, their fortunes have
ballooned by at least 1 billion dollar
during the pandemic. Tesla and SpaceX CEO
Elon Musk has made over 8 billion
dollars since March. Eric Yuan, CEO
of zoom doubled his net worth to 7.57
billion dollars in just the last three
months.
No one has made out better than Jeff
Bezos, the CEO of Amazon and the world's
richest man. Since January 1, 2020
his personal wealth has increased by
25 billion dollars. Slightly
more than the GDP of Iceland.
[Music]
After the financial crisis of 2008, the
world got Uber, Airbnb, and Groupon. What
do they have in common?
They save people money in times where
they need it most.
The crisis is speeding up the "Amazonification"
of the economy.
It's fueling the digital transformation
of businesses. You better jump on the
train before you miss it. Many people are
starting to shop online more and stream
content over the internet more. So here's
my advice: look for ways to modernize
your business and adapt to the post
pandemic world. Also keep in mind that
due to mass layoffs, more people are
looking for work, hence is cheaper to do
business.
Look into e-learning, online shopping,
entertainmen,t and the health sector.
These industries are booming
lately and their popularity won't go
down anytime soon,
When people go into a frenzy and start
panicking, the rich calmly go on a
shopping spree. There's a reason why the
rich constantly have their eye on the
market. They like to thing one, two, and
even three steps ahead of the curve and
put themselves in the right position to
make the most of what's to happen. But
instead of stocking up on toilet paper,
they're buying shares into some of the
biggest companies in the world at a
discount,
Basically a recession is a Black Friday
for rich people. Companies aren't the
only thing that struggling right now.
I consider real estate to be the best possible
asset anyone can own. The process is
simple. Recession hits, people panic,
fear takes over, people lose their jobs,
the economy shrinks ,demand drops, prices
drop because normal people can no
longer afford it, the rich come in and
pick up everything of value at a
fraction of the cost.
Home prices decreased by 20% during the
2008 financial crisis. Some areas even
experienced a 30% to 40% drop in their
prices. Many real estate empires were
built at this time. Times like these take
people from the upper middle class to
the millionaire class fairly quickly.
Because the economy is in a standstill,
banks are also losing money ,so they're
doing their best to pick up new business.
They do so by lowering interest rates.
Rich people with a great track record
can simply borrow money for little to
even zero interest rates.
Let's pause. I want to ask you something:
I know you might not be super rich but
I'm sure you have some ideas to come out
ahead of this crisis, so how do you plan
on making money during this recession?
Leave a comment down below and I'll make
sure to leave a reply once you do so. Now
is the perfect time to renegotiate
everything. The rich love getting better
deals and they end up paying less for
products and services when a crisis hits.
businesses are so desperate to keep
their important clients that they agree
to terms that they wouldn't have
accepted normally. Just by picking up the
phone and renegotiating, the rich are not
only increasing their returns but also
freeing up money for everything else we
discussed in this video. But one question
remains what do you do with all that
money? You move it to tax havens. A tax
haven is a term used to describe any
country which offers its citizens and
businesses lower tax rates than your
nation does. These include famously
Bermuda, The Cayman Islands, Jersey, The
Bahamas, and the British Virgin Islands,
and many more. There are a number of
different ways which businesses and
individuals can avoid taxes using tax
havens; one of them is to register a
company's headquarters in the tax haven
and pay lower taxes. One of the things
you fear the most is governments
devaluing the money you worked so hard to
get through inflation.
Inflation comes as a result when new
money is printed and it floods the
economy. For the past 100 years, this has
been the main play governments have
taken in order to stabilize the economy.
With all that money that the
governments are printing, there's a high
chance of hyperinflation and the
devaluation of the dollar. You see this
coming
and you want to safeguard your
investments. So what do you do you? Take
the money offshore. Recessions
determine the new world order. It all
comes down to macro economy and
geopolitics. The more you study history,
the more you understand the cyclical
nature of it all. Every 50 to 100 years
there's a shift in international
hierarchy. After World War II, the United
States came out ahead and the dollar
became the international reserve
currency.
This is likely about to change
with China overtaking the United States.
Historically China has been the world
leader for way longer than the US. These
changes don't come peacefully, it's
usually war or a great depression that
drives them, and statistically we're
towards the end of the cycle and changes
are due. The moment China overthrows the
US as the number one leading superpower,
the yuan becomes the reserve currency and
the entire US financial system will
collapse forcing the US to retaliate
militarily or accept its fate.
Historically, the larger the gap between
the rich and the poor, the closer you are
to a war in general.
The first steps are usually a state of
unease ,losing trust in governments ,and
arise in populism. All of which we've
been seeing all around the world lately.
[Music]
You've arrived at the end of the video
but don't click off just yet! I want to
know; what will you do during this
recession to reach your financial goals?
No matter what happens, I hope all of you
will find your spot and thrive in the
upcoming world. My goal of this channel
is to create entertaining documentary
style videos on business, finance, and
entrepreneurship in general. If you
genuinely enjoyed this video, give a like
and comment down below. If that sounds
like something you'd be interested in,
and you want to tune in for more, hit the
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release.
[Music]
