Recession is coming

Economists say 2020 recession likely housing market won’t be the cause

So more recession talk. This seems to be a self inflicting phenomena as more and more negative news is appearing world wide. Now the economists say 2020 recession likely and the housing market won’t be the cause. So what will the cause be? Gee I wonder, could it have anything to do with the trillions of dollars in debt sloshing around the world. This debt is what keeps the wheels churning on the world economy after all.

What is going to happen when the velocity of this money speeds up to keep the bubbles afloat. Gosh, could it be inflation! Maybe Deflation is upon us. Who knows. Whatever is coming down the path you better get out of the way or it is going to eat you up. Run for cover because this wave is going to drown a lot of people when the dam bursts. So maybe we should take a look at what the big boys think.

Economists say 2020 recession likely housing market won’t be the cause

According to a panel of more than 100 housing experts and economists, the next recession is expected to hit in 2020. A few even said it may begin this year. While another substantial portion predict that a recession will occur in 2021. One thing for sure is they all expect something nasty is coming down the pike and it ain’t going to be pretty.

Could it be China that leads the pack down. Maybe it will be the Euro Zone and their negative interest rates. Surely that can’t be a good thing for us Baby Boomers trying to make a few bucks. I sure ain’t going to put my money in the stock markets when their at historic highs. Although they say that this is the place to be. What worries me about this is what if the trillions in corporate debt starts to implode! Yikes, run for the hills.

Economists say 2020 recession likely housing market won’t be the cause

So if it is not housing then what might cause the next cycle downturn. What about just the regular Joe. I mean he is leveraged to the max just trying to pay the monthly bills. The 1%ers sure don’t give a hoot because they got all the dough and they couldn’t care less about a few billion or so. When a slowdown does occur and lay offs occur the other 99 per cent are going to cut back on spending. Don’t forget that spending makes the world go round.

Can you just imagine what the Fed will do when people stop spending money. They will phone up the boys at the printing press and get them to work overtime to wack out a few more trillion. This money will be loaded into helicopters and dropped onto the people who will run out and spend it. Remember when you spend a buck someone makes a buck. Whoever makes the buck will go spend or invest that same buck. This is called velocity of cash which makes us all keep busy at work all day feeding the wife and kids. Could this be the cause of the next downturn?

If not Housing then What?

Well it looks like the smart guys think the next downturn will not be housing. Simply because housing is already going through a correction around the world. Sure it might level off and just keep dropping slowly for years in price. This will probably be the housing outcome just a slow fizzling over a decade or two. Housing will still be needed of course but the Baby Boomers are retiring now and selling. Who will buy?

Trade policy, Geopolitical risks are the top reasons for a downturn. The stock market is also high on the list but I can’t see a major crash just for the fact it is the only game in town. More likely it will come through the debt crisis that is about to occur. But that doesn’t mean that housing will be immune to the effects of a recession. It seems like there is no asset that will not be at some risk when the downturn hits. Printing money into infinity is a dangerous game and could cause a total collapse of the financial systems around the world. History hasn’t taught these guys nothing it seems and they are just going to keep playing the game.

So what should you be doing to save your ass. Buy some Silver my friend. It is cheap right now and when the waves start to grow and the dollar starts to crash silver will shine. Get your self some insurance. Those who snooze when it is time to collect food for winter will go hungry. Wake up and get some silver today. Don’t wait because the next recession is on it’s way.

Trade policy, a geopolitical crisis and/or a stock market correction were the identifying factors found by the panelists to cause the recession. But that doesn’t mean that housing will be immune to the effects of a recession.