Americans have STOPPED SPENDING (2023 Recession Warning)

There was a BIG DROP in Retail Sales in March according to data from the US Census Bureau. A signal that consumers have stopped spending and that the 2023 Recession is getting worse.

This reduction in spending is causing big issues for Wall Street. Publicly traded companies are forecast to see a 7% earnings decline in Q1 2023. A signal that we are likely to see more layoffs ahead as Wall Street companies look to increase their profitability.

The current economic environment looks very similar to the spring of 2008. Right before the Great Recession. It was around the same time back then that we had a slowdown in retail spending and earnings. That occurred about 4-5 months before the massive financial crash and widespread Layoffs.

All these headwinds are occurring while Jerome Powell and the Federal Reserve are still hiking interest rates. And taking money out of the system through quantitative tightening. Further monetary tightening risks plunging the economy further in recession as betting markets are expecting another Fed Rate Hike at the May FOMC Meeting.

And the fundamental problem in the US Economy is that Inflation has raged over two years, and has grown more than wages. Which has left Americans poorer, with near record low personal savings and consumer sentiment.

I suspect all of this could combine to cause a Deflationary Crash and Recession as 2023 progresses.

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[ReventureConsulting]

Simple formula, everyone.

Lower Consumer Spending --> Lower Wall Street Profits --> More Layoffs

Which then cause consumer spending to decline further. And profits to drop by more. And then even more layoffs. This is ultimately how a Recession works.

Many people have forgotten this reality and are about to get a rude wake-up call in 2023.

[bernardallen]

Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.

[williamyejun]

Inflation depreciates idle money. I'm in a privileged position to be able to save almost 65% of our net household income, as I placed it on safer investments. The key for us was not spending beyond our means. If you invest and have other sources of income outside of dividends then you will be able to live off dividends. Got north of $200K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further

[belljoe]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun.. Lloyd Bernard

[Raymondjohn]

Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[Sheil-hard]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues.. well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60. I need suggestions on what investments to make..

[alexyoung]

Recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.

[Nernst]

America is done. All signs suggest that 2023 will be a year of severe economic pain all over the nation.Several of the biggest market experts have been voicing their opinions on exactly how awful they think this downturn would be, and how far equities may have to go, as depression draws closer and inflation continues well above the Fed's 2% objective

[jessicamoore]

To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I’ve heard testimonies of people accruing over $550k during recessions

[anniealexander]

I'm in fiber optics. Last night I had nothing to do for 10 hours. The company I work for paid me to sit at my desk. It's scary....I fear a layoff is coming.

I've already cut my spending. My money is going to pay taxes. I'm helping my son with his $2400 tax bills. Then I'll save for property taxes incase I lose my Job.

Lord help us!

[monerharris]

America as we know it is finished. All indications point to 2023 being a year of severe economic pain across the country. Put that money to work right away to make it grow. I knew I had to make an investment. I never imagined that a few thousand dollars per month would add up. However, it is. I've made around $600, 000 since 2020.

[bikenb]

The recession already here.... The greed has gone out of control. We're just seeing the fruit.

[throbbybobby]

My family tightened up spending over the last few months. Comically, the final straw for me was ordering an extra large cheese pizza and a small side salad for pickup. I was told over the phone that the price was $29. When I picked up the food, I used my debit card and the new price was around $31. She said they have to charge a 3.5% fee for using a debit card. She then asked if I wanted to leave a tip. $31+ for a cheese pizza and side salad.

[ryanvertucci]

Nick, I just got a message from a friend who works for Citibank (the second largest bank in the US)
"Heads up Citibank is initiating massive efforts to prepare for a government shutdown this summer including a potential block on the issuance of new US government bonds. We have never taken this so seriously 2 to 3 months out before. Not sure if its because we know something or taking extreme caution around the bond market"

[hankhill]

20% credit cards, cars getting repossessed

[GamessoslOol]

Just wanted to say that Im glad youre back with weekly content, you are one of the best financial channels on you tube.

[JackDanaher]

I've heard this month 4 Walmarts are shutting down in Chicago and 27 Burger Kings are closing in Michigan. Businesses are struggling in big cities and it will get worse month by month.

[ralphseewald]

Back in the 1970s my paycheck was $110 a week and that was enough for my own apartment, car, savings and spending money. I bought my first home in 1988 for $5, 000 cash

[Harperrr.]

The stock market rally still appears to be in the midst of a normal pullback. I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?

[socalsal]

Just like in Christmas Vacation, my company for the last 20 years has always given out financial bonuses and of course they are included in my tax form's total taxable wages. The past couple years they have been cut dramatically (despite my having higher performance review ratings) so on top of my measly 2% 'cost of living' increase I actually have been making less and less money each year at my job. I'm scared of losing seniority by going elsewhere so am just cutting back, but I definitely feel the hurt already.