The 2023 Recession Keeps Getting Worse

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The Debt Ceiling:
Simply put: the “debt ceiling” is the MAXIMUM amount of money that the US Government is allowed to borrow, to pay for all of its obligations, like social security and medicare benefits, salaries, interest on the national debt, tax refunds, and a multitude of other responsibilities that a country needs to maintain. However, once this debt limit is reached, or - we hit the ceiling … all of those items can longer be funded to the point where, services slowly begin shutting down to conserve resources.

As of now, the United States is expected to reach their “debt limit” on Thursday, January 19th…after it was already raised by $2.5 trillion dollars back in December of 2021 - Although, what makes THIS time so unique is that it’s no longer a game of money, but instead, it’s a tug-of-war of negotiations.

In this case, In THIS case, one side wants their spending initiatives to pass, while the other wants spending to be REDUCED - and, they both have to agree if we’re to move forward. As the New York Times pointed out, “breaching the debt limit would lead to a first-ever default for the United States, creating financial chaos in the global economy. It would also force American officials to choose between continuing assistance like Social Security checks….and paying interest on the country’s debt”

If we look back in history….so far, the “worst” debt-ceiling standoff, which resulted in a lower credit rating, caused the markets to drop almost 20% in TOTAL until a resolution was drawn - from 1995 to 1996, the SP500 dropped about 4% - 2013 saw another 6% drop - and, over the last 10 years, we can see that there’s typically short term hesitation in the markets…until it’s eventually raised, and then..the stock market goes up right alongside with it. 

So, the reality is, short term until this is resolved, investors may try to price in the slim, slim, slim chance of a government shut down - but, as we can see - realistically, they would NEVER allow the government to get to the point of defaulting on its debt, and - most likely, everything will carry on as usual, especially considering that we have until June to figure something until the “extraordinary measures”run out.

It’s probably not something to worry about, although - if you see it listed as a headline in the coming few days, weeks, or months, at least now you know WHY its become such a large talking point…and hopefully, this helps you understand a little more as to how dysfunctional the entire process really is.

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[nicolasbenson]

Recessions are an unavoidable part of the economic cycle; all you can do is prepare for them and plan accordingly. I graduated into a slump (2009). My first job after graduating from college was as an aerial acrobat on cruise ships. Today, I work as a VP for a global corporation, own three rental properties, invest in stocks and businesses, run my own company, and have increased my net worth by $500k in the last four years.

[joesphcu]

Instead of trying to predict and prognosticate whether or not we’re going into a recession and precisely when it’s going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

[Curbalnk]

I used to think everybody went broke during the Great Depression and other major crashes but they didn’t… Some made millions, I also thought everybody went out of business during these times but they didn’t, some went into business, there's always depression/recession for some people and there's always a good time for others, it's all about perspective. My primary concern is how to grow my reserve of $400k which has been sitting duck since forever with zero to no gains.

[michealwrubell]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies

[mateosantiago]

One thing people fail to do (especially millennials) is INVEST. I made my first million from blue chips and top etfs using a broker so i invested and re-invested my profits. I also acquired large amount of high-quality dividend-paying stocks too that gives me a solid base of passive income. ever grateful to Olivia Maria Lucas handling my portfolio, two years now and she still surprises me, she's actually the only person i know that's richer than me haha

[donaldjack]

We are already in the big crash, inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops . The unfortunate issues is that the other market are being decimated. If you want to stay green, you have to rely on a lot of diversification.
Currently up 15% and being carful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.

[em]

It’s always cuts to healthcare, SS and pensions but never defense cuts or their own salaries

[alexander]

Recessions are like a hangover. The harder you partied the night before, the worse you will feel the next day

[sabrinahuyke]

I have to say that this video felt a lot more genuine and helpful than some others you'd been putting up in the last few months. I watch this channel as one of my main sources of all things finance and economy, and I am very happy that you shared everything in this video!

[patriciacarlos]

A lot of folks have been going on about a January rally and said stocks that would be experiencing significant growth these new year season, any idea which stocks this may be? 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?

[nicholasshawn]

Great video, I agree having a brokerage advsor for inveesting is genius! Not long ago amidst the pandemic crash in March 2020, I was really having inveesting nightmare prior touching base with a advisor. In a nutshell, i've accrued over $950k with the help of my advisor from an initial $70k investment thus far

[loukache]

In my opinion, the go to remedy to weather this recession and high inflation is short-term trading, as opposed to long-term trading, most folks using these techniques are netting a ton of gains, sure the risks are higher but yet again isn't the current market equally as risky?

[zoeytank]

Investors have a lot to think about and losses to make up after a dreadful year in 2022. The Federal Reserve is expected to continue raising interest rates even if the economy slows down, which implies that portfolio returns will be negative in the first quarter of 2023 despite an inflation report and a wealth of other data. In this shaky economy, how can I generate money? Yet debatable is my $250k bond and equity portfolio.

[livephysiology]

It's interesting that if an individual went to a financial planner, the first thing the individual would be told would be to look at the budget and remove unnecessary expenditures. Then towards the end of this video Graham points out things the government has spent money on. Would the government benefit from the same financial advice anyone would be told to cut unnecessary expenses first before anything else?

[perezfamilyadventures]

You explained it good! Yeah, hitting the debt limit is basically business as usual.

[KelvinCesar-bvow]

A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time.

[pqtaxmom]

I’d leaning towards there’s no soft landing. There will be a recession and hopefully it’s not as bad as 2008.

[thefocuschic]

It's impressive how you can explain complex topics with such ease. Subscribing now!

[melvinmerlos]

The only wasteful government spending is military budget. Way too bloated

[boondoggle]

Did you see what happened with the vote for the speaker of the house? It’s the first time it took that many votes since before the civil war, and Kevin McCarthy had to make a deal with hardline conservatives not to raise the debt ceiling without cuts to Social Security and Medicare, which democrats are not going to do. It also sets the terrible precedent of one party threatening a default unless their demands are met. I wouldn’t be so sure that we aren’t going to default this time around. The speaker of the house vote does not leave me with confidence that things will go smoothly.