I'm pretty sure I started warning everyone that this was coming...back in late summer of 2016. Then the "reports" came out after the close of the 3rd and 4th quarters of 2016 substantiating everything I said: that the "sub-prime" credit bubble was set to burst. Again.
The reports were worse than ever this time last year when it was reported in the 4th quarter of 2018 that our sub-prime credit bubble was worse than previously thought before.
And now, a year later, the numbers are worse than ever before, even to the point where Warren Buffet decided to sell off his stake in Wells Fargo, a noted sub-prime lender of all kinds of sub-prime debt including car loans, signature loans, home mortgages, etc.
Apparently nobody learned ANYTHING from pre-2008. And if they did learn any lessons, they've certainly forgotten them already.
As of the close of the last fiscal quarter, approximately 6 million people (all with credit scores below 620) were 3 or more months late on their car payments. Even worse, car loans are STILL being made to people with FICO scores of around 520. These people shouldn't be given a loan for ANYTHING let alone a new (or used) car.
And yes, banks have already restricted lending on -- you guessed it -- REAL ESTATE because they have to start hedging their bets against the astronomical losses on all kinds of loans that they're already taking.
This would be REASON #1 as to why and how our economic conditions will suddenly show signs for the worse.
So...what would be the second reason?
Remember that "trickle down" economics theory? You know, the one that NEVER works the way anyone tries to "sell" it to the American public that it will? Well, your large corporations like Carrier are laying people off because, well...they would like to keep EVEN MORE of their newfound profits. Why stop at just paying LESS in corporate taxes? Why not lay unneeded workers OFF to keep EVEN MORE money? As Homer Simpson would say, "Duuooh!" Yes, after the fact, it kind of IS that obvious to those of us who actually have a few working brain cells in our skulls.
The final reason is -- as something I've been talking about for YEARS now -- plants, manufacturers, and even RETAIL businesses are starting to AUTOMATE anything and everything they can.
Case in point, Amazon has been promising jobs left and right to be able to get local tax breaks AND promised incentives to park their new distribution centers in a wide variety of areas including economically-stressed places like Detroit. What they'll generally do is make a load of promises on jobs, get in there, and every-so-slowly hire people in...probably with no intent on keeping up with the promised job numbers. At least not any time soon. For example, they have a new 1-million-square-foot warehouse in the Midwest in which they promised 1,000 new jobs. First of all, a warehouse THAT size should command many more than just 1,000 jobs. But even still, they didn't hit the mark on hiring all these people. Not yet. Will they? Who knows?!
Walmart and many other companies are cutting back staff and employees for automated technology. And I've been sending out this warning for a long time now.
In fact, if I owned a bunch of fast food restaurants -- say McDonald's -- and I was suddenly hit with this new $15-an-hour minimum wage requirement, I'd GO INTO DEBT for the next 10 years buying new automation equipment than to cheerfully give a bunch of career-burger-flippers a full-time position at $15/hour for...flipping burgers. Ridiculous. If anyone ever thought that kind of job was supposed to be a career giving them a "livable" wage, think again...and maybe go back to college while you're thinking.
Back in my day, getting a McDonald's job was supposed to be for those of us still living with our parents. It was supposed to be a side thing that we did after school and on the weekends while we were in high school for some pocket cash. It was NEVER meant to be a "career" by any stretch of the imagination. So, all these dim-wits who think that a job like flipping burgers at McDonald's IS supposed to be a long-term career...well, those people are all in for a very rude earth-shattering awakening when these business owners start thinking like I do and that is to AUTOMATE and REPLACE as many human workers as possible.
After all, why deal with the employee liability when you don't have to with a robot? No more calling in sick (and taking sick pay), being rude to customers (including spitting in the food), dealing with sexual harassment charges or other possible bogus claims, having to shell out on unemployment if they are "not rightfully" terminated or laid off, paying for insurances (health and Worker's Comp)...and on and on it goes with human workers. With robots, all you need is an independent contractor to service the equipment once in awhile and...there you go! No inconsistencies in performance, no liability, no additional expense...no nothin'!
TREND ALERT: If you're paying attention to what I'm saying, you'll realize that being in the "robot biz" is where it's going to be at now and in the future.
If you recall -- post 2008 years -- our economy shifted in such a dramatic way, even eliminating certain industries altogether AND IT'S ABOUT TO HAPPEN AGAIN!
Are you prepared for this?
The BEST way to prepare is to be able to PROFIT from the changes and drops that are coming up.
And I have an answer for you.
CLICK HERE for the answer that will LITERALLY be the answer to your prayers when the sh** hits the fan (which is happening NOW if you're paying attention).
See you at the top!