56 - COVID-19: The Financial Reckoning That's Coming

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What happens when the Feds stop handing out free money? The unemployment numbers are at 35+ million and counting, and yet the stock market is still going strong. What happens when all the unemployment benefits end and rent is due?

What happens when the Feds stop handing out free money? The unemployment numbers are at 35+ million and counting, and yet the stock market is still going strong. What happens when all the unemployment benefits end and rent is due? There is going to be a massive financial reckoning for all of this money printing, society is going to change, and you need a strategy to deal with the fallout. 

In this episode:

  • NY Fed Report on Q1 debt  [:30]

  • CARES Act creates conflict between employees and business owners [4:00]

  • The stock market doesn’t seem to care about any of it [6:00]

  • When are the jobs going to return? [7:00]

  • Law firms are hiring bankruptcy attorneys [8:30]

  • Oil and gas industry is in the red [9:00]

  • What’s the plan? [10:00]

  • Option #1 = what’s the plan for herd immunity [12:00]

  • Option #2 = what’s the plan until a vaccine is developed? [14:00]

  • Currently there is no plan and the economy is feeling it [16:00]

  • 35+ million unemployed and counting [19:00]

  • What happens when benefits run out? [22:00]

  • When will people feel safe enough to resume normal life? [25:30]

  • Second wave of layoffs is coming [27:00]

  • When the benefits run out… [28:00]

  • Consumer debt grows [32:00]

  • Extend and pretend continues [34:30]

  • Rent isn’t getting paid. How long will that go on for? [38:30]

  • Corporate bankruptcies are coming, oil, retail, gyms, and rental cars to start [41:00]

  • NYTimes predict 40% of small businesses will fail [45:00]

  • A V-shaped recovery is unlikely [48:30]

  • The nature of jobs and offices will change [51:00]

  • The stock market remains irrational [56:30]

  • It’s time to be conservative with your money [58:30]

  • Put the cork back in the champagne bottle [1:00:00]

  • What to expect [1:01:30]

  • Why having more debt isn’t as bad when inflation occurs [1:06:00]

  • Why this reckoning is going to be massive and why you need a strategy [1:07:00]

If you’d like to watch on YouTube, check out our video here: