Quote:
Originally Posted by TakeFive
Fair enough; the 80's S&L fiasco was noteworthy for commercial property. Actually, Denver experienced a double-whammy because when the Oil & Gas guys packed up their bags and left town they left behind see-thru office buildings downtown and also thousands of empty housing units. But the S&L crisis was largely limited to well S&L's along with those cities left with vacant commercial real estate which was bad enough.
The Great Recession however was the worst financial crisis to my mind caused by a huge real estate bubble. We, the U.S.A. managed to create a Global financial crisis the likes of which I've never seen before. How many $trillions did it take the Fed to backstop this crisis using levers they've never used before? Maybe you were relatively unaffected and thanks to the Fed (and to Obama's ARRA) many were able to carry on with their lives without much pain. But I hope to never see the stock market dive to such depths ever again. Let's just say the stock market wasn't lying; those were very scary times.
|
That's exactly what we are headed into now. Only this time, the recovery period won't see the job growth recovery that we had after the great recession. That is because, in order to survive this recession, companies will turn to AI and robotics to cut costs. So how will we rebound the 2/3rds of the economy based on consumerism, without solid job growth? A corporate taxation on AI and robotics assets, which in turn will fund a UBI. Initializing the UBI brings a boost to consumer spending, which leads to an expansion in service industry jobs which haven't been replaced by technology. They won't be great paying jobs, but in addition to the UBI, it will add up to a secure middle class lifestyle, which in turn further expands consumerism and specifically the service industry as well as technology services sector (R&M of robotic assets).
I have already cashed in on all my capital gains - as of July 22nd (18.5% in gains, to be exact) along with~60% of my holdings. I have eliminated most of my debt and what debt remains will be paid off over the next two years. I have shifted an additional 7.5% of my remaining holdings into gold as well as another 10% shifted over into high grade bonds. During the upcoming recession, I plan to pump liquidity into equities in carefully selected corporations, which are embracing AI and robotics. I will also invest heavily into blue Chip tech companies and other high dividend companies which have a place in this AI & Robotics based economy. I will also look to purchase a home in a projected optimum buying window which should exist between 3-5 years out from now. I highly recommend you all take similar actions to take advantage of this great opportunity quickly approaching us. I'm walking a very fine line of being completely off topic, so I won't discuss it again on here. My apologies.