Don’t believe the shocking headline… It’s a trap that will get your mind racing with fear and fright… Focus on the detail and what that means to you personally. It may not be all that bad despite what will definitely be a bad recession with terrible numbers and potentially a long sting in the tail of recovery.
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Hey guys so 300 years since the last recession of this size. Now actually it’s a horrible comparison because 300 years is such a long time ago it wasn’t modern economics, there wasn’t the understanding the economics, there wasn’t the international trade worldwide you know none of this went on.
Let’s cover that today and what my thoughts are on that 300 years is. So guys don’t forget any questions you’ve got put them in the comments. Make sure to subscribe to my channel I’m you know recording heaps and heaps of information all the time and actually really enjoying responding the answers.
Bottom line is yes 300 years so it’s a pretty full-on statistic and you know. I think the Bank of England is right to say that because I think we’ve largely been shielded from the full impact right now. Come July first it is gonna hit and it’s gonna hit hard in our minds okay not necessarily is it gonna hit straight away. I think if anything I think the plans that the government have put in place to get people back to work off furlough and to get things moving again will actually work for quite well. And I think they will have a dramatic impact now that’s not to say that it’s not gonna be an increase in unemployment. That’s not to say that we’re not going to be a recession. That’s not to say that it’s still going to be a recession like anyone that says that we’re just gonna do this V-shape and get back to it and everything will be ok it’s not going to happen.
Number one we’re starting to solve the virus problem. So there’s that issue with the in the UK certainly. We are one of the worst-hit countries and our response has been the worst of any country to be fair you know. There’s a lot of that sort of stuff which you’ve got to take into account. You can’t just discount it by saying oh no it’ll be fine you know it’s a virus and once it’s gone it’s fine. It’s like nope it’s gonna hit hard you can’t stop an economy for so long and have businesses off and have staff you know off and all this sort of stuff that’s been going on. You know there’s the direct stuff with you know people getting back to it that’s gonna take some time. But then there’s the other side of things which is you know some people and I know some people have been speaking to – who are sitting there and actually I’m not really that impressed with my job and you know maybe what I’ll do is I’ll go get another job you know as best I can. Or I’m nothing to go back to that guy because the employers pissed them off or something like that. I mean there’s plenty of um examples that we’re seeing of you know agencies that have furloughed staff and made a few staff work and just said right here’s the 20 staff there’s two left you do all that work and they’ve really just been putting the putting on an end so there’s a lot of cases like this.
So I don’t mean we can discount the fact that we are going to go into our horrible recession but the question becomes what does the horrible recession mean? Because a drop in GDP you know an increase in an unemployment rate that doesn’t necessarily affect everyone equally so the question you have to ask yourself is how is that going to affect me? Is my job secure? Is my income secure you know. How’s my portfolio going? How are my tenants going? How are my property? you know you’re gonna ask all these sort of questions you know what savings if I god if something goes wrong?
All this sort of stuff you need to be doing now and actually you should have been doing it before but if you haven’t let’s do it now and get that and get some certainty around that. Because you know it may well be that we hit the 1st of July and it gets announced and everything goes ah you know and everyone goes crazy about worst recession in 300 years you know that’s a great headline.
Let’s face it we are in a society that loves headlines. Read the detail below it ok because what they’re not saying is they’re not saying yes comparatively they’re saying 300 years ago you have to look back for such a drop in GDP. But they’re not saying that it’s going to be this elongated 2008 type style where it’s a whole decade of austerity. I mean we in the UK went through a decade of austerity, it was terrible yeah the rest of the world got on with it and the UK just floundered you know. Stupid bloody what is he named Alistair Darling and frickin I can’t remember their name they’re so insignificant in history you know Gordon Brown and whatever you know those guys you know.
Bottom line is you know it shouldn’t they should have done that they should have been investing infrastructure. I’m hoping that when we get back that’s what the government does. Forget the debt, I mean look at America you know I don’t use America in the example of you know how to do things very often. But the one thing they do is that they don’t care about the debt they just keep printing money. And they just keep spending it now they’re spending in the wrong places and they’re you know social disharmony in all that. So we’re not getting into that debate on here.
But the bottom line is a 300-year recession, yes, but read below those headlines and I think you’re gonna find that actually we can recover relatively quickly as long as that unemployment rate doesn’t get up too high. And those people get absorbed back into new jobs and there’s a lot of new jobs being created is a lot of new industries that are still growing and will continue to grow and actually you know if anything that it’s done it’s hastened the demise of a number of industries that really were on the way out anyway. You know things like retail you know most retail shops they haven’t been competing they’ve been you know their margins are going down and down and down and down and actual fact they are not doing anything. I mean that’s where a lot of the big retail chains are falling over now. Because they just can’t do they can’t compete against the online model and that’s where the Amazons are getting here they’ve put out a corporate bond and they pay point four percent on a corporate bond. That’s like that’s so cheap that’s just why would you buy by billions and they did. You know I now fund their expansion and they’ll take over the world the reality is that’s what they’re doing you know it’s unfortunate for small business that the governments around the world provide that but that’s a whole nother story.
But look guys you need to work out how it affects you. I still stick to what I’ve been saying which is yes it’s going to be devastating the stats are going to be terrible. And they are already but it doesn’t affect you in such a negative way in actual fact you can take advantage of opportunities. I mean I’m talking now between two different parties that I’m working closely with you know a 60 million dollar fund just sitting there. You know to go in and buy assets and that’s the sort of opportunity that you want to get involved into. I mean not the 60 million but on your scale.
There will be opportunities where you can go in and whether it be developers offering it where there be individuals whatever it is. Go in and get those opportunities because when it comes around that’s when you’ll see that benefit right guys have a great day live with passion and speaker I’ll see you later bye