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The next financial crisis in stock market crash that is what we’re talking about today no intro no bf i just want to get straight to the action guys now you know i’m on record on this channel of saying i do not believe there will be a recession or stock market crash in 2017 we’re about six months out of 2016 being over i still feel that way i do not believe in
2017 we’re gonna have a recession a stock market crash but i was just thinking about things right now and i was like what do i see as being the triggers that will start a massive financial crisis a a stock market crash scenario what are the triggers i see happening that could realistically happen and send us into a panic go bad mode guys and this is this is an
Interesting time for me to do this because we know the nasdaq is having a great year right now we know jobs or jobs numbers are strong in the united states like just everything’s pretty good right now it pretty good and it’s very complacent it’s a very good time where you can get complacent right now and just think like these good times are going to keep going on
Forever and ever and this is going to keep up and this is just the way things are like things are just solid the stock mark is just going to keep going up jobs numbers is going to keep getting better and better and that’s not always the case so we got a we’re going to dive into this guys i hope you enjoy this today so first thing i could see triggering and helping
Trigger a big financial calamity right is people losing retail jobs over the next few years i would say over the next three four or five years i see millions upon millions or retail jobs being lost all across the united states that puts millions and millions of people out of work either trying to search for another job to do or in the worst part is those those
Retail workers that are going to lose those jobs a lot of them are are that’s the only thing they know how to do stock in a shelf bring in a register that’s a lot of i mean i’ve met a lot of great people i was involved with retail from the time i was 17 18 until i was about 24 not a lot of good people in retail a lot of people i liked i also met a lot of people
That don’t know how to fight their way out of a cardboard box like if they lost their job at such-and-such retailer like they’re done they’ve done like a like a turkey has been in the oven for two hours too long like they’re they’re cooked guys they’re completely done like they’ve no clue on which way to go what to do they just don’t have the drive to figure
It out they don’t have the education to figure it out they just if they lost their job at such-and-such place tomorrow they’re going to be on food stamps and welfare and everything else tomorrow like government health care like everything like that’s what they’re going to do until the you know the next job and they’ll try to reply you know apply it this place in
That place and guess what a lot of places they’ll be applying to or other retailers who are also still firing your employees at that time going to be ugly it’s going to be really really really freaking ugly guys so this is going to put a big big onus on basically the united states government which would be a really horrible thing especially when we have basically
Taxes amader are supposed to go down like corporation taxes are supposed to go down people’s taxes let’s go down you know i would love for my taxes go down i’m gonna probably paying more money than i’ve ever paid in any year in my entire life this year right in taxes i all will love my taxes to be lower but the issue is when you have everybody taxes going down at
The same time you could potentially have more and more people going on welfare and food stamps and all those things because they lose these retail jobs and they just don’t know how to get another job in another industry that’s a huge issue there guys and then you talk about defense spending being up even more than that that a huge huge issue there so millions of
Jobs being lost then you you take into account like how many jobs big retailers you know indirectly or directly affect so let’s say the big dog at the mall goes out of business you know the anchor store guess what that’s a lot less people going to that mall to go shopping in all those little stores you say well what people aren’t shopping as much at those stores
Maybe they’re shopping on amazon or e-commerce place the e-commerce tech companies they don’t employ nearly as many people as a physical retail store like a physical retail store you need way more employees than you do in online type operation guys so there’s already been over 300 bankruptcies in retail just this year so far worse six months into the year guys six
Months in video has been over 300 retail bankruptcies that’s just the start that’s just the start guys this could be a massive amount more coming and there’s going to get bigger and bigger and bigger so what you have is you have situations where strip malls can be losing some of their biggest tenants which means all those other people that are in the strip malls
That benefit business from people coming those businesses they don’t get as much business that way guys ugly ugly ugly so i see retail as being a you know a one that’s definitely a huge domino that could fall and i see it following don’t matter what the question is how big is it going to be are we talking like 1 million jobs lost over the next couple years are
We talking 5 million jobs in my opinion probably toward 5 million jobs and i’m not convinced that even half those people that are going to lose their jobs are going to be able to go find other jobs out there because i’m just not convinced some of those employees know anything other than retailing you’re going to have to go get in a job in some other industry at
The end of the day guys it’s not going to be they’re going to go you know they get fired at hey mart they’re going to go work at walmart because walmart probably won’t be looking for more employees at that time anyways or target or the the big department store at the mall or macy’s or dillards we know all those companies are cutting jobs right now guys that’s the
First domino i see happening the second domino domino we kind of talked about which is basically more onus being put on the united states government because people going on welfare food stamps all those type of programs our budgets getting even more out of whack in this country the third thing i see massive amounts of auto jobs lost over the next five years what you
Have is you have tesla coming in the game totally changing the game we know this we know tesla if you are not convinced tesla’s taking over the game then you are just in straight denial straight to the helots and the day tesla’s come in they’re taking over the game now or they taking it over we’re like tesla we’re going to make every single car produced absolutely
Not but what you have you have auto sales that are already falling two straight months of that automobile numbers you looked at the last two months already bad this isn’t a good economy right now guys a good economy and then you take into account okay so we’re in a good economy auto sales are falling and tesla hasn’t even ramped up production really yet in 2018
Tesla supposed to be able to produce 500,000 cars 500,000 by 2020 they’re talking about a million you take on million cars of being sold to tesla versus being sold to ford and gm and chrysler all those other automobile companies that are outside of the united states that puts a huge burden on all those companies because then those companies have to find ways to
Make their numbers so they cut price however they have to they do this they do that they you know skimp on quality they fire employees all these things it’s a bad situation has a little massive amounts of jobs going to be lost and you could say well maybe ford and gm and chrysler will beat out all the other ones i’m not convinced that they’re going to be able to
Beat out nissan nv tout honda envy doubt toyota and all these other content companies that compete guys i’m not convinced that you’re just the united states will be the winners so tesla will benefit because they’re kind of the big dog coming in right they’re going to benefit huge from all of us but you know maybe one of the big the big automakers make it through
This maybe one of the big ones actually make it through you got to think that you’ve got a thing ford and gm right or trading at ridiculously low valuations right now like we’re talking like you know pe that are just insane for what the market is trading at right now right little companies that are understood extremely well by every single mutual fund manager every
Single hedge fund manager out there every single high net worth person understands automobile industry this isn’t like some kind of complex thing that like you know the 60 year olds don’t understand this isn’t snapchat or facebook or google ads or anything like that they this is simple stuff like this is every single personal money understands us why are all those
People not putting money in those stocks it’s not like they’re going under the radar it’s not like ford and gm or under the radar and they’re like you know really small companies that maybe the mutual fund manager or hedge fund manager doesn’t see right now these are huge corporations that everybody sees everybody knows what type of value they’re trading at and
Yet they don’t want to buy them what does that tell you what does that tell you when you got a company that’s easily understood by everybody and the big dogs aren’t money into those stocks that probably shows you that those companies are going to come upon some very hard times and they’ve already reached peak valuations already guys so what you have is you have
A situation where massive amounts of jobs and you know let’s talk about you know seven to eight million jobs in united states of america or related to the auto industry right tons of those jobs will be lost because let’s say you know you lose a gm then you’re going to lose not just the employees that work at a gm right but you lose all the the indirect you know or
Direct beneficiaries of gm the ones that make that radiator hose right the ones that make the propeller on the car you know that is up in the front of the car the one that makes this screw that goes in this part like all these manufacturers all get hit they all get hit and they all start happening cut jobs or lose they’re completely completely lose their business
At the end of the day you have two huge industries in the united states of america – the biggest industries out there that that you know employees the most amount of people retail automotive the two of the biggest industries in america right both being completely under attack right now and you’re looking at millions upon millions of jobs being lost over the next
Few years from those industries regardless of what happens regardless of what happens millions of people looking for jobs somewhere else then you what you’re going to have to happen after that you’re going to have liquidity crisis in the startup market if you went around silicon valley and you try to find which companies were profitable versus which ones are not
Profitable you’d find about a you know this many companies that are actually profitable you find about this many companies that are unprofitable right now they’re all being funded by these these on you know angel investors that are putting money in them hoping that that’s the next instagram that’s the next snapchat that’s the next facebook that’s the next next
Netflix or pandora or youtube or whatever they’re just throwing money trying to hope that they hit the winner right and maybe if one out of twenty is a winner then they’re going to win huge on that know you know make a hundred times our money or a thousand times their money you’ll have liquidity dry up because then at that point with really you know all those jobs
Are being lost or you know then you have a situation where all those angel investors are seeing this the ipo market will start to dry up if the ipo market dries up as far as not as many companies being able to go public and you know make a lot of money when they go public those kinds of things you know just the investor interest in those companies aren’t out there
Then there’s no payoff at the end of the day for all those angel investors there’s no payoff because the ipo is to pay off that’s the big payday for those guys and gals so if there’s no payoff there because they’re the ipo markets weak then all those startups that are funding their businesses that are losing millions upon millions of dollars right now they’re not
Going to get funding guys they’re not going to get funding they’re like oh you lost 40 million dollars a share great job here’s another 40 million to spend next year here’s even 50 million that’s what’s going on right now with these companies it’s not going to be going on with massive amounts of jobs are being lost around the country and when you know the whole
Markets getting weaker angel fund managers can see all this happening and you know the payoffs not there when it comes ipo day so you know you’re going to go from a situation where silicon valley right now it’s so hard to find workers and you know these workers are making top dollar to a situation where you’re going to have massive amounts of people out of jobs
Because literally if you if you said tomorrow you can’t you know fund all these businesses that are losing mass amounts of money the amount of job you know the amount of people that will lose their jobs case it would be startling it would be absolutely startling you would be able to pay you know engineers that are making 150,000 right now you’d be able to pay 40,000
Because they’d just be a dime a dozen right now because so many of them are working for companies that are losing money quarter after quarter month after month year after year and it doesn’t take in here or to lose money at the end of the day guys so that’s a huge situation and then you gotta you gotta figure what happened from 2000 2006 in the tech sector there
Was all there was hardly any innovation because there was nothing going on you had the tech you know crisis in 2000 and then you had almost no innovation it was like a dark period from 2000 to 2006 the amount taken from innovation the amount of companies that were created that actually did something during those years super low guys like super low there was no
Innovation i see us going into one of those potential periods as soon as low liquidity dries up you know to fund all these companies as soon as that happens i see absolutely we’re going into another dark period in tekwar where for the last since basically 2007 when the iphone was launched right that is when the tech renaissance happened again and it’s been going
On for ten years now guys ten years of tech renaissance you have all these huge companies coming out of that time all small companies come out of that time ton of failed companies come out of that time a lot of people made massive amounts of money during this time the last ten years in the tech sector i think seeing up absolutely going into a dark ages for 5-10
Years then next time the liquidity all dries up guys absolutely number five what you have happened then is you have credit card start to be defaulted on auto loans start to be defaulted on angklung start to be default on in liquidity for everyone dries up liquidity for everyone you have everybody pulling back their strings you have a you know things going under
All these kinds of things guys and that’s just leads you into another big financial crisis that leads you into a stock market crash at that point and then just straight panic begins to set and it’s just straight panic at that point and it’s a survival of fittest who’s going to be able to make it at the end of the day but those are the triggers i see happening the
Next time a financial crisis happened in what could lead up to it my question is you know when government’s thinking about these things government even thinking about you know the massive amounts of retail jobs lost right now you know i’ve heard a lot of you know things on the political campaign that we’ll talked about oh we’re going to save coal jobs or to save
This industry those industries are little guys those are the little guy industries when you compare them to retail when you compare them to auto little guy industries so my question for government is what are you are you paying attention to this or you are you even thinking about what if five million auto jobs are lost over the next year in tests will only create
200,000 more auto jobs because that’s all they need versus what’s going to be lost are they thinking about that are they thinking about almost regardless five million plus retail jobs will probably be lost over the next five years are they thinking about this stuff and it’s not just that but are the people that are in these situations that are going to lose their
Jobs are they thinking about this or they think about well what’s the next thing for me i can almost darren’s guarantee you the first knock guys i can almost guarantee you the majority of those people are not thinking that right now and it’s going to catch everybody off guard in a ready and go well what the hell happened in it’s going to be ugly guys so the question
Is when does all this play out how bad does it get that’s going to be interesting to see well you know i don’t i don’t like i said i don’t feel it’s going to happen this year but 2018 i don’t know i’m just going to have to see how things progress throughout the year look at the numbers look at the facts behind things not just my opinion and then we’re going to see
And we’re going to go with some things but you know it’s factual massive amounts of retail jobs are going to be lost versus what’s going to be gained from working at the amazon distribution massive amounts of jobs are on auto sector are going to be lost unless somehow for and gm and chrysler all pull of rabbit out of their hat and all succeed just as much i’m not
Convinced to that guys i’m absolutely not convinced that at all maybe one of them makes it through maybe one of them at the end of the day so let me know in that comment section what you guys think you know i would love to hear from you guys in the comment section and your opinion on this whole deal guys i just you know it’s now fun to talk about it’s not fun to
Talk about but we need to talk about it if you just came across this channel you may want to subscribe we talked personal finance on the channel we talked entrepreneurship i’m an actual business owner and give away so many business tips we talk stock market investing more than anything thank you for watching guys and have a great day you
Transcribed from video
THIS WILL TRIGGER THE NEXT FINANCIAL CRISIS AND STOCK MARKET CRASH By Financial Education
