This is Awful | Massive Layoffs Coming | Economic Collapse

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Well folks unfortunately i have the unfortunate news to give you uh there’s gonna be massive amounts of layoffs over the next six to 12 months and i want to show you exactly what i’m looking at here what we’re going to be looking at and i want to share some perspectives on this and when i do one of these videos it’s not just to scare people or something like that and

You might even look at me and you’re like jeremy you’re planning on buying you know stocks over the next 6-12 months why would you buy stocks over the next 6-12 months if you believe there’s going to be massive amounts of layoffs over the next 6-12 months i want to explain that to you guys because just because you can have a uh a recession or even uh unemployment

Going up doesn’t mean necessarily uh stocks have to go down in that sort of environment and so i’m gonna show you guys a lot in this video it’s gonna be a very important video share this out with family and friends so they’re aware of this if they even care about this which if you have any sort of job you should care about this first thing i want to start out

Here to kind of calm everybody’s nerves i guess you can say in a situation like this is you know if you go back to the last massive recession we had right which this recession or potentially already in or gonna go into you know that’s a whole debate if this one’s gonna be worse or less bad things like that right but there’s one thing we know about that last

One is the market had already started drop way before people had really picked up on the economy was starting to weaken right it happened way before and essentially we were in a situation where the market was downtrending down trending without a lot of people paying attention it wasn’t until almost fall time of 2008 when the market was already down substantially

When it comes to stock market when people started actually paying attention you started hearing on the mainstream media and everything like that you heard about all the job losses and layoffs throughout 2008 and it just seemed like it just got worse and worse and worse right but the market bottomed in february of 2009 right now very strange that it just bottoms

In february 2009 while the amount of people on food stamps was skyrocketing the amount of people that had lost their jobs was skyrocketing the amount of foreclosures and short sales on homes was skyrocketing real estate was plummeting meanwhile you had the stock market starting to go up okay and so this is why i although i’m going to share with some awful news

With you guys here today and there’s going to be massive amounts of layouts for the next 12 months doesn’t mean the stock market’s going to be down for the next several years or something like that doesn’t mean that at all and that’s just if we look at history you can ha in the stock market can lead you to these things way before they happen essentially which

Is something that absolutely blows people’s minds so think about this you know throughout 2009-2010 the economy was in a horrible place i mean awful unless anybody paid attention to the economy in 2009 2010 it was awful and yet the stock market was skyrocketing real estate didn’t bottom until 2011 2011 and that was i think halfway through 2011 for the back half

Of 2011. think about these things for a moment right and so this is why somebody like myself is going to continue to be a buyer of stocks throughout 2022 regardless if we have a small recession a mid-size recession or a huge recession because at the end of the day you know i got to take advantage of deals in the market that are you know great values over the long

Term and just because you’re going through economic devastation uh unemployment rates climbing food stamps are going up all those sorts of things it doesn’t mean the stock market’s not going to actually go on a tear during that that situation okay now walmart just had their worst day since 1987. when we’ve got to go back to time periods before i was born that’s

Not no bueno okay there’s no bueno we’re talking about 1987 i was born in 89 man that’s awful like for walmart i couldn’t believe walmart was down double-digit percentage you know you know for most stocks in the market like double digit percentage big deal for walmart like walmart’s supposed to be one of the safest companies in the world to invest in like if you

Were to put a list together of safest stocks you could possibly buy the first companies that would usually come to mind are coca-cola pepsi walmart procter and gamble johnson and johnson like it’s usually starts with those sorts of companies and then it goes from there that’s like like as any investor just off top their head that’s the stocks they would go to okay

And here we are in a moment where walmart just had its worst day since 1987 guys there’s their worst myth since 1992 inventory was up 32 now some people that maybe are from the retail industry are like what’s the big deal about inventory being up 32 okay the former walmart ceo went on fast money and he said if you were at like eight percent that’d be really

Really bad if you were at 15 you’d be like oh my gosh this is awful he said 32 inventory up that’s apocalyptic that’s his exact words that’s the former ceo of walmart he said inventory of 32 percent is apocalyptic that’s type of number you look at and you’re like what just happened okay and this is this is flipping flapjack in walmart right i mean the average

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Customer of walmart the typical walmart shopper is a 59 year old white suburban woman earning 80 000 a year okay and you got to ask yourself what are we we’re just a bunch of 59 year old white uh suburban women making 80 000 a year okay no but in all seriousness the average income of somebody that shops at walmart’s like 70 80k right and obviously folks that make

Way less than 70 or 80k shop at walmart and people then even make more money than that shop at walmart the united states of america shops at walmart okay that’s who shops at walmart and so if you’re talking about a company like walmart having that big of a mess the biggest miss since 1992 that means their business is not in a good place and if walmart’s not in a

Good place can we necessarily say the united states of america is in a good place right with the consumer so this is the type of things that you gotta look at and you gotta be worrisome and obviously walmart is bigger than just the united states of america obviously walmart does business in all types of countries right but let’s be honest we’re what’s the biggest

Market for walmart it’s the united states and so we’re talking about they’ve got 3500 super centers in the united states of america a company doing 555 billion dollars in sales last year and we’re talking about just an absolutely apocalyptic number right we just got news that netflix just cut 150 jobs you know the number is not necessarily huge but when you

Look at like a cut like this right you got to think to yourself is this just one of many cuts coming because what you’ll see many times is companies end up having rounds of layoffs where it starts with 150 and then all sudden it’s like 2 000 jobs are cut and then also it’s like another 750 jobs you cut sometimes the especially if the numbers get worse and worse

For a company you have rounds of layoffs and it’s another round another round and it’s like holy smokes man when do these rounds of layoffs ever end oh my gosh right in a company like netflix has to do that because the numbers aren’t there for netflix right they’re not there the stock price is tanking the stock price is down 68 percent year-to-date and so they

Have to do something right and so they’re like shoot man we got to do something like that the subscriber numbers aren’t there we better we’ve got to cut employees we got to cut salaries we got to get this business more profitable right and you have to make very hard decisions if your company like netflix we heard about this about a week ago or so facebook freeze

And hiring what in the world are you kidding me you know they’ve been on a hiring insanity binge for like years now guys facebook netflix say what you want about facebook and netflix but those are factually two of the strongest companies in the world not the united states of america in the world and that’s factual not opinion and if companies like that have to

Cut jobs or are hiring freezing you have to understand we’re about to go through a massive uh 6 to 12 month span of layoffs essentially when you got worries at those sorts of companies i’m telling you that’s going to go way further you know who else there’s rumors uh you know and a lot of these things go behind closed doors but they end up coming out right what

Happens behind closed doors ends up coming out and from what we heard amazon is now saying that they’ve way over hired because essentially they were trying to stockpile workers because their revenue growth was like 30 40 percent knowledge and their revenue growth is like and also they’re like uh we way overhired okay and so don’t be surprised if amazon ends up

Going on a hiatus from essentially hiring right robin hood this just came out a few weeks ago robin hoods to lay off nine percent of their full-time employees if the market doesn’t come back in any substantial way and the market continues to deteriorate let’s just say that happens and you know who knows if that happens right could i could see a situation where

The market strengthens in the back half this year i can also see you know if if we talk about a lot of layoffs and something like that i can see a situation where the market continues to be not in the best place for you know several months right and so with a company like robin hood they lay off nine percent if the market got substantially worse from here there’s

Going to be more layoffs coming from that with how competitive that industry is and if you’re talking about the money’s not there and when you take into account how much money they’ve made from crypto and if crypto’s not in a good place oh my gosh and we’ve never even seen crypto there’s a thing we’ve never seen crypto go through a recession a real recession you

Know technically they went through the 2020 recession but come on right um and so we don’t know how crypto’s gonna react in that sort of situation maybe it does great maybe it holds up better than the stock market maybe it does way worse we no one really knows right because we haven’t seen it we can’t go back throughout history and be like this is how bitcoin held up

This is how ethereum held up so we don’t know that’s a big big wild card there right there right coinbase to slow hiring amid plunge in cryptocurrencies in tech stocks you know coin bitcoins around 30k it hasn’t even really had necessarily like a huge drop it’s not like there’s been some colossal massive drop in bitcoin price right bitcoins at 30k um for bitcoin

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This actually hasn’t been that big of a drop like you know bitcoin’s been through several like 70 80 90 percent type drops before what if we get that what’s coinbase going to do if anything remember coinbase was talking about tripling their staff tripling their head count nelson they’re like i don’t even know if we’re gonna you know double it i don’t even know if

We’re gonna hire more people than fire people now that that in it’s this is how fast it happens this is how fast it happens where it’s like we’re gonna triple our head count to like oh yeah maybe only double oh maybe less than double tolson oh actually no we actually gotta let some staff go especially with how competitive that space is you know if bitcoin starts

To roar again in ethereum and the cryptos hey you know then they’re fine right they’ll make it they’ll be they’ll be just fine but if bitcoin also falls to 20k if ethereum falls to 1600 1500 these companies could go from not just hiring freezers but to layoffs and the ones that already are doing layoffs will do more and more layoffs right all right and so this

Is a situation that we’re seeing play out right in front of ourselves right but i’m telling you guys all that’s just the tip of the iceberg it’s just the tip of the iceberg when it comes to this okay it’s like this little thing right here okay all this netflix and facebook and all that stuff and you know that’s pretty bad and that’s pretty worrisome and what if

It gets worse right but it’s just the tip of the iceberg right just the tip of the iceberg so the u.s 10-year treasury is been on a tear for about the last 18 months or so you know the us treasury went from august of 2020 the u.s treasury was 56 0.56 0.56 today the u.s treasury is almost 3 right so from 0.56 to almost 3 the treasury has been going insane no the

Treasury moves mortgage rates right and you can say the fed moves the 10-year treasury like all these things end up moving each other around us okay and so if you’re in an environment where the 10-year treasury is skyrocketing more than likely mortgage rates are going to skyrocket if you’re in an environment where the fed’s raising rates like crazy guess what more

Than likely the 10-year is going to go up more than likely mortgage rates going to go up all these things end up affecting each other essentially at the end of the day and so we’re in this environment now where the 10-year treasury is going beast mode and mortgage rates are going absolutely insane national average now is 5.57 that’s national average all right now

Here’s the deal we’re going over six very shortly for average then we’re probably hitting seven maybe maybe by the end of the summer when you go from mortgage rates at two percent something on average to six to seven percent by the end of the summer i’m telling you guys that is gonna wreck housing if you don’t think that’s going to wreck construction in housing

Uh you’re sorely mistaken and remember everybody looks at housing and they say well you know it’s been really healthy and things like that it lags it lags big time it lags a big time it always lags the market historically i went on to say the market i’m talking about the the stock market and housing always holds up as long as people have jobs right that’s that’s

Always been the thing as long as people have jobs they can pay that mortgage they can pay that rent they don’t have to get in any bad financial situation right well if all of a sudden you talk about you know people losing jobs and then some of these companies not hiring all of a sudden you can’t pay that mortgage and you have to force you know potentially foreclose

Or sell that property short sale and then you start having kind of like a panic build in the market and if you’re talking about simultaneously all that’s playing out while mortgage rates are seven eight percent no one’s out there buying those properties that’s just no way there’s no way that if mortgage rates are seven percent and you got all these properties

Flooding the market people are like uh yeah i’m gonna go out and buy property and so this is why i think in starting in the back half of this year i think real estate’s gonna weaken substantially it’s already starting to play out but i i think it’s like tip of the iceberg stuff compared to what’s about to play out real estate could potentially you know this year

For me is all about buying stock stock stocks um maybe 23 is more of a real estate year especially in the back half of 23 based upon what i think is going to happen at pricing and if mortgage rates are still substantially high it’s going to be ugly here okay now you know there’s this house getting built across from me they that’s probably a three or four million

Dollar house there right and every day i see those guys there’s five five to 15 guys out there working on that house right and you know all those guys got jobs because that house is being built right and that’s just one of massive amounts of homes being built here in las vegas right now and out in phoenix arizona where i have another house imagine how many of

These homes are being built right now with five to 15 construction workers on them and it’s great all these folks have jobs i don’t know what this guy’s making maybe he’s making 50k a year 60k a year 70k a year i don’t know okay if we’re going to talk about real estate drying up which it more than likely is in the in the back half this year and especially into

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2023 this guy’s not he doesn’t have a job anymore unfortunately and all his other guys that work with him don’t have jobs anymore and so all of a sudden they’re stuck in a situation where they’re jobless right and that’s a situation that that gets worse and worse and worse and so if this guy also has his mortgage he can’t pay that mortgage anymore and he’s got to

Move in with somebody else right or try to find another job well guess what in a recessionary environment uh it’s freaking hard to get another job right recently we’ve had this incredible jobs market where it’s like you could get fired you could quit you it doesn’t matter they’re so easy to get another job because there’s jobs everywhere right in a recessionary

Environment and somebody that came up in that recessionary environment right when i entered the workforce dude you’re lucky if you can get a job you got to take whatever you can get my first job was cleaning dishes at einstein bagels and then from there my come-up job was working out walgreens making 8.25 an hour i took what i could get right and from there my next

Come-up job was a quick trip making 40k a year and that was at the end of 2010 right and so when you’re in a recessionary environment you take what you can get but sometimes you can’t get anything and the next thing you know you know it it’s like a snowball rolling the wrong way and the dominoes fall in the wrong way and when the economy is expanding and companies

Are hiring and all these things are going great it just keeps pushing push and pushing everything right but all of a sudden you’re in the situation where construction that is the iceberg these guys working on these homes they are the economy okay the guys are all these construction jobs they are the economy they are the economy the ones that are building the new

Retail locations because they’re expanding in the new restaurants and all this work that’s been out there recently these guys are the economy they are what drives this whole show and when that dries up right when real estate dries up when commercial real estate dries up when all these you know new retail centers and things like that when all that dries up those

Jobs go away and they go away quickly okay i’ll give you an example my dad uh is in the pool business right and it’s been the pool business since the 90s and you know it was interesting in the the last recession he always complained about how many uh you know construction guys had gotten into the pool business essentially because they couldn’t get any construction

Work building homes or whatever and so they entered the pool business because they needed to make money somehow so like i’m gonna you know start a little pool business and start cleaning pools and they would charge like you know really they would undercut competition and things like that because they just need to make some money and recently my dad says you know

Those guys aren’t out there anymore they’re all back at their construction jobs they’ve been for the last several years because real estate’s been really good construction been’s great right but all of a sudden if you know home buyers dry up which is gonna happen those construction jobs start going away more and more and more and more and it just kind of leads to

This bad snowball effect right and sometimes those sorts of guys might not even show up on some of the you know unemployment numbers and things like that for a while they’re not even accounted for right or maybe they still get some work so they’re maybe not technically laid off but instead of making you know let’s say a thousand dollars a week or fifteen hundred

Dollars a week now they’re making five hundred dollars a week seven hundred dollars a week that’s when it starts getting ugly and that’s when folks that maybe had homes or rents or whatever right they start moving in with relatives that’s what happens my generation the millennial generation a lot of folks laughed at us because a lot of folks in the millennial

Generation didn’t move out of their parents until 25 30 years old and if not over 30 right and it was kind of like the the folks that could move out and that’s what happens when you’re in a really rough economy so um the biggest question in this whole situation is how bad will it get that’s all it comes down to is how bad will it get but i can tell you it’s not

Sitting pretty and when you add up all these things um we’re gonna we’re gonna have a lot of layoffs over the next six to twelve months and um you know the peak the peak could probably be in 2023 the peak and the fed’s not coming to the savior right now um and so that’s kind of a a rough situation but like i said in regards to stocks specifically you know you have

To buy stocks into that weakness that’s something we have seen throughout time so anyways guys hope you enjoyed this video i gotta deliver the you know what i’m seeing out there if regardless if it’s good bad or anything in between much love hope you appreciate this and oh also if you ever want to say hi to me on instagram my instagram’s linked in the description

Area you know feel free to send me a dm say hello i’ll say hello back and have a great day

Transcribed from video
This is Awful | Massive Layoffs Coming | Economic Collapse By Financial Education

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