We all know what happened in 2008/09. In case you forgot or don’t know, the U.S. stock market crashed more than 50% in a year! It took four years to recover.
The Dow’s gained 400% since The Great Recession’s (2009 low). As this blog’s title explains, the U.S economy/ stock market has been running Hot. Red-Hot! For ten years straight.
The intriguing part of the above image is that in 2006, the Fed raised rates (sound familiar?). The GDP growth rate was 2.9% (4th highest of the 10 years). Then in the following year, a bank crisis occurs (banks are closing at record rates now), the year after that; The Great Recession hit.
During the economic recession/stock market Crash, job numbers declined, unemployment rates increased, properties were foreclosed, and stock prices plummeted.
Whether you’re employed or a student, married or single, young or old, a recession will impact you. If you have a retirement account, drive a vehicle, own a home, or go to school, you’re likely to be impacted even more.
When people get stuck owing money on things they can no longer afford they get burned, bankrupted even. When panic selling takes place in a market, people seek cash ASAP. They want to get their investment out before it’s worth less (or worse yet, worthless).
We know global markets are either in or nearing recession, but the U.S. market seems to be doing just fine (according to some talking heads on CNBC). My thoughts are, they pump anything that suits THEM.
*i.e. Jim Cramer pumping Canopy. I’m sure he holds a fat stack of Canopy Growth Corp (CGC). Whether or not it’s even a good investment. Jim’s got millions of social media followers. Most of whom would say, “how high?” when he says, “jump!”
I like some talking heads more than others but ultimately, I’m not buying on any of their recommendations. Can’t trust a one of ’em. The only way to win in the market is to be in something before it starts getting hyped. That’s where “sell the ” comes from.
It’s apparent to me, that a global recession is underway. People could soon be looking to get their cash out of equity markets. “What will they do with the cash?” is the question. They won’t be entrusting it to big banks.
If believe if this situation were to occur, the Cashless monetary system would boom.
“Lower-income communities often become “ deserts,” areas where supermarket chains decide they can’t or won’t do business — leaving residents without reliable sources for good groceries.
That situation has an equally unhealthy financial parallel: A town or neighborhood can become a “banking desert,” with no branches where borrowers can turn for business loans or mortgages.” —
A cash shortage and booming, Cashless infrastructure. Sure, why not? Sounds feasible to me.
Today, we have the opportunity to park our “cash” in . No big banks touching those funds! No bank account needed! Transact cheaply, internationally, instantly, and all without the influence of big banks and government. Decentralization!
Decentralization describes the design of an open public network that isn’t managed by a central party (Crypto). Instead, peer-to-peer interaction drives the network, as no third party is needed!
“Decentralized currency’s value is represented by the currency’s “coin” — an encrypted piece of computer code that is difficult to reproduce, but easy to verify. This “coin” has two “keys”: a public key that anchors it to its hosting or publicly distributed , and a private key that infers ownership and is held in the “coin’s” owner .” —
I’ve tried my best to explain my thought process (expecting stock market crash during recession, and mass of Cashless systems. After that, an easy transition to Crypto. I give it 5 years.
Though it’s obvious Cashless payments are becoming popular, I still don’t notice many people using their phone or watch to transact.
It’s becoming more available. Mass will take a few more years I think. The day everyone’s using their phone as a is the day that Crypto nuts should rejoice.
The transition from “Cashless fiat” or “digital currencies” to would be likely. It’s just a matter of downloading a different app to gain the benefits of Crypto.
Customers can choose to use Apple Pay or CashApp, or both. They pretty much do the same thing yet one of them offers (CashApp)
Imagine five years from now….. Will CashApp be the only provider of Crypto services? I don’t think so. I think the industry will be much bigger. By that point, many different / start-ups will be nearing ten years of existence.
Again, the fact is- cash transactions are diminishing. Cashless payments and Crypto products/ services are in their infancy. All it would take to jump start the alternative monetary system is a good ‘ole recession.
I’m here watching WTI and the Dow like a hawk (silently cheering for a stock market crash and Crypto boom). Sorry..?!.
I want to get ahead. Gotta have one go up and the other go down, then flip. Double dip!
Whatever your stance on Cashless payments, monetary policy, global recession, or Crypto; I think we can all agree that we’re in the middle of some crazy techie digital madness.
I just don’t expect to see cash or cards in the future. Much like the checkbook went bye bye. Though there’s always that one in checkout who holds the line up. (Makes me instantly angry, Get with the times man!) Sorry, or woman. Or is it they or them? You get my point. Madness!
#moneygoals LOL. Gettin’ me a mini giraffe.
Decentralization to the rescue! Go Crypto Bulls!
Published at Sat, 09 Mar 2019 06:06:46 +0000