Recession is coming: Don’t buy a TV or refrigerator this holiday season, and keep money on hand
Forgoing major purchases like new TVs, refrigerators, or cars in favour of “keeping some dry powder on hand” during the upcoming holiday season is what billionaire entrepreneur and founder of Amazon Jeff Bezos has urged Americans to do because the US economy may soon be in a recession.
The businessman urged his fans to “batten down the hatches” in a tweet last month. When questioned about it in an interview with an American network, he responded that the advice in the tweet was intended for both customers and business owners.
In the same way that large corporations should postpone making acquisitions and investing in new facilities because the US economy is expected to face a recession “very soon,” he urged deferring the purchase of expensive products you’ve had your eye on for a while.
Bezos told CNN to “take some chances. “Always have some dry powder on hand. If our economic problems worsen, even a small amount of risk reduction could have a marked impact on that small organization. It is important to gradually alter the probabilities.
The speaker continued, “Things are slowing down, and you’re seeing layoffs in a sizable number of economic sectors.” Presently, the outlook for the economy is not encouraging. There won’t probably be a recession, either.
The fourth richest man in the world argued that despite the reality that many people are “feeling the pinch now” as a result of the protracted economic downturn, he was confident that the trend would soon reverse, adding that as an optimist, he believes the American Dream “is and will be even more attainable in the future.”
Other well-known analysts and investors have alerted the American people to the impending recession. Inflation reached a 40-year high of 9.1% in June and stayed at 7.7% until a month ago. They have referred to the Federal Reserve’s ongoing efforts to control inflation.
The bulk of Bezos’ $124 billion net worth would be donated to groups that fight social and political upheaval for climate change, he said in the interview.
The US economy is in recession, and Elon Musk, Ken Griffin, and Jeff Bezos are sounding the alarm. Here are 12 dire economic forecasts from distinguished analysts. Jeff Bezos, Elon Musk, and Ken Griffin have now joined a chorus of CEOs, investors, and academics who have previously warned of an approaching US recession.
Carl Icahn, Jamie Dimon, and Charlie Munger are all putting plans in place in case the economy weakens and unemployment rises. These analysts identify several obstacles to growth, including the Federal Reserve hiking interest rates to combat hot inflation, the Russia-Ukraine conflict, and China’s ongoing trade restrictions.
The following list of 12 recent recessionary warnings has been gently edited for length and clarity:
Amazon’s CEO and founder, Jeff Bezos:
The economy doesn’t seem promising right now. The slump is causing layoffs across a wide range of industries. If a recession isn’t happening right now, it’s likely to happen soon. Try to limit the amount of risk you are exposed to. Be optimistic while being prepared for the worst. In this economy, it’s best to batten down the hatches.
Elon Musk, the founder and boss of Twitter, SpaceX, and Tesla:
A substantial downturn would most likely last one or two years. To be honest, the economic prognosis is gloomy, especially for a company like ours that depends so heavily on advertising in a challenging economic climate.
Ken Griffin, CEO of Citadel
We forecast that the unemployment rate will be in the mid-4% range for the Fed to successfully combat inflation in this country. At that time, which will probably be in the middle of the second half of 2023, it’s difficult for me to believe there won’t be a recession.
Charlie Munger, a close friend and vice chairman of Berkshire Hathaway, is a business partner of Warren Buffett.
“I believe that the Fed is scheduled for a brief recession to halt runaway inflation. They have to carry out that duty. They are supposed to be the lone guest to avoid getting drunk after leaving the punch bowl.
The chairman of Icahn Enterprises Icahn, Carl
“There will always be a recession whenever interest rates are higher than they are right now, the yield curve is inverted, and Treasuries are yielding about 5%. And I believe that a recession already exists. For this economy to rebound and for us to arise from the recession, several things need to take place.
Jamie Dimon, CEO of JPMorgan Chase:
The chance of a minor recession exists. Consumers and corporations are both in great shape. As a result of the conflict in Ukraine, the price of oil, and other similar factors, there is also a possibility of something worse.
David Solomon, CEO of Goldman Sachs
When inflation is embedded in an economic situation, such as this one, it is generally very challenging to escape without experiencing a true economic slump. The US will almost certainly go through a recession.
Jeff Gundlach, CEO of DoubleLine Capital:
In the following six to eight months, the recession will likely be 60%, and by 2023, I’d estimate it to be closer to 80% “added the economist.
Leon Cooperman, CEO of Omega Advisors
“A recession will occur in the second half of 2023 as a result of Federal Reserve tightening, quantitative tightening, a strong dollar, and the price of oil. Extremely poor fiscal and monetary policies have stimulated demand, and eventually, a price will be paid.
Co-CIO of Bridgewater Associates Greg Jensen:
“We expect a considerably deeper recession than what the markets expect. There will probably be a devastating global recession in 2023.
“When things start to loosen up in six to seven months, you probably won’t see the stock markets bottom. The economic downturn won’t end after that for another nine months or so, roughly.
Nouriel Roubini, a professor at NYU Stern and a.k.a. Dr Doom.
“History suggests that preventing a harsh landing will be almost difficult. There will be other economic issues in addition to inflation, a recession, and what I like to refer to as the “Great Stagflationary Debt Crisis.” Given this, it is identical to the Global Financial Crisis and especially worse than the 1970s.
Harvard economist Ken Rogoff
“You must pay great attention to the state of the planet. The United States will find it very challenging to argue against that. There is a good chance that we will go through a mild recession, but the likelihood that it could be severe is rather significant, which worries me.
edited and proofread by nikita sharma