Bezos warned the US economy is likely to slump in a painful recession.
He advises consumers and businesses to delay purchases and stockpile cash.
Jeff Bezos has warned a US recession is looming, and advised consumers and businesses to stockpile cash in case there’s a devastating downturn.
“The economy does not look great right now,” Amazon‘s billionaire founder and executive chairman told CNN on Saturday.
“Things are slowing down, you’re seeing layoffs in many, many sectors of the economy,” he continued. “The probabilities say if we’re not in a recession right now, we’re likely to be in one very soon.”
Bezos recommended American households delay big-ticket purchases such as new TVs, refrigerators, and cars, given the risk that economic conditions worsen. Similarly, he suggested small-business owners consider holding off on investments in new equipment, and build their cash reserves instead.
The e-commerce pioneer declined to estimate how long the recession could last, but he urged people to be ready for an economic disaster.
“Take as much risk off the table as you can,” he said. “Hope for the best, but prepare for the worst.”
It’s not like we aren’t in one already, it’s more like it’s going to be longer, deeper and more painful than most people have been predicting.
As in Depression.
Even if it never reaches that status officially, millions of people in this country are going to get wiped out completely.
It’s already horrible for some.
65% of Americans live Paycheck to Paycheck by official estimates.
That number is low, trust me.
Credit card debt is already Sky High and lot’s of people have already maxxed out their credit limits before this part of the show even gets started.
Personal Debt overall is already at record Highs.
The Fed keeps dumping money into the system and whining about inflation out the other side of their mouth, while knocking interest rates up incrementally, trying to make someone believe they are doing something about the inflation they are causing.
All these interest rate increases are doing is reducing demand, which retailers have been screaming about for three months now.
Christmas is going to be a bloodbath this year for them and sparse for the rest of us.
This trend is going to last at least into Spring and more than likely into Summer.
Those of us who have been watching what’s been going on aren’t the least bit surprised and now we get to watch everyone else get up to speed with economic reality.