The Economic Collapse and Opportunities Ahead

We had the subprime mortgage collapse, and the country's overall economy was at a low point. People refer to this time period as the Great Recession of 2008. It was the greatest recession since the Great Depression back in the 1930s.

Recessions are never desired, but keep in mind that there are always individuals who make it through these times and make the most of them (E.g., Rockefeller, Hilton, etc.).

Economic contractions happen on a regular basis. Not every recession is as deep as the 2008 Financial Crisis, but contractions occur regularly.

If you’ve been alert to what’s happening today, it doesn’t take a brilliant economist to decipher the reality that we have enjoyed a historic growth market these last 10-12 years. What goes up must come down… eventually. When? How soon? Has it already begun? 

We've been discussing a recession at Freedom Founders for a good number of years, expecting and preparing to withstand and undergo a downturn/correction long before now.

The Writing is on the Wall

We are currently in the starting phase of a market correction. If not for the election in November, I think we'd already be in the middle of one. But we know how the government, the Federal Reserve, and the Treasury manipulate the monetary system.

The government will keep kicking negative effects down the road until they can't anymore. If they can push any signs of a correction or recession to the election, they will.

They’ve been doing so by floating the economy on debt. All the spending and credit expansion that we’ve had has prolonged the inevitable. After the election, no matter who wins, there will be a massive correction.

Why am I telling you this? Because the same behavior and response occur every time there's a major correction. In 2008, no one saw it coming. Even the Federal Reserve Chairman at the time, Bernanke, said, “Housing is all fine. It's all good.” Does this sound familiar?

What we read in the journals, business news, and mainstream media is orchestrated to try to calm the storm.

We have an irresponsible government, and the only reason we’ve been able to float so much debt is that we still hold the dollar as the world's reserve currency.

But the dollar is at risk. We are in one of the most dangerous times in our country's history because economic collapse means a lack of national security. The consequences will unwind from there.

Financial Security Amidst a Recession

How do you position yourself for financial security? You have to focus on the things you can control. I often talk about having your house in order to weather economic storms and take advantage of opportunities.

How to Get Your House in Order:

1. Make sure your debt is fixed long-term, or pay it off as soon as possible.
2. Reduce your spending. Get your overhead in your business down to as low a marginal level as you can (Here’s a recent podcast on one aspect that may help you).
3. Efficiency is key in your business.
4. Be wary of expansion. If you have the opportunity to expand, go slowly and without variable-rate debt.
5. Do not forget about your investments! Most forget this aspect and lose out on the vast opportunities.

Most people are not ready for the opportunity that comes every time there is a major correction in the economy. I first took advantage of these opportunities in 2008. Until then, I had been working hard in my business/practice.

Yes, I had built up a real estate portfolio that was carrying the weight. I exited my practice back in 2006 because of my daughter's health crisis. So I was ready when the correction happened in 2008, and assets went on sale.

The financial markets took a 50% hit. If you're a stock market player, you certainly could buy down deep and ride it back up, which is what many people did. I'm not a financial market player, so I didn't play that game.

I'm a tangible asset investor (real estate or businesses). Real estate is what I enjoy most because I became good at it. I have a network of people that I can rely on to invest securely and successfully in varying markets throughout the U.S.

When everything collapsed in 2008, and no one had liquidity, credit, or the ability to finance things, people sold their assets to try to get liquidity back. That is the time to buy. 

Now it's here on our front doorstep again. But you have to be ready to take advantage of these opportunities.

Are You Ready for the Coming Opportunities?

Where's your capital base today? Do you have money set aside? Have you moved your money out of the market and into higher ground, like money markets or treasuries?

Do you have money in retirement accounts? Have you self-directed those accounts in order to invest in alternatives like real estate?

Once the correction hits and assets start going on sale, it will be too late to make the appropriate moves. This is your opportunity to get ready and make the most of what’s coming.

You need access points. You need a network. You need enough education to understand where to find the opportunities.

It's not a time to be dismal or get depressed. It's a time to prepare, get educated, build your network. We can't control what the markets do. We can't control what the government does. What we can control is how prepared we are to weather the economic storm and buy assets on the other side.

I more than doubled my net worth after the 2008 Financial Crisis. You can do the same, but you have to know what to do.