This isn’t a “May 15th comes around and everything goes back to normal” event here in Michigan. We’re all seeing so many different things going on right now in our economy and even our own local communities. There is so much uncertainty and LARGE fluctuations in the many markets (bonds, equities, precious metals, oil, etc.) around the world daily.

The unintended consequences of policies made today will be felt for years to come. In this video I talk about some of those unintended consequences, how to spot them and how to protect yourself.

Economic Hurt

Unemployment Claims

  • 26+ Million Unemployment Claims so far (Released 4/23/20)
  • Erased all job growth (22 million added) since 2008
  • Years of poor economic activity and hardship
  • Goldman Sachs analysis predicts 4x’s as bad of a recession as 2008

$310 Billion Paycheck Protection Plan (Round 2)

  • Fraud & Abuse
  • Poor Government Planning
  • Wells Fargo (Stacking applications in their favor?)

Oil Futures

  • -$40 per barrel futures
  • Oil Companies highly leveraged with DEBT
  • Too much oil with nowhere to store it
  • Gas isn’t being used

Unintended Consequences:

  • Unemployment Through the Roof
  • People make more money unemployed than working! Why go back to work??
  • Fear = People won’t spend money
  • Confidence in the economy is in the Dumps
  • Bankruptcies appearing left and right
  • Real Estate prices to tank

Two Possible Future Scenarios

Stop the Bailouts = Politically is bad (probably why they won’t)

Destroy the Dollar = Inflation and loss of purchasing value.

What to do:

  • Cut Back Your Expenses
  • Reserve Cash (for financial security and opportunistic funds)
  • Invest in Your Mind
  • Focus on Relationships & Personal networks

Sources

About the author

Justin Bajema, CPM® is the Founder & President of Access Investment Group, LLC and Access Property Management Group, LLC. He holds the coveted CPM® designation from the Institute of Real Estate Management (IREM).His love for everything Real Estate and business began with one book sent to him while he was returning back from the war in Iraq in 2003, "Rich Dad Poor Dad" by Robert Kiyosaki.Justin is a proud U.S. Marine combat veteran who served 2 tours in Iraq as an infantryman. He received the Purple Heart from Commander in Chief President George Bush for his wounds received in action while fighting in Iraq.He has successfully put together numerous real estate investment holdings from single-family homes to multi-million dollar apartment community deals.

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