Welcome back to the channel everyone today, i want to talk about how the global financial recession is here and also what you can do to protect yourself. So stay tuned and let's make some money, and i want to dive straight in with the key information. So, first, when i say this, global financial recession isn't going to cause a market crash in one specific asset class: it's not just going to impact stocks, it's not just going to impact bonds, it's not just going to impact housing, and it's not just going to impact Crypto, the coming global financial recession will likely impact all major asset classes, including, but not limited to stocks, bonds, crypto and housing as well. We've already seen the s p 500 down 16 for the year and the nasdaq nearly down 30 we've also seen bonds and the yields on those bonds going absolutely crazy.

Over the last few months. At the same time, bitcoin has decreased by over half and we've seen some catastrophic failures in the crypto industry recently, and many are now starting to report that housing prices across the us are starting to fall. Obviously, housing prices in china fell many months ago and it won't be long until housing prices in the uk and in europe and across the rest of the world, begin to fall as well. Rizzo tweaked saying the federal reserve warns that a soft landing is almost impossible.

Due to the severity of inflation, which was and is not transitory and he asks a recession is required to tame inflation, who do they think they're kidding the wall street elite bankers orchestrated this crash, like every crash before former fed officials have warned a recession, may be Necessary to tame inflation, the fed voted unanimously last week to increase the inter-back lending rate by half a basis point for the first time. In two decades it says two former federal reserve officials are warning. The u.s central bank will struggle to tame the hottest inflation in four decades without sending the economy into a recession. He says the sentiment was echoed by clarida non-economics, professor columbia university, who said the fed will need to raise its key interest rate well into the restrictive territory to cool consumer demand, slow economic growth and curb inflation.

The interbank lending rate was raised by half a basis. Point for the first time in two decades last week, inflation numbers have also just been released and they were higher than the expected 8.1 percent at 8.3. Now that does suggest a small decrease from 8.5 down to 8.3, but it could be a small irregularity and we may see inflation shoot up over nine percent in the months to follow. The s p 500 has already fallen by over 16, and the fed has only started to raise these interest rates.

I think the s p 500 is likely to fall much more before the fed is finished, raising those rates now. Obviously, the fed needs to raise these rates to curb inflation, but i personally think the s p, 500 and other markets like housing, crypto and bonds will fall further in the months to come before. The fed has finished, raising these rates and fighting that inflation, and it's not just me that has that same thought. The interactive broker's founder and chairman thomas peterfield said the s p 500 needs to drop by at least another nine percent to be fairly valued and that's his thoughts on the s p 500 falling solely into a fairly valued territory, not even enroaching, into a crashing territory.

Just at a fair value and gold telegraph also tweeted saying breaking news: the federal reserve is warning in their latest market stability report that wild volatility in commodities pricing is raising the risk of contagion that would hit global financial institutions hard and they wonder if jp morgan And other large banks have finished reviewing their true exposure to different commodities around the world. It says the federal reserve warned of deteriorating liquidity circumstances throughout key monetary markets amid rising dangers from the battle in ukraine, financial tightening and excessive inflation. In a semi-annual report printed on monday, and it says in a press release accompanying the discharge of the report fed governor leo brainard mentioned. The battle has sparked large price movements and margin, calls in commodities markets and highlighted a potential channel through which large financial institutions could be exposed to contagion.

Now i think contagion is the real key word here, because it's not just the commodities market is going crazy. That commodities market craziness is impacting on the stock market, but not just on stocks, also on property bonds and in crypto as well. It says, elevated inflation and rising rates in the united states could negatively impact domestic economic activity, such as asset prices, credit quality and financial conditions. More generally, they obviously left the definition of asset prices, very vague because, as i said, it's not just going to impact the stock market.

The contagion will likely spread to other markets like property, crypto and bonds, and the report also referred to u.s housing costs, which it mentioned, could be particularly sensitive to shocks given excessive valuations and now to support the fact. This global recession won't just be impacting property and stocks coinbase has released a new disclosure in their recent. Thank you filing that says in the event of bankruptcy, customers could be treated as our general unsecured creditors. Guys.

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So obviously, when a company goes bankrupt and the company is wound down, the first people or the first form of creditor to receive money, is those with secured loans, ak mortgages or debts that are secured on physical assets or are secured by the company ak. Any form of loans or financing that coinbase has received in the past is likely to be paid off first, if and when coinbase end up bankrupt. You've then got any administrative burdens like the bankruptcy costs and the cleanup aka. The firm winding down the company ends up being paid.

Second, you've then got priority. Unsecured creditors such as wages, the current employees that are due and any taxes to the government or taxes to the state and finally, after that, you've got the general unsecured creditors, aka unpaid bills or the coin based customers. And lastly, you have the equity aka, the shareholders of coinbase are paid out last now. Obviously, it's not comforting that your money currently held in coinbase may not be protected in the event of default by insurance and you may fall as a general, unsecured creditor and never actually receive back the cash that you're currently holding in your coinbase account.

But again, this isn't just restricted to physical us dollars. You're holding your coinbase account. It also relates to crypto assets aka. They could physically take your bitcoin and ethereum that they are holding on your behalf and use it in their bankruptcy proceedings.

Now you may say tom, surely there's no chance that a major crypto company, like coinbase, actually ends up going bankrupt right. But what about those major crypto failures that you spoke about at the start of the video? Well, we can start by looking at luna, which has had a major catastrophic failure over the last few days after being attacked, potentially by citadel luna at one point, traded over 120 dollars per coin and was recently trading around 84 before falling to under a singular dollar. In a matter of only a few days, that is obviously a major catastrophic failure with the coin losing nearly a hundred percent of its value. If you wanted to know, luna is currently down 94.82 on the day alone.

Now, if we look at the current market cap of luna right now, it only has a market cap of 642 million dollars a few days ago. This was 41 billion dollars, but obviously luna has lost the majority of its value. If we compare that to coinbase, coinbase only has a 16.2 billion dollar market cap and therefore is technically much smaller than luna was so. If a 40 billion dollar company at a 40 billion crypto can evaporate in a matter of four or five days, then it wouldn't surprise me if coinbase could also disappear in under a week and again, if we look at that lunar stable coin, that was supposed to Be stable and paid to the us dollar ak with one coin: equaling, one singular dollar: it's now currently trading as low as 30 cents on the dollar.

This was after luna was d-pegged from the dollar the other day, as i said, potentially by citadel on chain, wizard posted a thread calculating how much the attacker actually made from destroying ust and destroying luna. He tweeted saying how to make over 800 million dollars in crypto attacking the once third largest stable coin: george soros style. He said everyone's talking about the ust attack right now, including janet yellen, but no one is talking about how much money the attacker actually made or how brilliant it was, and therefore not only is bitcoin falling by 25. Not only have they destroyed a crypto coin in luna, one of the 10 largest crypto coins, but they've also unraveled, the third largest stable coin in ust.

That's obviously going to send a massive shock through the market and spur on additional regulation which could cause bitcoin, ust and luna, and the entire crypto space to fall further. But, interestingly enough, even though bitcoin fell below 30 000, the third largest stable coin was destroyed and one of the top 10 crypto coins was destroyed as well. The coinbase ceo brian armstrong believes there is no risk of bankruptcy. He said even amid a black swan event that saw bitcoin drop below 30 000.

He does not believe that coinbase will end up going bankrupt and if we look at the coinbase stock itself, coinbase over the last few months has fallen from a high of 368 per share down to 70 yesterday and right now in the pre-market is currently down. Another 24 on top of that trading around 54, so far, coinbase has fallen by over 85 in the last few months, but somehow the ceo still doesn't see a risk of bankruptcy. Now, obviously, i can't really advise you on how to protect yourself in this market, because i'm not offering financial advice and i'm not a financial advisor, but i don't think right. Now is the best time to be buying speculative growth or risky stocks or speculative growth or risky cryptos.

I think now is a good time to put your money in secure locations and not be buying and holding very volatile, cryptocurrencies or very volatile stocks. I think right now is the time to buy stocks with a negative beta that tend to perform in the opposite direction of the market stocks that could potentially be susceptible to a short squeeze like amc and gamestop. As i've spoken about in many videos on my channel as the market crash happens, and these massively over leveraged hedge funds are forced to sell off their long positions and cover their over leveraged shorts, it will cause the amc squeeze so guys be sure to drop a Comment down below and ding that notification bell, because that way you'll be alerted. When i upload a new video cheers:.