Everything you need to know about economics in two sentences:
1. When money is cheap, people go berserk and the price of everything goes to the moon: real estate, stocks, luxury items, etc.
2. When money becomes expensive, the whole house of cards collapses.
Wash rinse and repeat.
That’s why I got out of the dotcom madness in the late 90s and set out an early warning (in 2005) about the inevitable real estate price collapse.
So where are we now?
Well, the very same people who waltzed you into the CoVid catastrophe are telling you how great things are. “The consumer is in great shape!”
Here’s the real deal:
If you accept my theory that the price of money (interest rates and loan availability) sets the tone for the economy, here’s what you need to know.
I got this from my favorite market advisor (System Club members know his name.)
“The cost of capital has gone vertical.
The Fed looks backward and is only just reading the January numbers and they’re ignoring the capital crunch catastrophe that’s unfolding right now.
They’re misreading January’s warm weather consumer bounce, the cost-of-living increase just given to 66 million US social security recipients on January 1, and the improvement over last year’s abysmal numbers and thinking it’s a sign of “health.”
It’s not. Things are about to get very rocky.”
Here’s the great thing about our business:
When the market is slow, media gets cheap and competition gets easier.
Are you ready?
I’ve got a new favorite copywriting and direct response business book.
It’s written by a guy with over 50 years of high-level experience who has trained many, many heavy hitters.
He has a low profile in the US, but he’s a rock star in Europe and the rest of the world.
The book is only available on Kindle.
Or you can get the real thing in London this summer which will include a very rare live appearance by yours truly.
This is literally the LAST DAY to get the deal on tickets.
– Ken
P.S. For over 25 years I’ve been sharing the simple but powerful things that matter in business – and life – with my clients.
If you’d like direction for your business that will work today, tomorrow, and twenty years from now, make sure you have your own copy of The System Club Letters book.
Posted: February 28, 2023
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