Everyone talks about recessions as if they should never happen.

Any economy that is healthy in the long run will have many recessions.

If you never have a recession, you just have a bubble.

In this case, we just have a bubble and a recession.

Fake markets don’t work.

Year-to-Date Performance:

1. $FB: -59%
2. $AAPL: -17%
3. $AMZN: -33%
4. $NFLX: -62%
5. $GOOGL: -32%
6. $TSLA: -31%
7. $MSFT: -29%
8. $DIS: -36%
9. $NVDA: -58%
10. $BABA: -35%
11. $PYPL: -55%

Imagine the damage once housing prices crash next.

The bubble is officially bursting.

This week's Fed meeting sealed the deal, investor confidence is completely gone.

We have the most hawkish Fed in decades raising rates at a historic pace into a recession.

The Fed is also now forcing the housing bubble to burst.

They want a recession and they will get it.

We are beginning to see the signs of the recession hitting the economy.

Consumers have run out of money, basic needs have become unaffordable, and companies are under pressure.

Next, the housing market's decline will accelerate.

Lastly, the credit card debt bubble will burst.

Current situation:

1. Stocks down like inflation is 20%

2. $VIX remains flat like nothing is happening

3. Treasury yields at new highs like $SPX is at 5000

4. Housing market falling like the bubble popped

5. Commodities down like we have deflation

The collapse continues.

Car market update:

1. Wholesale used car prices down 4% in August, biggest decline ever

2. Average auto loan rate now at record 6%

3. Drivers paying a record $700/month for new cars on average

4. Late car payments at highest level since 2019

The car market bubble has popped.

Economic update:

1. Mortgage rates at highest since 2009

2. Credit card debt up over 30% this year

3. Fed is raising rates into a credit bubble

4. Geopolitical tensions and trade war return

5. Commodity prices making basic needs unaffordable

Recession is an understatement.