A terrifying financial forecast for 2022
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Have you seen the movie? The Big Short, starring Ryan Gosling and Steve Carell, is based on the real-life housing bubble and the 2008 financial collapse, which wiped trillions from global markets and destroyed millions of people’s lives. Christian Bale’s character, on the other hand, steals the show. He plays Michael Barry, the man who predicted the entire collapse and profited millions when everything began to fall apart. He makes outrageous financial predictions on Twitter, only to delete them minutes later. But Barry was right again recently when he predicted the current high inflation and a huge economic collapse that could happen in the next few months.
The big question is whether he is a financial genius or a lunatic. Just a quick note: this will be similar to the “I’m five years old” explanation because we’re trying to keep it as brief as possible by omitting many details and nuances. In addition, unlike the big short, I’m not going to give the “Margaret Robbie in a bathtub” explanation. However, the United States experienced a minor recession following 9/11, so the government lowered interest rates, making it easier for people to borrow money. The 2008 housing bust
He was so certain of the impending collapse that he bet hundreds of millions of dollars against their housing bonds, a financial term known as a short. When the bonds failed and the market crashed, Barry made over $100 million for himself and his investors, and he became a financial legend almost overnight. Now, as the saying goes, even a broken clock is correct twice a day, and Michael Barry’s 2008 predictions could have been a complete fluke.
The thing is, Michael has been making a lot of big predictions about our financial future and how we’re on the verge of a massive financial collapse, and he’s not saying it’ll happen in two years or one year; he’s saying it’ll happen in the second half of 2022. Let’s get back to what’s going on right now. Barry was once again correct about the situation we’re in. Following the global health crisis in 2020, governments all over the world began printing ridiculous amounts of money in order to stimulate the economy and avoid an economic crash in February 2021. Barry began to warn that this would soon lead to massive inflation, but most people thought he was crazy because, despite the fact that money was being printed, prices did not rise significantly.
He also predicted Tesla’s stock price to fall by shorting the company last year, and he also spoke about shorting bitcoin just before its all-time high in 2021, right before its price would fall by 50%, so he was right again, and so the next part of the story may be a little bit worrying for all of us globally. According to Barry, the worst is yet to come. He compares the current state of the economy to watching a plane crash. Barry’s record isn’t flawless. He’s been wrong about some stocks or bets on market segments numerous times. He has won some bets on Tesla stock, but he has also lost some. When he loses a bet, the media is quick to point it out, and they appear to focus on his losses rather than his wins. Here’s the deal: If you’re worried about the future, now is a good time to get your financial house in order; if you’ve never made a budget, now is a good time to start.
Reduce your monthly debt payments or get rid of your credit cards. Begin putting money aside for an emergency fund. If you have a mortgage, try to get a lower interest rate and pay off as many high-interest loans as possible. Who knows what the future will bring? Maybe in a few months I’ll make a podcast about how great everything is and how we’ve recovered from the economic turmoil we’re in, and hopefully that’ll be the podcast I’ll make. Finance is essentially a game and a skill, and you can easily improve your skill level by studying a small percentage of the time every day to get a little bit better.
To begin with, yes, you should have a safety net and a stash of cash to feel more secure in the world. Second, run a tight ship, get rid of anything unnecessary, and probably take money out of high-risk investments and put it into lower-risk investments. Finally, I always look for opportunities in the midst of chaos because money can also be made in these circumstances. My advice is to focus on the financial person you want to become rather than the financial future of the world.
