So here I am at 4:12am in the morning going through the news. Right as I am about to log, I see two articles right next to each other.

Many believe US already in a recession

San Francisco Fed Chief sees trouble, but no recession

I hate to be the bearer of bad news to the Fed Chief, but we are in fact in a recession. 

My stand point for the recession reasoning is jaded to say the least. Less then two years ago I owned 11 houses, and I was actively selling houses and purchasing new investments. I consider myself to be a seasoned professional in regards to the market. I can say without a doubt, that a sharp decline on the upwards of 30% tp 50% in the housing market, is a recession.

Now, I know how the housing market bubble started, and some would argue with me to say that the housing market dropping in value doesn’t count as a recession. To them this is just a correction in the market, and to this I would say, that is true. But many people don’t realize that the housing market is the backbone of the economy. Even though I know it’s an adjustment in the market, several people just don’t understand why it would be adjusting, because to them everything was working great. This decline in the housing market has hurt to many people to fast, and this has caused people to close up shop and slow down spending in all market areas. This to me is a text book recession, which is the loss of consumer confidence.

I can say with some certainty that we are not in a depression, and until I start seeing a mass movement of people not trusting banks and taking out all their money, I don’t see this becoming an issue either. Although recently I did see a rather stupid article in USA news today that was telling people what to do with their money in this type of market. The author was hinting at, not to trust the banks and the government with your money. But it was so poorly written that I doubt it was more than a passing thought for most readers.

My opinions on what to do with money is not to follow the examples of what the government has done, such as borrowing every last penny we can from China. I also recommend to normal people to not get into a war, just because they are so damn expensive to keep up. Other than those two things, I say be very careful of your money and invest in debt education. One book that has really helped with my debt education is Creating Found Money from nodebtclub.com.