INSANE Charlie Munger Advice for Surviving a 2023 Market Recession

INSANE Charlie Munger Advice for Surviving a 2023 Market Recession Charles Munger surely knows how to put spices on his financial analysis. In this video, we will be discussing the interview which Charles Munger,the billionaire investor and former real estate lawyer, gave to CNBC. In this interview, Charles Munger basically talked about the dangers of market recession in 2023, and how to brave the impending financial disaster. He also talked a bit about crypto currencies and how crypto currencies have fallen from grace as of late. Charles Munger is nothing short of a legend and does not like to stay in the media’s spotlight as much. Despite the prevailing negative outlook on the excessive money printing of the Federal Reserve, Charles Munger does not share the same pessimistic point of view. Central banks or the Federal Reserve in the case of the United States, play a big role in curtailing any negative effects. Charles Munger’s opinion is interesting because the Federal Reserve has recently spent a whopping $4 trillion in recent years, this overprinting has triggered a fresh wave of severe inflation all over the country in the past year or so. Obviously, inflation has its own negative repercussions for the national economy. Charles Munger however does explain why he continues to support the recent overprinting of the Federal Reserve. If the Federal Reserve puts a stop on the excessive spending too quickly, it would bring the economy to a recession. He argues that if the Federal Reserve had not done what they did, then it would have led to a more challenging fiscal situation for the country. We have conveniently forgotten that when the pandemic hit the US economy, about 15% people lost their jobs, the mile long lines of applicants for a measly minimum wage job and people who had to go to food banks because they had no other way of putting food on the table. In these depressing circumstances, people were quickly burning through their savings. Charles Munger saw this excessive printing as a prerequisite for salvaging our economy even if it meant that we would be hit by a recession in the next year. Between these bad options, the Federal Reserve chose the least bad one, and wisely so. The next big thing in this volatile economy was the rise of crypto currency. This was backed up by speculation from influential economists and financial experts that fiat currency was on the verge of its demise, and that the crypto currency is the next best thing. Charles Munger has expressed disappointment over the recent careless remarks of his former colleagues about crypto currencies. He maintains that these individuals were reasonable and reputable but recently have encouraged a trend that people have to be in on every new financial fad. This swelled the new bubble of cryptocurrency, and led to a lot of unfounded speculation. This was completely irresponsible, according to Charles Munger. Charles Munger stresses on the importance of a good reputation in financial life and once financial experts jump ships to promote frivolous volatile trends then it leads to a buildup of public frustration and mistrust over investors. Maintaining a long term healthy relationship in terms of returns from cryptocurrencies is partly just fraud and partly just a delusion. Financial advisors should be doing their due diligence and giving solid advice on that basis. The reason why Charles Munger has such a strong opinion on cryptocurrency is that seasoned market investors will not invest in some coin, which makes a 12 year old a billionaire.