Recessions are good.
You wouldn’t know that by listening to the mainstream media. They think recessions are bad.
It’s a good thing the media is not in charge of the human body. If it were, your body would never sleep.
Sleep is good.
Recessions are good.
Sleep gives your body time to repair itself. It gives the body the opportunity to focus on ridding itself of the excess toxins that have built up in the body.
When you are asleep, your body is in a relative state of inactivity. In other words you’re not continuing to build up those toxins.
What’s wrong with that?
Did you sleep last night?
What happens if you only sleep two hours per night?
Just as a body needs to sleep, so does an economy.
A recession gives the economy the time to rid itself of its toxins.
The toxins are the hucksters, scammers, and con-men who flourish in times of expansion.
The toxins are also those unfruitful projects that are undertaken when cash is flush.
When times are good, hucksters thrive.
Ponzi scheme artists like Bernie Madoff did very well when the economy was good.
When the economy goes south and cash is tight, Ponzi schemers don’t have the income in cash from new investors to pay off the old investors.
Thus the scheme fails and is ultimately exposed.
That’s a good thing.
Another good thing that happens in a recession is that because money is tight, companies start cutting back on all the unnecessary unfruitful expenses.
You do it as a person, and companies do it on a company level.
Just as you may get rid of your gym membership, or your HBO membership when times are tight, companies get rid of all the stupid things that they invested in – such as self-driving cars.
Apple got involved in self-driving cars. What did Apple know about the automobile industry? Nothing.
Why did they get involved? Because everybody else was getting involved, because cash was flush, and because everyone else was stupid and hadn’t thought it out.
Perhaps Apple was told that the train was leaving the station, and that they weren’t on it. This is a popular expression on Wall Street. You will hear this one a few times in your career.
Ah, yes, the fear of abandonment; it works every time.
Well, it would’ve been prudent to ask where the train was going to.
When a recession hits, Apple will be forced to jettison this stupid idea.
This is a good thing.
When times are tight, you focus on what is essential.
You tighten up your game.
You invest your resources in your core business.
You stop getting involved in things in which you have no business being involved.
The end result is that once again you become a lean, mean, fighting machine.
When everything gets tightened up, and you improve your game, magically you wake up and are refreshed and ready to fight even stronger than you were before.
And all of this was made possible by sleep or in the case of an economy a recession.
Recessions are not bad things.
Recessions are necessary things.
Recessions are good things.
Never be scared of a recession. It is a necessary part of life.
Sincerely,
Archer Crosley
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