Hello fellow rebel capitals hope you're well so we've been talking a lot lately about how we are likely

headed for a recession if not an economic depression

But the question I always hear from viewers is, okay, George, I get it, but what do I do about it? How do I protect myself? Or maybe even better, how do I actually thrive as a result of these economic hard times that are coming our way?

Well I was listening to a podcast today for my good friend Rick Rule and he went over some fantastic strategies. Let's get right into that

interview and check this out. This is from Rick Rule we're going to play about a minute or

two and then I'm going to make some comments and we're going to play another minute I'm going to make some comments but this is just

pure gold guys so get out the pencil and pad and start taking notes.

We're willing to take that risk perhaps not understanding that they were taking a risk.

If you have a circumstance where there's a flight to quality in the debt market and there are higher interest rates. Precisely the set of circumstances

I think we're seeing right now. Many bad things happen. The borrowers who were able to

fund their businesses at low interest rates relative to the

risk may not be able to refinance at interest rates that they could afford.

Certainly the institutions that were able to afford that credit

will be less willing to forward that credit when they need to shore up their own balance sheets too.

Okay, so what he's describing right now is this problem in the banking system, and I think he's talking specifically about commercial real estate, and then he's going to go on to talk about how this is going to present huge opportunities.

And it's this whole dynamic because he really sees the opportunity in these ETSS that are very

liquid, but the underlying asset is very illiquid.

So I don't want to, I don't want to give away the ending here.

So we'll go ahead and save that for the end of this video.

What he's talking about right here is simply the fact that these, you know, these assets

that's the value of the asset is highly determined on the going interest rate or the interest rate on the 10 year,

the risk free rate, let's say. And so that cap rate goes up, the value goes down,

...