Bilionaire Bezos warns of recession, advises people to ‘hold onto money’

Bilionaire Bezos warns of recession, advises people to 'hold onto money'

Jeff Bezos, president and CEO of Amazon and owner of The Washington Post, speaks at the Economic Club of Washington DC’s “Milestone Celebration Dinner” in Washington, US, September 13, 2018.— Reuters

Billionaire Jeff Bezos has recently warned people about an oncoming economic recession advising businesses and consumers alike not to buy big costly items during the holiday season.

The Amazon founder said that consumers must keep their cash safe and avoid spending on unnecessary items in the coming months. He claimed that the United States was about to face a recession which is why American families must not buy “big-ticket items” like refrigerators, TVs, and new cars.

Speaking to CNNhe said: “Take some risk off the table.”

“Keep some dry powder on hand […] Just a little bit of risk reduction could make the difference for that small business if we do get into even more serious economic problems,” the outlet quoted him as saying. “You’ve got to play the probabilities a little bit.”

He said that people who were looking to purchase “big-screen TV might want to wait” and hold onto their money, asking people to remove risk from the equation.

Bezos said that the economic situation did not “look good” at present and that things were slowing down. “You’re seeing layoffs in many many sectors of the economy,” he told CNN.

In the same interview, Bezos announced a huge donation from his $124 billion fortune to charities fighting climate change. He also donated money to support people and organizations trying to bring people together as social and political divisions grow. The billionaire did not share the exact amount he would give away though.

When asked if he is giving away a major portion of his net worth, Bezos said: “Yeah, I do.” He has committed $10 billion to fight climate change and protect nature through the Bezos Earth Fund, where he is the executive chair.

Country music star and philanthropist Dolly Parton received $100 million through the “Bezos Courage & Civility Award”, an honor recognizing leaders who “pursue solutions with courage and civility,” he said on Twitter on Saturday.

Bezos, who is now the executive president of Amazon after resigning as the CEO last year, added that he did know if the situation the country is in can “technically” be called a recession.

The e-commerce giant itself has laid off thousands of employees, frozen hiring, and made cutbacks. Since it is challenging to predict when times would get better, the billionaire said that “you just have to try and be reasonable about it, take as much risk off the table as you can for yourself. Hope for the best, but prepare for the worst.”

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