Timely, comprehensive, professional and accurate information and data to understand the latest information about blockchain, cryptocurrency and Bitcoin

FameEX Hot Topics | Allianz Warns US Economy in Danger of a Crash Landing

2023-04-10 11:55:20

Allianz, one of the world's largest insurers with over 122 million customers and 159,000 employees, has published a report warning that the US economy is "headed towards a crash landing." The analysts noted that the US economy "picked up pace in early 2023," but warned that the revival would be short-lived. Negative confidence effects from the near-death experience in the US banking sector and the unresolved energy situation in Europe are likely to shape the rest of the year, Allianz's report said.

The report expects the economic momentum to deteriorate during the second half of the year, with a slowdown in housing, manufacturing, and construction due to interest rate hikes further increasing borrowing costs and dampening investment. The analysts predicted a sizable recession in the US, a "hard landing," at the end of the year due to increasingly entrenched negative confidence effects, exacerbated by the banking crisis. Several major US banks, including Silicon Valley Bank and Signature Bank, have failed recently, leading the Federal Reserve and the Treasury to take steps to prevent a systemic crisis. These steps include providing liquidity to the banking system, creating a new lending facility to provide short-term loans to banks, and insuring all deposits of both banks.

Allianz is not alone in its warning of an impending economic crash in the US. Prominent economist David Rosenberg predicted a recession and a crash landing in March based on data from the Federal Reserve Bank of Philadelphia. Rich Dad Poor Dad author Robert Kiyosaki also warned of a crash landing as federal bailouts followed the banking crisis. Billionaire Barry Sternlicht anticipates a hard landing for the US economy.

In conclusion, with Allianz's warning of an impending crash landing for the US economy, it is clear that there are concerns about the health of the economy. While there are some signs of recovery, such as an early 2023 pickup in the economy, negative confidence effects from the banking crisis and the unresolved energy situation in Europe are likely to impact the US economy for the rest of the year. This is a situation that requires close monitoring, and action must be taken to prevent a systemic crisis.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

Other articles
Copyright © 2022-2023 FAMEEX.COM All Rights Reserved
FameEX APPMobile trading, anytime, anywhere