Allianz, one of many world’s largest insurers, has warned that the U.S. financial system is headed towards a crash touchdown. “We anticipate the financial momentum to deteriorate in the course of the second half of the yr on the again of quickly tightening credit score circumstances, exacerbated by the banking disaster,” mentioned the insurance coverage big’s analysts.
Crash Touchdown Forward, Warned Allianz
Allianz’s analysis and evaluation division printed a report final week stating that the U.S. financial system is “headed in direction of a crash touchdown.” Allianz is among the world’s largest insurers with over 122 million non-public and company clients worldwide and greater than 159,000 workers. It’s headquartered in Munich, Germany.
“Damaging confidence results from the near-death expertise within the U.S. banking sector and the unresolved power state of affairs in Europe will form the remainder of the yr,” Allianz’s analysts started. Whereas noting that the U.S. financial system “picked up tempo in early 2023,” they confused that this revival will seemingly be “short-lived.” The analysts continued:
We anticipate the financial momentum to deteriorate in the course of the second half of the yr on the again of quickly tightening credit score circumstances, exacerbated by the banking disaster.
A number of main banks within the U.S. failed just lately, together with Silicon Valley Financial institution and Signature Financial institution. The Federal Reserve and the Treasury took steps to stop a systemic disaster, together with offering liquidity to the banking system, creating a brand new lending facility to supply short-term loans to banks, and insuring all deposits of each banks.
“We mission a sizeable recession within the U.S. (‘laborious touchdown’) on the finish of the yr attributable to more and more entrenched adverse confidence results, with a slowdown in housing, manufacturing, and development as rate of interest hikes additional enhance borrowing prices and dampen funding,” the Allianz analysts additional detailed within the report.
A lot of individuals have equally warned that the U.S. financial system is headed towards a crash touchdown. Outstanding economist David Rosenberg predicted a recession and a crash touchdown in March primarily based on knowledge from the Federal Reserve Financial institution of Philadelphia. Wealthy Dad Poor Dad creator Robert Kiyosaki additionally warned of a crash touchdown as federal bailouts adopted the banking disaster. In the meantime, billionaire Barry Sternlicht anticipates a tough touchdown for the U.S. financial system.
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