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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 12 months on the again of quickly tightening credit score situations, exacerbated by the banking disaster,” stated the insurance coverage large’s analysts.
Crash Touchdown Forward, Warned Allianz
Allianz’s analysis and evaluation division revealed 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.
“Destructive 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 12 months,” Allianz’s analysts started. Whereas noting that the U.S. financial system “picked up tempo in early 2023,” they harassed that this revival will probably be “short-lived.” The analysts continued:
We anticipate the financial momentum to deteriorate in the course of the second half of the 12 months on the again of quickly tightening credit score situations, exacerbated by the banking disaster.
A number of main banks within the U.S. failed lately, together with Silicon Valley Financial institution and Signature Financial institution. The Federal Reserve and the Treasury took steps to forestall a systemic disaster, together with offering liquidity to the banking system, creating a brand new lending facility to offer short-term loans to banks, and insuring all deposits of each banks.
“We challenge a sizeable recession within the U.S. (‘exhausting touchdown’) on the finish of the 12 months attributable to more and more entrenched unfavorable confidence results, with a slowdown in housing, manufacturing, and development as rate of interest hikes additional improve borrowing prices and dampen funding,” the Allianz analysts additional detailed within the report.
Quite a few individuals have equally warned that the U.S. financial system is headed towards a crash touchdown. Distinguished economist David Rosenberg predicted a recession and a crash touchdown in March based mostly on information from the Federal Reserve Financial institution of Philadelphia. Wealthy Dad Poor Dad writer 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.
What do you consider the warning by insurance coverage large Allianz a couple of crash touchdown? Tell us within the feedback part beneath.
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