Allianz, one of the world’s largest insurers, has warned the US economy is headed for a crash. “We expect economic momentum to weaken in the second half of the year on the back of a sharp tightening in credit conditions exacerbated by the banking crisis,” said analysts at a major insurance company.
Allianz warned before crash landing
Allianz’s research and analytics division released a report last week that the US economy was headed for a “crash landing.” Allianz is one of the world’s largest insurance companies, with over 122 million individual and business customers and her over 159,000 employees worldwide. We are headquartered in Munich, Germany.
“Near-death experiences in the US banking sector and the negative impact on confidence from the unresolved energy situation in Europe will shape the rest of the year,” analysts at Allianz said. They stressed that this recovery would likely be “short-lived”, noting that the US economy “picked up the pace in early 2023”. The analyst continued:
Economic momentum is expected to weaken in the second half of the year on the back of a sharp tightening in credit conditions exacerbated by the financial crisis.
Several major US banks have recently failed, including Silicon Valley Bank and Signature Bank. The Federal Reserve and the Treasury will provide liquidity to the banking system, create a new lending facility to provide short-term loans to the banks, and insure all deposits at both banks to end the systemic crisis. We have taken steps to prevent it.
“As rising interest rates further increase borrowing costs and slow investment, a slowdown in housing, manufacturing and construction will have an increasingly entrenched negative impact on confidence, leading to a sizable A recession (a “hard landing”) is predicted. ‘, Allianz analysts elaborated further in the report.
Many similarly warn that the US economy is headed for a dead end. Renowned economist David Rosenberg predicted a recession and recession in March, based on data from the Federal Reserve Bank of Philadelphia. Robert Kiyosaki, author of Rich Dad, Poor Dad, also warned of a crash landing as the federal government stepped in bailouts following the banking crisis, while billionaire Barry Sternlicht warned of a hard time for the US economy. Predicting landing.
What do you think of the insurance giant Allianz’ warning about crash landings? Let us know in the comments section below.
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