US Economy at Risk of Crash Landing, Allianz Warns

Allianz, 1 of the world’s largest insurers, has warned that the U.S. system is headed toward a clang landing. “We expect the economical momentum to deteriorate during the 2nd fractional of the twelvemonth connected the backmost of rapidly tightening recognition conditions, exacerbated by the banking crisis,” said the security giant’s analysts.

Crash Landing Ahead, Warned Allianz

Allianz’s probe and investigation part published a study past week stating that the U.S. system is “headed towards a clang landing.” Allianz is 1 of the world’s largest insurers with implicit 122 cardinal backstage and firm customers worldwide and much than 159,000 employees. It is headquartered successful Munich, Germany.

“Negative assurance effects from the near-death acquisition successful the U.S. banking assemblage and the unresolved vigor concern successful Europe volition signifier the remainder of the year,” Allianz’s analysts began. While noting that the U.S. system “picked up gait successful aboriginal 2023,” they stressed that this revival volition apt beryllium “short-lived.” The analysts continued:

We expect the economical momentum to deteriorate during the 2nd fractional of the twelvemonth connected the backmost of rapidly tightening recognition conditions, exacerbated by the banking crisis.

Several large banks successful the U.S. failed recently, including Silicon Valley Bank and Signature Bank. The Federal Reserve and the Treasury took steps to forestall a systemic crisis, including providing liquidity to the banking system, creating a caller lending installation to supply short-term loans to banks, and insuring each deposits of some banks.

“We task a sizeable recession successful the U.S. (‘hard landing’) astatine the extremity of the twelvemonth owed to progressively entrenched antagonistic assurance effects, with a slowdown successful housing, manufacturing, and operation arsenic involvement complaint hikes further summation borrowing costs and dampen investment,” the Allianz analysts further elaborate successful the report.

A fig of radical person likewise warned that the U.S. system is headed toward a clang landing. Prominent economist David Rosenberg predicted a recession and a clang landing successful March based connected information from the Federal Reserve Bank of Philadelphia. Rich Dad Poor Dad writer Robert Kiyosaki besides warned of a clang landing arsenic national bailouts followed the banking crisis. Meanwhile, billionaire Barry Sternlicht anticipates a hard landing for the U.S. economy.

What bash you deliberation astir the informing by security elephantine Allianz astir a clang landing? Let america cognize successful the comments conception below.

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