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"15 Interesting Facts Of The Screwed
Up State Of The U.S. Economy"
by Epic Economist
"The current state of the U.S. economy doesn't look good at all. In fact, legendary investor Michael Novogratz is explicitly warning that “the economy is starting to fall apart”: “We are going into recession really fast, and you can see that in lots of ways,” he said. “Housing is starting to roll over. Inventories have exploded. There are layoffs in multiple industries, and the Fed will continue to hike interest rates until inflation rolls over.”
"Businesses are nervous, and sentiment is at risk of breaking -- even if nothing goes wrong," added Mark Zandi, the chief economist at Moody’s Analytics, "And plenty could go wrong. A severe downturn could materialize swiftly if businesses lose faith, and there is a good chance they will. The economy is throttling back. Way back," he alerts. Several indicators are pointing to more trouble ahead. What most people still don't realize is that we're facing the combined threat of a recession, tumbling stocks, crashing home prices, mass layoffs, and stubborn inflation all at once. And the end game is going to be catastrophic.
Even the four biggest American banks are now getting ready for shrinking profits, Reuters reported. “U.S. banking giants are forecast to report lower fourth-quarter profits this week as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking,” the outlet highlighted. JPMorgan, Bank of America, Citigroup, and Wells Fargo, along with Morgan Stanley and Goldman Sachs, are the six largest lenders expected to amass a combined $5.7 billion in reserves to prepare for soured loans. That is more than double the $2.37 billion set aside a year earlier. "With most U.S. economists forecasting either a significant recession this year, banks will likely incorporate a more severe economic outlook," said Morgan Stanley analysts led by Betsy Graseck in a note. The six banks are also expected to report an average 17% drop in net profit in the fourth quarter from a year earlier, according to preliminary analysts' estimates from Refintiv. When even the largest banking institutions in the country are facing financial losses, then we know something really wrong is happening in our economy.
The crisis we're about to face will be like no other. Many experts believe that the recession that is staring us in the face will be even worse than what we went through more than a decade ago. "This one is going to be even bigger because the economy has a lot 'more debt now than it did in 2008," explains economist Peter Schiff. "And Americans are less able to pay it when interest rates rise because the balances are much greater. So, we’re in much worse shape as a result of all the bailouts and all the stimulus that papered over the last crisis. Now the one we’re dealing with is going to be much worse because we kicked the can down the road instead of solving the problem when we had a chance,” he stresses.
It is crystal clear now that the ripple effect of decades of reckless monetary decisions made by our leaders is now catching up with us, and the next chapters of this collapse will be even darker than the ones before. Our entire economy is crumbling down and we're all at risk of going down with it. In today's video, we compiled several stats that expose the dire state of the U.S. economy, as well as forecasts, projections, and warnings from some of the brightest minds in the economic and financial world."
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