{"id":19659,"date":"2023-04-10T02:01:38","date_gmt":"2023-04-10T02:01:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-economy-at-risk-of-crash-landing-allianz-warns-economics-bitcoin-news\/"},"modified":"2023-04-10T02:01:38","modified_gmt":"2023-04-10T02:01:38","slug":"us-economy-at-risk-of-crash-landing-allianz-warns-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-economy-at-risk-of-crash-landing-allianz-warns-economics-bitcoin-news\/","title":{"rendered":"US Economy at Risk of Crash Landing, Allianz Warns \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Allianz, one of the world\u2019s largest insurers, has warned that the U.S. economy is headed toward a crash landing. \u201cWe expect the economic momentum to deteriorate during the second half of the year on the back of rapidly tightening credit conditions, exacerbated by the banking crisis,\u201d said the insurance giant\u2019s analysts.<\/strong><\/p>\n

Crash Landing Ahead, Warned Allianz<\/h2>\n

Allianz\u2019s research and analysis division published a report last week stating that the U.S. economy is \u201cheaded towards a crash landing.\u201d Allianz is one of the world\u2019s largest insurers with over 122 million private and corporate customers worldwide and more than 159,000 employees. It is headquartered in Munich, Germany.<\/p>\n

\u201cNegative confidence effects from the near-death experience in the U.S. banking sector and the unresolved energy situation in Europe will shape the rest of the year,\u201d Allianz\u2019s analysts began. While noting that the U.S. economy \u201cpicked up pace in early 2023,\u201d they stressed that this revival will likely be \u201cshort-lived.\u201d The analysts continued:<\/p>\n

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We expect the economic momentum to deteriorate during the second half of the year on the back of rapidly tightening credit conditions, exacerbated by the banking crisis.<\/p>\n<\/blockquote>\n

Several major banks in the U.S. failed recently, including Silicon Valley Bank<\/a> and Signature Bank<\/a>. The Federal Reserve and the Treasury took steps to prevent a systemic crisis, including providing liquidity to the banking system, creating a new lending facility to provide short-term loans to banks, and insuring all deposits of both banks.<\/p>\n

\u201cWe project a sizeable recession in the U.S. (\u2018hard landing\u2019) at the end of the year due to increasingly entrenched negative confidence effects, with a slowdown in housing, manufacturing, and construction as interest rate hikes further increase borrowing costs and dampen investment,\u201d the Allianz analysts further detailed in the report.<\/p>\n

A number of people have similarly warned that the U.S. economy is headed toward a crash landing. Prominent economist David Rosenberg<\/a> predicted a recession and a crash landing in March based on data from the Federal Reserve Bank of Philadelphia. Rich Dad Poor Dad author Robert Kiyosaki<\/a> also warned of a crash landing as federal bailouts followed the banking crisis. Meanwhile, billionaire Barry Sternlicht<\/a> anticipates a hard landing for the U.S. economy.<\/p>\n

What do you think about the warning by insurance giant Allianz about a crash landing? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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