Recent bank stress issues have revealed that financial conditions are “quite tight,” Pimco North America Economist Tiffany Wilding says during an interview with Lisa Abramowicz on “Bloomberg Surveillance.”
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Pimco’s Chief Investment Officer, Marc Wilding, has expressed concerns over the increased level of stress in the banking industry. According to Wilding, this stress could potentially boost the odds of a recession in the near future.
The banking industry is currently facing various challenges which could add more pressure to an already stressed system. One of the major challenges is the low-interest rate environment, which is putting a strain on banks’ profitability. Additionally, the ongoing US-China trade war and Brexit uncertainties could also weigh down on the global economy and cause a recession.
In a recent interview with Bloomberg TV, Wilding stated that, “The level of stress in the banking system is creating more of a recession risk, and we’re seeing that play out in terms of economic data.” He further added that, “Banks are starting to pull back on lending – they’re basically tightening the financial conditions.”
Wilding’s concerns are not unfounded. Recent data suggests that the US and Europe are showing signs of economic weakness. The US manufacturing sector, for example, contracted for the second consecutive month in September. This is an alarming trend as the sector plays a crucial role in the overall health of the economy. Furthermore, Germany, Europe’s largest economy, experienced a contraction in the second quarter of this year.
Wilding believes that the banking system needs to be able to cope with economic shocks, and that banks should be willing to lend more in order to stimulate economic growth. However, with the current level of stress in the banking industry, this may not be the case.
In conclusion, Wilding’s views on the banking industry should not be taken lightly. The low-interest rate environment, global uncertainties, and tightening financial conditions are all potential triggers for a recession. It is crucial for banks to remain vigilant and take appropriate measures to mitigate these risks while continuing to lend and support economic growth.
depression and weimaarification
banks are rallying, indlation is well alive, turism is flowrishing which is leading indicator? the only cooling i see is in crude and it is a matter of time when the inflation is curde will also show. so all wall street experts how so ever hard they may try, are nit getting by inflation
AGAIN AND AGAIN WE ARE SEEING THE LAST MOMENT OF US$ BITCOIN CHINA YUAN (+H.K$) EURO POUND STOCKS BONDS REAL ESTATE SECTOR THAT THERE WILL BE OF COURSE MUCH MUCH MUCH MUCH MORE BANKING SYSTEMS FAILURES HURRICANING THE ECONOMY, WOULD BE IN THIS MONTH AT THE EARLIEST!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
AGAIN AND AGAIN US$ + T – DEBT (= BONDS) ARE NO LONGER SAFE HAVEN ASSETS THAT AGAIN TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH DEBT CANNOT GO FURTHER FROM HERE!!!!!!!!!!!!!!:)
The rates still have to continue to climb in order to get inflation under control. There will be a recession because of this but it is necessary.
AGAIN AND AGAIN THE MINSKY MOMENT HAS FULLY BEGUN EVERYWHERE IN THE ECONOMY ESP IN THE MOST TERRIBLY DEBT DRIVEN ECONOMIES CHINA USA EUROPE THAT THERE WILL BE MORE AND MORE AND MORE AND MORE PENSION FUNDS GOING TO INSOLVENCY AS I'VE SAID MANY TIMES ALREADY!!!!!!!!!!!!!!!!:)
DO THE MATH AS I'VE SAID MANY TIMES ALREADY THAT GOLD PRICE HAS NO OTHER OPTIONS BUT TO HIKE INTO 3K$ – 3.5K$ THIS YEAR AND IT WILL BE ULTIMATELY IN THE RANGE OF 10K$ – 15K$ IN COMING YEARS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
INDEED TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO LATE TO FIX THE FINANCIAL ENGINEERING PROBLEMS FROM TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH DEBT FROM TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO LOW INTEREST RATE BY THE CENTRAL BANKS MEANS ——— > WE ARE STRAIGHTLY HEADING TOWARDS THE BIGGEST EVER ECONOMIC ARMAGEDDON NOW AND IT IS TOOOOOOOOOOOOOOOOOOO LATE TO AVOID IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
AGAIN AND AGIAN DO THE MATH THAT AS I'VE SAID MANY TIMES SINCE THE END OF DEC OF 2021YR THROUGH THE WHOLE YEAR OF 2022YR TILL NOW THAT ——— > THERE IS NO SUCH THING LIKE SOFT LANDING!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
AGAIN AND AGAIN CENTRL BANKS ARE TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO BEHIND THE CURVE!!!!!!!!!!!!!!!!!!:) MEANS THERE WILL BE MORE AND MORE AND MORE AND MORE STAGFLATION HURRICAINING THE ECONOMY!!!!!!!!!!!!!!!!!!!!!!!:)
UBS IS ALSO ON THE WAY OF ITS HUGE BANKRUPTCY BECAUSE DO THE SIMPLE MATH THAT ———— > UBS'S CS BUYING PRICE IS ONLY + 3.2B$ +/- AGAINST 700B$ BAD DEBT OF CS < ————- MAKE ANY SENSE?!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)
AGAIN AND AGAIN USA CHINA EUROPE HAVE TOOOOOOOOOOOOOOOOOOOOOOOOOOO MUCH DEBT TO GO FURTHER FROM HERE THAT AGAIN IT IS TOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO LATE TO FIX THE FINANCIAL ENGINEERING PROBLEMS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)