CNBC’s Becky Quick reports on Bank of America’s Q1 earnings and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
» Subscribe to CNBC TV:
» Subscribe to CNBC:
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:
#CNBC
#CNBCTV …(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Bank of America CEO: A recession is coming, but not a harsh one
In a recent interview, Brian Moynihan, the CEO of Bank of America, expressed his views on the state of the economy and his prediction of an upcoming recession. While his comments may induce concern among some, he also assured the public that the recession would not be as severe as the one witnessed in 2008. Moynihan’s insights shed light on the current economic landscape and offer a sense of reassurance amidst possible uncertainties.
Moynihan, a seasoned banking executive, has witnessed significant market fluctuations throughout his career. As the head of one of the largest banks in the United States, his opinions carry weight and provide valuable insights into the economic climate. While acknowledging the existence of impending economic challenges, Moynihan emphasizes the resilience and preparedness of the banking sector to weather the upcoming storm.
Moynihan’s claim that a recession is looming is not unfounded. Economists and financial experts have been warning about the possibility of an economic downturn for quite some time. Certain indicators, such as yield curve inversions and slowing GDP growth, have raised concerns about the durability of the current economic expansion. However, Moynihan believes that this impending recession will not mirror the severity of the 2008 financial crisis.
The CEO attributes his confidence to the lessons learned from the previous recession. Banks have since become more risk-averse, adhering to stricter lending policies and maintaining better capital buffers. Regulatory measures implemented post-2008 have undoubtedly made the banking system more resilient, reducing the likelihood of another catastrophic collapse.
Moynihan also points to the fundamental differences in the structure of the economy between now and the 2008 recession. In 2008, the crisis was triggered by the bursting of the housing bubble, which had severe implications for the broader financial system. Today, the economy is more diverse and less dependent on a single sector, mitigating the risk of a similar collapse. Additionally, household debt levels are comparatively lower, contributing to a more stable economic foundation.
While Moynihan acknowledges the inevitability of a recession, he does not underestimate its potential ramifications. He emphasizes the importance of preparedness, both for individuals and businesses, to withstand the impending economic slowdown. Bank of America is taking proactive measures for potential headwinds, such as tightening credit underwriting standards and increasing loss reserves.
The CEO’s optimistic outlook also stems from certain positive signs in the economy. Despite a global slowdown, consumer spending remains resilient, and the labor market continues to show strength. These factors act as a cushion and provide some stability in the face of an economic downturn.
It is essential to recognize that no one can accurately predict the exact depth and duration of a recession. While Moynihan’s expertise is valuable, it is crucial to remain cautious and not completely dismiss the potential risks. The economy is a complex system influenced by a multitude of factors, often unpredictable in their interplay.
In conclusion, Bank of America’s CEO, Brian Moynihan, has offered his insights regarding an upcoming recession but assures that it will not be as harsh as the one experienced in 2008. Despite his optimism, caution should be exercised, and individuals should take necessary steps to secure their financial well-being. The ability of the banking system and the robustness of the economy as a whole will play significant roles in mitigating the potential impact of any forthcoming economic slowdown.
Our mixed-economy is characterized by economic cycles of boom to bust. The booms are credit-fueled and speculation driven. And, speculation is encouraged and rewarded by how governments have chosen to raise revenue. Specifically, the problem is the failure to capture what in economics are called "rents" (i.e., unearned income flows). As a consequence, "rent-seeking" behaviors that enable nonproducers to claim what others produce act as a huge drag on economic output. While there are many sources of rents an enormous amount of rent is capitalized into land prices. Every parcel or tract of land has some potential annual rental value. To the extent this potential rent is untaxed, the net rent income flow is capitalized by market forces into a price of whatever land is held. Since land is not a depreciating asset, land is a very good asset to hold off the market in anticipation of ever-rising prices. This tendency reduces the supply of land brought to the market, driving up prices ever higher until asking prices impose such a stress on producers that profit margins for businesses are erased and potential purchasers of a residential property are unable to accumulate savings for a down payment or have sufficient income to service the necessary mortgage loan debt. The situation for a recessionary downturn or worse arrives. The depth and duration of the crash then depends on whether government makes the right decisions at the right time.
For more insight into the role of land markets in the economy, I recommend a search for the writings of the long-time professor of economics at the University of California, Mason Gaffney.
I'm thankful to have you EXPERTTOP°NET in my corner as I take this next step.
Am ok with the $200,000 credited in my account As an advisor, investor and partner, I'm impressed experttopnet by the thoroughness and professionalism exhibited by all of principals. In particular, their depth of knowledge in diverse disciplines as construction, operations and asset management is highly advantageous. Their focus, integrity and attention to details make us very comfortable doing business with them.
Come on BANK OF AMERICA must to able to make ISLAMIC DIGITAL BANK OF AMERICA" . 🙂
My man being held up at gun point
O3.
About the current bank situation, I'm really concerned. I am worried about a lot more if a bank the size of SVB may fail. I have a friend who manages a fast-growing startup and was severely impacted by the bank run. I have taken more than $840k out of my bank. Since the FDIC only provides coverage up to $250K, an implosion could have negative consequences. presently want to invest in the stock market. Does anyone have any ideas on how I might proceed?
Have maintained my original account. Been with them since 13 years old.
Q1 GDP growth is not bad. Should there be a recession, it would be towards the end of the year.
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities.
How mild is the recession? How soon will the hard one come afterwards? Cutting 4,000 jobs while CEO continues to pocket million$.
All recession are HARSH!
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $290k in months. You have to seek for help in the right places.
He doesn't sound convincing.
easy to say for a guy with billions dollars
"Everything is fine keep holding the bag for us"
– The 5 corporations that own 99.9% of the media
Everything is fine. Don't panic. Keep your money in our banks. Trust us. – Bank CEO
Biggest US Banks Wrote Off $3.4 Billion in Bad Consumer Loans
Bank of America Corp. joined its largest rivals in setting aside more reserves as a growing number of consumers couldn’t keep up with their loan payments, even as executives dialed down fears of a looming crisis.
BTW. THANKS FOR THE BUYING OPPORTUNITIES TODAY. APPRECIATE IT.
He looks terrified
This is a why we have to vote for president Biden in 2024.
Only president Biden can lead us with a burning hot economy roaring through any speculations of recessions. Under Biden's leadership, there will be no recession. And America will beat any doubts, and continue dominating this planet for another 1000 years
So, instead of 300,000 to 500,000 jobs/m, we'll have 200,000/per month ?
•• The Infrastructure Law, the CHIPS and Science Act, and subsidized solar panel and heat pump installation, electric car sales incentives,and efficient appliance purchases, frim the Inflation Reduction Act will continue to to generate many jobs by private industries for years.
It seems that the many experienced people themselves aren't entirely sure of any recession.
can 4.5% unemployment be a recession? 5% is supposed to be the neutral rate
When you look at this, you clearly know that this is NoT your source of information for financials!
These people are always two steps behind the reality of our country… Because they're living in ivory towers.. far away from the reality of Americans..
If I remember right, he also said awhile back that no recession is coming, so take with a grain of salt
Mild recession = prepare for hell
This is so laughable. 90% of forecasters are in denial or lying to the public, hoping their words become a self fulfilling prophecy.
Best banking CEO. He speaks in language that ordinary people can understand.
We already had a recession. 2 consecutive quarters of negative gdp growth in 2022. Nothing can change that fact.
The next recession is just another recession, a separate one.
A Market Crash = A Depression and there is no sign of that ever happening because the slightest whimper of it, then Q.E. comes along to save the day.
Wayward Banks going bust because they spent the money is no big deal..they deserve to crash.
Interest rates of between 5% and 10% is the norm….or was the norm before 2007/8.
Q.E. or printing money and IOUs is a stupid idea as it only increases the DEBT and IOU mountains, which as we know pervades the World today.
Inflation is Public enemy number one and it must be brought under control and not increased further by printing money.
So the best policy is controlling inflation by increasing interest rates if necessary, but not excessively.
The worst of all worlds is exactly what has been going on during the last 14 years….
i.e.Free Money (ZERO int. rates) dished out to the banks for them to spend as they saw fit, along with Q.E…..Printing money and IOUs….Because of this the World is awash with DEBT and paper IOUs in the form of Government Bonds, so much so that the Global Debt and IOUs EXCEEDS the value of ALL Stocks and Shares…(Over $120TRILLIONs worth!!!).
This madness cannot be allowed to continue, otherwise we WILL be heading towards a Global Depression far worce than the last one.
The recession is already here. He means the comming depression wont be a harsh one.
Recession going into a depression