Alfonso Peccatiello, Founder of The Macro Compass, explains the root causes of the current banking crisis, and predicts a recession in the U.S. to officially hit in three to four months.
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0:00 – Intro
0:30 – When are we getting a recession?
2:00 – Banking crisis explained
12:00 – Global credit impulse
13:30 – Bank runs
15:33 – Labor market
21:40 – Consumer sentiment index
28:00 – Stock market crash
31:30 – Gold, Bitcoin
35:00 – Asset allocation
36:40 – Global demographic trends
#recession #economy #investing…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Recession in 3 Months: Brace for Mass Layoffs Warns Economist; Banking Crisis Explained in English
As the world grapples with the unprecedented challenges posed by the ongoing COVID-19 pandemic, economists are increasingly warning of an impending global recession and the subsequent ramifications. One economist, in particular, has sent shockwaves through the financial world by predicting that we could be facing a recession within three months. Additionally, concerns have been raised about a potential banking crisis, adding to the already bleak economic outlook.
This economist’s warning comes at a time when many countries are grappling with the devastating impact of the pandemic on their economies. With businesses shutting down, supply chains disrupted, and consumer demand plummeting, the economic fallout has been swift and severe. Governments have implemented strict lockdown measures to halt the spread of the virus, resulting in a virtual standstill of economic activity across various sectors.
The predicted recession, if it were to materialize in the next three months, would undoubtedly exacerbate the current already fragile state of affairs. Job losses are expected to soar as businesses, unable to weather the storm, are forced to lay off employees in large numbers. The economist’s warning serves as a wake-up call for companies and individuals, urging them to prepare for the worst-case scenario.
One of the major concerns overshadowing the impending recession is an imminent banking crisis. As the global economy faces an uphill battle, banks are finding themselves at the center of the storm. The predicted wave of mass layoffs will result in a significant number of households defaulting on their loans, which in turn will weaken financial institutions. Additionally, companies unable to repay their debts due to dwindling revenues will put added strain on the banking sector. The potential collapse of several banks could further compound the economic crisis, leading to a downward spiral of catastrophic proportions.
To fully understand the implications of a banking crisis, it is important to comprehend its underlying causes. Put simply, a banking crisis occurs when a significant portion of banks’ assets (e.g., loans) become non-performing, uncollectible, or have significantly decreased value. This severely undermines the financial stability of banks, hampering their ability to lend and damaging the overall economy.
The pandemic-induced recession greatly influences the banking sector’s vulnerability. With businesses unable to generate revenues, loan repayments have become increasingly difficult, severely impacting the asset quality of banks. Moreover, financial market turmoil and declining investor confidence contribute to the fragility of the banking sector, exacerbating the crisis.
Governments and central banks across the globe have been scrambling to implement measures aimed at averting an economic collapse. Massive stimulus packages, monetary easing, and regulatory interventions have been announced to cushion the impact of the looming recession. However, as the uncertainty and severity of the crisis persist, the effectiveness of these measures remains uncertain.
The economist’s warning should serve as an urgent call to action for governments, financial institutions, and individuals alike. Preparing for the potential mass layoffs and navigating the banking crisis will require a coordinated effort and proactive measures. Governments must continue to provide support to struggling businesses and individuals, ensuring that the impact of job losses is minimized as much as possible. Banks should proactively manage their loan portfolios, offering relief measures to borrowers facing financial distress. Individuals should focus on building emergency funds, reducing discretionary spending, and upskilling to adapt to a rapidly changing job market.
While the economist’s prediction of a global recession in three months may indeed be alarming, it is important to remember that the future remains uncertain. However, by taking proactive steps, being prepared for the worst-case scenario, and implementing effective measures, we can hope to mitigate the anticipated economic downturn and emerge stronger on the other side.
This is going to be one wild summer, and not in the good sense. Don't miss a single daily update on the #economy and #markets, subscribe now! Follow Alfonso's excellent newsletter: TheMacroCompass.com/subscribe
You have a lot of BS guests. It's 3 months since you uploaded this video where is the Recession?
Investing in various sources of income that are independent of the government should be the most essential thing on everyone's mind right now. especially in light of the global economic crisis at the moment. I have $560,000 sitting in savings searching for the best method to enter these markets. This is still an excellent moment to invest in equities, gold, silver, and digital currencies.
Tick tock, the clock is ticking
Global financial markets have been significantly impacted by SVB's demise, prompting investors to sell off bank equities hastily and reevaluate their interest rate expectations. I am a $350,000 investor who is at a crossroads and wondering if it is wise to hold onto securities that are losing value. I want guidance on the best approaches to maximizing my returns in this negative market.
It stuns me enormously the way that I go from carrying on with a typical way of life to making over 63k each month
I've gleaned some useful knowledge throughout recent years that there are a lot of plenty opportunities in the financial markets;all it takes is just to focus on the right thing. Credits to Amanda Elizabeth Keller.
Thanks bud for keepin us financially Educated! Regardless of how bad it gets on the economy, I still make over $22,000 every single week.
Channel is going great David pleased I found you. Wow Alfonso is super sharp and precise and too the point. I listen too a lot of smart people and Alfonso is up there! Thank you guys
I couldnt pick up what he was saying. can someone help he said money is going into "money market funds and ??" It started with T but I couldn't understand it
I really like Alf. So impressive every time. Maybe your best interview yet, great work David.
Lol, another economist with exactly the same take as everyone else. The groupthink right now is hilarious.
According to certain economists, it's possible that the U.S. and certain parts of Europe might experience a recession at some point in 2023. Although a global recession, which is characterized by a decline in annual global per capita income, is relatively uncommon due to the faster growth rates of emerging markets like China, in comparison to developed economies. I have pulled out more than 340k from my bank. After all, the FDIC covers only up to 250,000, and the implosion could have bad effect. Looking to invest into the stock market now. Does anyone know how I could go about it?
Hyperinflation is peeking around the corner and rubbing its hands together like Birdman.
Great questions !
spectacular interview and information
thanks!
Good job
We're already in a recession. All the stats are fudged and manipulated
Logical and objective….NAHHHHHH! Market doesn't care…."recession", "bear market", inflation…. market doesn't care….just BUY!BUY! BUY! 5,000 by June should be easy! Listen to Tom Lee… he's never wrong…BUY! BUY! BUY! The Fed will always prop the market up, for their rich Wall Street friends. All we can do is join the party and try to pick-up as many scraps as we can from THE BIG BOYS!!! GOOD LUCK EVERYONE!!!
David had enough hair for both people in this interview!
The truth about Deutsche Bank is that it IS ALREADY BANKRUPT. The ECB prints Euros and thus keeps Deutsche Bank alive to lie to the people that everything is fine. Withdraw your money!!! Don't trust bankers, politicians and the media. The Fed will continue to raise interest rates. In 1989 interest rates is 9.00%. 1984 – 11%. If you think that 5% is something colossal, it means that you are living in an illusion. Withdraw your deposits from European banks, because Europe always burns first. Schultz said: "Germany will not allow Ukraine to lose the war" This means further sinking of the German economy. Ever since the European countries imposed sanctions on Russia, Europe has become weaker and weaker.
The FED lowers interest rates by printing (counterfeiting) fiat currency to buy bonds.
The FED raises interest rates by selling those bonds, which lowers the bond price that they paid.
When you own the fiat currency printing (counterfeiting) press, you can buy high and sell low.
That's why counterfeiting is illegal, except for the Central Bank that counterfeits the fiat currency because it thinks it's smarter than the Free Market; Dunning-Kruger Effect on steroids.
All the best David… missed you at Kitco …
Republicans are to blame as usual. Deregulated the smaller banks, under Trump.
All part of the plan. They need to kill those smaller pesky banks first. Then we get CBDCs.
Alf seems to have changed his mind on gold. A few months ago he said it would go down with all risk assets.
In short…expect European economic growth in the US if following his banking regulation recommendation. No thanks
Alf is a very smart man!
you clowns say the samw thing for the past 10 years
The white wall and white shirt is not a big hit. Good job on the brown sliding door on his left
As recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
There you are, David!!! Congratulations on the new show!
that means current stock market is delusional
Alfonso and Gareth are my two financial prophets I follow lol
This guy is awesome. I believe he can teach economics to Kindergartners.
Excellent interview – love your questions and the fact that your offer guests time to answer without interruption. Great work.
No one knows when or if we’re going to have a recession. Powell and biden won’t allow it
How should we brace for layoffs? Should we strap ourselves to our couch?
WOW, very informed guest. Great video
The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. I'm at a crossroads deciding if to liquidate my dipping 200k stocck portfolio, what’s the best way to take advantage of this bear market?