The risk of recession in the US economy is inevitable, it is worth waiting for a decrease in GDP in two months
WASHINGTON, March 22 – RIA Novosti. The risk of a recession in the US economy is inevitable, we should expect a sharp decline in economic activity and GDP over the next two months, Lawrence McDonald, former vice president of finance firm Lehman Brothers, told RIA Novosti.
“I think the possibility of a recession now is undeniable,” he said.
Talking about the bankruptcy of California-based Silicon Valley Bank (SVB) in March 2023 and the risk of a new financial crisis in the United States, McDonald was in charge of debt management at Lehman Brothers during the financial crisis in 2008. and convertible securities trading pointed to the expected sharp decline in economic activity and GDP. “In the next month or two, a sharp decline in economic activity, GDP and employment is typical – layoffs will likely increase at a sharp rate,” the agency’s source said.
There is a loss of confidence in the system among investors who have suffered losses due to US and European banks,” he said.
The bankruptcy of the American investment bank Lehman Brothers in 2008 is considered the starting point of the global financial crisis.
On March 10, regulators in the state of California closed Silicon Valley Bank, one of the twenty largest commercial banks in the United States. This was the largest bank failure in the United States since the 2008 financial crisis. All insured deposits were transferred from the SVB to a separate entity – the National Bank of Santa Clara Deposit Insurance. In addition, authorities have closed the major New York Signature Bank due to systemic risks, and it was announced that the crypto-focused bank Silvergate will also be closed.
Source: Ria
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