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Banking collapse bigger than 2008; 2,400 (50%) of US banks are now insolvent. ‘Americans should prepare for a credit crunch’…

Not being funny or anything… But never ever seen anything like the whole magnitude of issues arising from every direction against the USD right now. Every direction concerning the USD is under severe issues. Whether its Brics, US treasury, FX, national debt, bond market, stock market, banks, assets, credit, Fdic, fed… You name it.

Americans should prepare for a credit crunch, experts warn

The recent banking crisis in the United States has led to widespread concerns of a looming credit crunch and the negative effects that it will have on American families and businesses as well as the economy as a whole.

U.S. Treasury Secretary Janet Yellen recently told the media that she expects banks to be more cautious in the aftermath of the collapse of Silicon Valley Bank and Signature Bank. She said: “We already saw some tightening of lending standards in the banking system prior to that episode, and there may be some more to come.”

Meanwhile, Federal Reserve Chair Jerome Powell said at a news conference that the turmoil in the banking sector is “likely to result in tighter credit conditions for households and businesses, which would in turn affect economic outcomes.”

The chief economist of Citibank, Nathan Sheets, has also warned that the nation could be headed for a credit crunch as well as a recession in the next few months in the wake of the bank collapses and the Fed’s monetary tightening.

As for when he expects this to happen, Sheets noted: “That’s something that will unfold in [the] coming months and quarters, and could indeed make that recession that we’re expecting somewhat longer than it would be otherwise and somewhat deeper.”

Top economist warns the next recession will be as if “the whole country takes a pay cut”

“The leading indicators are telling me that the recession is actually starting this quarter,” he said in a recent YouTube interview with Blockworks Macro. “If it’s not this quarter I think it’s next quarter. It’s certainly not a 2024 story.”

With rampant inflation, most Americans are struggling with wages that are not keeping up with the rising cost of living. Should a recession materialize, it could result in greater financial hardships. Not only that but artificial intelligence and automation are going to make it tough for people in the future.

h/t Hyper Star

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