News

‘Already past the point of no return’: JPMorgan says U.S. headed for recession

by on

More in News:

Following the recent bank collapses in The United States which includes the failure of Silicon Valley Bank.  Several banks including JPMorgan Chase have re-thought their projections for a rejection despite several months of small victories against inflation and a relatively strong economy.

“The Fed is facing a difficult task on Wednesday, but it is likely already past the point of no return,” JPMorgan strategists led by Marko Kolanovic, the bank’s chief global markets strategist, wrote in a note to clients Monday. “A soft landing now looks unlikely, with the airplane in a tailspin (lack of market confidence) and engines about to turn off (bank lending).”

 New York–based Signature Bank failed only two days after Silicon Valley Bank, which required sweeping government measures to restore faith in account holders that their funds are safe.  In spite of this other small-sized and regional banks remain on tenterhooks with First Republic, who are based in San Francisco, at the highest risk.

 Treasury Secretary Janet Yellen also pledged on Tuesday that the federal government are willing to intervene again if issues at other banks “pose the risk of contagion.” 

JP Morgan believes that even if funds are protected in the event of a collapse, the damage could already be done.

“Even if central bankers successfully contain contagion, credit conditions look set to tighten more rapidly because of pressure from both markets and regulators.”

JP Morgan also quoted Vladimir Lenin to describe the current banking chaos.

“‘There are decades where nothing happens; and there are weeks where decades happen.”

ARTICLE: PAUL MURDOCH

MANAGING EDITOR: LUKE MOCHERMAN

PHOTO CREDIT: THE GUARDIAN

The following two tabs change content below.

Paul Murdoch

Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

Paul, 37, is from Scotland in the UK, but currently lives and works in Bangkok. Paul has worked in different industries such as telemarketing, retail, hospitality, farming, insurance, and teaching, where he works now. He teaches at an all-girls High School in Bangkok. “It’s a lot of work, but I love my job.” Paul has an active interest in politics. His reason for writing for FBA is to offer people the facts and allow them to make up their own minds. Whilst he believes opinion columns have their place, it is also important that people can have accurate news with no bias.

Leave a Reply