The experts have noticed that economic markers have only worsened since Great Depression a decade ago. Many corporate finance leaders are preparing for the next recession to hit by 2020. They say the US economy’s decade-long growth streak is set to collide with worsening debt woes. “The end is near for the near-decade-long burst of global economic growth,” said John Graham, a finance professor at Duke University’s Fuqua School of Business and director of the survey, in a statement.
Economists have been warning for the past several years about the skyrocketing global debt due to central banks. In 2008, the global debt was $117 million and today it has crossed $247 trillion. In the US economy, household debt has inflated dramatically, automobile loans have exceeded and unpaid credit card bills are just as high as the period preceding the Great Depression.
As others are worrying about the next recession, a professor of economics at Illinois Valley Community College David Barnes said that despite the ongoing stock market radical shift in interest rates and volatility, the economy is still in shape and there is no recession coming. He further stated that financial leaders have predicted 10 out of five recessions and still there are employers who are looking for employees and the economy looks strong for next year or two, as published on News Tribune.
On a similar note, Jerry Phlipeau, president and CEO of Flipo Group in La Salle has said that the trade war has affected the manufacture of Chinese-made inventory but manufactured goods are less affected than commodities like soybean.
Moody’s Analytics and a JPMorgan Chase & Co. tracking model predicts that 80 percent chances still stand that the US will be hit by the economic downturn within the next three years, as mentioned on News Week.
The discussion over the next recession started amidst the ongoing trade dispute with China and the economists spotted what is being called as “inverted yield curve,” which denotes closing of a gap between long-term and short-term interest rates.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]