(OPINION) There is a growing consensus that 2023 is going to be a miserable year for the U.S. economy and for the global economy as a whole. In fact, in all the years that I have been writing, I have never seen so many big names on Wall Street be so incredibly pessimistic about the coming year.
Of course, much of that pessimism is due to the fact that 2022 went so poorly. The cryptocurrency industry imploded, trillions of dollars in stock market wealth evaporated, inflation became a major problem all over the industrialized world, and a new housing crash suddenly erupted. Considering all of the pain that we have experienced over the past 12 months, it is only natural for the experts to have a negative view of 2023. The following are 11 ominous warnings that they have issued for the year ahead…
#1 The IMF: “We expect one-third of the world economy to be in recession. Even countries that are not in recession, it would feel like recession for hundreds of millions of people”
#2 Bloomberg: “Economists say there is a 7-in-10 likelihood that the US economy will sink into a recession next year, slashing demand forecasts and trimming inflation projections in the wake of massive interest-rate hikes by the Federal Reserve.”
#3 The World Bank: “As central banks across the world simultaneously hike interest rates in response to inflation, the world may be edging toward a global recession in 2023 and a string of financial crises in emerging market and developing economies that would do them lasting harm, according to a comprehensive new study by the World Bank.”
#4 Bank of America CEO Brian Moynihan: “We’re going to have a shallow recession”
#5 Mohamed El-Erian: “Many ‘high-conviction’ U.S. recession calls are immediately coupled with the assertion that it’ll be ‘short and shallow.’ Reminds me of the behavioral trap ‘transitory inflation’ proponents fell into last year”
#6 Nouriel Roubini: “No, this is not going to be a short and shallow recession, it’s going to be deep and protracted”
#7 Larry Summers: “My sense is that it’s much harder than many people think to achieve a soft landing”
#8 Goldman Sachs CEO David Solomon: “Economic growth is slowing,” Goldman Sachs CEO David Solomon said at the same conference. “When I talk to our clients, they sound extremely cautious.”
#9 Charles Schwab & Co.’s Liz Ann Sonders: “We have to take our medicine still, meaning a weaker economy and a weaker labor market. The question is, is it better to take our medicine sooner or later?”
#10 BlackRock: “Central bankers won’t ride to the rescue when growth slows in this new regime, contrary to what investors have come to expect. They are deliberately causing recessions by overtightening policy to try to rein in inflation” (READ MORE)
