Recession Begins GDP -4.8% JP Morgan Warns Of -40% Q2 Downgrades Q3 & Q4, Pending Home Sales -20.8% (Video)
Recession Begins GDP -4.8% JP Morgan Warns Of -40% Q2 Downgrades Q3 & Q4, Pending Home Sales -20.8% Video by Silver Report
It’s clear the US is in a recession with the lowest GDP since 2008 JP Morgan suggests we will see Q2 GDP drop -40% but the news is previously they predicting a V-shaped recovery in Q3 and Q4 however they have downgraded both into negative territory and predict the full-year GDP will come in -7% compared to last year. JP Morgan said the day sets are ugly and about to get much worse, and if you find any good news in their data don’t believe it. Housing is beginning to drop much faster than previously anticipated as pending home sales fell 20.8% MoM in a shocking miss of expectations. The real trouble is pending home sales is a leading indicator so the expectation is we are going to see some rough times ahead for the US housing market. What many have not figured into the equation is the banks beginning to cut credit for the lower qualified borrowers. Contract signings plunged in all 4 major regions. It’s possible we begin to see a rush out of some of the hottest housing markets soon.