BofA Warns This Will Be Much Worse Than The Great Recession After Lowering GDP Estimate To -40% (Video)
BofA Warns This Will Be Much Worse Than The Great Recession After Lowering GDP Estimate To -40% Video by Silver Report
Bank of America had some major downgrades to their forecast by slashing its Q2 GDP forecast from -30% to -40%. BofA’s chief economist Michelle Meyer writes that “words cannot describe” the loss in economic output, which is “unlike anything we have seen in modern history.
Back in early April when we introduced our forecasts, we penciled in a stunning 10% cumulative drop in output from the peak with the pain concentrated in 2Q with a 30% qoq saar decline.” according to data released since then, the drop will be more severe, with BofA now looking for a 40% Q/Q saar decline in 2Q, translating to a cumulative loss of 13%. To put this into perspective, in the Great Recession of ’08-09, the economy declined 4%. This recession would clearly be much deeper.
So for many who have been suggesting that we will see a V-shaped recovery at least for this bank they suggest this is wrong. I happen to think their estimate is a little optimistic considering their calculations for unemployment seem to be a smaller number than we already have at current.
The banks also suggested we won’t see a return to normal for years to come despite the numerous claims we will being running right as rain before the end of this year. I think the best option for us to begin solving these issues would be to start getting honest or else we will never end up solving these problems.
The lies are what has brought us to this point and for the most part many retail investors have been convinced they got in on the ground floor and that stocks are cheap yet nothing could be further from the truth and they keep falling in value on a daily basis yet the price gets higher. This is unlike anything I have ever seen and it shows the market is incredibly unstable.