Economic experts warn that their predicted US economic downturn is worse than what was experienced during the Great Depression. Murray Gunn with Elliott Wave International, a financial forecasting firm said in the New York Post that they think that the major economies are on the cusp of inflation into the worst recession that the United States has seen in 10 years.
According to Peter Schiff, an economic commentator, the downfall won't be called a recession and it is going to be worse than the Great Depression. He commented that the US economy is in so much worse shape that it was 10 years ago.
The economists stated that the main cause of the downfall appears to be the high debt load carried by borrowers and the uncertainty of their abilities to pay it back. The recent report of the CNN showed alarm about the nation's debt load. The report, however, suggested that more trouble could arise from the $6.3 trillion in corporate debt greater than the consumer debt.
The CNN also stressed that the continuing trade war between the United States and China also contribute to the corporate downturn. According to Schiff on his pot on the Post, he is forecasting a major economic downturn as early as the term-end of the President's first term.
According to the CNN report, both the US economy and corporate assets will slow down and it will leave companies with less firepower to pay their debt. The report added that debt-laden companies are expected to be vulnerable to rising borrowing costs by the Federal Reserve interest rate hikes. The added that is companies are stuck in a credit crunch, they are expected to pull back on hiring and on their investment.
President, on the other hand, was very proud of the strength of the US economy. He told the crowd in Missouri on Friday that the stock market is up 55 percent. According to him, 401 (k)s are up 50, 60, 70 percent in some cases.
Trump also tweeted that new economic records are being set on a daily basis and according to him it is not by accident. He said that the US economy is setting records on every front and it is probably the best that the country has ever done. He boasted that it is a tremendous value created since the election. He added that the world is respecting the United States again and the US companies are moving back to the USA.
