“These are very, very serious things that I think are likely to push the United States and the world – I mean, Europe is already in a recession – and are likely to put the United States in some kind of recession six or nine months from now.” Dimond said.
His comments come at a time when the big US banks are preparing to present their third-quarter results from Friday.
In so far this year, Wall Street’s benchmark S&P 500 index has lost nearly 24%, and all three major US indices are trading in bear market territory.
Dimon said the S&P 500 could drop “another easy 20%” from current levels, and that the next 20% drop will likely “be a lot more painful than the first,” according to CNBC.
At the beginning of this year, demon asked investors to prepare for an economic “hurricane”, after JPMorgan, the largest US investment bank, suspended share buybacks in July after failing to meet quarterly expectations for Wall St.
In June, Goldman Sachs there was predicted a 30% chance that the US economy will enter a recession over the next year, while the Morgan Stanley economists placed the chances of a recession for the next 12 months at around 35%.
The World Bank President David Malpass and the managing director of the International Monetary Fund, Kristalina Georgiev, they also warned on Monday of the growing risk of a global recession and said inflation remained a problem following the Russian invasion of Ukraine.
Source: Ambito
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