Very dark scenario for the American economy. All the major banks announce that they are making massive provisions in anticipation of numerous bankruptcies and difficulties for households. By the way, very bad news for Trump and his hopes for re-election.
The health crisis that is spreading in the United States is causing global financial markets to fall. They fear a shutdown of the world's largest economy ... First the big American banks have just announced one after the other, this week, that they were making massive provisions of tens of billions of dollars to make facing the coming crisis. JPMorgan CEO Jamie Dimon explains it very well: "We have to make reservations because we are very likely to experience a severe recession". The boss of Goldman Sachs spoke yesterday of "collapsing the economy". The second clue is petroleum. Despite the historic agreement between producers to reduce production, prices continue to fall as markets anticipate a long recession.
And that's what makes the stock market plunge ...
Yes: 3.7% drop in the CAC40 yesterday, almost 5% plunge in the Milan Stock Exchange. But it is especially on the side of the United States that we are concerned and that we do not see a return to normal before long months. American industrial production suffered its largest drop in 70 years in March. Investors expect the profits of the 500 largest companies listed on Wall Street to decline even more than during the financial crisis of 2008. There is one that these gloomy stock and economic prospects particularly worry, it's Donald Trump. On Wall Street indeed, rare are those who bet on a recovery before the presidential election of November 3…