Current Events > 'A storm is brewing' in the US economy, says economist Diane Swonk

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https://yahoo.com/finance/news/storm-brewing-us-economy-says-234400055.html

The U.S. economy has a bit of a cushion, and we can weather the storm for a bit. But the storm is still brewing and the undercurrents are clearly forming, said Swonk, chief economist at Grant Thornton.

Swonk said while the tariffs implemented so far are not that big, the threat of tariffs undermines confidence.

If we were to have a full-out trade war tomorrow, which I dont think were going to have, then you could see a recession in 2019 and that would be fairly substantial, she said.

If we are to continue to have this uncertainty then you have over time a corrosive effect that builds up in 2019 with less investment, she added.

In fact, Swonk believes Brexit provides a cautionary tale.

While the U.K. has yet to officially break from the European Union, the threat alone over the last two years has produced higher inflation, slower growth and reduced investment and confidence, she said.

When it comes to the stock market, Venu Krishna, deputy head of U.S. equity research at Barclays, expects tariffs to have a broad, negative impact.

In fact, he said small-cap companies will be harmed the most, contrary to the popular belief that they are better protected because they are domestic.

These companies, in fact, have a higher export and import exposure. Their margins are significantly weaker and hence they cannot absorb cost. And lastly, they dont have the pricing power, he told Power Lunch.

trumps shitty america
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more like we're leaving the eye of the hurricane
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everybody with a brain knows that the next recession will be worse than the last one and that its coming soon.

hello soup kitchen lines.
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liberals ready to flock "thats what I've been saying!"

Trump's liberal economic policies
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Awesome posted...

everybody with a brain knows that the next recession will be worse than the last one and that its coming soon.

Why's that?
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Squall28 posted...

Awesome posted...

everybody with a brain knows that the next recession will be worse than the last one and that its coming soon.

Why's that?

'cos of the trade war. It'll be the biggest thing to crumble the economy. As pointed out, the effects may not be as noticeable just yet, unless Trump really goes ahead with that threat of taxing every single Chinese good