© Reuters.
Investing.com – Galaxy Digital CEO Mike Novogratz warns that the problems plaguing banks right now run deep and wide. Novogratz says there will be a global credit crunch, as some leading indicators suggest.
“The commodity market and the market are telling us that we are heading into a recession. We are going to see a credit crunch in the United States and around the world.”
According to the CEO of Galaxy Digital, the credit crunch will be caused by reduced lending activity by banks, which will have to rebuild their capital after a drop in deposits caused by depositors’ fears about the safety of their assets.
“You now have a market that is going to have a credit crunch. How are the banks rebuilding their capital? They are lending less. So we are going to see a credit crunch in the United States, which is starting to have a dramatic impact on market prices.
While predicting that interest rates are likely to fall in the near term after a series of hikes, Novogratz says the creation of (BTC) was inspired by loose monetary policies such as those about to take place. in place.
“Fixed income, commodities will tell you we’re heading into a recession. Federal Reserve Chairman Powell should take a break and we’ll cut rates sooner than we think.”