Could the credit crunch cripple the economy?

4.21.23 - Could the credit crunch cripple the economy?

Gold last traded at $1,981 an ounce. Silver at $25.04 an ounce.

The credit crunch is here and it could cripple the economy. Here's what Larry Summers, Nouriel Roubini and 7 other experts have said on the emerging threat. -Yahoo! Finance

The worst banking turmoil since the 2008 financial crisis appears to have calmed somewhat but it's spawned a new worry for investors: a credit slump that's threatening to cripple the economy.

Banks are turning increasingly risk-averse and less willing to lend as they face massive deposit outflows and the prospect of increased regulatory scrutiny amid the sectoral jitters - and that's crimping the flow of credit into the economy. Recent data showed the steepest lending drop on record over the last two weeks, which suggests a credit crunch has already started, according to Morgan Stanley.

Many big Wall Street names and other experts are now concerned about the impact of the credit squeeze on the US economy. Former Treasury Secretary Larry Summers, Morgan Stanley's Mike Wilson, "Dr. Doom" economist Nouriel Roubini and billionaire investor Bill Gross are among those who have warned about the emerging threat.