Analysts at Natixis believe the economic crisis triggered by the health crisis will be more severe in the United States than in the euro zone or China.
Key quotes
“The weakness of the healthcare system, as many Americans are without health coverage, and due to the low capacity of the healthcare system.”
“Low unemployment benefits, which will lead to a significant decline in Americans’ purchasing power given the inevitable rise in unemployment.”
“The drastic reaction by US companies in reducing employment as soon as activity declines, and which is not cushioned by the short-time working system available in Europe, will lead to a sharp rise in unemployment in the US.”
“Euro-zone companies are financed mainly by banks, US companies mainly in the bond market. It is easier to support bank lending than to keep the bond market open.”
“The rise in unemployment will trigger a banking crisis due to the resulting rise in defaults on household mortgages.”
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