World renown economist and co-founder of Wiserfunding and Z-Score, Edward Altman said the US is facing a situation far more dangerous than the 2008-2009 economic depression. The depression will be deeper and wider in its effect than 2008-09 says, Altman.
The extent of this crisis and how long it will last is very much related to the virus and its continued devastation to the global economy. Altman projects with key indicators that in terms of bankruptcies, defaults, credit issues, the year 2020 will be a record-breaking one.”Now, my perspective is mainly the United States where we have the most data but I am quite familiar with the situation in India as well.” said Altman sharing his views on the battered Indian economy.
60 large Corporate giants have filed for bankruptcy in the US since March. Retail and Energy sector will take the first hit of financial crisis followed by nearly all businesses- travel and tourism, leisure, hospitality, real estate, and logistics.
Edward Altman especially took note of US and Indian airliners,” We are going to see many airline bankruptcies”, said Altman.” I do not quite know the makeup of the Indian airline industry but my guess is they are going to suffer quite a bit as well as the rest of the world.” he added.
Edward Altman who is also a Professor at NYU stern said, the present scenario’s actual impact cannot be gauged as there are a lot of variables in it.”I am not sure I am the right one to ask that question, you look at my stock portfolio and you are going to scratch your head, you say do you really think you know much about the markets. I have never seen such a disconnect before; companies’ reported earnings are horrendous and they are going to get worse rather than better.” said Altman.