Timothy Sumer

You wouldn’t believe the amount of risk U.S. banks are facing right now. Some of the biggest banks in America are warning about unprecedented financial chaos in the final months of 2023. A new note released by Morgan Stanley points to trouble in equity markets as economic growth disappoints and consumer spending hits a wall. Morgan Stanley’s, Michael Wilson revealed a long list of reasons why he thinks the S&P 500 will face a double-digit crash this year.  The strategist notes that stocks’ valuations will be caught by declining consumer spending, resuming student loan payments, rising delinquencies in certain household cohorts, higher gas prices, and weakening data in the housing sector. Bank of America strategist Michael Hartnett shares the same view. He warned earlier this month that the possibility of an economic contraction remains high as the Federal Reserve continues to tighten credit conditions. Meanwhile, weaker-than-expected corporate earnings will deteriorate e