Bank Crisis to Cause Systemic 'Ripples': Morgan Stanley

The video discusses the economic outlook, focusing on the role of small and medium-sized banks in credit contraction. These banks are significant lenders in commercial real estate, industrial loans, and residential mortgages. The contraction impacts small and medium businesses, as indicated by surveys showing a 40-year low in business expansion sentiment. The video concludes that this credit contraction will have systemic effects on economic growth.

What signals are small businesses indicating regarding their investment and expansion plans?

What systemic effects on economic growth are anticipated from the credit contraction?