The current economic downturn is ‘not even close’ to the 2008 crisis

ServiceNow Chief Executive Bill McDermott told CNBC’s Jim Cramer on Monday that he doesn’t expect the current economy to undergo a market crash like the 2008 financial crisis.

“It’s not even close to 2008. In 2008, I was with a company that lost a billion euros in the pipeline in one day. That was a crisis. It’s not a crisis,” McDermott said in an interview with “Mad Money . “

“If anything, it’s a crisis of opportunity. The digital transformation market is $ 11 trillion over the next three years, okay. If you fight inflation, you can keep your employees inspired, wherever they work from.… Connect you to your customers, “he added.

McDermott’s comments came as the Federal Reserve plans to tighten its balance sheet and raise interest rates to control inflation, exacerbating Wall Street concerns that the actions could cause a recession and slow inflation. an economy recovering from the height of the Covid pandemic.

The cloud-based software company CEO also revealed that companies wishing to cope with difficult economic conditions in the future need to invest in digital innovation today. McDermott said not a single company in the top 30 companies in the S&P 500 in 1989 is on the same list today, as measured by the market cap.

“If you don’t change, and you don’t change your businesses, and you don’t hit the accelerator now when the headlines are down, you may not be on any list in 30 years,” he said.

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