Category: Coronavirus Depression
The analysis published under this category are as follows.
Monday, April 06, 2020
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings / Economics / Coronavirus Depression
By: MoneyMetals
Two weeks ago, during a March 17 address to the nation in response to the COVID-19 outbreak, President Donald Trump asked that Americans work from home, postpone unnecessary travel, and limit social gatherings to no more than 10 people.
And last week, on March 27, Trump signed a stimulus package of over $2 trillion dollars to provide relief to an economy on the precipice of collapse.
The aid package includes handouts and loans to individuals, small businesses, and other distressed industries.
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Saturday, April 04, 2020
Concerned That Asia Could Blow A Hole In Future Economic Recovery / Economics / Coronavirus Depression
By: Chris_Vermeulen
Thinking somewhat far off into the future, our researchers believe China/Asia could become the next Black Hole in the global economy. China recently released its March PMI number which came in at 52.0 – showing moderate expansion in Chinese manufacturing. The February Chinese PMI level was 35.7. We strongly believe China wants to show some strength in their perceived economic recovery and that these PMI numbers are somewhat “manufactured for effect”.
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Thursday, April 02, 2020
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? / Politics / Coronavirus Depression
By: N_Walayat
Paypal are seeing an opportunity in a crisis, one of wanting to manage the US Governments distribution of $1200 Coronavirus stimulus to every adult American who earns under $75,000 per year and $500 for each child.
However, there is a fly in the ointment as $360 billion would be a lot of money to be potentially parked in Paypal's coffers! That's before any transaction fees are applied. Therefore, there is a high risk of corporations such as Paypal seeing such a vast sums of funds as an opportunity to capitalise upon through limiting account holders access to stimulus funds.
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Saturday, March 28, 2020
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do / Economics / Coronavirus Depression
By: John_Mauldin
In the aftermath of the coronavirus, we face the strong possibility of a deflationary depression. We cannot allow that to happen.
This is going to mean significant amounts of government debt, and much of it will have to be monetized by the Federal Reserve. I fully get that means risking an inflationary episode as a result.
In order to get inflation, there has to be a big rise in demand along with a jump in the money supply.
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Saturday, March 28, 2020
The Last Minsky Financial Snowflake Has Fallen – What Now? / Economics / Coronavirus Depression
By: Raymond_Matison
For more than a decade financial markets had been in denial of economic reality – as long as the Federal Reserve continued supporting bubbles. Numerous money managers and financial pundits cautioned investors in vain, as their warnings did not result in a market meltdown – until now.
An economist of the last century, Hyman Minsky, had likened the economy and stock market to a mountainside which is slowly accumulating snow. That snow appears stable until one last snowflake falls and it starts an avalanche. In the last month we did not just get one financial snowflake, but a huge snowstorm in the form of the corona virus – and it, with the already overextended markets caused this real financial avalanche.
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Friday, March 20, 2020
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis / Economics / Coronavirus Depression
By: Dan_Steinbock
Despite China’s success in containment, the novel coronavirus is exploding outside China, due to complacency and inadequate preparedness. The impending contraction will compound human risks and economic damage.Although the epicenter of the outbreak is now Europe, only a few major economies have launched effective battles against the virus. Hence, the rising levels of imported cases in the borders of China and the rest of Asia.
Since complacency and inadequate preparedness prevailed outside China until recently, the consequent global pandemic casts a dark shadow over the global economy. It, too, shall pass, but only with effective global cooperation.
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