The Great Coronavirus Recession Has Begun

The Great Coronavirus Recession Has Begun

The US economy contracted an annualized 4.8% in the first quarter, worse than the 4% economists expected. The numbers, released on Wednesday morning, came on a considerable delay. For three agonizing minutes past the expected release time, market participants stared blankly at their monitors. This effectively marks the end of the longest expansion in American history. With the second quarter all but guaranteed to bring the single worst quarterly GDP print in data going back some seven decades,
Subscribe or log in to read the rest of this content.

6 thoughts on “The Great Coronavirus Recession Has Begun

  1. Household formations? Weddings being cancelled. Stress. The young will bear the brunt of this. Three years and we will know. Like a hurricane, usually takes 3 years for the new normal.

    1. Joe- weddings will become very, very small or people will elope. We are about to find out that the wealthy do not have to spend $100,000-$200,000 on a wedding. Even if they spend that, who would show up if there is a risk of contracting Covid-19? Does not sound like fun.

  2. Secular Stagnation has become a grand aspiration not sure the “wealth effect” will even put us on a trajectory to achieve even modest growth. Economy be in for serious deflation in some sectors and supply side inflation in others –how would the Fed target that? May see sectors exerting what would be considered exogenous shocks on other sectors thought to have limited interdependence. Investing as if Fed support will efficiently transmit into the wider economy seems like a hazardous proposition –except for today

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

NEWSROOM crewneck & prints