Economists warn full recovery could 'take years' as Fed index sees worse collapse than during the Great Recession
The global economy is also on course for its worst year since the end of the Second World War, Capital Economics said.
Redwood of Capital Economics wrote that while the supply-side of the economy will probably recover quickly as people return to work once the pandemic passes, there may be a lagging problem with demand."The world is heading for the sharpest and deepest global slowdown since WW2," Redwood said."Assuming that the virus is brought under control within a few months, the subsequent rise in world GDP should also be sharp. However, it could still take years for demand to recover completely."
Demand could be subdued by lingering fears of a second wave of the virus, Redwood said. Demand for travel may weaken, firms will begin to pay back the loans that saved them, and more public debt could beget another period of government austerity."Most economies should ultimately return to the path of output they were on before the crisis," Redwood wrote."We are not so pessimistic as to expect the U-shaped recession that some are predicting, with economies bumping along the bottom for a long time. In fact, this recovery should be strong by past standards.
"However, with demand weakness lingering, it may well take a few years to get back to where we were and even longer for some economies. Moreover, the world that follows may be fundamentally different in many respects, such as the role of the state and the future of globalization."
A security guard wears a face mask while standing outside shuttered shops and a 'For Lease' sign amid the global coronavirus pandemic on March 30, 2020 in Los Angeles.Mario Tama/Getty ImagesWorld Health Organization advice for avoiding spread of coronavirus disease (COVID-19)
Hygiene adviceClean hands frequently with soap and water, or alcohol-based hand rub.Wash hands after coughing or sneezing; when caring for the sick; before, during and after food preparation; before eating; after using the toilet; when hands are visibly dirty; and after handling animals or waste.
Maintain at least 1 meter (3 feet) distance from anyone who is coughing or sneezing.Avoid touching your hands, nose and mouth. Do not spit in public.Cover your mouth and nose with a tissue or bent elbow when coughing or sneezing. Discard the tissue immediately and clean your hands.
Medical adviceAvoid close contact with others if you have any symptoms.Stay at home if you feel unwell, even with mild symptoms such as headache and runny nose, to avoid potential spread of the disease to medical facilities and other people.If you develop serious symptoms (fever, cough, difficulty breathing) seek medical care early and contact local health authorities in advance.
Note any recent contact with others and travel details to provide to authorities who can trace and prevent spread of the disease.Stay up to date on COVID-19 developments issued by health authorities and follow their guidance.Mask and glove usageHealthy individuals only need to wear a mask if taking care of a sick person.
Wear a mask if you are coughing or sneezing.Masks are effective when used in combination with frequent hand cleaning.Do not touch the mask while wearing it. Clean hands if you touch the mask.Learn how to properly put on, remove and dispose of masks. Clean hands after disposing of the mask.
Do not reuse single-use masks.Regularly washing bare hands is more effective against catching COVID-19 than wearing rubber gloves. Read more: Newsweek »
Mortgage bankers warn Fed mortgage purchases unbalanced market, forcing margin callsThe Mortgage Bankers Association warned that the housing market could face a ” large-scale disruption,” due to actions by the Fed that were meant to help the mortgage market.
Fed will do what it takes to help Americans, Daly saysSan Francisco Fed President Mary Daly on Tuesday said she believes the U.S. is probably already in recession, as millions of people lose their jobs and stay at home in order to bring a quicker end to the pandemic that has sickened tens of thousands in the U.S. alone. I wonder how much longer it will be before the debt bomb goes off. White Americas refusal to live under black peoples umbrella of disparities even for a short time is what will create a recession.
Unemployment could top 32% as 47M workers are laid off amid coronavirus: St. Louis FedUnemployment could top 32% as 47 million Americans lose their jobs, according to a St. Louis Fed estimate. Hopeful they are, We will see ChinaToday continuously telling us how bad it could be. maybe they should have, i dunno... tested early and aggressively and quarantined sick people before things got out of hand? you know, like south korea did we'd be coming out of this already had we used one lick of common sense. this was pretty much ALL preventable. Is this still a hoax trumpers? 😂
The Fed Transformed: Jay Powell Leads Central Bank into Uncharted WatersThe 107-year-old institution has moved faster and farther in just weeks than it did during the 2008 financial crisis , which unfolded over 18 months. Mr. Powell’s team reached for methods used then, while creating new tools on the fly. Does the Fed stepping in to save the day continue to set dangerous precedent that fosters moral hazard? Businesses will continue to adopt risky positions to increase yields while knowing full well that they can always pass the risk onto the Fed. If you had prioritized me instead of your wallet- you’d be in a far better place right now. Wait, you mean they've performed more and more drastic manipulative, anti-free-market actions in a shorter period of time than ever before, right? 🤔
Fed Projection: Coronavirus Crisis Could Drive Unemployment to 32 PercentThe pandemic could force 47 million Americans out of work, according to new projections from the St. Louis Federal Reserve .
Coronavirus job losses could total 47 million, unemployment rate may hit 32%, Fed estimatesMillion of Americans already have lost their jobs due to the coronavirus crisis and the worst of the damage is yet to come, according to the Federal Reserve . almost 1 in 3 So basically they are going to create a depression to implement more socialism. TrumpGenocide