The kids of the New York Shock Exchange predicted the Great Recession of 2008, yet the New York Times, Financial Times and have all but ignored. Shock Exchange: How Inner-City Kids From Brooklyn Predicted the Great Recession and the Pain Ahead chronicled what caused the Great Recession and why the next one could be worse. The U.S. economy is weak. We have been in a recession for while, but it has been masked by money-printing from the Fed, tax cuts, etc. to drive financial markets higher.

The coronavirus and low oil prices could change that. The coronavirus presents a problem the Fed cannot fix by printing money. Policy makers have urged the populace to remain at home and avoid large gatherings. That could tamp down consumer spending in a big way. The lack of travel and moving around has punished the airlines and Boeing. It has also hurt Boeing’s suppliers like General Electric, Honeywell and United Technologies. Consumer spending has driven GDP growth over the years. Now that it has all but evaporated, recession, declining economic activity and spiking unemployment are here.

Goldman Sachs Group Inc. and Morgan Stanley economists joined the rush on Wall Street to declare that the coronavirus has triggered a global recession, with the debate now focusing on its likely length and depth. A day after President Donald Trump conceded the U.S. slump alone is set to be “a bad one,” economists threw away their forecasts that the world could avoid tumbling into recession for the first time since the financial crisis.

Behind the rethink: The virus’s spread to Europe and the U.S., as well as new evidence that China — the first to be hit by what is now a pandemic — experienced a harder hit to its economy than originally projected.

Morgan Stanley’s team, led by Chetan Ahya, said a worldwide recession is now its “base case,” with growth expected to fall to 0.9 per cent this year. At Goldman Sachs, Jan Hatzius and colleagues predict a weakening of growth to 1.25 per cent. S&P Global added its voice to the chorus with a report expecting that growth would range 1 per cent to 1.5 per cent.

In my opinion, the coronavirus did not cause the recession. It simply exposed a weakness in the U.S. economy that has always been there. Shock Exchange warned you about this. Did you listen? How long will the mainstream media continue to ignore the greatest book ever written?

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