A general view of a mostly empty Wall Street in New York City in midmorning on April 2. BRUCE BENNETT/GETTY IMAGES
Are the Markets Underestimating the Coronavirus Depression?
As we saw during the last financial crisis, the “smart” players aren’t always so smart. One thing we know: The world economy will never be the same.
BY MICHAEL HIRSH | APRIL 3, 2020, 12:08 PM
[source: https://foreignpolicy.com/2020/04/03/markets-underestimating-coronavirus-depression-economic-impact-pandemic-financial-crisis/ FP is very Establishment and is owned by the half-Jew Donald Graham, former owner of the CIA asset “Washington Com-Post” 😉 1979–2000, and later was the lead independent director of Facebook‘s board of directors 2009–2015.]
One of the most enduring images to come out of the last financial crisis more than a decade ago was that of former Federal Reserve Chairman Alan Greenspan—once seen as the “maestro” of markets—expressing his “shocked disbelief” that Wall Street had blown itself up. How could people so smart act against their own “self-interest” and get things so wrong? Greenspan wondered aloud during testimony to Congress in the fall of 2008. “The whole intellectual edifice,” he famously said, had “collapsed.”
In the subsequent decade-long record bull run of the markets—which lasted until the coronavirus pandemic sent them tumbling a few weeks ago—the hoary conventional wisdom of Wall Street reasserted itself: The brilliant traders and analysts on the Street will always find a way to protect their self-interests, and they usually figure things out before anyone else, pricing in the worst possibilities. But today, with financial markets seesawing day by day yet generally holding steady—even as some economists and knowledgable pundits suggest the U.S. economy is heading into a depression—it’s worth second-guessing Wall Street once again.
Indeed, it’s probably not too much to say the financial markets may now be whistling past the graveyard of the American economy.
One of the problems is that when faced with something truly huge and world-overturning—something unprecedented and therefore unpredictable—disbelief recedes slowly. That was the case in 2007 and 2008, when major authorities, even Fed Chairman Ben Bernanke, kept reassuring Americans that housing prices were supported by “very strong fundamentals,” and investors looking for safer ground put up a constantly eroding wall of denial against the rising tide of defaulting mortgages. This continued right up until Lehman Brothers collapsed and hundreds of thousands of trading counterparties, unseen until then, defaulted and panicked, nearly bankrupting most major financial institutions. The smartest minds in finance had deluded themselves into thinking they were spreading risk around the world when mainly what they were doing was hiding it. All at once, it seemed, everyone realized that the entire financial system was infected and there was no safer ground any longer.
In recent weeks, after a big initial plunge in March, the markets have been bumping along even as the signs of economic devastation become clearer every day.
Economists are warning that unemployment is going to hit Depression-plus levels,
…and Trumpian hopes for a sharp V-shaped recovery—one in which the economy regains its prepandemic vitality and shape after only a couple of months—are dimming rapidly. On Thursday it was reported that another 6.6 million people had filed for unemployment claims, adding up to 10 million in two weeks, and a day earlier a Federal Reserve of St. Louis economist projected
the jobless rate could reach 32 percent, higher than the worst of the Great Depression,
indicating that many businesses will go under and not come back.
The Paycheck Protection Program that launched Friday as part of the $2 trillion disaster relief plan will help a lot—under it, businesses that keep workers on their payroll for eight weeks or promise to rehire laid-off workers will have federal loans forgiven—but this is only an island in a sea of soon-to-default debt. Meanwhile, many economists argue that much of the new stimulus is ill-designed, and Senate Majority Leader Mitch McConnell is balking at another one any time soon.
The new unemployment numbers released Friday, showing an uptick to 4.4 percent, up from 3.5 percent in February, with 701,000 new job losses, are widely recognized as not reflecting this rapidly developing new reality. The Dow Jones Industrial Average reacted to the news with only a slight downturn of 361 points, or 1.69 percent. But at current rates, the unemployment numbers to come look staggering:
Thousands of restaurants and hotels, and possibly many airlines, will never return to solvency, nor will many entertainment and leisure companies such as casinos and movie houses, and a wide range of other small businesses from auto repair to construction.
The so-called gig economy of millions of self-employed workers is beginning to go under; most of these people will fall into serious debt and will have to reinvent themselves in some new way.
The social consequences will be long-lasting.
The gap between the rich and everyone else, already jarring to social stability, will only widen:
The less money you earn now, the less able you are to ride out the pandemic at home without going out to put food on the table—and therefore the more susceptible you are to the disease. Ironically, it is many of these less fortunate—“first responders” like the cashiers and stockers at big outlets such as Walmart and Target, warehouse workers, and delivery people—who are keeping the U.S. economy and indeed American society running right now, and at little better than minimum wage. And they’re not happy, understandably, with their lot. However soon the coronavirus dies out, that social instability is not going away.
“This is not going to be an easy recovery once we do hit bottom,” said Lawrence White of New York University. “I’m afraid of the deterioration of intangible but very important relationships, whether supply chain relationships or employment relationships. Or customer relationships. Or lender-borrower relationships. The longer we go, the more they deteriorate, and the harder it is to recreate what we had.” […]
Michael Hirsh is a senior correspondent and deputy news editor at Foreign Policy. Twitter: @michaelphirsh
…..As I said a month ago on Faceberg, and got banned for it:
Now, everyone who dies of anything will be listed as dying of COVID-19:
https://www.thegatewaypundit.com/2020/04/cdc-tells-hospitals-list-covid-19-cause-death-even-assumed-caused-contributed-death-lab-tests-not-required
I picked up a couple of Sunday jewspapers today, just to see what they have planned for us regarding this coronavirus hoax. I studied the articles relating to the coronavirus “pandemic” carefully, keeping in mind (((who))) wrote them, and their possible agendas. I came to the following conclusions:
1) Anyone dying of anything will now be listed as having died of COVID-19, in order to inflate the statistics and increase the hysteria (see article link above).
2) Testing via the flawed PCR test, which amplifies any trace amounts of coronavirus and does not specify what type of coronavirus is present, will be massively expanded, with possibly anyone who goes into a medical facility for any reason being given the test “for the protection of our healthcare staff and community.”
3) Anyone testing positive on the PCR test, even if they show no symptoms at all and are perfectly healthy, will be quarantined for 30 days or more, either at home, or in a facility set up for this purpose. This will put even more people out of work and further destroy the economy.
4) The jewsmedia hysteria about the coronavirus will continue unabated until probably the middle or end of July, by which time the U.S. economy will be destroyed, and we will be in Great Depression II.
5) In the middle or end of July, the jewsmedia will declare the crisis has passed for now, and “social distancing” guidelines can be relaxed, just in time for the Democratic convention in Milwaukee on August 17th (what a cohencidence!).
6) At or before the Democratic convention on August 17th, senile Joe Biden will announce Michelle Obama (“Big Mike”) as his VP running mate.
7) At the Democratic convention on August 17th, Hillary Clinton may try to hijack the nomination due to Biden’s senility, and force him out. If successful, Hillary may then choose the homosexual Pete Buttigieg as her VP running mate, or could even keep the transgender Michelle Obama as her VP.
8) With the U.S. economy in a deep depression, 50% unemployment, and possibly rioting in the streets, Trump will of course be blamed for it all by the Democratic nominee.
9) After the August 17th Democratic convention finishes, the coronavirus will begin its second cycle, as predicted by Dr. Anthony Faustus in a 4/5/2020 USA Today article titled “US tops 1,000 COVID-19 deaths in a single day” (couldn’t find it online). Here are the three relevant paragraphs from that article:
—– Begin excerpt —–
It also raises questions about COVID-19’s possible deadly effects over time. Anthony Fauci, a member of the White House Coronavirus Task Force, has cautioned that the virus could become a recurring event, much like the flu. He said that the U.S. needs to get ready for the next cycle, possibly to occur in the fall of 2020.
“We really need to be prepared for another cycle,” Fauci said.
Fauci, the director of the National Institute of Allergy and Infectious Diseases, emphasized the need to continue developing a vaccine and test it quickly so it will be available “for that next cycle.”
—– End excerpt —–
10) With the Democratic nominee in place, the jewsmedia will say that the coronavirus has returned, and even deadlier than before, just like the Spanish Flu of 1918 – 1920, which started as a mild flu in the spring of 1918, but turned deadly in the fall of 1918.
11) the renewed hysteria about a deadlier form of COVID-19 will allow the (((government))) to mandate that all U.S. citizens must receive a COVID-19 vaccine, which will have God-knows-what in it.
12) The renewed coronavirus hysteria will lead to even more businesses closing down, higher unemployment, and more social chaos. The Democratic nominee will blame Trump for it all, and promise free everything for everyone if president.
12.5) Due to renewed coronavirus hysteria over a supposedly more deadlier form of it appearing after the August 17th Demoncratic convention, we will be told that the presidential election on November 3rd must be done via the Internet rather than at polling stations, and a crash program to develop the systems and infrastructure for it will be undertaken (they’re probably already working on it). We will be told that it will be “tamper-proof, goyim!” With no paper trail at all, this Internet voting will allow the Demoncrats to easily steal the election in a landslide victory for the Demoncrat candidate, whether it is the senile placeholder Joe Biden or the Queen of Corruption, Hillary Clinton.
13) The dumbed-down, unemployed, desperate, and possibly starving American public will buy the lies of the Democrat nominee, and select the Democrat for president on November 3rd.
14) The media hysteria and fake coronavirus deaths will continue unabated until the Democrat takes office in January 2021. Then, magically, the virus will disappear, and all will be well again in the Jew-S-A.
15) If the Democrat POTUS is Biden, he will only be in office for 6-12 months before his Jewish handlers force him to step down due to his senility. Then his VP, who will probably be Michelle Obama, will become POTUS.
Anyway, that’s how I see this whole coronavirus hoax developing over the next year or so. Time will tell if I’m right. I hope I’m wrong about all of it, but I don’t see anyone stopping this hoax train.
I basically agree with all this, but see perhaps Gretchen Whitmer as becoming president.
As I said to Margi last night, the white American people, to preclude them rising up with guns and overthrowing the government, will be hit by multiple, simultaneous physical attacks:
–hunger, hence physical weakness, and both no food and no cash (digital now) to buy food, and
–sickness and lethargy, produced by the actual Corona virus SARS, by the Corona vaccine, by 5G radiation (like getting an x-ray 24/7) and chemtrails, possibly containing some new and far more dangerous contents than they already have.
If any do rise, up, the military will use drones to slaughter them from the sky.
I forgot to include something between 12) and 13) in my previous comment – here it is:
12.5) Due to renewed coronavirus hysteria over a supposedly more deadlier form of it appearing after the August 17th Demoncratic convention, we will be told that the presidential election on November 3rd must be done via the Internet rather than at polling stations, and a crash program to develop the systems and infrastructure for it will be undertaken (they’re probably already working on it). We will be told that it will be “tamper-proof, goyim!” With no paper trail at all, this Internet voting will allow the Demoncrats to easily steal the election in a landslide victory for the Demoncrat candidate, whether it is the senile placeholder Joe Biden or the Queen of Corruption, Hillary Clinton.
Also, 13) above should have said November 3rd, not November 11th.
Thanks much, comrade — added and corrected.
Tens of Thousands of Medical Workers Have Been Laid Off During Alleged Virus Apocalypse:
https://dailystormer.su/tens-of-thousands-of-medical-workers-have-been-laid-off-during-alleged-virus-apocalypse
It’s just another piece of evidence that the coronavirus hysteria is a massive hoax.
Makes perfect sense to lay off medical workers during a “pandemic.” It is like sending half your own soldiers home on leave just before a battle.
“Depression-magnitude” job losses coming:
https://finance.yahoo.com/news/coronavirus-economist-the-economy-has-fallen-into-the-abyss-134836246.html
Anglin on the CDC instructing hospitals to list COVID-19 as the cause of all deaths, and the coming economic depression:
https://dailystormer.su/cdc-has-already-instructed-hospitals-to-hoax-coronavirus-death-numbers
https://dailystormer.su/moodys-says-30-of-the-economy-is-already-gone