Press "Enter" to skip to content

Posts published in “Depression”

IMF: Governments Should Use “Equity-Like” Stimulus

International Monetary Fund chief economist Gita Gopinath has advised governments to implement “equity-like” support instead of loans as firms increasingly become insolvent due to lower…

Greece Rejects IMF-Styled Reforms

Greek Prime Minister Kyriakos Mitsotakis says he would not subject the country to the oversight by the “troika” of the EU, the European Central Bank,…

IMF Lowers Global Growth Forecast

The International Monetary Fund lowered its global growth forecast for this year and next in the wake of “The Great Lockdown.” The IMF forecasts a…

The Second Great Depression Started In 2020

As economies begin to close again, with politicians citing increases in COVID-19 cases, retail sales have been on the increase. For instance, retail sales rose…

IMF: The SDR’s Time Has Come

75 years after the creation of the Bretton Woods conference, The IMF is saying now is the hour of the Special Drawing Right (SDR), which…

Fed’s Powell Calls For More Economic Stimulus

Federal Reserve Chair Jerome Powell told lawmakers on Wednesday that the economy needs more help to economic stimulus to power through the economic impacts of…

Is A Dollar Crash Inevitable?

Stephen Roach, a leading authority on Asia, is worried of a quickly shifting global order and the U.S. budget deficit, suggesting it might spark a…

Manhattan Real Estate Contracts Plunge

Number of contracts for Manhattan apartments were down nearly 84% from May 2020 to May 2019. While there were a total of 160 contracts signed…

Lockdown Has Destroyed The Social Fabric Of India

Jayant Bhandari, who MBA from Manchester Business School (UK) and B. Engineering from SGSITS (India), believes we are now coming to realize how excessively governments…

$3 Trillion Economic Stimulus Bill Likely To Be Rejected By Senate

The House passed a $3 trillion Democratic economic stimulus bill on Friday that was largely rejected by Republicans and President Donald Trump. Passed 208-199, the bill would provide insolvent states and local governments with more than $1 trillion, and most Americans with another $1,200 check.

US Grocery Prices Increase Most Since 1974

The Labor Department reported Tuesday that prices US consumers paid for groceries increased 2.6% in April, marking the largest one-month increase since February 1974.

The Federal Reserve’s Response To Coronavirus

“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Federal Reserve said as it cut interest rates to essentially zero and embarked upon a $700 billion quantitative easing program to shelter the economy from the effects of the virus.

Central Banks May Cease Targeting Inflation Rates

The Federal Reserve may stop targeting inflation, the measure of price increases for goods and services over time, as the coronavirus response threatens economic depression…

EU Plans “Unprecedented” Stimulus Against Pandemic

After a four-hour teleconference on April 23, EU leaders asked the European Commission to lead on the recovery plan for the coming economic crisis.  “Tensions, if they were there at all, are not there any longer,” Dutch prime minister Mark Rutte said after the video call.

The New Normal: Austerity For All

The lock downs, which have swept the globe, are unprecedented. The U.S. economy is expected to wither by at least a quarter––as much as during the Great Depression. While the reduction after 1929 took place over a four-year period, the recent decline will take place over a few months.

Will We See an Asset Bubble or Dollar Devaluation?

With trillions of dollars ready to be injected into the U.S. economy, we could once again see a massive asset bubble, as well as a fundamental re-evaluation of risk/reward ratios for all investments. The historical average of the Price to earnings ratio (P/E ratio) for S&P 500 companies is about 16, meaning investors accept making investments back in 16 years in static market conditions. 

JPMorgan Predicts 20% Unemployment, 25 Million Jobs Lost

As the coronavirus outbreak has resulted in 16.8 million unemployment claims, and approximately one-third of Americans not paying April rent, JPMorgan predicts gross domestic product (GDP) will crater during the second quarter of 2020. 

The Federal Reserve Is Now Buying Junk

The Federal Reserve added junk bonds to the list of assets it can buy as businesses, particularly small businesses, expect to have trouble surviving the lockdowns and following depression. The Fed announced expansions of its corporate lending programs, which will include below investment grade ETFs of companies.