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So much panic selling on Wall Street. Yesterday was one of the 20 worst days in both the history of the Dow and S&P 500. Today has already had some wild swings in the equities markets. I don't think trading right now is occurring based upon economic fundamentals but rather irrational psychology.
Much of it is very rational and computer driven. And much of it is due to rational worries and uncertainties.
Of course many are over reacting. But is that over reacting actually irrational?
If the stock market was based upon economic fundamentals, the value would be MUCH, MUCH lower than it is today. It is, like real estate, completely inflated due to the low-interest rate environment...
I agree with this. The United States' economy has been mostly smoke and mirrors for multiple decades now. something like 3-4 decades.
In 2008, atleast places like China, Australia, India were doing well. This time, Asia had Recession, Europe was reeling due to Brexit and Canada was not doing that well either. USA was a Bright Spot since Trump became President. Earlier US Recession used to be the catalyst for entire world. This time it looks like Coronavirus scare originated from China and it will bring Recession worldwide along with other factors.
In 2008, atleast places like China, Australia, India were doing well. This time, Asia had Recession, Europe was reeling due to Brexit and Canada was not doing that well either. USA was a Bright Spot since Trump became President. Earlier US Recession used to be the catalyst for entire world. This time it looks like Coronavirus scare originated from China and it will bring Recession worldwide along with other factors.
That’s an interesting spin. My take is that Trump juiced an economy that was overdue for a mild recession. Dubya did something similar but not to the same degree and it caused the Great Recession. Capitalism is inherently unstable and government policy is supposed to dampen the cycles. Trump did the opposite and it’s going to be an enormous thud. If COVID-19 didn’t trigger it, something else would have. How do you do fiscal stimulus when you’re already running a trillion dollar deficit? How do you do monetary stimulation when the whole yield curve is at historic lows below 1%. Consumer confidence is now in the toilet because the public properly concluded that Trump isn’t up to the task of controlling a pandemic.
That’s an interesting spin. My take is that Trump juiced an economy that was overdue for a mild recession. Dubya did something similar but not to the same degree and it caused the Great Recession. Capitalism is inherently unstable and government policy is supposed to dampen the cycles. Trump did the opposite and it’s going to be an enormous thud. If COVID-19 didn’t trigger it, something else would have. How do you do fiscal stimulus when you’re already running a trillion dollar deficit? How do you do monetary stimulation when the whole yield curve is at historic lows below 1%. Consumer confidence is now in the toilet because the public properly concluded that Trump isn’t up to the task of controlling a pandemic.
Yes to all. DJT is talking a tax cut to fight the effects of the virus epidemic. The man is incompetent.
Yes to all. DJT is talking a tax cut to fight the effects of the virus epidemic. The man is incompetent.
I don’t think it takes a lot of insight to project that there will be an awful lot of people displaced by all the virus shutdowns. A payroll tax cut isn’t helping all the people who find themselves unemployed soon. Pretty much anyone who works in a restaurant has a big problem. That’s 15 million people. Look at all the economic sectors that are likely to have huge layoffs.
I
On the news it is reported that the shutdown of north of Italy can start recession because they haven’t fully recovered from 2008 recession. With this shutdown it will start another.
I don’t understand how shutting dow a city or half the country start a recession. Can anyone explain it to me?
I think my country should do this as precautionary and save lives and medical expenses.
Because some people say we never got out of the 2008 recession and just use debt to keep the system going.
The bond markets are not signaling a recession. They are signaling a depression.
It really hard to fix a recession when some say we never got out of the 2008 recession and this recession will be debt problem.
Last edited by Bubble99; 03-10-2020 at 06:46 PM..
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