Every week more nations get COVID-19 under control, slowing its growth rate. After COVID-19 comes the hit to the world economies. Will it be a deep or shallow decline? Of long or short duration? Will we handle it well or poorly?
While COVID-19 spreads across American, many scream for a third month that China lies about its numbers. Meanwhile, China begins restarting its society. Our pride prevented us from learning from China’s success against COVID-19. Will we learn from China’s restart?
A recession is certain. Unless the epidemic breaks soon, a depression seems likely. Lessons from history tell us how to fight it. But much of our experience is inappropriate and we will have to improvise. Here is the brief.
The stock market has become the next casualty of the COVID-19 pandemic, down 30% since February 19. If the epidemic grows much worse, the market might become a fatality. There is a simple solution: close the market.