From March 15 to March 21.2020, 3,3 million US workers filed for unemployment insurance!
Is this a clear sign of possible new Great Depresion? Well, if we take a look at the 2009 crisis data and this one from last week, we could be near that form. Acording to some analysts, US unempoyment rate might rise as high as 30% in the 2nd quarter of 2020.
$2.2 trillion bill Congress passed so far, but to avoid a Great Depression, Congress must quickly design a more forceful response to the crisis. In my oppinion, this is not a similar crisis as the one from 2008/2009 and they are aware of that. Recesion from that time was almost easy solved with several trillions pumping in to system, but mostly that money went to bankers and on Wall Street. Now, they are trying to share that as a ‘helicopter money’ directly to citizens as well, but will that be enough?
We could say how the coronavirus pandemic stoped everything for a month so far, production, services, almost everything which generates a normal life and countrys normal economic functions. There is a lockdown all over the world, but how long this will last? Nobody knows, but acording to some projections it could last at least until June. Wooow, based on that we could expect that really bad numbers are coming. Buckle up!