...the lesson is simple... when the economy is melting down, do nothing because the free market will self-correct and naturally return to a healthier equilibrium...
The global financial crisis of 2008 was a garden variety slowdown in the economy by comparison, and that what is taking place now is nothing short of a depression:
...indicates that the economy contracted 5% in March, but with more measures to fight the virus outbreak being taken this decline will likely be eclipsed by what we see in the second quarter.
Steven Mnuchin said that he will double the interest rate on the PPP loan from 0.50% to 1.00% to appease banks seeking higher rates and lend money to the same taxpayers who bailed them out 12 years ago.
"This is an unprecedented event. The great financial crisis happened over a number of years. This is happening in a matter of months - a matter of weeks."
Nationally, there were 6.6 million initial jobless claims for the week ending March 28 on a seasonally adjusted basis. That amounts to a nearly 300-standard-deviation shock to the labor force.
What the CBO expects now is, at least in the short-run, nothing short of a depression, with Q2 GDP expected to plunge to -28% as unemployment soars to 10%
