JPMorgan officially forecasts a coronavirus-driven recession will rock the US and Europe by July

[MyNameIsKhan]

A new economic-growth estimate from JPMorgan projects that a recession will hit the US and European economies by July.

The bank said its views of the coronavirus outbreak "have evolved dramatically in recent weeks." JPMorgan economists now expect US GDP to shrink by 2% in the first quarter and 3% in the second.

Eurozone GDP could contract by 1.8% and 3.3% over the same periods, the economists added.

The "sudden stop" to economic activity through quarantines, event cancellations, and social distancing contributed to the downward revision, alongside recent weeks of financial-market chaos.

"As we resign ourselves to the inevitability of a large and broad-based shock," nations' economic policy responses are key to preventing an even longer downturn, the economists added.

https://markets.businessinsider.com/news/stocks/coronavirus-fuel-recession-forecast-us-europe-economic-july-market-jpmorgan-2020-3-1028994637?utm_campaign=browser_notification&utm_source=desktop

[at140]

1. Just in time for election 2020

Does not bode well for Trump.

[MyNameIsKhan]

2. more winning !

[Wellstone ruled]

3. We have to worry about the near term effects

as this COVID-19 really digs in. Trump is toast and I mean toast,if our Dem Party can't put the stake through his Evil Heart once and for all,well we deserve what we get in November.

The Smart People on Wall Street are scared to death about their Golden Goose being killed off. Now is is salvage time,the bottom feeders are moving in today via options and futures. This whole recession started last fall with the yield inversion. And Jay Powell got rolled by Trump into reducing the Interest rate which caused a Cascading effect.

JP Morgan is one of the largest Market Makers of over sold Stocks or Bonds,my guess is they are holding Trillions in unsold Equities from other Market makers. And they are just waiting for a Cash Infusion from the Fed via a bailout bill. Two large Market Markers,Knight Trading and E-Trade have gone away from this activity and it is now going to be up to Morgan to save the market. BTW,Schawb is now a new Market Maker.

[SWBTATTReg]

4. Ha heh ha...I laugh in irony here because I don't think it takes a rocket scientist or economics ...

expert to come up w/ this kind of forecast. Of course they suggest broad solutions to the problems being faced by this economy (and the world's too) but no specifics, as to what industries should be targeted, no method of what to do in stimulating dropping consumer demand.

Shoring up financial markets by $1.5 trillion dollars in purchases is one step among many that need to be done, but this was done at rump's ranting and raving at the Feds to do something, anything, to stop the downward fall of the stock market. This is very familiar to the stock market crash of 1929, where the powers that be tried to intervene in the collapsing markets, didn't work.

Consumer demand drives this economy and the consumer needs to have trust in government again to restore consumer confidence. I doubt the current administration is able to do this (as the markets are confirming, today (Friday, 3/13/20, is better, perhaps bargain hunting?)). A honest and upfront government would go a long way towards resolving the consumer confidence issue but do we think that this current administration has what it takes? NO.

I think other governmental bodies will have to take up the slack, such as those few remaining governmental agencies not shrunk down by the incompetent rump administration (no need for such things!). States are stepping up, and I suspect the Courts will step in and have a role, as well as the House and Senate, being that the WH seems to be paralyzed by inaction for fear of incurring the wrath of the idiot in charge.