Treasury Secretary Steve Mnuchin told Republican senators Tuesday that there is a possibility that the U.S. unemployment rate could soar to 20% if the government takes no action to provide economic stimulus due to the coronavirus outbreak, Bloomberg News reported.
Mnuchin reportedly said he does not actually expect the jobless rate to rise that high, since a stimulus plan is likely to be passed, but wanted to lay bare just how dire the need is for a relief package to be passed quickly to help workers and businesses.
The Secretary believes the economic fallout from the coronavirus is potentially worse than the 2008 financial crisis.
White House correspondent Yamiche Alcindor asked, “How concerned are you that we are heading into a recession?” Steve Mnuchin said, “There are parts of the economy that will be impacted. … This is not like the financial crisis because back then we didn’t know when the end was in sight.”
On the 15th, Mnuchin said he did not think we would go into a recession.
PRESIDENT PRESSES FOR $1 TRILLION STIMULUS
In a couple of weeks, the Congress has spent nearly a trillion dollars while we sit with a 23.5 trillion debt. The President is now pressing for a $1.2 trillion stimulus, on top of the 8.3 billion and 100 billion stimulus packages.
The President’s stimulus would possibly include $1,000 direct payments to individual Americans to blunt the economic pain.
Communist San Francisco has a shelter in place mandate and New York City might soon have one if communist Mayor Bill de Blasio gets his way now that he and Governor Cuomo appear to be buddies. Palm Springs just issued a shelter in place mandate.
All non-essential businesses in New York and much of California are shut down.
U.S. futures and global stocks dropped as oil reaches a near 17-year low. The Russians and Saudis are going to destroy the U.S. shale market. People keep forgetting to mention that. It’s not only coronavirus we have to worry about.
U.S. equity futures declined along with European stocks on Wednesday, retracing moves from a day earlier while Treasuries fell amid a bond sell-off as traders weigh the impact of fiscal and monetary stimulus to counter the effect of the coronavirus. Oil dropped to a 17-year low.
Contracts for the S&P 500 once again hit their lower trading curbs after the gauge jumped 6% on Tuesday. The Stoxx Europe 600 Index also fell, with miners and construction companies leading the decline and telecoms the only sector in the green. Rallies fizzled throughout Asia, with Japanese shares ending barely up after rising more than 4% at one point. Sydney stocks plunged more than 6%, Bloomberg reported.
RECESSION DRAWS NEAR
Morgan Stanley and Goldman Sachs said a global recession is already underway. Recession must show two or more consecutive quarters of negative growth.
A poll shows 18% of U.S. adults have lost jobs or had hours cut due to the crisis.
Marriott hotel chain had begun furloughs of tens of thousands of workers.
Nothing like this has ever been done for a virus before. It will destroy everything in the economy that the President has built. How fortunate for Democrats and the communists, particularly Chinese communists.
These monetary fixes are fleeting although targeted payments to Americans could help. It won’t get them jobs, however.
“A big city like this, it’s almost scary.”
— QuickTake by Bloomberg (@QuickTake) March 18, 2020