Posted on 03/16/2020 6:35:01 AM PDT by Enlightened1
Goldman Sachs on Sunday downgraded its outlook for the economy in the first two quarters of 2020 as the coronavirus zaps all growth from the U.S.
Jan Hatzius, Goldman’s chief economist, lowered his first-quarter GDP growth forecast to zero from 0.7%. The economist also sees a 5% contraction in the second quarter, followed by a sharp snapback for the remainder of the year.
“We expect US economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals,” Hatzius said in a note to clients Sunday.
The coronavirus has infected more than 156,000 people worldwide, including over 2,900 in the U.S. The rapid spread of the virus has sent stocks tumbling into a bear market, with both the Dow Jones Industrial Average and S&P 500 now trading more than 20% below their record highs set just last month.
“Even with monetary and fiscal policy turning sharply further toward stimulus … these shutdowns and rising public anxiety about the virus are likely to lead to a sharp deterioration in economic activity in the rest of March and throughout April,” Hatzius said.
In addition to the consumer spending hit, Goldman also noted the growing likelihood of “significant supply chain disruptions” as the outbreak sends business activity to a standstill.
Hatzius believes that U.S. economic growth should pick up in the second half of 2020. He expects GDP growth of 3% in the third quarter and a 4% expansion in the final three months of the year. Factoring in his new estimates, for 2020 he sees the economy growing 0.4%, compared with a prior growth estimate of 1.2%.
I am not saying Coronavirus is fake or planned, but they are going into mass hysteria to drive the economy down. When you look at Coronavirus by the numbers it is not the threat that it is being made out to be. Case in point.
Season Flu has killed over 100k (typically 13 weeks)
Car Accidents kill over 3,000 people every day
Cancer has killer 1.6 million people in 2020 alone.
Combat Vets are committing suicide at 22 a day.
I hope President Trump realizes this virus is being exploited for political gain.
Remember Rahm Emanuel quote,
"You never let a serious crisis go to waste"
Tree killing is booming.
All of these idiots are killing the economy.
Wow, GS really went out on a limb with that analysis.
Exactly! They are already declaring the economy dead.
Why because of Coronavirus.
Only 69 dead in a country of 330 million.
To compare it cancer has killed 1.6 million people in 2020 alone. Yet no one is screaming it is the end of the world.
The Flu has killed 100,303 this season (which is 13 weeks). Yet no one screaming it is the end of the world.
I have had about enough of boy crying wolf syndrome. Not that the disease is a good thing, or that it is not dangerous, but we could get ANYTHING the same way as this virus.
The elderly die from the flu and pneumonia on a hourly basis. Mainly because they cannot move.
Just as many republicans and conservatives are acting like panicked asses too.
what a disgrace.
The deep state almost never loses in the long run.
biden had all his talking points about how he would fight this cold, er, virus, and with the 3 years of market gains wiped out, this election just got a lot harder.
Many people are fickle and will want a socialist bailout.
What a shame.
deep state plays freaking hardball.
This calamity perpetrated by the MSM is so angering
“Hatzius believes that U.S. economic growth should pick up in the second half of 2020. He expects GDP growth of 3% in the third quarter and a 4% expansion in the final three months of the year.”
As long as the line is in the right direction, then fine.
You can’t just turn everything on like a switch after a complete economic collapse. This is going to be the REAL deal. People are going to have something very serious to panic about soon. Entire families are about to be permanently wiped out and homeless. Bet they will not be in the mood to hear about a scary cold virus soon.
Makes sense, the economy will slowly grind to a halt for the next 6-8 weeks.e
Very much a good example of how the scene in the movie 1984 in which the Richard Burton character (O’Brien) turns off the telescreen after a moment or two before interviewing John Hurt (Winston Smith) is my favourite in that movie. Smith looks at him in amazement and says “you can turn it off?” and O’Brien acknowledges that that is a privilege that Party members have at his level. And that’s how and why I’ve treated the news channels in the same sort of manner for all of these years.
Well folks the Dems failed to get rid of Trump through impeachment so I guess now they and their handmaiden the press will try to epidemic him.
What boggles my mind is the Dems that are calling for martial law. I don’t think they quite understand what that means under Uncle DJT. That means no congress, no courts, no blue state governors. No habeus corpus. Just one guy in charge.
Under martial law Trump could clean the deepstate actors out of govt ranks in weeks. Frog march the impeachment gang right out of their house and senate seats to military tribunals at Andrews AFB, start rounding up and mass deporting all illegals and the muslims. Its not hard to clean house when you are the only one in power.
Which is the point of inducing all this panic.
Which country do they see with a growing opportunity today this month??
The Wuhanic Plague is Communist Chinese economic warfare
Despite all that has happened, it looks like the Dems still won't get their recession.
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