Posted on 04/25/2020 8:51:41 AM PDT by Hojczyk
Independent CBO predicts devastation from coronavirus is going to see GDP fall almost 40 per cent in April, May and June
It predicts 27 million will lose their jobs - although 24 million already have
And it says deficit being built up by vast government spending to bailout businesses will explode
A recession caused by the coronavirus pandemic and a government spending spree on testing, health care and aid to businesses and households will nearly quadruple the federal budget deficit to $3.7 trillion, the Congressional Budget Office said Friday.
Among the legacies of the outbreak, a CBO report says, is a pile of trillions of dollars of debt, amassed by a political system that has proved incapable of taking even small steps to constrain this problem.
The 2020 budget deficit will explode after four coronavirus response bills passed by Congress and signed by President Donald Trump promise to pile more than $2 trillion onto the $24.6 trillion national debt in just the remaining six months of the current fiscal year, according to the report.
That's more than double the deficit record set during President Barack Obama's first year in office.
The CBO said lawmakers eventually will be forced to tackle the government's chronic financial woes, if for no other reason than the looming insolvency of Social Security and Medicare.
(Excerpt) Read more at dailymail.co.uk ...
Full Title
Coronavirus will wipe out FORTY PER CENT of the economy, unemployment will peak at 27 million and deficit will soar, Congressional Budget Office warns in doomsday report
Yes, but if it’s for the children.
If it saves one life, it is worth it.
/Karen
Why should we start believing the CBO now? They haven’t been right about much.
We’re all socialists now.
This pandemic is not going to change demand for what we need and use in our lives - with the exception of things like going to restaurants, or movies, or sporting events, or other forms of entertainment. Those are also likely to be temporary changes in demand. When things begin to normalize, demand will still be there, and the economy will expand to fulfill that demand. I know that's oversimplified, but I believe the basic premise is accurate.
Economic fear porn
The CBO never gets it right.
Venezuela, here we come!
The true mission of this hoax
CBO has been WRONG so many times in the past they could be put in the category of a totally BLIND NFL official attempting to referee a game.
Same “news outlet” peddling “millions dead” headlines not too long ago.
It’s not the virus. It’s the governmental response.
There are still dumbasses in here that cling to the ridiculous notion of pentup demand. Those 27 million unemployed have little to no demand. Even if most of them get their jobs back they’ll be months behind on bills. Furthermore the pearl clutchers (a big number) will have little desire to return to malls, eateries, sporting events, etc.
This recovery will be long and painful.
I sense that there will be a brief BOOM once the lockdown is over. There is such pent up demand for FREEDOM and the ability to GO OU and ENJOY the company of people again, that there will be a huge, but brief boom. As I drive for a living, I DO NOT LOOK FORWARD to the roads being filled again with impatient, arrogant, terrible drivers again.
THEN the bust will come! One of the saving graces is that we will have to LIVE WITHIN OUR MEANS, as we all should do! Another saving grace will be a RETURN OF JOBS HOME from China! THAT should help revive the economy. CHUCK THE BANKSTERS AND GLOBALISTS OUT!
The CBO never gets it right.
**************
Its a joke. Nobody takes them seriously (except the media) because the CBO is highly political.
Our last Great War ended 75 years ago in May 1945 in Europe and August 1945 in Japan.
There was great fear among the economists and others in the years following WWII that the USA would see a major slowdown in the economy as we shutdown the war factories and entered a peacetime economy.
Instead, we experienced a baby boom-—can we say Boomers.
And we experienced a growing economy as people’s fears of a seemingly never ending war in Europe and the Pacific were replaced with hopes and dreams for a better tomorrow.
As a boomer himself, Trump has not mentioned the resurgence in the USA economy following WWII, but I soon expect he will.
On the other hand we have those politicians, who were born before 1946, still caught up in their negativity about the economy and other matters. Dare I say that Joe Biden is one of those people who is a PRE-BOOMER.
Well then; President Trump better get reelected or we would see daylight, financially, for as long as some dem or globalist (repeating myself) is in that top spot.
We need Trump now more than ever and we really needed him in 2016.
It’s going to take a solid right-thinking businessman to right this 40% tipped ship.
We’ve always been socialist. The ‘bad’ times just make it more obvious. Look at the amount the fed and crew has been throwing at this. Going forward, the spending and debt will be the virus that destroys all.
This recovery will be long and painful.
************
Despite the gradual rise in the market a prolonged recovery might lead to investment drying up and problematic liquidity issues. And add to that the financial burden of our exploding debt. The wheels could come off very quickly.
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