Daniel Halliday
Mar 3 · Last update 5 days ago.

Will the Coronavirus cause a global recession?

The on-going coronavirus outbreak, which originated in Wuhan, China, has been declared a public health emergency of international concern. The outbreak is causing a major strain on international markets, with market leaders in numerous sectors reporting significant losses, and the Dow Jones Industrial Average experiencing its biggest single-day drop in history. With many economies internationally still reeling from the Great Recession a decade ago there are very real fears that the coronaviruss outbreak could lead to another major global recession. Is the 2019 coronavirus outbreak likely to cause a global recession? nypost.com/2020/01/27/coronavirus-origin-traced-to-animal-market-in-wuhan-tests-confirm money.usnews.com/investing/stock-market-news/articles/2020-02-12/coronavirus-stocks-companies-most-affected-by-the-outbreak usnews.com/news/economy/articles/2020-02-27/dow-plunges-to-biggest-loss-in-history-on-coronavirus-fears foxnews.com/us/decade-since-recession-thriving-cities-leave-others-behind
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No, they are doing to same thing as 2008 and it will work for now…
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Yes, and worse a healthcare catastrophe
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No
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Yes
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No, they are doing to same thing as 2008 and it will work for now…

A financial crisis is just one aspect of the coronavirus, it is firstly a biological crisis, it is an economic crisis as people are being told to stay home and businesses are forced to closed, and as the pandemic goes on there is the growing possibility of a social crisis as people are placed under greater pressure and stricter measures as the pandemic worsens. The 2008 recession was addressed by bailing out many of the failing financial organisations that led to it, and coming up with a money printing playbook that artificially inflates markets to ridiculous degrees to ride out financial crisis. This is that is happening with Trump’s $2.2 trillion stimulus bill, making a full financial crisis unlikely, however just like 2008 this is a massive expansion of Wall Street corporate hegemony, effectively giving trillions of free money to corporate power to invest and consolidate after the crisis. This bailout will cause the majority of money flow upward targeting large businesses and corporations, the companies best suited to surviving this economic crisis, while giving small provisions to small businesses, healthcare, and individual taxpayers. Trump and congress are using this health tragedy to profit corporate donors, while ignoring the very real health crisis and possible social crisis the pandemic could lead to.

thebalance.com/what-caused-2008-global-financial-crisis-3306176 moneymetals.com/podcasts/2020/03/27/senate-passes-22-trillion-bailout-001996 facts-are-facts.com/news/the-federal-reserve-is-privately-owned trtworld.com/americas/trump-signs-2-2-trillion-stimulus-package-34919

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Daniel Halliday
Mar 28
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Yes, and worse a healthcare catastrophe

The recession will be the least of an average citizens concerns if the pandemic continues as it seems to be, with the worst hit countries being the ones with the oldest populations and the least public healthcare infrastructure. The lack of public healthcare in the United States for example looks set to send the country into a healthcare catastrophe, which might have already occurred in states like New York, where almost half of the cases reported have originated so far. Widespread inequality-induced poverty means that it will probably spread quicker here than anywhere else, as health in America can only be as safe as that of the worst insured during a highly contagious pandemic. Such a catastrophe could be much more costly and damaging to the economy than recession and could cause an extended depression, with the cost to life being much greater, and this will be even more drastic for poorer economies with a similarly lacking public healthcare plan.

ft.com/content/0f738974-6c63-11ea-89df-41bea055720b twitter.com/AnandWrites/status/1233041575414050817 ccn.com/coronavirus-pandemic-could-spark-a-global-depression-warren-buffetts-shopping-spree barrons.com/articles/coronavirus-recession-depression-us-economy-51584481953

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Daniel Halliday
Mar 26
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No

There has already been a bounce back from the stock market damaged caused by coronavirus uncertainty, with the Dow Jones Industrial Average experiencing a historical point gain in early March, its highest percentage gain since 2009. On the contrary, market dips were due to travel bans, event closures and cancelations, which could be exactly what helps to defeat the virus, which is in the long run most important outcome. Invesco, a large US based investment firm, assume the impact will be relatively minor, it found in a recent study that “financial conditions thus far remain exceedingly easy compared to the starts of each of the past three recessions” [1]. In the long run there will surely be a market bounce back once the situation is under control and concerns have passed, and a dip due to people moving around less indicates the outbreak moving in the right direction, this could be evidence the global economy will not fall prey to the coronavirus as well.

news.yahoo.com/dow-rebounds-greatest-1-day-213930614.html forbes.com/sites/simonconstable/2020/02/26/dont-panic-yet-coronavirus-will-not-cause-recession-invesco-says/#66a7d2d823d7

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Daniel Halliday
Mar 8
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Yes

If China is anything to go by, the lock-down response to the virus has crippled the automotive industry, a common barometer for a countries economic health. The decline in Chinese sales is already having a trickle down effort also, with European airlines and luxury-goods makers experiencing big losses. According to Jon Cunliffe, Deputy Governor at the Bank of England, “if it's a pure adverse supply shock, there is not much monetary policy can do”. This virus could potentially cause massive economic downturns that governments are powerless to tackle with fiscal measures, and this may already have started with supply chains and distribution problems being an already apparent issue. Waves of bankruptcies are expected in China and that will have trickle down effects with Chinese consumers now making up a larger proportion of global consumption due to the countries economic growth, the coronavirus outbreak is likely to effect businesses worldwide in the long term.

jalopnik.com/the-coronavirus-is-hitting-chinas-car-market-hard-1841660308 marketwatch.com/story/european-airlines-and-luxury-goods-makers-hit-hard-as-chinas-coronavirus-spreads-2020-01-27 zawya.com/mena/en/economy/story/Central_banks_cannot_offset_coronavirus_supply_shock__BoEs_Cunliffe-TR20200227nS8N28U00OX6

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Daniel Halliday
Mar 3
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