As traders and security sales firms have been working to assure us that the worst of the pandemic and 2020 ‘greatest recession’ are past, the numbers don’t confirm the thesis, and corporate clients are being privately urged to load up on cash for a long winter ahead, see Wall Steet warning to corporate America: Get cash while you can.
Yesterday, Dr. Anne Schuchat, deputy director of the US Centers for Disease Control and Prevention lanced the blind hope bubble, noting that the coronavirus is spreading too rapidly and too broadly for the world’s largest economy to bring it under control:
“This is really the beginning. I think there was a lot of wishful thinking around the country that, hey it’s summer. Everything’s going to be fine. We’re over this and we are not even beginning to be over this. There are a lot of worrisome factors about the last week or so.”
Here’s the chart via CNBC. Not ‘all clear’. The pandemic has accelerated secular demand destruction in an urge to spend less and save. The reality check of job losses, debt defaults and capital destruction is still unfolding.
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