The Meme, on Monday morning, as a Retweet from the White house spread, came at the worst possible time: The historical crash of the US stock market was already in sight, the number of corona cases in the United States continued to rise and the price of Oil dangerously sagged. An economic crisis was on the horizon, the Retweet showed but Donald Trump the violin like Emperor Nero while Rome burned. Trump praised the Meme, many viewers, however, were flabbergasted.

in fact, the probability of a recession in the United States is getting closer to 90 per cent, it has been estimated by the investment Bank J. P. Morgan. The President, of course, unimpressed: Monday’s Crash on the New York stock exchange have to do with the Virus to blame for the Implosion of the Oil price to be, as well as the fear-mongering of “Fake News,” tweeted Trump.

But also the Oil price war between Saudi Arabia and Russia as a result of the spread of the pathogen and of the associated demand loss. And because the United States is the world’s largest crude oil have become a producer, operates the American “energy dominance” in a threat to the US economy.

Because, with Barrel prices of $ 30 or even less is the Fracking business is no longer profitable and have to fear energy producers in States like North Dakota, Texas, Oklahoma, and Pennsylvania for their existence. Such a collapse would also pose a threat to lenders and regional banks that financed the Oil Boom on the Prairie.

Not just the energy business but insolvencies threatened in the event of a recession: half of The debt of US companies would be made up of “Junk Bonds”, a slowdown in the Business cycle could therefore lead to a broke shaft, warned the Economist Edward Yardeni on Monday. Also, US households are heavily indebted, here, too, a recovery is likely to have a break-in unpleasant consequences.

aid packages for the most vulnerable sectors of the economy

While the President, the risk of a recession continues to play down the work of experts in the White house already on assistance packages for vulnerable sectors of the economy, such as airlines and cruise lines (to the report). In Congress the Democrats for state-funded sick leave and for an extension of unemployment insurance and more funding for state food stamps make up meanwhile. The impact of the Coronavirus caused the economy could slump vapors, believes the democratic leadership-speaker Nancy Pelosi and Chuck Schumer, the party leader in the Senate.

The White house has been pressing, meanwhile, for the help of the US Central Bank and further interest rate requires reductions from the Fed. However, you could fizzle out: About 70 percent of the U.S. economy is driven by consumers, hardly, the Americans are likely to buy in the event of a further spread of the pathogen and in view of the low tide in your stock portfolio, cars, furniture or kitchen appliances. However, could such discounts after 9/11, targeted tax help to revive the demand anyway.

For Donald Trump would be an economic crisis at the worst possible time: Even in the best case, the US economy recovered before the autumn, when presidential and congressional elections.

Created: 09.03.2020, 22:50 PM

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