Though the main street may seem to ricochet faster than Wall Street during the terrifying outbreak of Covid-19, former Office of Management and Budget director David Stockman warns on a live news channel that the pandemic is not only taking lives but also razing the world economy to the ground, with shaky market fundamentals and touch-and-go business speculations.
The dicey revelation has come out straight from the horse’s mouth on Thursday when David Stockman shared his concern on CNBC’s Trading Nation. He has stated that whoever is thinking that the central banks will stand tall till the end and the economy will continue to flourish even in this dangerous economic downfall, they living in an illusion. The exaggerating backup plan of the central banks to retrieve economic prosperity at this stage is absolutely moronic, he said.
Stockman previously had served his service under President Ronald Reagan. He is giving a clear forecast of an epic fail in the market with a downscale economy that can perish all sorts of business expansions for years.
Last year in a press conference, he spoke up against the day traders, Robo machines and chart monkeys that they forced to create an economy that was irrational and glutted with overvalued stocks.
Though he was not a seer to know about the pandemic that will affect every country in the world but he surely understood that fiscal and monetary policy never stood a chance to deal with the coming economic crisis. He will not be surprised to have bailouts.
The outbreak of Covid-19 is a side shock that will prolong the period of recession in every nation’s economy. He assumes the worse saying that assistance from the Federal Reserve won’t be effective.
The stock market is extirpating, but this will not help to fend off the situation. Higher interest rates are requiredso that all the risky speculations can vanish in thin air.
Stockman resents the suggestion of Trump to hand out $2,000 to every American is baseless because it will not contribute any help to delay or dodge the inevitable recession.
The main street will recover fast once the public health separation orders are at ease in the coming months. Main Street capitalism and business will bounce back to repair the loss in no time.
After the statement, the White House did not state anything against or for it.
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