I guess this is kind of good news, assuming the light at the end of the tunnel is not another train.

https://www.cnn.com/2020/03/16/investing/dow-jones-stock-market-coronavirus/index.html

GS predictions of a ways to go before making a rapid comeback at the end of 2020.

“The Fed has also promised to pump in trillions of dollars of cash into financial markets and relaunched its 2008 crisis-era bond buying program known as quantitative easing.”

Where is all this money coming from?

“In the fourth quarter of 2019, the U.S. debt-to-GDP ratio was 107%. That’s the $23,201 trillion U.S. debt as of December 31, 2019, divided by the $21.734 trillion nominal GDP.”

“What’s the tipping point? A study by the World Bank found that if the debt-to-GDP ratio exceeds 77% for an extended period of time, it slows economic growth. Every percentage point of debt above this level costs the country 1.7% in economic growth.”

https://www.thebalance.com/debt-to-gdp-ratio-how-to-calculate-and-use-it-3305832

It is starting to sound like “we cured the disease but killed the patient”.

One thought on “I guess this is kind of good news, assuming the light at the end of the tunnel is not another train.

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