Fed's Bullard: Coronavirus shutdown not a recession but an investment in survival

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In normal times massive unemployment and a collapse in economic output would be ...

WASHINGTON - In normal times massive unemployment and a collapse in economic output would be tragic.

They must also be coupled with massive federal government support to sustain the population through its coming isolation and prime the economy to pick up where it left off.No arguments about bailouts or “moral hazard” - the sticky issue of publicly funded rescues of bad actors.Recessions are the ordinary - even predictable - contractions in activity that mark the end of normal business cycles.

Many Fed officials have called for a stronger U.S. fiscal response in recent days, but Bullard went a step further with an explicit call for the U.S. government to match what is being lost dollar for dollar. “We are not trying to move production and income up in the second quarter. We are trying to keep it out of the second quarter,” Bullard said.30% UNEMPLOYMENT A POSSIBILITY

For now what’s usually good - jobs and production - are bad, and the headline numbers are going to be staggering.

 

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Now, the number of infected people in Japan is gradually increasing, The government has just requested schools in Japan to be closed. Despite such a situation, K-1 match were held. IN addition, 10000 people gathered in the match. Japanese downplay the coronavirus.

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Coronavirus live updates: Fed's Bullard calls shutdown 'massive investment in public health'
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