Economic Epidemic

The economic epidemic is delivering uncertainty to such an extent that the equity markets fell at an unparalleled speed. The economic decline may be greater than the great depression and unemployment may reach 30%. With a vaccine delivery at least a year away, the viral pandemic is creating localized economic epidemics different sectors of the economy. The challenge for politicians is how to prevent the economic epidemics from becoming a pandemic in the US and globally. The answer is proverbial: an ounce of prevention avoids pounds of cure. Unfortunately, the current path for the US would mean that the proposed stimulus bill is insufficient, and the equity market may require further discounting.