If This Coronavirus Hasn't Concerned You Yet, To Date, This Could. Maybe Should

Wonder why the Dow and markets keep sinking, crashing, day after day for the last few weeks?

This might be it.

Coronavirus could force the world into an unprecedented depression

A bit from the article:

In its latest repricing of the economy, the market sees the now-expected global recession caused by the coronavirus outbreak morphing into an economic depression unlike any the world has seen in generations.

The big picture: Bankers and traders are looking to sell everything that isn't nailed down to boost cash positions and hunker down for the worst.

What they're saying:

• JPMorgan wrote down its expectations for global GDP to -1.1% in 2020, expecting the world's economic growth will reverse for the full year, including a second quarter contraction of -14% in the U.S. and -22% in the eurozone.
• Deutsche Bank economists foresee a "severe global recession occurring in the first half of 2020 ... quarterly declines in GDP growth we anticipate substantially exceed anything previously recorded going back to at least World War II."
• Both banks noted their forecasts are based on governments putting in place massive, yet-to-be-passed fiscal stimulus programs and fairly swift containment of the outbreak.
• "It is easy to imagine a still worse outcome," DB analysts, led by head of economics research Peter Hooper and seven chief economists, wrote.

The most dire warning came from Pershing Square Capital Management CEO Bill Ackman, who went on CNBC to beg President Trump to shut down the U.S. economy for 30 days and put the country in a nationwide lockdown.

"Until a vaccine is manufactured, distributed and injected we will go through a Depression-era period in the country," Ackman said. "America will end as we know it unless we take this option."

And here I was just anxious about the conornavirus.

Silly me.

Thank goodness we have good, strong leadership coming out of the White House and this Republican Party President and his administration.

Right?

Link:

The coronavirus economic pain in the U.S. has begun

That's what I'm talkin' 'bout...

 

The above picture is one of the best and most glaring examples of what I've written about here a few times. And that is, The Kansas City Star's inability--or lack of desire or something--to write anything penetrating--and yes, potentially negative--about the state of the area's real estate, with some few, rare exceptions.

I assume the realtors have them by the throat or something.

I thought one of the most important jobs the local newspaper would be to keep the area readers and inhabitants informed on the state of one of our most important facets of our economy--that is, both the commercial and residential real estate markets.

Silly me.

The above condominium building was created in the last year or two but to this day has remained vacant. It's in a very desirable area, too, overlooking Mill Creek Park, just off the Country Club Plaza, and is a beautiful facility.

And if it were the only one--or just one of few in the area--I could understand overlooking it.

But the fact is, there is a great number of these condominiums available in the area.

And you wouldn't know it by reading the local paper.

Commercial real estate? Especially retail?

Same thing.

I would think there are more stories there.

They did have one article, a couple days ago on foreclosure notice rates in the city compared to others, nationwide and another on discounts home buyers were getting on properties--the "pretty" news, for buyers--but that's nearly it.

And sure, they'll report the opening of a new store now and again, but give the overall, big picture on real estate, especially now, when we're in a downturn?

Not really.

Not if you read The Kansas City Star.

More proof of a really down economy

This headline just came off my email, this Friday afternoon, from the Kansas City Business Journal:

Kansas City-area riverboat casinos draw less June revenue, fewer customers

And that, my friends, represents one of the strongest indications yet of how bad our economy is right now.

Sure, restaurant and other entertainment is down and has been for months but this is the first time, to my knowledge, that people are going to the casinos less and gambling away less money.

It isn't because they choose to save this money instead, I don't think, though the one silver lining of this terrible downturn is that the personal savings rate right now is up around 6 to 7%.

I believe less people are going to casinos and gambling because the money just isn't there--people don't have it at home. And they sure aren't going to get credit for it, not in this situation.

It's dark out there folks.

It's dark and what was the old sunshine isn't coming back. Don't look for it.

Links to stories:
http://kansascity.bizjournals.com/kansascity/stories/2009/07/06/daily46.html?ed=2009-07-10&ana=e_du_pap
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aome1_t5Z5y8