Coronavirus crisis a bubble?
Despite the negative sentiments, stock markets rallying with the support of monetary policy from the Feds.
FinancialBubble GreatDepression DotComBubble SubprimeCrisis CoronavirusAuthor: Admin
Published: May 21, 2020, 8:07 p.m. GMT+8
Last Updated: May 21, 2020, 8:29 p.m. GMT+8
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The 2nd quarter fundamentals of the economy are plagued by Coronavirus. The large-scale lockdown causing the contraction of the supply and demand side of the economy. The unemployment rate might surge over 20% at the end of May 2020. At the same time, the number of cases of Coronavirus surpassed 1.5 million cases with more than 90 thousand death. Despite the negative sentiments, stock markets rallying with the support of the stimulus and monetary policies from the Feds. The new normal of social distancing caused structural changes for most sectors of economies. The economic activities cannot resume at full capacity before a vaccine is produced for mass immunization. The high valuation of the stock market without the support of real production of the economy is a danger sign. It might trigger the burst of the financial bubble if the current health crisis is not under control.