Who will save the world from a coronavirus recession? | Counting the Cost

The world's factory has been shuttered, supply chains have been broken, flights have been grounded and tourism decimated.

That's the real-world consequence of the coronavirus and the epidemic has yet to peak outside of China.

Growth could halve this year to 1.5 percent, the OECD warned in its worst-case scenario for the outbreak, a growth rate generally considered to indicate a recession.

As markets crashed, central banks stepped forward to say they were ready to support growth. The Federal Reserve cut rates by 0.5 percentage points, its first emergency cut since the financial crisis in 2008.

Whether central banks have the firepower after more than 700 interest rate cuts and trillions in bond-buying after the financial crisis is another question.

And after all that, it was the stock markets that benefitted the most from rate cuts with little trickling down into the real economy.
　
Unlike the 2008 crisis, where banks needed a desperate infusion of cash after they lost a bet on subprime mortgages, this time, they need governments to step forward to stimulate the economy.

Governments may need to find money to bail out airlines; the industry stands to lose $113 billion in revenue. The World Bank has pledged $12bn and the IMF has set aside $50bn, pledging to help poor countries where health systems are weakest, including providing emergency funding.

Bilal Hafeez, CEO of Macro Hive, says he thinks the "chances are very high that we are indeed heading for a global recession".

Rajiv Biswaz, executive director and Asia-Pacific Chief Economist at IHS Markit, adds that a scenario in which the world experiences a recession really depends on how much coronavirus spreads globally.

"Clearly now we have very substantial escalation in South Korea, Iran and also Italy. So it is certainly a growing risk that we could see this escalating into a pandemic that affects the whole world economy and that could destroy global consumption, and in that kind of scenario, there is certainly a risk that it could evolve into a global recession," Biswaz said.

[CookingLessonsforDad]

I don’t see how a recession can be avoided. Everything is going to keep getting worse for a long time.

[georgewartan]

God is teaching us a lesson. At the end of the day, materials and money don’t matter. The world has gone crazy with greed.

[michaelh]

Two years ago, I retired from working in clinical respiratory care for 38 years. Now that COVID-19 (a coronavirus) is spreading around the world, there has been some controversy in the USA about whether or not wearing a face masks is necessary or effective. From my own knowledge and experience, I can say unequivocally that wearing a face mask should be very important to everybody right now (in enclosed public places). It’s somewhat alarming for me to see that virtually no one is currently wearing a mask inside public places. Frankly, the policy in business should be that all employees working indoors must wear a mask in the workplace. The public should be firmly advised to wear a mask inside all public places!
When I worked in health care, there was a strict policy that any employee that does not get a flu shot must wear a face mask in all patient areas.
The unfortunate thing right now is that masks are in very high demand and there are hardly even enough masks just the health care industry. Fortunately, people that cannot find factory-made masks can make their own mask out of cloth, which is better than nothing.
The serious problem with the flu is when a contagious person is coughing inside an enclosed area. The virus then becomes airborne and can remain suspended for a period of time; Others nearby can inhale the bug or get it into their eyes. In a hospital, active COVID-19 isolation is employing a “space suit” of protective attire and a powered air purifying respirator (PAPR).
We can all help reduce the spread of this virus by voluntarily wearing masks in public places.

[lamindibba]

No one but Allah the Almaity God 🙏 may Allah bless ous Inshaa Allah 🙏

[ScorpionXII]

The coming financial crisis will be incorrectly blamed on the coronavirus, when in reality... all the coronavirus did was pop the debt bubble sooner rather than later.

[jaakindekeu]

As usual, the common people will have to settle the bill while the big companies will get their profits.

[amanandom]

In the US stock market is more important than the people.

[keepsakebows]

The Bible predicts all of this. Its a now or never time to Accept Jesus and repent. The probation period is closing soon, just as in the time of Noah. I have no fear. I am ready to hunker down for 6 months and will overcome.

[windsfchange]

Recession? What if the human race is jeopardized because of sick China? China needs to pay all the affected countries with covid-19 good portion of money. Recession should be compensated by China's foreign reserves.

[agnesrandolph]

Only Jesus Christ the Savior of the world, Full repentance from sin, Judgement on the nation's . Repent Repent Repent everybody, fear God.

[hussainlaskar]

China is very successful in exporting various products and the virus

[perpetualifenna]

Jesus Christ is the only person who can save the whole world from coronavirus

[catamaranboat]

Mr. Director-General: Please resign your job from WHO and accept your new job at CHO (China Health ORG). Don’t know how you defined “under Control” but surely it is totally out of control around world. In fact, the number of outbreak is increasing in everywhere and pandemic is suitable for the current situation.

[bentonpoponne]

This is a short lived recession as it was spurred by a fixable event. When economies crash, its the icing on the cake that is lost, not the cake itself, as we live. Consumption is in accordance with need as we outreach into more uncharted territories with economic growth at hand. What is important is that we must learn to provide for ourselves at home. All resources come from the earth that you are standing on as it provides for all that breathes. Utilize it as you can that you may provide for your families and others.

[jacobblatz]

No one else than JESUS can save the World

[AndyChristianLoyola]

caring for business more than people... the irony

[shanincoffer]

Will my rent finally go down to normal?

[girvinclements]

when the titanic sank the band played on so let's just get on with it..

[jeremiah]

Genesis 7:1, NIV: "The LORD then said to Noah, 'Go into the ark, you and your whole family, because I have found you righteous in this generation." ... Genesis 7:1, CSB: "Then the LORD said to Noah, "Enter the ark, you and all your household, for I have seen that you alone are righteous before me in this generation."

[Mr_Bunnie]

Prepare. Buy rice and beans if low on cash. There isn't enough mask to go around.

US hospitals are asking nurses and doctors to use mask sparingly. No shipment of mask till April.