The Covid-19 health crisis continued to send the markets roiling last night with the Dow now down 33% for the year, despite extraordinary Federal Reserve interventions.  Most markets are down a historically rapid 25 – 40% drop from their highs just five weeks ago.

A global recession seems inevitable, with Goldman Sachs estimating that second quarter GDP could shrink at an annual rate of 24%, a record slow down, dragging the S&P to 2000 by mid-year.

The corporate, mortgage, and municipal markets were in turmoil last week, with Treasury yields rising despite stocks tanking, and strains in short-term money markets increasing.  A rush into U.S. Dollars has pushed up its value, making it harder for companies to repay those loans.


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