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.


Sorry, this content is for members only.

Click here to get access.


Already a member? Login below

Remember me (for 2 weeks)

Forgot Password