Is a Global Recession Around The Corner?

"The United States is suffering the most abrupt and widespread cessation of economic activity in its history, hurtling toward a recession that could mean lost jobs, income and wealth for millions of Americans," Washington Post's David Lynch writes.

"The problem is everyone in America is cutting back their consumption. A lot of sectors are being hit, especially the services sector. A lot of income and spending is being reduced. That's just an enormous shock to the economy." - Jason Furman, who chaired the Council of Economic Advisers in the Obama administration, says.

In Las Vegas, MGM Resorts (NYSE:MGM) said Friday it would begin layoffs next week. "Business demand has decreased significantly," CEO Bill Hornbuckle wrote in a letter to employees.

The economic damage could be massive. More than 18M Americans work in industries that are being hurt by efforts to contain the virus: travel and tourism; spectator sports; museums; hotels, railways; and the performing arts, according to economist Michael Feroli of JPMorgan Chase.

"If we don't change the trajectory, we are certainly headed for a worse outcome than officials are indicating," Simon Johnson, the IMF's chief economist in 2008, says. "We've never experienced a shock like this."

When Wall Street opens Monday, analysts will be watching potential trouble spots such as leveraged loans, for any hint of trading bottlenecks.



by WooHoo Ireland


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Trading in leveraged currency contracts comes with substantial risk. You must be aware of these risks before opening an account to trade. High leverage amplifies gains as well as losses, leading to potential loss of the entire account balance. Trading in leveraged currency contracts may not be suitable for every investor. Never speculate using money that you cannot afford to lose.

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