https://www.reuters.com/article/us-usa-stocks/wall-street-clobbered-as-crude-plummets-virus-crisis-deepens-idUSKBN20W1IF
As the oil prices continue to decrease, combined with the spread of coronavirus (COVID19), and its impact on world economy, Wall Street suffered its biggest one day loss since the 2008 financial crisis. Energy stocks were hit hard as the oil price war escalated between Saudi Arabia and Russia. Slowly, but surely, we see panic among investors and shareholders. Some analysts believe that signs of recession can be seen quite clearly, and therefore there will be a slowdown in economic activity. Do you believe that we are nearing towards recession?
As the oil prices continue to decrease, combined with the spread of coronavirus (COVID19), and its impact on world economy, Wall Street suffered its biggest one day loss since the 2008 financial crisis. Energy stocks were hit hard as the oil price war escalated between Saudi Arabia and Russia. Slowly, but surely, we see panic among investors and shareholders. Some analysts believe that signs of recession can be seen quite clearly, and therefore there will be a slowdown in economic activity. Do you believe that we are nearing towards recession?
3 comments:
I believe that a recession is being forced upon us.
We've been due for one and have taken advantage of that and now I believe their taking the drama of COVID19 as a chance to boost economic tensions and give us a recession.
Without the media coverage this would not be effecting imports/exports and trade as heavily, considering the death rate is so low and it has been recalled as similar to the flu.
I agree - there are many cases in China and Vietnam where patients have been proven to recover since this is a viral infection with low mortality rates. The media is definitely using this virus to create an economic moral panic which is pressuring decision making towards demand shocks, supply shocks, cutting back interest rates and trade. The virus definitely has had detrimental impacts and is spreading, however there are active efforts being made to develop a vaccine, and with that there should be some degree of markets self-correcting.
Yes I agree with many people that we are heading for a recession and are already in one currently. It will most likely have been induced by this panic of the plague and many places being shut for business and payment for people disappearing in some industries. However, I do think the markets will rebound well after all of this because of the strength that has been showing for so long in the economy.
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