We've
We've Reached a grim milestone as the Cauvin 19 pandemic drop drags on.
Johns Hopkins University says
more than one million people
have Died from the virus
worldwide.
You can see the tally there on
the map on your screen from the
university Showing more than
two hundred thousand of those
deaths are here in the United
States.
The U.S. health response has
faced a lot of criticism but
the economic response Has been
very good.
Arguably the best in the world.
Our financial expert Bruce From
Bruce G.
Allen Investments is on today
to talk about that response.
Good morning, Bruce.
Thanks for joining me.
>> Morning.
How are you?
I'm good.
Thank you for asking.
So let's talk about what the
U.S. did right When it comes to
weathering the economic fallout
from the pandemic.
The Federal Reserve Played a
big role, right?
Enormous.
>> The Fed Reserve really
jumped.
Yeah.
jumped. Yeah. In fact, 2008 2009 crisis was
almost a training grod For
what they did this time.
First off, chairman pile on his
college interest Rates to zero
very rapidly, Natasha.
Number one number two, they are
in the process of buying a lot
of fixed income Securities or
bonds or buying government
bonds, mortgage bonds,
corporate bonds, commercial
Paper, baby bonds and there
they have really raised What
they call their balance sheet
home.
How big is the Fed Reserve's
balance sheet from four Point
three trillion to over seven
trillion?
That's a lot of money that's
been Bought into that's being
used to buy bonds.
And lastly is they set up some
facilities To make sure that
credit can keep moving freely
throughout the United States.
So they move very, very Rapidly
.
You know, not only the Fed but
the administration, Congress
Worked together to provide a
fiscal response when so many
of the businesses had to close
so People were forced out
of work.
>> Can you talk about that?
>> Fiscal response from
Congress was rapid with over
Two point six trillion dollars,
which is a staggering number.
And some of that is the twelve
other dollars that went out to
each taxpayer some Of that is
the increased unemployment aid
that went out to people that
had a job.
Some of that was the payment
protection program provided
those programs Stepped in very
rapidly and that's really
helped to Ease at least the
temporary pain of this.
>> So all That taken together
really helped fuel the stock
market.
Right.
market. Right. I think one of the things about
the stock market the stock
market dances to its own beat.
>> So while the second quarter
GDP this quarter no, our
economy fell dramatically over
30 percent versus Europe Down
twelve.
It is likely that all of the
Federal Reserve and
congressional Programs really
will mute the pain of this
economic drop So that we will
end up the U.S. will be down
about eight percent.
Europe's going Down about 10
percent according to estimates
this year.
That stock Market has been
driven by a handful
of technology stocks.
Those companies Really benefit
when people are sheltered in
place have really Done well
this year.
And the question really is will
the market one Blog now?
Number two, what's going to
happen this winter?
Will we be able to successfully
tackle the virus?
And finally Get an end to this
thing?
And if that happens, the stock
market should continue to Well,
if it doesn't happen, we have a
second wave.
We could see significant More
volatility on the downside
ahead.
So really we're in a very
unpredictable moment Right now.
>> Yes.
So since the U.S. has done so
well handling The economic
fallout, it's really pumped up
expectations for the rest
of the year.
But some analysts are warning
without the continued stimulus
it could all be For naught.
So what's your take on that?
>> I think One of the things
that we're watching is how one
there's probably three big
things.
One is how big was that 600
hours a month additional Help
for people who were unemployed?
I think that really sheltered
us And helped keep the economy
going.
Number two was how Wow.
Now that that's gone, how bad
is the damage and how many
people are going Going back to
work?
The on the jobs market has
gotten a lot better.
Natasha, since April.
But the question is how do we
keep it moving forward?
And Lastly is the big question
mark in this particular
Economic crisis is what's going
to happen with women?
A lot of women are dropping out
Of the jobs market and taking
care of their kids or children
at home.
So the question really is how
the role of women is really
They've suffered dramatically
during this pandemic.
How are they going to bounce
Back?
And that's the big question
mark at both the federal urban
economists are watching.
It's all down to what's
happening with women right now.