Moody’s analyst spoke about the risks of premature lifting of restrictions in the United States Moody’s analyst Mark Zandi expressed concern that the state is being drawn into a dangerous game by opening a business too quickly. He warns that […]
Moody’s analyst spoke about the risks of premature lifting of restrictions in the United States
Moody’s analyst Mark Zandi expressed concern that the state is being drawn into a dangerous game by opening a business too quickly.
He warns that a second outbreak of the coronavirus could send the country’s economy deep into the water. Moreover, while there is no vaccine, it is not reasonable to talk about lifting restrictions.
«If we get a second wave, the scale of the problem will be commensurate with the great depression.», – said the chief economist of the company on the air of CNBC «Trading Nation».
Mark Zandi considers 12 or more months of double-digit unemployment to be an indicator of depression.
The Labor Department said Friday that unemployment soared to 14.7% in April and nonfarm payrolls fell 20.5 million. Such statistics were last observed in the period after World War II..
The market seemed to take this data calmly.. Index Dow, S&P 500 and high-tech Nasdaq closed with growth of almost 2% on Friday.
«The market shows a fairly high probability of a V-shaped recovery», – believes Zandi.
He expects jobs to start recovering as soon as the business reopens.. If there is no second wave, then, according to his estimates, the growth of the segment will continue during the summer until the beginning of autumn..
Zandi warned Wall Street about coronavirus threat back in winter. At the end of February he said that investors and the government underestimate the damage from the pandemic. His prediction came even before strict restrictions were imposed in the United States to contain the spread of the virus..
For the economy to return to normal, he argues that the first step is to make serious progress on a vaccine.. «It is very important. This is a necessary condition for a full economic recovery. Otherwise, at some point we will see how the market overestimates all available assets», – said Zandi.