The last recession, from Ys 2007 to 2009, was harsh because of of the meltdowns in the financial and housing markets.
The S&P 500 dove 56% from peak to trough, and home values declined 27%. That loss of household wealth took years to recover and scared on the economy.
President Trump and the Fed was not about to let that happen again as the coronavirus chaos moved in causing an instant recession and widespread business shutdowns and unemployment.
Through a set of immediate monetary aid/relief/stimulus programs, the Fed reversed a stock-market fall that turned out to be the shortest bear market in recorded history. The Fed has also pushed borrowing rates to record lows, which has brought on a boom in housing.
Broad measures of economic activity show that the C-19 coronavirus recession bottomed in May, with strong progress since then. And we are recovering jobs at record rates.
Millions of Americans benefiting from the sharp recovery stoked by President Trump’s policies that are bolstered by the Fed and Congress.
The S&P 500 set a record high this week, with the index now up 52% from its Bear-market low on 23 March, the 52% gain is real money. Thank you President Trump!
America’s homeowners are also benefiting. Historically low mortgage rates pushed existing home sales to the highest level in 14 yrs this week. Sales of new homes are soaring and the increased demand is pushing home values up.
With the virtual Democratic convention having collapsed, President Trump will now fill the airwaves with a 4-Day nominating convention that will not be upstaged.
There are 10 wks until the election, the economy shows no signs of slowing In fact, the growth of GDP into the election is expected a over 25% by the Atlanta Fed.
My work shows that the Key US stock market indexes are all in a Very Bullish mode, and we are still in the Dog Days of Summer.
This is what my colleague economist Bruce WD Barren has to say: “Besides becoming an energy exporter for the 1st time in America’s history and causing American Industry to come home due to increasing tariffs, according to government statistics President Trump has also caused US exports to rise to $13.6-B from the previous month to $158.3-B in June 2020. After being depressed by the COVID-19 pandemic, it was the 1st gain since February. Exports of goods increased $13.0-B, led by automotive vehicles, parts, and engines, capital goods, industrial supplies and materials . Also, exports of services increased $0.6-B all positive indicators that the US economy has turn upward.”
Have a healthy weekend, keep the Faith!