Stock markets are 'totally unprepared' for how long economies will take to normalize after the coronavirus crisis, one strategist told CNBC Tuesday.
Noting that the longer social-distancing measures were in place, the more would be shaved off of global gross domestic product, Jakobsen said policymakers would only be able to mitigate economic losses for another two to three weeks despite "very forceful" stimulus measures being rolled out by central banks and governments.
"We'll come to a point very, very soon where we need to decide whether we're going to keep society at a social-distancing model or we need to reopen," he said. "We are talking about unemployment in the U.S. 20%. The highest unemployment we've seen in the U.S. was 10.7% in 2008."published by MIT Sloan School of Management claimed cities with strong social-distancing measures in place would see stronger economic recoveries.
"Lifting restrictions too early could make the economy worse by leading to a resurgence of the virus in an even more destructive pandemic," said Emil Verner, an MIT Sloan assistant professor and co-author of the paper. "We have to defeat the disease before the economy can go back to normal."that countries rushing to lift quarantine restrictions risked "even more severe and prolonged" economic downturns as a result of the pandemic.
Since the coronavirus was first reported to the WHO in late 2019, more than 1.3 million people have been infected globally, with the virus leading to over 76,000 deaths to date.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dow stock market news today: Stock futures set the stage for another explosive rally - CNNInvestors continue to worry about the coronavirus pandemic's impact on the economy. Here's what's moving markets today.
Read more »
Legendary economist Gary Shilling: stock market is far from the bottom - Business InsiderThe legendary economist who predicted the housing crisis says the stock market is probably far from the bottom — in a video interview from his bee yard
Read more »
US stock futures rise and oil drops after OPEC meeting postponedUS stock futures were up Sunday evening. But oil futures fell, a sign that investors may be feeling pessimistic that a resolution to the price war between Saudi Arabia and Russia will really be coming this week.
Read more »
PETA Just Bought Stock in Ralph Lauren, Urban Outfitters and More to Push Wool BansThe animal rights organization took advantage of the recent stock market downturn to influence decisions at nearly a dozen fashion companies.
Read more »
Global stock rally zooms into Day 2 on hopes for virus peakNEW YORK (AP) — Stocks climbed in early trading on Wall Street Tuesday as markets around the world piled on even more gains following their huge rally a day earlier. The S&P 500 was up about...
Read more »