Shock

A few tweets to remember this day by 👇

We are likely witnessing the biggest nominal demand shock in the shortest period of time in our lives so it’s almost certain whatever is done is both unprecedented and too little. Go big or go home. — modest proposal (@modestproposal1) March 15, 2020

Futures limit down; Fed cutting rates to zero and launching massive QE just shows how dire the situation is!

This economic shutdown is unprecedented; so we can expect a severe contraction over the next 2-3 quarters.

Breach of last week's lows could trigger a severe decline. — Puru Saxena (@saxena_puru) March 15, 2020

Coronavirus will cause a recession deeper and more severe than the Great Recession.

The question is how fast we bounce back from it. Hopefully we will bounce back faster. https://t.co/Qr2VYhdacU > — Stay home, don't go out, wash your hands 🐇 (@Noahpinion) March 15, 2020

It became now clear that there will be a global recession with world output going down already in the first half of the year by more than in 2008/9. Unimaginable, if the virus will stay strong still in the autumn ̶ humanly, socially, and economically. 1/4 — Vitor Constâncio (@VMRConstancio) March 15, 2020

This is not an original idea but this feels different than the Great Financial Crisis. The GFC was a man-made crisis—humans invented money and built all of the complex systems on top of it that led to the crisis. Covid-19 is biological, we can't print more money, lower interest rates, or create stimulus packages to make it go away. We can and should do all of those things to reduce the burden on both the economy generally and people individually but that's only part of the solution.

The scariest aspect is the uncertainty. When will it end? When will things get better? What does normal look like after this?