The coronavirus already declared as a pandemic has made a dent in the markets of the United States because it is feared that they will lead its economy into a recession. For many, what happens on blackboards Wall Street, with numbers in the red and downward trends, may seem far away. However, the nervousness about the losses that have cut the value of companies by tens of billions of dollars in a matter of days presages an economic blow that could reach, to a greater or lesser extent, the pockets of the population in general.
By Miami Diario Newsroom
President Donald Trump announced this Wednesday measures to face the unexpected crisis that has generated the spread of covid-19 around the world. He spoke of restrictions on travel from almost all of Europe for 30 days (something that unnerved the European Union), but did not detail whether his administration will actually implement a battery of concrete measures to lessen what is already perceived as a severe blow.
The president said that the Small Business Administration (SBA) will provide loans at low rates to the affected states and territories. The goal is for small businesses to "cope with temporary economic disruptions" that may be caused by the virus that mainly affects the respiratory tract. He also advocated a payroll tax cut.
The problem is that both initiatives must be approved by Congress and while that happens, if it finally receives the green light, the economy continues to receive the impact of the coronavirus.
Airlines have had to significantly reduce their flights, cruise ships have been stranded after registering cases of contagion, numerous events have been canceled throughout the country and stores have begun to empty in some parts.
A perfect storm that reduces the demand for services and goods, and it is slowing down practically all the sectors that make the economy roll.
On the other hand, the losses in the markets have been so deep that they rise by 20%. And, 80% of the times that has happened, what follows is a recession, according to an analysis by the Bloomberg agency.
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