The Verge of Depression.
On Friday, Jim Cramer conveyed a terrible message about what our financial system will look like. The mad money host claimed we could be on the verge of depression and not a recession. Especially with the great plunges in the finance system.
Amid these remarks, CNBC’S Jim Cramer portrayed a woeful expression. As of now, most of the citizens of the United States have lost their jobs with close to over one million people. The loss is attributable to several closures. bars, shopping centers, and even restaurants were all closed. All in an attempt to slow the virus from spreading. The Dow Jones, S&P 500 and Nasdaq Composite all reduced by 361,38 and 114 points respectively.
“The bad numbers are just beginning, which is why the averages got hit today. This is gonna be a brutal period, but if we handle things right, it will be a short depression. Still, I think we are making some real progress on the economic front.”
Response measures.
Due to the looming economic crises, some banks offered a relief loan of up to $350 billion. The loan is to help finance small enterprise workforces. Similarly, some parts of the federal government contributed $2.2 trillion to facilitate recovery of the economic damage induced by coronavirus pandemic. About 58000 organizations submitted application forms to the Bank of America requesting for funds to control the outbreak. Cramer also requested assistance from the government to support the restaurants he possessed in Brooklyn and New York. However, he said with no consumers the help will be less effective.
He said even though the government tries to offer assistance to the small business owners, there are no customers. Hence the small enterprises might still return to closure. Meanwhile, over the previous two weeks, approximately 10 million people have requested for unemployment benefits.
Cramer advocates for national lockdown.
Nonetheless, Cramer endorses for national lockdown and additional funds to help sustain households. He views this as a rather effective way to help reduce the virus from spreading. Cramer claims the current economic situation is influenced by the coronavirus outbreak. As such, the only way to gain normalcy is by conquering the plague.
What does Cramer think about the week is to come?
Monday: Updates on Coronavirus infections
Provided the number of persons infected with coronavirus keeps appreciating, the stock market will keep plunging.
Tuesday: Levi Strauss earnings
During Tuesday’s regular session, Levi shares recorded a decline of 4.1% which is $18.96. This is compared to 0.21% at $19 at the time of its publication.
Wednesday: Mortgage applications
Before the COVID-19 outbreak, most people used to buy homes. However, as of now, these numbers have collapsed because most people are applying for mortgages.
Thursday: WD-40 earnings
WD-40 stock dropped by 6% following the closure of markets of Thursday. This under-performance left investors feeling pessimistic. This closure has led to a projected revenue and EPS of $103 million and $1.21 respectively.
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