Innopiphany52 karma2020-03-18 15:58:45 UTC
Yeah definitely - I think a 'bird' is watching me right now!
View HistoryShare Link
Innopiphany42 karma2020-03-18 16:03:30 UTC
We don't know if the housing market will crash yet. It is early days in this health crisis. Extremely likely that the SP 500 go lower - we are for a white knuckle ride. As far as when will the economy bounce back, I think we can say it won't be as long as we could imagine or as short as we'd like. So essentially, we could see several quarters of economic contraction before we see expansion again - basically we have to get through this until we can contain it or find viable treatments and preventative measures
Innopiphany27 karma2020-03-18 16:09:54 UTC
We have around 22-23.3 trillion in government debt in the US so this will increase that undoubtedly. Governments don't have as much 'fuel in the tank' in stimulating the economy - given the last recession - so this is going hit them. Historically, shocks to the economy result in higher tax rates - so some folks will definitely see this - take World War 2 - around 94% rate on income over 200,000. Also expect austerity packages after this economic shock has passed.
Innopiphany26 karma2020-03-18 16:24:55 UTC
The markets have taken a beating and there is a bit of panic sell-off. But that would depend on your current situation - I wouldn't recommend my aging parents to invest their savings in this environment. But for long term investors, this may be a good time to buy - but we might see a further drop in the market. It's really a white knuckle ride for everyone.
Innopiphany19 karma2020-03-18 16:06:22 UTC
Right now we have a stimulus package of something like 850 billion and the possibility of $1000 for every adult. Maybe not universal basic income yet - but with consumer credit at an all time high at around 14B - we can't hold on very long and the government will need to stretch to help us.
Copyright © 2014 BestofAMA.com, All rights reserved.
reddit has not approved or endorsed BestofAMA, reddit design elements are trademarks of reddit inc.