The Collapse Is Upon Us

Brookings/Financial Times: “The world economy is facing its most severe challenge of the postwar period. Economic activity, financial markets, and private sector confidence are all collapsing. The latest update of the Brookings-Financial Times Tiger index (Tracking Indexes for the Global Economic Recovery), based on the most recent available data and estimates of real-time data, shows the front end of this collapse and suggests that much worse is to come…”

“In any event, the combined public health and economic crisis makes a rapid recovery less likely. Demand has been ravaged, there are extensive disruptions to manufacturing supply chains, and a financial crisis is unfolding simultaneously. Unlike the 2008-09 crisis that was triggered by liquidity shortages in financial markets, the crisis now unfolding involves more fundamental solvency issues for many firms and industries beyond finance.”