
Will the economic impact of Covid be like 9/11, 08', or something else? - benhsu75
Curious to hear how badly HN thinks coronavirus will impact the American economy. Is this just an economic shock? Is there anything systemic that is wrong?
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WheelsAtLarge
It will be worse than 9/11 but better than 2008. 9/11 was relatively short but
this crisis will last months so the impact will be greater.

In 2008 the banking system was on the verge of falling apart something that
would have been devastating to the economy. The Federal Government will do all
it can to make sure that there will be money to borrow. As long as the banking
system survives and people can borrow to start or continue businesses after
it's over, we will be fine over the next few years.

As a result of the economic slow down central banks all over the world will be
forced to increase the money supply everywhere. Will this lead to inflation?
That is the big question. When the central banks had to do it in 2008 it did
not. But no one knows what will happen now.

We did see a lot of money being put into hard assets such as real estate but
that was after a huge collapse in real estate values.

Given the social safety net in the US and the ability to borrow money by
business, we will not see a depression but the recession that's coming will
hurt.

