The present status in housing, stocks, and retails do not represent recession. The government and policymakers’ response are among the factors impacting the recession.
Steve Blitz, an economist at TS Lombard, believes that the real recession is yet to come. According to him, when this recession happens, long-standing consequences will be felt.
A boost in housing market and solid retail spending don’t reflect the recession. However, this situation is not a usual thing. The pandemic has caused creation of brand-new standards in the economy.
No doubt, the virus has impacted everyday life in many ways. The unemployment rate is still high, 10.2% in the US. currently, indicating a number never reported after the Great Depression. With some restaurants and stores either closed or controlled, life is enduring an unwelcome change. Concerts, travels and festivities, once favorite activities in the country in summertime, have been cancelled too.
Chief investment strategist at the Leuthold Group, on the other hand, thinks that we haven’t experienced recession yet. Jim Paulsen believes that according to the data the recession is over by now.
He said that policy makers reacted fast when the recession occurred. The $2.3 trillion rescue bill by the Congress helped with recession.
Nonetheless, the current situation shows the country is going through a decline, similar to that of recession in mid-2009.