Economic Evaporation

Between hospitality & leisure, store-based retail, and other sectors that face forced limitations, about 36% of the US economy is being impacted in the effort to curb the spread of Covid-19. If the restrictions reduce activity in these sectors by two-thirds, GDP will decline by a whopping 24%, and quickly! GDP is probably falling 6%/month, terrifyingly large declines. That’s why Congress, Treasury, and the Fed are moving so fast.