The popular narrative is that the economy was doing great. Than Corona happened and the economy collapsed due to the government consequences. It will be no surprise to you that I don’t agree with that narrative.
If I look at what was causing the stock market rally it was just the central bank stimulus. They are doing this for more than a decade. All that money had to go to someplace.
Investment banks just invested it. Causing record profits and making the institutions dependent on more stimulus.
According to a financial service provider is 47% of small business owners expecting to close down for good. This comes on top of the businesses that already had to close the doors.
For the macroeconomy is this a big problem. The economy will struggle to recover from the lockdown. Small businesses are the creator of new jobs. Who will create the jobs? Where will the money come from for people to survive?