We at McIver Capital Management are confident that the both the Bank of Canada and Federal Reserve have provided enough monetary stimulus to support the credit markets and prevent any systemic economic failure. For now.
The fact is our economy, and those of the G7, have effectively been stopped by virus lockdowns and forced social distancing. There is virtually no economy to speak of and at a minimum, hundreds of thousands of Canadians and millions of Americans have been thrown out of work. U.S. unemployment may indeed suddenly spike over 10% due to the lockdowns, and the President of the St. Louis regional Federal Reserve Board has estimated that U.S. unemployment could even reach as high as 30%. These numbers would match the great depression and seem unlikely in response to a temporary virus. But an alarming prediction nonetheless… CLICK for Neil’s complete article