Here’s the skinny on Trump’s trillion rescue: it’s just not enough
Appetite for further giant rescues is fading as the debt ratio surpasses the peak seen during World War 2
The US economic rebound has stalled. The Census Bureau estimates that the total number of employed workers across America is now lower than in early May. The rush to reopen without an east Asian or German tracing regime has been an economic policy blunder of the first order. It risks turning a manageable shock into something more dangerous. That is why the US dollar is in free fall and why gold has hit an all-time high.
The new Household Pulse Survey designed to capture what is happening in the US labour market in real time shows that 128 million people had jobs over the working week from July 9 to July 14, down seven million from a post-Covid peak in June. This is an even darker message than the data on initial jobless claims, which has also rolled over. The New York Fed’s weekly output index has stalled. The V-shaped recovery pocketed by Wall Street has not in fact materialised.
“It does look as if equity markets are whistling past the graveyard,” said Ethan Harris, Bank of America’s chief US economist...