Sunday, August 23, 2020

Why the Coronavirus crisis could cause a double-dip recession — and how to prepare for one

By Sarah Foster

The coronavirus-induced recession has certainly felt like a roller coaster. Now the question is whether it could end up looking like one.

Virus cases are resurfacing across the South and Midwest, eroding consumer confidence and leading to renewed limits on certain business activities. Federal Reserve officials and private-sector economists say it’s slowing the pace of the rebound — but more pessimistic forecasts suggest it could tip the financial system over again.

It means the long-feared W-shaped recession has entered the conversation: A double-dipping downturn, rife with twists and turns, where the financial system descends and recovers but falls again.  Read more >>