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Three things will determine if there’s an economic depression

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Bloomberg/Tim Duy/4-7-2020

graphic image of a very long staircase“That bounce, however, won’t be a full recovery. There are two broad obstacles to a V-shaped recovery. First, expect some persistent damage to the economy as the result of firms going bankrupt and the severing of employer-employee relationships. The CARES Act, with its enhanced unemployment benefits and aid to business, helps minimize this damage, but it remains insufficient to stem all the bleeding.”

USAGOLD note:  Oregon University economist Tim Duy addresses objectively the questions on many investors’ minds as we move deeper into the fourth month of this crisis – which now seems like it has been with us for years, not months.