Fool me twice? For businesses and consumers, coronavirus is the financial crisis all over again
As the coronavirus outbreak claims lives, jobs and mental health, Americans are asking big questions about the post-pandemic world. Will we work from home more? Will it be safe to travel? To go to theaters and restaurants and gyms? Should I finally get around to writing my will?
But just as important are the shifts for businesses and financial markets. The coronavirus trauma will remake everything from national productivity to how much Americans participate in the stock market and how much they stash under the mattress. The post-pandemic world will be both jarring and, analysts say, a natural continuation of trends that began in the wake of the 2008 financial crisis.
“The episode was a reminder that the world is not as safe a place as we thought it was,” said Karen Dynan, a Harvard economics professor who served as assistant secretary for economic policy and chief economist at the U.S. Treasury Department from 2014 to 2017.
Dynan and others see an uneasy future landscape: gun-shy U.S. consumers, an even more activist Federal Reserve and businesses that may have to work harder to convince investors of their value.
https://www.marketwatch.com/story/fool-me-twice-for-businesses-and-consumers-coronavirus-is-the-financial-crisis-all-over-again-2020-04-16
