Double Down Or Double Dip

[BlueWavePsych]

I’ve been warning since early August that the recovery was at risk of ending if Congress didn’t fund another round of fiscal stimulus to replace the CARES Act. Enhanced unemployment benefits of $600 per week ended at the beginning of August. President Trump’s Lost Wages Assistance plan provided $300 per week for up to six weeks with $44 billion diverted from disaster relief funds. Those who qualified are likely to receive lump sums up to $1,800. Now the well is dry for more than 26 million unemployed workers.

Fed Chair Powell warned this week that mortgage defaults and evictions could soar if legislators don’t provide more fiscal stimulus. Economists at Goldman Sachs cut their forecast for the rate of economic growth in the fourth quarter from 6% to 3% this week, citing little chance of additional stimulus until 2021, and Morgan Stanley followed suit the following day. Lower rates of economic growth feed into lower expectations for corporate revenues and earnings, so I expect to see strategists reduce their numbers for the S&P 500 as we begin the fourth quarter. If Congress doesn’t double down on stimulus, we run the risk of a double-dip decline in the rate of economic growth.

https://seekingalpha.com/article/4376445-double-down-double-dip

Look like a double-dip ...may be worse.

[Turbineguy]

1. They will do what

Putin wants.