‘This is a war,’ said Carmen Reinhart
The top economist at the World Bank said in an interview on Thursday that the coronavirus pandemic is “morphing into a major economic crisis” and questioned the wisdom of central banks increasing their sway over the bond market.
“This did not start as a financial crisis but it is morphing into a major economic crisis, with very serious financial consequences,” World Bank Chief Economist Carmen Reinhart told Bloomberg.
“There’s a long road ahead.” She said the “longer the uncertainty, the longer the pandemic works its way through the global economy, the bigger the balance sheet damage.”
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WNU Editor: The economic impact on the global economy because of the Covid-19 pandemic is something that I am trying to game out. And it is hard to do it. The reason why is because the pandemic shows no signs in ending, and in many cases it looks like it is getting worse. But I do know one thing. The huge debt levels that governments, companies, and individuals have accumulated are going to take a long time to clear, and that it is going to impact each and everyone of us in our pocketbook. We could be at the cusp of living in in a depressed economy for the next 5 years.