Brace For Deepest Recession on Record

When does a recession become a depression?  How deep does a recession have to get before people say, “well this is no longer a recession...it just became a depression!”

This whole COVID shutdown just becomes more unreal and surreal everyday.
*************************

The BofA team forecast three consecutive quarters of contraction in gross domestic product, “with the US economy shrinking 7% (annualized) in 1Q, 30% in 2Q and 1% in 3Q.” 

On the bright side, the economists estimate that the fourth quarter of 2020 will see a sizable pop in business activity as the measures put in place to slow the deadly contagion are slowly unwound. 

That said, the cumulative decline in economic expansion will be severe: “We forecast the cumulative decline in GDP to be 10.4% and this will be the deepest recession on record, nearly five times more severe than the post-war average,” the analysts wrote. 

Why are the researchers predicting “a recession unlike any other,” as they describe in their report, despite the Federal Reserve’s unprecedented efforts to loosen seized-up areas of the financial market and a limitless bond-buying program as well as a $2.28 trillion relief package that was signed into law on Friday by President Donald Trump?

https://www.marketwatch.com/story/brace-for-the-deepest-recession-on-record-says-bofa-analysts-as-jobless-claims-surge-to-66-million-2020-04-02