Former Trump Advisor: Inevitable U.S. Recession Will Cost America ‘Trillions’ to Fix

Gary Cohn, the former Goldman Sachs executive and ex-White House economic advisor, believes that COVID-19 will undoubtedly lead to a recession in the United States.

The resulting recession will cost the United States “trillions” of dollars and lead to record unemployment.

“We’re in a recession; I’m not going to tell you that we’re not in a recession right now. You cannot remove the consumer from the U.S. economy … and say that we’re not in recession,” said Cohn.

“The unemployment number is going to skyrocket.”

On the stimulus package, Cohn said, “A lot of what is going through Congress is trillions of dollars, and the federal government is going to need to borrow that money.”

President Trump signed a historic $2 trillion stimulus package into effect on March 27th.

Cohn firmly believes that any economic recovery must heavily focus on the American worker.

“We need to bail out American workers right now,” Cohn said.

“They want to work, want to go to work if they could, are unable to, are being told to stay home, and are being told not to work.”

Fed sees ‘unique situation’

When asked if the U.S. economy was in a recession, Jerome Powell, chair of the Federal Reserve, said it “may well be in a recession.” 

Powell believes that economic activity will drop “pretty substantially” in the second quarter.

Powell says the Fed’s priority at this time is to act as a “bridge,” assisting business looking for economic support towards finding that support.

“When it comes to this lending, we’re not going to run out of ammunition. That doesn’t happen,” said Powell.

“This is a unique situation. It’s not like a typical downturn,” the Fed chairman said.

“The first order of business will be to get the spread of the virus under control, and then resume economic activity.

“We’ve asked people to step back from economic activity really to make an investment in our public health.”

Iaccino: Bitcoin a Better Hedge Than Gold? Look at the Data

Bob Iaccino, editor of the Stock Think Tank, sees the relative stability of Bitcoin compared to gold as a sign that its legitimacy as a hedge is coming into view.

costco cost

The Dividend Stock That Belongs in Every Portfolio

If you are like me, then you are always looking for great companies that are on sale. What makes the company a bonus buy is when it also pays a

Bitcoin and Gold Slaying Stocks: Why Not Own Both?

The Bitcoin vs. gold battle rages on as the two are best-performing assets of 2020. The price of gold is up 26% this year, while Bitcoin has soared 87% —

Companies Pile On Debt. Big Headaches Later for Investors?

How have companies handled the cash crunch during this pandemic? I came across an insightful in-depth research report this past week that had a few interesting charts on this. See

Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people