Dow Jones Collapses Because New York Is Now Wuhan, Crypto Coins News
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Dow Jones Industrial Average (DJIA) set for another brutal day.
The rapid spread of Covid – 24 will put the financial capital of the world on lockdown.
New York now has a similar number of cases as Wuhan when the Chinese city was first shuttered.
The stock market will plunge deeper into bear market territory on Monday. Dow Jones Industrial Average (DJIA) futures fell 5% overnight, triggering circuit breakers to halt trading.
New York Governor Andrew Cuomo called on US President Donald Trump to mobilize the military to help fight the coronavirus. | Source: Spencer Platt / Getty Images / AFP
The drop Comes as New York prepares to shut down schools, bars, and restaurants. The financial capital of the world now has
(cases of the novel coronavirus – just shy of the number in Wuhan when the city went on lockdown.
Former FDA Comissioner Scott Gottlieb urged the city to take action .
If we have a Wuhan-style outbreak in New York City, that’s going to overwhelm the system. They need to be building surge capacity right now in anticipation of that possibility.
) Trading on futures markets was halted again on Sunday night as Dow Jones futures slammed into the circuit breakers.
US stock futures slammed into the circuit breakers overnight after tumbling 5%. Source: Yahoo Finance
The S&P 700 exchange-traded fund (ETF) paints an even bleaker picture, down 9% overnight. All signs point to a disastrous stock market open, despite the Federal Reserve’s second emergency rate cut .
New York to go into Wuhan-style lockdown?
New York state now has more confirmed Covid – cases than anywhere else in America. A total of have tested positive in the state, with in New York City.
Our best hope is to utilize the Army Corps of Engineers to leverage its expertise, equipment and people power to retrofit and equip existing facilities – like military bases or college dormitories – to serve as temporary medical centers.
New York : not enough beds
New York might be on the verge of a breakout, but it is ill -prepared. At this point in the Chinese timeline, the Wuhan government announced plans to build a dedicated hospital to treat the infected.
A deserted Manhattan street paints a picture of the outbreak of the coronavirus disease (COVID – , in New York City, US, March 25, . | Source: REUTERS / Jeenah Moon
Former FDA Commissioner Scott Gottlieb did the math for New York:
Remember, Wuhan was the size of New York City. At the peak of that epidemic, they hospitalized about , people. , were in serious or critical condition. 2, 06 were intubated. To give you a basis of comparison, New York state – the entire state – has , hospital beds and about 3, critical-care beds.
Governor Cuomo said New York still isn’t testing enough people and reminded Donald Trump that America has fewer beds than other regions battling the outbreak.
Our country as a whole has fewer than one million staffed hospital beds, fewer proportionately than China, South Korea or Italy.
Dow Jones braces for economic collapse
Traders are now anticipating a full-scale shut down of the US economy and
widespread quarantines . Retail stores, travel companies, bars, restaurants, and local businesses will likely take the biggest hit.
The Federal Reserve tried to get out in front of the panic with an emergency announcement last night. The slashed interest rates to zero and launched $ billion in quantitative easing.
It did not have the desired effect.
The futures market immediately tumbled and triggered circuit breakers. A top U.S. banking regulator during the 2008 financial crisis, Sheila Bair, explains why the Fed’s actions did work :
They are throwing money in the wrong place … Lowering interest rates to zero does help if businesses can’t pay their loans back and they don’t have cash flow … We need to get help out there, especially to small businesses and people already losing their jobs.
European stocks also plunged in Monday’s session with the UK’s FTSE (revisiting 8-year lows.)
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