Corona’d! Atlanta Fed GDPNow At -45.5% For Q2, M2 Money At $18.15 Trillion (Velocity Crash)

The US economy has gotten pummeled by the economic shutdown. The Atlanta Fed’s GDPNow measure of Q2 GDP is now at -45.5% with two weeks to go until the end of Q2. Note that The Federal Reserve has been expanding the M2 Money supply with a vengeance since the end of February.

M2 Velocity (Nominal GDP / M2 Money Supply) was at an all-time low at the end of Q1. The economic destruction caused by the Covid-19 related economic shutdown is epic.

On the positive side, the Philadelphia Fed is showing a V-shaped recovery.

On the down side, the trillions of monetary stimulus generated by The Fed has helped the S&P 500 index detach from corporate earnings. Or out of sync.

I could also say “Fauci’d”, thanks to our own Grim Reaper of the economy.

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