Yesterday's news marked that the US is officially now in a recession.
In the first quarter, GDP dropped by an annualized rate of 5.0%.
In the second quarter, GDP dropped by an annualized rate of 32.9% (9.5% drop in one quarter).
The dollar value of GDP dropped $2.15 trillion in three months.
And that's with the government pushing a couple trillion dollars of stimulus out plus the fed rates dropping to encourage large borrowing.
A major part of the stimulus ends today - $600/week bonus payments to the unemployed.
The states are running out of resources to keep government programs going along with the regular unemployment benefits.
Tax revenue to keep states going is down on sales and income taxes.
Q3 numbers will come out shortly before November 3rd.
The good news about the steep drop is it doesn't take much to show a gain the next quarter, even if the GDP stays $2 trillion below what the year started.
Kind of like how they cheered the job gains last month even as tens of millions of people remained unemployed.
Now, the best way to approach this as a leader would be to be straight up with Americans and say that things will be bad but we will work hard to minimize the damage.
Instead, he says things will be great and we will have a V shaped recovery.
So expect 3.0% unemployment and a $22 trillion GDP numbers in the fall if you believe him.