Recent economic reports show a record-shattering 10 million Americans applied for unemployment compensation in the last two weeks, and the markets on a roller coaster ride.
Economic analyst Hank Fishkind tells 90.7’s Nicole Darden Creston that things will be hard for the next few months financially, but the country is not headed into a depression.
“The abrupt and drastic fall in economic activity is indeed unprecedented and frankly worse than the Great Depression,” said Fishkind.
But unlike the great depression, he said, the Federal Reserve will continue to respond aggressively to prevent the failure of the financial system.
“And second, the huge stimulus packages congress has passed, and the additional stimulus that’s sure to come, will offset a substantial proportion of the incomes that are lost during this recession,” said Fishkind.
The outlook for Orlando is grim, though, where almost 40% of all jobs are in tourism, hospitality and the non-grocery retail sector.
“By May, most of these jobs are going to be lost, and the unemployment rate may reach 30%. The only good news in all this is that it won’t last all that long,” said Fishkind.
Fishkind said he expects the recession to last between 6 and 9 months.