Re:S&P 500 triggers 15-minute trading halt for the second ti...
by jsight on Thursday March 12, 2020 @06:57PM
(#22562887)
Oh, I understand what you are saying now. I think the issue is that government officials aren't comfortable defining an endpoint right now. There are a lot of unknowns as to what could stop the spread at this point.
To relate the strategy to that formal definition of a recession, if everybody stayed home for a month this quarter, we might lose 1/3 of the quarter’s GDP. But if that break is structured so that it’s expected and we resume normal activity afterward, then in the next quarter we would see the GDP “grow“ a ton, if only back to normal because people are working and spending for the full three months, and we would cleanly avoid this formal definition for a recession.