Coronavirus could cost Trump the election, Goldman Sachs warns

[IronLionZion]

https://www.cnn.com/2020/02/27/business/goldman-sachs-trump-election-coronavirus/index.html

New York (CNN Business)A market meltdown. Surging recession fears. And a sudden spotlight on America's health care system. Goldman Sachs is warning Wall Street that the coronavirus could cost President Donald Trump the election.

The potential political fallout from the coronavirus adds yet more uncertainty for investors trying to assess the impact of the fast-moving epidemic.

"If the coronavirus epidemic materially affects US economic growth it may increase the likelihood of Democratic victory in the 2020 election," Goldman Sachs analysts led by Ben Snider wrote in a report published Wednesday night.
That could be a negative for stocks because investors have been hoping for a continuation of the low-tax, light-regulation approach of the Trump administration. And Trump of course has been laser-focused on boosting stock prices.

It's no secret that a slowing economy can deal a fatal blow to the candidacy of a sitting president. That's what happened in 1992 when Bill Clinton unseated President George H.W. Bush.
In particular, Goldman Sachs notes that economic growth during the second quarter of an election year has been a "key predictor" of past presidential races.

Recession fears rise
Economists are warning that the coronavirus could spark an imminent economic slowdown or even recession. Moody's Analytics chief economist Mark Zandi said he now sees a 40% chance of a US recession during the first half of 2020, up from 20% previously.

Even former Federal Reserve chief Janet Yellen has acknowledged the outlook for the US economy is darkening.
"It's just conceivable that it could throw the United States into a recession," Yellen said at an event in Michigan Wednesday, according to Bloomberg News.

Sure we may get sick and die, but one silver lining is America may correct it's mistake from 2016.

[ProudMNDemocrat]

2. Good..Live by the Market.....Die by the Market....

The inane incompetence of the Trump Administration is on full display by a man of limited knowledge, limited comprehension of the facts, and a limited vocabulary.

I notice the LIMITEDNESS of this man. Totally lacking any intellectual curiosity of any kind.

[C_U_L8R]

3. This is what happens when you gut the government.

Stupid fucking Republicans and their know-nothing ideology. It will be the death of them.

[MontanaFarmer]

7. Exactly. There are things only the government can

do well. Epidemic/ pandemic response is one of those things. Dumb dumb fucking dumb. I hope it's the political death of them as you state, i just hope it's not the actual death of a large number of our fellow citizens.

[amuse bouche]

18. " It will be the death of them"

If only we could be sifted out away from them

[C_U_L8R]

21. At least we're smart enough to wash our hands.

And don't be like Mikey Boogers Pence.

[amuse bouche]

23. He's disgusting.

Well they all are

[Renew Deal]

4. Trump can't stand enemies he can't attack.

So this will drive him crazy

[durablend]

5. Sounds like he's gonna need more help from Putin then

[brewens]

6. Warns? That's like my warning someone they'll get a big tax refund if they file. n/t

[Sunsky]

8. I fear the opposite

If we have an outbreak in the US, we may not have an election in November. As Rachel would say, talk me down.

[IronLionZion]

9. Executive order to cancel large gatherings

but only in urban areas, not Trump rallies. And we can't have people congregating in line at polling places so they'll only allow voting in sparsely populated rural areas.

[Sunsky]

10. He can't do that, can he?

[abqtommy]

11. Don't blame a pandemic for tRUMP's incometence, inability and corruption. That's what led

to his impeachment and will definitely lead to his election loss.

[IronLionZion]

12. We've all thought he was finished so many times

but this might be the last straw. Obama led us through H1N1, Ebola, Zika, etc. without too many American casualties. Trump is failing badly and it is undeniable.

[abqtommy]

15. If this isn't tRUMP's last straw we'll have a chance with the next one. Hope is always rewarded,

one way or the other.

[WyattKansas]

20. The Media should be asking Trump...

Why he can't put a stop to this virus when President Obama immediately stopped so many viruses from harming the country and the stock market.

[cabot]

13. Every cloud has a silver lining n/t

[malaise]

14. Never thought I'd say this

but it's by any means necessary time

[maxrandb]

16. LOL - Goldman Sachs trying to stem the stock market bleeding

That's all this is.

[ProfessorGAC]

22. A Little Manipulation Too, Max

Telling big investors to take some short term pain & and quell the profit taking sell-off.
But, their savvy investors know that their portfolio growth the last 30 months under BHO was about the same as the last 3 years. So, they were either going to ride it out anyway, sell off like normal, or totally ignore GS.

[yaesu]

17. When that 3AM phone call we were all warned about is answered by Bozo the clown the market gets

a little worried.

[Corgigal]

19. Our government

is holding back test kits, and possibly results, from its own citizens.

Disgusting, wait till the videos start at our hospitals. This didn’t need to happen, either.