Tweets of the Day: Italy Locks Down Entire Nation

Mish

Italy Locks Down Entire Nation, WA Discusses Statewide Quarantine, Trump Proposes Energy Bailout, NY Lockdown

Italy Locked Down

Lead Image from Worldometers.

WA Governor Fears 64,000 Cases

NY Lockdown

Massachusetts Emergency

Comparisons to Italy

2000 Aircraft Grounded

Trump Proposes Energy Bailout

Hey, let's bailout companies loaded with debt and leveraged to oil.

Instant Recession

CNBC notes Italy expands its quarantine to the entire country as coronavirus cases and deaths surge

Italy will expand the lockdown of the Lombardy region to the entire country, Prime Minister Giuseppe Conte said Monday as Italy’s case count surged, making it the country with the most COVID-19 cases outside of China.

People throughout the country of 60 million should not travel other than for work or emergencies, Conte said. He added that all public gatherings will be banned and sporting events suspended. The decision was made to protect the most vulnerable people in the country, he said, and the measures will take effect Tuesday and last until April 3.

“The right decision today is to stay at home,” Conte said. “Our future and the future of Italy is in our hands. These hands have to be more responsible today than ever before.”

Italy Plans Debt Moratorium

The Wall Street Journal reports Italy Plans Debt Moratorium to Cope With Coronavirus Lockdown

Italy is planning to introduce a large-scale moratorium on debt repayments, including mortgages, to help families and businesses cope with the coronavirus outbreak.

The announcement, made by Italy’s Deputy Economy Minister Laura Castelli in a radio interview, follows the government’s decision Monday to lock down the entire country. Economists expect the shutdown to lead to a sharp economic slowdown.

Relieving consumers and business from paying back debt could cushion the economy but complicates how Italy’s fragile banking system copes with the loss of revenue.

Italian banks have long been seen as a weak link in the European financial system. Stuffed with bad loans and suffering under an anemic economy, several have failed or been combined in the wake of last decade’s Europe-wide sovereign debt crisis.

Italy is in recession already, but if it wasn't these events would surely trigger one.

Mike "Mish" Shedlock

Comments (69)
No. 1-13
bradw2k
bradw2k

Bailouts already? I'm shocked.

DBG8489
DBG8489

Looks like Italy is still on track for a doubling every three days or so.

Italy has a total of 800 ICU beds in a country of 60 million. Right now, they are treating close to 700 CV patients in those beds and they are already using triage to limit cases.

The decision to lock things down will help, but it's likely too little too late.

But it's just a flu. It will go away.

njbr
njbr

Coronavirus mortality in Lombardy is now 8%, more than double Wuhan! Lombardy health system is completely beyond ability to deliver adequate care - hence rationing who gets ICUs. It’s sad, so so sad. #COVID19 Let’s not let this happen to us America..Eric Feigl-Ding
@DrEricDing
Epidemiologist / Health Economist / Senior Fellow
@FAScientists

Ted R
Ted R

Trump is NUTS if he gives one red cent to bail out anyone, let alone the energy industry. I am in the energy industry(coal and natural gas) and I say let the free market do its thing and sort out the winners and losers. I am seriously starting to question Donald Trump's sanity.

Zardoz
Zardoz

"Hey, let's bailout companies loaded with debt and leveraged to oil." ... and collect those sweet suitcases full of cash.

MaxBnb
MaxBnb

Mr. Mish did you or someone else explain why Singapore, Thailand, Vietnam, Philippines, Indonesia, Laos, Malaysia, Cambodia --do not have many cases of virus.

thanks

JohnB99
JohnB99

Has anyone heard if they're able to determine which CV-19 strain is circling areas, L or S?

Realist
Realist

I think it is time to repeat my previous post, where I explained (tongue-in-cheek) how the Coronavirus could be the best ever gift to D Trump. Interesting that some of my predictions are already coming true.

So here it is again:

For a change of pace, instead of being a voice of reason, I will join the group of conspiracy theorists, sensationalists, and chicken littles who like to talk about the coming catastrophes.

Let us assume that the Coronavirus turns into a Pandemic that spreads around the globe, as many here keep predicting.

This could indeed bring on a recession.

Some would assume that a recession would be bad for Trump’s re-election chances.

I think that a Pandemic and recession would be a crisis that Trump would use to his advantage.

First, to counter the economic repercussions, he would announce a variety of measures, such as:

Tax cuts, increased government spending, a rescinding of all tariffs (which will be justified because they had ”successfully” accomplished their goal of reducing the trade deficit), lower interest rates, consumer spending incentives, etc

Second, in the guise of ”defending” against the virus, Trump will allocate billions to complete his border wall to keep out the plague infected walking dead from all over the world.

He will also build numerous ”virus containment” facilities where those who are deemed likely to contract the virus will be ”concentrated” together in luxurious living quarters. These facilities will have high temperature ovens to safely burn those who succumb to the disease.

He will also form a citizens ”militia” to patrol the streets and check for proper ID. Any card carrying member of the Republican Party and the NRA will be automatically enrolled into the Trump Militia and issued a Space Force Uniform and fully operational AR15. They will roam the country “keeping the peace”.

Of course, this is also the perfect opportunity to gather up any illegal aliens, and others deemed “questionable”. They will be given the “choice” of emigrating to any country that will accept them, or a virus containment facility.

Third; Trump will use this crisis to expand the powers of the President.

He will declare a War Measures Act and “temporarily” suspend some or all of the following:

The upcoming election.

The House.

The Senate.

The Judiciary.

The Constitution.

He will use his new powers to round up all opposition, including all Democrats.

Fourth: he will take down the Statue of Liberty and replace it with a monument to himself, with his arm held high, giving a tiny finger to the rest of the world.

What do you think? Am I close?

Your friendly neighborhood Realist.

Stuki
Stuki

Looks like the availability of a few more test kits, have finally started to open some eyes over here....

Greenmountain
Greenmountain

2008/9 all over except the critics of the bailout have all changed party affiliation. Is there a spine left in Washington DC?

michiganmoon
michiganmoon

My wife in a meeting at work said that they might need to prepare to do sales and other meetings long distance and everyone looked at her crazily, because they arw still under the impression that it is not as bad as the common flu....

RayLopez
RayLopez

One quibble with Mish's lead graphic: "Lead Image from Worldometers."

The two trackers below on COVID-19 in China don't match. The first one is from Worldometers. The second one, from John Hopkins, keeps increasing the Covid-19 new China cases by about 100 a day, while the first one says it's less than 100. John Hopkins claims they use a comprehensive tracking metric that does not just quote the official numbers (not clear what that is).

This is troubling, since if John Hopkins is right, new Covid-19 cases keep popping up. The thesis would then be that China has been lying on the numbers to date. Why is that important? Since China is on the vanguard, and if China cannot stop the virus (make the new cases go to near zero) then nobody can, also, it's possible maybe millions are infected rather than 81k.

A conspiracy theory, for now. For now.

RL

oxen324
oxen324

How close is Italy to defaulting? What is the action on CDS for Italy? Obviously ECB will try to contain but like most CBs they are running dry of ammunition.


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