It is life-changing for most. Millions are deeply impacted. Many are suffering. Some are dying.
Meanwhile, billionaires are “Riding the storm” and doing it quite well, according to a UBS-PwC report:
Total billionaire wealth reached USD 10.2 trillion at the end of July 2020, touching a new high after the year’s V-shaped rebound in asset prices. This level surpasses the previous peak of USD 8.9 trillion, reached at the end of 2017. There are now 2,189 billionaires,1 up from 2,158 in 2017.
Fortunes are polarizing as business innovators and disruptors deploy technology to be among the leaders of today’s economic revolution. During 2018, 2019 and the first seven months of 2020, entrepreneurs in the tech, healthcare and industrials sectors pulled ahead.2 …
We’re going through a perfect time to borrow money, as we’re witnessing one of the strangest and most counterintuitive situations: the flirt with negative interest rates. We only saw this in very particular cases, like the stagnated Japan and its “lost decade,” and we felt it distant. But now, after two big shocks in ten years (the financial crisis and Great Recession after 2008, and now the coronavirus), interest rates are like to stay extremely low, even negative, at least for any foreseeable future.
Considering that inflation levels are also extremely low because of the successive crisis and a fearful consumer, real interest rates have gone next to zero. …
We’re making decisions on the go; sometimes, just guessing, or with insufficient information. We have to admit that’s new for mostly everyone, so it’s impossible to act in perspective.
As months pass by, new research and evidence are starting to appear, either at a health and economic level, but we’re still in the dark in many of the fields that need quick action.
That’s why analysis like the one IMF just published is so valuable to fight the feeling of improvisation taking over most of the governments, businesses, and society.
The following are some of the conclusions highlighted by the IMF we should probably think about. Some of them have already been discussed and are much agreed upon in public opinion. Some others, though, have generated quite a bit of a controversy, so it’s good to shed some analytical, factful, and scientific light to feed better decision making. …