Panic! At The Markets

A staff member blocks the view as a person is taken by a stretcher to a waiting ambulance from a nursing facility where more than 50 people are sick and being tested for the COVID-19 virus, Saturday, Feb. 29, 2020, in Kirkland, Wash. (AP Photo/Elaine Thompson)

There is a lot of turmoil in the world right now, especially where COVID-19 outbreak is concerned. There is a mounting economic impact on the stock market, which in turn is fueling talk of an impending recession in America.

It’s tough to say for sure that the stock market’s plunge is permanent. It is always a volatile, emotion-based factor of the economy and while it’s true that it is having a really bad time, you have to remember that it’s still much higher than where it was even two years ago. The panic over the market dipping as much as it has been is certainly exhausting, but a bit much given the information we currently have.

The problem is that the economic issue becomes a political issue, as evidenced by Chris Murphy of Connecticut.

For one thing, he is right to “generally not care,” because there are plenty of issues that Barack Obama golfed through in the previous administration. But, I would like to know what, specifically, President Donald Trump is supposed to do about these issues at the moment.

The spread of the virus in the United States is nowhere what it is in other countries. Say what you want about the CDC and Trump’s Administration, it appears that, for the moment, the virus is not spreading in the U.S. You will probably see some more cases popping up in hospitals in major urban centers, but they will be isolated and to the CDC’s credit, they are finding the people those with COVID-19 interacted with and testing them.

But, more importantly, it appears that states and local governments are doing the lion’s share of work where identifying, isolating, and treating the virus is concerned. We are seeing an incredible response from the medical community, and that is a testament, not a weakness, of the American health care system.

The stock market, however, doesn’t do analytical thinking on all this. It doesn’t stare at the numbers and determine the speed of COVID-19’s spread in the United States and act accordingly. It looks at news reports and statements from politicians and reacts strongly. Murphy is just as responsible as Trump is where the stock market is concerned.

What’s more, the stock market is a long game, and you can’t properly measure its trends and strength based on a couple of weeks. The overall trend of the market is still up – just not as up as it was before the virus outbreak began.

This panic is largely being overblown by media and politicians, but there are things to be concerned about and precautions you should take. Making this a political issue, however, isn’t one of those things you should do. Panicking and reacting instead of planning isn’t, either.

Joe Cunningham
Joe Cunningham is a Senior Editor at RedState. You can find his commentary on Louisiana issues at The Hayride. You can also follow him on Twitter at @JoePCunningham and Like his page on Facebook.
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