I’ll try to quote some relevant sections from the NYT article:
“I hate to say it, but this is going to take longer and look grimmer than we thought,” Nicholas Bloom, an economist at Stanford University, said of the path to recovery. Mr. Bloom, a co-author of an analysis of the coronavirus epidemic’s effects on the labor market, estimates that 42 percent of recent layoffs will result in permanent job loss.
“Firms intend to hire these people back,” Mr. Bloom said, referring to a recent survey of businesses done by the Federal Reserve Bank of Atlanta. “But we know from the past that these aspirations often don’t turn out to be true.”
In this case, the economy that comes back is likely to look quite different from the one that closed. If social distancing rules become the new normal, causing thinner crowds in restaurants, theaters and stores, at sports arenas, and on airplanes, then fewer workers will be required. Large companies already expect more of their workers to continue to work remotely and say they plan to reduce their real estate footprint, which will, in turn, reduce the foot traffic that feeds nearby restaurants, shops, nail salons and other businesses.
Are the bulls here continuing to be bullish if this happens?
Almost a million new amateur traders with an innate desperation to hear good news from one of the scammiest sectors of the market. WHAT COULD GO WRONG? t.co/FjMlmobfwi
— Linette Lopez (@lopezlinette) May 21, 2020
Reopening reality check: Georgia's jobs aren’t flooding back.
What a surprise…
— GregTheAnalyst (@Analyst_G) May 21, 2020
This is the same guy that told you the economy was fundamentally sound, that no recession was coming despite the yield curve inversion, and that repo was temporary.
He lost his dot plot a long time ago. t.co/Zmh2clUK6k
— Sven Henrich (@NorthmanTrader) May 21, 2020
New York Fed President John Williams Thursday pledged unwavering commitment to limit the economic damage from Covid-19, warning of worsening unemployment and stating it will be some time before a clearer view on the economy develops.