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Sunday, June 14, 2020

2020-06-15

COVID-19 notes

Rt Covid-19:

 


NYT: Coronavirus in the U.S.: Latest Map and Case Count

 


Coronavirus: Should We Aim for Herd Immunity Like Sweden?

And What Can Countries like the US or Netherlands Learn from It?

Sweden has famously followed a different coronavirus strategy than most of the rest of the Developed world: Let the virus run loose, curb it enough to make sure it doesn’t overwhelm the healthcare system like in Hubei, Italy or Spain, but don’t try to eliminate it. They think stopping it completely is impossible. The natural consequence is that most citizens get infected, and that eventually slows down the epidemic. That’s why, in short, people call that strategy “Herd Immunity”.

The other strategy is the Hammer and the Dance: Aggressively attack the coronavirus by locking down the economy. Once curbed, jump into the Dance by replacing the aggressive lockdown with cheap and intelligent measures to control the virus.

Some countries and states, such as the Netherlands and the UK, or US states like Texas and Georgia, have implemented measures in between the two strategies. So which strategy is best?

Today, we’re going to use a lot of data and charts to answer these questions:

1.        What is happening in Sweden?

2.        How bad is the virus, really? How many people does it infect? Hurt? Kill?

3.        Who does it affect? Can we just protect the weak?

4.        What’s best for the economy?

Here’s what you’re going to learn:

·        Sweden is suffering tremendously in cases and deaths. Yet few people have been infected yet. They are a long way from Herd Immunity.

·        Between 0.5% to 1.5% of infected die from the coronavirus.

·        Left uncontrolled, it can kill between 0.4% and 1% of the entire population.

·        Many more suffer conditions we don’t yet understand.

·        Unfortunately, that death and sickness toll is far from having bought us Herd Immunity anywhere in the world.

·        Only protecting those most at risk sounds great. It’s a fantasy today.

·        Even if Sweden’s economy has remained mostly open, it has still suffered as much as others.

·        From now on, it might start doing worse.

·        Sweden now has regrets. But not enough. It can control the virus without a lockdown if it acknowledges its mistakes and takes the right measures.

·        Other countries, like the US or the Netherlands, are toying with a Herd Immunity strategy. It will only cause more economic loss and death.

 

 

The cost of staying open: Voluntary social distancing and lockdowns in the US

We provide evidence for the efficiency of lockdown policies in mitigating both the overall costs to the economy as well as the spread of COVID-19. The reason for this is that individuals engage in voluntary social distancing even in the absence of lockdowns, once the virus takes hold in their area. Hence, substantial economic costs are unavoidable, even when not locking down. Yet, the additional lockdown-induced social distancing plays an important role in preventing further medical costs. Indeed, for our estimates of the voluntary and mandated social distancing responses, all US states that imposed a lockdown would have incurred larger overall costs had they stayed open. Considering the correct counterfactual costs is therefore key in informing policy decisions during potential future waves of COVID-19.

 

Taleb: The Masks Masquerade

Incompetence and Errors in Reasoning Around Face Covering

Six errors: 1) missing the compounding effects of masks, 2) missing the nonlinearity of the probability of infection to viral exposures, 3) missing absence of evidence (of benefits of mask wearing) for evidence of absence (of benefits of mask wearing), 4) missing the point that people do not need governments to produce facial covering: they can make their own, 5) missing the compounding effects of statistical signals, 6) ignoring the Non-Aggression Principle by pseudolibertarians (masks are also to protect others from you; it’s a multiplicative process: every person you infect will infect others).

In fact masks (and faceshields) supplemented with constraints of superspreader events can save us trillions of dollars in future lockdowns (and lawsuits) and be potentially sufficient (under adequate compliance) to stem the pandemic. Bureaucrats do not like simple solutions.

 

A new study shows that mandatory mask wearing is the most effective measure during the Covid-19 epidemic:

Face Masks Considerably Reduce COVID-19 Cases in Germany: A Synthetic Control Method Approach

 

The Elevator Arises As The Latest Logjam In Getting Back To Work

 

 

Regular Related Fare:

Morgan Stanley Economists Double Down on V-Shape Global Recovery

 

OECD isn’t quite so confident

 


Incubation Phase: Gradually and then Suddenly.

Key points

1) The May jobs “shocker” was largely a reflection of CARES coverage of corporate payrolls.

2) The gap between Wall Street and Main Street appears similar to the “incubation phase” of other major downturns.

3) Federal support remains essential, but is best targeted toward preserving the “circular flow” of the economy by supporting the basic incomes of families and incentives for productive investment, limited to those actually experiencing economic damage.

4) After years of overborrowing to finance stock repurchases (partly to offset dilution from stock-based compensation), many corporations were overleveraged coming into this crisis. Bankruptcies are likely to increase, but the government can support packaged restructurings and bank purchase-and-assumption transactions without bailing out private investors, who agree to accept these risks in a free-enterprise system.

5) Fed purchases of uncollateralized corporate bonds violate FRA 13(3), CARES 4003(c)(3)(B), and potentially Article 1 Section 8 of the U.S. Constitution.

6) Projects that are enabled only by zero interest rates are most likely projects that are speculative and unproductive.

7) Improved market internals currently encourage an agnostic near-term outlook (though not a bullish one) despite several features that suggest the improvement is fragile.

8) Valuations are again near historic extremes.

9) Continued dispersion within the U.S. equity market suggests particular risk for richly valued large-cap stocks.


The scale of this crisis is unprecedented: now we need the radical thinking to address it

..Of course this is likely to be temporary. As a matter of fact, pandemics do always end, if not well. There will, then, be an eventual recovery from this position. But, to pretend that this will be any time soon is naive, in the extreme. As I have said since mid-March, and long before the government did, the economic costs of this pandemic are going to be substantial, and long-term.

In that case we are not going to get a V-shaped recovery, with a quick bounceback. We are, instead, going to see a fundamental change in the level of economic activity for some time to come. That is precisely why I do think radical thinking, including a Green New Deal and the processes of change implicit within it, is necessary now. It is why I also think we need to radically rethink our relationship with what is supposedly called government debt, which is why I have issued a myth buster on that issue this morning.

And yet many on the left seem to have no understanding on this. For them affordability is constrained. And debt repayment remains paramount. One of the reasons why I felt down in the last week was the consequence of exchanges with supposed progressive economists a week or so ago.

They were vehemently anti-MMT. This now appears to be a necessary sign of virility or acceptability in the left of centre think tank world. John Weeks appeared quite without shame in calling MMT a cult on Twitter yesterday.

The economists in question suggested that the public were right to be worried about debt, and that the goal should be to constrain it. There were issues of ‘sound finance’ involved, one said. Another described the ‘moral dimension‘ to  debt and suggested it a sign of failure. These narratives play straight into the hands of the right. It is as if they wished for austerity.

My belief that their comprehension of what debt really is, what it does, what its benefits are, and what it can do to deliver the economic transformation we require are exceptionally limited. But, I stress, these are people from the left, and I see the same attitudes in just about every left of centre think tank right now.

 

Stephanie Kelton: Learn To Love Trillion-Dollar Deficits

Our country’s myth about federal debt, explained.

 

 

Regular Fare:

"Losing The Bottom": Market Capitulates On The Idea That Normalization Is Ever Again Possible

 "with every new crisis problems have become deeper and more difficult to manage" which was to be expected in a world in which constant bailouts from central banks prevent a normal corrective process to occur as the imbalances and excesses continue to pile up resulting in ever greater shocks to the system, requiring ever greater bailouts, and even greater debt, i.e., borrowing from the future until, as Eric Peters, recently said "We Have Reached The Point Where The Entirety Of Future Prosperity Has Been Pulled To The Present."

 

The Risk of the “Bailout Of Everything”

The rise in bond defaults is a consequence of previous high leverage in a weakening operating income environment. This should not be a concern if creative destruction works to improve the economy, as inefficient companies are taken over by efficient ones and new investors re-structure challenged businesses to make them competitive. The big problem is that massive liquidity and low rates are perpetuating overcapacity and keeping an extraordinary amount of zombie firms alive.

 

Albert Edwards: We Are Transitioning From "The Ice Age" To "The Great Melt"

 

 

(not just) for the ESG crowd:

CarbonTracker: Decline and Fall: The Size & Vulnerability of the Fossil Fuel System

 

CO2 levels hit record high despite emissions dip from coronavirus

 

Is humanity doomed to wrestle over the planet’s thermostat?

An economic lab experiment reveals the complexities of governing solar geoengineering

 

Global Insect Collapse Driven By Industrial Farming, Says New 'Insect Atlas'

 

VW Launches In-Home Charging, Plans "Complete Charging Network" For Its New $33,000 ID3 EV 

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