Two months ago, St Louis Fed president James Bullard triggered a market plunge when he predicted that unemployment may soar to 30% and GDP plunge by an unprecedented 50%, vastly eclipsing the collapse observed during the Great Depression. Sure enough, moments ago the Atlanta Fed's closely followed GDPNow tracker confirmed this worst case scenario, when the latest model estimate for real GDP growth in the second quarter of 2020 crashed to -51.2% on May 29, down from -40.4% on May 28, which would be the biggest drop on record. How did the US just lose 10% (annualized) in GDP growth in 1 day? Here is the explanation: ... (full story)