Prediction: “back to normalcy” will be massively politicized.

This moment is the single best opportunity for states, counties and cities to solve their financial problems and get EVERY unfunded liability paid for by the federal government...

https://www.bloomberg.com/amp/news/articles/2020-04-02/states-cities-already-cutting-jobs-with-financial-toll-mounting?__twitter_impression=true

What does this mean: that the “return to normalcy” will get very delayed.

The incentives are insane now for state and local leaders to delay a back to normalcy, to extend their financial hardship and come to the Federal government for help.

It makes no sense, from their game theory, to do anything else. Otherwise they face massive revenue declines, underfunded liabilities which will explode, an erosion in social services and increased local taxes...a recipe for never getting elected again.

After you bailout Carnival Cruiselines and United Airlines, how can you not bailout Dallas, Miami and Pittsburgh. Does seem credible...

If the Fed will support all kinds of junk bonds from crappy companies, how can you not help NYC, Detroit and Houston?

This news has not need reflected in the market and is what helps the move downwards...