Given the US government's continuing catastrophic response to the coronavirus virus resulting in severe economic contraction then one would assume that the crowing from the rooftops perma bear deflationistas would finally be proven right with their decade long perma bear messages of a US housing market crash finally being fulfilled. So is that what happened? Were the perma bears finally proven right by chance, a black swan event courtesy of a leak from a wuhan bio lab?

Well in economic terms the US as is the case for all western nations has come under severe economic pressures following the panic lockdown responses to an out of control pandemic with further economic pain expected during Q1 2021 in a race against time to deliver vaccines into american arms.

The recovery in US employment has started to flat line as the US heads into new lockdown's as the pandemic Wave 4 starts to materialize, thus expect US unemployment to increase though to nowhere near the extent of the first wave.

Whilst GDP recovery has proven more robust which after Q2 contraction of 31.4% with overall expectations for US GDP to end 2020 down between 2% to 3%. Whilst GDP is expected to take a further hit in Q1 that could shave off 1% of GDP expectorations for 2021.

So the US economy in GDP terms is proving far more resilient than most western nations due to stimulus bailouts and weaker lockdown measures than elsewhere.