https://www.wsj.com/articles/a-week-of-coronavirus-pain-and-progress-51585245116?mod=opinion_lead_pos1
As the number of Americans infected with the coronavirus surges, and hospitals are besieged, it can appear that America is losing the pandemic war. But in important ways the U.S. is better off at the end of March than it was a week ago, and it’s worth tracking the progress as well as the pain.
The most important good news this week is the ebbing panic in financial markets. The Federal Reserve unveiled new facilities to provide liquidity to corners of the market where anxiety had shut down trades or threatened a run. Think money-market and municipal-bond funds. The Senate bill that the House passed Friday adds $454 billion for Treasury that can backstop further Fed actions if they’re needed.
Our market sources say trading has calmed down and most sellers can find buyers for assets to raise cash when they need it. If you think this doesn’t matter to the real economy, imagine a cascade of defaults that become bankruptcies that become a banking panic. At least for now the panic toward a deflationary spiral has stopped. The Fed and the Senate legislation sparked this week’s modest rally in equities.