AZnomicsThe COVID Crash
February–March 2020
S&P 500 peak at 3,386. Economy strong. Unemployment at 50-year low. COVID mostly an "overseas problem."
🔍 Why Did This Happen?
Governments worldwide ordered businesses closed to stop virus spread. Consumer spending collapsed overnight. Supply chains broke. 22 million jobs vanished in 6 weeks in the U.S. alone.
As COVID crushed oil demand, Saudi Arabia and Russia couldn't agree on production cuts — so Saudi Arabia flooded the market with cheap oil instead. Oil prices crashed 65%, hitting energy companies, banks, and entire national economies.
🔄 What Happened Next
Policy changes, recovery milestones, and lasting lessons
Largest economic rescue in U.S. history: direct payments, expanded unemployment, PPP loans for small businesses, and aid to states and hospitals.
Federal Reserve commits to buying unlimited bonds — essentially saying it will prevent a credit crisis at any cost. First time "unlimited" was ever used.
Fastest vaccine development in history — down from ~10 years average. Pfizer and Moderna's mRNA technology proved the power of concentrated scientific investment.
U.S. recovered most lost jobs within 18 months — versus 6 years after 2008. Direct stimulus to workers (not just banks) made the key difference.
Massive stimulus + supply chain disruption + pent-up demand = 9% inflation — highest since 1981. The Fed raised rates aggressively. Nothing is free.