Having a Possible Treatment Against Covid-19, Won't Save the US

As stated in CNBC, there are more signs that remdesivir may be effective ameliorating the effects of the virus and shortening recovery time. The market is expected to rally about 800 points tomorrow because of it. Still, the existence of an effective treatment, if confirmed, won't save the US easily from recession because people will still need to pay for the medication, hospitalization by probably getting themselves into debt in these uncertain times. That wouldn't stimulate a fast recovery. Governments would have to subside most of these treatments in order to seize it as a start for some kind of economic recovery.

Quarantines will probably take about a year or more, according to some studies on the subject, until a vaccine is expected to be made and manufactured in record time. In addition, if quarantines are lifted before the availability of a vaccine, the disease may keep spreading and form a new peaks. Goldman and Sachs predicts that the coming recession will be four times worse than 2008, and the IMF has made similar statements too.

Now, none of the predictions and analysis stated has considered direct pandemic effects beyond 2020. Quarantines may have to be kept till mid 2021, and that would surely hit the economy hard, and if the restrictions are lifted beforehand, repercussions could turn even worse, according to precedents on economic recovery during the Spanish Flu pandemic. It would be even possible, that we could experience a depression worse than 1929's. Many estimates put future US unemployment from 30% through 40%.

There is an indication that the virus may 'reactivate' in otherwise deemed as cured patients. As another important fact, human immunity against coronaviruses is not permanent, keep that in mind.

Update 4/17/2020: the signs that remdesivir was effective in a Chicago hospital is not accurate, there was no control group and there has not been analysis of the data. It is possible that remdesivir could prompt chloroquine-like optimism, which is not based on actual scientific data and conclusions but mere speculation. Again, Wall Street wants a silver lining where there in none, they are chasing a white whale.