The fund giant cited is closing the funds because there aren't enough "munis" markets in the MMFs' targeted states.

Some 650,000 larger entities have taken about 75% of the loan money allocated through June 30.

The United States' economy is expected to contract 8% in 2020 vs. an earlier estimate of 5.9%.

"There's not going to be any desire on the Republican side to bail out state pensions by borrowing money," he said.

"It looks like a depression scenario," according to the CEO of DoubleLine Capital.

It also pledged to buy some $700 billion in Treasury and mortgage bonds in response to fallout from the coronavirus.

Dividend stocks are "the new bonds" and long-term bonds are "the new gold," the Wharton professor says.