Stung by the failure of its $2.2-trillion rescue fund to reach enough small businesses, the U.S. Congress has added $484 billion in new money, including $310 targeted again to the Paycheck Protection Plan. Here’s what’s included: $250 to replenish the Paycheck Protection Program, or PPP, which is designed to cover businesses’ payroll costs and keep...
Category: TRENDS ON THE U.S. ECONOMIC FRONT
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STOCK MARKET MYTHS, MARKET REALITY
Better late than never, finally mainstream market analysts from brokerage firms to the International Monetary Fund (IMF) are parroting our trend forecast that the current economic crisis by far the worst since the Great Depression and perhaps even more disastrous in its impacts. But stock markets have gained more than 20 percent in value since...
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OIL: THE ECONOMIC INDICATOR
Oil prices bumped up last week by as much as 19 percent before falling yesterday, as Chinese demand began to grow again now that its’ factories and economy are reopening. That buoyed share prices in the oil and oil services sectors. Also, heightened tensions between the U.S. and Iran sharpened the risk of the Middle...
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BIT BY BIT OPENINGS WON’T JUICE ECONOMY
Across America, politicians are making up rules and doling out executive orders to resuscitate the dying economy that lack basic fundamentals relative to Main Street reality. Vermont is allowing farmers markets to reopen for mask-wearing customers. Georgia is throwing open the doors to tattoo parlors and bowling alleys. South Carolina has permitted stores to open...
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U.S. MARKETS
Despite the greatest economic lockdown in world history, the Dow Jones Industrial Average built on Friday’s gain of 260 points, adding another 358 points yesterday to close above the market makers 24,000 milestone at 24,133 on speculation that the broader economy is moving closer to reopening. The NASDAQ added 95 points, ending the day at...
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CRIME ON THE RISE DURING THE GREAT LOCKDOWN
From 16 March through 14 April, 57 percent more vehicle thefts were reported to New York City’s police department compared to the same period in 2019, the department said. Four other major crime categories showed increases during 2020’s first quarter: There were 25 percent more robberies Burglaries rose 22 percent Grand larcenies edged up 5.2...
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IMF WARNS OF MASSIVE NEW DEBT LOAD
Borrowing by governments and central banks to help national economies survive the worldwide business shutdown will push the global public debt load from its 2019 level of 69.4 percent of GDP to 85.3 in 2020, the International Monetary Fund has predicted. This calculation does not include new commercial or private debt taken on by businesses...
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GLOBAL RECESSION IN PROGRESS, IMF SAYS
The world’s economy is in a recession more severe than any global financial crisis since the Great Depression, says the International Monetary Fund. The lending agency has revised its 2020 forecast, now seeing the global economy contracting about 3 percent this year, dropping about $2.7 trillion from last year’s $90-trillion output. The 3-percent forecast far...
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LAYOFFS, BAILOUTS, AND BANKRUPTCIES
The current economic panic first took a large swath of low-wage jobs – fast-food workers, hotel maids, and retail clerks. Now the layoffs are reaching higher. Businesses that sent office workers home to continue their jobs are now furloughing them as business disappears. Corporate lawyers reportedly are shrinking in numbers. Health care employees not on...
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HIGHER EDUCATION GOING LOWER
As the pandemic spreads, the aftermath is forcing colleges to face a future that could be markedly different from the immediate past. High tuition costs, the prospect of lifelong debt, and an uncertain job market already had many students rethinking their choices in post-secondary education, wondering if college is worth the cost. Now the economic...