After the fastest recession in U.S. history, the economic recovery may be fizzling

[Zorro]

United Airlines announced plans to lay off more than one-third of its 95,000 workers. Brooks Brothers, which first opened for business in 1818, filed for bankruptcy. And Bed Bath and Beyond said it will close 200 stores.

Welcome to the recovery.

If there were still hopes of a “V-shaped” comeback from the novel coronavirus shutdown, this past week should have put an end to them. The pandemic shock, which economists once assumed would be only a temporary business interruption, appears instead to be settling into a traditional, self-perpetuating recession.

When states and cities began closing most businesses in March, the idea was to smother the virus and buy time for the medical system to adapt. Jared Kushner, the president’s son-in-law and a senior White House adviser, spoke of hopes “that by July the country’s really rocking again.”

But without a uniform federal strategy, many governors rushed to reopen their economies before bringing the virus under control. Now states such as Florida, California, Texas and Arizona are setting daily records for coronavirus cases and more than 70 percent of the country has either paused or reversed reopening plans, according to Goldman Sachs.

After two surprisingly strong months, the economy could begin shedding jobs again this month and in August, Morgan Stanley warned Friday. Many small businesses that received forgivable government loans have exhausted their funds while some larger companies are starting to thin their payrolls in preparation for a longer-than-expected downturn.

https://www.washingtonpost.com/business/2020/07/11/after-fastest-recession-us-history-economic-recovery-may-be-fizzling/

[Laelth]

1. What recovery?

If there’s been one, I haven’t seen it.



-Laelth

[ChoppinBroccoli]

2. If There Was Any Recovery At All, These Re-Shut-Downs After Opening Too Soon Will Kill It

Republicans rolled the dice on a super-duper longshot gamble that re-opening the economy would have no resurgence of the virus, and they lost. Now all the States who opened too soon are headed for second shut-downs, and the economy will suffer for it. And then let's not forget about the second wave that will hit around October.

Guess when you spend 4 years doing nothing but actively working against the best interests of your own country and hoping a good economy will propel you to re-election, you're pretty well screwed when that economy goes south right before the election.

I think at this point, one of the most effective things we can do is to remind people that every economist worth his salt was predicting a 2020 recession for like a year BEFORE the virus hit, and the economy slowed every year of Trump's presidency. Because if I know how Republicans will try to spin things, and I think I do, they're going to try to say that the bad economy is the fault of the virus, not their awful policies.

[JI7]

3. What Recovery ?

[SoonerPride]

4. No healthy economy until we have a healthy country

They are focused on the wrong problem.

Of course.

[yonder]

5. Aren't we still in a developing recession with a phony "it could be worse" outlook?

My POV is that the foundation for an awful economic mess has been set in place by mismanagement, while we've been distracted by job call back numbers (not newly created jobs) and a non-crashing stock market. The markers seem to be there with a rising number of people unable to afford rent/mortgages and a dim employment picture. I hope I'm wrong.

[Wellstone ruled]

6. Here in Nevada,

that hurry up and kiss Sheldon Adelson's Ring just came back to bite us in the ass. All Bars not serving food in 7 Counties will be closed as of Midnight last night. Just can not imagine those thousands of Employees going through the Hassle of redoing their Unemployment Claims.

And after 51% of these Bar Patrons did not wear masks,well,get ready UMC cause we are going to have a mega Covid Party.

Yup,open it up and Kill the innocent.

As far as the Local economy goes,it is wrecked for many years to come. Next big blow will come at the end of August,six weeks away,when the Moratorium on Rentals and Home Foreclosures pops.

It is going to get butt ugly my friends. Afraid what we went through in 2008 is going to be a picnic compared to what is coming in October.

It is going to take a hell of a lot more than some Stimulus Scheme to save our ass this time around.

[GulfCoast66]

7. The crazy thing they are refusing to the only thing to keep us out of a depression.

Extend the $600 a week unemployment benefit.

It says a lot that they had rather lose in November than getting the working poor used to feeling economically secure for the first time in their life.