A couple days ago, 1.2 million Americans filed for unemployment. Bad economic news! But, what did the Stock Market do? It went up! The United States leads the world in positive coronavirus cases and deaths (over 1000 per day!) Yet, stocks continue to rise (and gold, too!). The Stock Market masks the true situation in our country.
The worlds of Main Street and Wall Street live very different realities. Millions of Americans are unemployed and the Unemployment Rate is 10.2%. Their Federal Stimulus benefits have expired. Many millions–including children–will find themselves homeless in the days ahead. Meanwhile, the NASDAQ has hit new highs. The popular FAANG (Facebook, Amazon, Apple, Netflix, and Google) group of stocks zoom upward. What’s going on here???
There’s a disconnect between the Economy for middle and lower class Americans, and the Economy for the 1%. The Rich can shift assets around and make money. Middle class and lower class Americans are stuck. While the Rich have options like “working” and living anywhere they want, everyone else doesn’t. The Coronavirus Pandemic is an inconvenience to the Rich. It’s devastating for the rest of us. And, it also helps that the Federal Reserve is spending trillions to keep the Stock Market propped up.
So, what to do? First, limit your spending. The Coronavirus Pandemic is already suppressing consumer spending. This is NOT the time to buy a Big Ticket Item. Prepare for the Worst: stockpile some bottled water, canned food, and your medications. Things could get Very Ugly when the Second Surge of the Coronavirus hits in October! Avoid taking risks. How are you doing during these dire times?
We’ve been ok so far. John is working from home as is one of our daughters. Our other two daughters both have jobs. I still have a job with the school district—am very concerned about what will happen when students finally return after Labor Day. Schools were never designed for social distancing, so I predict massive spikes in covid cases once the bulk of our public schools are open. “You don’t need a weatherman to know which way the wind blows,” etc.
Deb, we all have to play the Long Game with the Coronavirus Pandemic and the health/economic repercussions. Diane and I are concerned about our friends who are still teaching (although a couple have opted for Retirement rather than go back in September). You know how lax students will be about masks and social distancing and hand washing. Some of the schools in the South that have opened ran to problems already! Stay safe!
I was horrified to see a pix of a georgia school (jr high or high, not sure which) very crowded hallway, with few masks. Of course the school took some very prompt action TO SUSPEND THE STUDENT WHO POSTED THE PICTURE.
Of Course.
Everywhere that has opened schools has seen a spike.
But Trump is coming for your children and your USPS. So you will theoretically vote for him, at a polling place.
And there’s always been some distance between stock market and the economy for most people…something tv and too much of the res of “news” seems unwilling to comprehend.
Todd, you are right on the money about the distance between the Stock Market and the Economy. The Stock Market is a vehicle for the Rich to consolidate their assets and then to increase them. The Federal Reserve’s actions protect the Stock Market from the Coronavirus Pandemic as much as The Fed can.
Sometimes I feel like we’re in a bubble like the NBA players in Orlando.
We only go out to run errands for the most part – first was the grocery (still #1), and we’ve added in going to restaurants to pick up food, the hair and nail salons for Jackie, occasional doctor’s appointments, and now the library has been added for pickups. Also, New York has beaten this down unlike most of the country, The state is still around 1% positive on tests, there is a tracing protocol, the large majority seems to be wearing masks and following sensible behavior, and we always have Cuomo on top of things doing exactly what Trump should be doing but never has – keeping us informed daily, telling the truth about the situation and what we need to do to keep safe.
But even though our accounts are going up, I have no explanation of the stock market. George is our expert. We are spending a lot less and we are OK for now.
Stay safe!
Jeff, the Fed’s massive spending is keeping the Stock Market from cratering. But, the Fed can only do so much. Congress needs to pass another Stimulus Package…soon! Living in a Bubble is better than living in an ICU.
Yes, we are very concerned for Deb once schools open – and the same goes for teachers here when they have to go back after Labor Day. Things are way better here than in Georgia and Texas and Arizona and Florida and other “Idiot Governor” states, but I have no doubt that, just like Major League Baseball, there will be big outbreaks and frequent closures.
Jeff, Western NY schools are going to open, but some are doing a lot of online instruction with the students only coming to school a couple days a week. On the other hand, the Catholic Schools in our area are offering 5-day in-class instruction. And, their enrollments are up!
Cannot stockpile medicines. I can only have a 30 or 90 day supply with my prescription plan. Canned goods-do you anticipate a loss of electricity? In that case, I would have to eat food unheated. Some of these choices leave death the better option. I almost prefer it to covid-19.
Almost all Michigan schools have gone to online. I think NY is making a mistake not to. Hate to see it return to epicenter status.
Patti, it’s time to Hope for the best, but plan for the worst. I’m expecting Social Unrest as millions of people without jobs (and maybe without food) get desperate. Utilities might be disrupted. Diane and I have three friendly policemen living on our street. I’m hoping that’s enough protection to keep us safe when and if the situation turns dire.
P just a suggestion, but contact your pharmacist and say you lost your meds, and get another. (say you left the bag on top of the car, and drove off or something) You will probably have to pay more, but you’ll have a cushion.
Not sure how much leeway he has but will check. Thanks!
They just had Ali Velshi talking about the record stock market highs on MSNBC and how the rich keep getting richer, how the system is rigged in their favor, how when millions lose their homes the rich will buy them at bargain prices, how low interest rates have made the market the only game in town, etc.
Jeff, Ali Velshi knows what he’s talking about. With ultra-low interest rates, the Rich are buying up Real Estate and making millions. Meanwhile, millions of unemployed workers and their families face eviction and homelessness. It will take years to fix these problems!
The stock market just points to how dangerous the current state of the economy is. As with most economic indicators, it does not tell the real story. Small businesses are at the heart of the country, not the large conglomerates. Many of the large businesses that comprise the stock market indexes can vanish as they are bought out by the larger sharks, only to be replaced by newer entrants to the indexes — this rotation seems to serve only the top dogs, while the little guy gets nothing. The recent job gains do not tell us that most of these jobs are low-wage, and dead-end, with little to no benefits. Thus families with three (or four) jobs are struggling to survive. As prices go up there are few increases in income to offset them for the average American. The Administration is not interested in the American people, only the American dollar. The final months of 2020 will be devastating for millions of people who will be losing their homes, their health, and their savings. Our economy is being run by a man who thinks he has a very big uh-brain whose economic advisors include 1) a former cable host who eschews reality, 2) a Secretary of the Treasury whose claims to fame was as the “foreclosure king,” evicting families caught up in the Bush/Cheney 2008 economic mess and producing the film SUICIDE SQUAD, and 3) the aforesaid very big uh-brain and its “hunches.” Ptah! I won’t even mention slimy Mitch and his cohorts.
Very hard times are ahead because of COVID19, government greed and incompetence, and the corporate money that rules the country. I can see no easy way out of it. Our only chance is to lessen the damage by voting the bastards out in November and give the government to the grown-ups. Even then, it will be a very painful climb out of this mess.
Jerry, I agree completely with your analysis. Yesterday, the clown and top donor to the Trump Campaign, Louis DeJoy, who is running (and ruining) the Postal Service, fired 23 top USPS officials. The strategy is clear: destroy the Postal Service on the eve of the November 2020 Presidential Election when Absentee Ballots and mail-in voting will be high because of the Coronavirus. More chaos!
Dejoy has over $30 million investing in post office competitors, no wonder the orange one appointed him to destroy the postal service
George, your comments are very near what my gun nut cousin was saying in March. He’s stockpiled gold and silver (he’s been doing that for a while) and suggested I do so, if I could find it – apparently back then many people were doing that. He also suggested I have extra cash on hand, and wanted to give me a gun.
I feel for everyone in this economy. I feel blessed (and for once happy to be old enough to be retired). With the gop dragging their heels on a new stimulus package, and the orange turd wanting to include funds for a new fbi building, when/if it comes it will be too little, too late for many.
San Diego is extending eviction protection plans, which is nice for renters, but ignores the small landlords who still have to pay mortgages. I’m lucky, because I own my house free and clear, and have low prop 13 property taxes ($600 per year). I have savings that I hope will be adequate for the rest of my life. I owe no $$, which is a blessing these days. But if the turd and the GOP get their way and gut social security and medicare, I’ll be hurting. I do have a supply of water, canned food and my Rx. My mom always told me to stockpile necessities when they were on sale, so I have plenty of tp, soap, shampoo, laundry detergent.
If Biden doesn’t win in Nov, this country will be devastated. I’ve been keeping track of my stimulus $$ and the last $300 will go to the Biden campaign. ( I’ve used it, like many people, to tip service (hair, nails, paper delivery, tip jars) and get carry out food from small restaurants.
I would love to see an interviewer ask the turd just how cruise lines (not registered in the US to avoid taxes), publicly traded companies, and large corporations could qualify for the small business relief. My hair dresser is a one woman shop and could get no aid, but the lakers could??? He needs to be drilled over and over again on issues like that. off the soap box now
Maggie, I’m hoping none of the possible disasters–riots, surging coronavirus and flu deaths, economic hardships–occur, but I’m suggesting everyone ready themselves Just In Case. I’m not sure the United States could survive another 4 years of Trump and his evil minions. Our dysfunctional Government and Economy come closer to the brink of collapse every day.
We’re hunkered down, and make one errand run a week, which may include food from a restaurant. My pension plus Barbara’s Social Security is enough to pay the bills and put some aside, but we’ve had several big expenses in the last two years: HVAC, roof, gutters, and some smaller ones: glasses, auto repair, medical. Thus our savings isn’t growing much, but should from here out.
There’s nothing we can do, other than VOTE, about the political situation, so I do my best to carry on as normally as I can. Barbara watches a lot of news broadcasts and fills me in. I’m amazed at the insanity in D.C.
Rick, the situation in Washington, D.C. is perilous! Trump is destroying the USPS in an effort to surpress the November mail-in vote. The Russians continue to use Social Media to attack Biden and the Democrats with conspiracy theories. Other hostile countries sow seeds of doubt and fear about the coronavirus and fuel anti-vaccination groups to sicken our country and damage it.
It’s an ominous future that you are describing – and of course if the USA get hurt, so will the rest of the world too.
I’m just hoping that you are too pessimistic and that a new president and a new government will handle the crisis better.
I really can count myself lucky that (like most of you …) I had the chance to live in a developing world, visiting the USA (and other countries too of course) more than 20 times and enjoying every day of it.
Since the last time I visited the USA 9 years ago so much has happened – I follow the developments (or rather undevelopments) via the NYT, WaPo, the Atlantic the New Yorker (sometimes very funny – but often gallows humour) and I’m kind of shocked by things like the opioid crisis and the “handling” of it by the drug industry and the health system. When I read that life expectancy in the USA has stagnated or even shrunk over the last years …
I wish you all the very best!
Wolf, the United States faces a series of problems–coronavirus, economic devastation, racial injustice, and political chaos–with plenty of division and rancor to deal with. I try not to be pessimistic–I like to think I’m Realistic–but at the moment the U.S. has a leadership vacuum.