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Airlines - potential of 40,000 jobs being cut (A new round of loans just happened, but it might not prevent the job reductions)
Still think economic lockdowns & panic are a good idea? We need to get the economy moving and get people spending money, otherwise 2021 doesn't look good. Of course, the feds can always step in again, and maybe they will, but how much longer can this continue?
Airlines - potential of 40,000 jobs being cut (A new round of loans just happened, but it might not prevent the job reductions)
Still think economic lockdowns & panic are a good idea? We need to get the economy moving and get people spending money, otherwise 2021 doesn't look good. Of course, the feds can always step in again, and maybe they will, but how much longer can this continue?
I don't think anyone should be surprised by job cuts from these three companies, given that there's simply no visitors to theme parks, no one is flying, and oil demand is low and supply remains fairly high. These sectors are in weak parts of the economy right now, and will likely remain weak for some time.
For what it's worth, the sector I'm in (industrial distribution) is busy as hell. We support mainly manufacturing and infrastructure like utilities, waste water, etc, and we're crazy busy. My company is still not hiring, but we got through with only minor furloughs, and sales are ramping back up fast.
At this point a lot of this pain isn't because of lockdowns, it's from people choosing not to engage in certain activities. The government isn't prohibiting me from driving to Disney World and enjoying the parks or going to the airport and flying across the country. I just don't want to. Same with restaurant dining and lots of other things that I choose not to do, not because I'm not allowed.
I don't think anyone should be surprised by job cuts from these three companies, given that there's simply no visitors to theme parks, no one is flying, and oil demand is low and supply remains fairly high. These sectors are in weak parts of the economy right now, and will likely remain weak for some time.
For what it's worth, the sector I'm in (industrial distribution) is busy as hell. We support mainly manufacturing and infrastructure like utilities, waste water, etc, and we're crazy busy. My company is still not hiring, but we got through with only minor furloughs, and sales are ramping back up fast.
Same for the company I worked for ..being in industrial electrical supply distribution has them very busy
Fork in the road time — more stimulus/bailouts, or let the chips fall. The MMT fans will say it’s time to inject more funds into these critical service industries, while free market economists will say they need to be part of creative destruction that replaces their failed business models with something new.
As I pointed out in a few threads , we are going to see the job number improve before falling off a cliff.
Large employers have been manipulating the numbers to get around the 60 day warning that needs to be given when workers go from furloughed to terminated after 6 months of furlough
Just enough Workers are being brought back compared to terminations so another 60 Days warning does not have to be given.
Once those furloughed are terminated they will follow up terminating those brought back
Fork in the road time — more stimulus/bailouts, or let the chips fall.
Or, end the lock downs.
If x% of the population is forced to stop working, and x% less is produced, x% less will be consumed. No amount of printing money can change that. The Fed can stop the monetary system from grinding to a halt and causing even bigger problems, but they can't stop peoples' standard of living from going down, only ending lock downs and getting back to work can do that.
If x% of the population is forced to stop working, and x% less is produced, x% less will be consumed. No amount of printing money can change that. The Fed can stop the monetary system from grinding to a halt and causing even bigger problems, but they can't stop peoples' standard of living from going down, only ending lock downs and getting back to work can do that.
GDP fell by 31% last quarter. A look at the numbers shows why:
Personal Consumption: -24.01%
Fixed Investment: -5.27%
Private Inventories: -3.50%
Net Exports: 0.62%
Government consumption: 0.77%.
People (aka consumers) aren’t spending money. Why? Because they either don’t have any money or they are afraid to spend it and would rather keep it in reserve. This is hugely deflationary and IMO ending the “lockdowns” will only make a small difference in the average person’s attitude about the future.
GDP fell by 31% last quarter. A look at the numbers shows why:
Personal Consumption: -24.01%
Fixed Investment: -5.27%
Private Inventories: -3.50%
Net Exports: 0.62%
Government consumption: 0.77%.
People (aka consumers) aren’t spending money. Why? Because they either don’t have any money or they are afraid to spend it and would rather keep it in reserve. This is hugely deflationary and IMO ending the “lockdowns” will only make a small difference in the average person’s attitude about the future.
Actually many were spending more than they should have because they were furloughed and had paid benefits and jobs to go back to .
But by law furloughs end at the six month date ...now reality will hit that there is no job to go back to and paid benefits stop like healthcare ,so spending is going to take another hit
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