Have the feds put half of America’s small firms out of business?

[Bill Bonner’s Diary]( Have the Feds Put Half of America’s Small Firms Out of Business? By Bill Bonner Thursday, May 7, 2020 – Week 8 of the Quarantine [Bill Bonner] SAN MARTIN, ARGENTINA – The authorities may or may not have “flattened the curve” of the C-virus. But they’ve surely squashed the U.S. economy. Today, we scrape it up off the pavement to see how flat it is. Yahoo! Finance reported this morning that… Another 3 million Americans are expected to have filed for unemployment benefits during the week ending May 2, following 3.839 million initial jobless claims in the prior week. So far over the past six weeks, more than 30 million Americans have filed unemployment insurance claims. So far, more people have lost their jobs during this pandemic than in all the recessions since World War II – put together. Recommended Link [Urgent Biotech BUY Alert]( [image]( The FDA fast-tracked the biggest antibiotic breakthrough in 30 years. When approved, this new drug could be a life-saver for millions of people. And it could generate a major windfall for early investors. Shares of this tiny biotech could spike 12x in just hours. Time is of the essence… [Click here]( -- Turning Off the Economy And now, the press reports that those “temporary” job losses are here to stay. Here’s Bloomberg: Plenty of layoffs that just a month ago were labeled “temporary” are now tagged “indefinite” or “permanent.” Alongside announcements of sweeping staff cuts by major employers such as Boeing Co. and U.S. Steel Corp. and the accelerating pace of downsizing in brick-and-mortar retailing, such notices are a sign that even as businesses continue to hope for a speedy recovery, they are starting to plan for a slow one. The new permanent layoffs are hitting a wide swath of the economy both geographically and sectorally. Uber Technologies Inc. on Wednesday became the latest major company to announce long-term layoffs, saying it would be eliminating 3,700 jobs, or 14% of its staff worldwide. A day earlier, Airbnb Inc. said it was cutting 25% of its workforce, or about 1,900 people worldwide. [In an era of disease, this “new cure” could be one of the most powerful medical technologies of our time.]( Turning off the economy is a bit like shutting down the engines on a transatlantic flight. For a long time, the plane stays in the air. Everything is suddenly quiet. Passengers don’t know what to think. Up in business class, investors look to buy the dip… and expect the pilot to pour on the fuel and gain altitude at any minute. Back in economy, though, people aren’t so sure. A few look out the window and see the ground getter closer. Recommended Link [Massive disruption in Washington, lawmakers freaking out]( [ad_img]( A new, competing financial system is taking root… This could be the biggest disruption to the U.S. dollar average Americans have seen in a century… And the technology behind it will change the world in ways you can’t imagine. [Click here for more info]( No More Paychecks Even before the virus struck, some 100 million Americans were barely able to stay aloft. They were said to be living “paycheck to paycheck.” Then, the paychecks stopped. What are they to do now? No more casual trips to the mall. No more family dinners at TGI Fridays. No more filling up the tank to visit relatives or go to a football game. They’re not buying cars, either; auto sales have dropped to 50-year lows. And their cars are being repossessed. Used car prices have collapsed. [Amazing 17-second Video Reveals Key to Tech Fortune…]( They’re not going anywhere; gasoline consumption, too, is back to levels not seen since the Nixon administration. Airport traffic has dropped by 95%. Airbnb bookings are down some 80% in the last 90 days. And they’re not buying much of anything; consumer spending – the jet fuel of GDP – has dropped more than ever before in history. According to The New York Times, a third of renters failed to pay their rent in the first week of April. And so far, 4 million people aren’t paying their mortgages. Several states have already issued moratoria on evictions. Few mortgage companies are going to want to foreclose, anyway. After all, what would they do with the foreclosed property? Recommended Link [COVID-19: The Pin That Burst the Bubble]( [image]( It’s no surprise that coronavirus has created a worldwide pandemic, as we see markets around the world hitting record-breaking lows. But what you might not know is that Bill Bonner and Dan Denning have been tracking the debt bubble for more than 20 years and were prepared for it to burst. (Actually, Bill has been warning his readers about it for many years.) The coronavirus was just the nail in the coffin… If you were following our advice, you would have been prepared for this situation… but the good news is it’s not too late to [prepare yourself now](. (You might even be able to profit.) [Click here now to read Bill’s urgent briefing]( -- More Scared Than 2008 And how about the business world? Here are a few headlines from Bloomberg yesterday: Hundreds of Earnings Calls Show Companies Are More Scared Than 2008 BlackRock’s Fink Delivers Grim Outlook With Tax Hikes for Corporate America Gloom Grips U.S. Small Businesses, With 52% Predicting Failure Whoa! Have the feds put half of America’s small firms out of business? Bloomberg continues: Covid-19 could shutter most American small businesses. That’s according to a new survey from the Society for Human Resource Management which found that 52% expect to be out of business within six months. The survey of 375 firms was conducted between April 15-21 and doesn’t account for improved business conditions as some U.S. states reopen this month. Economist Gary Shilling puts this into perspective: This pandemic is likely to be the most disruptive financial and social event since World War II, with equally long-lasting consequences. Many will no doubt restrain spending in future years to rebuild savings, especially since the crisis caught them at a time of high debts and short financial reserves. A Fed study found that 40% don’t have enough cash on hand to cover an unexpected $400 expense. Also, the $600 extra unemployment checks on top of state unemployment benefits may induce some never to return to work, especially since those payments will probably be continued into 2021. Bumpy Landing As for April’s stock market rally, Mr. Shilling added this: Don’t be fooled by the recent rebound in stocks; the investment scene is beginning to resemble the 1929 market crash and the early 1930s Great Depression… This looks like a bear market rally, similar to that in 1929-1930, with an additional 30% to 40% drop in stocks to come as the deep global recession stretches into 2021… So far, the big bird is still gliding. But the passengers are getting nervous. What happens when they try to land this thing? We’ll soon find out. Regards, [signature] Bill Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com. MAILBAG Dear Readers sympathize with [Bill’s plight]( in Argentina, after the [originarios]( land and property](... Have you thought about getting some working dogs to protect your calves? I suggest that you read up on the Akbash dogs, which are large, powerful guardian dogs used in Turkey to protect the livestock from wolves. (They are equipped by their masters with spiked collars to protect their own throats.) While they are very protective of the animals in their care, they love – and are even more protective of – children, which is perhaps very important since you probably have families working the cattle. The Israelis also use these dogs in the Golan Heights to protect their cattle. – Giner C. My sympathies for the attack on your property that caused the destruction of valuable farm components, while wasting such a lot of your time and shattering your peace of mind. In a civilized world, an innocent party like you would be protected with utmost diligence, while the culprits would be apprehended and ordered to recompense for the loss they inflicted. Posthaste! Sadly we live in a society where the burden of investigating the loss, followed by supplying evidence against the guilty, falls on the shoulders of the victim. On top of this, slow-as-molasses process of the authorities just add insult to injury. Criminals have taken advantage of this weakness; whether it was Hitler, or those monsters that came before him and those that followed, including the Swamp. This is, by no means, something limited to particular cultures or countries because it is universal. I am, myself, facing such a miscreant from Europe who is thrashing around the courts with trumped-up default charges against me in order to grab my property. Such a society does not deserve to exist. – Hussein D. Meanwhile, another Dear Reader living in Panama shares her C-virus reality... I LOVE Bill’s stories! Interesting, educational, and entertaining. Of course, I am an expat in the highlands of Panama, so... We have a big garden, and my new chicken coop is coming tomorrow! When the pen fence gets done, we get baby chicks! Already have friends asking if they can buy eggs! I saw this coming in January, started preparing first of February. I just don’t have to stand in the lines at the stores here. Thank goodness. Government here is the same as much elsewhere... only grocery stores, pharmacies, and gas stations open. Women have two hours Monday, Wednesday, and Friday to shop, and men have two hours Tuesday, Thursday, and Saturday two hours (unless the government takes Saturdays away) according to ID number. Everyone stays home Sunday. No alcohol sales. Stores normally have someone at the door checking for masks, and controlling numbers in the store. This made making a chicken coop harder... same for any other project you want to do at home... but mostly possible. Building supplies are running out, harder to get. We live in the “breadbasket of Panama,” but very few people are working. Vegetables in the greenhouses are shriveling up. Indigenous and other poor are going hungry. Government and gringo charities here trying to fill the gap, but for how long? Small farmers are still supplying the local markets, thank goodness. I have made friends with the local indigenous, and hopefully, we will continue to work together. – Charlotte L. How long might governments and charities be able to “fill the gap” in their respective countries, like Charlotte mentions? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… [White House Briefing; the U.S. economy will “pop” again soon]( Even though America may be facing its greatest challenge with the coronavirus… President Trump is predicting the U.S. economy will “pop” again soon, if Americans take steps to stifle the disease. “One day, we’re going to be standing up here, saying, ‘We won.’ I think we’re going to win faster than people think.” President Trump promised to Make America Great Again… And he will. The American Golden Age is just beginning. Years from now, they’ll write about this era in the history books. About how American technology and culture led the world. As soon as it does, the tech market will soar – potentially tripling from here. Tech legend Jeff Brown, who called the NVIDIA and AMD rise before the last tech boom, believes something shocking will happen in 2020. Because if you think what Trump’s done for the stock market in his first three years is amazing, you ain’t seen nothing yet. Stock market profits will skyrocket. Specifically in the industry where Jeff Brown has made his fortune: Technology. If you’re retired or saving for retirement, it’s important that you pay attention to this story. [Check out what Jeff has to say in this exclusive video.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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