40% Of US Opening Halted Or Reversed, Mass Layoff’s Accelerate For The 2nd Time, Restaurants Closed (Video)
40% Of US Opening Halted Or Reversed, Mass Layoff’s Accelerate For The 2nd Time, Restaurants Closed Video
Just when many retail investors were expecting to see this V-shaped recovery comes a thousand black swans to shatter expectations. The economy isn’t finished shutting down yet and in fact the mass re-layoffs have begun to accelerate and could change a V-shaped recovery into a flatline. California has increased the total to 18 counties where restaurants bars and other businesses are re-closed leaving many who were just rehired filing for unemployment once again. The same story across several states in fact and it’s getting hard to track as every day more and more businesses are being added to the list of sectors to close.
This may be a time to rethink the investments in cruise lines and airlines as it doesn’t look like we’re having a recovery at all. Restaurants have been crushed and there was an estimated 25% of US restaurants to close permanently due to the initial hock to demand and demand for dine-in restaurants has collapsed in recent weeks after staging an amazing recovery to near unchanged. Now that many of these businesses will be reclosed and their employees re-laid off we could see a huge spike in unemployment and a major drop in GDP dashing any hopes of a V-shaped recovery. If we fall from already historic lows in GDP and record unemployment we could see a blow that we may never recover from. But I guess we knew that was coming.