investmentwatchblog--2020-06-04--GEORGE KORDA ON THE “SYSTEMIC RACISM” OF DEMOCRATS’ MONOPOLY-RULE CITIES:

Are we being honest about who is to blame for systemic racism ?
Minneapolis , Minn. has been under Democratic control since 1978 .
Chicago has been under Democratic control for 89 years ; its present mayor is a black woman .
Philadelphia has had Democratic mayors for 68 years ; three of its last five mayors have been black men .
Six of the last seven Atlanta , Ga. , mayoral administrations were led by black Democratic mayors , and the present mayor is a black woman .
A city runs its police department and other services ; therefore @ @ @ @ @ @ @ systemic racism ’ in these organizations , why hasn ’ t it been corrected over so many years under Democratic leaders ?
Why aren ’ t these cities garden spots of racial tolerance , understanding , and virtue ?
Plus : “ Unfortunately , in too many cases when people say they want an open and honest discussion about race in America , what they mean is they want an open and honest discussion only about what they say is wrong with people who aren ’ t them .
When people talk about @ @ @ @ @ @ @ , if they ’ re not willing to talk about the systems run – often for generations by the political party or politicians they support – they aren ’ t interested in an open and honest conversation ; instead , they want only to use the issue as a club against people who aren ’ t them .
”

Are we being honest about who is to blame for systemic racism?
Minneapolis, Minn. has been under Democratic control since 1978. Chicago has been under Democratic control for 89 years; its present mayor is a black woman. Philadelphia has had Democratic mayors for 68 years; three of its last five mayors have been black men. Six of the last seven Atlanta, Ga., mayoral administrations were led by black Democratic mayors, and the present mayor is a black woman. A city runs its police department and other services; therefore, if there is so much ‘systemic racism’ in these organizations, why hasn’t it been corrected over so many years under Democratic leaders? Why aren’t these cities garden spots of racial tolerance, understanding, and virtue?
Because tolerance, understanding, and virtue don’t promote Democratic power.
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Plus: “Unfortunately, in too many cases when people say they want an open and honest discussion about race in America, what they mean is they want an open and honest discussion only about what they say is wrong with people who aren’t them. When people talk about the need to deal with systemic racism, if they’re not willing to talk about the systems run – often for generations by the political party or politicians they support – they aren’t interested in an open and honest conversation; instead, they want only to use the issue as a club against people who aren’t them.”
h/t GR


investmentwatchblog--2020-06-04--HERE WE GO: Fauci Suggests A Coronavirus Vaccine Would Work For ONLY 80 DAYS (in some People) – New

HERE WE GO: Fauci Suggests A Coronavirus Vaccine Would Work For ONLY 80 DAYS (in some People) – New Vaccine every Year

Fauci says he ’ s optimistic about coronavirus vaccine protection , but concerned about how long that protection will last @ @ @ @ @ at the duration of protection when you recover from one of the several benign coronaviruses @ @ @ @ @ , the durability of infection is only measured in a year or less as opposed @ @ @ @ @ you can get 15 to 20 years of protection , ” he said .
He @ @ @ @ @ work for more than a year .
Dr. Greg Poland , director and founder of @ @ @ @ @ , said natural immunity from coronaviruses SARS-CoV-1 and MERS can be detected two to three @ @ @ @ @ .
However , immunity for seasonal coronaviruses can last as little as 80 days to @ @ @ @ @ .

Fauci says he’s optimistic about coronavirus vaccine protection, but concerned about how long that protection will last.
“If you look at the duration of protection when you recover from one of the several benign coronaviruses that cause the common cold, the durability of infection is only measured in a year or less as opposed to the other infections where you can get 15 to 20 years of protection,” he said.
www.yahoo.com/news/fauci-says-hes-optimistic-coronavirus-193043181.html
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He is saying no vaccine would work for more than a year.
Dr. Greg Poland, director and founder of Mayo Clinic Vaccine Research Group, said natural immunity from coronaviruses SARS-CoV-1 and MERS can be detected two to three years after recovering from infection. However, immunity for seasonal coronaviruses can last as little as 80 days to several years in some people.
Yew


investmentwatchblog--2020-06-04--Citizens have had enough of antifa…

Citizens have had enough of antifa…

As more and more people take matters into their own hands to deal with the looters and rioters , even @ @ @ @ @ are coming off looking like the good guys , as they are fighting off the @ @ @ @ @ though several shootings took place , as you can hear shots ringing out as people @ @ @ @ @ Locals Beat the Crap Out of Antifa Terrorists and Send Them Running For Their Lives @ @ @ @ @ terrorists in black bloc have taken over PCH and Main Street in Huntington Beach for @ @ @ @ @ the locals are fed up .
Huntington Beach , dubbed Surf City USA , is @ @ @ @ @ counter-culture .
A huge brawl broke out between Huntington Beach locals and Antifa .
The @ @ @ @ @ of Antifa and sent several of the black-clad cowards running across the street .

Huntington Beach, a bunch of their citizens ran off #Antifa. I don’t see Tito Ortiz anywhere in this video: pic.twitter.com/8aCHlCoZqT — #Dizzology🇺🇸 (@TalkMMA) June 1, 2020
CHICAGO: Shootout As Latin Gangs Protect Neighborhood From Alleged Looters — VIDEO
As more and more people take matters into their own hands to deal with the looters and rioters, even the Latin gangs in Chicago are coming off looking like the good guys, as they are fighting off the looters. It appears as though several shootings took place, as you can hear shots ringing out as people start scattering.
CALIFORNIA: Surf City USA Locals Beat Antifa Terrorists and Send Them Running
Huntington Beach Locals Beat the Crap Out of Antifa Terrorists and Send Them Running For Their Lives
Black Lives Matter and Antifa terrorists in black bloc have taken over PCH and Main Street in Huntington Beach for the last several days and the locals are fed up.
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Huntington Beach, dubbed Surf City USA, is known for its surfing and counter-culture.
A huge brawl broke out between Huntington Beach locals and Antifa.
The locals beat the crap out of Antifa and sent several of the black-clad cowards running across the street.
h/t CrsCrpr


investmentwatchblog--2020-06-04--George Floyd had a potentially lethal dose of fentanyl in his system

Links to studies showing 11ng/mL of fentanyl can be lethal : • Multiple Fentanyl Overdoses — New Haven , Connecticut @ @ @ @ @ • Serum samples from the hospitalized patients analyzed at UCSF demonstrated fentanyl levels of 0.5–9.5 @ @ @ @ @ ( therapeutic range for analgesia = 0.6–3.0 ng/mL ) ( 4 ) ; postmortem levels @ @ @ @ @ who died were 11 ng/mL ( patient E ) and 13 ng/mL ( patient I @ @

by ratioetlogicae
See full autopsy report here:

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Links to studies showing 11ng/mL of fentanyl can be lethal:
Multiple Fentanyl Overdoses — New Haven, Connecticut, June 23, 2016 www.cdc.gov/mmwr/volumes/66/wr/pdfs/mm6604a4.pdf Serum samples from the hospitalized patients analyzed at UCSF demonstrated fentanyl levels of 0.5–9.5 ng/mL (Table 2) (therapeutic range for analgesia = 0.6–3.0 ng/mL) (4); postmortem levels in the first two patients who died were 11 ng/mL (patient E) and 13 ng/mL (patient I).

Fatalities caused by novel opioids: a review www.ncbi.nlm.nih.gov/pmc/articles/PMC6609322/ 25 fatalities from fentanyl in Los Angeles, California (USA); Blood (f) 3.1–43 ng/mL (n = 13); blood (h) 1.8–139 ng/mL (n = 23); liver 5.8–613 μg/kg (n = 22) 19 fentanyl fatalities in south western Virginia (USA); Blood 2–48 ng/mL (median 18 ng/mL)


investmentwatchblog--2020-06-04--George Floyd, Riots, and Anonymous Exposed as Psyop for Deep State (VIDEO IS GOING VIRAL)

Watch it and spread it , it ’ s going viral right now : Accessible Forklift , bricks , and @ @ @ @ @ for destruction , cops shown smashing car windows for no reason… Almost as if there @ @ @ @ @ the reconstruction of cities from bloated budgets that will come .
Free Upgrades !
I @ @ @ @ @ to suggest that there are those that are encouraging the destruction of property by properly @ @ @ @ @ , that would likely get used or destroyed .
These cities will get aid so @ @ @ @ @ damage ?

Watch it and spread it, it’s going viral right now:
Related:
Accessible Forklift, bricks, and old police cars strategically placed for destruction, cops shown smashing car windows for no reason… Almost as if there will be some benefiting from the reconstruction of cities from bloated budgets that will come. Free Upgrades!
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I believe there is some evidence to suggest that there are those that are encouraging the destruction of property by properly placing things in protest hotspots, that would likely get used or destroyed. These cities will get aid so why not ramp up the damage?
AC


investmentwatchblog--2020-06-04--Trudeau’s embarrassing 21 seconds of silence when asked about Trump’s response to riots highlights C

Trudeau’s embarrassing 21 seconds of silence when asked about Trump’s response to riots highlights Canada’s hypocrisy

There are moments when an entire nation can feel a sense of collective awkwardness , if not embarrassment .
That @ @ @ @ @ and lasted for 21 excruciating seconds .
During a press conference on Tuesday , Prime @ @ @ @ @ and stoic , struggling to answer a reporter ’ s question about Canada ’ s @ @ @ @ @ Trump ’ s threats to send in the military to deal with the anti-police-brutality protests @ @ @ @ @ America .
It was only a few painfully audible mouth clicks that let viewers know @ @ @ @ @ frozen , and not their internet .
The PM broke the pause by mouthing a @ @ @ @ @ Canadians were watching the chaos unfolding in the US “ with horror ” , but @ @ @ @ @ crackdown by the police or Trump ’ s calls to use the military against his @ @ @

There are moments when an entire nation can feel a sense of collective awkwardness, if not embarrassment. That very thing happened in Canada and lasted for 21 excruciating seconds.
During a press conference on Tuesday, Prime Minister Justin Trudeau stood stiff and stoic, struggling to answer a reporter’s question about Canada’s response to US President Donald Trump’s threats to send in the military to deal with the anti-police-brutality protests that have erupted all over America.
It was only a few painfully audible mouth clicks that let viewers know it was Trudeau who had frozen, and not their internet. The PM broke the pause by mouthing a few predictable platitudes about how Canadians were watching the chaos unfolding in the US “with horror”, but failed to condemn the brutal crackdown by the police or Trump’s calls to use the military against his own population.
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investmentwatchblog--2020-06-04--Do You Know That Every Police Officer In The Country Has Been TRAINED To Use The “Neck Restraint” Te

Do You Know That Every Police Officer In The Country Has Been TRAINED To Use The “Neck Restraint” Technique With Their Knee?

A police training expert shared perspective with 5 EYEWITNESS NEWS on the cell phone video , showing the incident involving @ @ @ @ @ .
Mylan Masson worked as a police officer for 20 years and ran police training @ @ @ @ @ at Hennepin Technical College until 2016 .
“ Somebody died in the process of being @ @ @ @ @ something we want to have , ” Masson said .
The cell phone video , @ @ @ @ @ shows an officer using his knee as a means of putting pressure on Floyd ’ @ @ @ @ @ restraint is listed as a “ non-deadly force option ” in the Minneapolis Police Department @ @ @ @ @ according to the police .
The Unconscious Neck Restraint shall only be applied in the @ @ @

A police training expert shared perspective with 5 EYEWITNESS NEWS on the cell phone video, showing the incident involving Minneapolis police and George Floyd.
Mylan Masson worked as a police officer for 20 years and ran police training for the state of Minnesota at Hennepin Technical College until 2016.
“Somebody died in the process of being arrested, which is never something we want to have,” Masson said.
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The cell phone video, taken by a bystander, shows an officer using his knee as a means of putting pressure on Floyd’s neck.
A neck restraint is listed as a “non-deadly force option” in the Minneapolis Police Department Policy & Procedure Manual, according to the police.
The Unconscious Neck Restraint shall only be applied in the following circumstances:


investmentwatchblog--2020-06-05--If Fed does something wrong, copying does not make it good.

For those that say “ the Fed does it too ” 1 ) Fed balance sheet 36 % GDP , @ @ @ @ @ USD world reserve currency , Euro is not .
3 ) Fed does not inject @ @ @ @ @ .
ECB a lot more than EUR demand 4 ) If Fed does something wrong @ @ @ @ @ it good .

For those that say “the Fed does it too”
1) Fed balance sheet 36% GDP, ECB 46%
2) USD world reserve currency, Euro is not.
3) Fed does not inject more than global USD demand. ECB a lot more than EUR demand
4) If Fed does something wrong, copying does not make it good.
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Regards
For those that say "the Fed does it too" 1) Fed balance sheet 36% GDP, ECB 46%
2) USD world reserve currency, Euro is not.
3) Fed does not inject more than global USD demand. ECB a lot more than EUR demand
4) If Fed does something wrong, copying does not make it good. Regards pic.twitter.com/icJwjyeg0b — Daniel Lacalle (@dlacalle_IA) June 5, 2020
Euro always bounces on hopes of a miracle from stimulus… then reality kicks in pic.twitter.com/OUG0HZ5uap — Daniel Lacalle (@dlacalle_IA) June 5, 2020


investmentwatchblog--2020-06-05--Drukenmiller said watch out when liquidity reverses. Put/call ratio suggests that easy gains are mos

Drukenmiller said watch out when liquidity reverses. Put/call ratio suggests that easy gains are most likely behind us. Hedge funds fear another reckoning for global stocks.

Another # deflationary bust coming soon !
This is ETF for VIX ( SP500 ) .
2½ yrs of divergence is not solved in 1-2 months !
It will soar .
Setup is massive and we are only in eye of the storm = a bounce .
Next decline in stocks will be devastating !
See more on t.co/JnpPHjC2L9 pic.twitter.com/1gMdLk68dM Hedge funds are getting ready for another slide in stock markets after growing uneasy that surging prices do not reflect the economic problems ahead .
Some managers fear that equity investors — used to buying the dips during the decade-long @ @ @ @ @ @ @ s sharp sell-off — have become too complacent about how quickly economies can recover from the pandemic and how effective stimulus packages from central banks and governments can be .
The S & P 500 index completed its best 50-day run in history on Wednesday , said LPL Financial , closing within 8 per cent of its record high of mid-February .
“ The markets are priced to perfection , ” said Danny Yong , founding partner at hedge fund Dymon Asia Capital in Singapore .
“ The stability in equity markets does @ @ @ @ @ @ @ insolvencies ahead of us globally.
” Mr Yong has been buying put options — which protect against market falls by allowing their owner to sell at a predetermined price — on stock indices and also on currencies sensitive to risk appetite such as the Australian dollar and the Korean won .
“ I believe we will see new lows in global equity markets later this year , ” he added .
“ As March .
.
.
has shown us , prices can not diverge from fundamentals for too long.
” Other hedge @ @ @ @ @ @ @ sharp rebound in stocks from the March lows .
Stanley Druckenmiller , a protégé of George Soros who stepped back from managing outside money a decade ago , recently said he expected a wave of bankruptcies and that a V-shaped economic recovery was a “ fantasy ” .
Paul Singer ’ s Elliott Management , which has $ 40bn in assets , wrote in its most recent letter to investors that , since the impact of the economic downturn was greater than that of the 2008 financial crisis , “ our gut tells @ @ @ @ @ @ @ deeper decline from the February top might be the ultimate path of global stock markets ” .

Another #deflationary bust coming soon! This is ETF for VIX (SP500). 2½ yrs of divergence is not solved in 1-2 months! It will soar. Setup is massive and we are only in eye of the storm = a bounce. Next decline in stocks will be devastating! See more on t.co/JnpPHjC2L9 pic.twitter.com/1gMdLk68dM
Hedge funds fear another reckoning for global stocks
Hedge funds are getting ready for another slide in stock markets after growing uneasy that surging prices do not reflect the economic problems ahead.
Some managers fear that equity investors — used to buying the dips during the decade-long bull market that ended in March’s sharp sell-off — have become too complacent about how quickly economies can recover from the pandemic and how effective stimulus packages from central banks and governments can be.
The S&P 500 index completed its best 50-day run in history on Wednesday, said LPL Financial, closing within 8 per cent of its record high of mid-February.
“The markets are priced to perfection,” said Danny Yong, founding partner at hedge fund Dymon Asia Capital in Singapore. “The stability in equity markets does not reflect the job losses and the insolvencies ahead of us globally.”
Mr Yong has been buying put options — which protect against market falls by allowing their owner to sell at a predetermined price — on stock indices and also on currencies sensitive to risk appetite such as the Australian dollar and the Korean won.
“I believe we will see new lows in global equity markets later this year,” he added. “As March . . . has shown us, prices cannot diverge from fundamentals for too long.”
Other hedge fund managers have expressed concerns about the sharp rebound in stocks from the March lows.
Stanley Druckenmiller, a protégé of George Soros who stepped back from managing outside money a decade ago, recently said he expected a wave of bankruptcies and that a V-shaped economic recovery was a “fantasy”.
Paul Singer’s Elliott Management, which has $40bn in assets, wrote in its most recent letter to investors that, since the impact of the economic downturn was greater than that of the 2008 financial crisis, “our gut tells us that a 50 per cent or deeper decline from the February top might be the ultimate path of global stock markets”.


investmentwatchblog--2020-06-05--Central Banks have exacerbated the divergence between equities and fundamentals. Cheerleader of weal

Central Banks have exacerbated the divergence between equities and fundamentals. Cheerleader of wealth inequality now wondering why the system he exploited still exploits others.

It's the liquidity stupid! Central Banks have exacerbated the divergence between equities and fundamentals. The latest rebound in equities was entirely due to P/E expansion. S&P 500 P/E multiple is trading in tandem w/Fed’s balance sheet. pic.twitter.com/DaerxoYvzI — Holger Zschaepitz (@Schuldensuehner) June 5, 2020
Cheerleader of wealth inequality now wondering why the system he exploited still exploits others. t.co/EzMVNVSvuS — Brad Huston (@BradHuston) June 5, 2020
BREAKING: Markets pricing in vaccine against selloffs, down days, earnings declines, unemployment, recessions, social unrest, riots and gravity. — Sven Henrich (@NorthmanTrader) June 5, 2020
It’s happening around the world.
Central banks, in their quests to save the economies, are unleashing unpredictable social and political forces reacting to the ever widening divide central banks are fueling with their unchecked and unbalanced policies. t.co/4tDPiFWUzh — Sven Henrich (@NorthmanTrader) June 5, 2020


investmentwatchblog--2020-06-05--Most U.S. States Have ‘Reopened’ Their Economies, So Why Does Unemployment Continue To Spiral Out Of

Most U.S. States Have ‘Reopened’ Their Economies, So Why Does Unemployment Continue To Spiral Out Of Control?

This wasn ’ t supposed to happen .
Once states started to “ reopen ” their economies , the tsunami of unemployment was supposed to end .
But instead , we continue to see Americans lose jobs at a pace that is far beyond anything we have ever seen before in all of U.S. history .
All the way back in 1982 , there was a week when 695,000 Americans filed initial claims for unemployment benefits , and that all-time record was never broken until this year .
Of course we have seen monster number after monster number here in @ @ @ @ @ @ @ last week another 1.877 million Americans filed new claims for unemployment benefits… Filings for unemployment insurance claims totaled 1.877 million last week in a sign that the worst is over for the coronavirus-related jobs crisis but that the level of unemployment remains stubbornly high .
Economists surveyed by Dow Jones had been looking for 1.775 million new claims .
The Labor Department ’ s total nevertheless represented a decline from the previous week ’ s upwardly revised total of 2.126 million .
So even though more than 40 million Americans had already lost @ @ @ @ @ @ @ still enough people losing their jobs last week to surpass the old record from 1982 by more than a million .
Just think about that .
Overall , a grand total of 42.6 million Americans have now lost their jobs since the pandemic began , and that makes this the largest spike in unemployment in all of U.S. history by a very wide margin .
And when the monthly employment report comes out on Friday , the official U.S. unemployment rate is expected to surpass 20 percent… By now , everyone pretty much @ @ @ @ @ @ @ understates the true level of unemployment in this country .
But even if we take it at face value , the unemployment rate is now far higher than it has been at any point since the Great Depression of the 1930s .
With tens of millions of Americans now out of work , a lot of people are now finding it extremely difficult to pay the bills .
The following comes from an NPR article entitled “ Millions Of Americans Skip Payments As Tidal Wave Of Defaults And Evictions Looms ” … An @ @ @ @ @ @ @ have started by now , but that isn ’ t happening .
And now the horrifying riots that have erupted all over the nation are going to make things even worse .
Our urban areas contain countless numbers of small businesses , and economists are warning that all of this civil unrest will be “ a death blow ” for many of them… Sadly , a lot of the businesses that the rioters are destroying are actually minority-owned businesses .
What we are watching unfold is truly a great national tragedy , and @ @ @ @ @ @ @ any time soon .
Needless to say , there are some big companies that are going to be severely tempted to give up on our core urban areas completely .
If there is a constant threat that your stores are going to be smashed , looted or set on fire , that doesn ’ t make for a profitable business environment .
For example , it is being reported that Walmart may consider leaving the city of Chicago , and Mayor Lori Lightfoot is pleading with them to stay… Mayor Lightfoot said she @ @ @ @ @ @ @ and other major retailers that had stores looted or heavily damaged during the unrest in Chicago .
She said she pleaded with them to not abandon Chicago .
“ I think in the case of Walmart , what they were focused on was assessing the damage .
They are doing an effort to donate fresh produce , to the extent of what ’ s left so it doesn ’ t perish , and other perishables , and they are talking their time , as I would expect.
” More violence is expected around @ @ @ @ @ @ @ a doubt all of this rioting is going to have a massive impact on the U.S. economy .
Meanwhile , more than 129,000 newly confirmed cases of COVID-19 were reported around the globe during the 24 hour period that just ended , and that is the largest one day total that I have seen so far .
In other words , the coronavirus pandemic is a long , long way from over .
Despite what the talking heads in the mainstream media are telling you , the truth is that the U.S. economy @ @ @ @ @ @ @ We have already plunged into a new economic depression , and bankers are now warning companies that the flow of credit is about to get a lot tighter… There is so much fear in the air , and in such an environment financial institutions get very stingy with their money .
In the days ahead , it is going to become much more difficult for just about everyone to borrow money , and that is going to have very serious implications for our economic outlook .
Of course things are changing so rapidly @ @ @ @ @ @ @ predict what U.S. economic numbers will look like in the months ahead .
So far in 2020 , we have already been hit by a major global pandemic , an economic depression , and the worst civil unrest in decades .
It has been “ one thing after another ” , and the truth is that this “ perfect storm ” is just getting started…

by Michael Snyder
This wasn’t supposed to happen. Once states started to “reopen” their economies, the tsunami of unemployment was supposed to end. But instead, we continue to see Americans lose jobs at a pace that is far beyond anything we have ever seen before in all of U.S. history. All the way back in 1982, there was a week when 695,000 Americans filed initial claims for unemployment benefits, and that all-time record was never broken until this year. Of course we have seen monster number after monster number here in 2020, and we just learned that last week another 1.877 million Americans filed new claims for unemployment benefits…
Filings for unemployment insurance claims totaled 1.877 million last week in a sign that the worst is over for the coronavirus-related jobs crisis but that the level of unemployment remains stubbornly high. Economists surveyed by Dow Jones had been looking for 1.775 million new claims. The Labor Department’s total nevertheless represented a decline from the previous week’s upwardly revised total of 2.126 million.
So even though more than 40 million Americans had already lost their jobs in 2020, there were still enough people losing their jobs last week to surpass the old record from 1982 by more than a million.
Just think about that.
Overall, a grand total of 42.6 million Americans have now lost their jobs since the pandemic began, and that makes this the largest spike in unemployment in all of U.S. history by a very wide margin.
And when the monthly employment report comes out on Friday, the official U.S. unemployment rate is expected to surpass 20 percent…
The numbers came the day before the Labor Department releases its nonfarm payrolls report for May. Economists surveyed by Dow Jones are expecting a decline of 8.3 million and a 20.5% unemployment rate, more than double the highest previous level since the Great Depression.
By now, everyone pretty much understands that the official unemployment rate greatly understates the true level of unemployment in this country.
But even if we take it at face value, the unemployment rate is now far higher than it has been at any point since the Great Depression of the 1930s.
With tens of millions of Americans now out of work, a lot of people are now finding it extremely difficult to pay the bills. The following comes from an NPR article entitled “Millions Of Americans Skip Payments As Tidal Wave Of Defaults And Evictions Looms”…
Americans are skipping payments on mortgages, auto loans and other bills. Normally, that could mean massive foreclosures, evictions, cars repossessions and people’s credit getting destroyed. But much of that has been put on pause. Help from Congress and leniency from lenders have kept impending financial disaster at bay for millions of people. But that may not last for long.
An “economic recovery” was supposed to have started by now, but that isn’t happening.
And now the horrifying riots that have erupted all over the nation are going to make things even worse.
Our urban areas contain countless numbers of small businesses, and economists are warning that all of this civil unrest will be “a death blow” for many of them…
Some economists are predicting a death blow to small businesses that were already under unprecedented financial strain. If they weren’t ransacked, looted, and destroyed by hooligans, they will feel the macro effects of urban decline and flight, plummeting consumer confidence, falling property values, and worsening budgetary crises for state and local governments.
Sadly, a lot of the businesses that the rioters are destroying are actually minority-owned businesses.
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What we are watching unfold is truly a great national tragedy, and it isn’t going to end any time soon.
Needless to say, there are some big companies that are going to be severely tempted to give up on our core urban areas completely. If there is a constant threat that your stores are going to be smashed, looted or set on fire, that doesn’t make for a profitable business environment.
For example, it is being reported that Walmart may consider leaving the city of Chicago, and Mayor Lori Lightfoot is pleading with them to stay…
Mayor Lightfoot said she was on a conference call with Walmart and other major retailers that had stores looted or heavily damaged during the unrest in Chicago. She said she pleaded with them to not abandon Chicago. “I think in the case of Walmart, what they were focused on was assessing the damage. They are doing an effort to donate fresh produce, to the extent of what’s left so it doesn’t perish, and other perishables, and they are talking their time, as I would expect.”
More violence is expected around the nation this weekend, and without a doubt all of this rioting is going to have a massive impact on the U.S. economy.
Meanwhile, more than 129,000 newly confirmed cases of COVID-19 were reported around the globe during the 24 hour period that just ended, and that is the largest one day total that I have seen so far.
In other words, the coronavirus pandemic is a long, long way from over.
Despite what the talking heads in the mainstream media are telling you, the truth is that the U.S. economy is going to continue to crumble. We have already plunged into a new economic depression, and bankers are now warning companies that the flow of credit is about to get a lot tighter…
Bankers have a message for America’s debt-laden companies: raise money now, because things could get a lot worse. The gradual reopening of businesses after months-long shutdowns and a pick up in manufacturing activity have given investors reason for optimism in recent weeks. But underwriters who cater to heavily indebted corporations are offering their clients a bleak preview of what may lie ahead.
There is so much fear in the air, and in such an environment financial institutions get very stingy with their money.
In the days ahead, it is going to become much more difficult for just about everyone to borrow money, and that is going to have very serious implications for our economic outlook.
Of course things are changing so rapidly that it has become virtually impossible to predict what U.S. economic numbers will look like in the months ahead.
So far in 2020, we have already been hit by a major global pandemic, an economic depression, and the worst civil unrest in decades.
It has been “one thing after another”, and the truth is that this “perfect storm” is just getting started…


investmentwatchblog--2020-06-05--Cry For This Country, Because The Streets Of America Have Become A War Zone

It has truly been disheartening to watch how rapidly our major cities have descended into complete and utter chaos .
At a moment when our nation should be coming together like never before , we have open warfare in the streets .
The violence has shocked the entire world , and even more violence is expected this weekend .
But anyone that is causing violence is actually dishonoring the memory of George Floyd , and I wish that many of the “ leaders ” that are encouraging these protests would make that point a lot more loudly .
The truth @ @ @ @ @ @ @ are sick and tired of police brutality .
Personally , I have written countless articles about police brutality over the years , and I never want to see another police officer kneel on someone ’ s neck ever again .
But I also never want to see these sorts of riots ever again either .
Unfortunately , many people believe that this is just the beginning of the civil unrest in this country .
When I use the term “ war zone ” to describe what the streets of some of our major @ @ @ @ @ @ @ not exaggerating one bit .
The following is how one Minneapolis resident described the current condition of his city… I do not live near downtown Minneapolis , but in a residential neighborhood .
Many stores and facilities blocks away from me were either physically destroyed or burnt to the ground .
I have heard multiple stories from neighbors about rioters coming on my street to cause trouble and being chased away with guns .
Bomb threats to hospitals and nursing homes with suspicious items found on the property were rampant .
If you @ @ @ @ @ @ @ is buildings burnt down to the ground and mass destruction everywhere .
Every single person I ’ ve spoken with that lives in Minneapolis has a story .
But instead of working to restore law and order , “ several ” members of the Minneapolis City Council want to completely “ disband the Minneapolis Police Department ” … A member of the Minneapolis City Council revealed this week that he and several other council members are working on finding out what it would take to disband the Minneapolis Police Department .
The announcement @ @ @ @ @ @ @ after George Floyd died while in police custody in Minneapolis .
During an appearance on CNN on Wednesday , he called the city ’ s police department “ ungovernable.
” If they actually do this , please remind me to never visit Minneapolis ever again .
Without any police , who is going to stop the rioters ?
In California , private citizens attempted to defend the Santa Monica Music Center , but they were overpowered by looters .
The following comes from Fox News… For almost five decades , Santa Monica Music @ @ @ @ @ @ @ education that gave all walks of life the opportunity to bond over melodies .
But in the riots that reached Santa Monica on Sunday , almost everything inside was damaged or pilfered as the distraught owners looked on , and those who tried to defend the building had guns and other weapons pulled on them with no law enforcement to be found .
When asked about this incident , one of the owners described it as “ a horror movie ” … Is that really the type of world that we want to @ @ @ @ @ @ @ we need the police .
We just don ’ t want them to act like monsters .
Unfortunately , new examples of police brutality continue to emerge day after day .
For example , check out what just happened in Indianapolis… And in New York state , an elderly man had his skull cracked open after being pushed to the concrete by police .
Nobody wants that .
Without a doubt , being a police officer is one of the toughest jobs in America right now .
Dealing with the angry mobs that @ @ @ @ @ @ @ incredibly stressful , and they put their lives on the line every single day .
But the proper balance between force and restraint must be found , because we desperately need the police to regain the faith of the American people .
Right now , many activists all over the U.S. are calling for the police to be defunded , but that will only make things worse .
The truth is that we need the police , because otherwise our cities will descend into a constant state of utter chaos .
There are @ @ @ @ @ @ @ do not believe in the rule of law , and if given the opportunity they would use force to make their own law .
The following is what one man experienced when he was recently caught in the middle of a group of Antifa rioters… Suddenly they turned and , with military precision , all began walking , and I was in the middle of them .
I quickly moved to the left of the street to get out of their way , but the massive army began to move faster and faster @ @ @ @ @ @ @ middle with no way to get out .
Like a steamroller on hot asphalt , they just mowed me over .
As I turned , three white girls , with the nastiest expressions in their eyes , punched me and shoved me to the ground and moved on , with person after person just stepping over me .
Ultimately , somebody is going to rule the streets of America , and we want it to be the police .
We just want the police to act in a civilized manner .
Is that @ @ @ @ @ @ @ I believe that there is going to be more violence , more riots and more police brutality in the days ahead .
The streets of America have become a war zone , and life in this country will never be the same again .

by Michael Snyder
It has truly been disheartening to watch how rapidly our major cities have descended into complete and utter chaos. At a moment when our nation should be coming together like never before, we have open warfare in the streets. The violence has shocked the entire world, and even more violence is expected this weekend. But anyone that is causing violence is actually dishonoring the memory of George Floyd, and I wish that many of the “leaders” that are encouraging these protests would make that point a lot more loudly. The truth is that the vast majority of Americans are sick and tired of police brutality. Personally, I have written countless articles about police brutality over the years, and I never want to see another police officer kneel on someone’s neck ever again. But I also never want to see these sorts of riots ever again either. Unfortunately, many people believe that this is just the beginning of the civil unrest in this country.
When I use the term “war zone” to describe what the streets of some of our major cities now look like, I am not exaggerating one bit. The following is how one Minneapolis resident described the current condition of his city…
I do not live near downtown Minneapolis, but in a residential neighborhood. Many stores and facilities blocks away from me were either physically destroyed or burnt to the ground. I have heard multiple stories from neighbors about rioters coming on my street to cause trouble and being chased away with guns. Bomb threats to hospitals and nursing homes with suspicious items found on the property were rampant. If you drive around the city all you see is buildings burnt down to the ground and mass destruction everywhere. Every single person I’ve spoken with that lives in Minneapolis has a story.
But instead of working to restore law and order, “several” members of the Minneapolis City Council want to completely “disband the Minneapolis Police Department”…
A member of the Minneapolis City Council revealed this week that he and several other council members are working on finding out what it would take to disband the Minneapolis Police Department. The announcement from Councilmember Steve Fletcher comes a week after George Floyd died while in police custody in Minneapolis. During an appearance on CNN on Wednesday, he called the city’s police department “ungovernable.”
Seriously?
If they actually do this, please remind me to never visit Minneapolis ever again.
Without any police, who is going to stop the rioters?
In California, private citizens attempted to defend the Santa Monica Music Center, but they were overpowered by looters. The following comes from Fox News…
For almost five decades, Santa Monica Music Center was an oasis of arts and education that gave all walks of life the opportunity to bond over melodies. But in the riots that reached Santa Monica on Sunday, almost everything inside was damaged or pilfered as the distraught owners looked on, and those who tried to defend the building had guns and other weapons pulled on them with no law enforcement to be found.
When asked about this incident, one of the owners described it as “a horror movie”…
“It was just a horror movie,” Lana Negrete, 40, who now co-owns the center with her father Chico and runs the business with her husband. “They took everything from us, and no one stopped them. It was so violating.”
Is that really the type of world that we want to live in?
The truth is that we need the police. We just don’t want them to act like monsters.
Unfortunately, new examples of police brutality continue to emerge day after day. For example, check out what just happened in Indianapolis…
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The Indianapolis Metropolitan Police Department is investigating the actions of several officers captured on video using batons and pepper balls to subdue a woman on a downtown sidewalk Sunday night, a spokeswoman said. The video, shared widely on Twitter and Facebook, recorded what happened to two women arrested by officers at the corner of North Pennsylvania and East Washington streets around 9 p.m.
And in New York state, an elderly man had his skull cracked open after being pushed to the concrete by police.
Nobody wants that.
Without a doubt, being a police officer is one of the toughest jobs in America right now. Dealing with the angry mobs that we are witnessing in the streets is incredibly stressful, and they put their lives on the line every single day.
But the proper balance between force and restraint must be found, because we desperately need the police to regain the faith of the American people.
Right now, many activists all over the U.S. are calling for the police to be defunded, but that will only make things worse.
The truth is that we need the police, because otherwise our cities will descend into a constant state of utter chaos.
There are a lot of people out there that do not believe in the rule of law, and if given the opportunity they would use force to make their own law. The following is what one man experienced when he was recently caught in the middle of a group of Antifa rioters…
Suddenly they turned and, with military precision, all began walking, and I was in the middle of them. I quickly moved to the left of the street to get out of their way, but the massive army began to move faster and faster. Suddenly, I was in the middle with no way to get out. Like a steamroller on hot asphalt, they just mowed me over. As I turned, three white girls, with the nastiest expressions in their eyes, punched me and shoved me to the ground and moved on, with person after person just stepping over me.
Ultimately, somebody is going to rule the streets of America, and we want it to be the police.
We just want the police to act in a civilized manner.
Is that too much to ask?
Sadly, I believe that there is going to be more violence, more riots and more police brutality in the days ahead.
The streets of America have become a war zone, and life in this country will never be the same again.


investmentwatchblog--2020-06-05--Market worrying about a phenomenon much worse than stagflation?

The 30-year Treasury yield has been rising for six days in a row , closing on Thursday at 1.61 % , up from 1.41 % on May 29 , and up from 1.17 % on April 20 , and the highest since March 19 , when the Fed was unleashing its multi-trillion dollar Everything Bubble Bailout .
The 20-year yield closed at 1.38 % , the highest since March 4 .
The 10-year yield closed at 0.82 % , the highest since March 26 .
Obviously , these yields are still in the financial repression torture basement , but the @ @ @ @ @ @ @ market .
The short-term yields are just a hair above zero , with the one-month yield at 0.13 % , which makes for a curiously steep yield curve .
The red line shows Treasury yields at the close today , from the one-month yield to the 30-year yield .
The blue line shows the yields on March 2 , before the desperate rate cuts and bailouts .
And the green line shows the yields on November 5 , 2019 : This is the steepest yield curve since October 2017 , when measured by @ @ @ @ @ @ @ the 30-year yield ( 30-year yield minus 2-year yield ) , which today widened to 1.37 percentage points , the widest since October 2017 : And this widening of the spread and thereby the steepening of the yield curve has been happening although the Fed has bought $ 1.6 trillion in Treasury securities since early March , as part of its $ 2.9 trillion Everything Bubble Bailout .
When a yield curve steepens , it is sometimes associated with the reaction in the market to a strong economy .
And that would be @ @ @ @ @ @ @ the worst economy in our lifetimes , and any improvement – there will eventually be some improvement – will just make the economy a little less terrible .
Rather than seeing a strengthening economy , markets might be worrying about inflation , given all this money-printing in combination with trillions of dollars in government stimulus spending , even as the economy is in terrible shape .
Stagflation of the 1970s was a condition where the economy was in decent shape , compared to today ’ s economy , but just wasn ’ t @ @ @ @ @ @ @ .
Today ’ s economy is an unspeakable fiasco , and a big bout of inflation that would eviscerate the purchasing power of labor – of the lucky ones that still have jobs – would create a phenomenon far worse than stagflation .
The Fed would of course welcome a big bout of consumer-price inflation that will eviscerate the purchasing power of wages .
This inflation would allow it to declare victory over the fake deflation monster .
The Fed is not likely to react to inflation , having already hammered home many @ @ @ @ @ @ @ stay low for a long time .
Markets see this too .
If consumer-price inflation takes off , under the combined pressure from money-printing and stimulus-spending – while wages can not keep up because of high unemployment , thus further crushing those that make a living by working – the Fed is going to pat itself on the back .
The economy is currently under a rare combination of simultaneous supply and demand shocks in many aspects as factories and service establishments were shut down , and as companies have slashed capacity , @ @ @ @ @ @ @ , creating tight supply in some areas .
But there is also the demand shock , given that tens of millions of people have lost their jobs – but demand for consumer goods is being boosted by enormous stimulus spending .
And this combination of supply and demand shocks , along with enormous stimulus spending and money-printing , can produce some peculiar results .
Inflation , at these still super-low long-term yields , would be a serious threat for bondholders as their bonds would lose much of their purchasing power over the term @ @ @ @ @ @ @ be very little yield to compensate them for that loss of purchasing power .
The rise in yields , and the steepening of the yield curve might be an expression of a growing distaste for this type of scenario .
And then there is this : The Fed has been cutting back its purchases of Treasury securities .
Its balance of Treasuries increased by $ 25 billion over the past week , according to its balance sheet today .
A week ago , the balance increased by just $ 11 billion .
This @ @ @ @ @ @ @ but it ’ s way down from $ 300+ billion in the weeks at the end of March and early April , and it ’ s right back where it had been before the Fed kicked off its Everything Bubble bailout : The Fed could still impose “ yield curve control ” over the market , where it essentially pegs long-term yields via forward guidance and by buying long-term bonds to maintain the peg .
This is now being discussed and might happen later this year .
The Bank of Japan has been @ @ @ @ @ @ @ this , Japanese banks , pension funds , and other entities have chased yield overseas .
This has turned Japanese banks into the most fervent buyers of Collateralized Loan Obligations ( CLOs ) , backed by junk-rated leveraged loans issued by overleveraged US companies that are now toppling .
Yield curve control has insidious side effects .
And in an inflationary scenario , yield curve control would make Treasuries as unappealing for long-term bondholders as a toxic-waste dump .

The 30-year Treasury yield has been rising for six days in a row, closing on Thursday at 1.61%, up from 1.41% on May 29, and up from 1.17% on April 20, and the highest since March 19, when the Fed was unleashing its multi-trillion dollar Everything Bubble Bailout.
The 20-year yield closed at 1.38%, the highest since March 4. The 10-year yield closed at 0.82%, the highest since March 26. Obviously, these yields are still in the financial repression torture basement, but the rises are showing some impatience in the market.
The short-term yields are just a hair above zero, with the one-month yield at 0.13%, which makes for a curiously steep yield curve. The red line shows Treasury yields at the close today, from the one-month yield to the 30-year yield. The blue line shows the yields on March 2, before the desperate rate cuts and bailouts. And the green line shows the yields on November 5, 2019:
This is the steepest yield curve since October 2017, when measured by the spread between the 2-year yield and the 30-year yield (30-year yield minus 2-year yield), which today widened to 1.37 percentage points, the widest since October 2017:
And this widening of the spread and thereby the steepening of the yield curve has been happening although the Fed has bought $1.6 trillion in Treasury securities since early March, as part of its $2.9 trillion Everything Bubble Bailout.
When a yield curve steepens, it is sometimes associated with the reaction in the market to a strong economy. And that would be a good thing. But this is the worst economy in our lifetimes, and any improvement – there will eventually be some improvement – will just make the economy a little less terrible.
Rather than seeing a strengthening economy, markets might be worrying about inflation, given all this money-printing in combination with trillions of dollars in government stimulus spending, even as the economy is in terrible shape.
Stagflation of the 1970s was a condition where the economy was in decent shape, compared to today’s economy, but just wasn’t growing much, while inflation was ballooning. Today’s economy is an unspeakable fiasco, and a big bout of inflation that would eviscerate the purchasing power of labor – of the lucky ones that still have jobs – would create a phenomenon far worse than stagflation.
The Fed would of course welcome a big bout of consumer-price inflation that will eviscerate the purchasing power of wages.
We are primarily funded by readers. Please subscribe and donate to support us!
This inflation would allow it to declare victory over the fake deflation monster. The Fed is not likely to react to inflation, having already hammered home many times that interest rates are going to stay low for a long time. Markets see this too. If consumer-price inflation takes off, under the combined pressure from money-printing and stimulus-spending – while wages cannot keep up because of high unemployment, thus further crushing those that make a living by working – the Fed is going to pat itself on the back.
The economy is currently under a rare combination of simultaneous supply and demand shocks in many aspects as factories and service establishments were shut down, and as companies have slashed capacity, from airlines and container carriers to automakers, creating tight supply in some areas.
But there is also the demand shock, given that tens of millions of people have lost their jobs – but demand for consumer goods is being boosted by enormous stimulus spending. And this combination of supply and demand shocks, along with enormous stimulus spending and money-printing, can produce some peculiar results.
Inflation, at these still super-low long-term yields, would be a serious threat for bondholders as their bonds would lose much of their purchasing power over the term of the bond. And there would be very little yield to compensate them for that loss of purchasing power. The rise in yields, and the steepening of the yield curve might be an expression of a growing distaste for this type of scenario.
And then there is this: The Fed has been cutting back its purchases of Treasury securities. Its balance of Treasuries increased by $25 billion over the past week, according to its balance sheet today. A week ago, the balance increased by just $11 billion. This is still a lot of money-printing, but it’s way down from $300+ billion in the weeks at the end of March and early April, and it’s right back where it had been before the Fed kicked off its Everything Bubble bailout:
The Fed could still impose “yield curve control” over the market, where it essentially pegs long-term yields via forward guidance and by buying long-term bonds to maintain the peg. This is now being discussed and might happen later this year.
The Bank of Japan has been doing this for years. To dodge this, Japanese banks, pension funds, and other entities have chased yield overseas. This has turned Japanese banks into the most fervent buyers of Collateralized Loan Obligations (CLOs), backed by junk-rated leveraged loans issued by overleveraged US companies that are now toppling. Yield curve control has insidious side effects.
And in an inflationary scenario, yield curve control would make Treasuries as unappealing for long-term bondholders as a toxic-waste dump.


investmentwatchblog--2020-06-05--Welcome To The Third World, Part 31: California Makes Its Case For A Bailout

Just a few months ago , California was running surpluses and spreading the wealth around — at least to its affluent voters and public sector employees — as if the good times were here to stay .
Fast forward to the present and it ’ s all over .
Tech stock IPOs – a huge source of capital gains tax revenue for the home of Silicon Valley – have evaporated .
Those “ unicorn ” companies – not yet public but worth over a billion dollars each – are doing “ down rounds ” that value them as the risky @ @ @ @ @ @ @ formerly booming housing market has ground to a halt .
And millions of service industry businesses like restaurants and nightclubs have closed permanently .
But the state government still has to pretend to balance its books , so now comes the tragicomedy of negotiations between the governor and state legislators over where to find the needed $ 50+ billion .
Here ’ s how the Associated Press covers it in an article bafflingly titled California lawmakers agree to close $ 54.3 billion budget gap : SACRAMENTO , Calif. ( AP ) — California @ @ @ @ @ @ @ billions of dollars in budget cuts to public schools and health care services that Gov .
Gavin Newsom had proposed , setting up a fight with the governor over how to close the state ’ s estimated $ 54.3 billion budget deficit .
Flush with cash just six months ago , California ’ s revenues have plummeted since March after Newsom ordered everyone to stay home to slow the spread of the coronavirus .
Since then , more than 5 million people have filed for unemployment benefits .
Newsom , a Democrat , @ @ @ @ @ @ @ have pleaded with Congress to send the state more money to help cover that shortfall — so far without success .
Last month , Newsom proposed a new spending plan that would cut billions from public schools and eliminate some health benefits for people unless Congress sent the state more money by July 1 .
But the 2020-2021 budget plan legislative leaders announced Wednesday rejected those cuts .
Instead of cutting money for public schools , lawmakers agreed to delay $ 9 billion in payments to districts .
That would give school districts @ @ @ @ @ @ @ money and have the state pay them back in a future budget year .
The state has done this before during previous recessions , but never this much at one time .
Newsom ’ s plan also would have saved money by eliminating some health benefits for low-income adults and children and making fewer older adults eligible for government-funded health insurance .
The Legislature rejected those cuts because they think Newsom overestimated by about $ 4 billion how much it will cost to pay for the state ’ s health insurance programs .
@ @ @ @ @ @ @ is just a guess .
In a normal year , most Californians would have filed their state tax returns by now , giving lawmakers a good idea of how much money they have to spend .
But because of the coronavirus , the state delayed the tax filing deadline until July 15 .
That ’ s why Assembly Speaker Anthony Rendon said “ all the budget plans being discussed acknowledge the possibility that more difficult cuts will be necessary.
” Lawmakers must approve an operating budget by June 15 .
If they don @ @ @ @ @ @ @ they don ’ t get paid .
But whatever the Legislature passes , the governor has the authority to either sign it into law or veto all or parts of it .
Legislative leaders will negotiate with Newsom over the next few days , which could lead to changes .
Newsom ’ s budget is prepared by the California Department of Finance .
Wednesday , spokesman H.D .
Palmer called the legislative plan “ progress ” and said both sides will continue their discussions to reach an agreement that balances the budget while @ @ @ @ @ @ @ to maintain core services.
” Comments from legislative leaders suggest they won ’ t bend on the cuts to education and other programs .
“ Our economy has been pummeled by COVID-19 , but thanks to a decade of pragmatic budgeting , we can avoid draconian cuts to education and critical programs , or broad middle-class tax increases , ” said Senate President Pro Tem Toni Atkins , of San Diego .
The legislative plan announced Wednesday also would : — Reject Newsom ’ s proposal to slash $ 119 million from a @ @ @ @ @ @ @ of nursing homes .
— Offer government-funded health insurance to low-income adults 65 and older who are living in the country illegally , but not until 2022 .
— Expand the state ’ s earned income tax credit to immigrants with at least one child age 6 or younger .
— Give $ 350 million to local government to pay for homeless services .
— Pensions , by far the biggest cost for a profligate state like California , are not just uncut , but unmentioned .
Right there you know that this @ @ @ @ @ @ @ Instead of accepting some of the governor ’ s proposed spending cuts , the legislature increased spending on a bunch of things and “ paid ” for it like this : “ Instead of cutting money for public schools , lawmakers agreed to delay $ 9 billion in payments to districts .
That would give school districts permission to go ahead and spend the money and have the state pay them back in a future budget year.
” It ’ s clear that the needed cuts are political poison and will therefore never @ @ @ @ @ @ @ charade designed to frame the state ’ s coming demand for an epic federal bailout .
The country is thus left with two alternatives : 1 ) Have states like California cut services to the point where very little education , healthcare or public safety is actually provided , leaving such places looking a lot like today ’ s Venezuela .
Or… 2 ) Have the federal government create several trillion more dollars out of thin air and hand them more-or-less directly to public sector pensioners with no real benefit for public services @ @ @ @ @ @ @ on national finances and , yes , the value of the dollar – might leave the entire US looking like today ’ s Venezuela .
Either way , the descent from the illusion of prosperity to the reality of bankruptcy continues .
Click here for the other articles in this series .

BY JOHN RUBINO
Just a few months ago, California was running surpluses and spreading the wealth around — at least to its affluent voters and public sector employees — as if the good times were here to stay.
Fast forward to the present and it’s all over. Tech stock IPOs – a huge source of capital gains tax revenue for the home of Silicon Valley – have evaporated. Those “unicorn” companies – not yet public but worth over a billion dollars each – are doing “down rounds” that value them as the risky start-ups most of them are. The formerly booming housing market has ground to a halt. And millions of service industry businesses like restaurants and nightclubs have closed permanently.
But the state government still has to pretend to balance its books, so now comes the tragicomedy of negotiations between the governor and state legislators over where to find the needed $50+ billion. Here’s how the Associated Press covers it in an article bafflingly titled California lawmakers agree to close $54.3 billion budget gap:
SACRAMENTO, Calif. (AP) — California’s Legislative leaders on Wednesday rejected billions of dollars in budget cuts to public schools and health care services that Gov. Gavin Newsom had proposed, setting up a fight with the governor over how to close the state’s estimated $54.3 billion budget deficit. Flush with cash just six months ago, California’s revenues have plummeted since March after Newsom ordered everyone to stay home to slow the spread of the coronavirus. Since then, more than 5 million people have filed for unemployment benefits. Newsom, a Democrat, and the state’s Democratic-dominated Legislature have pleaded with Congress to send the state more money to help cover that shortfall — so far without success. Last month, Newsom proposed a new spending plan that would cut billions from public schools and eliminate some health benefits for people unless Congress sent the state more money by July 1. But the 2020-2021 budget plan legislative leaders announced Wednesday rejected those cuts. Instead of cutting money for public schools, lawmakers agreed to delay $9 billion in payments to districts. That would give school districts permission to go ahead and spend the money and have the state pay them back in a future budget year. The state has done this before during previous recessions, but never this much at one time. Newsom’s plan also would have saved money by eliminating some health benefits for low-income adults and children and making fewer older adults eligible for government-funded health insurance. The Legislature rejected those cuts because they think Newsom overestimated by about $4 billion how much it will cost to pay for the state’s health insurance programs. Still, much of the budget proposal is just a guess. In a normal year, most Californians would have filed their state tax returns by now, giving lawmakers a good idea of how much money they have to spend. But because of the coronavirus, the state delayed the tax filing deadline until July 15. That’s why Assembly Speaker Anthony Rendon said “all the budget plans being discussed acknowledge the possibility that more difficult cuts will be necessary.” Lawmakers must approve an operating budget by June 15. If they don’t, the state constitution says they don’t get paid. But whatever the Legislature passes, the governor has the authority to either sign it into law or veto all or parts of it. Legislative leaders will negotiate with Newsom over the next few days, which could lead to changes. Newsom’s budget is prepared by the California Department of Finance. Wednesday, spokesman H.D. Palmer called the legislative plan “progress” and said both sides will continue their discussions to reach an agreement that balances the budget while “advancing our efforts for federal support to maintain core services.” Comments from legislative leaders suggest they won’t bend on the cuts to education and other programs. “Our economy has been pummeled by COVID-19, but thanks to a decade of pragmatic budgeting, we can avoid draconian cuts to education and critical programs, or broad middle-class tax increases,” said Senate President Pro Tem Toni Atkins, of San Diego. The legislative plan announced Wednesday also would: — Reject Newsom’s proposal to slash $119 million from a program that helps keep 45,000 people out of nursing homes. — Offer government-funded health insurance to low-income adults 65 and older who are living in the country illegally, but not until 2022. — Expand the state’s earned income tax credit to immigrants with at least one child age 6 or younger. — Close two state prisons “with legislative guidance.” — Give $350 million to local government to pay for homeless services.
Notice a few things:
— Pensions, by far the biggest cost for a profligate state like California, are not just uncut, but unmentioned. Right there you know that this is not a serious effort.
— Instead of accepting some of the governor’s proposed spending cuts, the legislature increased spending on a bunch of things and “paid” for it like this: “Instead of cutting money for public schools, lawmakers agreed to delay $9 billion in payments to districts. That would give school districts permission to go ahead and spend the money and have the state pay them back in a future budget year.”
We are primarily funded by readers. Please subscribe and donate to support us!
It’s clear that the needed cuts are political poison and will therefore never happen. Which makes these negotiations a charade designed to frame the state’s coming request demand for an epic federal bailout.
The country is thus left with two alternatives:
1) Have states like California cut services to the point where very little education, healthcare or public safety is actually provided, leaving such places looking a lot like today’s Venezuela. Or…
2) Have the federal government create several trillion more dollars out of thin air and hand them more-or-less directly to public sector pensioners with no real benefit for public services – which, given the likely impact on national finances and, yes, the value of the dollar – might leave the entire US looking like today’s Venezuela.
Either way, the descent from the illusion of prosperity to the reality of bankruptcy continues.
Click here for the other articles in this series.


investmentwatchblog--2020-06-05--Beijing squeezes, and HSBC knows where it makes most of its money. Standard Chartered, another UK ba

Beijing squeezes, and HSBC knows where it makes most of its money. Standard Chartered, another UK bank, did the same.

Global banking behemoth HSBC threw its full weight behind China ’ s imposition of security legislation on Hong Kong , arguing that the new law will help bring much-needed political stability and economic growth and development to the city .
The bank ’ s kowtowing to Beijing is the inevitable culmination of the UK-based lender ’ s multiyear Asian re-pivot , but it also risks attracting U.S. ire .
And if recent history is any indication , that tends not to end happily for global lenders .
In a post on one of HSBC ’ s social media accounts in @ @ @ @ @ @ @ head Peter Wong signed a petition backing the law .
“ HSBC respects and supports any laws that stabilize the social order in Hong Kong and revitalize economic prosperity and development in Hong Kong , ” Wong said in the post .
Mr. Wong ’ s comments were quickly seconded by the institution he represents .
Asked to comment on the social media post , an HSBC spokeswoman in London said : “ We respect and support laws and regulations that will enable Hong Kong to recover and rebuild the economy and , @ @ @ @ @ @ @ principle of ‘ one country two systems.
’ ” The governments of the U.S. , the UK and their five-eye partners , Australia , Canada , and New Zealand , would beg to differ .
They assert that China ’ s new security law obliterates the one country , two systems principle , “ dramatically eroding , ” in the words of UK Premier Boris Johnson , the partial autonomy Hong Kong was granted when London handed back control of the city to Beijing in 1997 .
Yesterday , Johnson offered refuge to @ @ @ @ @ @ @ , which is unlikely to have gone down well in Beijing .
Relations between the UK and China have not been this strained for decades .
Until recently , the UK government had viewed China as a key strategic partner in its post-Brexit future .
At Davos in 2016 , the then Chancellor of the Exchequer George Osborne said the UK wanted to be China ’ s best partner in the West .
As part of this charm offensive , Downing Street awarded the tender to design and build a number of nuclear @ @ @ @ @ @ @ China ’ s state-owned General Nuclear Power Group and France ’ s EDF .
Chinese participation in one of those projects , Sizewell C , is now being reconsidered .
But the British banks and companies that depend on Hong Kong and mainland China for most of their revenues and profits do not have that luxury .
They are stuck where they are and they know what side their bread is buttered on .
Just in case they forgot , former Hong Kong chief executive Leung Chun-ying was on hand last week to @ @ @ @ @ @ @ the pro-Beijing former apparatchik urged everyone with HSBC bank accounts , particularly HK officials and HK delegates to the legislative and consultative bodies in the mainland , to stop using them , until the bank made its position clear on China ’ s security law , which it did five days later .
On the same day , fellow British bank that is heavily invested in China and Hong Kong , Standard Chartered , did the same .
That declaration will have pleased Beijing and its loyalists in Hong Kong no end , @ @ @ @ @ @ @ the bank ’ s traditional customers that have more separatist leanings .
It is also likely to infuriate ministers in London and further strain the lender ’ s relations with the U.S. , where authorities in 2012 slapped it on the wrist after being found guilty of breaching sanctions and laundering money for Mexican drug cartels .
US regulators have hit HSBC with $ 5.5 billion in fines since 2012 for a laundry list of offenses , including money laundering .
Headquartered in London , regulated by the Bank of England and generally @ @ @ @ @ @ @ bank by assets , HSBC is in reality first and foremost an Asian bank .
It ’ s in Hong Kong , the city where it first cut its teeth over 150 years ago , that the lion ’ s share of its business is done .
The city accounted for 35 % of HSBC ’ s revenues and 60 % of its global pretax income in 2019 .
Throw in mainland China and it reaches 75 % .
But Hong Kong ’ s local economy is now in the throes of its @ @ @ @ @ @ @ from the combined impact of over a year of political unrest , protracted trade war , and the coronavirus .
That is bad news for HSBC , for whom commercial real estate in the city accounts for 45 % of its total group equity , according to analysts at Jefferies .
Hong Kong ’ s commercial real estate market is already under huge pressure after mainland Chinese investors stopped buying a couple of months ago .
Now there are concerns that China ’ s plan to impose national security legislation could trigger a @ @ @ @ @ @ @ .
Until this week HSBC , like so many Hong Kong-based businesses , had tried to stay above the fray of politics , even while the city was roiled by political unrest last year .
It refused to criticize the pro-sovereignty protests out of fear of alienating many of its customers .
But it also had to keep Beijing on side , which probably explains why the lender shut down an account used to finance protest-related causes late last year , after which protesters vandalized some of its bank branches .
Keeping Beijing @ @ @ @ @ @ @ done when Beijing is engaged in an escalating trade war with Washington , to whom HSBC is also heavily indebted thanks to the deferred prosecution agreement it was gifted by the DOJ in 2012 , after being found guilty of breaching sanctions and laundering money for Mexican drug cartels .
Last year , HSBC paid off part of that debt by ratting out Chinese telecoms giant Huawei to U.S. authorities for breaching U.S. sanctions on Iran .
But in doing that , it infuriated Beijing , which threatened to place the bank on @ @ @ @ @ @ @ , ” which would have cut the lender off from its biggest market .
In the end , that didn ’ t happen and since then , HSBC has further cemented its position as the biggest Western bank in China .
But every now and then , the bank is given a not-so-gentle reminder about who ’ s boss : “ HSBC ’ s profits mainly come from China , but the board of directors and senior management are almost all British , ” wrote Leung Chunying in a Facebook post , adding @ @ @ @ @ @ @ should not be taken for granted .
Its China business could be “ replaced overnight ” by Chinese or other overseas banks .
That ’ s the threat it faces in the East .
In the West time will tell what sort of a whirlwind it ’ s latest actions will reap .
By Nick Corbishley , for WOLF STREET .

Global banking behemoth HSBC threw its full weight behind China’s imposition of security legislation on Hong Kong, arguing that the new law will help bring much-needed political stability and economic growth and development to the city. The bank’s kowtowing to Beijing is the inevitable culmination of the UK-based lender’s multiyear Asian re-pivot, but it also risks attracting U.S. ire. And if recent history is any indication, that tends not to end happily for global lenders.
In a post on one of HSBC’s social media accounts in China, the bank’s Asia-Pacific head Peter Wong signed a petition backing the law. “HSBC respects and supports any laws that stabilize the social order in Hong Kong and revitalize economic prosperity and development in Hong Kong,” Wong said in the post.
Mr. Wong’s comments were quickly seconded by the institution he represents. Asked to comment on the social media post, an HSBC spokeswoman in London said: “We respect and support laws and regulations that will enable Hong Kong to recover and rebuild the economy and, at the same time, maintain the principle of ‘one country two systems.’”
The governments of the U.S., the UK and their five-eye partners, Australia, Canada, and New Zealand, would beg to differ. They assert that China’s new security law obliterates the one country, two systems principle, “dramatically eroding,” in the words of UK Premier Boris Johnson, the partial autonomy Hong Kong was granted when London handed back control of the city to Beijing in 1997. Yesterday, Johnson offered refuge to up to 3 million Hong Kong citizens, which is unlikely to have gone down well in Beijing.
Relations between the UK and China have not been this strained for decades. Until recently, the UK government had viewed China as a key strategic partner in its post-Brexit future. At Davos in 2016, the then Chancellor of the Exchequer George Osborne said the UK wanted to be China’s best partner in the West. As part of this charm offensive, Downing Street awarded the tender to design and build a number of nuclear power stations to a consortium led by China’s state-owned General Nuclear Power Group and France’s EDF. Chinese participation in one of those projects, Sizewell C, is now being reconsidered.
But the British banks and companies that depend on Hong Kong and mainland China for most of their revenues and profits do not have that luxury. They are stuck where they are and they know what side their bread is buttered on. Just in case they forgot, former Hong Kong chief executive Leung Chun-ying was on hand last week to remind them. In a Facebook post the pro-Beijing former apparatchik urged everyone with HSBC bank accounts, particularly HK officials and HK delegates to the legislative and consultative bodies in the mainland, to stop using them, until the bank made its position clear on China’s security law, which it did five days later.
On the same day, fellow British bank that is heavily invested in China and Hong Kong, Standard Chartered, did the same.
That declaration will have pleased Beijing and its loyalists in Hong Kong no end, but it could also alienate many of the bank’s traditional customers that have more separatist leanings. It is also likely to infuriate ministers in London and further strain the lender’s relations with the U.S., where authorities in 2012 slapped it on the wrist after being found guilty of breaching sanctions and laundering money for Mexican drug cartels. US regulators have hit HSBC with $5.5 billion in fines since 2012 for a laundry list of offenses, including money laundering.
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Headquartered in London, regulated by the Bank of England and generally considered to be Europe’s biggest bank by assets, HSBC is in reality first and foremost an Asian bank. It’s in Hong Kong, the city where it first cut its teeth over 150 years ago, that the lion’s share of its business is done. The city accounted for 35% of HSBC’s revenues and 60% of its global pretax income in 2019. Throw in mainland China and it reaches 75%.
But Hong Kong’s local economy is now in the throes of its deepest recession on record as it reels from the combined impact of over a year of political unrest, protracted trade war, and the coronavirus. That is bad news for HSBC, for whom commercial real estate in the city accounts for 45% of its total group equity, according to analysts at Jefferies. Hong Kong’s commercial real estate market is already under huge pressure after mainland Chinese investors stopped buying a couple of months ago. Now there are concerns that China’s plan to impose national security legislation could trigger a flight of capital out of the city.
Until this week HSBC, like so many Hong Kong-based businesses, had tried to stay above the fray of politics, even while the city was roiled by political unrest last year. It refused to criticize the pro-sovereignty protests out of fear of alienating many of its customers. But it also had to keep Beijing on side, which probably explains why the lender shut down an account used to finance protest-related causes late last year, after which protesters vandalized some of its bank branches.
Keeping Beijing on your side is easier said than done when Beijing is engaged in an escalating trade war with Washington, to whom HSBC is also heavily indebted thanks to the deferred prosecution agreement it was gifted by the DOJ in 2012, after being found guilty of breaching sanctions and laundering money for Mexican drug cartels.
Last year, HSBC paid off part of that debt by ratting out Chinese telecoms giant Huawei to U.S. authorities for breaching U.S. sanctions on Iran. But in doing that, it infuriated Beijing, which threatened to place the bank on its black list of “unreliable entities,” which would have cut the lender off from its biggest market. In the end, that didn’t happen and since then, HSBC has further cemented its position as the biggest Western bank in China.
But every now and then, the bank is given a not-so-gentle reminder about who’s boss: “HSBC’s profits mainly come from China, but the board of directors and senior management are almost all British,” wrote Leung Chunying in a Facebook post, adding that the bank’s lucrative position should not be taken for granted. Its China business could be “replaced overnight” by Chinese or other overseas banks.
That’s the threat it faces in the East. In the West time will tell what sort of a whirlwind it’s latest actions will reap. By Nick Corbishley, for WOLF STREET.


investmentwatchblog--2020-06-05--Options (put/call) went from end of world to euphoria

Options ( put/call ) went from end of world to euphoria pic.twitter.com/QapkwUkM2L

Options (put/call) went from end of world to euphoria pic.twitter.com/QapkwUkM2L
— Win Smart, CFA (@WinfieldSmart) June 4, 2020


investmentwatchblog--2020-06-05--This feels a lot like late-January 2020

This feels a lot like late-January 2020

QQQ is at ATH , multiples are expanding , and autists are calling to buy MSFT 200 calls .
Now , I ’ m not a 🌈 🐻 , but I ’ d be remiss not to point out how similar the market and general news cycle are to earlier in the year – just replace the Tesla surge with Zoom and you have an almost perfect parallel .
Remember when Australia was burning and everyone thought we would declare war on Iran ?
Feels like a lifetime ago .
But beyond the similarities in civil unrest , we ’ @ @ @ @ @ @ @ coronavirus cases .
This will probably become significantly worse as social distancing restrictions are reduced and protests continue .
I mean , lets be honest – most people have the attention-span of goldfish , and the coronavirus has already ( mostly ) slipped out of the mainstream news cycle .
Yeah , protesters are wearing masks , but does this look like proper social distancing to you ?
Add to this the fact that the largest of these protests are taking place in cities that were already considered epicenters of outbreaks .
It @ @ @ @ @ @ @ attention shifted , everyone conveniently forgot that we ’ re in the midst of a global pandemic .
Ironically , I bet many of the folks participating in closely compacted protests are the same ones who would chastise you for not following proper “ social distancing ” a month or two ago ; but I digress .
I just don ’ t see a reality where we don ’ t see a resurgence in cases and the need for a second quarantine .
It certainly fits the narrative that there will be a @ @ @ @ @ @ @ Spanish Flu .
Add to this the parallel in media coverage of the virus between now and January , where back then everybody knew about it , but it was dismissed as a China problem ( Wuhan virus anybody ? )
or “ just the flu ” .
I hope to God I ’ m wrong , but the narrative and parallels are almost too compelling .
tldr : will probably put some money in deep OTM QQQ or SPY puts for Aug/Sep .
Idk… Disclaimer : This information is only for educational @ @ @ @ @ @ @ decisions based on the information in this article .
Do you own due diligence .

by CPAyeLmao
QQQ is at ATH, multiples are expanding, and autists are calling to buy MSFT 200 calls.
Now, I’m not a 🌈 🐻, but I’d be remiss not to point out how similar the market and general news cycle are to earlier in the year – just replace the Tesla surge with Zoom and you have an almost perfect parallel. Remember when Australia was burning and everyone thought we would declare war on Iran? Feels like a lifetime ago.
But beyond the similarities in civil unrest, we’re also seeing dramatic upticks in reported coronavirus cases. This will probably become significantly worse as social distancing restrictions are reduced and protests continue. I mean, lets be honest – most people have the attention-span of goldfish, and the coronavirus has already (mostly) slipped out of the mainstream news cycle. Yeah, protesters are wearing masks, but does this look like proper social distancing to you? Add to this the fact that the largest of these protests are taking place in cities that were already considered epicenters of outbreaks. It’s like as soon as media attention shifted, everyone conveniently forgot that we’re in the midst of a global pandemic. Ironically, I bet many of the folks participating in closely compacted protests are the same ones who would chastise you for not following proper “social distancing” a month or two ago; but I digress.
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I just don’t see a reality where we don’t see a resurgence in cases and the need for a second quarantine. It certainly fits the narrative that there will be a second deadlier wave, to mirror the Spanish Flu. Add to this the parallel in media coverage of the virus between now and January, where back then everybody knew about it, but it was dismissed as a China problem (Wuhan virus anybody?) or “just the flu”.
I hope to God I’m wrong, but the narrative and parallels are almost too compelling.
tldr: will probably put some money in deep OTM QQQ or SPY puts for Aug/Sep. Idk…
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.


investmentwatchblog--2020-06-05--Italian trader loses his ‘entire life savings’ on one insanely risky position

This year ’ s been a real grind for Luckin Coffee LK , investors .
At one point , Lone @ @ @ @ @ in stock to lead all hedge funds covered by Insider Monkey .
DSAM Partners had @ @ @ @ @ Melvin Capital , Renaissance Tech and Tybourne Capital were also bullish on the company , @ @ @ @ @ So when the stock , which was already down 89 % for the year , @ @ @ @ @ in April amid an investigation into financial misconduct , the losses were felt far and @ @ @ @ @ investor with a PG-13 Reddit name took a particularly grievous hit .
Yes , StopFapForever @ @ @ @ @ a 28-year-old Italian , shared his brutal market mistake with the bunch on WallStreetBets .
@ @ @ @ @ on Luckin and lost his entire life savings in the process .
“ Now I @ @ @ @ @ ” he wrote , posting this screenshot of the carnage :

www.marketwatch.com/story/italian-trader-loses-his-entire-life-savings-on-one-insanely-risky-position-2020-06-03
This year’s been a real grind for Luckin Coffee LK, investors. At one point, Lone Capital held $367 million in stock to lead all hedge funds covered by Insider Monkey. DSAM Partners had $146.2 million worth. Melvin Capital, Renaissance Tech and Tybourne Capital were also bullish on the company, according to Yahoo Finance.
So when the stock, which was already down 89% for the year, had its trading halted back in April amid an investigation into financial misconduct, the losses were felt far and wide.
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But one retail investor with a PG-13 Reddit name took a particularly grievous hit.
Yes, StopFapForever, who claims to be a 28-year-old Italian, shared his brutal market mistake with the bunch on WallStreetBets. He apparently he went all-in on Luckin and lost his entire life savings in the process. “Now I’m broke af,” he wrote, posting this screenshot of the carnage:


investmentwatchblog--2020-06-05--Greed is through the roof.

Greed is through the roof.

by jbray1
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19 stocks in the S&P 1500 were up over 30% TODAY. — Bespoke (@bespokeinvest) June 5, 2020
Hello rational traders let the Robinhood rub your nose into it t.co/9udoI8qeIv — Sunchartist (@sunchartist) June 5, 2020
Analyst: "It's a zero." PM: "What's the catalyst?" Analyst: "They filed for bankruptcy." PM: "Yeah, but what will make the stock drop?" — The Hard 17 (@davidmarchorn) June 5, 2020


investmentwatchblog--2020-06-05--The Federal Reserve’s Balance Sheet changes as of June 3, 2020

Scroll down to 4 .
Consolidated Statement of Condition of All Federal Reserve Banks The takeaways are the following : @ @ @ @ @ in US treasury securities over the last week .
The total amount of treasuries in @ @ @ @ @ $ 5.9T No change in the amount of commercial paper .
The total amount of @ @ @ @ @ sheet stands at $ 12.7B The fed bought $ 1.3B in US corporate bonds ETFs @ @ @ @ @ The total amount of corporate bond ETFs in the balance sheet stands at $ 36.1B @ @ @ @ @ balance sheet was established : A municipal credit facility .
The fed bought $ 16.0B @ @ @ @ @ week .

www.federalreserve.gov/releases/h41/current/
Scroll down to 4. Consolidated Statement of Condition of All Federal Reserve Banks
The takeaways are the following:
The fed bought $24B in US treasury securities over the last week. The total amount of treasuries in the balance sheet stands at $5.9T
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No change in the amount of commercial paper. The total amount of commercial paper in the balance sheet stands at $12.7B
The fed bought $1.3B in US corporate bonds ETFs over the last week. The total amount of corporate bond ETFs in the balance sheet stands at $36.1B
A new addition to the balance sheet was established: A municipal credit facility. The fed bought $16.0B worth of municipal bonds last week.


investmentwatchblog--2020-06-05--The Economic Pain That the Unemployment Rate Leaves Out (27% Adjusted Unemployment Rate)… American B

The Economic Pain That the Unemployment Rate Leaves Out (27% Adjusted Unemployment Rate)… American Business bankruptcies Rose 48 Percent in May

The Department of Labor announced Friday that with a “ limited resumption of economic activity , ” 13.3 percent of Americans were unemployed in May .
Though still high by historical standards , that ’ s down from 14.7 percent in April , and a pleasant surprise to many economists , who were expecting a figure closer to 20 percent .
But this statistic doesn ’ t tell the whole unemployment story .
That is true even in ordinary times , and more so in view of the pandemic ’ s effect on the labor market , which has made @ @ @ @ @ @ @ of economic hardship .
“ The unemployment rate itself is significantly going to understate the drop in economic activity , ” said Stephanie Aaronson , the director of economic studies at the Brookings Institution .
“ It also is underestimating the amount of distress that Americans are facing right now because it understates how many people have lost jobs.
” Here ’ s what the unemployment rate would look like if it were expanded to include more workers who have been hurt during the pandemic .
The headline unemployment rate is calculated by @ @ @ @ @ @ @ by the total number of people in the labor force , employed and unemployed .
( The rate shown here is not seasonally adjusted , which is why it ’ s slightly different from the headline Labor Department number . )
This rate includes 15 million workers who expect to be recalled back to their jobs , as well as those on permanent layoff , job leavers , new entrants and re-entrants to the labor force .
But there are millions of people who are not working and want a job that this @ @ @ @ @ @ @ counted as unemployed , workers who are not on temporary layoff must indicate that they have looked for work in the past four weeks .
The Department of Labor releases an expanded unemployment rate called the U-6 that captures some of these workers , those considered “ marginally attached ” to the labor force because they have looked for a job in the past year .
If we add those workers to our expanded unemployment rate , it increases to 14.2 percent .
But the pandemic is causing many people not to look @ @ @ @ @ @ @ sick or responsibilities like caring for children .
If we include all those people who say they want a job , regardless of their job hunt status , the rate increases to 17.9 percent .
Bankruptcies declared by businesses in the U.S. rose nearly 50 percent in May , as the economy continues to feel the sting of the coronavirus pandemic .
In May alone , 722 businesses across the country filed for chapter 11 bankruptcy , according to legal-services firm Epiq Global , The Wall Street Journal says .
That ’ s @ @ @ @ @ @ @ when 487 businesses filed for chapter 11 .
Since March and the onset of the pandemic , the U.S. economy has taken a nosedive , shedding over 40 million jobs and ballooning the country ’ s unemployment rate .
Some good news came Friday morning , when the Bureau of Labor Statistics announced in a huge surprise that the economy added jobs in May and that the unemployment rate fell .
Congress has passed multiple coronavirus stimulus packages cumulating in trillions of dollars , but many industries such as service and airlines are @ @ @ @ @ @ @ “ Hotels are not going to bounce back quickly .
You ’ re going to see a long-term effect on office space , ” Deborah Williamson , a San Antonio bankruptcy lawyer , told the Journal .
“ The consequence of the quarantine around the world…It ’ s not going to magically go away as you reopen .
”

www.nytimes.com/interactive/2020/06/05/upshot/what-the-pandemic-unemployment-rate-leaves-out.html
The Department of Labor announced Friday that with a “limited resumption of economic activity,” 13.3 percent of Americans were unemployed in May. Though still high by historical standards, that’s down from 14.7 percent in April, and a pleasant surprise to many economists, who were expecting a figure closer to 20 percent.
But this statistic doesn’t tell the whole unemployment story. That is true even in ordinary times, and more so in view of the pandemic’s effect on the labor market, which has made this figure particularly incomplete as a measure of economic hardship.
“The unemployment rate itself is significantly going to understate the drop in economic activity,” said Stephanie Aaronson, the director of economic studies at the Brookings Institution. “It also is underestimating the amount of distress that Americans are facing right now because it understates how many people have lost jobs.”
Here’s what the unemployment rate would look like if it were expanded to include more workers who have been hurt during the pandemic.
The headline unemployment rate is calculated by taking the number of unemployed adults divided by the total number of people in the labor force, employed and unemployed. (The rate shown here is not seasonally adjusted, which is why it’s slightly different from the headline Labor Department number.)
This rate includes 15 million workers who expect to be recalled back to their jobs, as well as those on permanent layoff, job leavers, new entrants and re-entrants to the labor force.
But there are millions of people who are not working and want a job that this rate leaves out. To be officially counted as unemployed, workers who are not on temporary layoff must indicate that they have looked for work in the past four weeks.
The Department of Labor releases an expanded unemployment rate called the U-6 that captures some of these workers, those considered “marginally attached” to the labor force because they have looked for a job in the past year. If we add those workers to our expanded unemployment rate, it increases to 14.2 percent.
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But the pandemic is causing many people not to look for work because of fears about getting sick or responsibilities like caring for children. If we include all those people who say they want a job, regardless of their job hunt status, the rate increases to 17.9 percent.
thehill.com/policy/finance/501290-american-business-bankruptcies-rose-48-percent-in-may
Bankruptcies declared by businesses in the U.S. rose nearly 50 percent in May, as the economy continues to feel the sting of the coronavirus pandemic.
In May alone, 722 businesses across the country filed for chapter 11 bankruptcy, according to legal-services firm Epiq Global, The Wall Street Journal says. That’s up 48 percent from May 2019, when 487 businesses filed for chapter 11.
Since March and the onset of the pandemic, the U.S. economy has taken a nosedive, shedding over 40 million jobs and ballooning the country’s unemployment rate.
Some good news came Friday morning, when the Bureau of Labor Statistics announced in a huge surprise that the economy added jobs in May and that the unemployment rate fell.
Congress has passed multiple coronavirus stimulus packages cumulating in trillions of dollars, but many industries such as service and airlines are still struggling to regain their footing.
“Hotels are not going to bounce back quickly. You’re going to see a long-term effect on office space,” Deborah Williamson, a San Antonio bankruptcy lawyer, told the Journal. “The consequence of the quarantine around the world…It’s not going to magically go away as you reopen.”