Prices don't have to rise for things to be unaffordable if nobody has the money to buy them to begin with. The government sank trillions in ensuring "business as usual" for businesses, so while they might not be feeling the same pressure as consumers/real fucking people (yet), they sure will be when suddenly tens of millions of people are evicted because of the crisis, and many more default on credit and debt of one kind or another.
The economy is currently behaving like a cartoon character who ran off the edge of a cliff but hasn't looked down yet. It's too late and the catastrophe is inevitable, but thanks to the power of make believe it'll get a little further than it should.
Recessions last on the order of years. Businesses operate on quarterly reports, so they (more or less) need to get their shitty report for Q2, make some "adjustments" (layoffs and re-organization) in Q3, and then step it up with desperate layoffs going in Q4 and next year to keep the company in business.
Also Republicans dumped trillions into business aid to keep things looking ok on the books for now like others have mentioned.
The original CARES Act provided the Federal Reserve with $5t that they used to artificially prop up the stock market.
Between the election & the beginning of flu season, we're hitting new turbulence in the market. Wall Street needs a second bailout, but the Democrats do not want to give Trump a political win before the election.
The recession absolutely did hit. It's ongoing. Unemployment is higher now than at any point in the Great Recession.
The wealthiest 10% that own over 80% of stocks are worried.
Didn't this happen already in April? The stock market plummeted and shit? And then a recession didn't hit? I don't get it
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But like... how? Prices of commodoties haven't seemed to changed much, and obviously unemployment is super high but that was triggered by covid
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Prices don't have to rise for things to be unaffordable if nobody has the money to buy them to begin with. The government sank trillions in ensuring "business as usual" for businesses, so while they might not be feeling the same pressure as consumers/real fucking people (yet), they sure will be when suddenly tens of millions of people are evicted because of the crisis, and many more default on credit and debt of one kind or another.
The economy is currently behaving like a cartoon character who ran off the edge of a cliff but hasn't looked down yet. It's too late and the catastrophe is inevitable, but thanks to the power of make believe it'll get a little further than it should.
Recessions last on the order of years. Businesses operate on quarterly reports, so they (more or less) need to get their shitty report for Q2, make some "adjustments" (layoffs and re-organization) in Q3, and then step it up with desperate layoffs going in Q4 and next year to keep the company in business.
Also Republicans dumped trillions into business aid to keep things looking ok on the books for now like others have mentioned.
The original CARES Act provided the Federal Reserve with $5t that they used to artificially prop up the stock market.
Between the election & the beginning of flu season, we're hitting new turbulence in the market. Wall Street needs a second bailout, but the Democrats do not want to give Trump a political win before the election.
The recession absolutely did hit. It's ongoing. Unemployment is higher now than at any point in the Great Recession.