Record 20.5 million American jobs lost in April

[donbusch]

The US economy lost 20.5 million jobs in April, the Bureau of Labor Statistics said Friday — by far the most sudden and largest decline since the government began tracking the data in 1939. Unemployment rate is now 14.7% and likely to be higher due to undercounting of those who work in the gig economy, temporary layoffs and those who just lost their jobs.

Record 20.5 million American jobs lost in April. Unemployment rate soars to 14.7%

With much of the American economy in self-imposed shutdown to prevent the spread of coronavirus, April's colossal surge in unemployment was a historic disaster for workers.

www.cnn.com

While it is true that some of job losses might be reversed w/ the restarting of the economy, the looming threat of Covid-19 will mean many if not most of these job will not come back, and that’s not even counting the eventual wave of new infections coupled with the upcoming flu season in the fall.

 

[jalimon]

There are reports of 80 millions job losses in China. Now when you think of such job loss in countries that had near full employment just think about the outcome in less fortunate countries. Mexico, East Europe, pretty much all of Africa and South-America.

We are heading for one full year of near depression. I hope not more. People keep saying we need to re-open the economy... Sorry but it does not work that way at all. You do not 'open' the economy. We will go back to our regular habits that keeps the economy afloat once we know were safe.

I am also worried about the current divide between the market and the reality. I think it's still living on an artificial bubble right now where the big guns are pumping it up before they can pull out with less severe losses. The market will go down another 25-30%.

I am closely following the real estate market which will go down but not before another 6 months to a year. Hopefully coming back to where it was in 2022.

Of course I could be all wrong.

Cheers,

 

[CLOUD 500]

We are going to have The Greater Depression. Everything will be destroyed thanks to the government.

 

[Reppy]

We are going to have The Greater Depression. Everything will be destroyed thanks to the government.

and people for not caring about others due to their own selfishness

 

[jalimon]

Exactly Reppy but for many it’s easier to blame the gouvernment...

 

[donbusch]

If not for the Federal Reserve (one of the few competent parts of the US government)’s extreme & possibly illegal intervention in mid-March, the market would already be more than 50% down. While probably necessary, the end result is big companies & billionaires being bailed out at the taxpayers’ expense again.

Buffett cautions on 'extreme consequences' from the Fed's recent moves

Buffett praised the Fed for its actions to blunt the effects of the coronavirus but said he worries about the repercussions.

www.cnbc.com

I’m beyond worried about the economy which I think is gonna be in massive trouble until we get a vaccine or miracle therapeutic. My biggest fear right now, is social unrest as in massive riots

Most of the job losses are in low wage service sectors, these workers have seen flat wages since the 2008-9 Great Financial Crisis. Now the republicans are refusing to extend unemployment insurance and with the premature restart of the economy, they will be forced to choose between their health or a paycheck. Being allowed to work from home is a luxury for white collar workers.

Imagine what’s going to happen when these low wage service workers see each other falling ill or dying fr Covid-19 because of a crummy paycheck while their rich employers continue getting bailed out by the government. Not to mention that the African Americans & Hispanics dying of Covid-19 at disproportionately higher rates compared to all other ethnicities.

The coronavirus pandemic is hitting black and brown Americans especially hard on all fronts | CNN

Covid-19 has only magnified the systemic inequalities that persist in the United States. And nonwhite people, especially African-Americans, have been disproportionately affected.

www.cnn.com

Then there are those who can’t even get their low wage jobs back because their industries are no longer viable b/c of Covid-19 like the airlines, hotels, business travel, etc.

America has historically had a surprisingly high tolerance for income inequality but this time, all that anger, rage & resentment might very well overwhelm us all.

 

[jalimon]

We really think alike Donbusch. The inequality of the US always amazed me. Never understood how come the poor did not revolt years ago! Not only they did not but they helped elected a men who now fucked them in the ass!

I would love one rule to be instated is that a company that is being bailed out should be ever forbidden to buy back their own stock. We have seen it since 2008. Company got bailed to stay alive then years later when things were good doubled dip buying back their own stock to give even more billions to their shareholder. While the average worker got next to shit nothing...

 

[donbusch]

Jalimon, great minds think alike

A lot of people think that class warfare is outdated Marxist rubbish but America has never seen such high unemployment combined with a pandemic that is hitting the poor so hard. W/ social media & encrypted messaging apps like Telegram, it’s not that difficult to transform all that anger & resentment into large scale protests.

The media focuses a lot on crazy Trumpers but there’s also a significant undercurrent of crazy Bernie Bros. Anger & resentment can truly radicalize people. I have seen it first hand in Hong Kong where clueless students have morphed into hardened street warriors. The police have arrested, gassed, beaten them but these students will not back off. While heroic, they have also become so radicalized that there will be no compromise, their unofficial motto - “If we burn, you burn with us”.