Warning: The Second Wave Could Be A Tsunami
No, I am not here to warn you from the second wave of COVID-19, there is no need to do that, the psychological influence of the media took care of it.
Yes, I am here to warn you of a second serious economic wave that is getting closer to hitting our shores and devastating our cities. But before I continue my warning, let us go back briefly to the first wave of devastation and social destruction that has only received marginal attention.
The First Wave
The intentional failure of our government to respond adequately to the current outbreak, forced the economy into the long-overdue recession, except it made it worse by several magnitudes, resulting in nearly 40 million unemployment applications and 43% of near-bankruptcy small businesses. The government’s solution to this direct stab to the heart of the people’s economy was to wrap the wound with a band-aid of $1200 and numb the heart with a moratorium on evictions and foreclosures, unemployment insurance bonus and small businesses loans worth one month of payroll. Additionally, the government awarded the stabbers trillions of dollars from the stabbed money; the tax-payers money.
The Second Wave
The band-aid fell off a long time ago and the numbing agent is about to wear off in a few weeks. The 40 million unemployed Americans, and the 43% struggling small businesses, compose the perfect recipe for a second people’s economic meltdown. The moratorium on evictions and foreclosures is ending this month (June) and the unemployment bonus is going to dry out next month (July). This wave is coming from the real estate sector and it is expected to hit at least 50% of the unemployed people really hard then it is going to bounce back to disrupt the real estate market and consequently the banks. Will we see another bailout, stimulus checks, and more unemployment funds? I have not seen any movements in this direction. All the present signs lead me to expect a gradual but huge economic tsunami.
It is time to wake up!
Photo: by BIGTHHINK