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Deadlines for US government

Photo by Jon Tyson on Unsplash


I don't know what is worse: the whole pandemic provoked by the corona virus or the consequence of shutting down businesses due to the risk of contaminating their customers?

There are industries where people are clustered together, where you have to be close to your client:
  • airlines
  • hospitality (Disney, cruises)
  • entertaining industry
  • restaurants, fast food establishments, wineries, breweries
  • anything related to well being and not health care
As I outlined in a different post, year 2020 is essential for US presidential elections. Mr. Trump understands the whole economic factor is so important to get elected a second term. With the forced close down of the major economic sectors (car manufacturing, industrial manufacturing, airlines, entertaining), the crisis in the health sector being overwhelmed by the peak of people admitted in ICU, banks hit by a slowed down economy, there is a perfect storm to bring his chances very down.

There is another economic tsunami in the oil industry, the OPEC consortium is in disarray as Russia and Saudi Arabia cannot agree of reducing the oil output, and, as a consequence, the oil price is the lowest in many, many years. Incidentally, all producers in North America are getting the blow and many cannot survive with a low oil price for a long period of time without financial support. A lot of people working in the industry are being laid off.

The stock market is at least 20-30% from its peak in February. At this moment, with all the rates going down, the stimulus on the way, the stock market is barely moving up from the doldrums.

In order to feel at least safe, the economy needs a few month of stability to start climbing again. It is a tall order to be able to do all the fixes in the remaining six months:

  1. stop the spread of the corona virus and find a way to control it
  2. revive the economy and absorb the current laid off people from airlines, oil&gas companies, banks, hospitality, entertaining industries
  3.  stop the spiraling down of economy due to the "social-distancing" requirements
  4. close the accord with China regarding the commerce imbalance
  5. revive the price of oil and establish a new order in OPEC
If you add the counter-acting play with the democratic nominee (probably Joe Biden), you will understand that some problems described above will get a cursory solution or will be completely overlooked.

Whose pockets are thin in these difficult time?
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