What A Weird Recession...

wallyj84

Superior Member
Joined
Jul 23, 2008
Posts
7,023
Media
0
Likes
3,954
Points
333
Location
United States
More Space, Please: Home Sales Booming Despite Pandemic, Recession

Is this the calm before the storm or a new example of income inequality?

I feel like we're about to fall off a cliff, but I also wonder if this just isn't the new normal. Perhaps this is the final stage of income inequality, where the working class and lower middle class suffer, the true middle class (barely) survive and the upper classes thrive.
 
  • Like
Reactions: keenobserver

keenobserver

Worshipped Member
Joined
Jan 9, 2015
Posts
8,550
Media
0
Likes
13,945
Points
433
Location
east coast usa
Sexuality
100% Gay, 0% Straight
Gender
Male
It is a weird time, especially housing and car sales. My mostly rural / rust belt town of retirees is seeing real estate sales at a record place - some of it driven by folks from Washington D.C. and other DC metro areas relocating to here because they are now telecommuting. We also are getting a few sales a year from English citizens who specifically want an out of their country extra home where there are few Muslims. Ironically, our Muslim population is slowly ticking up and a mosque is being discussed, as many Christian churches fold due to a lack of members.

Used car sales are through the roof here. Even the dealers are shocked. Some shops have folded - for good, others are still closed but hoping to regroup. Shortages at the supermarket are rarer - a item here or there - for the first time sine this started the mega packs of paper towels and toilet paper (the extra fluffy brand, thank you) are back on the shelves consistently. Only Clorox products seem to be in short supply. Restaurants are lying about their social distancing policies. Two popular spots nearby were packed to the gills this weekend - an no one was eating outside in 90 degree heat. Still a lot of unemployment.

Here at least it feels like we have a long, long way to go.
 

kidfresh512

Legendary Member
Joined
Jun 3, 2009
Posts
432
Media
0
Likes
1,373
Points
323
Location
Texas
Sexuality
100% Gay, 0% Straight
Gender
Male
Watch out for more and more layoffs too as the moratorium that companies had to abide by for the Pandemic related loans ends in the next little bit. Airlines will lay off tens of thousands as soon as the date passes.

My cousin already took the voluntary package and got out of United before the mass layoffs.
 
  • Like
Reactions: keenobserver

wallyj84

Superior Member
Joined
Jul 23, 2008
Posts
7,023
Media
0
Likes
3,954
Points
333
Location
United States
Watch out for more and more layoffs too as the moratorium that companies had to abide by for the Pandemic related loans ends in the next little bit. Airlines will lay off tens of thousands as soon as the date passes.

My cousin already took the voluntary package and got out of United before the mass layoffs.

More layoffs are coming and many of the jobs currently gone will stay gone. But, when will this affect the economy? Are we in a situation where a significant portion of the economy is just unaffected by a huge portion of the population struggling? This is becoming a "have and have not" economy to the extreme.
 

halcyondays

Worshipped Member
Joined
Feb 22, 2014
Posts
6,359
Media
2
Likes
10,359
Points
158
Location
US
Sexuality
80% Straight, 20% Gay
Gender
Male
Houses are selling because the Federal Reserve has lowered interest rates almost to zero and money is cheap to borrow. Lots of people paying high rates for rent are buying homes instead.

The Fed is also doing unlimited Quantitative Easing. So far this year they have printed $3 trillion (electronically) and used it to buy stocks, bonds and treasuries (government debt) propping up the securities (stock) market. If the covid epidemic drags on like this they expect to print and spend as much as $10-12 trillion to continue propping up Wall Street.

Result: during the 2020 Trump Slump the Dow lost 9,000 points dropping from 28,000 to 19,000. It has now recovered all 9,000 points and is back above 28,000 even though the economy has tanked and will continue tanking.

The Federal Reserve did the same during the Great Recession after the 2008-9 economic collapse. They printed and spent almost $5 trillion then. If they ever try to dump these stocks/bonds/treasuries back on the market it will collapse.

The stock market does not reflect economic reality. Hasn't for a long, long time. it is a house of cards.

This is why the recession is weird.