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No surprise here, DJIA futures are up 600 points this morning. This may not be sustainable as the day wears on and, IMO, it definitely is not sustainable over the next few weeks as if the market is on another bull run. It's not.
Both the Fed and IMF gave gloomy predictions for growth both remarking that the recovery is not as strong as anticipated and scars will last for years. Can't turn those lemons into lemonade. The reality is that developed economies are making progress and will continue to do so with both innovative technologies and brutal cost cutting - mostly in the labor departments. That is going to hurt consumer spending as jobs lost due to COVID won't come back and new jobs will be slow to develop.
Less developed economies will fare much worse and in every locale where there is political upheaval and social instability these problems will be made worse by the economic downturn. A few days ago I spoke of a rising underclass due to COVID's economic impact and the potential for this disaffected group - the have nots -to be galvanized to action directed against the haves by radical leftists.
Think about the idiocy of actually disbanding police departments if that is what "defunding" them actually means and I doubt that and an increase in crime and civil disorder where this happens. The gasoline is there and it only needs to find a torch to ignite it. That is why an otherwise wealthy corporate world that is going to survive and probably prosper going forward needs to address the risk of an enlarging group of disaffected, unemployed or underemployed citizens. I'd rather see responsible corporate action to address what I see as a significant risk to social order than to see it directed by increasingly radicalized governments. That is how governments will be characterized as a result of progressives and socialists getting elected to office by voters brain-washed by the dangerous false narrative of the left.
Both the Fed and IMF gave gloomy predictions for growth both remarking that the recovery is not as strong as anticipated and scars will last for years. Can't turn those lemons into lemonade. The reality is that developed economies are making progress and will continue to do so with both innovative technologies and brutal cost cutting - mostly in the labor departments. That is going to hurt consumer spending as jobs lost due to COVID won't come back and new jobs will be slow to develop.
Less developed economies will fare much worse and in every locale where there is political upheaval and social instability these problems will be made worse by the economic downturn. A few days ago I spoke of a rising underclass due to COVID's economic impact and the potential for this disaffected group - the have nots -to be galvanized to action directed against the haves by radical leftists.
Think about the idiocy of actually disbanding police departments if that is what "defunding" them actually means and I doubt that and an increase in crime and civil disorder where this happens. The gasoline is there and it only needs to find a torch to ignite it. That is why an otherwise wealthy corporate world that is going to survive and probably prosper going forward needs to address the risk of an enlarging group of disaffected, unemployed or underemployed citizens. I'd rather see responsible corporate action to address what I see as a significant risk to social order than to see it directed by increasingly radicalized governments. That is how governments will be characterized as a result of progressives and socialists getting elected to office by voters brain-washed by the dangerous false narrative of the left.
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