But the downturn in the goods-based sectors started in 2018. US exports are now down 37% from that peak, imports down 25%.
A zombie well before the pandemic, the UK company had racked up huge debts to finance rapid growth in a sector that had started shrinking some time ago.
Owner of a small cafe that specializes in fine cakes and sandwiches tells me: “We’ll be lucky if we get half the normal number in July and August.” It’s now “all about damage control.”
But the ECB went into high gear to soothe the pain of the banks.
It’s all about money, but whose money?
A new tsunami of bad debts washes ashore while banks are still struggling with the debris from the prior tsunami of bad debts.
Capital values across all segments (retail, office, industrial) already fell by 6.1% over the three months from March to May.
“People do not buy a new outfit to stay at home.” Sales at stores that have reopened languish while ecommerce is booming. McKinsey: up to a third of global fashion retailers will not survive the crisis.
“Consideration may need to be given” to bailouts from taxpayers “to meet solvency or liquidity requirements,” but only “at the extreme end,” whatever that means.
Foreign Companies welcome. US Tax dodgers that didn’t qualify in the US, no problem.