45 million people have been furloughed in Germany, the UK, France, Italy, and Spain, but the “unemployment” rate barely budged. Creating government-subsidized zombie companies & zombie jobs?
Europe may be about to find out. 128 days with my Mother-in-Law.
A new tsunami of bad debts washes ashore while banks are still struggling with the debris from the prior tsunami of bad debts.
Airlines, automakers at the forefront. And it has only just begun. EU waives rules banning state aid. Ryanair, which doesn’t need a bailout, is furious.
First the Global Financial Crisis, then the Euro Debt Crisis, now the Big One.
It will likely take “several years before the output lost due to the virus outbreak is fully regained.”
They haven’t gotten over Financial Crisis 1 and the Euro Debt Crisis. Now there’s a new crisis. Deutsche Bank’s CEO going on TV to soothe nerves didn’t help matters.
“First sector to be afflicted by the virus crisis and, unlike other crises, likely the last to recover from it.” And these economies are still incredibly fragile, even eight years after the last crisis.
And construction companies “aren’t expecting a swift recovery.”
The situation is very fluid.