The new recession is arriving?
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A slump provides a silver lining for Big Business sharks to consolidate their markets and gobble up the small fish.
Liberals in the US try to save small businesses from being taken over
But the major corporation will ensure such proposals do not become law.
“In hard economic times, often the only way to save a business and the jobs it provides is to seek investment from larger market players,” said Carl Szabo, vice president of NetChoice. “The bill’s effect would be to force businesses to go bankrupt rather than merge with a successful market player.”
A contrite, remorseful financial speculator
Austerity comes to the Arabs.
https://www.dw.com/en/riyadh-slashes-welfare-as-oil-and-coronavirus-effects-kick-in/a-53391229
Saudi Arabia has unveiled plans to triple valued-added tax (VAT) from 5% to 15% and stop monthly payments to citizens, an allowance of 1,000 riyals ($267, €240) a month to state employees, who make up two-thirds of total employment
Although the government rarely releases statistics, it is estimated that around 20% of the 34 million Saudi population live in poverty. According to a 2017 UN report, the anti-poverty measures taken by the government were “inefficient, unsustainable, poorly coordinated and, above all, unsuccessful in providing comprehensive social protection to those most in need.”
Another housing crisis is heating up
One in five Japanese companies are worried they may not have sufficient capital if the coronavirus crisis persists, a Reuters poll showed on Thursday, underscoring how even some of the world’s biggest cash-hoarding firms are bracing for prolonged pain.
One in five Japanese companies are worried they may not have sufficient capital if the coronavirus crisis persists, a Reuters poll showed on Thursday, underscoring how even some of the world’s biggest cash-hoarding firms are bracing for prolonged pain. In Japan, listed firms held cash and savings totalling a near record $2.47 trillion (2 trillion pounds) on their balance sheets at end-December, central bank data shows, with their cash-to-sales ratio exceeding their peers in other advanced nations.
Paul Mattick: ‘Their Money or Your Life’: https://brooklynrail.org/2020/05/field-notes/Their-Money-or-Your-LifeJust wait until the real estate bubble explodes, it is going to be a big financial crisis along with the car and students loans debts
The National Bureau of Economic Research (NBER) said that economic growth in the US peaked in February and has since entered its first downturn since 2007 to 2009.
“The committee recognizes that the pandemic and the public health response have resulted in a downturn with different characteristics and dynamics than prior recessions. Nonetheless, it concluded that the unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions,” the NBER explained
Meanwhile down the road at the stock exchange;
https://www.nytimes.com/2020/06/08/business/recession-stock-market-coronavirus.amp.html
It seems that capitalist investors are banking on pharmaceutical and technology companies making fat profits in a post-virus world. Think vaccines, drugs, working from home, and online shopping.
And the recession that came wasn’t the one that was anticipated. It was not the result of the normal operation of the capitalist economy but was deliberately brought about by government action to deal with a pandemic.
Investors are indeed happy
https://www.aljazeera.com/ajimpact/worst-global-recession-investors-200609050251659.html
And the recession that came wasn’t the one that was anticipated. It was not the result of the normal operation of the capitalist economy but was deliberately brought about by government action to deal with a pandemic.
I think we were definitely heading that way in any case, with the trade embargos tariff barriers being erected and post-Brexit stalemates to come.
Oh and Alan’s predictions must have rattled the markets.
The economic crisis already existed before the pandemic, even more, the crisis of 2008 and 2009 had not been resolved either
When he isn’t promoting his pet hobby-horse, coops, Wolff does make good reading sometimes
https://www.bbc.com/news/business-53104730
Columbia University professor economist Jeffrey Sachs said the deepening cold war between the US and China will be a bigger worry for the world than coronavirus.
“The US is a force for division, not for cooperation,”
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