It is quickly sinking in that this virus is going to last all year and cause a horrifying economic impact to the living.
This thread is for the economic fallout only.
The possible coming loss of a dearly loved one or the medical/human side of this is for other threads.
Now that April 1st is here, a lot of bills won't get paid.
Imagine the anger that will grow soon.
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For US People:
In the U.S., it takes 2 or 3 weeks to start collecting unemployment.
Once you get it, it is typically half of what you usually earn, but the bailout package added +$600 per week through July 31st.
It also lets furloughed workers, self-employed, and gig workers collect I think.
https://www.nolo.com/legal-encyclopedia/unemployment-benefits-amount-duration-32447.html
Anyway, 2 or 3 weeks of collecting zero is already a big hurt, because if you normally only make 20% more than what you spend, a month off takes 5 months to make up.
Debt is a soul crushing monster.
I'm scrambling to set aside enough money to take 3 weeks off when I probably catch the coronavirus.
The $1200 per adult coming at the end of April / early May is just a speed bump for a single mother with a 17 year old.
A married couple with 2 younger children would get $3400. ($1200 + $1200 + $500 + $500)
People living in expensive areas like Chicago or San Francisco are toast.
Half-pay unemployment plus 600 per week or a $1200 check doesn't really scale properly.
Interest rates may have dropped to 0% for the big players, but credit cards for regular people still have 15% or 17% interest rates.
Missing a minimum payment can jack the rate to 29.99% instantly which is a big deal if you have an $8000 balance.
Student loans can not be gotten rid of, even with bankruptcy.
Medical bills are outrageous.
Even if you make every premium, pay every deductible, and set aside an emergency fund for maximum out of pocket expenses, I think it is still possible to wake up and be presented with a titanic bill because the heart doctor was out of network.
Miss roughly 3 mortgage payments, and the bank will throw you out of your house and sell it.
The first 15 years of mortgage payments of a 30 year are structured to be mostly interest, so don't expect them to give you a big check for the difference.
This link talks about equity during foreclosure.
https://www.loan.com/home-loans/what-happens-to-equity-during-foreclosure.html
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All the bartenders, event planners, waiters/waitresses, dishwashers, dentists, eye doctors etc. are going to get crushed if they fall through the cracks.
It is affecting the whole world too, not just one country.
The oil industry is also going to get murdered with so much demand destruction.
The oil price might even go negative if we run out of places to put it.
The global reserve currency, the dollar, might encounter problems if countries can't get them in large quantities by selling oil anymore.
All those dollar-based debts might have to default.
Are court cases going to be able to be settled in any kind of timely manner?
What about juries?
The peaceful pause can not last.
This thread is for the economic fallout only.
The possible coming loss of a dearly loved one or the medical/human side of this is for other threads.
Spoiler :
Imagine the anger that will grow soon.
=========================
For US People:
The Fed thinks unemployment in the USA might reach 32%. (Short-term of course)
https://www.cnbc.com/2020/03/30/cor...-unemployment-rate-of-32percent-fed-says.html
https://www.cnbc.com/2020/03/30/cor...-unemployment-rate-of-32percent-fed-says.html
In the U.S., it takes 2 or 3 weeks to start collecting unemployment.
Once you get it, it is typically half of what you usually earn, but the bailout package added +$600 per week through July 31st.
It also lets furloughed workers, self-employed, and gig workers collect I think.
https://www.nolo.com/legal-encyclopedia/unemployment-benefits-amount-duration-32447.html
Anyway, 2 or 3 weeks of collecting zero is already a big hurt, because if you normally only make 20% more than what you spend, a month off takes 5 months to make up.
Debt is a soul crushing monster.
I'm scrambling to set aside enough money to take 3 weeks off when I probably catch the coronavirus.
The $1200 per adult coming at the end of April / early May is just a speed bump for a single mother with a 17 year old.
A married couple with 2 younger children would get $3400. ($1200 + $1200 + $500 + $500)
People living in expensive areas like Chicago or San Francisco are toast.
Half-pay unemployment plus 600 per week or a $1200 check doesn't really scale properly.
Interest rates may have dropped to 0% for the big players, but credit cards for regular people still have 15% or 17% interest rates.
Missing a minimum payment can jack the rate to 29.99% instantly which is a big deal if you have an $8000 balance.
Student loans can not be gotten rid of, even with bankruptcy.
Medical bills are outrageous.
Even if you make every premium, pay every deductible, and set aside an emergency fund for maximum out of pocket expenses, I think it is still possible to wake up and be presented with a titanic bill because the heart doctor was out of network.
Miss roughly 3 mortgage payments, and the bank will throw you out of your house and sell it.
The first 15 years of mortgage payments of a 30 year are structured to be mostly interest, so don't expect them to give you a big check for the difference.
This link talks about equity during foreclosure.
https://www.loan.com/home-loans/what-happens-to-equity-during-foreclosure.html
=========================
All the bartenders, event planners, waiters/waitresses, dishwashers, dentists, eye doctors etc. are going to get crushed if they fall through the cracks.
It is affecting the whole world too, not just one country.
The oil industry is also going to get murdered with so much demand destruction.
The oil price might even go negative if we run out of places to put it.
The global reserve currency, the dollar, might encounter problems if countries can't get them in large quantities by selling oil anymore.
All those dollar-based debts might have to default.
Are court cases going to be able to be settled in any kind of timely manner?
What about juries?
The peaceful pause can not last.
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