6.65 million new unemployment [April 2]

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Seasonal
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6.65 million new unemployment [April 2]

Post by Seasonal » Thu Apr 02, 2020 7:37 am

That's in addition to last weeks 3.3 million. About 10 million new unemployment claims in the past two week. Total employment was about 130 million in 2019.

S&P 500 futures are now up 1.6%.

Good because it shows social distancing? Bad for obvious reasons? Probably a combination.

ETA:

Image
Last edited by Seasonal on Thu Apr 02, 2020 7:58 am, edited 1 time in total.

Theseus
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Re: 6.65 million new unemployment [April 2]

Post by Theseus » Thu Apr 02, 2020 7:39 am

Market always seem counter intuitive :D . I took this as bad news - but not the markets

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Re: 6.65 million new unemployment [April 2]

Post by whodidntante » Thu Apr 02, 2020 7:41 am

Why would stocks go down on good news for stimulus and Federal Reserve operations? That's so 2005. :twisted:

The best chance to go down is when the earnings crater and we realize that the market is still expensive.

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Re: 6.65 million new unemployment [April 2]

Post by keelerjr12 » Thu Apr 02, 2020 8:07 am

Actually futures have dropped in light of this news. The reason they were up 1.6% was because of Trump's remarks to the oil crisis.

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Re: 6.65 million new unemployment [April 2]

Post by soda_bandit » Thu Apr 02, 2020 8:41 am

I wonder if normal dynamics of how unemployment news impacts stock prices have been flipped by the CARES Act.

A fair number of people making less than $60k/year will get more income from regular unemployment plus the new $600/week ($31.2k/year) benefit created by CARES than they did from the jobs they just lost. So an increase in unemployment may actually create an increase in aggregate demand rather than a decrease.

Obviously not sustainable long term to pay folks more in unemployment than they earn from jobs. But in the short term it breaks a lot of assumptions about the relationships between economic variables.

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Re: 6.65 million new unemployment [April 2]

Post by goblue100 » Thu Apr 02, 2020 8:47 am

I'm not sure why this is a surprise. If you tell everyone to stay home, they are going to file unemployment. The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

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Re: 6.65 million new unemployment [April 2]

Post by alex_686 » Thu Apr 02, 2020 8:48 am

Certain specific bad news is often better than vague rumors with high error bars. Uncertainty may not be your friend.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.

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Seasonal
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Re: 6.65 million new unemployment [April 2]

Post by Seasonal » Thu Apr 02, 2020 8:59 am

goblue100 wrote:
Thu Apr 02, 2020 8:47 am
I'm not sure why this is a surprise. If you tell everyone to stay home, they are going to file unemployment. The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths. See, for example, the view from economists http://www.igmchicago.org/surveys/polic ... 19-crisis/

flyingaway
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Re: 6.65 million new unemployment [April 2]

Post by flyingaway » Thu Apr 02, 2020 9:02 am

If I worked at any grocery stores or other low wage places, I would prefer to be unemployed. I guess the unemployment check is bigger than most paychecks from low wage places.

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Re: 6.65 million new unemployment [April 2]

Post by Beach » Thu Apr 02, 2020 9:05 am

flyingaway wrote:
Thu Apr 02, 2020 9:02 am
If I worked at any grocery stores or other low wage places, I would prefer to be unemployed. I guess the unemployment check is bigger than most paychecks from low wage places.
That's why its time limited and isn't a free handout forever (at least that is supposed to be how it works)

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Re: 6.65 million new unemployment [April 2]

Post by arcticpineapplecorp. » Thu Apr 02, 2020 9:12 am

Seasonal wrote:
Thu Apr 02, 2020 7:37 am
That's in addition to last weeks 3.3 million. About 10 million new unemployment claims in the past two week.
don't forget the more important point from the cnbc article:
“Sadly, this probably still underestimates the actual numbers because of the overload in the systems and not every call getting through,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “Even if we’re accurately calculating the numbers, we still likely have worse to come.”
source: https://www.cnbc.com/2020/04/02/weekly- ... laims.html
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Re: 6.65 million new unemployment [April 2]

Post by rkhusky » Thu Apr 02, 2020 9:18 am

Everyone knew the unemployment numbers were going to be bad. The market responds to unexpected news.

atdharris
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Re: 6.65 million new unemployment [April 2]

Post by atdharris » Thu Apr 02, 2020 9:27 am

Truly scary numbers. I wonder how long this economic shut down can go on before people begin getting antsy. I hope it doesn't extend beyond May, but I really do not know what to expect.

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Re: 6.65 million new unemployment [April 2]

Post by goblue100 » Thu Apr 02, 2020 9:39 am

Seasonal wrote:
Thu Apr 02, 2020 8:59 am
goblue100 wrote:
Thu Apr 02, 2020 8:47 am
The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths.
Never doesn't sound right to me. How many people die every day driving to work? Seems like a lot of people die every year in cars:
"For 2016 specifically, National Highway Traffic Safety Administration (NHTSA) data shows 37,461 people were killed in 34,436 motor vehicle crashes, an average of 102 per day. In 2010, there were an estimated 5,419,000 crashes, 30,296 deadly, killing 32,999, and injuring 2,239,000."

and we haven't outlawed driving. I suspect our threshold is somewhere around 150 virus deaths a day to get back to near normal.
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

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Re: 6.65 million new unemployment [April 2]

Post by RadAudit » Thu Apr 02, 2020 9:46 am

whodidntante wrote:
Thu Apr 02, 2020 7:41 am
The best chance to go down is when the earnings crater and we realize that the market is still expensive.
Being the uber-optimist I am :wink: , I'm waiting to see what the markets look like after the second (and maybe third) quarter earnings reports come out. Don't know. But, I'm guessing the markets have a ways to go before they find a bottom for this cycle.
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

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Re: 6.65 million new unemployment [April 2]

Post by Corsair » Thu Apr 02, 2020 10:01 am

keelerjr12 wrote:
Thu Apr 02, 2020 8:07 am
Actually futures have dropped in light of this news. The reason they were up 1.6% was because of Trump's remarks to the oil crisis.
Which is funny because Peskov says Putin has not spoken to the Saudi crown prince. Someone is lying or pumping markets :moneybag

EDIT: "No on has started any talks about a potential new oil production deal to replace OPEC+ format" - Russia's Peskov
Last edited by Corsair on Thu Apr 02, 2020 10:02 am, edited 1 time in total.
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Re: 6.65 million new unemployment [April 2]

Post by Xrayman69 » Thu Apr 02, 2020 10:02 am

Nearly mid-day and markets currently up over 1%. The new unemployment numbers although looks staggering under typical times. However we are not in typical times and these numbers would appear relatively low or under reported. The US workforce has many companies that have been supported by the stimulus package to keep employees on the books and pay to stay at home. Many are able to work from home and still draw a salary.

It is my suspicion that the unemployed are from small business’ that are bricks and mortar service industry related and thus the donut hole. By all accounts and previous reports are that the “vast majority” of the economy is related to “small business’”.

In 2019 stats reported that there were nearly 131M full time employees. At 10M reporting unemployment this comes out to be only about 7% unemployment. I am expecting about 1/4 to be u employed or underemployed.

The 10M filing this week for unemployment payments can translate into continued viable purchasing contribution. Keep in mind the fed government has “unlimited” credit card to swipe to keep purchasing power. All least the interest rates for these “credit card” swipes is near zero in the long term.

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Re: 6.65 million new unemployment [April 2]

Post by ValuationsMatter » Thu Apr 02, 2020 10:04 am

Theseus wrote:
Thu Apr 02, 2020 7:39 am
Market always seem counter intuitive :D . I took this as bad news - but not the markets
3 reasons:
1) Yesterday was a severe down day, and timers are amplifying a bounce
2) Oil markets are recovering on news of rumored Russia/Saudi oil deal
3) New unemployment claims upwards of ~5MM for last week was already expected. (priced in, for those who like to hate the phrase)
Last edited by ValuationsMatter on Thu Apr 02, 2020 10:13 am, edited 1 time in total.

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Re: 6.65 million new unemployment [April 2]

Post by Dennisl » Thu Apr 02, 2020 10:09 am

atdharris wrote:
Thu Apr 02, 2020 9:27 am
Truly scary numbers. I wonder how long this economic shut down can go on before people begin getting antsy. I hope it doesn't extend beyond May, but I really do not know what to expect.
I’d argue people are already antsy if they’re making threats on Dr Fauci’s life.

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Re: 6.65 million new unemployment [April 2]

Post by atdharris » Thu Apr 02, 2020 11:34 am

Dennisl wrote:
Thu Apr 02, 2020 10:09 am
atdharris wrote:
Thu Apr 02, 2020 9:27 am
Truly scary numbers. I wonder how long this economic shut down can go on before people begin getting antsy. I hope it doesn't extend beyond May, but I really do not know what to expect.
I’d argue people are already antsy if they’re making threats on Dr Fauci’s life.
Some more than others, I am sure. I am fortunate that I can work from home and do 90% of my job (outside of receiving mail), but I can't imagine losing my job because I worked in the service industry to this. And you have to believe a lot of those restaurants/bars will not be able to survive shutting down for a month and will not re-open when this is over.

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Re: 6.65 million new unemployment [April 2]

Post by Dennisl » Thu Apr 02, 2020 11:38 am

I’m sure people are happy to see the market respond to the oil crisis being resolved. Can’t help but be miffed at large companies getting bailed out while medical offices across the country are getting crushed.

https://apple.news/AWAU4Hh5TS-2__HNKX0C1oA

I understand the government picks winners and losers. When it comes to health care, we all lose if that goes down.

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Re: 6.65 million new unemployment [April 2]

Post by skepticalobserver » Thu Apr 02, 2020 11:40 am

To paraphrase CNBC’s Rick Santelli, if you take away all the bats from the Chicago Cubs the batting average is going to be zero. Of course claims are up, practically no jobs. Things are full stop--for now.

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Re: 6.65 million new unemployment [April 2]

Post by Normchad » Thu Apr 02, 2020 11:42 am

That’s a stunning large number for just 1 week. How many cities in America have a total population the size? Just imagine an entire metro area like DC, all losing their jobs in a single week.

Really disheartening.

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Re: 6.65 million new unemployment [April 2]

Post by AnalogKid22 » Thu Apr 02, 2020 11:51 am

Dennisl wrote:
Thu Apr 02, 2020 11:38 am
I’m sure people are happy to see the market respond to the oil crisis being resolved. Can’t help but be miffed at large companies getting bailed out while medical offices across the country are getting crushed.

https://apple.news/AWAU4Hh5TS-2__HNKX0C1oA

I understand the government picks winners and losers. When it comes to health care, we all lose if that goes down.
A strategic move, for sure, to announce this the day they release the unemployment numbers.

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Re: 6.65 million new unemployment [April 2]

Post by chessknt » Thu Apr 02, 2020 11:59 am

goblue100 wrote:
Thu Apr 02, 2020 9:39 am
Seasonal wrote:
Thu Apr 02, 2020 8:59 am
goblue100 wrote:
Thu Apr 02, 2020 8:47 am
The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths.
Never doesn't sound right to me. How many people die every day driving to work? Seems like a lot of people die every year in cars:
"For 2016 specifically, National Highway Traffic Safety Administration (NHTSA) data shows 37,461 people were killed in 34,436 motor vehicle crashes, an average of 102 per day. In 2010, there were an estimated 5,419,000 crashes, 30,296 deadly, killing 32,999, and injuring 2,239,000."

and we haven't outlawed driving. I suspect our threshold is somewhere around 150 virus deaths a day to get back to near normal.
The only way it would play out in a way where we trad lives for the economy without collapsing the Healthcare system would be if we universally denied all care over the age of 65 and all respiratory failure related care over the age of 50. No exceptions, just a slug of morphine and go home.

Otherwise if you in an otherwise survivable car accident or have a workplace injury or have a heart attack it won't matter because there won't be a functional hospital in America for 4+ months.
Last edited by chessknt on Thu Apr 02, 2020 11:59 am, edited 1 time in total.

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Re: 6.65 million new unemployment [April 2]

Post by Coltrane75 » Thu Apr 02, 2020 11:59 am

Seasonal wrote:
Thu Apr 02, 2020 7:37 am
That's in addition to last weeks 3.3 million. About 10 million new unemployment claims in the past two week. Total employment was about 130 million in 2019.

S&P 500 futures are now up 1.6%.

Good because it shows social distancing? Bad for obvious reasons? Probably a combination.

ETA:

Image
I'm not sure I agree with the first conclusion but agree with you 2nd conclusion.

Not sure how high unemployment is supporting evidence that people are practicing social distancing.

I think if this is turns out to be a long ordeal of over a year; involving some quarantine time, alarming number of deaths, overwhelmed health system and a severe recession; this represents for me another nail in the coffin regarding my long-term concern/slight-pessimism about the future.

There have been a lot of traumatic milestones over the past 30-40 years that IMHO has shown this country, and the word, is not on a trend that is good. After each instance, emerging into a landscape changed for the worse. They weren't like WWII or the Depression for sure, but just a sort of gradual or step-by-step malaise.

Actionable self-advice; I'll be saving more and taking a bit less risk over the remainnig 15-20 years of my work life. I'm 60/40 now, will probably begin to gradually take that down on a quicker trajectory. I will also be sustaining a much larger emergency fund.

Sorry for the pessimism.
Just my 2 cents.

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Re: 6.65 million new unemployment [April 2]

Post by goblue100 » Thu Apr 02, 2020 12:25 pm

chessknt wrote:
Thu Apr 02, 2020 11:59 am
goblue100 wrote:
Thu Apr 02, 2020 9:39 am
Seasonal wrote:
Thu Apr 02, 2020 8:59 am
goblue100 wrote:
Thu Apr 02, 2020 8:47 am
The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths.
Never doesn't sound right to me. How many people die every day driving to work? Seems like a lot of people die every year in cars:
"For 2016 specifically, National Highway Traffic Safety Administration (NHTSA) data shows 37,461 people were killed in 34,436 motor vehicle crashes, an average of 102 per day. In 2010, there were an estimated 5,419,000 crashes, 30,296 deadly, killing 32,999, and injuring 2,239,000."

and we haven't outlawed driving. I suspect our threshold is somewhere around 150 virus deaths a day to get back to near normal.
The only way it would play out in a way where we trad lives for the economy without collapsing the Healthcare system would be if we universally denied all care over the age of 65 and all respiratory failure related care over the age of 50. No exceptions, just a slug of morphine and go home.

Otherwise if you in an otherwise survivable car accident or have a workplace injury or have a heart attack it won't matter because there won't be a functional hospital in America for 4+ months.
If it was evenly spread, which it most likely won't be, 3 deaths per day per state implies 3 to 4 thousand people over the country having the virus. Of course, you need the inflow and outflow to be roughly the same. Not all that easy to manage, but I think it's doable.
I mean, Wuhan is getting back to normal within 3 months, I think we will too.
https://www.washingtontimes.com/news/20 ... rus-in-us/
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

chessknt
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Re: 6.65 million new unemployment [April 2]

Post by chessknt » Thu Apr 02, 2020 12:30 pm

goblue100 wrote:
Thu Apr 02, 2020 12:25 pm
chessknt wrote:
Thu Apr 02, 2020 11:59 am
goblue100 wrote:
Thu Apr 02, 2020 9:39 am
Seasonal wrote:
Thu Apr 02, 2020 8:59 am
goblue100 wrote:
Thu Apr 02, 2020 8:47 am
The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths.
Never doesn't sound right to me. How many people die every day driving to work? Seems like a lot of people die every year in cars:
"For 2016 specifically, National Highway Traffic Safety Administration (NHTSA) data shows 37,461 people were killed in 34,436 motor vehicle crashes, an average of 102 per day. In 2010, there were an estimated 5,419,000 crashes, 30,296 deadly, killing 32,999, and injuring 2,239,000."

and we haven't outlawed driving. I suspect our threshold is somewhere around 150 virus deaths a day to get back to near normal.
The only way it would play out in a way where we trad lives for the economy without collapsing the Healthcare system would be if we universally denied all care over the age of 65 and all respiratory failure related care over the age of 50. No exceptions, just a slug of morphine and go home.

Otherwise if you in an otherwise survivable car accident or have a workplace injury or have a heart attack it won't matter because there won't be a functional hospital in America for 4+ months.
If it was evenly spread, which it most likely won't be, 3 deaths per day per state implies 3 to 4 thousand people over the country having the virus. Of course, you need the inflow and outflow to be roughly the same. Not all that easy to manage, but I think it's doable.
I mean, Wuhan is getting back to normal within 3 months, I think we will too.
https://www.washingtontimes.com/news/20 ... rus-in-us/
I honestly hope we do but Wuhan also welded people in to their apartments and punished people who disobeyed whereas the US still has deniers that this is even a national crisis.

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Re: 6.65 million new unemployment [April 2]

Post by index245 » Thu Apr 02, 2020 12:38 pm

goblue100 wrote:
Thu Apr 02, 2020 12:25 pm
chessknt wrote:
Thu Apr 02, 2020 11:59 am
goblue100 wrote:
Thu Apr 02, 2020 9:39 am
Seasonal wrote:
Thu Apr 02, 2020 8:59 am
goblue100 wrote:
Thu Apr 02, 2020 8:47 am
The real question in my mind is how far do we let the pain of an idle society spread before we declare it is not worth whatever lives are saved?
Probably never. Economists and viral epidemiologists don't agree with that (there are of course exceptions). We can have a terrible economy and save lives or we can have a terrible economy and more deaths.
Never doesn't sound right to me. How many people die every day driving to work? Seems like a lot of people die every year in cars:
"For 2016 specifically, National Highway Traffic Safety Administration (NHTSA) data shows 37,461 people were killed in 34,436 motor vehicle crashes, an average of 102 per day. In 2010, there were an estimated 5,419,000 crashes, 30,296 deadly, killing 32,999, and injuring 2,239,000."

and we haven't outlawed driving. I suspect our threshold is somewhere around 150 virus deaths a day to get back to near normal.
The only way it would play out in a way where we trad lives for the economy without collapsing the Healthcare system would be if we universally denied all care over the age of 65 and all respiratory failure related care over the age of 50. No exceptions, just a slug of morphine and go home.

Otherwise if you in an otherwise survivable car accident or have a workplace injury or have a heart attack it won't matter because there won't be a functional hospital in America for 4+ months.
If it was evenly spread, which it most likely won't be, 3 deaths per day per state implies 3 to 4 thousand people over the country having the virus. Of course, you need the inflow and outflow to be roughly the same. Not all that easy to manage, but I think it's doable.
I mean, Wuhan is getting back to normal within 3 months, I think we will too.
https://www.washingtontimes.com/news/20 ... rus-in-us/
Comparing China's (or Taiwan's or South Korea's) response to ours is comparing apples to oranges due to differing role of the government in each country. We have family and friends in those countries. During the 3 month period you referenced, in China each household was allowed one person to leave once a week to buy groceries. Nobody else could leave their house under any circumstance. The government monitored and there was a pass to confirm and had to show when you left. You needed government approval to leave your city, unless you were a foreign national or government official. People were forced out of their apartments for mandatory quarantines.

A closer comparison would be Italy, or to a lesser extent, Great Britain.

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Re: 6.65 million new unemployment [April 2]

Post by GoldenFinch » Thu Apr 02, 2020 12:53 pm

Too bad about Boeing’s layoff situation.
Last edited by GoldenFinch on Thu Apr 02, 2020 1:57 pm, edited 1 time in total.

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Seasonal
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Re: 6.65 million new unemployment [April 2]

Post by Seasonal » Thu Apr 02, 2020 1:42 pm

index245 wrote:
Thu Apr 02, 2020 12:38 pm
Comparing China's (or Taiwan's or South Korea's) response to ours is comparing apples to oranges due to differing role of the government in each country. We have family and friends in those countries. During the 3 month period you referenced, in China each household was allowed one person to leave once a week to buy groceries. Nobody else could leave their house under any circumstance. The government monitored and there was a pass to confirm and had to show when you left. You needed government approval to leave your city, unless you were a foreign national or government official. People were forced out of their apartments for mandatory quarantines.

A closer comparison would be Italy, or to a lesser extent, Great Britain.
Taiwan and South Korea are both democracies and seem comparable enough. China is obviously another story.

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bligh
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Re: 6.65 million new unemployment [April 2]

Post by bligh » Thu Apr 02, 2020 1:52 pm

Seasonal wrote:
Thu Apr 02, 2020 1:42 pm
Taiwan and South Korea are both democracies and seem comparable enough. China is obviously another story.
Both of those countries also have socialized health care. The fragmented, privatized US Healthcare system isn't really setup for something like this.

It is also a contradiction in how people are being asked to sacrifice for society as a whole by staying home and not going to work and closing up their businesses (even when they themselves are very low risk). Yet that same society claims that individuals should have responsibility to pay for their own health care, and it isn't societies problem if/when they cannot afford the cost. The whole system and philosophy isn't aligned for a situation like this.

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Re: 6.65 million new unemployment [April 2]

Post by index245 » Thu Apr 02, 2020 2:04 pm

Seasonal wrote:
Thu Apr 02, 2020 1:42 pm
index245 wrote:
Thu Apr 02, 2020 12:38 pm
Comparing China's (or Taiwan's or South Korea's) response to ours is comparing apples to oranges due to differing role of the government in each country. We have family and friends in those countries. During the 3 month period you referenced, in China each household was allowed one person to leave once a week to buy groceries. Nobody else could leave their house under any circumstance. The government monitored and there was a pass to confirm and had to show when you left. You needed government approval to leave your city, unless you were a foreign national or government official. People were forced out of their apartments for mandatory quarantines.

A closer comparison would be Italy, or to a lesser extent, Great Britain.
Taiwan and South Korea are both democracies and seem comparable enough. China is obviously another story.
They are both democracies, but culturally, can employ measures that our government hasn't been willing to. Taiwan has experience and systems set up due to SARS. Every proactive measure suggested by the WHO was already implemented at least two weeks earlier. When the first cases started in Wuhan, the government of Taiwan tracked and tested all individuals who traveled in. Then the followed, and retraced all people they contacted and enforced mandatory quarantines. If you travel to Taiwan now, police will follow you for 2 weeks upon arrival.

In South Korea, the government employed extensive testing (fast tracked) and is tracking citizens via smartphone apps. Still not quite comparable.

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Re: 6.65 million new unemployment [April 2]

Post by ReformedSpender » Thu Apr 02, 2020 2:15 pm

At this time, CBO's economic forecast updated today does not assume a V-shaped recovery. Unemployment could be at 9% at the end of 2021 given the effects of business closures.

https://www.cbo.gov/publication/56314?u ... 2_14:30:00
Market history shows that when there's economic blue sky, future returns are low, and when the economy is on the skids, future returns are high. The best fishing is done in the most stormy waters.

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Re: 6.65 million new unemployment [April 2]

Post by iamlucky13 » Thu Apr 02, 2020 2:25 pm

GoldenFinch wrote:
Thu Apr 02, 2020 12:53 pm
Regarding Boeing offering buyouts: Does anybody know if the people who work at Boeing who don’t take the buyout package will potentially be laid off later without a buyout package? I’m just wondering what the incentive to leave one’s job might be beyond just being ready to retire. Are they risking losing severance pay if they don’t voluntarily leave now?
That would be typical. This could even be viewed as a beneficial aspect of a buyout: those who know from performance reviews or tenure that they are at risk of layoff have a chance to leave under better terms, while the company hopefully retains those who have lots of experience and good reviews, because they feel more secure because voluntary layoffs reduce the number of forced layoffs that will need to happen.

On the other hand, even with CARES Act, I'm not sure if someone who takes a voluntary layoff is eligible for unemployment benefits, and obviously this is not a great time to have to look for a job.

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Re: 6.65 million new unemployment [April 2]

Post by LadyGeek » Thu Apr 02, 2020 2:59 pm

I removed an off-topic post and reply. This thread has run its course and is locked (not actionable). See: Non-actionable (Trolling) Topics
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