{"id":210075,"date":"2020-07-10T06:44:16","date_gmt":"2020-07-10T06:44:16","guid":{"rendered":"http:\/\/www.thetruthseeker.co.uk\/?p=210075"},"modified":"2020-07-12T07:36:43","modified_gmt":"2020-07-12T07:36:43","slug":"the-u-s-economy-hasnt-experienced-anything-like-this-since-the-great-depression-of-the-1930s","status":"publish","type":"post","link":"https:\/\/www.thetruthseeker.co.uk\/?p=210075","title":{"rendered":"The U.S. Economy Hasn\u2019t Experienced Anything Like This Since The Great Depression Of The 1930s"},"content":{"rendered":"

Michael Snyder \u2013 The Economic Collapse July 7, 2020<\/strong><\/h1>\n

\"\"<\/a><\/p>\n

The recession of 2008 and 2009 was bad, but it was nothing like this.\u00a0 Even though this new economic downturn is only a few months old, we are already seeing numbers that we haven\u2019t seen since the worst parts of the Great Depression of the 1930s.\u00a0 More than 48 million Americans<\/a><\/strong><\/span> have filed new claims for unemployment benefits over the past 15 weeks, well over 100,000 businesses have permanently closed their doors, and civil unrest has turned quite a few of our major cities into war zones<\/a><\/strong><\/span>.\u00a0 But not all areas of the country are being affected equally.\u00a0 For example, there are rural areas that haven\u2019t really seen a lot of COVID-19 cases where life seems to have changed very little from six months ago.\u00a0 On the other hand, some urban areas that have been hit really hard by COVID-19 have been absolutely devastated economically.\u00a0 For example, the New York Times is reporting that a million jobs have been lost in New York City, and the unemployment rate for NYC \u201cis hovering near 20 percent<\/strong><\/span>\u201d<\/a>\u2026<\/span><\/p>\n

The city is staggering toward reopening with some workers back at their desks or behind cash registers, and on Monday, it began a new phase,\u00a0allowing personal-care services like nail salons<\/a><\/strong><\/span>\u00a0and some outdoor recreation to resume. Even so, the city\u2019s unemployment rate is hovering near 20 percent \u2014 a figure not seen since the Great Depression.<\/span><\/p>\n

We are going to be using the phrase \u201csince the Great Depression\u201d a lot in the coming months.<\/span><\/p>\n

Fear of COVID-19 is going to paralyze our economy for the foreseeable future, and all of this fear is hitting some companies more severely than others.\u00a0 On Tuesday, Levi Strauss announced that sales were down a whopping 62 percent\u00a0during the second quarter<\/strong><\/span><\/a>\u2026<\/span><\/p>\n

The denim maker Levi Strauss & Co.\u2019s sales fell 62% during its fiscal second quarter, the company announced Tuesday, as its online sales weren\u2019t enough to make up for its stores being temporarily shut for roughly 10 weeks during the Covid-19 crisis.<\/span><\/p>\n

If Levi Strauss expected this to be just a temporary setback, they would probably try to keep all of their employees on board.<\/span><\/p>\n

But instead, they apparently believe that hard times are here to stay and they have just decided to eliminate \u201cabout 700 jobs<\/strong><\/span>\u201d<\/a>\u2026<\/span><\/p>\n

Levi\u2019s also announced it will be slashing about 15% of its global corporate workforce, impacting about 700 jobs, in a bid to cut costs during the coronavirus pandemic. It said the move should generate annualized savings for Levi\u2019s of $100 million.<\/span><\/p>\n

Of course a whole lot of other companies are laying off workers right now too.\u00a0 Another 1.427 million Americans<\/a><\/strong><\/span> filed new claims for unemployment benefits last week, and that is an absolutely catastrophic number.\u00a0 Prior to 2020, the worst week in all of U.S. history for new unemployment claims was in 1982 when 695,000 unemployed workers filed in a single week.\u00a0 So what we are witnessing right now is nothing short of a \u201ctsunami of job losses\u201d, and\u00a0even CNN is admitting<\/strong><\/span><\/a>\u00a0that millions of the jobs that have been lost \u201care never coming back\u201d\u2026<\/span><\/p>\n

The American economy\u2019s unprecedented jobs rebound masks a difficult truth: For millions of people, the jobs they lost are never coming back.<\/span><\/p>\n

\u201cIt\u2019s clear that the pandemic is doing some fundamental damage to the job market,\u201d said Mark Zandi, chief economist for Moody\u2019s Analytics. \u201cA lot of the jobs lost aren\u2019t coming back any time soon. The idea that the economy is going to snap back to where it was before the pandemic is clearly not going to happen.\u201d<\/span><\/p>\n

I couldn\u2019t have said it better myself.<\/span><\/p>\n

Since most Americans were living paycheck to paycheck before this pandemic erupted, millions of unemployed workers have found themselves in desperate need very suddenly.\u00a0 I have written numerous articles about the massive lines that we have been witnessing at food banks around the nation, and we just witnessed another two mile long line at a food bank in Florida<\/a><\/strong><\/span>\u2026<\/span><\/p>\n

More than 700 cars were seen waiting in a two-mile long food bank line in Florida as the US grapples with nearly half of Americans being unemployed amid a spike in new coronavirus cases that has sparked fears of more shut downs and lay-offs.<\/span><\/p>\n

Sunrise Assistant Leisure Services Director Maria Little, who was put in charge of food distribution for the city when the coronavirus hit the US in March, said her group served about 720 cars in Miami on Wednesday.<\/span><\/p>\n

This is not what a \u201crecovery\u201d looks like.<\/span><\/p>\n

In fact, for certain sectors of the economy the numbers are rapidly getting a lot worse.\u00a0 For instance, just check out\u00a0what CNBC is reporting<\/strong><\/span><\/a>\u2026<\/span><\/p>\n

Delinquencies in commercial mortgage-backed securities last month had their largest one-month surge since Fitch Ratings began tracking the metric nearly 16 years ago.<\/span><\/p>\n

The delinquency rate hit 3.59% in June, an increase from 1.46% in May. New delinquencies totaled $10.8 billion in June, raising the total delinquent pool to $17.2 billion.<\/span><\/p>\n

And Fitch Ratings is warning that these numbers are going to get\u00a0far worse<\/a><\/strong><\/span>\u00a0in the months ahead.<\/span><\/p>\n

And this is just the beginning. Fitch analysts are projecting that the impact from the coronavirus pandemic will drive the delinquency rate to between 8.25% and 8.75% by the end of the third quarter of this year.<\/span><\/p>\n

I have said this before, and I will say it again.<\/span><\/p>\n

We are on the verge of the biggest commercial mortgage meltdown in the history of the United States.<\/span><\/p>\n

Countless restaurants and retailers are getting way behind on their rent payments, and as a result many owners of commercial property are finding it increasingly difficult to make their mortgage payments.<\/span><\/p>\n

The dominoes are starting to fall, and this is going to get really, really messy as we head into 2021 and beyond.<\/span><\/p>\n

Of course the same thing could be said for the U.S. economy as a whole.<\/span><\/p>\n

I know that I haven\u2019t been posting quite as often the last couple of weeks, and that is because I have been finishing my new book.\u00a0 It is not too far from being completed, and it is going to be the most important thing that I have written so far.<\/span><\/p>\n

We are right on the precipice of the most chaotic chapter in all of American history, and a collapsing economy is just going to be one element of \u201cthe perfect storm\u201d that we are facing.<\/span><\/p>\n

So please use the summer months to get prepared for what is ahead, because even though things are bad right now, the truth is that we have only experienced the leading edge of \u201cthe perfect storm\u201d so far.<\/span><\/p>\n

About the Author<\/strong>: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of\u00a0The Economic Collapse Blog<\/strong><\/span><\/a>,\u00a0End Of The American Dream<\/a><\/strong><\/span>\u00a0and\u00a0The Most Important News<\/a><\/strong><\/span>, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available\u00a0on Amazon.com<\/span><\/a>\u00a0including\u00a0The Beginning Of The End<\/strong><\/span><\/a>,\u00a0Get Prepared Now<\/strong><\/span><\/a>, and\u00a0Living A Life That Really Matters<\/strong><\/span><\/a>. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this \u201cAbout the Author\u201d section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on\u00a0Facebook<\/a><\/span>\u00a0and\u00a0Twitter<\/span><\/a>, and any way that you can share these articles with others is a great help.\u00a0 During these very challenging times, people will need hope more than ever before, and it is our goal\u00a0to share the gospel of Jesus Christ<\/a><\/strong><\/span>\u00a0with as many people as we possibly can.<\/span><\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

We are right on the precipice of the most chaotic chapter in all of American history, and a collapsing economy is just going to be one element in a perfect storm<\/p>\n","protected":false},"author":39262,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[61,66],"tags":[],"class_list":["post-210075","post","type-post","status-publish","format-standard","hentry","category-Commentary","category-Economics"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/210075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/users\/39262"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=210075"}],"version-history":[{"count":4,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/210075\/revisions"}],"predecessor-version":[{"id":210101,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/210075\/revisions\/210101"}],"wp:attachment":[{"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=210075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=210075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thetruthseeker.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=210075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}