MGM Resorts International is laying off 18,000 furloughed workers in the U.S. as a global travel slowdown impedes the casino industry’s recovery from the ongoing pandemic.
www.wsj.com
I believe that to date we have only seen the tip of the economic iceberg that will occur as a result of incomprehensibly allowing this pandemic to continue unabated in the country. There is literally no comparison that exist in the world. How many of us have considered buying a second home or buying a premium home, a new car, a family vacation or any number of other desirable but unnecessary items?
We know that economic growth occurs on the margin. The wealthy can always purchase in the luxury market but strong economic growth comes from the demand from new entrants in the economy.... immigrants buying into the American dream, newly employed high school and college graduates, etc.
We can appreciate the impact that Covid-19 and Trump policies has on these segments of the economy.
I do not believe it is an exaggeration to expect that there will be a cascade of layoff announcements generally in the economy and reduced profit projections broadly in the S&P 500 added to the fact that middle market businesses are already finding themselves in extremely difficult circumstances.
It is different environment than 2007-2008 but it will feel equally as bad to those who are caught up in it. I hope that I am wrong and appreciate any other views.