Rage over unemployment might turn Florida blue

I do not think Trump and state and local policymakers fully understand what they have done to American households financially by extending this shutdown for at least a month. I certainly do not think they appreciate the very powerful rage Americans feel about it. Maybe after unemployment claims surge beyond 20 million cumulatively (possibly by next week) they will get a clue.

To say I am disappointed in GOP strategy lately doesn’t even begin to cover it.

Seeing things play out on the ground in Florida, I suspect Trump is taking a meaningful hit to his popularity, even in wildly conservative districts (like the one I live in). This shutdown is likely going to end in Trump losing his new home state of Florida in November, which mathematically means he’ll likely lose the entire election and be a one-term president.

It may very well bring an end to DeSantis’ political career too. He only won the state by something like 34,000 votes in the first place – and he was running against a relatively young Democratic Socialist who was being investigated for bribery and who was just found in a Miami hotel with a male escort and three bags of meth. DeSantis needed to build colossal goodwill as governor, and until March, I thought he had done exactly that. Maybe he can reverse that, but who knows?

As predicted, when DeSantis issued a statewide stay-at-home order, employers rapidly started laying off employees. So many people have been laid off or furloughed in Florida that the system for filing unemployment claims has crashed and cannot be resurrected. Staffers have started accepting paper applications via snail mail because it is taking weeks to get someone on the phone.

Unemployment claims are a very big deal in Florida. Former Governor Rick Scott (now Senator Rick Scott) created an unemployment system that was quite deliberately designed to fail and punishes people who are suddenly out of work. He had no interest in establishing a website functionally capable of processing even a modest number of claims. When discouraged people gave up on filing claims, it artificially made his negative data seem small. It’s sort of like manipulating coronavirus testing to make infections seem less widespread. People only see what policymakers want them to see.

Florida also has one of the lowest levels of unemployment support in the nation, providing a maximum of $275 a week in assistance. I am a die-hard fiscal conservative, and I will still concede that is scandalous. Although DeSantis paired his order with a 45-day ban on evictions, it’s not difficult to see how the state’s most vulnerable populations are screwed, even with the enhanced assistance from the federal government. Florida is not an inexpensive place to live!

In February, Florida had 9 million people in the workforce and a 2.8% unemployment rate. Nearly 400,000 Floridians filed unemployment claims in the past two weeks – before DeSantis’ shutdown even went into effect – and there’s no way to quantify the number of people who have been attempting to file claims but failed because Scott trashed the system. Most of these claims are related to the closure of restaurants, bars, and resorts across the state. The next wave of unemployment will not be centered only on tourism.

A landslide of new claims is indeed coming, as everything but non-essential businesses have been ordered to close. Disney announced yesterday that it was furloughing all non-union staff. Many white-collar workers are starting to get laid off.

Even hospitals across the state have started furloughing doctors and staff. Yes – hospitals, during a health care crisis. Sarasota Memorial Hospital, which currently has a couple dozen people hospitalized for the coronavirus, cut staff after hospital revenues fell by $16 million. This revenue loss was mostly due to Governor DeSantis suspending all elective procedures. Surgeries fell by 50% at Sarasota Memorial Hospital, and the number of inpatients fell by 30%.

From what I gather, that is the story of most hospitals across the country right now. They have no new procedures booked as they have all been ordered to standby and wait for some projected surge tied to the pandemic. People are posting pictures of mostly empty hospitals all over social media. If the surge in cases does not materialize at the levels projected, state and local governments have likely destabilized their health care systems financially going forward. These dire projections about coronavirus infections are definitely high-stakes policy matters.

When a workforce of 9 million decreases by 1 million jobs, which is quite plausible at this point, everyone is going to notice. And it’s probably not going to stop there. I think Trump and DeSantis are underestimating how long it is going to take to recover from the destruction of demand that entails.

From Politico:

“This is horrible for people. I don’t want to minimize that,” one DeSantis adviser told POLITICO. “But if we have to look past the crisis, it’s bad for the president and it’s bad for the governor.”

“Everyone we talk to in that office when we ask them what happened tells us, ‘the system was designed to fail,’” the adviser said. “That’s not a problem when unemployment is 2.8 percent, but it’s a problem now. And no system we have can handle 25,000 people a day.”

State auditors have routinely chronicled shortcomings with the CONNECT system, most recently in a report issued in March 2019, two months after DeSantis took office.

Scott spokesperson Chris Hartline did not directly address complaints about the CONNECT system. But he said Scott acted to ensure the state helped only those “who truly needed the assistance.”

“His goal was to make sure every Floridian who wanted a job could get one, and turned the program into a re-employment system so people could find employment,” Hartline said in an email. “As governor, he made investments to ensure the system worked and Florida’s unemployment insurance program is funded at record levels thanks to reforms under Governor Scott, meaning more Florida families can receive the help they need.”

Rep. Charlie Crist, a Democrat who as a Republican governor led Florida through the last downturn, said the state’s current economic catastrophe could doom Trump in the state the president needs if he wants to win reelection.

“If unemployment continues to go up, and if so many people stay unemployed, it’s a nightmare for the president in this state,” Crist said. “I should know. When I was governor and I was running for the Senate in the Great Recession — and there was nothing great about it — it was a nightmare.”

An adviser to Marco Rubio’s 2010 Senate campaign didn’t argue.

“We’ve got unemployed, pissed-off people. They can’t get benefits. And when they get them, it’s not going to be enough,” he said. “They’re there for the taking by the Democrats. We killed Charlie with the bad economy in 2010. Democrats are gonna repay the favor.”

From The Ledger – Florida jobless claims rise, as does anger among unemployed:

Unemployment claims in Florida continued surging Thursday — as did frustrations among the newly jobless who have struggled for weeks to file for financial relief amidst the coronavirus outbreak that has crippled the state’s economy and sidelined much of its workforce….

Among many of Florida’s unemployed, staying home is a given. Jay Mendez got laid off from his accounting firm three weeks ago and also lost his part-time restaurant gig. He wakes to an alarm every morning reminding him to call the unemployment office as he hopes this time to successfully file his claim — some days he’s had 100 unsuccessful attempts.

“There’s no getting through, and to this day I still haven’t gotten through,” he said. Now without work, he said, “I have nothing else to do.”

He could cover this month’s $1,450 rent for his one-bedroom apartment, but he said not much else.

“No one wants to use their savings for these things,” said Mendez 32….

Lisa Wright, a 56-year-old newly unemployed software development consultant from Fort Lauderdale, deferred car and mortgage payments and charged her health care premium on her credit card.

“I’m trying to conserve my cash, because I don’t know how long this is going to be,” she said.

She has been unable to file her unemployment claim, she said, because she’s been locked out of the state’s website and can’t get help.

“This should be so simple,” she said. Phone lines have mostly been busy. When she does get through, the call eventually disconnects before she gets help.

“No one can get the benefits if we can’t get through,” she said.

Morgan Stanley: 38% economic contraction, unemployment peaks at 15.7% in Q2

Based on all the reports of corporate layoffs I have personally heard about today, I would not be surprised if jobless claims next week hit 10 million. It seems like everyone is giving up en masse and pushing their employees onto the government.

Bank of America says 58,000 small businesses have asked for $6 billion in loans since 9 a.m.

The country’s top banks are cranking out ever more pessimistic forecasts too. They are seemingly divided on what the trajectory for any possible recovery looks like. As these shutdowns get pushed further out, it’s becoming impossible even to guess. I’d say a lot of that depends on whether the Treasury and Fed can stave off a financial crisis while the economy is shut down.

From Reuters:

The United States economy will shrink 5.5% in 2020, the steepest drop since 1946, with a huge 38% contraction predicted for the second quarter, Morgan Stanley said on Friday in a new batch of forecasts on the economic damage from the coronavirus outbreak.

The U.S. bank said it had cut its first-quarter forecast to an annualised 3.4% contraction from a previous 2.4%, while in the second quarter the economy is predicted to shrink 38%, up from an earlier forecast of a 30% contraction.

U.S. unemployment will also peak at a record 15.7% in the second quarter – that is up from a previous 12.8% forecast by the bank’s economists – with cumulative job losses of 21 million in the second quarter, Morgan Stanley said.

Projections released by the U.S. Congressional Budget Office showed U.S. gross domestic product will decline by more than 7% in the second quarter as the health crisis intensifies.

That last bit is what amazes me. Government agencies, from the CBO to state forecasters, seem to be in denial of what this is going to do to revenues. It’s going to be interesting when that reality check gets cashed.

NYC arrests people over social distancing and… throws them into crowded jail cells

Yesterday, a man riding a paddle board in the ocean, alone, was arrested in Malibu for not obeying social distancing orders. There was no one around him, seeing as how he was in the ocean and all. But he needed to be arrested and taken to jail so he could mingle with other “criminals” in the name of social distancing.

It would seem that lunacy is contagious, as NYC is arresting people over social distancing too. And tossing them into crowded holding cells, because they would not want anyone to spread the coronavirus:

NEW YORK CITY police officers arrested three people in Brooklyn over the weekend after they allegedly “failed to maintain social distancing,” court documents reviewed by The Intercept show. The three individuals appear to be among the first in the city to be arrested over the Covid-19 mitigation measures — despite city officials promising that those disregarding the lockdown would face fines at most. Violating social distancing is not a crime per se, but each of the individuals arrested was charged with obstructing governmental administration, unlawful assembly, and disorderly conduct.

In a criminal complaint, police claim an informant observed a group of about 25 people “hanging out” in the Bedford-Stuyvesant neighborhood last Friday night and that the defendants “refused to leave the location and disperse” despite the informant repeatedly asking them to do so. But one of those arrested, a 37-year-old woman, disputed the facts described in the complaint, telling The Intercept that she had been in a parking lot with her boyfriend, who was also arrested, when she saw a group of people nearby dispersing into the street apparently after police ordered them to do so.

The woman, who asked not to be named because the charges against her remain pending, told The Intercept that a large group of officers, wearing no masks, approached her and her boyfriend and told them it was “time to leave,” then proceeded to grab her boyfriend before they could do so. The interaction quickly escalated and officers pepper-sprayed two people as a crowd gathered to watch what was happening. “They actually brought the crowd inside that parking lot once they started bothering me,” she said.

The woman was taken to the local precinct and then to central booking, where she shared a cell with two dozen other women for the next 36 hours. Only women who already had masks when they were arrested were allowed to keep them. There was no soap and the cell was dirty, but at one point an officer went around distributing drops of hand sanitizer to the women held there.

“They got us all bunched up in one cell,” the woman said. “Nobody gave us no tissues. Regular jail stuff. Once you go in there they are going to treat you like the scum of the earth.”

The woman was ultimately released on Sunday morning — but her employer has not allowed her back to work because of fears she was exposed to the virus while in detention.

Mayor Bill de Blasio said last week that those gathering in groups of any size or failing to keep 6 feet away from each other could receive police warnings. If they failed to disperse, or returned after police told them to leave, they could be fined $250 to $500. But as joggers continue to pack sidewalks and crowds gathered to watch a U.S. Navy hospital ship dock in the city, it has become clear that far too many New Yorkers are continuing to get too close to one another. This week, New York Gov. Andrew Cuomo threatened to make social distancing guidelines “a law” while calling on the NYPD to step up enforcement. “The NYPD has to get more aggressive. Period,” Cuomo said, taking a shot at the city’s administration, which oversees the police department.

The NYPD and the Mayor’s Office did not respond to a request for comment.

But as officials threaten harsher enforcement, critics warn that police are not the answer. They caution against a heavy-handed response that they fear will be doled out unequally across the city. And with hundreds of officers testing positive for the virus, and thousands more out sick, community advocates worry that a more aggressive response would unnecessarily expose scores of people to the disease. While a criminal charge for failure to socially distance does not yet exist, officers have a lot of discretion in their encounters with the public and can arrest people under vague charges like disorderly conduct, obstructing government administration, or resisting arrest. That means that police interventions meant to keep people at a distance could quickly escalate into physical, and possibly violent, interactions.

“It’s basically just setting up police encounters, and any police encounter does have some potential to escalate,” said Jennvine Wong, a staff attorney at Legal Aid’s Cop Accountability Project.

Meanwhile, Google announced that it has created a program that would collect personal data from users’ cell phones via Google apps and Android phones and use it to communicate to local health officials what people are not practicing social distancing measures. Essentially, if you use any of their products, they are going to narc on you if you leave the house, because they know where you live, the routes you travel, and your destinations. They know if you go to a grocery store or to visit your parents or child.

Of course, it’s not like it’s hard to get around this sort of thing, if you actually cared. (And I assume people who live in places that encourage snitching and are arresting violators do care, quite a bit.) People can switch to Google’s competitors for search and mapping tools. They can turn the location off on their phone. Or they can simply leave their phone at home and kick it 1990s-style.

It’s a pretty stupid policy from an investor standpoint, as it gives people yet another reason not to trust Google with their personal data. The tech companies continue to escalate their invasions of users’ privacy, which is a seriously poor corporate decision if trying to convince people to store all their data in your cloud is a major component of your business model. Google honestly has always been its own worst enemy from a business standpoint though. If you invest in Google, you already know you can’t tell them to check their politics at the door. It is sort of perversely funny, however, that Google is run by people who spent years calling Trump authoritarian and now they are the pneumonia Stasi.

We’ve come a long way since Edward Snowden humiliated the tech companies for sending your data to the NSA and CIA. The bar for abusing people’s privacy gets lower and lower and lower.

Silly metrics

This is my favorite dumb story of recent days:

The NYC media hot-take: “Look at all those idiots in flyover country continuing to spread disease! Sure they only have a couple coronavirus cases now, but Armageddon is coming for their science-denying MAGA asses!”

The economic reality: This is where do all those trucks that bring you food and other necessities after the hoarders buy it out every single day come from. This is where your essential goods are manufactured and where most of the shipping hubs in our country are located. Enjoy your bread and freshly-squeezed Florida orange juice.

We are so lucky the New York Times doesn’t run this country.

Political blinders and the coronavirus response

The following things can be, and likely are, simultaneously true:

(1) Communist China is a generally unreliable narrator, especially in any situation that directly involves its primary economic and cultural rival, the United States. China has a well-established track record of falsifying important statistics, ranging from the performance of their economy to the success of their efforts at managing disease. Communist China deliberately attempted to conceal the extent to which the coronavirus spread through the country using propaganda and physical violence.

(2) The narrative that the illness originated in China and is only now reaching the western hemisphere is not supported by credible data of any sort, which would require antibody testing not testing for current infections. It is not “Chinese propaganda” to challenge this specific claim, especially given the social cost and economic destruction involved.

This problematic assumption is the product of another generally unreliable narrator, the World Health Organization. The WHO is a corrupt and downright incompetent agency with a long history of screwing up global, coordinated responses to epidemics. They only continue to exist because rent-seeking globalists love corrupt and downright incompetent agencies.

(3) Some academics in the US and Europe have created objectively bad models that lack predictive ability. This is partially because they use bad inputs, meaning deliberately falsified data from places like Communist China and the WHO. This is also partially because these academics are not good at modeling the spread of disease. They use mathematically simplistic models in a technological age where they should be able to employ machine learning to do much better (yay, tenure – keeping old people and old ideas at the top of the food chain at the expense of progress). They make bad assumptions about the nature of populations and when diseases were first observed in a geographic region. They assume that the disease made it to a region only when there is an uptick in testing, hospitalizations, and deaths. With this particular illness, it is possible to be asymptomatic for weeks and still carry it – another detail the corrupt WHO loudly misrepresented for months – which increases the likelihood that it was spreading around the globe earlier than academics and policymakers currently assume. So does the fact that testing was mostly limited to acute cases. So does the fact that most people ultimately only experience mild symptoms.

These models should not be used in crafting public policy. But they are being used in public policy because we have a profoundly bad generation of policymakers who are more concerned with maintaining power than asking the right questions for the good of all humanity. This issue is further obscured by the hyenas in the media who play up every new case, as if every one has the potential to overwhelm ICUs. Any increase is one incremental step toward Armageddon.

(4) Extreme political dysfunction in the United States has contributed to the government making catastrophically bad decisions in response to the coronavirus and doubling and tripling down on them. This dysfunction works across the entire political spectrum.

Trump has been dealing for years with a scorned rival party and select groups of bureaucrats who dub themselves “The Resistance.” Their goal is to frustrate all activity within the Trump Administration – regardless of whether said activity is critical to national security, economic stability, and now even public health – and they have successfully hindered Trump from taking an aggressive stand in managing the coronavirus. He wastes a ridiculous amount of time and energy shooing The Resistance away – all day, every day – when he could be focused on serving the American people.

As the virus was raging around the world, they were playing up a sham impeachment, blowing up taxpayer dollars and sucking all of the oxygen out of a political system with bigger things to worry about, over an entirely predictable outcome where they lost for the billionth time because for the billionth time their arguments were painfully childish and unpersuasive to most Americans.

When Trump made prudent decisions about closing the borders, they blasted him as racist 24/7.

The Resistance actively tries to drive highly qualified outsiders out of Washington DC by viciously smearing anyone who dares to be associated with Trump. You can be a literal choir boy and The Resistance will accuse you of operating a rape train in college, whatever the hell that is.

Their obsession with sabotaging the daily activity of the executive branch of government has become sociopathic. They truly don’t care if the country is destroyed so long as they get their gotcha Twitter Moment. They are also completely blind to the fact that most of the country regards them with the level of contempt they deserve, because they are beyond mentally ill at this point.

And now Pelosi thinks what the world needs is another round of highly partisan investigations carried out by the mouthbreathers she has put in charge of otherwise important congressional functions. This means that any future stimulus legislation is either unlikely to get done or likely to be structured in ways that do not help ordinary Americans but continue to enrich special interests when funding is scarce. So all the economic damage that comes with the ongoing economic shutdown going forward is unlikely to be intelligently mitigated. Just to nurse their decades-long dick-measuring contests during a crisis, because this is all Boomer politicians do – “investigate” each other ad nauseam.

And frankly, even the last coronavirus stimulus package, while necessary, was so highly partisan that it managed to include a litany of provisions that continue to nuke economic value even as they promise to provide assistance. Like the airlines have to fly empty planes around the country to “maintain capacity,” further draining their financial resources before they receive an injection of money to prevent them from going bankrupt. What were they even thinking? We don’t want you to file for bankruptcy, so we are forcing you to continue blowing money on superfluous expenses. Can these swamp rats just go away already?

Trump, per usual, has himself made some incredibly poor personnel decisions and is trusting people he should not be trusting. Having Dr. Fauci manage the coronavirus response was and continues to be a major problem. Despite all the phony hero worship, Dr. Fauci is very much embedded in the Washington DC political establishment. That’s pretty much his main qualification for the job, in fact. He has been pushing Trump to make decisions that have led to the complete collapse of the US economy – without important data like antibody testing, which could eliminate concerns that most of the US population has already been exposed to the coronavirus, not knowing it, and that telling people to stay home is pointless.

Dr. Fauci has zero timeline for managing the spread of the coronavirus or even testing his own assumptions. He says he would like for the shutdown to continue “until there isn’t a single case of coronavirus left.” He would be perfectly content to keep the economy shut down all year, and has little demonstrable concern about the profound human suffering that involves. If the Fed needs to print enough money to replace the entire GDP, then so be it in his book. Zimbabwe and Venezuela have amazing health care systems, you know.

This only reinforces conspiracy theories that he is a member of The Resistance, because the best nutrition for conspiracy theories is a fundamentally irrational reality. Dr. Fauci has surely accomplished that by advocating for a situation where job losses outnumber coronavirus cases 47 to 1 and are only getting started.

Dr. Fauci himself only weeks ago was making the rounds on political talk shows claiming there was no reason to worry about the coronavirus. Dr. Fauci and Dr. Birx now blame their blasé attitude on their decision to trust Chinese propaganda, which should be immediately disqualifying. This crowd also outright lied to the American people about the efficacy of covering their faces when going out in public, presumably as a tactic to stop the hoarding of medical gear when they could have just allowed health facilities to turn to the private market for supplies. Not only are they trusting Chinese propaganda, they are behaving like Red China themselves.

Trump apparently has his children interfering in the coronavirus response, because – per usual after Trump makes terrible personnel choices – his children are the only people left in DC that he trusts. Trump has a well-established pattern of selecting a bad czar and then not being able to move on to someone more reasonable and less egotistical because that person has seized the moment to make his or herself a household name. And part of that is Trump’s own doing – he tries to turn everyone around him into a brand, and he creates monsters in the process. The only person who has survived this treatment – thank God – is Treasury Secretary Steve Mnuchin, and that’s just because he’s a cold-hearted and calculating Goldman Sachs alumnus with the weapons-grade DGAF that comes with being on the spectrum. Without him, our economy would really be toast right now.

(5) There are solid clues that America and Europe are burning down their respective houses over a virus that has been circulating the world for months unnoticed. Here is one example:

No rational person would assume that the virus was floating around Brazil in early January (when this woman caught it) and not also floating around Florida. Socially, Florida is closer to Brazil than it is to the rest of the United States. No rational person would assume that the virus was floating around Florida and not New York. The social networks of these three places are thoroughly intertwined. Again, this is why we should be using machine learning to predict the path of viruses across networks of interaction, not “exponential growth – somewhere, anywhere, everywhere – we’re all gonna die” models. It’s possible that 50 million Americans have already been infected over the past few months, and no one noticed it because they did not overwhelm ICUs and the media was too busy crowing about Gordon Sondland rather than drumming up panic over pneumonia.

The primary reason we cannot answer this question is the behemoth health care bureaucracy in the United States exacerbates problems in emergencies rather than alleviating them.

At least 10 million Americans are unemployed thanks to Fauci and Birx and the hysterical models they have chosen to rely on without seriously considering counterexamples. (If you came to this blog looking for hero/credential worship, you are definitely in the wrong place. The only things I care about are outcomes.) And only now has the FDA gotten around to approving antibody testing in the United States that would give policymakers the first real clue as to how widespread the illness has been.

It may be that this thesis is wrong, but it 100% should have been tested before deciding to burn a $21 trillion economy down.

(6) It is a real problem in government and other cultural institutions that Baby Boomers refuse to move out of positions of power even though many are no longer the most intellectually qualified people to be making decisions. I am not saying this to be unnecessarily cruel or insulting, it’s simply a fact of aging that would be recognized in any other context.

Trump’s coronavirus task force looks like the A-Team of senior citizens and they share the “save us at any cost – and we do mean any cost” mentality that has torched our economy. Dr. Fauci is almost 80 years old himself, which incidentally is the median age of coronavirus-complicated deaths in Italy. This really isn’t all that far off of having a clearly senile Robert Mueller managing the Russia investigation and having his political operative underlings walk all over him.

We’ve got a demographic minority that is deeply invested in a deeply personal panic, and they are making incredibly dangerous and destructive policies to govern the many. Whatever the reverse of triage is, that’s what we are doing to our country.

This exact sort of situation is what our entire constitution was constructed around preventing – allowing a select group of people to strip everyone else of their liberties, property, ability to earn a living and feed and educate their children, because it might be construed as in the minority’s personal interest. If past generations acted the way our government is acting now, our country would have ceased to exist a long time ago. It’s lunacy, and that’s why it requires an atmosphere of panic, threats of jail time, fines, and threats to one’s reputation and well-being to achieve compliance. It requires lies like “this virus is actually killing a lot of young people without pre-existing conditions, so you better not go outside or it might get you too” and “stop buying masks, science says they only work for us.” It requires the country of George Washington to behave more like the country of Stalin.

The worst people that could ever be making public policy decisions – in any context – are people with short time horizons and an explicit conflict of interest. If someone’s policy mindset is “burn it all down and decide later if it was the right decision,” they don’t belong in US government. They belong in places like North Korea or Iran. We don’t need pseudo-scientific ayatollahs here. This shouldn’t even be a controversial observation.

There are younger scientists with far, far better knowledge of data science and technology out there. Some are in the private sector and not at universities. They could be running the coronavirus response right now not a man who is almost 80. They have not been a part of the solution to this pandemic beyond their own decisions to publish rational, contrarian content online and in the opinion pages (of mostly financial media) with the hope that actual science might stick somewhere that matters. Instead we are stuck with the Boomer political response, which involves a blind faith in swamptastic institutions to the point of believing propaganda is credible information and an absolute disdain for the immense cost of the response to three younger generations.

There is a reason why propaganda works on our current crop of leaders, and it’s not all that different from why senior citizens make the easiest fraud victims. They are the ones who are most sincerely convinced that their credentials and experience make them the best candidates for decision-making positions, but they are also the most removed from current culture and new technology, so they are the least likely to realize when they have been duped. You don’t have to be a wizard to punk someone with zero intellectual humility – it’s something Russian and Chinese trolls do all the time.

Given all that has happened, it is terrifying that America is going to vote on whether to be led by Trump – whose entire coronavirus response changes catastrophically on a whim, gets outsourced to charlatans with innumerate models, and can melt down in the span of a couple days – and a dude who is legitimately senile and would be in his EIGHTIES in the White House.

We’ve had two of the worst financial crises in US history in the course of 12 years and five foreign conflicts that have become mostly irrelevant to the American people, but sure, what’s another manufactured crisis before this generation of leadership goes away already? What do the trillions even mean at this point?

Treasury is offering **forgivable** loans for small businesses from stimulus legislation

In case this information helps any of my readers:

CNN – What small businesses need to know about the government’s new forgivable loan program

–article text below–

Treasury Secretary Steven Mnuchin has promised that by this Friday small business owners can apply for a new, forgivable loan to help keep their businesses afloat during the coronavirus crisis.

Nearly $350 billion has been allocated for that purpose in the new economic aid package signed into law last week.

Unless further technical guidance is issued soon, it might be tough for many lenders to launch on Friday, according to Chris Hurn, CEO of Fountainhead, a non-bank direct Small Business Administration lender. Otherwise, he thinks lenders should be ready to go by next week.

Many have already done what they can to prepare for an expected surge in demand. Hurn estimates his company alone is likely to process loan applications for more than $1 billion right off the bat.

Who is eligible to apply?

Generally, any small business with 500 or fewer employees is eligible.That includes sole proprietorships and independent contractors. It also includes nonprofits, veterans organizations and tribal businesses.In certain circumstances, businesses with more than 500 employees also may qualify.Applications will be accepted up to June 30. But the program is on a first come, first serve basis.

What is the money for?

The goal of the loan program is to help small businesses continue to pay their employees and their overhead costs in orderto stay afloat for the next couple of months.So long as you use the borrowed funds to make payroll and to pay expenses, such as utilities and your rent or mortgage, you won’t have to repay the loan and you will not owe income tax on the forgiven amount.In order for your loan to be fully forgiven you must maintain your headcount and not reduce employees’ pay.

But I had to let my employees go already. Does that mean I can’t get a loan?

You still can, so long as you can show you had employees as of Feb. 15, 2020. Once approved for a loan, you can use the money to rehire your staff.The loan forgiveness provisions will apply so long as employees are rehired by June 30, according to senior Treasury and Small Business Administration officials.

What do I need when I apply?

Lenders will ask you to fill out a two-page application, which can be found here.You must show lenders proof that your company was in operation on Feb. 15, 2020 and that you had employees for whom you paid salaries and payroll taxes.In addition, you’ll need to show proof of your average monthly payroll costs in 2019 (or for the first two months this year if your business is new).Independent contractors and the self-employed, who must wait until April 10 to apply, need to show proof of “payroll and other certain expenses” according to Treasury.You will not have to provide a personal guarantee or collateral to secure a loan, as you normally would for an SBA loan. But if you use the money for fraudulent purposes you will be subject to criminal charges.You will not be charged loan fees.

How much money can I get?

Loans will be made in an amount equal to 2.5 months of your average monthly payroll costs in 2019 (or the average of the first two months of this year if your business is new).

Does the money need to be paid back?

You will not have to pay back the loan so long as you use at least 75% of the money you get on payroll costs (including wages, benefits, payroll taxes plus state and local wage taxes). and the rest of the funds are spent on your business’ rent or mortgage, utilities and other overhead expenses. The money must be spent in the first eight weeks after you receive the loan.In other words, if you spend the borrowed money for authorized purposes over the first two months of the loan, that obligation will be forgiven. And the amount forgiven will not be treated as taxable income to you.At the end of eight weeks, you’ll have to show your lender proof of your expenses during that period.Payroll costs eligible for forgiveness may not exceed $100,000 per employee.

When would I have to pay the loan back if it’s not forgiven?

If any part of the borrowed money is used for unauthorized purposes, that amount will not be forgiven. And you will have to repay it over two years at a 0.5% interest rate.There’s an automatic six-month deferral on payments for all borrowers. So you would need to start paying it back, with interest, after six months.

Where can I get the loan?

All SBA-approved lenders as well as federally insured depository institutions, federally insured credit unions and Farm Credit System institutions will be able to make these loans if they choose. Senior Treasury officials said they are also looking into allowing some fintech companies to make loans as well.The SBA will be posting a tool for you to key in your zip code to find lenders near you participating in the program.If you’ve never taken out an SBA loan before, you might go to your primary bank first because lenders will be operating under so-called Know Your Customer regulations and that process will be streamlinedif you’ve previously workedwith the lender.

Do I have to go to a bank to apply?

No. The expectation is that you should be able to apply online.

Is it true that I can get the money the same day I apply?

Possibly, at some lenders. But it’s more reasonable to assume it could take two to three days after you submit an application, Hurn said. It’s up to every bank to decide when it disburses the money after an application is approved.

This loan will only support two months of my costs. Then what?

Good question. If the coronavirus crisis goes on for a long time, the Treasury and Congress will need to come up with more ways to provide capital to keep small businesses afloat.

Where can I go for more information?

For more detailed information on the loans, guidance put out so far by the Treasury and the SBA can be found here and here.

Disney furloughs non-union park employees starting April 19th

The jobs carnage continues as long-term shutdowns force major employers to toss in the towel. First Boeing this morning, now Disney. That’s close to half a million layoffs right there.

From CNBC:

Disney will furlough its non-union park employees starting on April 19 as the coronavirus pandemic keeps its theme parks closed.

“Disney employees have received full pay and benefits during this time, and we’ve committed to paying them through April 18, for a total of five additional weeks of compensation,” the company said in a statement Thursday. “However, with no clear indication of when we can restart our businesses, we’re forced to make the difficult decision to take the next step and furlough employees whose jobs aren’t necessary at this time.”

During the furlough, employees will receive full health-care benefits, with Disney paying the cost of employee and company premiums. They also will be able to continue with their Disney Aspire education programs, the company said.

Employees will also be eligible for $600 per week in federal compensation through the $2 trillion economic stimulus bill, as well as state unemployment insurance, according to Disney.

The entire Disney Parks, Experiences and Products segment has around 177,000 cast members, this includes people who work in its theme parks and at retail locations like the Disney Store. Disney declined to say how many of those employees will be affected by Thursday’s announcement.

“This reality has been sobering to all of us,” executives from Disney Parks, Experiences and Products wrote in a letter to staff Thursday. “As difficult as this decision was, we know it was the right one to help protect our cast members, our guests and our communities.”

Disney’s theme parks across the globe are closed indefinitely since large gatherings have been restricted. Parks in Asia have been closed since February and parks in the U.S. and Paris have been closed since March.

It’s unclear how the closure of the two California Disney parks will impact the opening of the Avengers Campus expansion at California Adventure. The new land was expected to open in July. It is unknown if workers have been able to continue working on the project.

Disney’s Parks, Experiences and Products is a massive piece of the company’s business. Last year, the segment accounted for 37% of the company’s $69.6 billion in total revenue.