The crisis situation in the USA is developing rather sadly. The printed money from the Fed not only put pressure on the US national debt, but also did not help save the country’s economy. Let’s take a look at how bad American business is.
In just 2 quarters, more than 3,000 firms filed for bankruptcy, thereby reaching the level of the 2009 crisis. The coronavirus pandemic has literally wiped out all the weak companies in the market, and that’s just for today. Many experts fear that there is no end in sight for the COVID-19 situation in the United States. In their opinion, the entire real estate sector will go after these firms, because hotels, airlines and other firms will not be able to survive in the current realities.
Solvency at the bottom
In the US, in addition to the outbreak of coronavirus, there are also massive protests related to the death of George Floyd. All these situations intensified the social aggression of citizens, because of which many businesses were forced to close, and people were losing jobs. By the way, over 1.3 million people were added to the number of unemployed in a week, making the total number of 40 million.
Mass unemployment has led to the fact that people are becoming insolvent. According to Bloomberg, two-thirds of all New Yorkers do not own a home, but rent, and a quarter of them have never been able to pay their rent since March. The consequence of this situation may well be a very deep crisis situation, and firms associated with real estate will begin to massively go bankrupt.
In such a scenario, it is quite clear that the country has driven itself into a corner. The Fed is unable to handle the crisis. The United States is like a time bomb that will explode soon.