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‘Stalling’ economic recovery could mean a ‘self-perpetuating recession’ as job losses mount: report

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President Donald Trump at Mar-a-Lago New Year's Eve Party (Photo: Screen capture)

America’s ongoing COVID-19 crisis could be harming the economic recovery of coronavirus shutdowns, according to a new report in The Washington Post.

“If there were still hopes of a ‘V-shaped’ comeback from the novel coronavirus shutdown, this past week should have put an end to them. The pandemic shock, which economists once assumed would be only a temporary business interruption, appears instead to be settling into a traditional, self-perpetuating recession,” David J. Lynch of the newspaper reported Saturday, citing job loses by United Airlines, Brooks Brothers filing for bankruptcy and the closure of hundreds of stores by Bed Bath and Beyond.

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The report noted Jared Kushner’s hopes “that by July the country’s really rocking again.”

The economic crisis could impact Trump’s re-election chances.

“After two surprisingly strong months, the economy could begin shedding jobs again this month and in August, Morgan Stanley warned Friday. Many small businesses that received forgivable government loans have exhausted their funds while some larger companies are starting to thin their payrolls in preparation for a longer-than-expected downturn,” The Post noted. “Fresh labor market weakness would represent a profound disappointment for millions of American workers and President Trump, who is eager to highlight economic progress with only a few months remaining before the November election.”

Jim O’Sullivan, the chief U.S. macro strategist for TD Ameritrade, said he’s describing the recovery as “stalling.”

“But the risk there is that the numbers start turning negative again,” O’Sullivan warned.

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There is risk of a downward spiral.

“In a worrisome sign, more than two months after states like Georgia lifted their shelter-in-place orders, layoffs are spreading beyond companies that provide services requiring direct human contact,” the report noted. “As disruption from the pandemic lingers, this could mean that the job loss is starting to feed on itself in a classic recessionary spiral, economists said.”

Read the full report.


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2020 Election

Sidney Powell’s ‘Kraken’ lawsuit suffers setback as Georgia GOP county chair demands to be removed

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The Republican chair in Cobb County, Georgia said on Thursday that he wanted to be removed from Sidney Powell's election lawsuit because he never gave his consent to be included.

Powell, who was kicked off President Donald Trump's legal team, was criticized this week after she filed a lawsuit in Georgia that was riddled with typos.

Powell had previously promised that the lawsuit would "release the Kraken" in an effort to overturn President-elect Joe Biden's win in Georgia.

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2020 Election

‘Fox & Friends’ graphic destroys Trump for ‘baselessly’ and ‘falsely’ claiming election was rigged

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Viewers of Fox & Friends were treated to a dose of the truth on Thursday when the show admitted that President Donald Trump has "baselessly" and "falsely" claimed that the 2020 election was rigged.

The message to Fox News viewers appeared on the network's ticker graphic that is displayed at the bottom of the screen.

"President Trump phoned into a meeting organized by Republicans in Pennsylvania Wed., baseless claiming that the election was 'rigged' and falsely claiming that he won it 'by a lot,'" the Fox News ticker reported. "Most of Trump's legal efforts to challenge voting procedures in PA, MI and other states have been thrown out and his campaign has not produced sufficient evidence to back up claims of widespread voter fraud."

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2020 Election

Exiled Trump lawyer Sidney Powell misspells ‘district’ two different ways in purported ‘epic’ Georgia lawsuit

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Exiled Trump attorney Sidney Powell vowed to file an "epic" lawsuit against the state of Georgia to overturn President-elect Joe Biden's win in the state -- but it seems the lawsuit is marred by some epic spelling errors.

Bloomberg reports that Powell's lawsuit misspells the word "district" twice in two different ways.

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