How bad is the economy in the United States, is a measure of the US civil authority, FEMA likes to tongue-in-cheek with the “Waffle House Index”. The is in three stages, whether the popular Fast Food chain in the round-the-clock waffles, Sandwiches, scrambled eggs and bacon there, still can open. Green means everything is okay, yellow is the menu is limited and individual branches closed, in red the chain to power all the shops.
In the current Corona-crisis, FEMA would have to introduce a fourth level: dark Red. Because the pandemic is threatening the very existence of Waffle House. Walt Ehmer, chief of the family company, said in a local TV Interview that a quarter of stores have closed, most others could hardly serve clients. The turnover has dropped by more than 70 percent.
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10 million new unemployed people in just two weeks
The waffle houses are just a sign of how difficult the Corona pandemic, America’s economy has taken. In the past two weeks, tens of millions of US citizens reported as unemployed. Never in the history of the nation more. The record in 1982 with 695.000 applications considered so far, the year on unemployment benefit in a week. Last week, there were 6.6 million.
Tens of millions of new unemployed persons were recorded in the United States twelve years ago in the financial crisis. At the time, but it took 28 week, until the threshold has been reached. This time there were only two. Consequently, analysts outdo each other with predictions of how bad it could be. The Central Bank, the Fed most recently by an unemployment rate of 30 percent this year. The 47 million Americans would be without a Job. Exclusive equity Webinar with Beate Sander
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29 per cent of the economy are already lame
What is the mean, calculated by the Swiss Bank Credit Suisse this week: you expected for the current quarter until the end of June a decline in the gross domestic product (GDP) by an annualised rate of 33.5 per cent. That would be the worst burglar in the history of the USA since the Second world war. In the financial crisis, the Ministry of economy announced in the worst quarter, a decrease of 8.4 percent. The record so far is at minus ten percent from the year 1958, the so-called Eisenhower recession, named after the former President.
the Lockdown in the USA, there is still no country-wide regulation. So far, 40 of the 50 States have adopted some Form of restrictions. The Rating Agency Moody’s estimates that around 80 percent of all districts are affected. Overall, be placed so that approximately 29 percent of the economy currently lame.
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Corona-crisis GDP. have a 75 percent decline
With such restrictions in the USA are not alone, it also exists in Germany and many other countries in the world But the concern is that it could take between Los Angeles and New York for much longer than elsewhere, until the economy opens up again.
Because nowhere in the world there are now more Infected and more deaths than in the United States. According to the WHO, the number of cases rose on Wednesday alone, almost nine percent to around 395,000 cases. 12.740 people have already died, almost 2000 on one day alone. The criticism of U.S. President Donald Trump and the government is getting louder. 55 percent said in a survey, the White house didn’t respond to the pandemic.
Trump even wanted to open the US economy is actually at Easter against the advice of medical experts. In the meantime, he has moved away from it. But he would take back the limitations of today rather than tomorrow. Instead, they will probably stay even longer. The infection rate is much too high to even think about.
But each day, with restrictions on the US economy enormously. Moody’s calculated that GDP would decline in the second quarter by 75 per cent, when the previous regulations until the end of may last. This could be even more optimistic, because Moody’s assumes in its analysis only on the Now-state and additional the unemployed and the company has not attributed to bankruptcies even in. The deepest point is you don’t anyway – but do not go as winners from the crisis, FOCUS Online is The lowest point you anyway – but you will go as a winner from the crisis
the first major Corporation to file for insolvency on
reports of the crisis calls for, the first prominent victim: The Oil company Whiting Petroleum notified last Thursday of insolvency. The Fracking specialist from Denver, Colorado, last made $ 1.5 billion in sales and employs about 500 employees. To in the event of insolvency, all procedures to keep your Job.
The company itself, however, is only a shadow of its former self. Since the beginning of January, the first Corona appeared in patients in China, collapsed the share price by up to 96 percent. Whiting Petroleum has today is worth only a market capitalization of $ 33 million.
On Wall Street, the panic messages still not read. Although the S&P 500 is about 19 percent below its High in mid-February, but he has won in the past two weeks, about 22 percent of value added – similar to the German Dax. Behind it is a 2 trillion Dollar rescue’s program, which has been decided by the US government to support the economy and this could double the Central Bank, the Fed even once. It helps but the big, listed companies. The small waffle houses on the other hand, tight.
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