March 24, 2020
The COVID-19 virus is not going away anytime soon.
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Yesterday Harvard economist Eric Feigl-Ding said: “… we are in it for at least two months or more. And maybe the vaccine will arrive earlier than 12 months if we get really successful…” No vaccine for a year? The changes in behavioral economics we see now will likely persist long after the crises is over.
It looks like the mortgage industry is in a slow-motion collapse.
So many people are now out of work that big mortgage lenders are anticipating a serious loss of revenue in the coming weeks. When debtors can’t pay their bills creditors can’t pay theirs either. However, these dire pronouncements might also be calculated to pressure Congress to include a bailout in their relief bill.
As a sign of things to come, entertainment behemoth Disney has seen a 40% drop in its share price while Netflix stock shot up 12%.
People making decisions about the future health of Disney are clearly not optimistic. Netflix, the stay at home stand by, is looking like a much better long-term investment. This is a harbinger of what our society will look like in the future.
States are taking an ominous turn away from liberal democracy.
States are taking an ominous turn away from liberal democracy by ignoring the Constitution and enacting sweeping First Amendment violations. While the federal government is signally its desire to lift restrictions on public gatherings state governments are having no part of it. Several states have issued orders to stay at home. Most troubling, South Carolina has banned gatherings of more than two people.
Police use night visions drones to prevent gatherings
In order to enforce these laws police are using drones equipped with night vision cameras and loudspeakers to locate people outside their homes and chase them back in. Ironically these new drones are made by a Chinese manufacturer.
In Mexico it’s business as ususual
Mexico President Lopez-Obrador pledges no bailouts to corporations and is encouraging family outings to restaurants. COVID-19 has not hit Mexico in force, but economists are forecasting a 3% decrease in GDP. If things should go badly in Mexico expect to see waves of refugees massing on our southern border seeking refuge with families in the United States.