The number of newly out-of-work employees moved lower in the last week in all but four states, but the totals remain extremely high. This is according to initial claims for unemployment insurance benefits filed during the week at state agencies. The damage done in Michigan, Ohio and California is ... READ MORE >
coronavirus
RSM Monthly Index of Economic Activity turns negative for first time since Great Recession
The RSM Monthly Index of Economic Activity is pointing toward negative real GDP growth for the first time since the Great Recession of 2008-9. Our index of underlying economic activity – which has been in decline since August 2018 as the global economy suffered through a trade war and a ... READ MORE >
Initial jobless claims point to near real-time unemployment rate of 18.1%
The slow-motion train wreck of weekly initial U.S. jobless claims continued as data for the week ending April 11 produced an additional 5.245 million applications, implying a near real-time unemployment rate of 18.1% at a minimum. Once one adds in those not captured by the data, we are almost ... READ MORE >
How private equity firms might qualify for SBA financing
In early 2012, The Atlantic published an article, “Private Equity Is a Force for Good” that gave a clear-eyed look at the industry and its impact on the economy.. Eight years later, the private equity industry, with billions in capital ready to put to work, is in a position to help the economy recover ... READ MORE >
Retail sales declined 8.7% in March, with more distress to come
The condition of the American consumer is impaired and will be for some time. The combination of soaring unemployment and shelter-in-place policies across the economy sent U.S. retail sales down 8.7% in March. The core ex-autos number declined by 4.5%, while the ex-gasoline metric dropped by 8%, all of ... READ MORE >
Companies tap $247.5 billion in loans under Paycheck Protection Program
Small to midsize business seeking relief from economic woes due to the Covid-19 pandemic have tapped $247.5 billion from the government’s Paycheck Protection Program through April 13, less than two weeks after the program began accepting applications, according to data released by the Small Business ... READ MORE >
How business development companies can weather the coronavirus downturn
The coronavirus pandemic has taken a severe toll on the American economy, with small and midsize businesses being hit especially hard. It’s not surprising, then, that the stock prices of business development companies, which invest in small and midsize companies along with distressed enterprises, have ... READ MORE >
What lenders know about the Main Street Lending Program, and the questions that remain
On April 9, the Federal Reserve announced the Main Street Lending Program, the latest in a series of liquidity commitments to bolster the economy during the coronavirus pandemic, particularly for small and medium-size businesses The program is backstopped by $75 billion in equity investment that will ... READ MORE >
Amid disruption in health care, private equity is poised to put its cash to work
As the human and economic toll of the coronavirus pandemic has mounted, companies across industries have fallen into distress, including in the health care sector. As they look for a lifeline, private equity firms are in position to put some of their significant cash on hand to work. Many of these ... READ MORE >
When to reopen the economy? Beware of a false optimism surrounding coronavirus.
The outbreak of the coronavirus surpassed 450,000 reported cases of infection and 1,900 deaths per day in the United States. Our RSM model of the Covid-19 spread extrapolates a half million infections and more than 15,000 deaths by this coming weekend. As the federal government gears up for a debate on ... READ MORE >