The outbreak of the coronavirus provided the exogenous shock to send the longest economic expansion in American history to an end. The robust steps taken recently by the Federal Reserve to shore up the front end of the money markets are essential to the free flow of capital and global economic stability, ... READ MORE >
coronavirus
Fed takes robust action to backstop the economy and financial markets
The Federal Reserve moved aggressively on Monday to mitigate what is going to be a severe disruption in the American economy by committing to an open-ended quantitative easing program and the construction of the Main Street Business Lending Program to support small and medium-sized firms. That ... READ MORE >
Saving small and medium-size business: temporary lending facility needed now
This week U.S. Treasury Secretary Steven Mnuchin told a group of Republican senators they need to act to prevent an increase in the unemployment rate to 20%. While some would say that is political hyperbole, it is not. Policymakers, investors and company managers will observe a jump in first-time jobless ... READ MORE >
Insurance industry girds for major impact from coronavirus
The coronavirus pandemic has turned everyday life upside down for nearly every American. Many schools have closed and in certain areas residents have been ordered to stay in their homes. As its impact is felt across the economy, the insurance industry will not be spared. Some of the effects will be felt ... READ MORE >
How middle market retailers can position themselves to survive coronavirus, and Amazon
Just as middle market retailers were scrambling to figure out how they would handle the fallout from the coronavirus and maintain their businesses, the industry’s behemoth, Amazon, weighed in with its own plan. Usually, these announcements carry ominous news for small and medium-size retailers. But ... READ MORE >
Can hotels become hospitals? Thinking creatively about how to put empty space to work
Hotel companies in the United States are imploring Washington for relief amid the escalating cancellations because of the coronavirus pandemic. Industry leaders face seemingly impossible decisions as revenues have all but disappeared while significant fixed expenses remain. Chief executives from the ... READ MORE >
Just how deep is the supply shock? West Coast ports tell the story.
West Coast port activity implies that the supply shock affecting the domestic economy is broad and deep. This strongly suggests a sharp decline in consumption and industrial activity as firms struggle to acquire supplies to make final goods and consumers pull back because of a lack of finished goods on ... READ MORE >
For family offices, coronavirus presents a new challenge, and chance to reposition
As the human and economic toll of the coronavirus mounts, no sector of the economy has been immune from the downturn, and this includes family offices. Like any industry sector, family offices are facing challenges in managing the crisis. For instance, employees working from home was uncommon in the ... READ MORE >
Jump in initial jobless claims signals an impending recession
Weekly claims for unemployment benefits jumped to 281,000 for the week ending March 14, likely the first sign of the catastrophic disruption to normal life and an impending economic recession caused by the spread of the coronavirus. The only real question now is if the damage caused by the shocks ... READ MORE >
Housing was set to soar. Then the coronavirus hit.
Just a few weeks ago, the housing market was poised to take off. Home builders had changed strategy to focus on entry-level homes to serve a growing need in the market. Permits and housing starts were at 10-year highs. Wage growth and unemployment were strong. Interest rates were down to 3.5%, bringing ... READ MORE >