IN THIS ISSUE:
1. 2Q GDP Expected to Be Down 30%-50%, Maybe More
2. The Question Is: How Will the Financial Markets React?
3. Record Wave of Bankruptcies to Come in Months Ahead
4. Bankruptcy Courts Jammed & Likely to be Overwhelmed
The Commerce Department will release its first estimate of second quarter Gross Domestic Product on Thursday of this week, and it is widely expected to be really bad due to the economic lockdown earlier this year. Most forecasters expect 2Q GDP to be down 30-50%, making it the worst quarterly downturn since the Great Depression.
Following that discussion, we’ll turn our attention to a crisis brewing in our nation’s bankruptcy courts, which are widely expected to get overwhelmed in the month ahead. The number of bankruptcies by small and large companies will easily break all records this year.
2Q GDP Expected to Be Down 30%-50%, Maybe More
Today I want to focus our attention on this Thursday’s Gross Domestic Product report for the 2Q. This will be the Commerce Department’s first estimate of 2Q GDP, and it is widely expected to be really bad.
The fact that this report will be really bad should not surprise anyone because we all know a wide swath of the US economy was shut down in much of the 2Q. More than 50 million Americans were furloughed or lost their jobs permanently in recent months, although some were able to go back to work in late May, June and so far this month.