Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65460 Thu, 13 Aug 2020 18:40:11 GMT Empty apartments in Manhattan reach record high, topping 13,000 http://implode-explode.com/viewnews/2020-08-13_EmptyapartmentsinManhattanreachrecordhightopping13000.html The number of apartments for rent, or listing inventory, more than doubled over last year and set a record for the 14 years since data started being collected, according to a report from Douglas Elliman and Miller Samuel. As the number of apartments listed for rent hit 13,117, the number of new leases signed fell by 23%.

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Manhattan apartment rentals are still far from cheap. The average rental price for a two-bedroom apartment is $4,620. Yet the so-called effective median rent -- what people pay with concessions -- fell 10% over last year, according to Miller. Aside from offering free rent, brokers are offering to pay broker fees, adding gift cards to Home Depot and other retailers, and offering initial cleaning services, brokers say.

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The surge in empty apartments in the nation's largest rental market is likely to have ripple effects throughout the economy. Housing experts estimate that about half of Manhattan's apartment rentals are owned by small business owners, rather than large publicly traded companies or the big, well-funded real estate families. As the small landlords lose income, they may be unable to pay property taxes, which is New York City's largest source of revenue. A drop in property taxes could result in cuts to services, which could make New York less attractive to new residents.

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iehi-feed-65459 Thu, 13 Aug 2020 14:08:23 GMT Thousands of Small Businesses Going Bankrupt in US Are Uncounted in Covid http://implode-explode.com/viewnews/2020-08-13_ThousandsofSmallBusinessesGoingBankruptinUSAreUncountedinCovid.html This wave of silent failures goes uncounted in part because real-time data on small business is notoriously scarce, and because owners of small firms often have no debt, and thus no need for bankruptcy court.

... Yelp Inc., the online reviewer, has data showing more than 80,000 permanently shuttered from March 1 to July 25. About 60,000 were local businesses, or firms with fewer than five locations. About 800 small businesses did indeed file for Chapter 11 bankruptcy from mid-February to July 31, according to the American Bankruptcy Institute, and the trade group expects the 2020 total could be up 36% from last year.

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Chapter 11 bankruptcy gives a business protection from its creditors while the owners work out a turnaround plan. For smaller companies, though, the extra time might not make any difference. "Bankruptcy cannot create more revenue," said Robert Keach, a restructuring partner at New England-based Bernstein Shur and former president at the American Bankruptcy Institute.

Some owners fear bankruptcy could scar their credit reports and hurt their future chances to rebuild. Bankrupt businesses have a nearly 24 percentage point higher likelihood of being denied a loan, according to the SBA, and a filing can show up on a credit report for 10 years.

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To be sure, small business attrition is high even in normal times. Only about half of all establishments survive for at least five years, according to the SBA. But the swiftness of the pandemic and the huge drop in economic activity is hitting hard among typically upbeat entrepreneurs. About 58% of small business owners say they're worried about permanently closing, according to a July U.S. Chamber of Commerce survey.

In a June 2020 NFIB survey, a net 31% of owners reported lower sales in the past three months, while 7% reported higher sales a year earlier. In the same survey, only 13% of business owners said it was a good time to expand, a dip from 24% a year earlier.

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iehi-feed-65458 Sun, 09 Aug 2020 20:02:56 GMT Congressional panel slams Fed's Main Street Lending Program as Hotel works oppose CMBS owner bailout http://implode-explode.com/viewnews/2020-08-09_CongressionalpanelslamsFedsMainStreetLendingProgramasHotelworkso.html The Main Street facility took three months to get up and running and has been little used relative to some of the other emergency lending programs created to help companies survive the pandemic. So far, only 509 banks have signed up to be Main Street program lenders, and 29 have made loans. Only 54 loans totaling $580.9 million have been issued to date. For comparison, the Paycheck Protection Program has pushed out more than 5.1 million loans worth $523.4 billion.

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"I think the issue is that the Fed is trying to solve a problem that doesn't exist and it's incapable of solving the problem that does exist. By law, the Fed can only support loans, and more loans are not the answer here for most companies," Ramamurti said, urging Congress to act to provide direct support to midsize firms with strings on the money to ensure that workers also benefit.

The Main Street Lending Program relies on banks to issue mid-market companies five-year term loans with low interest rates. The Fed then effectively buys 95 percent of those loans from the bank. The way the terms work now, companies little hurt by the pandemic can get better loans from regular lenders.

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Gwen Mills, secretary-treasurer of UNITE HERE, which represents hotel, casino and restaurant workers, opposed an asset-based facility, saying it would be a bailout for real estate investors that would do little to help laid-off employees.

"Lobbyists claim if the Fed doesn't rescue [commercial mortgage-backed securities] borrowers, hotels will default and workers won't have jobs to come back to, but that is not our experience, and this isn't the first time hotel owners got themselves in trouble using these inflexible loans," she said. "After the financial crisis, there were scores of defaults across the country, but defaults and foreclosures didn't lead to closed hotels. Hotel workers, who were used to seeing absentee owners come and go, understand that jobs are driven by occupancy. And only ending the pandemic can fix that."

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iehi-feed-65457 Fri, 07 Aug 2020 23:38:38 GMT Coronavirus has already dealt a blow to Social Security's finances. A payroll tax cut would make it worse http://implode-explode.com/viewnews/2020-08-07_CoronavirushasalreadydealtablowtoSocialSecuritysfinancesApayroll.html If this economic downturn is as bad as the Great Recession a decade ago, then the Social Security trust funds could run out of money in 2029, according to the Bipartisan Policy Center. After that, beneficiaries could see a 31% cut in retirement payments.

The program's trustees had projected earlier this year that the trust funds would be depleted in 2035, but that did not take the coronavirus pandemic into account.

It would be the first time the estimated insolvency date was within a decade since the crisis of the 1980s, which prompted several changes, including raising the retirement age, said Shai Akabas, the center's director of economy policy.

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The [depletion] projection depends heavily on when the economy is estimated to recover. If the economy bounces back quickly, under a V-shaped recovery, the depletion date would be 2034, according to the Penn Wharton Budget Model. But a slower U-shaped recovery would accelerate that by two years to 2032.

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The situation is even more dire for the Medicare trust fund, which its trustees projected earlier this year would run out of money by 2026, not taking into account the pandemic.

If employment and payroll tax revenues follow the same pattern as the Great Recession and its aftermath, the hit to the Medicare trust fund could be $175 billion between 2020 and 2023, according to an estimate by experts at the American Enterprise Institute, a right-leaning think tank. That would accelerate the depletion date by three years.

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iehi-feed-65452 Mon, 03 Aug 2020 23:42:38 GMT The next housing crisis is here http://implode-explode.com/viewnews/2020-08-03_Thenexthousingcrisisishere.html The eviction wave has already started, said Will Parker at The Wall Street Journal. The national moratorium only covered tenants in buildings with federally backed mortgages. States passed their own eviction limits, but some, such as Texas, have already let them expire. In a sign of things to come, attorneys in Houston are seeing "long lines at courthouses, sometimes people standing shoulder to shoulder" awaiting eviction hearings. "Stuck between tenants who can't, or simply won't, pay up and banks that still expect mortgage payments every month," landlords are also feeling the squeeze, said Tim Logan at The Boston Globe. In Massachusetts, a fifth of the landlords say "they don't know how they will pay their bills this year." That will only get worse if the state extends its eviction ban without help for property owners.

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"Perhaps this is all starting to sound like a redux of the mid-2000s housing crisis," said Derek Thompson at The Atlantic. "It's not." In many ways, it is the opposite. Back then, "foreclosures soared" and single-family homes stood empty in the suburbs. Now there is an undersupply of suburban housing and a hot market in new construction. The problem today is in the cities, where the pandemic has accelerated a crisis of affordability. "Without income, renters can't pay rent and utilities. Without monthly payments, landlords and other companies can't make mortgages and bond payments." Housing costs in cities have been approaching a crisis for years; thanks to the pandemic, that crisis is here, and "dangerously close to spiraling out of control."

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iehi-feed-65449 Fri, 31 Jul 2020 22:30:59 GMT Gold powers to new record on weak US dollar and GDP; Cornered Fed http://implode-explode.com/viewnews/2020-07-31_GoldpowerstonewrecordonweakUSdollarandGDPCorneredFed.html Gold rose on Friday to hit a new all-time high, as a sliding dollar and dire economic numbers from far and wide sparked a rush to safety in bullion. It was gold's best month since February 2016, and its fifth straight positive month... Spot gold gained 0.58% to trade at $1,970.81 per ounce, while U.S. gold futures settled 1% higher at $1,985.9, after earlier breaking above $2,000 for the first time on record.

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The dollar was on track for its biggest monthly drop in almost a decade...Safe-haven bullion has gained nearly 30% so far this year, propelled by low interest rates globally and widespread stimulus from central banks adding to support for the metal considered a refuge from inflation and currency debasement.

"With policy rates already at or even below the zero bound, support to gold prices will increasingly have to come from higher inflation, in our view," said BofA Global Research, which expects gold to hit $3,000 per ounce in the coming 18 months.

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Silver climbed 4.2% to $24.34 per ounce, on course for a monthly rise of about 33%, its largest on records going back to 1982, supported by investment and industrial demand.

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iehi-feed-65447 Mon, 27 Jul 2020 19:01:04 GMT These NYC Businesses Lasted Decades. The Virus Closed Them for Good. http://implode-explode.com/viewnews/2020-07-27_TheseNYCBusinessesLastedDecadesTheVirusClosedThemforGood.html A gun store that opened in 1911. An Irish pub that had drawn crowds since the Reagan administration. A coffee shop that sheltered frightened Brooklyn residents during the 2001 terrorist attacks.

These small businesses -- John Jovino Gun Shop in Little Italy, Coogan's in Washington Heights and Cranberry's in Brooklyn Heights -- are among the mom-and-pop shops and restaurants in New York that have withstood decades of economic downturns, wars and natural disasters, helping to anchor their neighborhoods and define the city.

But they could not survive the coronavirus pandemic, which has ravaged not just fragile small businesses but stalwarts that had lasted for generations. Many were especially reliant on repeat customers and foot traffic, and their income dried up almost overnight when the state shut down to stop the spread of the virus.

Their losses have not only left troubling holes in their neighborhoods but could signal even deeper trouble for other small ventures.

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Nearly 3,000 small businesses in New York City have closed for good in the past four months, blaming falling revenue, vanished tourism and ballooning debt, especially for overdue rent. Some older businesses pointed to their failure to develop robust online commerce that might have carried them through the tough times.

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iehi-feed-65446 Mon, 27 Jul 2020 17:32:10 GMT The Coronavirus Turns Midtown Manhattan Into a Ghost Town, Causing an Economic Crisis http://implode-explode.com/viewnews/2020-07-27_TheCoronavirusTurnsMidtownManhattanIntoaGhostTownCausinganEconom.html Editors and account managers at the Time & Life Building in Midtown Manhattan could once walk out through the modernist lobby and into a thriving ecosystem that existed in support of the offices above. They could shop for designer shirts or shoes, slide into a steakhouse corner booth for lunch and then return to their desks without ever crossing the street.

To approach this block today is like visiting a relative in the hospital. The building, rebranded a few years ago and renovated to fit 8,000 workers, now has just 500 a day showing up. The steakhouse dining rooms are dark.

On a sidewalk once lined with food carts, a lone hot-dog vendor stood one recent Friday on a corner below the building. His name is Ahmed Ahmed, and he said he used to sell 400 hot dogs a day. How many now? "Maybe 10."

Midtown Manhattan, the muscular power center of New York City for a century, faces an economic catastrophe, a cascade of loss upon loss that threatens to alter the very identity of the city's corporate base. The coronavirus's toll of lost professions, lost professionals and untold billions of lost income and tax revenue may take years to understand and resolve.

Other neighborhoods are rushing to reopen, while Midtown remains stuck in a purgatorial Phase Zero, its very purpose -- to bring as many human beings together as possible -- strangling most hope of a convincing comeback in the foreseeable future and offering a sign of what may lie in store for business districts across the country.

Upstairs, floors are mostly empty, as companies reassess their need for office space, raising serious questions about the future of the city's commercial real estate market. Downstairs, streets were lined with the creature comforts that made working in Midtown not only bearable, but even fun. They are vanishing, and with them, the men and women who fed, clothed, poured drinks for and drove the people in those tall buildings.

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In jeopardy of extinction, at least in its known state, is the corporate office culture at large -- its corner suites and cubicles, water-cooler movie reviews, coffee breaks, office crushes, shoeshines, black cars. Happy hour, "Mad Men."

That show was set in part in the Time & Life Building, which lent a shorthand nod to corporate chic. Today, the story of the state of Midtown can largely be told with a close look at the block near Rockefeller Center where it has stood for more than 60 years.

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iehi-feed-65440 Wed, 22 Jul 2020 19:06:11 GMT Gold futures blast forward to their highest since 2011; silver soars to highest finish since 2013 http://implode-explode.com/viewnews/2020-07-22_Goldfuturesblastforwardtotheirhighestsince2011silversoarstohighe.html iehi-feed-65439 Wed, 22 Jul 2020 15:42:35 GMT After CEO's Passing, Prodigy RE Crowdfunding Network, Assemblaged CoWorking Go Dark http://implode-explode.com/viewnews/2020-07-22_AfterCEOsPassingProdigyRECrowdfundingNetworkAssemblagedCoWorking.html In the month before he died, Rodrigo Niño led a daily meditation series over Zoom. Dressed in a different striped caftan each morning, a grey-bearded Niño led the early-morning sessions for viewers confined at home at the height of the pandemic in late April.

SEE ALSO: CIT Group's Chris Niederpruem on Taking the Helm of What He Helped Kickstart

Working off the teachings of consciousness guru Richard Rudd, Niño spoke about mortality, self-reflection, and the expanded self. "We forgot that we forgot that we don't know who we really are," he said on Day 16.

Less than two weeks later, Niño--once a luxury real estate broker to rich Latin Americans, then a pioneer peddling the wonders of crowdfunding, and finally the enlightened founder of The Assemblage, a center for the consciousness community in New York--passed away from melanoma cancer.

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When he died, the empire he'd built over two decades was crumbling. The assets he had amassed with his crowdfunding company, Prodigy Network, were facing financial ruin, he was facing a string of lawsuits, and The Assemblage had been reduced to a skeleton crew, with its staff furloughed, and members scattered by the pandemic.

The implosion of Niño's identity and the apparent implosion of Prodigy has left those thousands of investors in the dark over the fate of their investments.

Multiple investors, lawyers and Assemblage members have reached out to the company in the last several weeks, but they have heard nothing back. Both phone numbers on Prodigy's website are no longer working, The Assemblage ceased operations in June, and two of Prodigy's assets sold several days later at a loss.

It's a steep fall from the early days of Prodigy, which made waves as a pioneering crowdfunding platform, raising hundreds of millions of dollars. Within the space of a few years, Prodigy launched three AKA-branded hotels, two coworking properties for The Assemblage and a live-work hotel in Manhattan's hottest markets, including Nomad, the Financial District and Tribeca.

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iehi-feed-65437 Mon, 20 Jul 2020 19:03:44 GMT Mark Cuban says 2020 stock-market rally 'very similar' to tech bubble--'everybody's a genius' http://implode-explode.com/viewnews/2020-07-20_MarkCubansays2020stockmarketrallyverysimilartotechbubbleeverybod.html iehi-feed-65435 Mon, 20 Jul 2020 13:53:27 GMT Global Real Estate Investment Plunges Amid Covid Pandemic http://implode-explode.com/viewnews/2020-07-20_GlobalRealEstateInvestmentPlungesAmidCovidPandemic.html Global real estate investment fell by 33% in the first half as the coronavirus pandemic battered economies and disrupted deals.

The Asia-Pacific region took the biggest hit, with volumes down 45% from the year-earlier period, because it was the first struck by the outbreak, according to a report from broker Savills Plc. Investment dropped by 36% in the Americas and 19% in Europe, the Middle East and Africa.

Investment is "expected to remain well below pre-pandemic levels for the rest of 2020 as investors wait for market clarity," Simon Hope, Savills head of global capital markets, said in a statement on Monday. "However, certain sectors are expected to outperform as investors focus on secure assets, namely logistics, residential and life sciences."

The global economy has been hammered by the pandemic, with the International Monetary Fund forecasting a 4.9% contraction this year. IMF chief economist Gita Gopinath has said the cumulative loss for the world economy this year and next as a result of the recession is expected to reach $12.5 trillion.

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iehi-feed-65434 Sun, 19 Jul 2020 20:10:07 GMT Here's What Everyone, Including Mary Trump, Gets Wrong About Donald Trump's Failed Response to COVID-19 http://implode-explode.com/viewnews/2020-07-19_HeresWhatEveryoneIncludingMaryTrumpGetsWrongAboutDonaldTrumpsFai.html iehi-feed-65433 Sun, 19 Jul 2020 20:02:23 GMT 'Riddled With Lies': Analysis Finds Fox News Covid-19 Coverage Featured Misinformation 253 Times in Just Five Days http://implode-explode.com/viewnews/2020-07-19_RiddledWithLiesAnalysisFindsFoxNewsCovid19CoverageFeaturedMisinf.html MMFA revealed that: Nearly half of Fox's coronavirus misinformation was about the science of coronavirus and health recommendations from experts (115 instances). Fox politicized recommended public health measures, such as face masks usage and business closures, 63 times. Fox emphasized the economy and reopening schools 46 times despite public health concerns. Fox's "The Ingraham Angle" was responsible for a quarter of all coronavirus misinformation on the network. Fox's "straight news" shows accounted for more than one-third of all coronavirus misinformation.

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"Ingraham herself pushed coronavirus misinformation 38 times, which included 21 instances of undermining and misrepresenting the science on the coronavirus and 13 instances of politicizing the response to the pandemic," he continues. "Fox personalities and guests on 'The Ingraham Angle' were responsible for an astonishing 63 instances of misinformation."

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Citing six polls that have shown Fox viewers "are woefully --and dangerously--misinformed regarding the coronavirus," Savillio says that "these recent events illustrate the real-world consequences of Fox's continued broadcasting of coronavirus misinformation that downplays the threat of the virus, dismisses the recommendations of public health officials, and misrepresents the scientific consensus on the disease."

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iehi-feed-65431 Wed, 15 Jul 2020 21:05:54 GMT Trump Financial Regulator Quietly Shelved Discrimination Probes Into Bank of America and Other Lenders: Propublica http://implode-explode.com/viewnews/2020-07-15_TrumpFinancialRegulatorQuietlyShelvedDiscriminationProbesIntoBan.html Since President Donald Trump took office, the OCC has quietly shelved at least six investigations of discrimination and redlining, according to internal agency documents and eight people familiar with the cases. Flagstar Bank, a leading lender in Michigan, wrongly charged Black homeowners more through a network of mortgage lending affiliates, OCC officials concluded in 2017. That same year, agency examiners found that Colorado Federal Bank, an online lender, was doing the same to female borrowers.

Another inquiry by OCC officials concluded that Chicago-based MB Financial, a lender acquired by Fifth Third Bank last year, charged Latinos too much on mortgage loans. Cadence Bank, a lender in several Southern states, was turning away minority borrowers in Houston, according to an OCC investigation. Fulton Bank, a lender based in Pennsylvania, had been discriminating against minorities in parts of Richmond, Virginia, and its home state, regulators concluded.

In each case, despite staff recommendations that fines or other penalties be imposed, the OCC took no public action and closed the investigations quietly. In the past, banks have had to pay substantial sums after similar investigations. In 2012, in the wake of the housing crisis, Wells Fargo paid $175 million to resolve allegations that it charged Blacks and Hispanics more to buy a home after an investigation that began with the OCC years earlier.

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iehi-feed-65428 Mon, 13 Jul 2020 23:27:10 GMT Manhattan Apartment Rents Slide After Exodus Empties Buildings http://implode-explode.com/viewnews/2020-07-10_ManhattanApartmentRentsSlideAfterExodusEmptiesBuildings.html The borough's apartment-vacancy rate in June rose to the highest on record [the vacancy rate climbed to 3.67%, a record in data going back to August 2006. The rate had never before topped 3%, according to Miller.]. Available listings surged 85% from a year earlier to 10,789 -- an all-time high for a single month, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a report Thursday.

All that inventory put a dent in pricing. The median rent slid 6.6% to $3,242, the first decline in 18 months and the biggest in data going back to October 2011, according to Jonathan Miller, president of Miller Samuel.

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iehi-feed-65425 Fri, 10 Jul 2020 14:07:38 GMT A Coffee Chain Reveals Flaws in the Fed's Plan to "Save" Main Street http://implode-explode.com/viewnews/2020-07-10_ACoffeeChainRevealsFlawsintheFedsPlantoSaveMainStreet.html ``La Colombe didn't think it qualified for the government's forgivable small-business loan program given its size and canned coffee manufacturing business. It is too small to have ready access to the debt markets big companies use to raise funds -- markets that are chugging along with the help of Federal Reserve backstops.

The company's leaders thought that another Fed program, one intended to help midsize businesses by providing loans, would be their best shot at getting help. But when the central bank announced the details in early April, it was clear that La Colombe would not qualify. The company has too much debt relative to earnings to meet the Fed's leverage restrictions.

"That just doesn't make sense for companies like La Colombe, because we're growing so quickly," said Aren Platt, who leads special projects for the company.

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First announced on March 23, the Main Street program finally allowed banks to register as lenders in mid-June -- but only about 450 of the nation's thousands of eligible banks have registered so far. Banks have reported that many clients are not interested in using the program, the Fed chair, Jerome H. Powell, acknowledged to concerned lawmakers during testimony in late June.

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Small-town bankers say some clients have gotten spooked by the substantial paperwork involved in using the program. Big companies often have more attractive options elsewhere in the market. Some, like La Colombe, have too much debt to apply. That problem is echoed across the comment letters by companies that were expanding their footprint pre-pandemic.

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The program fully opened on Monday, and Mr. Rosengren said banks had already offered loans for companies that had been hard-hit, like movie theaters. He declined to say how many, and said he expected demand to ramp up over time. The Boston Fed disclosures show that hardly any of the biggest banks, other than Bank of America, are willing to publicly say that they will make loans to new customers through the program.

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Lawmakers have repeatedly pushed policymakers to make the program more inclusive and widely available. But Mr. Mnuchin has been relatively cautious about taking on credit risk, occasionally describing the Main Street program as a backup option that could be successful without ever being used by providing certainty to the market that credit would remain available.

Compare this with the Fed's pandemic support of the stock market and corporate debt -- it just goes in and buys without the companies having to do anything, or give up any rights...

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iehi-feed-65424 Fri, 10 Jul 2020 14:02:31 GMT What It's Like to Enter the Work Force From Your Childhood Bedroom Over Zoom http://implode-explode.com/viewnews/2020-07-10_WhatItsLiketoEntertheWorkForceFromYourChildhoodBedroomOverZoom.html Matthew Feldman, who graduated from Syracuse University in December before interning at Edelman, the public relations firm, in the spring, started his full-time communications job with the defense contractor Raytheon in June from the basement of his family's home in Bellefonte, Pa. -- the house where the family has lived since Mr. Feldman, 23, was in kindergarten.

He logs on to work from a couch or a bar top. The weak signal from the basement, strained by an entire household working remotely, made Mr. Feldman fearful that his orientation calls during his first week would drop.

"We had four people doing different jobs all working on the same internet connection," he said. "It was really a nightmare."

Mr. Feldman's father, an elementary school principal, and his mother, an elementary school teacher, had claimed the main floor of the home, where for the past few months his mother taught classes on Zoom. His younger brother, a rising junior at Georgia Tech, was also taking classes remotely.

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Relationships are the key to success, Mr. Hellmann said, adding that people who build connections with their teams and with colleagues in other departments are better positioned for promotions -- something Ms. Delgado said she was worried about falling behind on.

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"You're with people that love you, and a community you're super familiar with," he said of being at home. But after attending college out of state, studying abroad in Spain and living in various cities around the country for internships, Mr. Feldman said, he longs for the personal growth that comes from living in an unfamiliar place. He has considered working remotely from Brooklyn for a few months.

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iehi-feed-65423 Thu, 09 Jul 2020 22:18:08 GMT Soaring demand for federal jobless benefits points to fresh fissures in the U.S. economy http://implode-explode.com/viewnews/2020-07-09_Soaringdemandforfederaljoblessbenefitspointstofreshfissuresinthe.html The number of unemployed people collecting jobless benefits through a temporary federal-relief program has exploded in the past month to more than 14 million, suggesting the U.S. labor market is facing a fresh set of problems.

After a small decline in mid-May, applications for benefits filed through the federal Pandemic Unemployment Assistance program have soared 53% to 14.4 million as of June 20 from 9.37 million a month earlier. Federal continuing claims are reported with a two-week lag.

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The portrait of the coronavirus-infected labor market looks worse if all continuing jobless claims are combined. Almost 33 million people were receiving benefits as of June 20, up from 31.5 million in the preceding week, according to Labor Department data.

By contrast, the Bureau of Labor Statistics' normally more reliable monthly employment report indicated 17.8 million people were unemployed in June.

The gap between weekly continuing jobless claims and the monthly unemployment numbers has left a big -- and inexplicable puzzle -- for economists. Why aren't all these people telling the Labor Department they are unemployed?

The BLS has already said that people aren't answering the survey correctly (really, it lacks the appropriate categories to handle the current situation). A lot of people are functionally unemployed but hopeful of being rehired -- it's hard to infer from this that they are "employed", though we hope their employers' businesses do survive, and rehire them.

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iehi-feed-65418 Wed, 08 Jul 2020 21:55:29 GMT Never Before Have I Seen So Much Fake Unemployment & Jobs Data by the Bureau of Labor Statistics | Wolf Street http://implode-explode.com/viewnews/2020-07-08_NeverBeforeHaveISeenSoMuchFakeUnemploymentJobsDatabytheBureauofL.html The difference between those actually receiving unemployment insurance (31.5 million people) and those that the BLS claims are unemployed has today exploded to 13.7 million. In other words, the BLS has under-reported the number of unemployed by at least 13.7 million people.

No one knows how many jobs were created on net, but it wasn't 4.8 million as the BLS tried to make us believe, or even a smaller positive number, but a negative number, with more jobs being shed on net, because the number of people still receiving unemployment insurance since the end of May has surged by 1.3 million people, according to the Labor Department.

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Of course, the dire unemployment data released today by the Department of Labor got practically no air time. And the BLS's fake BS trumped, so to speak, all news coverage.

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