19 October 2020

1) Another consequence of the pandemic is an estimated 8 million people have been forced into poverty. The federal Cares Act gave Americans a $1,200 stimulus check per person, plus an extra $600 in unemployment per week, which kept many people above the poverty level. But with the expiration of the act, people quickly went below that income level for poverty. The Cares Act kept an estimated 18 million people out of poverty. The poverty income level is considered a family of four earning $26,200 a year, with the total number of people in poverty are 55 million.
2) There are indications that the U.S. Convid-19 is on the increase again making for a third peak. The number of cases are climbing throughout the Midwest, Mountain West, Northeast, South and West. The first peak was on the 10th of April, the second on 19 July and now a third peak is on the increase as winter approaches, the traditional season for the flu. Increases are also evident in Europe and Britain. Presently, 38 states are experiencing increases in the number of cases with hospitalizations trending upward in 39 states, and 13 states increasing in the number of Covid-19 deaths.
3) The U.S. deficit has soared to $3.1 trillion dollars for the 2020 fiscal year, a direct result of the spending to counter the effects of the coronavirus crisis. This is the largest annual deficit in U.S. history, measured as a share of the deficit-to-GDP, with a ratio of 16%, the highest level since the last year of World War II (1945). Huge increases in federal spending coupled with decreased revenues for the last six months have resulted in the unprecedented deficits. The Federal government spent $6.5 trillion dollars in 2020 (fiscal year) compared to $4.5 trillion in 2019. Revenues for 2020 was about $3.4 trillion, which was modestly lower than 2019. The economy is already in difficulty, as winter approaches, with much of the recovery now behind us, the growth is leveling off, and hence the recovery is also leveling off.
4) Stock market closings for – 16 OCT 20:
Dow 28,606.31 up 112.11
Nasdaq 11,671.56 down 42.32
S&P 500 3,483.81 up 0.47
10 Year Yield: up at 0.74%
Oil: down at $40.78

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