Reopened States Cut Unemployment, Walmart In Worcester Shut Down, Fed Balance Sheet $6.66 Trillion
First, we begin with a Walmart in Worcester MA that has been shut down. They originally said they were going to be closed for 1 day for deep cleaning but 5 days later they have need reopened initially there we're only a few employees now 21% of their staff has fallen ill. Several states have begun to open and there is some bad news for a lot of employees especially if their job is operating at reduced hours and many officials have announced that unemployment benefits will be cut to employees who refuse to come back to work. Spending has been crushed and it probably will begin to translate to cuts in hours for many who still have a job. We covered what was happening at an Austin Texas mall that was operating far below capacity and the fact that many have begun to save their money, going back to work may put employees into a worse situation than sitting at home. To be honest, it all seems like a terrible waste of trillions in stimulus spending, And it wasn't free for many they would like to protect themselves but that is no longer an option. The Feds balance sheet has also climbed to $6.66 trillion dollars for the first time and the size of this round of QE is now at 38% of GDP during the great recession when they performed QE1, 2, and 3 the largest compared to GDP was 20%. Finally, California is warning they have gone from billions in budget surplus to $10's of billions in deficit. This is significant because California is the largest economy in the US and if it were its own country it would actually be the 5th largest economy in the world. The impact on the US economy from the largest cities in the country all going bankrupt in unison will be immense.