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Plans for California economy to slowly, gradually revive over the next year or more.

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It will be months before you can visit one of these places in California. Image courtesy of Adobe Stock.

The California governor has laid out some general plans on how the state eventually will be taken off lockdown. There are four overall phases stretched over the next year or more. Highlights include:

  • Curb side pickup from retail stores will be allowed perhaps in weeks.
  • In-person worship services and getting a haircut will be allowed months from now.
  • Stay-at-home orders will not be lifted for a year or more.

Schools may start early, perhaps even in July. That will be conditioned upon schools having the ability to maintain safe distances between students.

This discussion will be posted on several of my blogs.

The graphic provided by the state describes the four stages:

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Written by Jim Ulvog

April 29, 2020, 9:20 am at 9:20 am

Posted in Economics, Other stuff

Damage from the shutdown is growing day by day.

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Image courtesy of Adobe Stock.

Damage from the shutdown is getting more visible; it is growing, spreading every day.

Hospitals and surgeons have been devastated by stopping what is considered ‘non-essential’ care. Many hospitals may go under. Going under is what farmers are starting to do with their crops. After a panic like we are in, who has liability if anyone gets sick and thinks they caught the bug in a store, restaurant, or business?

Devastation in health care industry

4/23/20 – The Federalist – Instead Of “Flattening The Curve,” We Flattened Hospitals, Doctors, And The US Health Care System – Outside of New York city, hospitals have not been overwhelmed. That means it is time to open up the medical system to allow “non-essential” services.

Example cited include Florida which was projected to have 465,000 hospitalized patients by April 24 only having 2,000 on April 22.

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Written by Jim Ulvog

April 27, 2020, 6:35 am at 6:35 am

Posted in Economics, Other stuff

It is time to end the physical, emotional, and financial destruction caused by the lockdown.

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With the ongoing shutdown we are getting way out there onto dangerously thin ice. Image courtesy of Adobe Stock.

We are past the point where the damage caused by the lockdown is greater than the damage caused by the coronavirus.  The damage could start compounding.  Here are just a few of the recent articles making this point:

4/22/20 – The Hill – The data is in – stop the panic and end the total isolation – A medical doctor says it is time for our leaders to examine the evidence instead of hypothetical guesses and then carefully let the country start operating again. He cites five factors ignored by people who want to keep the country in ongoing lockdown:

Fact 1: The overwhelming majority of people do not have any significant risk of dying from COVID-19.

Fact 2: Protecting older, at-risk people eliminates hospital overcrowding.

Fact 3: Vital population immunity is prevented by total isolation policies, prolonging the problem.

Fact 4: People are dying because other medical care is not getting done due to hypothetical projections.

Fact 5: We have a clearly defined population at risk who can be protected with targeted measures.

Keep in mind California will probably be on lockdown until August and Virginia may be locked down until a vaccine is in use.

Two severe medical problems are being caused by and will be prolonged by the severe lockdown.

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Written by Jim Ulvog

April 26, 2020, 16:38 pm at 4:38 pm

Posted in Economics, Other stuff

Good news in some states for people who like to pay their rent and put food on the table. Bad news for California and Virginia.

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A deep freezer, used for keeping large volumes of meat and vegetables frozen. That’s where the economies of California and Virginia are going to be stored for a long time. Image (but not commentary) courtesy of Adobe Stock

Many states are starting to open up their economy.

Virginia may be closed down tight for up to 24 more months.

California may not open up until August.

August.

There will be incalculable medical, emotional, and financial damage in California and Virginia from the lockdown. More on that momentarily.

This discussion will be posted on several of my blogs.

Good news

On the bright side, getting most attention for opening are:

  • Texas
  • Georgia

Other states are thawing because they also don’t want to bankrupt everyone, destroy all the hospitals, further tear down overall health levels, and permanently cripple their economy. List includes:

  • Alaska
  • Colorado
  • Minnesota
  • Montana
  • Mississippi
  • Ohio
  • Oklahoma
  • Pennsylvania
  • South Carolina
  • Tennessee

And then there is Virginia and California.

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Written by Jim Ulvog

April 25, 2020, 15:05 pm at 3:05 pm

This shutdown is damaging our health, collapsing the economy, and shredding our freedoms. What will be the tally from ‘avoidable deaths?’

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Will the Grim Reaper get more business from the coronavirus or the shutdown?

Every additional day of the shutdown is causing horrible damage. Not only is the economy suffering with record high unemployment, soon-to-be record high bankruptcies and shuttered businesses, but also there is now and will continue to be a decline in overall health. We will see increased mortality from other causes because of the shutdown. The damage to our freedoms is widespread and immeasurable.

Point made by the author of the column linked below puts it this way:

This is not a trade-off between lives and the economy. It’s a trade-off between lives and lives.

In a series of articles over the last week I attempted, in my own feeble way, to describe the wide ranging damage we are watching grow every day.

The question our governors and mayors urgently need to consider is whether we have already passed the point at which there will be more damage (including deaths) from the shutdown than from the coronavirus.

This post will be published on several of my blogs.

Trading off lives for lives

4/17/20 – Colorado Politics – Opinion/It’s time to shift tack – and contain the virus while reopening Colorado’s economy – Author was sounding the alarm on a pending medical disaster well before others realized there was a problem. That danger is now past.

He draws the analogy to a hurricane expected to make landfall at category 5 but deteriorated to a bad thunderstorm the morning it landed. In that analogy the cat 5 which was expected to land on the entire country only hit New York, New Orleans, and Detroit.

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Written by Jim Ulvog

April 24, 2020, 10:13 am at 10:13 am

Posted in Other stuff

The horrid news just keeps on rolling.

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Image courtesy of Adobe Stock.

The news feels like we are moving ever deeper into an over-the-top dystopian novel. Unfortunately this isn’t fiction.

Another 4 million unemployment claims last week and ongoing attacks on the First Amendment.

About the only job specialty in the country today with bright growth prospects in the near term is trial attorney.

(This post will cross-published on several of my blogs.)

New unemployment claims

4/23/20 – Department of Labor – Unemployment insurance weekly claims – an additional 4,427,000 people filed their initial claim for unemployment in the week ending April 18. Here is another article in case link is dynamic.

This is on top of the four previous weeks of horrible levels of new claims.

Here is a summary of the unreal news. Recap shows number of new claims for unemployment for the last five weeks with a subtotal. The number of people who were unemployed in March is then listed with my estimate of the total unemployment now.

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Written by Jim Ulvog

April 23, 2020, 7:25 am at 7:25 am

Posted in Other stuff

More entries on the list of economic sectors devastated by the shutdown.

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Image courtesy of Adobe Stock.

Hat tip to Behind the Black for the legwork identifying additional sectors of the economy that are collapsing. Large segments of the economy I haven’t mentioned before:

  • Home sales
  • Housing construction
  • Apartment rentals
  • Clothing production
  • Flower trade

Damage to these sectors won’t immediately heal the moment state governors decide they will allow the economy to come back to life out of its induced coma.

Home sales

4/21/20 – Fox Business – US home sales plunge 8.5% in March, and it may grow worse – Sales of existing homes dropped 8.5% in March. Article use the word “cratered.”

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Written by Jim Ulvog

April 22, 2020, 6:10 am at 6:10 am

Posted in Economics, Other stuff

More sectors of the economy being destroyed by shutdown of the economy.

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Imagine all that frantic hustle and bustle of Denver airport back in 2018 dropping by 95%. Photo by James Ulvog.

I can barely type fast enough to keep up with the adverse impact on the economy or freedom. Can barely keep up with the news about entire sectors of the economy collapsing. Most recent sectors I’ve learned about:  airlines and the entire health care system. Since drafting this post last evening, learned about the destruction in the clean energy industry and saw some stats on the devastation in the restaurant sector.

This post will be printed on several of my blogs.

Airlines

4/20/20 – NewsMax – Big 3 US Airlines May Cut More Than 100,000 Jobs by Fall – At the moment passenger loads are frightening – article says domestic flights are averaging 10 passengers and international flights are averaging 24 people plus crew.

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Written by Jim Ulvog

April 21, 2020, 19:37 pm at 7:37 pm

Posted in Other stuff

A reminder of previous government pronouncements before they are pushed down the memory hole.

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Image courtesy of Adobe Stock.

We can now see an extensive effort to re-write the story of the shutdown of the economy. Before that is accomplished it is necessary to put a number of factors on the table so they don’t disappear down George Orwell’s 1984 memory hole.

4/13/20 – American Institute for Economic Research – Liberation From Lockdown Now – Article discusses recent explanations and how we got to this point.

We need to remember this uncomfortable information before it is removed from the discussion.

I shall quote one paragraph from the article to keep the information alive before it is erased from the record. The early advice from the experts was:

“For a family sitting around the dinner table tonight,” said Dr. Nancy Messionnier, a spokesperson for the CDC on January 17; “this is not something that they generally need to worry about.”

Let’s not forget the next sentence:

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Written by Jim Ulvog

April 21, 2020, 6:35 am at 6:35 am

Posted in Other stuff

Some states start to open up at the same time California may be locked up for months.

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image courtesy of Adobe Stock.

Some states are already loosening some of the shutdown restrictions.

The ‘indicators’ announced by California, Oregon, and Washington indicate it may be months before any parts of the economy are allowed to revive.

Washington state and Texas show the stark contrast in approached.

(This discussion will be posted at several of my blogs.)

4/19/20 – USA Today – US reopening: What states are relaxing social distancing restrictions and moving away from lockdowns? – Several states have already dialed back parts of the lockdown. Others have announced dates to do so. A summary of the small steps:

  • Now – Florida, Minnesota, Vermont
  • April 24 – Texas Montana
  • May 1 – Ohio, Idaho, North Dakota

Californians will stay in lockdown for a very long time

4/14/20 – Office of the governor – Governor Newsom Outlines Six Critical Indicators the State will Consider Before Modifying the Stay-at-Home Order and Other COVID-19 Interventions

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Written by Jim Ulvog

April 20, 2020, 13:35 pm at 1:35 pm

Posted in Other stuff

Additional indications of economic destruction from the shutdown.

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Image courtesy of Adobe Stock.

Here are a few articles in the last few days describing the economic catastrophe that is expanding daily as we watch. Estimate is out that one out of four employees in Los Angeles are out of work. Higher education as an industry is in danger.

4/14/20 – American Enterprise Institute – The International Monetary Fund’s coronavirus reality check – The IMF expects a worse downturn than the ‘08/’09 Great Recession.  Global output is expected to have a US$9 trillion loss in output from what would have been expected.

For the US and Europe the loss will be equal to two years worth of economic growth.

4/17/20 – LAist – LA’s Latest Unemployment Numbers Are Staggering. An Estimated 1.3M Jobs Have Already Been Lost – Percent of LA county residents who are employed is estimated at 45%. That is down from 61% in March. The difference is 16%. Divide that by the 61% employed prior month indicates 26% of the people working a month ago are now unemployed. Data is from researchers at USC.

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Written by Jim Ulvog

April 20, 2020, 8:15 am at 8:15 am

Posted in Other stuff

Another drastic rise in new unemployment claims.

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Another round of horrible news on the jobs front today. Again a big rise in the ranks of the unemployed.

4/16/20 – Wall Street Journal – U.S. Jobless Claims Top 20 Million Since Start of Shutdowns – initial claims for unemployment benefits tallied 5.2 million last week. Here is the grim recap of the last four weeks:

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Written by Jim Ulvog

April 16, 2020, 11:58 am at 11:58 am

Posted in Other stuff

Economic damage from shutdown – 4/15.

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Image courtesy of Adobe Stock.

A few more articles on damage we are seeing from the economic shutdown.

Guess on California unemployment rate

April 2020 – Eberhardt School of Business, University of Pacific – Initial Estimates of Employment Impacts of Covid-19 Pandemic – The school of business estimates an unemployment rate of 18.8% in California for the month of May 2020.

This is in contrast to 2010 rate of 12.2% and 2019 rate of 4.0%.

Likely increase in bankruptcies

4/13/20 – Washington Examiner – Pandemic likely to exceed Great Recession in number of bankruptcies – Economists from a leftist think tank and a conservative think tank both guess that the  number of bankruptcies from the current shutdown of the economy will exceed the number from the Great Recession.

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Written by Jim Ulvog

April 15, 2020, 9:53 am at 9:53 am

News For CPAs During The Pandemic: FASB guidance on leases – 4/14.

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Image courtesy of Adobe Stock.

More info for CPAs. FASB releases a Q&Q for lease issues.  Another round of layoffs seems to be appearing.

4/10/20 – FASB published the following Staff Q&A – Topic 842 and topic 840: Accounting for lease concessions related to the effects of the COVID-19 pandemic – If this issue affects your clients, you need to read the guidance.

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Written by Jim Ulvog

April 14, 2020, 13:41 pm at 1:41 pm

Posted in Accounting, Other stuff

Collateral damage from shutdown.

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Image courtesy of Adobe Stock.

The damage from the shutdown of the U.S. economy will be severe. Having ‘flattened the curve’, rapidly expanded hospital capacity, and kicked critical production lines into high gear, it is time open up the economy before the second order impacts cause more health damage and death from the shutdown than from the coronavirus.

(Cross-post from my other blog, Nonprofit Update.)

4/10/20 – originally posted on Medium but was pulled; do a bit of reading and then make your own assessment why the site didn’t want the article to remain visible to the public – Eight Reasons to End the Lockdowns Now – article was written by five medical doctors and one Doctor of Nursing Practice.

The eight reasons:

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Written by Jim Ulvog

April 14, 2020, 7:55 am at 7:55 am