Increasing risk of a double dip recession Q1/Q2 2021.
Fiscal inaction from a deeply divided congress magnifies the economic consequences (slowdown) from Covid scaling back economic activity , particularly in the industries currently in severe recession But also as revenue shortfalls begin to lead to their own dominos .
The next few quarters , the economic pain has a couple paths to climb the socioeconomic ladder And gain market share In the middle class and upper middle class as job losses should regain steam this winter w Covid rises and provide cover for cost cutting measures in middle management and people furloughed as a less enticing view of the recovery comes into focus as well as dealing with revenue shortfalls ..especially in major cities where large local and state aid via stimulus was counted on.
Bank losses in the commercial real estate sector may weigh on and potentially generate “ issues” in Europe first .
Most see the economy growing nicely in second half of year but not recapturing pre pandemic levels for a while and the recovery to be sort of “K” shaped. Middle class potentially hollowed out a bit . We shall see, hopefully the virus abates faster.