Friday, October 30, 2020

Bankruptcy Wave Coming?

 ARD (public TV, Channel One) did a business report this morning....DIW expert economist....Marcel Fratzscher.  

He's fairly blunt....come the end of December, the wave ought to start up.

The thing missing from the interview?  The size of this wave.  Whether intentional or by accident....they didn't want to ask about the size of the bankruptcy wave approaching. 

There's no doubt that hotels and tourism business operations are seriously damaged by Covid-19.  This November shut-down?  It's not going to help in any way....with expectations of the public that travel for the next six months will not return to any normal rate.  

But bankruptcy problems will exist for even the smaller coffee shop or pub operations as well.  It wouldn't surprise me if a quarter of kinos/theater operations....end up by mid-2021 as closed permanently.  

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