Reading List for August 7-9

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Aug 07, 2020
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Personal Finance, Economics, Investing, Paying for College, Financial Scams

Personal Finance

  • This one got some press: The Cincinnati Bengals reports that top draft pick, Joe Burrow, plans to live off of his endorsement income (not too shabby), and bank (invest?) his $23.9 million signing bonus as well as his $36.2 million four-year contract. (BengalsWire)
  • But for 59% of young Americans, Millennials and Gen Z, the pandemic has totally derailed their financial lives. (USA Today

 

Economics in the times of Covid 

  • The July unemployment rate dropped to 10.2%, as almost 1.8 million non-farm jobs were added (back). This is much lower than the June rebound, and overall unemployment still sits at a higher level than the peak for the Great Recession. (Yahoo Finance) (CNN)
  • The gains, however, have not been felt equally across all demographic sectors. (NYT)
  • On Thursday, the weekly data on new unemployment claims came out: almost 1.2 million new claims were filed. (CNN)
  • For the first time since 2014, consumer debt dropped in the second quarter of 2020. The largest decline was in credit card debt. (Yahoo Finance)
  • The Federal Reserve regional banks and Board of Governors are assessing the impact of COVID-19 on low- to moderate-income communities. Here is the June Survey. Federal Reserve System

 

Pandemic winners and losers

  • The country’s oldest retailer, Lord & Taylor added to growing list of retailers Retail Dive filing for bankruptcy this year. (Yahoo Finance)
  • Restaurants across the country are not likely to make it through the pandemic, as PPP funds are now gone, and take-out/outdoor or limited indoor dining is not bringing in enough revenue to cover costs. (AP NEWS)
  • In New York City, 2800 small businesses have already closed permanently, and it is expected that roughly one-third of its 240,000 small businesses will follow suit, with a permanent loss of jobs. (NYT)
  • Uber is an interesting example of where the side business is pushing the main business aside in terms of revenue generation. Second quarter revenue was down 29% from 2019, but Uber Eats revenues doubled. (CNBC)
  • We listed Kodak as a pandemic winner last year, but the SEC is taking a closer look at the timing of the deal announcement and several stock transactions. (WSJ)

 

Paying for College

  • A provision in the CARES act may mean that full-time college students may be eligible for unemployment insurance to cover missed summer, part-time and work-study income. If you know someone who may be in this situation, share this CNBC article ASAP!
  • Nonprofit UASpire issued a report entitled “Beyond the College Bill.” The NYT summarized the findings, which focus on the indirect costs of college.
  • According to a national survey this spring by the Social Policy Institute at Washington University in St. Louis, low-income households are falling further behind in their student loan payments than wealthier families during the Covid crisis. (Brookings)

 

Investing

  • How to go public without going public? Lordstown Motor Company is merging with a “blank check company.” It has also been referred to as a “reverse merger.” (CNN)

 

Financial Pitfalls

  • The Washington Post’s Michelle Singletary warns of the latest pyramid schemes taking advantage of pandemic weary, vulnerable people using a culturally acceptable premise: the Sou-sou or blessing loom.

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an M.B.A. in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducting student workshops, and developing finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.