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!
• 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.

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