Name: The economy continues to take a hit amidst the coronavirus outbreak
Uploaded: 2020-03-23T04:12:03.000Z
Duration: 3 min 57 s
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The superlative

brutal day on Wall Street, the Dow sank nearly 3000 points, its worst day since 1987 and its second biggest single day percentage loss in history.

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This, of course, comes amid growing fears of a Corona virus outbreak.

To-infinitive

Even the president, who has been reluctant to recognize the economic impact of Corona virus, said this afternoon, the economy quote may be heading into recession.

So to help us make sense of all this, let's bring in Rebecca Jarvis, who's down on Wall Street.

We keep seeing these huge drops in the market, what people need to know about what happened today.

Well, I think what people should know is that this is all part of our new reality.

And just as Americans are watching this reality thinking, what does it all mean?

So is Wall Street, and they're coming to terms with the fact that there's a lot of math here.

And as they start to actually take into account how dramatic the impact, even if it's a near term impact, will be on cos that's what's driving this volatility, Lindsey.

Now let's move past the numbers for a moment and focus on the real world impact that this is gonna hit businesses, especially small businesses, really hard and could lead to a lot of layoffs well.

And that's the concern here, and in particular, those small businesses.

There were 30 million small businesses in America, and a lot of them are the restaurants, cafes, the bars, which are being closed right now, put in tow, locked down for the foreseeable future.

Those are the places that are going to need access to money in the near term so that they can keep those employees on.

And if those employees are out because of the fact that their companies air shut down for the time being, they're the ones who are going to need that fiscal stimulus.

The paid sick leave Maur, then almost anyone else in America in particular, the people who work for companies that have told them to stay home and not to come in if they're sick.

A lot of those companies, the tech companies, for example, have those benefits already in the system.

But for people who work for small businesses, in many cases that's not true.

And let's talk about the airlines for a moment because they in particular seem to be in trouble.

A trade group for the industry called for a $50 billion bailout, But but you've done some reporting that shows that they weren't really prepared for any disaster, let alone one this big well, what they had been doing with their money prior Thio.

And frankly, it's something that most of corporate America has been doing for most of last year, and even in the years before then, when corporate America saw that interest rates were low, they took advantage of that.

They actually borrowed money, took on new debt in order to buy back their stock.

And what that meant when we watch the stock market grow and climb was that we saw the stock market continuing to grow.

But these companies, and many of them are in the airline industry and other industries took on all of this debt.

Now I will say there were 750,000 Americans that currently work for airline companies, So even though you have this financial aspect on one side, you have the very riel near term immediate needs of those individuals.

And so this warning today, Lindsay from the airline industry, suggesting that it was a likely scenario that they would be out of money by the end of this year without a $50 billion bailout.

That is something that we also have to take seriously in spite of the fact that they weren't prepared for this, just like a lot of companies and industries were not prepared for this at all and spent their money on buying back their stock, right?

Just hard to believe, though, that the airline industry could be out of money by the end of the year.

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