Publisher's Memo
Two Pandemics: Too Many Similarities
Can this be America? Is this reality? In our collective experience of anger and outrage, does watching or listening to the news cause more anxiety and fear? How do we feel after watching horrific cruelty and dehumanizing behavior acted out with the most insidious indifference to human life?
We are going through two pandemics at the same time—two public health crises that will not go away easily.
Racism is as much a pandemic as coronavirus. Both are infectious agents and share characteristics of spreading quickly and being contagious. Both cause illness and death. Both are cunning as their symptoms lie dormant for a while and then suddenly appear. Total immunity requires extensive work. Everyone searches feverishly for “person zero.” Let’s blame others… although as Gandhi says, “we should be the change we wish to see” because change starts with each one of us.
Some viruses stay in us and cause sores again and again…with repeat outbreaks of the same systemic toxin.
Viruses come and go and are marked by dates and time. Racism is always present but more visible when outbreaks occur. And yet, we think we can politicize this toxic warfare that has existed for at least four hundred years—on our soil.
I grew up in a diverse town. Maybe some of you did too. If the topic of racism came up years ago, I felt that it was not my place to say anything because it was not “my fight” to fight and therefore, I should stay out of it.
But it is different this time around. Finally, we realize that not saying anything is the same thing as supporting racism. It is time for all of us to speak up and to speak out against this systemic poison.
As a father, I cannot imagine what it would be like to worry that someone would hurt my children because of their skin color. It is unfathomable that millions of people live with that fear every single day.
Shifting gears to business…
There are projections that things will pick up in July and get back to normal. We might expect a spike in volume…how much depends on the industry segment…but collectability might be down. Commercial collectors will almost certainly find that many debtors will not have money to pay their debts and some will file bankruptcy. Who knows how many will go out of business?
On the consumer side, the unemployment rate might have a direct impact on liquidity and consumer portfolios. Certainly, some industries face a difficult uphill climb to keep their doors open and pay all their employees. Let’s hope the economy rebounds well!
There are other unknowns. What will happen with the commercial real estate market as business owners realize that their employees can work from home and they can save money by not having to pay rent? What are the ripple effects of a significant negative downturn in that market? Will companies reinvest that savings back into the economy such that it becomes “a wash” and the net effect isn’t all that bad? What about the actual spaces that will be empty? What will we do with them?
We hope that all of you are doing well as we navigate these unprecedented times. We will continue to work hard and help our clients and partners manage whatever the “new normal” will be as everything opens. If there is anything that we can do for you, please let us know.
-Gary
