Irvine, CA
|

Hours: Mon-Fri 8am – 5pm PST

  • Why Our Loans?
  • Loans
    • Personal
    • Mortgage
    • Business
    • Student
  • About
    • About Us
    • Rates, Terms, & Licenses
    • Terms of Use
    • Privacy Policy
  • Contact
  • FAQs
  • Blog
(888) 574-6753

Recovering Financially in 2021

Posted on Friday, October 30th, 2020

COVID-19 has had an unrivaled effect on the economy of the world and the United States of America. While many countries are trying to reopen the businesses that drive their financing, nobody is out of the woods yet. And yet, we try to predict what the economy will do next year because it affects what we can plan for this year.

According to Forbes, economists and other financial experts like to use letter shapes to describe how our economy responds to any recovery. Such measures usually track the GDP (Gross Domestic Product), which represents the total monetary value of goods and services produced within the US.

To imagine the letter shape, assume a constantly rising line on a graph with a piece taken out of the middle. The letter drawn under that line joining the separate forms describes the state of the recovery.

What does a V Shape mean?

The economy quickly drops until it hits the lowest point of the V and then rebounds quickly. This scenario represents the most optimistic outlook because it assumes the crisis does not permanently damage the economy.

How wicked is the U Form?

The economy is damaged over a long period before it reaches the bottom of the U, where it may remain for a time. It then slowly rises as the damage passes.

What does the W do for us?

Also known as a double-dip, the W shape shows a quick drop followed by a hopeful rise from the bottom. However, before the economy can fully recover, it drops again before rising to full recovery. This shape assumes just two dips and two rises when, in fact, multiple Ws may succeed each other before the final climb.

What’s a Swoosh?

If you look at the Nike Swoosh logo, you’ll notice a steep drop, a sudden rise, and then a gradual return to economic recovery, which takes longer than the actual time to the bottom. Some analysts see this type of recovery happening if the labor market does not return to pre-crisis levels as quickly as it collapsed.

What about the L?

This most pessimistic of the shapes show a drop that hits bottom but never recovers to the pre-crisis economy. Instead, the economy stagnates, and unemployment persists, which is displayed by the bottom part of the L.

How will the Economy Recover in 2021?

One of the issues hindering accurate predictions of 2021 is that we have never quite faced a situation like this since we started formalizing recovery shapes. The course of this pandemic has been unpredictable, with countries seemingly succeeding in controlling the spread of COVID-19, only to see a resurgence when such controls are relaxed.

Nevertheless, experts like Beacon Economics see the US achieving a strong recovery at the end of 2020, leading to a full recovery in 2021, which is the U shape. According to 600 CEOs surveyed by the think tank Conference Board, economic recovery will most likely follow the U shape. Both of these forecasts contrast with the prediction by the US Congressional Budget Office that sees a full recovery only after a decade.

Previous Post
5 ways you can support your favorite businesses during the pandemic
Next Post
Debt Consolidation

Recent Posts

  • Homes in California, Georgia, and Texas Tuesday, December 8th, 2020
  • Homes In Indiana, Louisiana, Oklahoma, and New Mexico Tuesday, December 8th, 2020
  • Why Our Loans Tuesday, December 8th, 2020
  • Debt Consolidation Tuesday, December 8th, 2020
  • Recovering Financially in 2021 Friday, October 30th, 2020

Categories

  • Business (5)
  • Covid-19 (5)
  • Credit (16)
  • Finances (33)
  • Mortgage (6)
  • Student (1)

© 2023 Simple Path Financial, LLC. All Rights Reserved.

  • Rates, Terms, & Licenses
  • Terms of Use
  • CCPA Service Provider Addendum
  • Privacy Policy
  • Do Not Sell Request
  • CCPA Consumer Access/Deletion Request
  • CCPA Privacy Policy Notice

Licensing

Licenses
CFFL #60DBO-65920

Contact

(888) 574-6753

Social

Stay up to date by following us on Social Media

Facebook
LinkedIn

*This offer is for a business, mortgage, student, or unsecured personal loan referred or offered by Simple Path Financial, LLC®. All business, mortgage, and student loan requests submitted through Simple Path Financial, LLC® are funded by a third party.

SIMPLE PATH FINANCIAL LLC® is a lender and also provides loan referral services. Loans are not available in all states. In Alabama, Arizona, California, Florida, Idaho, Iowa, Louisiana, Maryland, Michigan, Missouri, Montana, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas and Wisconsin personal loans are provided by Simple Path Financial LLC, a licensed lender. In Alaska, Arkansas, Kentucky, Massachusetts, Nebraska, New York and North Carolina personal loans are issued by Simple Path Financial LLC, compliant with state permitted usury laws.  In the states of Indiana, South Dakota, and Washington D.C. your personal loan will be fulfilled via our preferred network of third-party lenders. Your loan agreement will clearly identify the lender. For detailed information concerning SIMPLE PATH FINANCIAL LLC.’s licensing information please visit www.simplepathfinancial.com/rates-terms-and-licenses.

Simple Path Financial, LLC® has no control over participating third-party lender credit worthiness eligibility criteria. APR/Interest rates will vary depending on individual lender terms. Generally, all individuals applying for credit must be a U.S. citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number/FEIN are required. All loan applications are subject to credit review and approval.

You authorize us to make inquiries and obtain and confirm information about you as we deem appropriate for the purpose of evaluating your eligibility for this extension of credit, including obtaining credit reports, verifying your income, and contacting your employer. You also authorize us to provide identification information about you, and our credit experience information with you to others in accordance with applicable law. Duplicate offers received as a result of multiple mailing to the same person are void, as are multiple acceptances of the same offer. This offer is subject to the expiration date listed on your offer letter.

*Annual Percentage Rate. Not all borrowers will qualify for the same rate when a rate is listed “as low as”. Qualifying for rates listed “as low as” are based on the borrower’s credit worthiness, which includes factors such as debt ratio and credit history. Interest rates will vary and are based on lender terms. Ranges from 7.99%-36%. All loans may be subject to origination fees ranging from 1% – 5%, of the loan amount, if permitted under applicable state law. For detailed information concerning Simple Path Financial, LLC.’s licensing information please visit www.simplepathfinancial.com/rates-terms-and-licenses.

We will never discriminate on the basis of race, color, religion, sex, marital status, national origin or ancestry.

NMLS #1570007

*Para ver informacion importante sobre terminos y condiciones en Español, por favor presione aqui.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT