🐂 Disruptions

Markets

The Dow experienced a volatile day with fluctuations in both directions. It initially saw an upward climb, but then swiftly reversed course as surging oil prices and rising treasury yields prompted investors to reconsider the attractiveness of stocks as a destination for their funds. After hours, Peloton made significant gains in response to the announcement of a partnership with Lululemon, where it will supply digital fitness content to the yoga pants retailer.

How Much Savings Do Americans Have Left, Anyway?

It's widely acknowledged that U.S. households saw a significant increase in savings when the pandemic hit. This was due to a combination of government stimulus checks and reduced opportunities for spending. However, with the cessation of government assistance, the reopening of the economy, and the onset of inflation, these savings have gradually eroded.

The crucial question now is how much of this accumulated cash remains, if any. This is important for two main reasons. First, if Americans still have money in reserve, it could potentially boost consumer spending in the coming months. Second, and perhaps even more crucial, any remaining savings could act as a financial cushion for individuals during challenging times. This could result in a less severe recession if one were to occur and decrease the likelihood of such an economic downturn happening in the first place.

Government

What to expect if the government shuts dow

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There is still a possibility of a last-minute agreement, but unless Republican House Speaker Kevin McCarthy can resolve his impasse with the right-wing faction of his party to pass a new spending bill, the federal government will need to cease operations by October 1.

Even if you don't work as a park ranger or rely on assistance programs like WIC (which has only a few days of contingency funds remaining), the government's decision to furlough workers and halt new funding distribution will have wide-reaching consequences that could affect you.

Here are some disruptions to anticipate if you fall into the following categories:

1. Traveler: TSA employees, considered essential workers, will continue security screenings, and air traffic controllers will remain on duty. However, hiring and training activities would be put on hold, potentially impeding the travel industry's recovery from the pandemic. Additionally, national parks might remain open but without accessible facilities like bathrooms.

2. Investor: If you had plans for a significant IPO next week, you might have to delay them. While the stock market itself wouldn't close, a government shutdown could reduce SEC Chair Gary Gensler's department staff by approximately 7%, which might lead to delays for companies not yet in the process of going public.

3. Government contractor: Federal employees usually receive back pay once the government reopens, but many federal contractors, facing estimated losses of $1.9 billion per day during a shutdown, may not recover their losses. Larger corporations like Elon Musk's SpaceX and pharmaceutical giants like Pfizer may recover more quickly.

On a somewhat positive note, the IRS is expected to function normally thanks to increased funding from the Inflation Reduction Act, and the postal service will continue to deliver your bills.

In the bigger picture, experts caution that the longer a government shutdown lasts, the more extensive the economic losses become. The previous shutdown, lasting five weeks, resulted in a $3 billion loss to the US economy, according to the Congressional Budget Office.

Politics

GOP presidential hopefuls attack Biden, Trump, and each other

Republican presidential contenders faced off in their second debate last night, but the leading candidate, Donald Trump, chose to skip it for the second time. Instead, the former president delivered a speech at a Michigan auto parts plant. This absence left seven other candidates to engage in heated exchanges, interrupt each other, and not only criticize the current president but also take shots at Trump himself.

Issues such as the economy and immigration were hotly debated as these candidates aimed to distinguish themselves from the rest of the field. Florida Governor Ron DeSantis referred to Trump as "missing in action," while Chris Christie mocked him as "Donald Duck." Additionally, several candidates targeted Vivek Ramaswamy, who had gained popularity after the previous debate.

Cybersecurity

Help! Im stranded can you send me $10,000?

This infamous online scam, typically associated with defrauding seniors of their retirement funds, has surprisingly found more success among Gen Z individuals than baby boomers, as revealed by a recent Deloitte report.

In a survey encompassing over 2,000 Americans, Deloitte discovered that despite being the generation that grew up with the internet, Gen Z is...

• Three times more susceptible to falling for online scams compared to baby boomers (16% vs. 5%).

• Twice as likely to experience social media hacking compared to baby boomers (17% vs. 8%).

The underlying reason is rather straightforward: younger individuals spend a considerable amount of time engaging in online communication and shopping. This increased online presence provides more opportunities for them to become targets of dubious schemes, such as enticing promises of substantial cryptocurrency returns from suspicious Instagram accounts or deceptive e-commerce websites masquerading as legitimate sneaker retailers.

Even when attempting to live in the present moment, today's youth find it challenging to disconnect from the online world. Common Sense Media's research reveals that half of 11- to 17-year-olds in the U.S. receive anywhere from 237 to 5,000 cell phone notifications per day, with a vast majority being social media alerts.

Scam-related losses are on the rise: In the past year, online con artists managed to profit approximately $210 million from individuals under the age of 20. This figure marks a significant increase from the estimated $8.2 million in 2017, as reported by Social Catfish.

Toursim

Peep your fall foliage somewhere else

Sleepy Hollow Farm in Pomfret, Vermont, has experienced a significant surge in visitors lately, and it's anything but sleepy. This charming private residence has attracted an influx of leaf-peeping tourists and influencers, prompting the town, with its population of around 900, to take action.

What led to this situation? Residents have reported that in recent years, visitors on a quest for the perfect fall foliage photo have caused damage to roads, trampled gardens, and, in some instances, engaged in inappropriate behavior such as defecating on private property. In response to these issues, the local community has made the decision to restrict access to two roads, allowing only residents to use them until October 15 this year. The community has even set up a GoFundMe page to support these road closures, emphasizing that the Instagram-driven disruptions have reached a point where they are no longer sustainable, and the neighborhood's character has been significantly altered.

However, such situations aren't isolated to Pomfret. Venice, for instance, now has more tourist accommodations than residents on its main islands, raising concerns about the city's cultural and social fabric. Many historic and cultural sites across Europe, including the Acropolis in Athens and the Louvre in Paris, have had to impose daily visitor limits due to overcrowding. Pomfret is yet another destination grappling with the challenges posed by the influx of visitors seeking social media recognition.