We have all been experiencing, the last few weeks, the beginning of the Corona Virus crisis, which is first thing affecting our health, and the health of our loved ones.
However, the biggest damage in this situation shall be the economic damage.
And this is just the beginning.
The sad part of this situation, beyond its unexpected “black swan”, whose impact is expected to be unprecedented … it cached us off guard.
And what does it actually mean?
The health system in Israel, even before the Corona Virus crisis, was about to collapse. Who is unfamiliar with the unpleasant sights of the hospital corridors? In the US, things could be even worse, due to the fact thatin the US – if you don’t have private health insurance, you practically don’t exist.
After more than a decade of cash flows, both in Europe and the US and all over the world, accompanied by interest rate reductions to zero interest rates, and even negative in some parts of the world (mainly in Europe), and the stock prices on various exchanges, at record prices (as well as real prices) (Especially in the major cities of the world, as well as in Tel Aviv and other parts of Israel)… It can be safely said that, this crisis is catching us in a bad time. Very bad.
In fact, the Federal Reserve, and the central banks and the Bank of Israel, too, have lost their primary ammunition – and they have almost no option of lowering interest rates other than minor rates.
Moreover, it seems that due to the money flowing around the world, asset prices have reached “bubble prices”.
In this situation, the Corona Virus crisis caught us –totally unprepared.
Today, people feel fear, helplessness and most important – uncertainty. Uncertainty increases the feeling of fear and anxiety, which in themselves can cause a serious public health problem.
People are confused by the burden of instructions: allowed to leave the house… forbidden to leave… essential or not? And in general – where is the term “essential worker” defined? It is permissible to go to work… It is permissible to lay off or take out workers from the UAE – and more and more endless questions.
The authorities are also in complete chaos these days.
As of March 22, 2020, there are about 500,000 new unemployed that do not even know what their situation will be in a month or two. Will they have a job at all? And if their employer collapses, like many good ones expected to go bankrupt in the coming months – will the state have enough money to support them?
We said 500,000 new unemployed… but this is just the beginning… the first wave. We assume that, by the end of Passover, this situation shall continue… The next wave of unemployed / unpaid leave of absence will be even more significant.
And, in general, how can the economy function when all citizens are sitting at home? Whoever can actually thinkabout shopping in this situation, except for essential necessities such as: food and medicine?
In short, the world and Israel are in one of their most significant, if not the most significant, test period in the last 100 years.
Although this is not going to be a straightforward period in the coming months … We think that despite the difficulties, it is humanity’s finest time to cooperate, and find creative solutions to mitigate even the slightest harm to each and every one of us.
And if we only believe in ourselves, our relatives, our dear employees … we can overcome this crisis well, and perhaps even more intensified.
So whether you are the owner of a company, whether you have a small or large independent business, and you run into a problem with the tax authorities / the bank/ the local authority or any other matter… whether you are considering closing your business / dismissal off employees orunpaid leave of absence …. Whether you’re just in a dispute with your partner or justwishing to see if you can breach a contract due to this situation – we are here for you
We have at our disposal the hotline of our office. For any questions and / or phone assistance, call today, at any time (24/7):
Our office is prepared to provide you with the best legal service during this new situation of the Coronavirus.
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