Above the Fold

Another Ironic Side Effect of the Pandemic  

With tens of millions of people out of work or receiving less pay, it’s logical to think that personal bankruptcies should have jumped in 2020 — but it was the exact opposite. According to Epiq data, Chapter 7 (consumer) bankruptcy filings fell 22% in 2020 compared with 2019, while individual filings under Chapter 13 were down 46% in the same period. Federal stimulus and expanded unemployment benefits, along with suspension of evictions, foreclosures and certain loan obligations, all helped limit consumer net outflows. Greatly reduced spending on travel and leisure also played a role in keeping consumers’ savings in the bank. 

Some experts worry, however, that America could see a sharp rebound once these extraordinary measures expire, especially since the cost of goods and living have been sharply rising over the last couple years. Experts note that bankruptcies typically lag financial hardships such as job loss, divorce or medical emergencies by 12 to 18 months. More immediate filings tend to occur when consumers are faced with the imminent risk of losing a home or residence. 

Three Things 

1. Fully Floated Freedom for Ever Given – After running aground a week ago, the 1,300-foot ship operated by Taiwan-based Evergreen Group was freed from its sandy grip yesterday. The vessel had choked access to the 120-mile-long Suez canal that carries roughly 13% of global trade. The blockage is estimated to have cost up to $10 billion per day and is likely to trigger even more supply shortages over the coming weeks. 
2. EV Chargers Go Off the Beaten Path – In a partnership with Electrify America, automaker Jeep will install off-road EV (electric vehicle) charging stations at trailheads across the nation. The first units will be placed at Moab, Utah, along with the Rubicon Trail and Big Bear Park in California. Jeep is releasing an all-electric version of the Wrangler called the Magneto. Amazon-backed Rivian also announced plans to install 10,000 fast EV chargers across North America by 2023. 
3. Microsoft, Facebook, Uber and Others Start Filling Offices – Albeit slowly, some big tech firms will begin opening their offices to in-person workers as early as today. Most are highly limiting capacity to 10% or 20%, with a gradual increase so long as certain protocols are met (masks, social distancing and regular COVID-19 tests). Even with an increasing physical staff, many companies see remote work and/or a hybrid mix of in-office time as a likely post-pandemic employee work program.

Did You Know?

Iron Could Be a Low-Cost Battery Alternative

Lithium-ion or Li-ion batteries in different formulations and setups are the most common power sources for electric vehicles. These batteries have a high power-to-weight ratio, high efficiency, and generally tolerate high-temperature environments. But all this comes at a high-relative cost as Li-ion batteries contain expensive and scarce metals like cobalt, nickel and manganese.

In China, a low-cost alternative, touted by Elon Musk, is disrupting the EV business. Lithium ferro-phosphate batteries, or LFPs, cost much less to produce and have a much lower propensity to overheat or catch fire; they also last longer. Unfortunately, current versions tend to offer fewer miles per charge and struggle in cold weather. But Musk and others, including Volkswagen, see LFP potential for entry-level EVs.