Over three million Americans filed for unemployment insurance this week – with the COVID-19 pandemic shuttering small and large businesses, including aviation, cruise ships and hospitality.
Here's the good news and the bad news.
Not mincing words, Shark Tank star and FUBU founder Daymond John said the economic crisis is far from over, but the storm should pass within six months.
That's the good news.
The bad news: the repercussions and shock waves will likely be felt for the next two years.
"Everything stopped on a dime and you have to make an immediate plan of action and response. [Businesses] are going to have to renegotiate their land leases, their credit cards, any kind of bills …they're going to try to have to settle at pennies on the dollar with any kind of third party vendor. So you have to stop the bleeding at first, and then you have to then say, 'what assets do I have that I can dig into,'" John said, speaking from his home in Florida.
On Thursday, the Department of Labor reported that 3.28 million people filed for unemployment insurance last week, confirming that the economy is rapidly transitioning from strong activity to disastrously weak because of the coronavirus pandemic. The staggering number is more than four times higher than ever recorded, and a sharp rise from 282,000 the previous week.
John sat down for an exclusive interview with Kitco News to talk about navigating the financial storm, which he said, he could have never fathomed.
"You are never prepared for disruption. But I was prepared because I went through the 1998 crash, I went through the dotcom bubble crash, I went through 2001 when planes hit buildings, I went through 2008 and I understood and I always understand even in my personal life, that 20 percent of my time needs to be exploring and learning other things that are going to be applicable to my life. And that I will fail at most of them, but I need to put that 20 percent into those new things because times will change," the Shark Tank star said.
John grew his clothing line FUBU from forty dollars and a few sewing machines in his mother's basement and turned it into a $6 billion fashion industry giant. He has invested millions in making entrepreneur dreams come true on the hit show Shark Tank. And now he is out with his latest book Power Shift: Transform any situation and Close any Deal and Achieve any Outcome.
"I realized one thing. A lot of people think they need permission to have power in their life and negotiate and I'm giving you permission now to have power because I promise you nobody is going to give you power," John said, taking advice from his book.
"Nobody is going to give you power. I'm not coming to your house, kicking down the couch, knocking the Doritos out of your hand, picking you up and saying I'm going to make you more powerful than me," he added. "I wanted people to understand that the thing that separates people who are happy or successful is what we negotiated in life. In this book, I've given people the ability to negotiate."
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