The Daily Valet. - 7/31/20, Friday

✔️ We Didn't See This Coming

July 31, 2020

Friday, July 31st Edition

Cory Ohlendorf, Editor in Chief of Valet.

Would you consider cashing out your 401K to buy another citizenship in order to travel again?

Cory Ohlendorf , Editor ⋯ @coryohlendorf

Today’s Big Story

A Record G.D.P. Collapse Explained

Did a third of the economy really just vanish in the last three months?

The U.S. economy shrank at the fastest rate on record in the second quarter of 2020, according to data released Thursday by the Bureau of Economic Analysis Labor Statistics.

According to the report, the gross domestic product nosedived by 32.9% on an annualized rate in Q2 of this year—that is, April through June. The key takeaway seems to be that it marks a fall worse than during the Great Depression. But what does this percentage actually mean?

Does it really represent the loss of a third of the economy? Not really, according to the Washington Post. The Commerce Department reports quarterly G.D.P. numbers at an annual rate to allow for easy comparison to other time periods.

To see a third of the economy truly vanish, look at the Great Depression. From 1929 to 1933, G.D.P. contracted about 36%, according to data (PDF) collected by economists Nathan Balke and Robert Gordon. That is the actual contraction—no “annualization” in sight.

But there is mounting evidence that the attempt to freeze the economy this spring and defeat the virus has not produced the rapid rebound that many envisioned. Consumer spending, the main engine of the economy, contracted by a record 34.6% annualized clip in the spring, reports MarketWatch.

“Bottom line, the numbers of course are alarming but all self inflicted with about half the quarter reflecting almost full shutdown and the other half the slow reopening,” Peter Boockvar, chief investment officer at the Bleakley Advisory Group told CNBC. “That said, it does reflect the hole out of which we now need to climb out of as we rebound.”

↦ One Solution? A another stimulus package, which could offer a $1,200 stimulus check along with other other incentives proposed to offset the worst financial effects of the pandemic.

Obama Gives Touching Eulogy for John Lewis

It was also a pointed critique of our current leaders

The funeral of Congressman and civil rights leader John Lewis took place on Thursday, and a crowd of mask-wearing family members, friends and fellow change-makers were there to pay their respects, reports the New York Times.

Former Presidents Bush and Clinton each shared kind words and memories of Lewis, but it was former President Barack Obama's heartfelt and impassioned eulogy that left people (on both sides of the aisle) talking.

Obama told the crowd that like so many others he “owed a great debt” to Lewis, calling him “a man of unbreakable perseverance.” He called the filibuster “another Jim Crow relic,” and issued a blistering critique of the Trump administration.

“Even as we sit here, there are those in power who are doing their darnedest to discourage people from voting by closing polling locations, and targeting minorities and students with restrictive ID laws, and attacking our voting rights with surgical precision.”

↦ Last words: The Atlanta Journal-Constitution printed this essay that Lewis asked to be published on the day of his funeral.

A Costly Travel Hack

People are buying another country’s citizenship

I've always considered living that of an expat life for a bit. Six months in Tokyo? Yes, please. Especially now. Of course, we Americans are pretty much stuck—no one wants to let us into their country until we get our COVID cases down. But what if you could retire your U.S. passport and use one from a more welcoming country?

Turns out you can. For a price. From Portugal to New Zealand, there are countries around the world that welcome Americans—for a price—with citizen by investment programs that grant residency and a second passport.

One firm told By the Way they've seen a nearly 40% increase, year to date, in demand for services that help clients obtain citizenship in a sovereign state through financial means. (Whenever “means” is used to describe money, you know we're talking about serious cash.)

The price tag for these services varies, but they range from $100,000 for some Caribbean options to more than $2 million for European countries.

↦ FYI: Tom Hanks and Rita Wilson recently made headlines when they became honorary Greek citizens and received second passports.

Nicholas Braun Drops a Quarantine Banger

Listen up and stay safe out there ...

Well, Taylor Swift had a good run with folklore. But there's a new surprise quarantine drop ... and it slaps.

Succession's Nicholas Braun has been making some beautiful-ish music while in lockdown, reports Mashable. And the 32-year-old actor just released the music video for his coronavirus anthem, aptly titled “Antibodies.”

The Emmy-nominated Braun pitched the song to his Instagram followers in May and asked the musically talented among them to turn it into a track.

According to Rolling Stone, producer Colin Brittain helped craft the submitted editions into an explosive pop-punk version of the song, which grows on you the more you listen. What's more, proceeds from the video are going to Cope and Partners in Health.

↦ FYI: Braun has been tested for both COVID-19 and antibodies—and the results were both negative.

In Other News

Other Things We’re Talking About Today

Alfresco aperitif culture

The NBA jerseys

Topo Chico hard seltzer: good or bad?

Your Weekend Pairing

The Umbrella Academy + a Whiskey Sour Cocktail

Netflix's The Umbrella Academy follows a dysfunctional family of wayward would-be superheroes who occasionally find a way to combine their talents to do extraordinary things. But often, they fall victim to their own egos and insecurities, which pushes the world even closer to the brink of an apocalypse. High stakes, right?

If you weren't one of the 45 million who watched the first season, Vanity Fair says that if you're a fan of Harry Potter, X-Men, or the Avengers movies, you'll dig this franchise. I'd suggest watching the first season to get acquainted with this motley crew. If you did see it, then you're ready to pick up where the time-twisting character Five (played by Aidan Gallagher) dropped them off—in a Dallas alley leading up to the JFK assassination.

↦ Your Pairing:The show's vibe has an overall throwback quality to it. And since last season sent the group back in time to the '60s, it seems fitting to pair the show with a classic cocktail from the era: the whiskey sour. There's a simple structure behind all sours, the family of citrus-based cocktails, says Bon Appétit. Their easy-to-make recipe calls for bourbon and personally, I'd recommend Four Roses yellow label. Especially for mixing into cocktails, this offers a great depth of flavor for a remarkably low price.

What We’re Buying

Hill City's impending shut down is a sad day for men's athleisure, but bittersweet relief for everyone's wallets. Case in point, their version of a trail short. It's streamlined, lightweight, with a touch of stretch and way more versatile than just for hikes. Save 30% off on a pair that can keep you comfortable all day while working from home, taking your dog for a walk or exploring a park close to home.

↦ Get It $78 / $54 at Hill City

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