Is this like 2008? Over the last few days, I have heard many say markets are behaving like that. I think this is a very narrow-minded observation (sorry). Look at this chart for Bank CDS for major banks. You literally cannot see the stress yet, in the big picture. 
My point is not that this is not a very serious situation. I think it is, now that the US outbreak is getting in motion (being recorded, with a lag, is another way of putting it). But the comparison to 2008 is very poor. This is about actual economic damage.
In 2008, it was so linked to asset losses (starting with sub-prime) and the related banking and funding market tension. And on this occasion, the driving forces are totally different. It is almost like things are flipped on its head.
On this occasion, it starts with economic damage, from supply chains breaking, tourism stopping, income being lost, demand faltering. That should drive asset prices. But it is different from 2008, when no-one could fund any assets and banks generated a sudden-stop funding problem
Liquidity is plenty now. In 2008, there was none. It is really not very similar; even if a certain assets may have seen a comparable draw-down in recent days.
I will leave at that, as this thread could have 100 elements in the chain, and still only scratch the surface.
I will leave at that, as this thread could have 100 elements in the chain, and still only scratch the surface.
