Thread by @TheLastRefuge2

Good grief. Obtuse much?

The banks and financial assets of the U.S. banking system are fine. Very much so. There is strong banking liquidity and plenty of reserve available.

The "market crash" is connected to investment instruments. ie. paper loses.

https://twitter.com/kylieatwood/status/1237908560329289730

Allow me to provide a metaphor.

You own a modest home.
Your current mortgage balance is $200k
The house is fine....

Tomorrow you discover your city council has permitted a railway line behind your neighborhood.

The value of your home drops 25 percent.

The house is still fine.
Nothing has changed from yesterday.
Your mortgage balance is still $200k and
Your life function is the same.

Comparing to yesterday.
The kitchen is still just like you want.
The bathrooms and bedrooms are just as you saw them for the past year.
The roof is still the same.
Nothing has changed.
The House is still fitting your needs.

But the value just dropped b/c of the railway permit

A month passes and the City Council scraps the plans for the railway line. The railroad carrier no-longer wants or needs it.

A day after the month passes, you house value is right back where it was today.

See how that happened?

Now replace the railway permit with Coronavirus.