COVID-19 impacts:
1. Unnecessary death of good, earnest people
Reason: inundated hospitals leads to war-time triage decision making. History will point the finger directly at POTUS and inept government response weeks ago.
1. Unnecessary death of good, earnest people
Reason: inundated hospitals leads to war-time triage decision making. History will point the finger directly at POTUS and inept government response weeks ago.
2. Massive unemployment.
Reason: consumer confidence zero, tourism crippled and social gatherings of all forms disappear for time being. These things support, directly and indirectly, a whole host of industries and businesses.
Reason: consumer confidence zero, tourism crippled and social gatherings of all forms disappear for time being. These things support, directly and indirectly, a whole host of industries and businesses.
3. Wealth destruction for anyone holding equities.
Reason: supply shock leading to demand shock has diminished confidence in long term prospects for all companies all over the world.
Reason: supply shock leading to demand shock has diminished confidence in long term prospects for all companies all over the world.
4. More nationalism and tribalism
Reason: advocates for closed borders and nationalized economies will have valid arguments for restrictive policies
Reason: advocates for closed borders and nationalized economies will have valid arguments for restrictive policies
5. Small businesses of many forms will need bailouts.
Reason: bad working capital dynamics and can’t weather an 18month downturn
Reason: bad working capital dynamics and can’t weather an 18month downturn
6. Major industries will need bailouts
Reason: poor balance sheet and inability to absorb demand hiccups
Reason: poor balance sheet and inability to absorb demand hiccups
7. Credit bubble pops
Reason: too many companies become zombie companies and can’t pay back debt
Reason: too many companies become zombie companies and can’t pay back debt
