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Why is it illogical? Often there is a deeper logic than what appears on the surface. Nassim Taleb pointed out on twitter recently that when interest rates are
by bfieidhbrjr 7y ago
Why is it illogical? Often there is a deeper logic than what appears on the surface.
Nassim Taleb pointed out on twitter recently that when interest rates are zero (in reality negative with inflation), buying tons of non-perishable goods isn't really that bad of an idea. The time value of the money is arguably better sitting in toilet paper than cash.
To answer your question, yes it really is possible that we run out of basic goods. That's why people are "panicking". Personally I don't see it as super likely, but you could reasonably argue that it's probable.
- robjan 7y agoThere are other investment vehicles than cash and toilet paper. One's that are actually productive.
- bfieidhbrjr 7y ago/r/wallstreetbets would love to know what those are right now?
- robjan 7y agowsb is about speculation, not investing. This straw man doesn't diminish my argument.
- emsign 7y agoYes, the supply chains can be disrupted. Of course the governments will make sure that grocery stores, pharmacies and trucks for food delivers will still be open or be able to pass borders. But unforseen events can make it so you local grocery store has close or runs out. I've had people I know infected with the virus and I know even more people who can't come to work, because of some other events, like Kindergardens closing, so they have to stay at home to watch their kids. It's not always as simple as "no more flour", it can be an unforseen event that can hit you hard.