5 ms·
Nothing is lost or vanishes, it's just a change in the ratio at which people are willing to exchange two assets.
by devit 7y ago
Nothing is lost or vanishes, it's just a change in the ratio at which people are willing to exchange two assets.
- altcognito 7y agoNothing except your ability to procure new investment capital, borrow to pay wages which may or may not include premiums for health care.
- bluGill 7y agoNone of that should be tied to the stock market. That has been advice from all the experts for ages. Even the strongest stock advocates have said the stock market it for long term savings.
- JumpCrisscross 7y ago> None of that should be tied to the stock market Crashing equities inhibit capital formation. That happens in both the public and private markets. That, in turn, puts pressure on credit markets. The firms that survive will cut back on spending. The ones that are too leveraged will go under. Both have tangible effects. In this case, there is the uncertainty around demand destruction. Markets falling more than expected communicate a belief that more demand will be destroyed in the coming weeks than was expected. That, in turn will prompt corporate planning to reduce outlays. Not only is cash from financing expected to drop, but cash from operations to do so more than expected.
- CrazyStat 7y agoIf you are a publicly traded company it's impossible for all those things to not be tied to the stock market.
- deleted 7y ago[deleted]
- Nasrudith 7y agoIt is a bit pedantic but the truth is that you never really had it but nobody noticed before. If you invest in a ponzi scheme and your nominal value was $1M but you only put in $10K you didn't lose $1M you lost $10K plus opportunity costs.
- _jal 7y agoI love how some market-watchers suddenly retreat into abstract economic pronouncements in the face of meltdowns. There was a fair bit of this in 2008 and 1989, too. Nobody is lost or vanishing due to Covid-19, it's just a change in their respiratory rate.