5 ms·
The current crash is 100% because of corona, not sure what proof you need?
by Thaxll 7y ago
The current crash is 100% because of corona, not sure what proof you need?
- deleted 7y ago[deleted]
- KaoruAoiShiho 7y agoYeah I'm not sure if OP knows what he's talking about. None of those other things are correcting... ONLY the asset market.
- AlexandrB 7y agoWait until there are mass defaults because of the loss of income.
- KaoruAoiShiho 7y agoCompanies and banks are healthier and more asset rich than they have been for decades.
- AlexandrB 7y agoSome companies are, some are not. Many have been juicing their stock price with stock buybacks at the expense of cash reserves (see Boeing).
- KaoruAoiShiho 7y agoBoeing has nothing to do with the current situation and it's not really under any more pressure presently even if there is a temporary downturn.
- AlexandrB 7y agoThat’s an odd assertion considering how much the airline industry is going to hurt for the next 6+ months. I’m sure both Boeing and Airbus will see a drop in orders as their customers teeter on the edge of bankruptcy.
- KaoruAoiShiho 7y agoCould be wrong, but my understanding is that the aircraft industry is supply not demand constrained.
- blobbers 7y agoIt's going to be the financial crisis all over again. Ppl default on loans because they lack cash flow banks didn't account for this with lax lending standards banks go bankrupt but TARP style program bails out banks hopefully people stay in their homes ...somehow. (some kind of mortgage payment moratorium?)
- KaoruAoiShiho 7y agoBanks are fine now dude, it's nothing like 08.
- blobbers 7y agoJust wait. Canadian banks have been hit hard due to falling oil prices and expected resultant bankruptcies. American banks will get hit by rising unemployment.
- a_t48 7y agoWe need a mortgage and rent payment moratorium nationwide if the majority of the country is expected to just stop working.
- vsareto 7y ago>banks didn't account for this with lax lending standards Pretty sure the ratings fraud got fixed. Also pretty sure they didn't just go back to handing loans out to anyone with a pulse. I'm sure there's some crazy intricate financial instruments made up of dogshit still around, but it's probably going to be a smaller percentage of the bank's balance sheet.
- daxorid 7y agoCoronavirus was the pin that popped the bubble. But the pin could have been some other event, at some other time. All crashes have catalysts, but the specific catalyst is usually irrelevant, in hindsight.
- takeda 7y agoCorona was what broke the camel's back, the stock already was struggling before.
- dilyevsky 7y agoIt’s a 1000kg weight that broke camels back
- smegger001 7y agoa straw would have broken the financial system camels back unfortunately it just got hit in the head by a corona brick
- burntoutfire 7y agoSP500 rose over 10% in the 6 months preceding the corona outbreak - how is that struggling?
- takeda 7y agoIt was struggling in late 2018 (after the sugar rush of tax cut ended) and 2019. FED was lowering interest rates to make it look better even though other indicators were looking bad.