4 ms·

Yeah 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 ago
Wait until there are mass defaults because of the loss of income.
- KaoruAoiShiho 7y ago
  Companies and banks are healthier and more asset rich than they have been for decades.
  - AlexandrB 7y ago
    Some 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 ago
      Boeing 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 ago
        That’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 ago
        Could be wrong, but my understanding is that the aircraft industry is supply not demand constrained.
- blobbers 7y ago
  It'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 ago
    Banks are fine now dude, it's nothing like 08.
    - blobbers 7y ago
      Just 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 ago
    We 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.

AlexandrB 7y ago

Wait until there are mass defaults because of the loss of income.

KaoruAoiShiho 7y ago
Companies and banks are healthier and more asset rich than they have been for decades.
- AlexandrB 7y ago
  Some 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 ago
    Boeing 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 ago
      That’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 ago
        Could be wrong, but my understanding is that the aircraft industry is supply not demand constrained.
blobbers 7y ago
It'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 ago
  Banks are fine now dude, it's nothing like 08.
  - blobbers 7y ago
    Just 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 ago
  We 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.