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Everything is related. Imagine if the market only dropped a bit, large companies could support their employees, the credit markets wouldnt require massive trill
by codingslave 7y ago
Everything is related. Imagine if the market only dropped a bit, large companies could support their employees, the credit markets wouldnt require massive trillion dollar spending. Supporting small businesses would be a walk in the park.
- SpicyLemonZest 7y agoIt's not really possible for the market to drop only a little bit in response to half the economy shutting down. Stock prices are an expectation of future cash flows, so they have to drop on news that a huge chunk of those future cash flows are cancelled.
- codingslave 7y agoLook at Boeing stock. Companies dropping 50% because they miss 3 months of revenue?
- sokoloff 7y agoIf that 3 months risks a bankruptcy, that might be right. Long-run valuation for shareholders doesn’t matter if the bond-holders end up with the company. I suspect this is a 12-24 month economic event, maybe longer before it fully rolls through.
- senordevnyc 7y agoIt’s insane to think that Boeing will just return to normal in 3 months. This could depress air travel for years.
- anigbrowl 7y agoYou're right about the financials but wrong about the direct economic impact. It's a 3 month hit that people are accepting, with the underlying fear that it will be a year-long hit, and the sickening feeling that recovery from this will take at least 5 years.