> This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities. There absolutely is a lack of liquid

> This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities. There absolutely is a lack of liquidity, that's why you see all these stock sales. To name just one example, lots of companies have been buying back stock on margin because of extremely cheap loans. That stock is now worth far less, the loans keep maturing, new loans are harder to get and more expensive. So how do you raise cash? Sell stock. The cycle continues. How did we get there? Not being over-leveraged in times of cheap money is a competitive disadvantage. > People aren’t going to stores, restaurants, and airlines because of SARS-CoV-2, not a lack of credit or money. They are also not going to work in many cases, supply chains have been disrupted, production has been slowed. That's a lot of income that has either disappeared or been put into question. That income is supposed to turn into spending, that spending is supposed to be someone else's income. It's a vicious circle. The problem isn't so much what people are doing now, but what they're (not) going to be doing months down the line, and the uncertainty surrounding that. > Printing money isn’t going to create customers for businesses effected by this pandemic. Pretty much every business is affected by this pandemic. Without injecting liquidity, a massive wave of bankruptcies is going to follow suit in short order and the whole economy is going to go tits up. You can argue that liquidity shouldn't have been injected in the past years during "the greatest economy of all times", but that milk has been spilled.