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So if people are broke, landlords are broke, stores are broke, companies are broke -- just who exactly has the keys to the kingdom here? Who isn't broke? Just b

So if people are broke, landlords are broke, stores are broke, companies are broke -- just who exactly has the keys to the kingdom here? Who isn't broke? Just banks?

zaroth 7y ago
Who is servicing their debt this month? No one. The banks are just as fucked as everyone else.
sudoaza 7y ago
All the essentials who don't get locked and people are stocking on: health, supermarkets and their providers. Also those who are online or can be easily adapted: streaming, communication, online markets, education, soft development.
pdonis 7y ago
Not all of any of these are broke. Many companies have plenty of demand. Many companies have much greater than usual demand, or are shifting production to meet changed demand (for example, it looks like GM is going to be manufacturing ventilators). Those companies and their employees aren't broke--far from it. Not to minimize the impact on companies and people who are seeing drastically reduced demand, but it's a serious overstatement to say that all companies and people are.
danaris 7y ago
Well, right now, we have a serious problem with cash flow—that is, there isn't much cash flowing through the economy, because people are staying in their homes. So people who are still employed, but can't (or shouldn't) leave their homes still have some money, probably more than usual. But the primary answer to that question is the same as it's been for the past couple decades: the people with the money are, well, the people hoarding all the money. The owners, the (big) employers, the people at the top. As has been reported various places, just as an example, the airline industry spent the last decade spending something like 80-90% of every dollar they made buying back stock to enrich their executives. That's why they don't have anything saved for a crisis like this, and that's who has all the money now.
- lotsofpulp 7y ago
  What if those executives invested the cash into other equity?
vikramkr 7y ago
The fed and congress. hence stimulus.
hpliferaft 7y ago
Any company that sells to people inside their homes is doing great. Games and content providers, video conferencing software, restaurants that do food delivery, Amazon.
- mcny 7y ago
  Anecdote: just talked to my neighbor who owns a delivery takeout quick service restaurant and they estimate business is down 70%... maybe the bigger chains are ok but small business likely not
- deleted 7y ago
  [deleted]
- TaylorGood 7y ago
  Restaurants still have the hurdle of fear - is everybody in the kitchen wearing gloves, are they all non-COVID, etc.. There are enough touchpoints in the process to get take out delivered I'm avoidng it.
  - markkanof 7y ago
    And that is certainly your prerogative to do. My family is getting takeout a few times a week to support our favorite local restaurants. Just providing a counter point that there is still money going into some restaurants (although I'm sure it is less than typical).
asdff 7y ago
Yup. For every loss of a dollar there is a gain of a buck in a short position somewhere.
- granzymes 7y ago
  This is definitely not true. Value can be added to the economy and value can be lost from the economy. The size of the pie is not fixed.
  - saagarjha 7y ago
    Specifically, when a substantial portion of the economy is not doing anything at all you can’t just magically come up with the difference.
bhl 7y ago
Companies with large capital reserves, e.g. Apple, Google, Berkshire Hathaway. With startup valuations low, those three could go on a discounted M&A spree.
goatinaboat 7y ago
Who isn't broke? Just banks? Banks manage money but that’s not the same as having that money on their own balance sheet. Banks can and do go bankrupt.

So if people are broke, landlords are broke, stores are broke, companies are broke -- just who exactly has the keys to the kingdom here? Who isn't broke? Just banks?

zaroth 7y ago

Who is servicing their debt this month? No one. The banks are just as fucked as everyone else.

sudoaza 7y ago

All the essentials who don't get locked and people are stocking on: health, supermarkets and their providers. Also those who are online or can be easily adapted: streaming, communication, online markets, education, soft development.

pdonis 7y ago

Not all of any of these are broke. Many companies have plenty of demand. Many companies have much greater than usual demand, or are shifting production to meet changed demand (for example, it looks like GM is going to be manufacturing ventilators). Those companies and their employees aren't broke--far from it. Not to minimize the impact on companies and people who are seeing drastically reduced demand, but it's a serious overstatement to say that all companies and people are.

danaris 7y ago

Well, right now, we have a serious problem with cash flow—that is, there isn't much cash flowing through the economy, because people are staying in their homes. So people who are still employed, but can't (or shouldn't) leave their homes still have some money, probably more than usual. But the primary answer to that question is the same as it's been for the past couple decades: the people with the money are, well, the people hoarding all the money. The owners, the (big) employers, the people at the top. As has been reported various places, just as an example, the airline industry spent the last decade spending something like 80-90% of every dollar they made buying back stock to enrich their executives. That's why they don't have anything saved for a crisis like this, and that's who has all the money now.

lotsofpulp 7y ago
What if those executives invested the cash into other equity?

vikramkr 7y ago

The fed and congress. hence stimulus.

hpliferaft 7y ago

Any company that sells to people inside their homes is doing great. Games and content providers, video conferencing software, restaurants that do food delivery, Amazon.

mcny 7y ago
Anecdote: just talked to my neighbor who owns a delivery takeout quick service restaurant and they estimate business is down 70%... maybe the bigger chains are ok but small business likely not
deleted 7y ago
[deleted]
TaylorGood 7y ago
Restaurants still have the hurdle of fear - is everybody in the kitchen wearing gloves, are they all non-COVID, etc.. There are enough touchpoints in the process to get take out delivered I'm avoidng it.
- markkanof 7y ago
  And that is certainly your prerogative to do. My family is getting takeout a few times a week to support our favorite local restaurants. Just providing a counter point that there is still money going into some restaurants (although I'm sure it is less than typical).

asdff 7y ago

Yup. For every loss of a dollar there is a gain of a buck in a short position somewhere.

granzymes 7y ago
This is definitely not true. Value can be added to the economy and value can be lost from the economy. The size of the pie is not fixed.
- saagarjha 7y ago
  Specifically, when a substantial portion of the economy is not doing anything at all you can’t just magically come up with the difference.

bhl 7y ago

Companies with large capital reserves, e.g. Apple, Google, Berkshire Hathaway. With startup valuations low, those three could go on a discounted M&A spree.

goatinaboat 7y ago

Who isn't broke? Just banks? Banks manage money but that’s not the same as having that money on their own balance sheet. Banks can and do go bankrupt.