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But if a rare, global event like this happens and companies' emergency funds are mostly investments, isn't everyone going to try to liquidate their investments,
by glass_of_water 7y ago
But if a rare, global event like this happens and companies' emergency funds are mostly investments, isn't everyone going to try to liquidate their investments, crashing prices to a level where those investments aren't worth enough to keep them funded through the event?
- dlp211 7y agoIf everything stopped, that would be an issue, but in reality there is still a ton of economic activity happening. As far a big businesses go, there are a handful of industries that are being impacted by this pandemic and if they were slowly drawing down on cash reserves over the next 6 months or so that probably isn't terribly harmful. Also, this is why Central Banks exist.