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Both of the movies The Big Short and Too Big To Fail have a moment where they're watching people come out of a subway or walk down the street, and say something

Both of the movies The Big Short and Too Big To Fail have a moment where they're watching people come out of a subway or walk down the street, and say something like, "They don't have any idea what's about to hit them." It sort of feels like that now. Lots of normality still. There is definitely something not right about the stock market not feeling the impact of millions of unemployed and more than half of retail stores missing rent payments. Maybe there's macroeconomic explanations involving credit and the Fed. Maybe the stock market is in fact disconnected from the general economy as a whole, and is really just a plaything for giant corporations and the 1%. Maybe it's not as bad as it seems. Maybe everyone's betting on a V shaped recovery after the virus fades. But as we saw during the financial crisis, everything seems fine until it isn't - then things go pear shaped in a hurry.

devalgo 6y ago
>It sort of feels like that now. Lots of normality still. There is definitely something not right about the stock market not feeling the impact of millions of unemployed and more than half of retail stores missing rent payments. Not saying their right but Wall St. types will tell you the market has already priced the pandemic and current unemployment numbers in and is forward looking.
IAmGraydon 6y ago
The difference here is that in the financial crisis, The market was in a bubble. Almost anyone you would talk to at the time would tell you the Stock market has never been stronger. A very, very few number of people knew what was coming. Now, every armchair trader is believing they’re reliving The Big Short and they’re the main character. They fail to realize that this is literally the opposite situation- a crash that has already happened and now the subsequent recovery we’re in. How many crashes did you know about before they happened? I’m guessing zero. You still believe this time is different.
- 9nGQluzmnq3M 6y ago
  You're asserting that the crash happened (came to an end) and we're in recovery now. A lot of people, myself included, are less than convinced that's the case: believe it or not, there's still a lot of room for this to get much worse. The pandemic is barely getting started in places like India and South America, and the US is not out of the woods yet.
  - tonyedgecombe 6y ago
    Poorer parts of the world are going to see the virus work its way through their population without much resistance. I doubt it will have the economic impact that it will in the developed world.

devalgo 6y ago

>It sort of feels like that now. Lots of normality still. There is definitely something not right about the stock market not feeling the impact of millions of unemployed and more than half of retail stores missing rent payments. Not saying their right but Wall St. types will tell you the market has already priced the pandemic and current unemployment numbers in and is forward looking.

IAmGraydon 6y ago

The difference here is that in the financial crisis, The market was in a bubble. Almost anyone you would talk to at the time would tell you the Stock market has never been stronger. A very, very few number of people knew what was coming. Now, every armchair trader is believing they’re reliving The Big Short and they’re the main character. They fail to realize that this is literally the opposite situation- a crash that has already happened and now the subsequent recovery we’re in. How many crashes did you know about before they happened? I’m guessing zero. You still believe this time is different.

9nGQluzmnq3M 6y ago
You're asserting that the crash happened (came to an end) and we're in recovery now. A lot of people, myself included, are less than convinced that's the case: believe it or not, there's still a lot of room for this to get much worse. The pandemic is barely getting started in places like India and South America, and the US is not out of the woods yet.
- tonyedgecombe 6y ago
  Poorer parts of the world are going to see the virus work its way through their population without much resistance. I doubt it will have the economic impact that it will in the developed world.