Was this a conspiracy or just massive sensationalism? The answer to the question is meaningless.
The bottom line is the global economy is obliterated. While China is getting back to work, the rest of the world is just starting to completely shut down. Some are making estimates at what the total price tag is going to be but the end result will be in the trillions.
We can see entire industries realize year over year numbers down more than 60%. The automobile industry was sucking wind before this situation started. Now, it is completely on life support.
The same holds true for the airline industry. And restaurants. And physical retail. And the hotel industry.
Of course, the big behemoth is right around the corner. How long until the housing market completely collapses as buyers disappear? It is crucial to remember that real estate/construction make up a large portion of the overall economy. The tentacles, which are usually long, are being severed.
This morning, it was reported, unsurprisingly, that unemployment claims jumped. The sad truth is we are just getting started. Simon Properties, the largest owner of retail space in the United States, announced yesterday that all its properties were closed until the end of the month.
So much for all those who are working in retail. They are going to be out on their ear.
All the talk of stimulus, bailouts, and tax cuts will end up doing very little. To start, the government tends to be to slow to react. When they do something, it is usually too small. If the Federal Government, along with the Fed, want to back stop this thing, they better get ready to put out trillions. Anything short of that is going to be akin to a band-aid after having a left severed off.
Out of tragedy often comes opportunity. For those who have some resources, whether liquid or in a retirement account, we are likely going to see major wealth creation over the next couple decades. The DJIA below 20,000 will provide anyone who buys an index fund with at least a double, probably a triple. Of course, it will have to bottom out first.
Sadly, this will not help the average person. This is the elites game. They are the ones who will benefit the most.
For now, we just sit back and watch the collapse.
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Posted via Steemleo