
The domino effect Covid-19 on our financial market - jenntoda
https://smashnotes.com/p/all-in/e/covid-19-political-economic-social-ramifications/s/what-are-the-unintended-consequences-of-coronavirus-lockdown
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jenntoda
Unlike all other times before, our economy is over-leveraged like never seen
before. The COVID-19 shut down of main street mom-and-pop stores will trigger
a snowball effect onto wall street. However, cutting rates to zero and Trump
throwing his last cards in will only kick up a temporary fix. In reality it is
adding more fuel to the fire by further extending the leveraging, and thereby,
volatility of the market, until this all crash into a giant complete free
fall.

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kirillzubovsky
Earlier in a podcast Chamath also explains that we are basically facing a
choice: save the people, or save the markets, and we are choosing to save the
people.

If you look at the link from Draper, he is a VC, and is clearly looking at the
situation from a more financial stand-point. His push to reopen business as
usual might sound cold, given the situation, but it has legs, at least from a
purely economical point of view.

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jenntoda
Nope, that doesn't make any sense. Keep the shops open now and infection grows
exponentially. Overwhelm the ICU capacity = MORE people will die. MORE people
dead = less consumption = less people paying rent, etc.

There is no good solution :(

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kasperni
Agreed. Honestly, who is going to take a trip around the world now? Even if
all the borders were open. No one is going to risk getting stuck in some
foreign country.

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forkexec
Some rich jerk who's paying people in hand-sanitizer instead of money.

