Stocks down.
Bonds down.
Metals (gold, silver) down
Measured in terms of the US dollar, everything is down, even safe haven things.
And this in the face of pumping by the Fed...which I assume is not working. The speed of cash seems to have slowed significantly. At what point does the volume of cash building up behind the dam overwhelm the dam?
I'm a recliner economist. Pretty much everything I know about macroeconomics, I learned on the Internet. So, I'm no expert. I welcome comments from anyone.
would have just told people to be careful and left open businesses, things would be nowhere near as bad. The media is fanning the flames.
Otherwise viable businesses that miss payments on equipment, rents, operating loans, or whatever just because of this halt in activity. It almost seems like we need some sort of debt holiday for three months. No payments necessary and no accrued interest. We’ll just extend the maturity by three months for everything out there...mortgages, business loans, student loans, whatever. Give banks and finance companies zero percent loans for three months to carry this temporarily non-performing stuff. Theoretically, loan portfolios would have the same value in three months time as they did before this crisis if the maturities were extended.
Of course, that assumes we are back on our feet by mid June. Not sure that is a great assumption. I don’t see the exit strategy from social isolation. We really need a vaccine. Maybe the government should offer a $10bn x-prize for the first company that delivers 500mm working vaccines.
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Link: https://twitter.com/Nouriel/status/1239942642244468744
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