China was in recession/depression before shutting down their entire economy for almost 2 months and have barely recovered. They suffered a supply shock. And now because the entire worlds demand has declined, China is now suffering from demand shock. And foreign manufacturers are now FLEEING which adds to massive loss of permanent jobs. That’s on top of a debt overload and they don’t control the worlds main currency
Japan and Germany were close to recession before the virus hit. Plus they are mainly exporters. Plus automobile is their big export...which now the demand has collapsed around the world.
Nope that’s not it. Do you see China running out of masks right now? No of course not. They have so much they are “donating” to other countries. They have the world’s capability to make masks.
The reason we don’t have enough face masks is because we have moved all our medical supply chain to China. The reason we were able to do that is because during the Clinton administration we allowed US businesses to destroy US manufacturing capability by granting permanent normal trade relation with China.
I like how the liberal/Democrats always ignore China/offshoring during their discussion of economic crisis. (Probably because they benefited from the slave labors in China more)
You are being a bit naive about journalism in an authoritarian country that has control over digital media coming out of the country. The fact that this picture made it out (suggesting that image recognition/AI censor rules are still naive in China) is proof enough that there are voices desperately trying to tell the outside world - don’t trust their government!!
Translated: On March 20th, A local community management issued a notice, stating that one of the unit has 2 patient found, the unit will be sealed and no one is allowed to enter or exit.
It essentaily means that they are starving to death in the room.
Closing down schools, banning large gatherings, setting up drive thru testing, ramping up test kits next week, letting employees to work from home, closing borders to China and Europe (25k cases), etc
Game over is an exaggeration. There’s 3.4 trillion sideline cash. China’s economy collapsed 80-90% in the last month and will take months to recover, on top of exploding debts. Japan and Germany was in recession before coronavirus hit.
On the other hand, US was growing a steady 2% and had record low unemployment before this. If US can flatten the curve, with only ~3000 cases thus far, US will recover quickly and come out way ahead. And the sideline cash will rush into US
The government can simply ban shorts, much like 2008, and what other European stock markets have done already. That would kill the shorts dead in its tracks. Then the stock market would stabilize, in time for businesses to stabilize and hopefully by summer everything will be recovery focused.
This is a global health crisis that happens to impact millions of workers who are now worried they might contract coronavirus or they might lose their jobs if they were in some of the more impacted industries.
To be shorting and attacking the economy and businesses during this time (all businesses are interconnected, especially ones that provide food/energy/medical supplies) and be so distrustful of efforts to help ramp up testing and saving lifes, it’s just wrong.
I happen to know many people who works in cruise industries and hospitality. These folks are worried sick right now. Those people are who you are shorting
US ability to make and distribute medicine and medical supplies is falling apart and it’s a direct result of consolidation of supply chain and factories that make it. 4 power buyers buys control over 90% of generic drug for US. And probably similar percent for medical equipments.
Good news is that now all eyes are on the medical supply chains, and introduction of the medical supply drug act bill, we should see some supply chain move back to US.
Folks. Companies listed on the stock market hire average folks who need the money to provide for their spouses and kids. Companies that provide staples to you like food and gas and transportation and medical supplies.
These are the companies you are actively shorting. Think about that. This isn’t the same as 2008.
This is to help an otherwise very healthy US economy (low unemployment rate, solid gdp growth, income increases) from being taken down by an one time external, expiring event and panic that flows from it.
What is the point not supporting crucial companies in the stock market? Are you really better off if target or chevron or Hilton goes under? And tons of people have no jobs and there no access to staples?
I beg to differ. US was the first major country to ban travel from China. Other countries only followed suit after. South Korea, Japan, France, Germany and Italy never did, and see where they are now.
Excluding China (which they wisely banned early) and South Korea (one city daegu is the center and majority of infection) there is only japan with 639 cases. Europe has close to 20,000 cases.
But if an Asian country’s cases quickly spikes, pretty sure Asia will be shut down in travel to US
China was in recession/depression before shutting down their entire economy for almost 2 months and have barely recovered. They suffered a supply shock. And now because the entire worlds demand has declined, China is now suffering from demand shock. And foreign manufacturers are now FLEEING which adds to massive loss of permanent jobs. That’s on top of a debt overload and they don’t control the worlds main currency
Japan and Germany were close to recession before the virus hit. Plus they are mainly exporters. Plus automobile is their big export...which now the demand has collapsed around the world.
US comparatively is safer.