The domino effect Covid-19 on our financial market

https://smashnotes.com/p/all-in/e/covid-19-political-economic-social-ramifications/s/what-are-the-unintended-consequences-of-coronavirus-lockdown

by jenntoda • 6 years ago

11 8 6 years ago

smashnotes.com

kirillzubovsky• 6 years ago

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.

jenntoda2• 6 years ago

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 :(

kasperni• 6 years ago

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.

senectus1• 6 years ago

the damage to the economy and to the human population is PROVABLY better if you flatten the curve.

https://qz.com/1816060/a-chart-of-the-1918-spanish-flu-shows...

forkexec2• 6 years ago

There is a better solution: taking care of people, isolating the vulnerable and not allowing others to get sick unnecessarily rather than letting 120-170 million die.

anovikov• 6 years ago

UK chose to save the markets. Let's see how it will play out.

jenntoda2• 6 years ago

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.

The domino effect Covid-19 on our financial market

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