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[–] SpottyMatt ago  (edited ago)

  1. Long period of growth , as is required by our economic structure
  2. Lots and lots of debt everywhere, as is required by our economic structure
  3. WuFlu panic starts when China starts shutting down
  4. Sensing an end to growth, big players with lots of debt start selling assets to create cash so that they will be able to pay their debts when income & growth stops
  5. This tanks the stock market long before any supply-chain or production effects of WuFlu get a chance to
  6. Governments around the world, including the US government, start pumping money into the economy through two mechanisms, both of which are designed primarily to convince people to keep making loans and taking loans, because debt-based growth is what the system needs to survive.
  7. Other economies around the world start trading their currency for US dollars, which is historically been one of the safest and most stable currencies. This causes the dollar to go up in value versus those other currencies.

You are here.

Perhaps the efforts to "save the economy" will succeed, and then things will recover. People who believe this will be making & taking loans, and buying stocks. Especially foreign assets, as you can get a lot more of them for a dollar than you could before.

Perhaps those efforts will not succeed, in which case the US dollar will start to go down in value as inflation increases throughout the country as the Fed simply prints money to make up for economic activity that is not happening. People who believe this will be buying tangible assets like gold, silver, land, and of course guns and ammo.

The stock market is now neginning to show the beginnings of effects from supply-chain and economic disruption caused by the WuFlu shutdowns.

Go back to step five, and run through the rest of the steps again.

At least, that's what I think is going on.

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[–] slowcrash101 0 points 1 point (+1|-0) ago 

Ok but what's up with oil, you don't really believe that Russia and SA just decided willy nilly to tank the price of oil. I think some of it has to do with ceasing air travel and ships which consume copious amounts of fuel essentially 24/7, and that disruption has affected the market, but the price is artificially low. Buying oil futures now at what is essentially peak bottom one could make serious money when it rebounds, as air travel cannot be stopped indefinitely, and supply lines will stabilize.

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[–] alalzia ago 

For years corporations are getting loans to buy their own stock , now they are buying it with government money .

For the fuckers who insist that "capitalism works" LOL even tribal witchdoctorocracy can "work" when the banks are shitting imaginary money.

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[–] tokui 0 points 1 point (+1|-0) ago 

it's explicitly illegal to use the funds for executive pay or stock buybacks.

pay attention, keep up.

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[–] alalzia ago 

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[–] CryptoBard ago 

The good news about the stimulus, markets popping back up?

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[–] BjornIronside 0 points 3 points (+3|-0) ago 

Two trillion dollars of bullshit.

The fed has the power to essentially buy stocks with unlimited funds.

Of course the market went up.

Unfortunately not far down the logical chain of consequences is a $100 loaf of bread.

USA is now the Wiemar Republic.