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am not a prepper or gun owner.
I like you Wookie, but you are completely wrong on this and more than a tad hysterical.
Shitloads of businesses are going to go under if this response isn't recalibrated. And it likely won't be.
“They are throwing money in the wrong place,” Bair said of an unprecedented move by the Fed on Sunday to slash benchmark rates to zero and start a $700 billion Treasury- and mortgage-bond buying program.
“This isn’t a financial crisis — at least not yet,” she told MarketWatch on Sunday evening following the Fed’s announcement, which drops the target U.S. benchmark rate to zero and aims to shore up liquidity for banks and investors in the $15.6 trillion Treasury and $8.5 trillion agency mortgage bonds markets.
“Lowering interest rates to zero doesn’t help if businesses can’t pay their loans back and they don’t have cash flow,” she said. “We need to get help out there, especially to small businesses and people already losing their jobs.”
WookieMan saysam not a prepper or gun owner.
There is no excuse for the latter. What's wrong with you?
WookieMan saysShitloads of businesses are going to go under if this response isn't recalibrated. And it likely won't be.
https://www.marketwatch.com/story/guid/ca4c0226-6713-11ea-9596-8a889527719f“They are throwing money in the wrong place,” Bair said of an unprecedented move by the Fed on Sunday to slash benchmark rates to zero and start a $700 billion Treasury- and mortgage-bond buying program.
“This isn’t a financial crisis — at least not yet,” she told MarketWatch on Sunday evening following the Fed’s announcement, which drops the target U.S. benchmark rate to zero and aims to shore up liquidity for banks and investors in the $15.6 trillion Treasury and $8.5 trillion agency mortgage bonds markets.
“Lowering interest rates to zero doesn’t help if businesses can’...
It's a cashflow crisis that turns into a financial crisis. Just not right away.
I think I've said it here, my cruise cancelled. I can get a future cruise credit worth 125% of the purchase price or a 100% cash refund. Guess what, can't request the refund until March 23. I don't think they have the cash on hand to manage this along with all the people cancelling 60-120 days out where they already have their cash. It's a ponzi scheme in essence and now that the future cruisers are bailing, they don't have the cash to reimburse. I hope I'm wrong.
Remember, this is spring break time people. Summer is a long period, but besides X-mas, spring break is probably #2 or 3 for jacking up prices and making huge $$$$. Airlines and travel industry is getting fucking smashed. Then domino it down to the local economies of rental cars, Ubers, restaurants, hotels, etc. and shit ain't good.
Also, it’s possible that the United States and other governments are well aware of this, they eventually figured it out, and that’s why there is such an extreme reaction by the governments of the world to try to contain it, and they are trying to prevent panic by covering up the actual death toll in China.
Slightly off the current topic. But, china had massive outbreak in a country of 1 billion with a delayed containment effort. They claim only somewhere around 70,000 cases, 3000 deaths in their country. Italy is already up to around 1000 in a few weeks, Iran is close, the death rates in other countries seem to be advancing pretty fast. Doesn’t it seem hard to believe China only had 3000 deaths in their country. The level of reaction in their country, the extent of the clamp down, all suggest that it was a much more serious situation than 3000 deaths. Seems to me this is much more deadly than China has admitted and the uninformed populations of the world are starting to find out right now. I don’t want this to be true at all. But the numbers in China don’t make sense based on what’s happened since it left China. Also, it’s possible that the United States and other governments are well aware of this, they eventually figured it out, and that’s why there is such an extreme reaction by the g...
PaisleyPattern saysSlightly off the current topic. But, china had massive outbreak in a country of 1 billion with a delayed containment effort. They claim only somewhere around 70,000 cases, 3000 deaths in their country. Italy is already up to around 1000 in a few weeks, Iran is close, the death rates in other countries seem to be advancing pretty fast. Doesn’t it seem hard to believe China only had 3000 deaths in their country. The level of reaction in their country, the extent of the clamp down, all suggest that it was a much more serious situation than 3000 deaths. Seems to me this is much more deadly than China has admitted and the uninformed populations of the world are starting to find out right now. I don’t want this to be true at all. But the numbers in China don’t make sense based on what’s happened since it left China. Also, it’s possible that the United States and other governments are well aware of this...
Well, I hope you’re right , I’m not immune to tinfoil type thoughts. I still don’t really understand why China would’ve reacted so extremely and threatened their whole economic stability over a disease that eventually only killed 3000 people. It’s possible that they realized it could’ve had a much greater impact I suppose and they stopped it in time.
mell saysPaisleyPattern saysSlightly off the current topic. But, china had massive outbreak in a country of 1 billion with a delayed containment effort. They claim only somewhere around 70,000 cases, 3000 deaths in their country. Italy is already up to around 1000 in a few weeks, Iran is close, the death rates in other countries seem to be advancing pretty fast. Doesn’t it seem hard to believe China only had 3000 deaths in their country. The level of reaction in their country, the extent of the clamp down, all suggest that it was a much more serious situation than 3000 deaths. Seems to me this is much more deadly than China has admitted and the uninformed populations of the world are starting to find out right now. I don’t want this to be true at all. But the numbers in China don’t make sense based on what’s happened since it left China. Also, ...
For them with so much pollution and so many smokers the fallout would have been unbearable, losing factory workers en masse. So a hard curfew / lockdown for a few weeks was a good decision on their part. It will work in Italy and Spain as well now that people can't go out at all and can only be in numbers of two at the grocery store at the same time and are only allowed to leave house for emergencies and groceries. This is a serious illness mainly due to its high R0 so of you want to save your elderly and prevent spread these measures are necessary. Wookie is right though if you would toss morals aside it would prob be better for the youth to keep running the country and quarantine the old instead. We're sort of doing the opposite. Either way the measures enacted by many states will slow the spread.
PaisleyPattern saysmell saysPaisleyPattern saysSlightly off the current topic. But, china had massive outbreak in a country of 1 billion with a delayed containment effort. They claim only somewhere around 70,000 cases, 3000 deaths in their country. Italy is already up to around 1000 in a few weeks, Iran is close, the death rates in other countries seem to be advancing pretty fast. Doesn’t it seem hard to believe China only had 3000 deaths in their country. The level of reaction in their country, the extent of the clamp down, all suggest that it was a much more serious situation than 3000 deaths. Seems to me this is much more deadly than China has admitted and the uninformed populations of the world are starting to find out right now. I don’t want this to be true at all. But...
As I understand it, the current approach by the CDC in the US is to slow the spread of the virus so that the number of cases won’t overwhelm our healthcare capacity. The CDC is assuming that there is no way no way prevent the eventual exposure of the entire population to the virus, with the eventual infection of 40 to 70% of the population.
Their goal is just to slow it down so that there will be smaller numbers of sick people in the healthcare system at any given time, and also this will give the pharmaceutical companies time to develop treatments , and possibly a vaccine, and to build up medical supplies and devices which will be necessary to handle the number of sick and dying people. Even if only 50% of the country eventually gets infected, that would mean more than two million deaths.That sounds pretty substantial to me. No one in the CDC is claiming that we will be able to prevent widespread infection.
Do you still think that the fatalities are going to be minor, but that that the economic consequences of the over reaction will be the real problem?
3/ the extreme reactions by governments, especially the United States, now, to try to control it.
china had massive outbreak in a country of 1 billion
PaisleyPattern sayschina had massive outbreak in a country of 1 billion
https://en.m.wikipedia.org/wiki/Demographics_of_China
Population 1,427,647,786 (2018 data)
Italy is now close to 2000 in only a few weeks.
PaisleyPattern saysDo you still think that the fatalities are going to be minor, but that that the economic consequences of the over reaction will be the real problem?
I haven't really cared about the fatalities in all honesty. In the grand scheme of world population, it's not going to be a big deal at all.
The economic consequences will most certainly kill more people. I still think we're overreacting 100%. But, at this point if we're going to overreact let's go full retard I guess is my point of view in the timeline of events, hence my change of tone in the last 24 hours.
I also don't have much choice as the reaction is government mandated. Starting tomorrow I cannot go have lunch at a bar here in IL. Have a flight scheduled for Saturday, but realistically know that it's going to be cancelled and have decent info that domestic air is going to be grounded.
Paisley responds:
My concern is that China’s reaction, which was extreme, is an indication of the true nature of the risks and fatalities of this virus. Similarly, our countries reaction, which really is unprecedented and immense is also indicative of our governments knowledge of the actual infectiousness and likely fatalities and impact on our healthcare system and our society in general. I think the government isn’t telling us the truth.
If you assume this is much worse than our government is telling us, then China’s reaction, and our country’s reaction makes sense, and it isn’t an overreaction, it’s an appropriate reaction to a scenario that they are keeping from the public to prevent widespread panic.
I’ve already been accused of tinfoil thinking, and that is fair enough, I am suggesting
the US government is perpetrating a massive cover-up on our population, it wouldn’t be the first time, and I’m sure it would be justified by the goal of preventing panic.
PaisleyPattern saysItaly is now close to 2000 in only a few weeks.
Italy is different from the US or China.
Italy has open borders.
Italy has an unusually large elderly population.
Italy seems to have flu issues in other years as well:
https://www.thelocal.it/20180119/italy-worst-flu-season-in-14-years
2018 was an unusually bad year everywhere, even in the US, but nobody made a big deal about it:
https://www.breitbart.com/politics/2018/10/02/flu-season-arrives-after-highest-death-rate-in-four-decades-80000-estimated/
PaisleyPattern says3/ the extreme reactions by governments, especially the United States, now, to try to control it.
In an overly litigious society, one should not be surprised at an over reaction.
What I've been saying.... https://www.nbcnews.com/health/health-news/social-distancing-could-have-devastating-effect-people-depression-n1157871
Gonna kill more through our reaction. But hey.... old people.
My hope is that the containment will work quickly and paired with the warmer weather we can lift it sometime in April. The growth rate in the US is by far not what Italy had, despite alarmist articles.
Has there been evidence though that it will slow with warmer weather? Not saying it won't, I just don't know.
Has there been evidence though that it will slow with warmer weather? Not saying it won't, I just don't know.
mell saysMy hope is that the containment will work quickly and paired with the warmer weather we can lift it sometime in April. The growth rate in the US is by far not what Italy had, despite alarmist articles.
Has there been evidence though that it will slow with warmer weather? Not saying it won't, I just don't know. If things go back to "normal" in June and the numbers ramp up, it's going to be hard to tell. And then does everyone hunker down again? If the economy takes a quarter off, I really don't see what the government can do. It will be a disaster.
I'm not worried about the growth rate here in the states for CV-19 besides the coastal cities (LA, SF, NYC, MIAMI, etc) and Chicago and Houston. I know there are other large cities, but the US is no where near as densely populated as Italy. Throw in open borders, age and a higher smoking rate and Italy is a bad place for this virus to be.
50% of Americans will contract the virus (150m people) as it's very communicable. This is on a par with the common cold (Rhinovirus) of which there are about 200 strains and which the majority of Americans will get 2-4 per year.
70% of Germany will contract it (58M people). This is the next most relevant industrial economy to be effected.
Peak-virus is expected over the next eight weeks, declining thereafter.
The virus appears to be concentrated in a band between 30-50 degrees north latitude, meaning that like the common cold and flu, it prefers cold weather. The coming summer in the northern hemisphere should help. This is to say that the virus is likely seasonal.
Of those impacted 80% will be early-stage, 15% mid-stage and 5% critical-stage. Early-stage symptoms are like the common cold and mid-stage symptoms are like the flu; these are stay at home for two weeks and rest. 5% will be critical and highly weighted towards the elderly.
Mortality rate on average of up to 2%, heavily weight towards the elderly and immunocompromised; meaning up to 3m people (150m*.02). In the US about 3m/yr die mostly due to old age and disease, those two being highly correlated (as a percent very few from accidents). There will be significant overlap, so this does not mean 3m new deaths from the virus, it means elderly people dying sooner due to respiratory issues. This may however stress the healthcare system.
There is a debate as to how to address the virus pre-vaccine. The US is tending towards quarantine. The UK is tending towards allowing it to spread so that the population can develop a natural immunity. Quarantine is likely to be ineffective and result in significant economic damage but will slow the rate of transmission giving the healthcare system more time to deal with the case load.
China’s economy has been largely impacted which has affected raw materials and the global supply chain. It may take up to six months for it to recover.
Global GDP growth rate will be the lowest in 30 years at around 2%.
S&P 500 will see a negative growth rate of -15% to -20% for 2020 overall.
There will be economic damage from the virus itself, but the real damage is driven mostly by market psychology. Viruses have been with us forever. Stock markets should fully recover in the 2nd half of the year.
In the past week there has been a conflating of the impact of the virus with the developing oil price war between KSA and Russia. While reduced energy prices are generally good for industrial economies, the US is now a large energy exporter, so there has been a negative impact on the valuation of the domestic energy sector. This will continue for some time as the Russians are attempting to economically squeeze the American shale producers and the Saudi’s are caught in the middle and do not want to further cede market share to Russia or the US.
Technically the market generally has been looking for a reason to reset after the longest bull market in history.
There is NO systemic risk. No one is even talking about that. Governments are intervening in the markets to stabilize them, and the private banking sector is very well capitalized. It feels more like 9/11 than it does like 2008.
50% of Americans will contract the virus (150m people) as it's very communicable.
Not sure about the 50%, but it's possible if the virus is really super-infectious. People have to go out and get food and bring it home, etc.
Also unclear: several sites say that the virus is spread mostly by asymptomatic people. How though? If they are not coughing, it is just about what they touch? Or does mere breathing spread it?
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