[BostonCard]

The downstream impacts still matter. Think about housing and ability to collect rent. Commercial real estate that has been way over built is getting crushed. Main Street businesses aren't spending money on advertising. This is where the online ad companies make most of their money. I still don't think most people understand how bad the situation is. Mick seems to have some insight, however!


Let's not pretend the economy was healthy before this pandemic.  It wasn't.  It was built on debt and a supply-oriented mentality that relies on demand always materializing. When nobody has any savings and lives hand to mouth (not just many individuals, but many small businesses as well), any disruption is catastrophic. Many business owners already have their individual finances completely dedicated to them. You can say banks can lend them money because interest rates are so low, but who wants to take on additional risk in such uncertain times, or if banks will lend anyway?



It's not healthy have an entire economy crash if it can't handle being put on pause for two months. If you can't survive for two months without income, you couldn't afford to be operating as you did. Those who can't are mostly pushed over the ledge, no longer able to sustain themselves or ramp up again. Most people have no idea how difficult it is to start a business and keep it going without significant investment that is very difficult to obtain.

I don't disagree with anything you stated; I was just noting that the Wall Street (and specifically the stock market) has not been affected as much as Main Street, and that in part this was because the most vulnerable firms, the ones that are going to be completely wiped out by this tidal wave, are not listed firms on Wall Street.  There are, of course major exceptions, including the entire travel sector, large parts of the retail sector, and probably carmakers.  But while we will likely see a small business apocalypse, Fortune 500 companies will be hurt, but most will still be around on the other side.

BC

[BostonCard]

The downstream impacts still matter. Think about housing and ability to collect rent. Commercial real estate that has been way over built is getting crushed. Main Street businesses aren't spending money on advertising. This is where the online ad companies make most of their money. I still don't think most people understand how bad the situation is. Mick seems to have some insight, however!


Let's not pretend the economy was healthy before this pandemic.  It wasn't.  It was built on debt and a supply-oriented mentality that relies on demand always materializing. When nobody has any savings and lives hand to mouth (not just many individuals, but many small businesses as well), any disruption is catastrophic. Many business owners already have their individual finances completely dedicated to them. You can say banks can lend them money because interest rates are so low, but who wants to take on additional risk in such uncertain times, or if banks will lend anyway?



It's not healthy have an entire economy crash if it can't handle being put on pause for two months. If you can't survive for two months without income, you couldn't afford to be operating as you did. Those who can't are mostly pushed over the ledge, no longer able to sustain themselves or ramp up again. Most people have no idea how difficult it is to start a business and keep it going without significant investment that is very difficult to obtain.

I don't disagree with anything you stated; I was just noting that the Wall Street (and specifically the stock market) has not been affected as much as Main Street, and that in part this was because the most vulnerable firms, the ones that are going to be completely wiped out by this tidal wave, are not listed firms on Wall Street.  There are, of course major exceptions, including the entire travel sector, large parts of the retail sector, and probably carmakers.  But while we will likely see a small business apocalypse, Fortune 500 companies will be hurt, but most will still be around on the other side.

BC