McGrrr
Facetious
Keep politics out of this.
About me:
Economic activity is grinding to a halt and discretionary consumption will fall to zero. That consumption won't return soon either, as baby boomers (the wealthiest generation) just lost >25% of their pensions on the cusp of retirement age. Therefore, they won't retire... if they can help it. Younger generations are too poor to make up the shortfall. Corporate profits will suffer for years.
Supply chains have been disrupted and the banks are struggling to cope with a run on credit because companies don't trust each other nor their customers to pay them. Boeing drew down fully on its credit lines and other companies followed suit, thinking this to be the prudent thing to do. This is a bank run. The Fed has intervened and will continue to intervene. There will be widespread bankruptcies and redundancies.
Central banks around the world have limited head room to react as interest rates were already extremely low. We will witness government spending replace normal economic activity and this can only end badly.
This is serious. I'll participate in the discussion when I can, but I'm working long hours at the moment.
About me:
- Associate at an investment bank
- 10+ years in finance, ex-auditor
- FCCA, Economics BSc
Economic activity is grinding to a halt and discretionary consumption will fall to zero. That consumption won't return soon either, as baby boomers (the wealthiest generation) just lost >25% of their pensions on the cusp of retirement age. Therefore, they won't retire... if they can help it. Younger generations are too poor to make up the shortfall. Corporate profits will suffer for years.
Supply chains have been disrupted and the banks are struggling to cope with a run on credit because companies don't trust each other nor their customers to pay them. Boeing drew down fully on its credit lines and other companies followed suit, thinking this to be the prudent thing to do. This is a bank run. The Fed has intervened and will continue to intervene. There will be widespread bankruptcies and redundancies.
Central banks around the world have limited head room to react as interest rates were already extremely low. We will witness government spending replace normal economic activity and this can only end badly.
This is serious. I'll participate in the discussion when I can, but I'm working long hours at the moment.