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   #266  

Uwe

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https://www.marketwatch.com/amp/story/guid/9279A958-8E45-11EA-AD06-F36B40BB8290
Biotechnology experts who understand both science and investing are skeptical of the stock market’s strength
IMO: There's no way that the upcoming tsunami of bankruptcies has been priced in, nor the additional wave of people who will get laid off. The latter have been kept on the payroll at various places like airlines due to the bailouts packages that required them to not to be laid off, but those packages all have expiration dates...

-Uwe-
 
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DV52

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^ ^^ Jack: from your link
Last month, Virgin Australia collapsed after failing to obtain a government bailout. In March, UK budget carrier Flybe entered administration, saying its financial challenges were too great to withstand in the context of the pandemic.
Whilst I've no doubt that Virgin Australia's collapse (it didn't go bankrupt- it went into receivership) was impacted by the COVID pandemic, it was on a fairly shaky financial footing before the emergence of the virus.

Yes, the pandemic is financially impactful on lots of businesses - but we have to be careful not to blame everything on COVID and we should acknowledge that some businesses have actually thrived in the pandemic (notwithstanding the likelihood of a pandemic initiated recession).

Don
 
   #270  

Jack@European_Parts

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Don,

Well sure someone has to win and lose, there are always the spoils too! :rolleyes:

The news on either side, only cares about negativity at this point, it's what draws in advertising dollars?
I'm sure companies in China and Worldwide, that make masks, gloves and medical industry equipment or pharmaceutical are having a record quarter and year!
 
   #271  

DV52

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^^^Jack: I agree 101%. Interesting post-pandemic results down here shows a big rise in revenue for supermarkets -likely due in part to panic buying, but also probably resulting from the fact that restaurants are no longer open for table service meals.

I'm aware that USA cuisine culture is more highly geared to eating-out, so I would not be surprised if the effect was even greater up there - or perhaps the home delivery market has negated this result?

Don
 
   #272  

Uwe

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I'm aware that USA cuisine culture is more highly geared to eating-out, so I would not be surprised if the effect was even greater up there - or perhaps the home delivery market has negated this result?
I haven't looked at the supermarket chains' results, but I have no doubt that they're doing well. All the home delivery services for groceries that I'm familiar with buy from a local supermarket, so there's no negative effect on supermarkets as a result of such services.

However, increased sales at supermarkets can't make up for lost sales in other sectors of the economy.

-Uwe-
 
   #274  

DV52

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However, increased sales at supermarkets can't make up for lost sales in other sectors of the economy.

-Uwe-
Uwe: yep - I most certainly wasn't suggesting that the imminent economic recession (world-wide) would be countered by the supermarket led increase in sales !:)

Having an electricity background - I liken the current economic situation akin to a +12 Volt battery that was reasonably charged at the onset of the COVID pandemic.

With the isolation measures that Governments implemented, the charging facilities for the battery were removed and the battery started to drain. Various attempts to replenish charge have been tried via different fiscal stimulus measures - but to date, world economies have largely relied on battery capacity that has been borrowed from the pre-pandemic era.

Notwithstanding the fledgling measures to release COVID restrictions in various countries, I suspect that we will ALL be relying on borrowed (pre-pandemic) charge for quite some time yet.

I just hope that there is sufficient (pre-pandemic) capacity in the battery to support what will be a long economic recovery period and that the battery condition is still viable in a post-pandemic environment. Because the one immutable rule the even COVID can't change is that borrowed charge MUST be re-paid (with interest)!!

Don
 
   #275  

Uwe

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Because the one immutable rule the even COVID can't change is that borrowed charge MUST be re-paid (with interest)!!
Yeah, about that...

This is the US Federal Government's cash flow for the month of April:



I am rarely without words, but this is one of those occasions.

-Uwe-
 
   #276  

Jack@European_Parts

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I'm not, it's called insolvency, are you ready to rumble with hyper diaper inflation, because it's a big load?
 
   #277  

Uwe

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are you ready to rumble with hyper diaper inflation
I'm not sure. The upcoming tsunami of bankruptcies will destroy a huge amount of credit money, which will likely have counteracting effect, at least for a while. Which raises the age-old question: Will things end in fire or ice?

-Uwe-
 
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