After The Virus - What Next?

[GRG55]

Re: After The Virus - What Next?

https://www.bloomberg.com/features/2...r-coronavirus/

[Techdread]

Re: After The Virus - What Next?

China Economy shrank a bit in the first Quarter.

I'm hearing from companies that the economic damage might not be as bad as they first thought.




https://www.bbc.co.uk/news/business-52319936

[charliebrown]

Re: After The Virus - What Next?

+1

I think there will be long term effects. More telecomuting, as management will realize we don't have to work in an office 8x5. What does this do to productivity in general.
Having to wear a mask, social distancing, staying home whenever you have the sniffels even if it isn't covid. And I do believe we work more efficiently when together, but
the commute really is a tremendous wast of time and energy.

The puffed up economy falls?
health care. It is just too expensive. Even if your employer is subsidising it, someone is still paying for it. 25k is the cost of a good not great family policy.
Some of the reasons is that many people get free health care by getting treatment and not being able to pay. Their costs are written off, and passed on to
the wealthy/insured. I had influenza in January, two chest x-rays, throat swab, 20 minutes of care was $1000.00 what ???

Schools??? Way to much money spent with too little results. Not just college, but public schools too. Will the E learning rethink palaces that are schools?
The grade system seems archaic. My wife teaches, and the difference between top and bottom kids in one grade is amazing. The good kids are held back
with distractions, and the lower kids are stressed out an not learning. College is a joke on how expensive it is. 25K for an in state school? We need
a college system that can provide a good education for minimum wage. Curriculum needs to me more tuned to careers. My degree was half fluff
that I never used.


Housing. The end of McMansions, and mortgaging yourself to the eyeballs. I am thankful that my home is small and paid off and I own my cars, in this environment.


Stocks? If we use Ghram/Dodd valuation, stocks are a claim on long term profits of a company. How with 20% unemployment, rapidly changing business
models, how can the current prices be justified? Before the crash, workforce growth was low, productivity was low, I can't see how these numbers don't go negative
for a year? two years. Currently stocks are priced for a greater fool theory (more and more buyers showing up and paying a higher p/e) rather the generic money creating ability.


How many jobs are not coming back? Or will come back over years? What happens to the 15, 12, 10% of the formerly employed whose jobs will not
be restored for years? America turns Japan. Massive public debt that can never be paid back out of taxes. If interest rates really do rise, interest
on the debt will be crushing.

What about the federal reserve? Have they over stepped their bounds? They are now buying corporate paper. Not in the their charter?
How much of that paper should just blow up? Have they just bailed out the wealthy bond holders with public money?

So many questions.

[Chris Coles]

Re: After The Virus - What Next?

https://www.bloomberg.com/features/2...r-coronavirus/

This is the only practical solution: James Galbraith

Professor of government at the University of Texas

There will be a vast tangle of unpaid debts that cannot be cleared, and—what is different from 2008 and 2009—the model of foreclosures, evictions, and repossessions to deal with them is going to be absolutely unacceptable. People sheltering at home without income are in no way responsible for their circumstances and will refuse to accept the terms of those contracts. So the contracts will have to be suspended, and the debts cleared away, or there will be a confrontation on a vast scale. This is similar to the farm foreclosure confrontations of the 1890s and 1930s in this country, but on a much larger scale, and in many cases urban and suburban. The right model is that of the treatment of inter-allied war debts after World War II: They were canceled, because dealing with the common enemy was a common effort. So the whole financial system will have to be reset. This is not an ideological point but a practical necessity for reestablishing a functioning economic system.