Oh By The Way...

[Sunstone]

If you read the financial or economic news these days, so much of it is focused on what the world's stock markets are doing in response to the coronovirus. However, the stock markets might not be the biggest story that can be legitimately associated with the economic impact of the virus. Looming just around the corner is the prospect of what the virus might mean in economic terms to the masses of people.

For instance, over 40% of Americans would find it extremely difficult to meet an out-of-the-blue $400 expense. Four hundred dollars is peanuts, but over 40% of Americans would be incapable of coming up with such a small sum of money without borrowing it from friends, family, or institutions. Now given that fact, reflect for a moment on what it will mean to those people if they -- or a breadwinner in their family -- are put out of work for even just a few days by the virus. Then multiply that effect millions of times. Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

For decades now, the performance of the stock markets have been decoupled from the economic well-being of average people to a surprising degree. But this virus threatens to have consequences that could rival major moves in the markets, such as the 2008 Great Recession. Movements of that size affect even ordinary people.





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And now, a tune...

 

[ChristineM]

$400 is peanuts but for a family would that cost multiply for each family member?

 

[Sunstone]

$400 is peanuts but for a family would that cost multiply for each family member?

Nope. That figure is based on a Harvard study that found a bit over 40% of American families could not meet a $400 expense on their own. In other words, they don't have the savings or the credit lines to come up with $400 as a family. They would have to sell their furniture, borrow from maiden aunts, beg for advances from their bosses, or whatnot to come up with the money.

Now think what that means. If a family has three breadwinners -- the father, the mother, and the oldest kid -- and one of those three is off work for a week with the virus... well, that's $400 right there, and maybe more than $400.

This virus could result in a whole lot of water, gas, and electric shut-offs, repossessed cars, even evictions. Let's hope it does not, but it has that potential.

 

[Terry Sampson]

Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

Time to get a gun for defense?

 

[Sunstone]

To help you visualize the economics involved for so many Americans, imagine this hypothetical situation:

Five year old is sent home from daycare with the virus. Now mom has to take off days from work to nurse kid at home. She comes down with the virus and that adds a few extra days to her time off work. Then dad comes down with the virus, and he too must take time off. Now the rent is due along with the utility bill, the car payment, etc. And just ahead, the unexpected medical bills. It's going to take that family a lot of effort and outside help to dig themselves out of that situation. And I'm not even talking a worse case here. For instance, no one has died in my example.

 

[Sunstone]

Time to get a gun for defense?

That would be the American Way.

 

[Kenny]

If you read the financial or economic news these days, so much of it is focused on what the world's stock markets are doing in response to the coronovirus. However, the stock markets might not be the biggest story that can be legitimately associated with the economic impact of the virus. Looming just around the corner is the prospect of what the virus might mean in economic terms to the masses of people.

For instance, over 40% of Americans would find it extremely difficult to meet an out-of-the-blue $400 expense. Four hundred dollars is peanuts, but over 40% of Americans would be incapable of coming up with such a small sum of money without borrowing it from friends, family, or institutions. Now given that fact, reflect for a moment on what it will mean to those people if they -- or a breadwinner in their family -- are put out of work for even just a few days by the virus. Then multiply that effect millions of times. Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

For decades now, the performance of the stock markets have been decoupled from the economic well-being of average people to a surprising degree. But this virus threatens to have consequences that could rival major moves in the markets, such as the 2008 Great Recession. Movements of that size affect even ordinary people.





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And now, a tune...

They might have to stop going out to eat 2 times a week
They might have to subtract their 250 channel internet TV and just stay with internet
They might have to not upgrade to I-phone 11
They might have to bag their lunch

THEY MIGHT HAVE TO MAKE A BUDGET AS ONLY 32% HAVE ONE - and those who do have one, can handle a $400 unexpected charge.

 

[Thief]

If you read the financial or economic news these days, so much of it is focused on what the world's stock markets are doing in response to the coronovirus. However, the stock markets might not be the biggest story that can be legitimately associated with the economic impact of the virus. Looming just around the corner is the prospect of what the virus might mean in economic terms to the masses of people.

For instance, over 40% of Americans would find it extremely difficult to meet an out-of-the-blue $400 expense. Four hundred dollars is peanuts, but over 40% of Americans would be incapable of coming up with such a small sum of money without borrowing it from friends, family, or institutions. Now given that fact, reflect for a moment on what it will mean to those people if they -- or a breadwinner in their family -- are put out of work for even just a few days by the virus. Then multiply that effect millions of times. Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

For decades now, the performance of the stock markets have been decoupled from the economic well-being of average people to a surprising degree. But this virus threatens to have consequences that could rival major moves in the markets, such as the 2008 Great Recession. Movements of that size affect even ordinary people.





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And now, a tune...

just an hour ago....a radio news report.......
16million Italians are under a no travel order
2/3 of the GNP is under shut down
4wks minimum

oh oh

 

[Laika]

If you read the financial or economic news these days, so much of it is focused on what the world's stock markets are doing in response to the coronovirus. However, the stock markets might not be the biggest story that can be legitimately associated with the economic impact of the virus. Looming just around the corner is the prospect of what the virus might mean in economic terms to the masses of people.

For instance, over 40% of Americans would find it extremely difficult to meet an out-of-the-blue $400 expense. Four hundred dollars is peanuts, but over 40% of Americans would be incapable of coming up with such a small sum of money without borrowing it from friends, family, or institutions. Now given that fact, reflect for a moment on what it will mean to those people if they -- or a breadwinner in their family -- are put out of work for even just a few days by the virus. Then multiply that effect millions of times. Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

For decades now, the performance of the stock markets have been decoupled from the economic well-being of average people to a surprising degree. But this virus threatens to have consequences that could rival major moves in the markets, such as the 2008 Great Recession. Movements of that size affect even ordinary people.





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And now, a tune...

So we get Plague AND Poverty?

Wow!

We really are spoiled for choice aren't we?

 

[Valjean]

That would be the American Way.

Of course the gun could well cost $400.

 

[pearl]

Added to all this is the situation of those who are under a mandatory unpaid leave.

 

[Quintessence]

I've mostly been ignoring a lot of the hullabaloo about this, but there was one interesting opinion piece I ran across the other day. One of the reasons why America in particular is ill-equipped to handle these sorts of things is because we have very weak workers rights right now. Specifically, paid time off and sick leave are not universal. They should be. Especially since the groups who are most vulnerable financially - those in the service sector working hourly wages - lack this basic right. If they get sick and don't work, they don't get paid and they're among those who can least afford to not get paid.

If Congress actually wants to deliver a meaningful spending package to help with this, something like universal basic income or requiring all employers to provide two weeks paid time off or sick leave would go a long way.

 

[Howard Is]

just an hour ago....a radio news report.......
16million Italians are under a no travel order
2/3 of the GNP is under shut down
4wks minimum

oh oh

Italy coronavirus: Italians who attempt to flee lockdown may face jail - CNN

Opinion | This Is Life Under Lockdown in Italy

 

[sun rise]

That almost forgotten prophet of this age sang this:

 

[exchemist]

If you read the financial or economic news these days, so much of it is focused on what the world's stock markets are doing in response to the coronovirus. However, the stock markets might not be the biggest story that can be legitimately associated with the economic impact of the virus. Looming just around the corner is the prospect of what the virus might mean in economic terms to the masses of people.

For instance, over 40% of Americans would find it extremely difficult to meet an out-of-the-blue $400 expense. Four hundred dollars is peanuts, but over 40% of Americans would be incapable of coming up with such a small sum of money without borrowing it from friends, family, or institutions. Now given that fact, reflect for a moment on what it will mean to those people if they -- or a breadwinner in their family -- are put out of work for even just a few days by the virus. Then multiply that effect millions of times. Perhaps you can get a sense or feel for what could -- for most people -- be the economic costs of the virus.

For decades now, the performance of the stock markets have been decoupled from the economic well-being of average people to a surprising degree. But this virus threatens to have consequences that could rival major moves in the markets, such as the 2008 Great Recession. Movements of that size affect even ordinary people.





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And now, a tune...

Can you cite a reference to the source of this? I can't help thinking something here is out of context.

I can easily imagine 40% of US citizens run a current account with <$400 in it, so they'd go overdrawn for a bit if they had an expense on the car or something. Or that 40% of the whole US population (including children, students and others who are not economically active) could be in this position. But I struggle to believe that 40% of the economically active population could not meet an unexpected expense of $400.

 

[Quintessence]

But I struggle to believe that 40% of the economically active population could not meet an unexpected expense of $400.

I don't.

I have a few working class friends - folks who are on hourly wages who get no paid time off. They would all meet this criteria. They live paycheck to paycheck. I also work at a university and interact with college-aged students. Many of them are in the same position; I have lost count of how many conversations I've had where financial strain has compromised their academics... or caused them to drop out entirely.

This is what happens when massive wealth inequality becomes not only pervasive, but endorsed by one party that is allowed to control your national government. Consider that the national poverty rate in this country is roughly around 10%. One in ten people living in poverty. One in ten! I mean, seriously?

 

[Revoltingest]

I've long thought that the stock market
is a poor measure of economic health.
But it's easy to measure.

Reminds me of an old joke.....
@BSM1 is looking on the ground under a lamp post.
Jim: What are you looking for?
BSM1: A quarter I dropped.
Jim: Where did you drop it?
BSM1: Over there.
Jim: Why look for it here?
BSM1: The light is better.

 

[BSM1]

I've long thought that the stock market
is a poor measure of economic health.
But it's easy to measure.

Reminds me of an old joke.....
@BSM1 is looking on the ground under a lamp post.
Jim: What are you looking for?
BSM1: A quarter I dropped.
Jim: Where did you drop it?
BSM1: Over there.
Jim: Why look for it here?
BSM1: The light is better.

That's funny....I don't care what you put on your grits...

 

[Twilight Hue]

In the meantime, some smart people can put some sanity into all the madness.

How does the new coronavirus compare with the flu? | Live Science

 

[Revoltingest]

In the meantime, some smart people can put some sanity into all the madness.

How does the new coronavirus compare with the flu? | Live Science

More important...
Mrs Revolt & I are planning to buy some stocks.
Guesstimating which offer rock bottom prices
poised to recover is the tough part.