Bank of America: 58,000 small businesses ask for $6B in loans since 9 a.m

Re:Bank of America: 58,000 small businesses ask for $6B in l... by gumby on Friday April 03, 2020 @08:57PM (#22775329)

Many were probably running ok in steady state but will die due to all their customers vanishing (For endogenous reasons) unless something happens. And their employees will all become unemployed.

It’s the ultimate in liquidity shocks and is an otherwise uninsurable risk excerpt if the whole economynis used in an attempt to fight it. If I took your attitude where should people live: not in California where earthquakes are more likely than the average, nor the Midwest where tornadoes are, nor near an ocean where storms could happen, nor mountains where landslides can happen.

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Re:Bank of America: 58,000 small businesses ask for $6B in l... by 0x8BADF00D on Friday April 03, 2020 @10:24PM (#22775687)

> If I took your attitude where should people live: not in California where earthquakes are more likely than the average, nor the Midwest where tornadoes are, nor near an ocean where storms could happen, nor mountains where landslides can happen.

There are actuarial models that deal with these types of risks. The bigger risk for a bank is if your business model isn't sound.

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