Re:Fed to buy junk bonds, lend to states in fresh virus support
by TheSpiceIsLife on Friday April 10, 2020 @12:13AM
(#22829914)
You write in very final terms: simply can’t; that lead to a financial one (as though the financial crisis isn’t real).
But seem to be overlooking @JumpCrisscross’ main thrust of: long after its cause had subsided ... after the infection has passed.
It seems reasonable to predict the current restrictions won’t exist in perpetuity.
Re:Fed to buy junk bonds, lend to states in fresh virus support
by jacobr1 on Friday April 10, 2020 @10:41AM
(#22833469)
> It seems reasonable to predict the current restrictions won’t exist in perpetuity.
And even if they do linger on for a long time (years) then businesses will also need sufficient liquidity to adapt to a new normal. Startups created to fulfill any new or newly important needs.
But the Great Depression was caused by a financial crisis, that led to a ‘real’ crisis. This is the opposite, a real crisis that will lead to a financial one.
And during the Great Depression, people could still have worked - if there were any jobs. This is not true now. People simply can’t work.
It’s all very well being able to get easy money, but if you can’t get any workers, you still can’t start a business.
A lot of money chasing fewer goods can only have one consequence in the long term.