Quote:
Originally Posted by Sooner or later
This crash isn't due to debt levels.
If we had zero debt we would still be in deep chit.
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If the US debt levels were low to moderate there would be fear and loathing where Equities would be under pressure. BUT it would not be crashing down around our ears with daily panic selling.
During the 3 waves of the Spanish Flu in 1918 which infected 500M people or 27% of the worlds population and killed some 50M people which was 1.7% of the worlds population to put it into perspective. The impact on Equities was minimal...
https://www.globalfinancialdata.com/the-spanish-flu-and-the-stock-market-the-pandemic-of-1919/
"However, the impact of the Spanish Flu on the stock market was minimal"
The reason why we see massive panic selling is that the underlying anxiety about the economy which has existed since 08 has surfaced. Everybody knows that things are just not right since the crash of 08 and the CV is the catalyst for the panic. The worry is that on the back end of this virus the world economy will not be able to pick itself up again.