Debate House Prices
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It’s different this time
240 Posts
It is. Bailouts won't fix this. Chris Duane introduced me many years ago to the idea that next time the debt-based fiat system broke, it would be something that physically broke in the real world.
This virus shock is that physical thing.
We have so many moving parts here now in our complex financialization of the real economy, that it's done and not coming back from this in it's current form. Something else will be born, but this thing is done.
a) demand destruction
b) supply destruction
c) debt defaults will cascade
Importantly, American oil companies are going broke. However, it's not just oil. It's everything.
There is no clear bail out or even series of bailouts that can save all of it. There's too many things that will break now.
I'm interested in your feedback. I see this as the physical thing that's different than a single conceptual thing that can be targeted. The collapse this time is going to be broad, deep, physical, and it's everything this time.
This virus shock is that physical thing.
We have so many moving parts here now in our complex financialization of the real economy, that it's done and not coming back from this in it's current form. Something else will be born, but this thing is done.
a) demand destruction
b) supply destruction
c) debt defaults will cascade
Importantly, American oil companies are going broke. However, it's not just oil. It's everything.
There is no clear bail out or even series of bailouts that can save all of it. There's too many things that will break now.
I'm interested in your feedback. I see this as the physical thing that's different than a single conceptual thing that can be targeted. The collapse this time is going to be broad, deep, physical, and it's everything this time.
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Silver ramper believes an even more OCD silver ramper.
"Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
I can see some companies going out of business and job losses, are you suggesting some kind of foundation change to how the financial system operates?
Could you be more specific?
I would argue at worst there could be recession before the markets pick up again...
"Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
this is what is meant by the end of the temporary debt based system and have another new international monetary system to replace the old one
It’s not the pandemic that is the biggest problem it is the panic
https://youtu.be/nhasaUDJSO8