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Originally Posted by Tcoat
So the guy that totally overinflates the possible death rate disregards the economic impact. Your politics shine through in everything.
I can not speak to other industries but for automotive this is not just going to "come and go". It isn't a matter of just eating into savings but a complete and total lack of cash flow. When the industry does start up again it will be with largely slashed work forces. Those that do get to come back are facing 20% and even 30% wage cuts for the next several years. The impact of this will be far reaching and completely change the industry.
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The death total was based on projections from scientists if people failed to take action. People took action. You can call it overinflation, but that would have been our reality. We prevented it.
You’re making a false comparison is what I’m saying. You’re using one metric to gauge the economy. I’m suggesting the 2008 recession, or we could talk about the depression, were based on deep seeded systemic problems in the financial structure. Someone could make an argument that there is subprime lending in the auto industry, high student loan debt and a more stable, but nevertheless, housing bubble that could cause investors to gain a loss in confidence in the midst of this pandemic, and those things could be problematic, but I think the situation is far less dire, and the end of the pandemic is a light at the end of the tunnel for investors.
The Dow gained 800 yesterday or something. We will see, but again, I believe the situations are false comparisons.