Futures are currently open and locked limit down for the - who knows how many times?
A few minutes ago I let loose a tweetstorm that is burning up Twitter.
I’m going to post it here, and I really want to hear what your thinking is on this topic
Am I right? Wrong? And if so, tell me where.
Dive in, you know you’ve got the time.
There’s no way we can sustain an economic lockdown past 30 days. That’s when people start to miss rent. All the people now renting out of the 2007-2008 crisis.
So then you have two options. The first is that the government declares you can’t evict people.
In that scenario...
The real estate companies that own all the apartment buildings, complexes, & commercial spaces will not be able to service their debt and will default.
This will be a default on the scale like we’ve never seen that will threaten the structural fabric of the economy.
These banks will then no lend, which will kill and an already crippled economy.
The other scenario in which you allow them to evict people is even worse. First off, they won’t be able to re-rent those apartments and business spaces.
And what about the people they evict? We will have millions of new homeless with no prospects for jobs or healthcare.
The fact of the matter is, the government cannot support our whole economy for more than a short time.
It can support whole industries, like the financial industry, or the airlines, but not the whole economy - no matter how much stimulus they provide.
So the reality is, we’re going to have to open things back up, let people go back to work, and to life.
And we’ll devote lots of money and resources to the healthcare industry to help them deal with those who get sick.
That’s the only way we won’t kill our economy.
And our society along with it!