Covid-19 Economic Impact

[bucktalk]

The negative financial impact of Covid-19, both local and national, is going to be unlike anything we've seen in a very long time. I can't but wonder will mortgage companies, utilities, insurance (or other high monthly expenses) will a grace period be extended as needed?

I can imagine a food server or hotel worker having their work hours curtailed drastically which will hurt their pocketbook. The idea of 'work from home' does not apply to a large portion of the work force.

I hope a grace period for high monthly expenses will be provided as needed.

Your thoughts?

[TheTravellers]

The negative financial impact of Covid-19, both local and national, is going to be unlike anything we've seen in a very long time. I can't but wonder will mortgage companies, utilities, insurance (or other high monthly expenses) will a grace period be extended as needed?

I can imagine a food server or hotel worker having their work hours curtailed drastically which will hurt their pocketbook. The idea of 'work from home' does not apply to a large portion of the work force.

I hope a grace period for high monthly expenses will be provided as needed.

Your thoughts?

Lots of people are going to lose their cars, their apartments, their houses, their businesses, etc. unless everybody allows a grace period for everything. There are so many millions living on the edge, paycheck to paycheck, if not day-to-day or underwater, it's going to be horrible for this country.

[mugofbeer]

I think this may be in the works from most large companies. An economy has so many working parts that a massive disruption like this will definitely be a major change to our lives for a while. Just remember, not all payment receiving businesses are huge, massively profitable businesses so there certainly may be hardship for a few weeks.

Along with "encouragement" from the Feds for all payment oriented firms to work with customers, the Feds should also postpone the normal April 15 tax deadline to something like August 1 or September 1.

I read an article that the virus doesn't transmit as easily in hot environments is promising for a summer slowdown. If this happens and the spread slows, the economy will come back. How quick a recovery and how much of one is unknown.

[d-usa]

Disney World is closing...

[bucktalk]

Hopefully this ordeal will be a quick turn around. I was self employed for 20 years and I know the unique challenges with finances and being self employed. As a result I have a lot of empathy for those who are in the labor market where their income is based on tips, weather interruptions and other obstacles which prevent steady income. I hope some financial grace can be extended to those who will most assuredly need it.

[Pete]

^

At the same time, it's going to be hard for many small businesses to keep paying their employees when revenues are sharply down.

[bucktalk]

Very true. When I had slow down turns when I was self employed I had to dig really deep in order to pay my employees who needed the business to sustain them. But luckily the down turn only lasted a week or so. This situation could have much longer duration of financial lose.

^

At the same time, it's going to be hard for many small businesses to keep paying their employees when revenues are sharply down.

[CloudDeckMedia]

Treasury Secretary Mnuchin said this morning that banks will be provided as much liquidity as necessary - that should help with the upcoming wave of consumer debt payment defaults. The package being negotiated with Congress includes extended unemployment benefits (“gig” worker coverage is unknown), waiving work requirements for food aid, $45 billion in Medicaid funds to states (how would that work in Oklahoma?). Unknown about student loan repayment abatement. More details of the package will be known as the day goes on.

[Plutonic Panda]

The DOW has jumped backed up 1200 points so far.

[TheTravellers]

Treasury Secretary Mnuchin said this morning that banks will be provided as much liquidity as necessary - that should help with the upcoming wave of consumer debt payment defaults. The package being negotiated with Congress includes extended unemployment benefits (“gig” worker coverage is unknown), waiving work requirements for food aid, $45 billion in Medicaid funds to states (how would that work in Oklahoma?). Unknown about student loan repayment abatement. More details of the package will be known as the day goes on.

Paid sick leave, paid sick leave, paid sick leave, paid sick leave........... I know that's (almost) impossible to implement right now, but I'm guessing we'll see how badly we (by "we", I mean collective America, I've personally thought we've needed it for decades) need it after this runs its course.

[Pete]

The DOW has jumped backed up 1200 points so far.

Gains are now less than 500 and dropping.

[Plutonic Panda]

Gains are now less than 500 and dropping.

Damn. Was hoping for a rebound.

[catch22]

https://www.cnn.com/world/live-news/...5511561cba7c39

Delta to cut capacity by 40%, park 300 airplanes. This is just the beginning.

[Pete]

There are going to be tons of layoffs.

The question becomes how does the government help these businesses and the people without jobs?

[mugofbeer]

Back up over 800 but waiting on the Trump State of Emergency speech. Should also include some cooperation between Pelosi and Mnuchin.

[Mr. Blue Sky]

This will take massive infusion of federal money to prop up and keep this economy from collapsing. The double-edged sword is the deficits and accumulation of debt. So much uncertainty.

[TheTravellers]

This will take massive infusion of federal money to prop up and keep this economy from collapsing. The double-edged sword is the deficits and accumulation of debt. So much uncertainty.

Oh, absolutely, recession here we come, hope it's not too bad, but it's probably going to be global.

[jn1780]

Market closed up big today, but its going to be a long weekend with probably all sorts of news coming from Europe.

[rte66man]

I watched the speech on a station with the Dow and S&P in a letterbox. Once it became clear that EVERYONE is pitching in to get tests quicker and easily available, get testing results more quickly,and the like, the market started climbing. Investors liked what they were hearing.

[Pete]

It's going to be very painful for 2-3 months and then hopefully the concerns will state to subside and we'll start heading the right direction again.

I'd rather just take the pain now then have this drag out for 6 months or so. There are many businesses that won't be able to hang on that long.

[catch22]

I'm really curious what the actual impact to the economy would be if we just stopped everything for 3 weeks. Financial markets, everything except for essential services such as electrical plants and water systems. After 3 weeks it would be just like turning the lights on at the office on Monday morning after a weekend.

Could the economy theoretically take a 3 week holiday? Provide a 1 month extension on all loans. If your loan matures on 6/2030, it now matures on 7/2030.

I don't think it could happen but I'd rather this be done with as quick as possible. Would the effects of that be better or worse than 3 months of financial ruin?

[Pete]

^

That's basically what has been done in Italy and it seems they've gotten on top of this thing.

Culturally and politically, that would never happen here.

[Edmond Hausfrau]

Bezos is probably in the best position to take a financial hit, and yet most of our $ will probably be going to him for streaming and digital content from homes.

[Pete]

Bezos is probably in the best position to take a financial hit, and yet most of our $ will probably be going to him for streaming and digital content from homes.

And of course, ordering all types of things online while we are social distancing.

[bucktalk]

These are uncharted waters for sure. But what if viruses become our new normal. How in the world could financial markets and John Q. Public endure so much uncertainty? I hope, hope, hope this ISN'T our new normal.