Worst 2 day slide in 4 years. Market lost $1.7 trillion

[mnhtnbb]

in the last 2 days and it looks like another down day coming based on the futures markets this morning.

Last night Rachel had on Stephanie Ruhle. Uncertainty. The markets don't like uncertainty. And she pulled no punches. The people making the markets are Trump supporters and they know he's lying about coronavirus. That means they know the BS that is being spewed by him and Kudlow. That means uncertainty for the future and how much business may be affected by what could be a global pandemic.

Creates a big incentive to replace the orange one. He's destroyed our governmental ability to respond to a public health crisis, which is now, in turn, destroying the market.

I'm actually feeling optimistic that Republicans are about to learn the value of good government.

[lapfog_1]

1. actually there is some certainty driving this right now

their is certainty that the virus is not contained.

That implies that is many (if not all) industrialized countries there will be a loss of consumption of "things we don't have to buy right now"

That implies a huge interruption in the supply chain of almost everything.

Spending will decrease rapidly.

The economy is not driven by capital, or by labor, but by consumers... and the consumers everywhere in the world will most likely being staying home and not even thinking about ordering some shit from Amazon or something.

The certainty right now is that this could be a repeat of the Spanish Flu.

[Throck]

3. The world had the same fears for swine flu and avian flu.

Annual flu kills a number of people. This is just more virulent. With Spanish flu, treatment was arcane at best. The world is better prepared today.

[lapfog_1]

4. yes, the world is better prepared.

that's on the good side... on the bad side, the world is a *lot* more connected than it was 100 years ago... people travel... and they travel long distances like people a century ago used to "take a trip to town". Also, we are not nearly as self reliant or rural as we used to be... giving the virus (any virus) more opportunity to spread.

I hope the better technology and knowledge outweigh the connectedness and the interactions and global supply chain.

So far, I would say 50/50. Let's see if the death count goes over 250,000 in the next 3 months (we are at 2700 officially right now).

Oh, the guy form the NIH says a vaccine is likely 1 year away (best case).

[Throck]

10. Ironically I'm sitting here sneezing at my keyboard.

Co-workers leave me alone!

Purell in my coffee!

[lapfog_1]

11. yeah, I jusy got over a nasty flu bug

I've been avoiding work for like 6 weeks.

Finally getting to the occasional monring cough phase...

I can WFH so there is a huge plus... but people are starting to wonder where I am..

[duforsure]

2. trumps actions hurting controlling this virus

And hurting the economy for his re-election is what he's worried about , and why he just brushed it off as not a threat now , claiming its under control is a bold face lie from trump. He knows if he accepts the truth about it , it puts him in re-election jeopardy, so instead he lies , again. trumps lost on this and is all about promoting his propaganda over the truth.

[Recursion]

5. And this right here is the problem with a wealth tax

Most of what we call "wealth" isn't, it's just today's spot price multiplied by a quantity of assets.

[MFM008]

6. Erasing

All maggots economic gains.
So im sure it will come back....

[Liberal In Texas]

7. The market is over-inflated.

It would actually be good if it would find a lower more sane level and stabilize. Of course that might mean the Fed would have to get more realistic about interest rates.

[TheBlackAdder]

8. It doesn't lose the money, that always goes somewhere. The question is who was positioned to profit?

.

Bigger clients and firms have the first dibs when buying and selling. Peons just fuel the system.

.

[Amishman]

13. No, it really does mostly just vanish

ABC Corp has 1000 shares.

It gets traded up to $1000 per share, for a stock valuation of $1,000,000.

Something bad happens and people panic sell. 100 shares get sold and the price drops down to $500, as no one is now willing to pay more for it. The total of all the sales transactions is $50,000 or less, but the company is now worth only $500,000.

Where did the other $450,000 go? Nowhere, it vanished as it only existed on paper due to the consensus valuation of the company based on share price. Same thing happens when stock prices rise; it doesn't take $500,000 in purchases to raise the total stock valuation by that much.

The totals are based on the price of the most recent transaction, not what was paid for every individual share.

[redstatebluegirl]

9. I still think Trump and his rich buddies are manipulating the markets.

[OliverQ]

12. I don't think Republicans will care.

They had their chance to ditch Trump and they ignored it. Now they're stuck with him even if he tanks the wealth of their donors.