"To the incinerator with you, Bub!"
Posted on 02/25/2020 11:33:06 AM PST by Zhang Fei
The COVID-19 illness has not become a global pandemic, according to the World Health Organization, but it’s starting to act like an economic one. And the financial costs are mounting.
Near-panic over a spreading coronavirus sheared more than 1,000 points off the Dow Jones Industrial Average DJIA, -3.12% on Monday, with more and more companies having followed in Apple’s AAPL, -2.78% footsteps by warning of lower sales and supply disruptions that could cause even more damage in the next few months.
Just a few weeks ago, most economic forecasters were predicting a small impact from the viral outbreak in China. Since then the virus has made its way to South Korea, Italy and other countries, raising the prospect that it will spread worldwide.
The U.S. economy has been shielded from direct impacts of the virus, but the side effects are becoming more evident each day. Declining travel. Fewer foreign tourists. Supply bottlenecks for automobile makers and tech companies. The closure in China of popular American retail chain stores such as Starbucks SBUX, -3.01% and McDonald’s MCD, -0.65% . And so on.
Goldman Sachs on Monday raised its estimate of the economic damage to the U.S. for the third time in as many weeks. The bank now predicts the virus will shave eight-tenths of a percentage point from U.S. growth in the first quarter — double its original estimate. That’s a fairly big chunk of growth.
The truth, of course, is that no one really knows how much the disease will cost, especially if most countries that encounter the virus take the same steps as China in quarantining millions of people and shutting down large parts of their economies. The globe hasn’t suffered from a true pandemic since the Spanish flu in 1918 swept the world and killed up to an
(Excerpt) Read more at marketwatch.com ...
This one has a long lead time to ramp up to maximum disaster level. I’m thinking they timed it perfectly for maximum damage around the DNC Convention time. “Only Communism can save us.”
So it’s OK to shave 14% off of our GDP?
I think this flu will be a distant memory in a few months.
LOTS of folks died from the flu last year- whikle not many are dying from coronovirus YET
````
COVID19 is killing on top of the regular flu;
Regular flu established death rate 0.02%;
COVID19 currently 3-4%
they will sadly
That's the most puzzling thing about it. On the one hand it' nothing to worry about but on the other hand every country that it's gone to has taken extraordinary measures to contain it.
Yup.
Which is why it's contained.
Common sense says that if countries are instituting drastic quarantine measures that we should have enough food on hand to ride it out. Finished a week ago...food for 4 months, toilet paper and life straw (got a pool). If it never happens all usable.
That's great and hope it lasts.
"To the incinerator with you, Bub!"
1918 Spanish Flu historical documentary | Swine Flu Pandemic | Deadly plague of 1918
And these worldwide countries that seem to be overreacting to the corona virus don't have the same political or economic agendas, like China, Italy, So Korea, Japan, USA, etc. -Tom
“The CDC keeps creating panic.”
There was some Chicken Little from WHO on FBN yesterday morning. This guy clearly spends his off time screaming FIRE in movie theaters.
Fear mongering
No, but only 16% of our economy is at risk. Lets say the coronascare shaves 10% of of world trade. 10% of 16% is 1.6%. Bad yes, but not terrible.
You cannot ignore the huge multiplier effect. Parts sourced from overseas won’t be available curtailing domestic production. Then the business slow-down ripples through all of your local businesses that keep the community and local businesses humming. This could set off a major global depression.
I was talking to an 8nvestor on the eay home, and he thinks it will bounce soon.
Agreed. Probably by weeks end it’ll start creeping back up.
In 2017 we imported $475B from the Commies. Even if ALL of those imports were stopped the value of the parts/components sourced from China is not $467B, I will guess it is $100B for academic purposes. $100B in Chmese components will only affect say $100B in US production. $100B in a $22T economy is less then 1/2 of 1% of GDP.
Global misinformation propaganda alert!
Don’t be fooled
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.