Quote:
Originally Posted by johnorpheus
I agree with this. What you have is a temporary (whether weeks or months, it's still temporary) event essentially freezing segments of the economy. While we are feeling this event much more in our everyday lives than the 2008 financial crisis, it is arguably less impactful long term. The jobs that are being frozen will be in extremely high demand once the crisis is over.
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I think it is nice to think you have a quick recovery, but very few business models have a zero revenue assumption in their downside financial model. If you do not have liquidity, you have bankruptcy. Many small businesses will liquidate, try getting a debtor in possession financing in bankruptcy with zero ebitda. You might file a Chapter 11, but soon be a Chapter 7. How does a small retailer or restaurant restart, with past due rent and unpaid payables?
Go look at the daily deaths in Italy and Iran, which we thought were moderating, only to see new peaks yesterday.