COVID Part 2 - The economic mess

[TJC44]

So now that everyone is preoccupied with social distancing and PPE, part 2 comes along.

1. The stores are already gutted from the panic buying, and the supply chain can't seem to get caught up.
2. The games that the Saudis are playing with the price of oil.
3 The big 3 automakers have shut down, and in some cases retooled to produce medical equipment.
4. #3 creates a wave effect (not a trickle) back up the supply chain. More on that later.
5. The airline industry has also about shut down. No one is flying, no one is building planes, etc.
6. Wave effect from #5, no one is parking at the airport, no one renting cars, no one staying at hotels.
7. Major uptick in unemployment means hell for banks unable to collect debt.
8. Trickle down effect creates panic in companies that supply parts. Warning of reduced earnings, Companies cut their spending, cut capital -
My employer just sent down communication from the top to prepare for a "Category 6 storm" financially - their words, not mine.

The virus was the easy part.

TJC