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Spectacularly wrong: Why Wall Street doesn’t understand the corona virus

Business

Investment professionals on Wall Street spend their days reading financial reports and looking at numbers flash on screens. These numbers record the moment-to-moment changes in the collective wisdom of markets about the value of stocks, bonds, commodities and a distressing array of derivative financial products.

From the comfort of the sealed caverns of Wall Street the actual physical and social world is just an abstraction to be quantified and analyzed. One of Wall Street’s most prominent investment research and management firms released an analysis that says the corona virus won’t be all that bad for the economy.

Analysts from Morningstar Inc.—which is actually headquartered in Chicago’s cavernous downtown—say that this pandemic will be a “mild pandemic.” I’m not sure how pandemics can be mild, but the analysts outline cases for “moderate” and “severe pandemics.”

One of the things that gives these analysts such a sanguine view, particularly in the United States, is the country’s advanced health care system which is “likely much more prepared for the taxing of our hospital system, as we appear to have a massive lead over other developed nations in the number of intensive care unit beds per citizen.”

And yet, a first-hand report from a physician in those hospitals suggests that there will be very little room for severe corona virus cases in any hospital ICU. Those beds are already being used by patients and not just waiting empty. In all likelihood, hospitals will be quickly overwhelmed and forced to decide who gets critical live-saving treatment and who does not. The “who does not” number could be very large if the Italian experience is anything to go by.

The analysts do admit that lack of health insurance and paid sick leave will likely lead to higher infection rates in the United States than would otherwise be the case. Naturally, people without insurance will be reluctant to seek treatment, and those without paid sick leave may come to work even when ill in order to make enough money to pay their bills.

The surprisingly upbeat report is based on the idea of a return to business as usual. The assumption is that the corona virus pandemic will not shatter confidence in our institutions which are so clearly incompetent and/or inadequate to the task of fighting this pandemic.

For the first two months of this year the U.S. markets virtually ignored the growing dangers of a pandemic and assumed that any economic problems would be confined to China. In fact, even as infections spread like wildfire in China, market averages touched new highs. The idea that novel infectious diseases for which there is no treatment do not recognize national boundaries just didn’t occur to most investors and investment advisors. Reality, however, began to sink in by late February and led to the historic stock market collapse.

Even now, a friend of mine who is retired reports that the week before last her investment advisor responded sharply when she called to dump half of her portfolio of stocks. The advisor won the argument saying that this is just a temporary slide, and that in the long term all will be well.

The political and social implications of the current meltdown seem lost on the Wall Street crowd. They cannot see that when all is said and done, it is unlikely that very many people will have faith in an advisor who tells them that stocks always return to previous levels and move higher. This will be an indirect result of shattered faith in government institutions that are supposed to protect us in such emergencies and shattered faith in an economic system that leaves so many without the means to respond to such a life-and-death situation.

Large-scale and dramatic rearrangements of our current system worldwide and in the United States are likely to come in the wake of the season of death that is upon us—and in the wake of the economic carnage that results from the breakdown of a system so vulnerable that a tiny virus could topple it at its base. That virus is now calling into question deeply held assumptions about basic security, protection, health care, and also economic and political arrangements that do not seem able to respond in ways that preserve life in the face of one of the most obvious and fundamental threats to it: epidemic infections.

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78 Comments on "Spectacularly wrong: Why Wall Street doesn’t understand the corona virus"

  1. world grater supreamcist muzzie lovin i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Tue, 17th Mar 2020 3:14 pm 

    supertards
    amber heard had a few good men jack nickolson courtroom moment
    i think she’s in deep trouble.
    supertard elon was right getting out of relationship with her.
    if you beat her u lose, if she beat her u lose. just do’t go for young women

  2. Mick on Tue, 17th Mar 2020 3:20 pm 

    Low oil prices are a way bigger threat to civilisation that
    Crashing stock markets and corona virus combined .
    Currently around $26.9 if this keeps up for much longer
    We really going to see what shit hit the fan means.

  3. Abraham van Helsing on Tue, 17th Mar 2020 3:48 pm 

    “European Union leaders agree to close external borders due to coronavirus”

    German news: people who leave the EU now, are no longer guaranteed to be repatriated. German gov advice: do not travel, certainly not outside the EU.

  4. Abraham van Helsing on Tue, 17th Mar 2020 3:50 pm 

    German Corona docu: if you have been infected with Corona and have recovered from it, you may assume to be immune for the duration of the current pandemic.

  5. Abraham van Helsing on Tue, 17th Mar 2020 4:29 pm 

    Expect more stringent measures to come up:

    https://edition.cnn.com/2020/03/17/health/coronavirus-uk-model-study/index.html

    “US, UK coronavirus strategies shifted following UK epidemiologists’ ominous report“

    “A study by UK epidemiologists predicts that attempts to slow, or mitigate — rather than actively halt, or suppress — the novel coronavirus could overwhelm the number of intensive care hospital beds and lead to about 250,000 deaths in the UK and more than a million in the United States during the course of the current pandemic.“

    Expect curfews soon.

  6. Abraham van Helsing on Tue, 17th Mar 2020 4:36 pm 

    Global blame game heating up. “You did it, not us”

    https://edition.cnn.com/2020/03/17/politics/pompeo-coronavirus-presser/index.html

    “Pompeo says State Department employees tested positive for coronavirus as he blasts Iran and China over ‘disinformation’“

    https://edition.cnn.com/2020/03/17/asia/trump-chinese-virus-tweet-intl-hnk/index.html

    “Trump and Beijing agree on the coronavirus crisis: It’s someone else’s fault“

    https://cdni.rt.com/files/2020.03/xxl/5e70fc3385f540748326ba7c.JPG

    …and now for the tax-free shopping…

  7. Outcast_Searcher on Tue, 17th Mar 2020 4:48 pm 

    Yes of course. Let’s pretend that THIS time, for some magical reason, the all doom all the time crowd is right, because it makes its purveyors money. /s

    Meanwhile in the real world, things the world waking up and at least heading in the direction of putting the right measures in place, both re limiting spread and financial couldn’t possibly matter.

    Because the track record of the all-the-time, broken clock, insta-doomers is just so FABULOUS over the past 50 years or so. /s

  8. Hello on Tue, 17th Mar 2020 4:49 pm 

    It kills elderly people.
    That’s bad news for europe. It’s gonna be empty.

    Luckly for europe there’s plenty of sludge at the gates to fill the void.

  9. joe on Tue, 17th Mar 2020 4:54 pm 

    Duncan Idaho on Tue, 17th Mar 2020 2:03 pm

    Nobody is believing this market. That was 600 points of fake news. The Fed is buying up the market.
    Just let it go guys. WTF are they defending? When will they understand its over. Its not worth it. They should have let the bad banks go in 08, now the good banks will go too. Ive always said that the Great Recession was only postponed. They can announce all the bullshit bailouts they want, its not gonna help. As long as we are chasing productivity gains to outpace reducing marginal returns then using billions of dirty Asian countries who eat wild animals and mass production captive wild animals then covid19 will not be the last disease. Lets not forget, Sarscovid2 is only half the story. Why isnt the US forcing the Saudis to end its oil pumping policy. With almost zero per cent rates and a massive corporate welfare policy then theres no way the Saudis can win this oil war, tight oil is just gonna pile up debt and any value or wealth that the Saudis have in the US is just gonna inflated away. My guess is that the double blow of Sarscovid2 and the oil war will send the US down the debt rabbit hole. Where will it end 40-50-60 trillion national debt? Make up any number and you could be right. Ultimately it doesnt matter, as long as China keeps making Americas shit and takes dollars for it right? Same goes for oil. Saudi can pump. The ones most likely to lose will be those not in the dollar system.

  10. Abraham van Helsing on Tue, 17th Mar 2020 5:09 pm 

    It kills elderly people.
    That’s bad news for europe. It’s gonna be empty.

    Nothing wrong with reducing the current 440 million EU population to, say, 400 million. With selected measures and financial incentives you can have your birth rates up in no time. Important is the overthrow of the US imposed political correctness sharia and instead follow a heart-headed pro-white Europe-First policy.

    Luckly for europe there’s plenty of sludge at the gates to fill the void.

    There are indeed a couple of tens of thousands of islamists OUTSIDE the gates, but they no longer will be let in. Since Corona nobody gives a f* about these parasites anymore:

    https://www.youtube.com/watch?v=xyQ707KdYn8

    The Greeks love it to be seen as the European heroes rather than suckers who can’t handle serious money.lol

  11. joe on Tue, 17th Mar 2020 5:16 pm 

    Germany needs 500,000 new immigrants every year’

    “https://www.thelocal.de/20200107/germany-needs-500000-new-immigrants-every-year”

  12. makati1 on Tue, 17th Mar 2020 5:18 pm 

    You volunteering Cloggie? I have been reading that the under 60s are also dying faster than before? Maybe the virus is mutating? A teen was hospitalized last week with it and more under 50s are getting it.

    Better be careful what you wish for.

  13. Anonymouse on Tue, 17th Mar 2020 6:32 pm 

    Mak, I can think of no better person to move to head of that line, than cloggjude here. Nothing wrong with reducing the current CloggJude population by say, one. Got to start somewhere and I can’t think of anymore more deserving to leave this plane of existence in the most agonizing, and most expeditious way possible than jew, sorry, you ‘Abrahymie’.

  14. Abraham van Helsing on Tue, 17th Mar 2020 6:45 pm 

    “Germany needs 500,000 new immigrants every year’”

    That’s what the industry wants. They won’t get it.

    Britain in contrast is a different story as that country has zero white nationalist potential:

    https://www.theguardian.com/uk-news/2017/may/19/uk-needs-more-immigrants-to-avoid-brexit-catastrophe

    “UK needs more immigrants to ‘avoid Brexit catastrophe'”

    “Ageing population, labour shortages and low productivity mean UK needs net inward migration of 200,000 a year, says thinktank”

    It is unproblematic that the industry will get a blow from Corona and unemployment will sore. Rebuilding the nation will have greater priority than giving in to the endless wishes of the industry and share-holders.

    Many people won’t own a car or fly in a plane.

  15. makati1 on Tue, 17th Mar 2020 6:51 pm 

    Anon, I could add a certain Missouri Jackass…er…Mule to that list. I think he should be in that fantasy retreat in Northern Italy he brags about. ^_^

  16. Anonymouse on Tue, 17th Mar 2020 7:06 pm 

    Yes, you dont hear him talking much about his alleged ‘Italian Doomstead’ he planned on retreating to when TSHTF do you? I mean, the way delusional davy went on about it being the most secure place on the planet, after his cabin the ozarks of course (If it existed, which it does not), you’d think, he would have been on the first rowboat to Italy to get there.

    Of course the doomstead does not exist, but its funny as shit his fantasy doomstead is located in Corona Virus Central, ROFLMA.

  17. world supremacist muzzies lovin for the sake of muzzies on Tue, 17th Mar 2020 7:13 pm 

    On This Day…
    Mar 17, 2000: Atlanta, GA, USA
    An imam guns down a police officer: 1 Killed
    /ht supertard glenn roberts thereligionofpeace

  18. world grater supreamcist muzzie lovin i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Tue, 17th Mar 2020 7:18 pm 

    muzzie FGM from MN is being investigated by FBI now. tehre’s witness and he’s in hiding because other muzzies threten to kil him

    FBI arrested more chinese spies.
    china should be loved for amputating all their muzizes
    muzzies from china got pushed out of turkey, by muzzies brothers

    supremacist chinese profesosr says our system is permanent and better than thier that changes 4 years.
    uh then why stealing from US if system is better?

  19. Davy on Tue, 17th Mar 2020 7:54 pm 

    “Anon, I could add a certain Missouri Jackass…er…Mule to that list. I think he should be in that fantasy retreat in Northern Italy he brags about. ^_^”

    Enjoy your friendship annoy, makato might not be around much longer. LOL. What will you do then pervert? BTW, sucks being near Hongcouver too I bet. Lots of sickness in your neck of the woods. It would be poetic justice if an asshole like you you got sick. I am fine and too busy to fuck with losers with zero reasons to do anythings to be ready for a SHTF. Maybe I will moderate you guys tomorrow.

  20. Duncan Idaho on Tue, 17th Mar 2020 8:15 pm 

    Fox News is a fascist network propping up an incompetent buffoon of a leader. Coronavirus proved it

    https://www.alternet.org/2020/03/fox-news-is-a-fascist-network-propping-up-an-incompetent-buffoon-of-a-leader-coronavirus-proved-it/

    Is the light finally poking through?

  21. makati1 on Tue, 17th Mar 2020 8:17 pm 

    Ah, you could only wish, Delusional Davy. Sorry, but I will still be here, enjoying life, long after you are gone, watching 3rd world Amerika struggle to exist. Payback for all the shit and murders that it has done to the world.

    Your pathetic putdowns are losing their mojo, if they ever had any. I seldom even skim read them, unless I am bored and want to get your blood pressure up. That is soooo easy! lol

  22. makati1 on Tue, 17th Mar 2020 8:19 pm 

    Duncan, I hope the biggest lie he ever told is “I don’t have the virus!”. We can only hope that Biden is also infected.

  23. Duncan Idaho on Tue, 17th Mar 2020 8:22 pm 

    Years of Austerity Weakened the Public Health Response to Coronavirus
    (Thanks to budget cuts going back nearly two decades, public health departments nationwide have eliminated 50,000 positions since 2008.)

    https://truthout.org/articles/years-of-austerity-weakened-the-public-health-response-to-coronavirus/

    It’s not all the Fat Boys fault– he just accelerated the process.

  24. Duncan Idaho on Tue, 17th Mar 2020 8:34 pm 

    Duncan, I hope the biggest lie he ever told is “I don’t have the virus!”
    Well—-
    https://i2.wp.com/digbysblog.net/wp-content/uploads/2020/03/dt-believe-me.gif?resize=614%2C339&ssl=1

  25. Anonymouse on Tue, 17th Mar 2020 9:03 pm 

    When he says he is ‘too busy’ to ahem, to, (lol), ‘moderate’ that means davy dumbass is off to the goat pen for the rest of the night.

    What a dumbass.

  26. Davy on Tue, 17th Mar 2020 10:46 pm 

    “I am fine and too busy to fuck with losers with zero reasons to do anythings to be ready for a SHTF.”

    Accept for mostly you, cloggo, and mak, annoy. I been fucking with y’all for years. But I’m still too much of a dumbass to figger that nobody gives a fuck what an idiot like me thinks. SHTF is all we gots on are widdle pea brain.

    We needs to work that shit out. Please be patient y’all.

  27. Lord Trump III on Tue, 17th Mar 2020 11:40 pm 

    time to throw the jews in the ovens !

  28. makati1 on Wed, 18th Mar 2020 2:13 am 

    Anon, the only thing he might be telling the truth about is his goat harem. but he sleeps with them so he probably smells like a goat.

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