Unlike all other times before, our economy is over-leveraged like never seen before. The COVID-19 shut down of main street mom-and-pop stores will trigger a snowball effect onto wall street. However, cutting rates to zero and Trump throwing his last cards in will only kick up a temporary fix. In reality it is adding more fuel to the fire by further extending the leveraging, and thereby, volatility of the market, until this all crash into a giant complete free fall.
Earlier in a podcast Chamath also explains that we are basically facing a choice: save the people, or save the markets, and we are choosing to save the people.
If you look at the link from Draper, he is a VC, and is clearly looking at the situation from a more financial stand-point. His push to reopen business as usual might sound cold, given the situation, but it has legs, at least from a purely economical point of view.
Nope, that doesn't make any sense. Keep the shops open now and infection grows exponentially. Overwhelm the ICU capacity = MORE people will die. MORE people dead = less consumption = less people paying rent, etc.
Agreed. Honestly, who is going to take a trip around the world now? Even if all the borders were open. No one is going to risk getting stuck in some foreign country.
There is a better solution: taking care of people, isolating the vulnerable and not allowing others to get sick unnecessarily rather than letting 120-170 million die.