[digitaltrees]

Because countries are shutting their borders and we have a tightly coupled network. Add to that decades of streamlining logistics to avoid any inventory and consistent dividends and stock buy backs that make scaling up additional capacity difficult and you can quickly see disruption.

If this triggers a financial crisis, then working capital can disappear so even if capacity exists liquidity won’t and there won’t be enough purchase power to float inventory.

I worked at the best corporate bankruptcy law firm in the country in 2008. I can tell you there was a real concern that lack of liquidity would result in grocery stores not having food for extended periods from lacking working capital. That can happen fast.