Some images of 2008 are coming up - but is this misguided? Myself, from Economics 101 - it's obvious economies that go strong - crash. However, the question is when - and some are saying The Corona Virus will burst the bubble.
Anyway, what's going on now - isn't good news. Investors are not confident - simply cause so much of the economy is based in China - and it cannot deliver normally due to the virus - and also, of course - the virus is scheduled to disrupt other countries - including the US.
Lot of countries like USA are dependent on china for imported products. They have to either find other country or manufacture locally. Considering US folks are lazy they would find other country rather than creating locally.
For Asia, south america and EU nations, this can be an opportunity to produce locally and avoid china like incident. But it'd take years to manufacture and route new imports and exports through these nations.
Imagine some nations have literally clothing and electronics 100% dependent on china. Economy is bound to take hit. No other country than china is responsible for economy downturn last 5 years because of trade war and now corona.
Lot of countries like USA are dependent on china for imported products. They have to either find other country or manufacture locally. Considering US folks are lazy they would find other country rather than creating locally.
Given our dependence on China for just about everything, I think it is very likely that our stock market will continue to be hit hard. You have factories in China that have halted operations, and a lot of the goods being produced in those factories would have been on their way to the US. There's a chain to all of this. If those goods aren't getting created, then they aren't getting shipped, so they aren't getting distributed to retailers, and then that means those goods probably won't be available on the shelf at your local retailer for at least a little while.
Yes, a lot of companies are working to increase production in other countries, but that's not a solution that is going to be implemented tomorrow. There will be a delay. That means the supply will go down for the time being, and what does that mean? Prices should be a little bit higher next time you go to Walmart, especially when it comes to electronics. Companies like Apple have already come out and said that they will not meet their quarterly earnings goal. In this situation, that makes sense, and is totally understandable. Even with that being said, there's no doubt that their stock will drop significantly the second that bad earnings report is released. It's an awful cycle. On top of that, investors realize all of this, so what's the logical move at that point? People try to get out of the market. The typical everyday investors get into panic mode, and sell off their stock... And that takes us back to supply and demand. With so many people selling off stocks, those stocks will plummet even further.
I don't believe there will be an economic crash, but I'd say tough times are upon us for at least the year of 2020. It's going to take a while for the stock market to rebound, assuming it does.
@Cameron had a good point. However, though, also keep in mind - that the US is still running on pumped up fake money - just like with Obama. Well, this all will lead to a bubble and then crash. Point being - this was bound to happen anyway - but the virus is making it sooner.
Americans are lazy. And with bernie sanders they are also going to be next Venezuela with socialist policies.
Lazy in context of 70% or more stuff they have is imported from china, south korea, africa and other SEA nations.
They have attitude of not supporting their local manufacturing and innovation.
Their logic of importing for environmental safety has got them into situation they have to rely on outsourcing.
As for enough or not enough wages, they are feeling too much entitled on that too.
I think Corona virus its not so important problem to discuss thesedays,
About 70.000 people dies last two monthsfrom corona virus and every body talk about.
1,5million people died last two months because they didn't have food to eat and nobody talk about this
That's because not all those who are homeless is responsibility of society.
Not all people who live are responsibility of govt and society in general.
There are people who feed on parents money and govt food stamps contributing nothing to this world.
Whereas there are people who work 7 days a week and can't meet their family and even live healthy.
Parity and inequal circumstances can't always be fixed.
And if you make all people equal you'd end up having robots in this world.
Well, environmental concern should be worldwide. It's not so companies are looking for sneaky shortcuts.
Anyway, the less money there is in a nation, the more "profit over people" situation. I mean, whose going to argue environmental concerns in a place where "money talks" that much?
The corona really unleashed a serious economy terror worldwide as many companies were shutdown and a lot of people lost their jobs but government intervention on the feeding and financial grants given to it citizens help reduce the effects of the terror on people.
