Originally Posted by
Andy
Solvency. By the time the dust settles, there will be a lot of companies that file Chap 7. Many will also file Chap 11.
The average American doesn't have much/any rainy day savings. This may change that attitude which will also kill demand for flying from individuals. Solvency will do a lot of damage to workers flying for business.
Take a look at auto loans - a lot of those will likely go bad well after this ends so individual balance sheets are going to suck for a while.
It's too late to put the coronavirus freakout back in the bottle and at this point the economic damage will be significant even if coronavirus went away tomorrow. The longer this drags on, the worse the economy will be on the other side of this. Federal helicopter money can only fix so much of our solvency problems
I’m afraid that you’re right. I also think that there will be a fairly rapid (by the end of the year) recovery, but only to a level of around 60-70% what it was. The full recovery to where we were could take a couple of years. The damage to the global economy has been done and the market will take time to correct. This is far from over, and the economic damage will worsen. We haven’t even hit peak freak out in this country yet.