Italy was down more than 16%, Spain nearly -15%. The Germans lost 12.2%, making it the worst single day drop ever. Here in the state we have a confluence of events transpiring that’s so severe — it could only end badly.
Let’s go thru the danger signs.
LEVERAGED LOANS via SRLN off by nearly 5%. That’s a standard deviation blowout.
Pancake House, DIN — off by 27%.
Another casual dining giant — EAT, off by 30%.
Spirits Airlines, SAVE -30%
Life insurance giant, LNC -24%
Royal Caribbean, RCL -24%
Macy’s, M -23%
Six Flags Great Adventure, SIX -17%
I can go on. The point I am making here is this. You have a giant pyramid scheme, which is normal of course. Business rely upon foot traffic and people buying stuff. People are not doing that anymore and these companies are GIANT. We don’t have small mom and pop stores anymore. These chains are enormous with wide ranging overhead and employee counts. They cannot handle the downtime, in so quick a fashion.
All of the sports leagues have been canceled. Italy is shut down. This virus scare is so pervasive, so severe, it’s only a matter of time until Disney shuts down.
The resolution cannot be made at the Fed. The government either lends EVERYONE money for free or they will go bust and markets will be forced to close until this passes. If they do not freeze and close the exchanges — EVERYTHING will go to zero.
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