Corona Virus is all the rage these days and here I thought it would be wide legged pants. Thanks again Fashion Week for nothing. I’m not joking about it but I am saying we like a good scare. It’s as if our lives are so safe and boring we need something to shake them up.
I read an article that the mortality rate is somewhere around 2.8% and that’s only because the region in China where it first broke out was the hardest hit since they didn’t know what they were dealing with. Outside of this region in China the mortality rate is somewhere around 0.4%. Basically, like any bad illness it preys on the weak – young, old, infirmed.
I keep things a-political here (though I won’t be crying into my champagne if there is a regime change in a few months) but even I can see this hysteria all has to do with a convenient story. And the feeble attempts to tie it to the market are even worse. The market is correcting that is all and it’s going to be ugly because for 12 years we’ve been printing money like drunks at a beer festival. This sort of behavior has taken out entire civilizations.
The rational was if we’re (we meaning all the large economies) all doing it (and we were) then it’s ok. We’ll all fall together and the negative will cancel itself out. The benefit gained from this reckless behavior was mainly one sided as most can see when one looks around the billionaire to non billionaire terrain of the US it looks more and more 3rd worldish, the few and the many. That’s why hearing Jamie Dimon lecture on corporate bailouts had my head exploding. Just say thank you to us schmucks Mr Dimon, mow your damn lawn and sit the hell down.
My guess is we will correct heavily and they’ll start printing money again. Again! Ha! They never stopped. They’ll start printing even more money. What will be interesting to see is if there is a stopping point, a point where this behavior doesn’t bring change, turnaround or benefit. Where the old guard (hello my fellow Miltonists) were right all along. And more so if we’ve hit that stopping point. We’re in uncharted waters with regard to monetary control no matter what the smartiest smarties tell us dumb plebs on the television.
Let’s hope that’s not the real crisis we should be focused on.