Quote from: Betwrong on May 04, 2020, 10:51:59 AM

Quote from: exstasie on May 03, 2020, 10:17:58 AM

Quote from: Betwrong on May 02, 2020, 10:35:02 AM

Quote from: exstasie on April 26, 2020, 09:29:22 AM

Not sure about other countries but the US bailout money are loans, not gifts. These businesses are taking on massive debts to keep afloat. The longer this goes on, the worst shape they'll be in when they do reopen. Since the loans will be forgiven if they default, businesses have some incentive to take the loans now and just close up shop later. It'll be interesting to see what happens in a month or two (regarding defaults and bankruptcies) when it's expected that most states will start reopening.

Aren't all successful companies start their business from taking massive loans? And there's nothing wrong with that. That's how business has been done for more than a century in the Western world. Why should we suppose that they would choose to declare bankruptcy right away? Some of them will do just that, of course, but, I'm sure, most of them will strive to make profits(and will succeed in that, imo).

An eternal optimist, you. Cheesy

Successful companies usually take loans for growth. Taking loans to shut down (while funding overheads and payroll) is a little different.

Sure, some businesses will do just fine. I'm just saying shutting down for 2-3 months and taking on a shitload of debt is a shock that many businesses can't handle, particularly small businesses. Plus, the bigger problem than the shutdowns is that demand may not return even once they are lifted:

As States Begin to Reopen, Many Stay HomeKeeping Economic Rebound Elusive

Who Will Reopen the Economythe President, the Governors, or the People?

Yes I'm optimistic, but my optimism isn't coming out of nowhere. Over a million COVID-19 patients have recovered successfully, and among 2 million+ currently active cases only 2% are in serious or critical condition. This virus turned out to be not as deadly as first feared. Some people, like that yoga teacher in your video, are still afraid of the worst case scenario, but more and more specialists agree that the probability of it is very low.

BUT the negative impact on the economy won't end for another two years. We might see unemployment rates surge around the globe like never before. Some analysts claim the unemployment rate in the U.S. might surge as high as the Great Depression.