Thursday, March 19, 2020

Cash Is All That Matters Investors sold nearly everything they could Wednesday

Interesting news everywhere, suddenly, for a change.
Learning experience.

Walls and guns can stop virus entry into the USA.
Tests will not stop entry especially when Obamacare did not make enough test kits.

Overall the death rate will drop due to social distancing, quarantines, lockdowns,…
The birth rate will rise, a new baby boom, people stuck at home eating healthier foods cooked at home.

Everything just as I predicted years ago, pandemic the most likely SHTF scenario.
why I got out of San Francisco years ago,
massive population center with little production too many gays high on drugs, movies, concerts,…
1980 I first read the word "Gaysian" Gay Asian San Francisco like it was a great trend.
I never felt like I belonged there hard to fit in so I left to the Midwest.

Midwest has the land, space between people, vast agricultural production, and more conservative, production, more real work oriented population.

Around here grocery stores are full of food and essentials, a few more shoppers than usual but orderly, no lines, extra clerks.
Pharmacy CVS etc. also full of goods and drugs and foods.
I bought a year supply of Vitamin D.
Streets much less traffic, many areas deserted.
University / Downtown nearly empty like around Xmas.
Very large renovated wall to wall bars, restaurants, galleries, nightclubs about triple the size of Sacramento old town.
Empty.

Most apartments empty after 40,000 college students went home for online classes only.

USA has borrowed too much and over-invested in entertainment, travel, tourism, airplanes, hotels, dormitories, college apartments,...

Investors should sell off investments during boom, move into cash, Treasuries, CDs,..
Be ready to buy bargains - land, houses, cars, trucks, during the inevitable bust - happening now.
Massive sell off of cars and houses that people will realize they cannot make payments on forever until they move and get a new job.
The economy was unbalanced, global.
Needs to move back into equilibrium, local production.

Drive-in movies may make a comeback.
Convertibles make better taxis, Uber, Lyft vehicles with viruses blown out of the vehicle.
Moonshine whisky 200 proof is a great disinfectant but marijuana smoke weakens lungs, nasal membranes.

=================

This calamity, this coronavirus pandemic, was avoidable.
It happened because China hid the truth about what was happening from the rest of the world.
They're still trying to do that.
Whether from stupidity or greed, people outside of China, including in the USA, are playing along as if on script.
On January 15th, the World Health Organization parroted the Chinese government.
WHO claimed there was "no clear evidence the coronavirus could spread person to person."
The World Health Organization said that, and of course, it was a lie.
Every day at White House news conferences about coronavirus,
brainless reporters waste the public's time with complaints that the administration calls the Chinese coronavirus "Chinese."

"Spanish Flu.
West Nile Virus.
Zika.
Ebola.
All named for places….
Those trying to divide us must stop rooting for America to fail
and give Americans real info they need to get through the crisis."
Wuhan China's only biosafety level-four super laboratory that works with the world's most deadly pathogens include coronavirus

Trump confirmed he's planning to bar entry to migrants illegally crossing the US southern border, including those seeking asylum, in a bid to prevent the spread of the coronavirus.

Truckers are trying to navigate growing challenges on highways and at loading docks
as they seek to keep supply chains running
to meet surging coronavirus-driven demand for consumer staples and medical equipment.
"They are not allowed to use the restroom,
not allowed to use the building,"
asked for rest stops to be kept open
"Absent policies like these,
it will be more difficult to ensure that the shelves are stocked
and emergency supplies reach first responders and medical personnel,"
it will be critical that these businesses remain open, 24 hours a day,
providing America's truck drivers with fuel, food, showers, repair services and rest."
Truck-stop Pilot Flying J TA Petro Stopping Center
showers are open stepping up cleaning and disinfecting restrooms and commonly used areas
Trucking capacity is getting tighter as demand surges from retailers and manufacturers hustling to replenish stores and distribution centers cleaned out by shoppers stockpiling food and sanitizing supplies.
The average rate to hire a truck on the spot market had increased 6.1% since February 20 to $1.89 per mile including fuel.
————————

Federal Reserve will provide loans for financial institutions to purchase assets from prime money market funds.
The market has also been rattled by
spiking bond yields which indicate that investors are selling "safe" government debt,
and plummeting oil prices that have been caused by a massive drop in global demand and an ongoing price war between Saudi Arabia and Russia.
————


Markets Enter New Phase
—Where Cash Is All That Matters
Investors sold nearly everything they could Wednesday

A rush for cash shook the financial system Wednesday,
as companies and investors hunkered down for a prolonged economic stall,
taking the recent market turmoil into
a new, more troubling liquidation phase.

Investors sold nearly everything they could
in the most all-encompassing market drawdown
since the darkest days of the 2008 financial crisis.

Short-term money markets at the heart of the financial system were strained
and large companies have drawn heavily on credit facilities while they have them.

The selling sending the Dow Jones Industrial Average down 6.3%, to 19898.92,
first close below 20000 in more than three years.
fallen by about a third in just the past month.

Wednesday's selloff crushed shares of companies as varied as airlines, restaurants, banks and retailers.
The declines showed the extent to which investors are worried that the novel coronavirus pandemic
—which has already forced airlines to cut flights and businesses to close
—could send the economy into a recession.

Shares of Boeing Inc. tumbled 18%,
while stock in Citigroup lost nearly 10% in value.

A drop of more than 20% in the price of oil slammed shares of energy companies.

Exxon Mobil fell 10% and has halved so far this year.

Several stocks fell so sharply that exchanges had to temporarily halt trading in them.

Pension funds, meanwhile, which are normally built to ride out long market disruptions, may also be joining the cash dash.

"For pension funds, it is
sell anything you can
sell to build up reserves
so you can tell your trustees that you have enough cash to pay pensions over the next nine or 10 months,"

"The longer this goes on,
the more bankruptcy you get and
the more unemployment you get,"

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the Los Angeles metropolitan area is the most populous county in the United States,
with more than 10 million inhabitants as of 2018.
it is the largest non–state government entity in the United States.
Its population is larger than that of 41 individual U.S. states.
It is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion

49% White,
45% Hispanic of any race.
11% African
10% Asian
1% Native American
2% Korean
2% Armenian
10% undocumented illegals


Blue States Have A Smaller Population Than Los Angeles County

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