Not to worry. Biden is coming in and he is a moderate. Open borders forever, amnesty for all. Check. Medicare for All including illegals. Check. Being China's and Iran's bitch. Check. National lockdown. Check. Defund police. Check. Supports BLM and cancel America groups. Check. Reparations for African Americans. Check. Complete cancellation of all student debt. Check. Return to any international global organization just because it is global and hates America. Check. Climate change is the number one priority for Americans. Check. Looters are the protesters that the Framers intended to protect. Check. Yup. Not to worry. Joe the moderate - or rather his handlers- are back in town.
Show me the structural example of a single bank failing due to businesses or individuals not making payments. Where is the structural ripple? The reality is that small businesses fail every year and banks have to write-off the losses. The losses this year are simply slightly higher than other years and many of the loans are government-backed SBA, etc. -- plus the government programs for PPP helped many businesses avoid defaulting on their loans. The only actions the banks have taken is to increase their buffers for non-performing business loans. Please show me your proof that 20% of the companies no longer make enough to make interest payments (citation needed). Keep in mind that 20% of small businesses fail within the first year. By the end of their fifth year, roughly 50% have faltered. After 10 years, only around a third of businesses have survived. Banks must feel pretty comfortable that the businesses will weather then hump if they allowed them to take out an additional $1B in debt financing in 2020 -- in the big picture scenario $1B is a trivial sum. Many small publicly traded companies issue far more than $1B in bond debt in a single year.
Banks are pretty sure, if they go tits up, they'll get a bail out especially with Biden in power soon. Businesses don't fail at this rate, but surely you can apply everyone also dies eventually so why go to these great lengths to pretend to save them ??
More businesses will continue to fail because of the Corona Virus shutdown. There is no going back for those businesses and lost jobs. Most of it small businesses who cannot weather the storm without huge cash reserves. Their employees have also, lost their jobs for good. Less taxes collected means higher taxes for most everyone be it, income taxes, sales taxes, gasoline taxes, property taxes if those taxes have not been raised already by now.
First, the fact that the Fed spent trillions of dollars ensuring banks and other financial entities did not fail is part of that. Second, you're making judgments on economic impacts when we are right in the midst of the pandemic. These things play out over years. Since you're so big on the cut and paste, read up a bit. It's coming: Oh, this isn't small businesses. These are the largest traded companies I'm talking about: Article and citation as requested. Surprised your newsbot didn't pick this up for you. Was just today. Must be overwhelmed with all your COVID spam.
Zombie companies were already on the rise greatly in 2019 -- many associated with the oil industry. It's not surprising that the percentage of U.S. zombified companies went up to 20% in 2020 from 16% in 2019 -- it was going to happen anyway even if COVID never showed up. Why ‘Zombie’ Companies Are on the Rise—and Could Pose a Threat to the U.S. Economy September 2, 2019 7:00 AM EDT https://fortune.com/2019/09/02/why-...e-and-could-pose-a-threat-to-the-u-s-economy/ 13% of the world's companies are 'zombies.' That's not healthy Sun March 31, 2019 https://www.cnn.com/2019/03/31/investing/stocks-week-ahead-zombie-companies-debt/index.html Asset Bubbles to Zombie Companies: The Dark Side of Rate Cuts July 29, 2019 https://www.bloomberg.com/news/arti...o-zombie-companies-the-dark-side-of-rate-cuts Central Banks Are Spawning A Zombie Apocalypse May 4, 2019 https://seekingalpha.com/article/4259993-central-banks-are-spawning-zombie-apocalypse A zombie company is one that regularly requires large capital infusions in order to survive, or one that is unable to generate enough cash to cover its fixed expenses. According to BofAML, 13% of companies in advanced economies are zombies, while 16% of American companies are zombified. Central bank monetary policy has been the primary cause of this rising tide of zombie firms. Ultra-low interest rates have allowed lousy companies to prolong their lifespan with cheap debt. This rise of zombie companies has some long-term negative effects on the economy.
The point isn't that they were on the rise before, but that the crisis has massively accelerated this. Your opening statement in the post that started this discussion: The financial damage done by government lockdowns as a public health response is minimal and only short term This is completely false and, again, shows a lack of understanding of finance. But maybe if you keep going the Captain Google route, you'll learn more. I highly encourage it.
Lefties, save everyone you can always print more money, every time Lefties get into power in the UK they massively over spend, then hand power back over to righties that then get the blame for the massive cuts they have to make caused by the lefties. Nothing more dangerous than a do-gooder!!
94.6% of democrats are zombies. Makes sense that they would end out with a zombie President, Sleepy Joe.