Yahoo finance... The cost of the pandemic

[DrunkenSailor]

U.S. states are bleeding cash as pandemic drags on with no stimulus in sight

Without state and local aid from new stimulus legislation, many state and local governments will find themselves swimming in a sea of red ink, according to an analysis by Moody's Analytics.

finance.yahoo.com

They are writing the article to pressure washington to act on a stimulus plan. What they don't realize is they are shooting themselves in the head.

In may after a month and a half in shutdowns. Ny had budget shortfalls just over 10mm dollars in lost tax revenue. I'm terrified to see what their number is when they release their next budget. Same story in LA. The defund the police shiny object is only going to last until they start making cuts in education, transportation, sanitation, pretty much all the ations...

Ask yourself this question: What is your city/county/states budget percentage of financial obligations to pensions and debt. Compare that to what percentage of tax revenue have they lost due to the pandemic shutdowns. Now look at what it costs to run day to day operations and think about what programs you benefit from that will be on the chopping block.

Throw in a commercial bond market that is a dumpster fire on a tanker carrying fertilizer docked next to a pressurized natural gas tanker.

Let's look at the commercial bond market values. In 2006 it was 4.6 today it's 9.5. mortgage backed securities in 2006 were 8.3 today they are 10.2. in 2006 the dow average was 11,609. Today it closed 29,438 after a fall of 344 points. The treasury securities total were 4.3 in 2006. In 2019 16.6.

The mortgage market has surpassed 2006 highs before the last correction. The commercial bond market has doubled. The dow tripled and government debt has tripled.

After the longest bull market in history rates are at the lowest I have ever seen outside of a hamp mod teaser.

To those who say we will never see the likes of 2008 again don't look down we are a long way up from the floor...

 

[HotRod82]

U.S. states are bleeding cash as pandemic drags on with no stimulus in sight

Without state and local aid from new stimulus legislation, many state and local governments will find themselves swimming in a sea of red ink, according to an analysis by Moody's Analytics.

finance.yahoo.com

They are writing the article to pressure washington to act on a stimulus plan. What they don't realize is they are shooting themselves in the head.

In may after a month and a half in shutdowns. Ny had budget shortfalls just over 10mm dollars in lost tax revenue. I'm terrified to see what their number is when they release their next budget. Same story in LA. The defund the police shiny object is only going to last until they start making cuts in education, transportation, sanitation, pretty much all the ations...

Ask yourself this question: What is your city/county/states budget percentage of financial obligations to pensions and debt. Compare that to what percentage of tax revenue have they lost due to the pandemic shutdowns. Now look at what it costs to run day to day operations and think about what programs you benefit from that will be on the chopping block.

Throw in a commercial bond market that is a dumpster fire on a tanker carrying fertilizer docked next to a pressurized natural gas tanker.

Let's look at the commercial bond market values. In 2006 it was 4.6 today it's 9.5. mortgage backed securities in 2006 were 8.3 today they are 10.2. in 2006 the dow average was 11,609. Today it closed 29,438 after a fall of 344 points. The treasury securities total were 4.3 in 2006. In 2019 16.6.

The mortgage market has surpassed 2006 highs before the last correction. The commercial bond market has doubled. The dow tripled and government debt has tripled.

After the longest bull market in history rates are at the lowest I have ever seen outside of a hamp mod teaser.

To those who say we will never see the likes of 2008 again don't look down we are a long way up from the floor...

I'm usually not a doom and gloomer, but the economy is headed off a cliff the likes we have never seen. The entire globe is out of cash and now is running on a combination of debt and printed money with nothing standing behind it. I try not to think about it anymore, just do what I can to be prepared for the bloodshed.

 

[LargeOrangeFont]

I'm usually not a doom and gloomer, but the economy is headed off a cliff the likes we have never seen. The entire globe is out of cash and now is running on a combination of debt and printed money with nothing standing behind it. I try not to think about it anymore, just do what I can to be prepared for the bloodshed.

You said it... it is a problem across the globe. It is all funny money at this point, and has for a few decades now.

Why do you think you are hearing murmurs about a great reset?

 

[pronstar]

Fiat currency has had literally nothing behind it ever since we left the gold standard.

The money was funny then, and now it’s just getting funnier.


Sent from my iPad using Tapatalk

 

[traquer]

I've been wondering about this too. How does one profit, or at least not lose their ass at the end of all this??

The billionaires need to put their money somewhere too during all this, so should people like us just follow what they're doing? Stay in the market and ride the inflation and make sure to have some paid-for real estate?

 

[JDKRXW]

I've been wondering about this too. How does one profit, or at least not lose their ass at the end of all this??

Physical property .......Farmland.

 

[traquer]

Physical property .......Farmland.

That's always safe, but why specifically? Seems farmers are always getting shafted one way or another, plus it's a lot of work lol