Mon, 27 April 2020
Today, Jason Hartman and George Gammon discuss topics such as, The Doom Vortex/feedback loop, oil prices, bonds, and what the world needs to prepare for the Coronavirus fallout. COVID-19 is playing a big role in economic changes and Jason and George break down some of the less obvious concepts of how this plays out. Today’s episode dives deep into understanding the relationships existing in the global market.
[3:05] The big differences between the Coronavirus and the normal Flu are the R Naught Value, and Serious (non-fatal) Complication Rate
[9:25] COVID-19: a tougher, more hardy virus, living outside of the body
[12:00] A supply shock and a demand shock in the U.S.?
[16:05] How the corporate bond markets and the credit markets are affected by the crash in oil, Coronavirus and everything bubble turning into an everything crash
[14:15] The stock market is like buying in cyclical real estate markets
[28:15] When Triple B bonds get downgraded to junk bonds
[34:25] Sooner or later, companies like Tesla or Uber will need to sell equity to generate the cash they need to sustain themselves, especially in a recession
[40:10] During a recession, tax receipts plummet