thefatbaboon Posted March 22, 2020 Share Posted March 22, 2020 I am reading too much about how firms (and I guess by extension their employees) should be “punished” for share repurchases or dividends. I believe this entirely misses the point and reflects a dangerous misunderstanding of what is going on. 1. This virus while bad is not worth entering a Great Depression for. Indeed it would be better to let it run, implement harsh triage rules for the use of ICUs and kill many of our elderly and infirm and not shut everything if the result is an economic cataclysm. 2. We are a wealthy society with the resources to take a long “holiday” however so that we can deal with this health issue more humanely. 3. As such we should treat it as a health holiday and place everything on hold. No firing, no defaults etc. With the governments paying everyone to not work and stay quietly at home for a number of weeks/months. 4. We absolutely do not want to destroy many important industries and companies and jobs for no good reason. 5. Furthermore we do not want to have the economic survivors emerge from this and spend the next x years delevering and investment freezing because they believe they must prep for zero revenue scenarios. So, let’s not waste time overcomplicating things with who should be supported, who should be punished, diluted, preferred stakes, equity stakes.... All that is nonsense. 6. In conclusion, put an end to recriminations, stop this firing, let’s simply go on a health retreat for the next month or so, everything paid for or guaranteed by government borrowing and come back in a little while when we can easily pay it back when our economic engine is firing on all cylinders. Link to comment Share on other sites More sharing options...
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