Instead we are now living in the middle of a full-blown economic meltdown. And what is worrying is that unlike 1929, 1987 and 2008, there is a strong and immediate underlying fundamental economic cause rather than a malfunctioning of the financial system, to which those crises can, in the first instance, be attributed.

That’s why it’s not that much of a problem. The facts have changed, prices change, and?

We know why they’ve changed too. We even know that once the cause has passed – as it will – then there will be a recovery. The very fact that we’re not standing around wondering what the hell just happened is why there’s reason to be cheerful. Once it has all passed there will be slightly fewer people, we’ll have the same amount of capital we did have, the same level of knowledge and so on.

No, I don’t claim the interim is going to be all that pretty but the fact that we know what the cause is is exactly what makes this time different. Better different rather than worse different.

9 thoughts on “Err, yes”

  1. That’s assuming the only problem is the virus. Are the markets also going to take this as the time to react to excessive government spending, and decide not to recover?

  2. One ‘bonus’ of the Black Death was that the survivors inherited wealth and became more independent.

    Coronavirus seems to be fatal mostly to the elderly, hmm …

    There could be a sharp bounce-back once probate works its way through the system.

  3. What is this “strong and immediate underlying fundamental economic cause”? Does he say? And what was the malfunction of the financial system that accounts for 1987? And why does he not allude to the very severe bear market of 1972-74? I suppose the answer, as always, lies in his complete ignorance of just about every subject under the sun. He should just limit himself to his porn career

  4. BTW are the rumours true that China is stockpiling crude at its current bargain basement price? If so, there is surely reason for a ray of optimism for those fortunate enough not to live in the horrid and nasty end of Ely

  5. Economics question: Will the contraction from the CV Pandemic be deflationary? People being more careful with their spending could result in sellers reducing their prices, reducing their margins, to keep business going.

  6. MrVeryAngry said:
    “What staggers me is that Murphy can get away with going with producing the guff he produces.”

    Not just Murphy; have you read the Guardian recently?

  7. @RichardT

    Guardian recently:

    Trump & Brexit to blame for CV-19?
    Trump & Brexit to blame for Market @ Oil crash?
    Climate change to blame for CV-19?
    Meat eating to blame for CV-19, world must be vegan?

    – Paul Joseph Watson: Coronavirus – Thanks, open borders

    If Trump walks on water tomorrow, the media will say: Trump can‘t even swim

    – Just tell the coronavirus, “Stop! Don’t touch me there! This is my no-no- square!”

    – New report shows how long coronavirus can remain in air, on surfaces

    CV-19 can linger in air for 3 hours, wash your hands – whut? Breathing OK if hands washed?

Leave a Reply

Your email address will not be published. Required fields are marked *