I think it is time to consider the fallout of the coronavirus, not just the potential sickness but the massive financial impact. This situation is a giant snowball rolling downhill, the impact will be massive. Remember the fallout when one sports season was canceled? It was The 2012–13 NHL lockout, many of the games of the 2012–13 season, including the All-Star Game and shortened the regular season to 48 games per team with no inter-conference games.
The result of this one event crushed local business; restaurants, shop sales, jobs in the local community, and at the stadiums. It does not end there. This trickles down to the suppliers for these shops, people with no pay, and thus no way to buy goods and services impacting other businesses. Personal financial damage when bills don’t get paid.
Now let us take a look at how much greater this is becoming; The NBA, NHL, MLS are done. That is more than a magnitude of 3x. We have already seen Disney in California close, consider all the lost revenue in the park, local business, hotel, travel, fuel to name a few. What is the impact of lost revenue along with all those refunds?
Here is more good news, with everybody staying home all the local businesses, malls, restaurants will suffer because nobody is buying anything. Two years ago, a few months of red tide in the Gulf of Florida crippled local businesses. That was a pimple in size to what is happening now.
The stock market is now down 20% and going lower by the day. The FED will pump in 1.5 trillion dollars into the economy in the next two days. https://www.politico.com/news/2020/03/12/fed-announces-massive-cash-injection-to-relieve-us-debt-market-127284 Think about that? Remember the last time the FED started pumping money into the economy, 2008 when the markets were crashing. A 20% drop is a crashing market, but today we call it an adjustment.
I’m no expert here, this is just my opinion and looking at history, we are getting into a bad place. I think if this goes another month, with this constant closing of business, events, and people staying home, the economy will be dramatically impacted. Possibly much worse than 2008. The question is why is this getting very little news. No area of the economy is immune. One report I saw last night claimed this is not like 2008 because this is driven by a health scare and 2008 was an underlying financial issue. That is true, but I think this can be worse with so much of the industries shutting down. Well, it is time for a new day and another round of doom and gloom. WASH YOUR HANDS!