RE: 19,551 Trade28 Feb 2020 11:08
Knowlesi, good to get a devils advocate view.
Nobody can predict the future, but a couple of points:
1) Interest rates are irrelevant - this is a supply side shock, nothing to do with demand, so stimulating via interest rate cuts would not help anyway.
2) Supply chains will not be irreparably broken. Things are not the fragile. Things may slow down due to isolation measures, possibly even stop completely in the worst affected areas, but the capital and labour are still there, and normal service will be resumed. Just because the worlds misinformed (economically speaking) journalists are turning this into a worldwide crisis doesn't mean it actually is.
Yes, it will have an impact, the world economy will be slowed by this, but it is not the end of the world, the world will bounce back, IMO.
It is fascinating though, how the planet is reacting. All the nonsense on social media in our post-truth economy. All the scaremongering and emotional reporting on the situation. All the interviews with people affected etc.. It paints such a distorted view of the 'real' situation.
(though what the real situation is and whether it is possbile to know it is a whole new subject).
Remember SARS, bird flu etc.. they had an impact, they didn't end the world. Lets check back in 3 months and see where the markets are.
My opinion, based (hopefully objectively) on available evidence is that the real crisis is climate change, and the entire world seems to have its head in the sand on that one!