Post-Corona Economy

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TheCatt
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Post-Corona Economy

Post by TheCatt »

It's not me, it's someone else.
Leisher
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Post by Leisher »

Someone is always making money.
"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
Leisher
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Post by Leisher »

"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
TheCatt
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Post-Corona Economy

Post by TheCatt »

Sure feels premature, but who knows.
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Post by GORDON »

There were a few good rallies after Black Friday.
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Post by Leisher »

As the article notes, this is on the same day it was declared that we were in a recession.

If the economy does just start steamrolling along again that's going to make people forget a lot about C-19 and BLM. They'll be far more interested in their wallet and retirement fund.
"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
TheCatt
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AMZN, AAPL, TSLA, MSFT are taking over. Stocks have been falling past few days, but NASDAQ has hit consecutive new highs.
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Post by Leisher »

"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
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Post by GORDON »

nah, it'll be fine, some other gym will reopen in a year or two.
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TheCatt
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Post by TheCatt »

GORDON wrote: nah, it'll be fine, some other gym will reopen in a year or two.
That's usually how capitalism works.
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Post by Leisher »

TheCatt wrote:
GORDON wrote: nah, it'll be fine, some other gym will reopen in a year or two.
That's usually how capitalism works.
Yep. Just because a company was poorly managed doesn't mean the sky is falling.

Every corner of every city has a Mexican restaurant, yet a well known brand name "Chi Chi's" went out of business. Ford planned ahead for the recession under Obama and didn't need bail out money like GM and Chrysler. This End Up hired a management team made up of fresh college graduates and went under pretty quickly, yet I still have no problem buying furniture. And so on.

The gym business runs on low margins, deals with people's inherent laziness, has to be convenient, and has constantly growing competition from home gyms with internet provided live classes. Adapt or die.
"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
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Post by GORDON »

I find it a little unfair to say that when a business couldn't survive by forgoing all income for 2 months, while still paying all debts, it was poorly managed.

Granted, I don't know how all the free moneypalooza from the federal government has worked.
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Post by Leisher »

GORDON wrote: I find it a little unfair to say that when a business couldn't survive by forgoing all income for 2 months, while still paying all debts, it was poorly managed.
Fair point, but why are all the other gyms still in business and not filing for bankruptcy? Same market, same consumer base, same conditions, etc.

The only difference is management. Did they plan ahead like Ford did? Were they already struggling? Were they keeping the appropriate cash reserves and ensuring their credit rating was good enough to withstand any sort of downturn in the business?
"Happy slaves are the worst enemies of freedom." - Marie Von Ebner
"It was always the women, and above all the young ones, who were the most bigoted adherents of the Party, the swallowers of slogans, the amateur spies..." - Orwell
TheCatt
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Post by TheCatt »

GORDON wrote: I find it a little unfair to say that when a business couldn't survive by forgoing all income for 2 months, while still paying all debts, it was poorly managed.

Granted, I don't know how all the free moneypalooza from the federal government has worked.
People are always told to have a 6-12 months emergency fund, why don't businesses?
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Post by GORDON »

People lose jobs all the time. Being shut down by the government as part of a quarantine is unprecedented in recent history. But overall, I can't answer any of these questions. 24 Hour Fitness was pretty inexpensive, and one assumes they had thin margins. Good for the consumer. If others are surviving, I would suggest they were charging more and had more cash resercves.

That being said, my mother says she has received 6 figures in federal aid for her bar/restaurant, and it went to her LLC. If she declared bankruptcy tomorrow, she'd pocket it all. She was speculating.... she said she wouldn't, but plenty of others probably are, because it's a big fat loophole.
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TheCatt
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GORDON wrote: That being said, my mother says she has received 6 figures in federal aid for her bar/restaurant, and it went to her LLC. If she declared bankruptcy tomorrow, she'd pocket it all. She was speculating.... she said she wouldn't, but plenty of others probably are, because it's a big fat loophole.
That's a lot of $$$. The problem with the LLC is that it isn't a full liability shield. She'd have to reasonably get the assets out of the LLC first, which could then be clawed back under investigation. So it's not a big fat loophole, but the government probably wouldn't bother depending on the $$$ involved.
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Post by Cakedaddy »

I looked into it, and I can get just over $100k in assistance as well. But at 3.75%, no thanks. I thought it was going to be at 1%. But then further reading says it is interest and payment free for the first 12 months. What kind of interest can I get on 100k?
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Cakedaddy wrote: I looked into it, and I can get just over $100k in assistance as well. But at 3.75%, no thanks. I thought it was going to be at 1%. But then further reading says it is interest and payment free for the first 12 months. What kind of interest can I get on 100k?
Guaranteed? Like 1.3%

I thought PPP was capped at 1%?
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Post by Cakedaddy »

This is an SBA loan through, or because of, or part of EIDL. I don't know what the difference is between this loan and any other SBA loan through a bank.

Maybe I'll get the money and then bet it all on black.
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Post by GORDON »

My mom said her money was 1% after 12 months.

I should suggest a vegas trip.
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