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To: blueplum

everything concerns.

Manufacturing HERE depends on parts from Asia.

Asia might literally be shut down, possibly for months.

How many of OUR manufacturers have enough cash on hand to survive that?

Who owns their notes for borrowed money?

Will the banks survive that manufacturing being shut down for months?

What about the mortgage payments of their (presumably to be unpaid) employees?

etc.

Add on effects will astound...


558 posted on 02/24/2020 10:21:33 AM PST by Black Agnes
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To: Black Agnes
in manufacturing, right now, and for the last 4 weeks, those awake have been buying up any and all inventory available. Just look at "trade working capital"and inventory on hand numbers.

But there is still a problem. While they may have bought up inventory, transportation is a massive issue right now. Can't get it from the factories to other locations across the globe.

2% of our GDP is tied up with supply chain in China. It doesn't matter too much if Chinese plants are back in operation. They're not but even if they were, inventory on hand is short and thus we will see a squeeze play resulting in a lower GDP later this spring.

If there is any substantial breakout in a region of the US, the stores will look like Milan yesterday.

No bueno.

582 posted on 02/24/2020 11:00:13 AM PST by Solson (Trump 2020!)
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