What's bad for Main St. is Good for Wall St. America 2.0 The black swan

So jobless claims have jump to there highest number in history and the market stages its biggest rally since the great depression.?It defies all reason. Unless maybe you believe the name of my article.

What the Fed and banks are willing to do for their “clients” as senior presidential adviser Jared Kushner has to referred the American people as. From an economic stand point this is going to make all the difference in the world. If rates are .25 money will flow but at what cost. Inflation that will make 1970's look like a cake walk. With-out saving rates at 12% (beyond-scary) The Commercial debt market is starting to collapsed in front of our eyes. High interest payments are going to default at rates no one could have predicted. Will it be enough from the banks to offer new credit facilities (maybe it will help). But this is not credit problem it is a “I don’t have the money to pay you problem”

Philly Fed chair compared Covid-19 to a snow blizzard that could last for 3 months. I like the analogy. Except after a snow blizzard everyone goes back to work with a nice break in front of the fire place. But unfortunately, this is going to be far from the case with this storm. The potential silver lining is we get for the first time in history to press the re-set button on America 2.0 right? So how do we improve as a nation from a big business standpoint. I am optimistic we will.

?Let me point out some of the obvious. Companies will be able to ask for government assistance and more importantly lay people off and save money to sure up their balance sheets. Nobody wants to deal with this reality, but we are coming off a so called “best economic condition in a 100 year”.?Now at first glance this bad, bad news. (massive layoff, unemployment spiking to historical highs) is horrifying. However not all companies will see it that way.?If you think these companies will be judged by how they act over the next 6 months you get a warm rosy feeling at first. Expect headlines to reflect a lot of front-end donations, some CEO taking pay cuts, boards cutting dividends and once they are cheap enough announcing buy back programs that will spin your head. Berkshire has enough cash on hand to buy back a significant portion of it’s A and B shares. Soft banks venture fund will be-exposed for the loser it is. The unicorn space is crowded and non even close to valuations that are realistic. But once things are back to normal and America is not as focused on the daily headlines being dominated by medical updates and what appears to be a tremendous amount of Corp good will. You can bet our ass just like in 2008 the little guy will be squeezed and corporate profits will adjust and find a way to keep their balance sheets strong. I am not arguing the fact that these companies shouldn't sure things up to keep the economy moving but if anyone thinks there will be a new corporate-conciseness formed talk to me a year from now or when ever economists tell us GDP is supposed to explode to the upside.?

Wells Fargo has already declared they are not opening up the SBA-PPP-window. Why would they? Are they being penalized for a being bad actor by the US government when offered a measly percentage of the stimulus.?High margin, high turnover business will no doubt emerge from this and the winners are companies that are willing to adhere to the nearly impossible stipulations. For the little guy everyone thinks is getting these forgivable loans if they retain 100 percent of there pay-roll in 120 days are you kidding me. The so-called small companies with under (5,000) small? employees will end up with the lion share. Rightfully so they are the best organized and best able to handle these sorts of situations. But lets not think for minute your local family restaurant with 6 employees, 2 or 3 off the books are going to qualify or forgiveness, unless changes are made to loosen up the stipulations. I have a strong feeling they will. I give the government a lot of credit for simplifying the process as much as they could.

Lately I have been reading people especially on social media arguing back and forth about how government stimulus is just another handout to low income families who should be working harder for there money and saving better etc. etc. Comments I have seen are based on wealth gaps, class, and work ethic. When it really comes down to private vs public sector vulnerabilities the gap’s could not be wider.

I truly hope I am wrong maybe 2.0 will bring out the best in us. If the rush on tiolet paper was any indication of how we will react. God help us. On the flip side Ceo’s have in many cases so far been announcing salary cuts and employees being paid as long as they can.?I applaud each and every one of them that has. Will it be sustainable? Corp goodwill is going to have a tough time filtering its way down to the 99 percent of small business that make up our economy.?Corporate had outs are going to be necessary to keep some industries afloat. The airlines, and energy to name a few. New industry winners will emerge re-new able energy and bio-techs can certainly come out of this better then when we started. In my humble opinion America is the greatest country in the world. This can be our time to show the rest of world that we are still the leaders in this global economic system. Hopefully not only when it benefits us. It just doesn’t feel the same way today as did in years past that America ingenuity will lead the way and be the standard of excellence. We are receiving aid from Russia and China. Is this good will or ways for these nations to eventually tip the power scales there way. These is so much to think about.?How does NY have 10x as many cases of Covid-19 then China? I still cant figure this one out.

People are quick to blame China or Japan for dominating the market in so many consumer driven industries. We should all do our patriotic duty and Buy American!!!! Sure that’s easy for the consumer to say. In fact I need a new 90 inch flat screen for $199 dollars. Remind me again where the local Zenith store is!!!! Cause honestly I would be the first person to buy American!!!!!!?Here the list of the top 10.

Rank Manufacturer

Panasonic

Market share (%) Headquarters

1 South Korea Samsung 20.2 Seoul, South Korea

2 South Korea LG Electronics 12.1 Seoul, South Korea

3 China TCL 9 Huizhou, China

4 China Hisense 6.1 Qingdao, China

5 Japan Sony 5.6 Minato, Japan

6 China Skyworth 3.8 Shenzhen, China

7 Hong Kong TPV Technology (Philips) 4.1 Hong Kong, China

8 United States Vizio 3.7 Irvine, USA *none or, at least, few of their parts are?made?in?America, and where the parts are?made?varies over time. ... They have at least one assembly plant in Mexico where shipping to the US for distribution is simple and low cost.

9 China Haier 3 Qingdao, China

10 China Changhong 3.2 Mianyang, China

Home of the best Tech equipment on the planet and the Corona Virus!