Coronavirus

[Dirtman]

Sunday he said everything was OK, no need to worry, and stock market dumped over 1000 points. Monday night he said everything was OK, and yesterday the market dumped 900 points.
I truly hope he keeps his big mouth shut today !!!
Grumpaw

NOOOOOOOOOOOOOOO! MY PRECIOUS STOCK PORTFOLIO!!!!!!!!! I LOST 3 CENTS!!!!!

I think... I don't know how stocks work.

 

[Grumpaw]

I thought the trade war thing already closed most of china imports anyway?

I dont understand how global politics work...

The trade was that our Fearless Leader started did not close down imports from China. We still import millions of products daily. It's just that the business that import are paying more for certain
products, and that cost is passed on to us. The products still flow from them to us, and us to them, but some products like agg foodstuffs that China imports from us now have an import tax so high that
it is not profitable to even grow some of them.
Grumpaw

 

[Grumpaw]

NOOOOOOOOOOOOOOO! MY PRECIOUS STOCK PORTFOLIO!!!!!!!!! I LOST 3 CENTS!!!!!

I think... I don't know how stocks work.

Not so much you, but retirees who get a pension, or have savings tied to the stock market are taking a hit. Almost all pension plans are tied to stocks, as are 401K plans. It is very bad to see your savings drop in value by 25% in one or two days. If the companies in China that produce items for us, close down because of the virus, no products are made. Thus, the products that we make here, using those unavailable Chinese products, can't be produced.
So, the workers here are laid off because a factory in China has closed. It's a snowball effect, and takes months to rebound.
Chine makes "beebops" that a factory here uses to make their"usslins" for Ford to install in their new model truck, the "Snail". The "beebop" factory closes, thus no "beebops" for the "usslins", and no "usslins" for the "Snail"
So, the Usslins and Snail factories have to close till the supply of "beebops" start up again. The value of the products drop, and their stock value drops. If your pension or 401K is tied to either of those factories, you loose money.
The problem is further complicated because the company that produces usslins used to buy beebops from a US factory found that they could buy beebops from China for 5 cents less, so the US Beebop factory closed down. Now there is just the one China factory that makes beebops, and their closed because of the virus.
And, starting a new US beebop factory up would take years as there are no more people here with the backround to make the beebop, much less those who would want to re-start the company.
Really very simple.
Grumpaw

 

[Snoranger]

Not so much you, but retirees who get a pension, or have savings tied to the stock market are taking a hit. Almost all pension plans are tied to stocks, as are 401K plans. It is very bad to see your savings drop in value by 25% in one or two days. If the companies in China that produce items for us, close down because of the virus, no products are made. Thus, the products that we make here, using those unavailable Chinese products, can't be produced.
So, the workers here are laid off because a factory in China has closed. It's a snowball effect, and takes months to rebound.
Chine makes "beebops" that a factory here uses to make their"usslins" for Ford to install in their new model truck, the "Snail". The "beebop" factory closes, thus no "beebops" for the "usslins", and no "usslins" for the "Snail"
So, the Usslins and Snail factories have to close till the supply of "beebops" start up again. The value of the products drop, and their stock value drops. If your pension or 401K is tied to either of those factories, you loose money.
The problem is further complicated because the company that produces usslins used to buy beebops from a US factory found that they could buy beebops from China for 5 cents less, so the US Beebop factory closed down. Now there is just the one China factory that makes beebops, and their closed because of the virus.
And, starting a new US beebop factory up would take years as there are no more people here with the backround to make the beebop, much less those who would want to re-start the company.
Really very simple.
Grumpaw

I read that and all I saw was:

 

[RonD]

I started getting emails from suppliers a few weeks ago about "supply chain" delays because of the coronavirus outbreak

 

[Grumpaw]

Right, but if the Jinglesholp comes from China, and the factory shuts down, no more plumbis's.
Besides, I don't think anyone except Dirtman uses a plumbis, so if they close down, no loss.
He could always use a sholcklading instead.
Grumpaw

 

[Dirtman]

Holy shit its true!!!!!! A NATIONWIDE PLUMBIS SHORTAGE!

 

[Grumpaw]

Uh Oh...now what are you going to use to clean your little "weckie" ?
You know what they say, "NEVER put your undies on over a dirty weckie".

Grumpaw

 

[sgtsandman]

What the hell is a plumbis???

 

[Dirtman]

What the hell is a plumbis???

First they take the dingle bop and they smooth it out with a bunch of schleem. The schleem is then repurposed for later batches. They take the dingle bop and they push it through the grumbo, where the fleeb is rubbed against it. It's important that the fleeb is rubbed, becasue the fleeb has all the fleeb juice. Then, a schlami shows up, and he rubs it and spits on it. They cut the fleeb. There's several hizzards in the way. The blamfs rub against the chumbles, and the plubis, and grumbo are shaved away. That leaves you with a regular old plumbus.

 

[sgtsandman]

You’ve been hanging out with the Mad Hatter again, haven’t you?

 

[Grumpaw]

What the hell is a plumbis???

You slide the plumbus over your weckie and move it back n forth. Gives your weckie a good cleaning.

Grumpaw

 

[Snoranger]

What the hell is a plumbis???

It’s a common household item... it’s so common that it uses don’t need to be explained.

 

[Grumpaw]

News Flash...
Fearless Leader is going to give a nationwide news conference tonight at 6 pm.
He is going to try to put our fears at ease, telling us in his infinite wisdom and all-mighty power that we have nothing to worry about.
Probably going to tell us to eat 3 wild cherry Gummy Bears to ward off the evil effects of the Chinese Purge cast upon us.
Grumpaw

 

[stmitch]

Not so much you, but retirees who get a pension, or have savings tied to the stock market are taking a hit. Almost all pension plans are tied to stocks, as are 401K plans. It is very bad to see your savings drop in value by 25% in one or two days. If the companies in China that produce items for us, close down because of the virus, no products are made. Thus, the products that we make here, using those unavailable Chinese products, can't be produced.
Grumpaw

25%?! I hope that's an exageration. I know that hearing about a 1000pt daily drop sounds like a lot, but when the markets are near all time highs, it's not a significant percentage. If you've lost 25% in the last couple of days, something is wrong with your portfolio. And as long as you've been invested for the last few years, you should still be significantly 'in the black'.
The DJIA is down just 7% in the last 5 days. Including this week's drop, it's still up over 4% for the last 12 months, and up 59.9% for the last 5 years total.
The S&P500 is down is down a similar 7% in the last 5 days, but is up over 11% for the last 12 months, and up over 58% for the last 5 years.



As for the overall economic impact, I work for a large, global company in the industrial/manufacturing sector. We have operations all over China, including Wuhan. China is the second largest economy on the globe and it's more or less shut down for a month now. Q4 2019 was the worst single quarter since 2009, and they weren't forcasting much if any improvement for 2020 thanks to a declining/slowing global economy. That's a consistent outlook for pretty much any large scale machinery/transportation company from what I've seen, and that was before the virus started to shut things down. That means Q1 is likely to be worse for industrials than expected, and that damage is likely to spread into other sectors of the market too. I think it's going to drop more over the next couple of months, particularly when Q1 results are out, so I'd turn off the news and avoid looking at your stocks if you get nervous about these things. Whatever you do, don't panic and sell.