The Covid Economy -- July 10, 2020

The Covid Economy:

At times of revolutionary transformation, people realize only gradually that the whole world around them is changing.

From chapter 6, page 247, "From Devastation to Democracy: 479 BC - 461 BC," Athens: A Portrait of the City in Its Golden Age, Christian Meier, c. 1993.

Gap: the gap between the investor class and the non-investor class will continue to widen.

Gap: will widen between the investor class and the non-investor class.

 

Fake story line: these bankruptcies had less to do with Covid-19 and more to do with the companies themselves.

Gap: the gap between the investor class and the non-investor class will continue to widen. The oil sector is the worst sector to be in right now and yet COP maintains its dividend.

Note: Toyota Motors is not shown in the graphic above. Market value of TM is $175 billion, about 70% that of Tesla. The graph above says as much about the "craziness" of Tesla valuation as the sad state of affairs for the legacy automobile industry. Did GM not see this coming? Did Mercedes not see this coming?

My favorite graphic:

Some people are drawing parallels between the present economic situation and the "Crash of 1929." Possibly, but I don't think so.