"More people will die because of the second and third order effects of coronavirus." ~ Chamath.
All kinds of industries; airlines, cruises, hospitality, retail and then the non obvious, like software companies. As some business get impacted, their customers and their supplies will get impacted.
So this is the first time in a very long time where we're really going to see the domino effect of the economic contraction. This combination of a supply side shock and the demand shock.
Supply side shots can be fixed relatively quickly. It's the demand shocks that are much harder to recover from because they're deeply psychological in nature, they drive the leverage.
De-leveraging is going to be an important, probably violent and messy, leaving lot of people unemployed, a lot of businesses out of business closed.
Editor's note: Here's a tweet from Tim Draper, a successful venture capitalist, confirming this case.
You might also like