This crash seems like a case of anchoring and adjustment bias at a societal level. Most retail was mindlessly buying the dip all week, slowing down the decline.
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A supply shock in China will echo in the rest of the world. A demand shock in China will echo I. The rest of the world. When the virus picks up steam in another country, it happens again. All the while, firms run out of cash to pay obligations causing further havoc.
It’s unclear how you solve the later problem from causing big continuous contagion? Helicopter money (qe direct to small players instead of banks) is new. Maybe QE to banks with a gov’t mandate to extend low interest credit or loan forgiveness/delays? Interesting times.
