Inflation Is Coming

All the discussion of the current economic decline and whether the stock market has bottomed is missing the point. The damage being done now by Federal Government spending and Federal Reserve money printing to cushion the immediate impact has adverse consequences worse than the Coronavirus. 

The money the Federal Reserve is printing isn't going to have value. It isn't going to buy anything. Prices are going to skyrocket. And in fact, this coronavirus is accelerating that process because it's reducing the supply of goods available to buy.

This Crisis Is Economic, Not Merely Financial

The financial crisis of 2008 was a cake walk compared to this. All that happened in 2008 was real estate prices fell, borrowers defaulted, and lenders lost money. Today global commerce is grading to a halt. Production is shutting down. This crisis is economic, not merely financial.

Game Over!

In 2008 we bailed out the banks and GSE's, as they owned the mortgages. Today it's not just mortgage debtors who can't pay, it's all debtors. It's not just banks that need to be bailed out, but every leveraged business in every industry. Who is left to do the bailing? Game over!