This seems kind of problematic. https://therealdeal.com/2020/04/03/n...medium=twitterMajor department stores like Kohl’s, Nordstrom and Macy’s could run out of capital within a month, according to a liquidity “stress test” published Thursday by Goldman Sachs. Other retailers like PVH (the parent company of Calvin Klein and Tommy Hilfiger), Gap and Victoria’s Secret parent company L Brands fared only a little better under the investment bank’s most extreme scenarios, with two months’ worth of liquidity available.
Retailers going under would have major implications for their landlords. Many retail real estate owners are already seeking relief on their mortgage payments.
I feel like people saying the economy should stay shut down for a month have no idea the tidal wave that could be coming.
I found this from JP Morgan study of small business in 2016 https://institute.jpmorganchase.com/...sh-is-king.htm
I originally thought the would be nothing. But closing the world economy for months is going to take years to recover from. Most businesses are highly levered and weren't equipped to have a total shutdown.Small businesses are the lifeblood of many communities and a critical driver of production, employment, and economic growth. They account for 99 percent of all business establishments in the United States, employ 48 percent of all US workers, are responsible for over 41 percent of net job creation, account for 45 percent of GDP, and produce 34 percent of all US exports.
Finding Three: The median small business holds 27 cash buffer days in reserve.
The number of people who will be killed by mass bankruptcy could leave the number of people killed by coronavirus in the dust.
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