Federal reserve is panicking – cut benchmark lending rate to ZERO.
"Businesses are shutting doors globally and households are moving into quarantine," Meyer wrote in a note to clients on Sunday night. "We are already forecasting negative GDP growth in the second quarter but the risk is that it proves to be a much deeper and more prolonged contraction in economic activity."
The external fund manager backed by Berkshire Hathaway’s Charlie Munger, Li Lu, makes no bones about it when he says ‘The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company.
Obviously, They will have to sell more assets to pay their debt. Which means more layoffs, and more cuts in quality of service and such.
But the Big M will survive merely because they still have enough physical locations owned worth $XXXM to be able to quantify lending against those assets at a later date. And rest assure the Gov. will issue orders to add stimulant dollars back into the banks just for that purpose as this has been declared a national emergency.
However I am not sure that Macys will get any of it. Do to the fact that Terry L. booted Trumps lines when he ran for president in 2015-2016. Pissing Trump off enough to possibly withhold funds strictly to Macys and Bloomingdale just to watch it burn. We will see.
"It's becoming evident that the major central banks across the globe are using all their available tools to prevent a crisis, but it seems the fear of the pandemic is taking control of investors," said Hussein Sayed, chief market strategist at FXTM.
https://dnyuz.com/2020/03/15/feds-emergency-coronavirus-cuts-shake-markets/