All errors should be reported to DonSurber@gmail.com

Friday, June 05, 2020

Covid-19's big winners are the globalists

Conventional wisdom is covid-19 hurt the globalists because people are starting to call Red China "Red China" again. But Jim Cramer followed the money. The lockdowns helped big business.

CNBC reported, "The corona virus pandemic and corresponding lockdown made way for 'one of the greatest wealth transfers in history,' CNBC’s Jim Cramer said Thursday.

"The stock market is rising as big business rebounds from state-ordered stoppage of nonessential activity, while small businesses drop like flies, the Mad Money host said.

"'The bigger the business, the more it moves the major averages, and that matters because this is the first recession where big business … is coming through virtually unscathed, if not going for the gold,' he added."

I mentioned this in a post yesterday that was posted before Cramer's show. (And there is no way Cramer read that post.)

The post said, "Tanking the economy actually helps Corporate America (which sides with Democrats) because it drives its competition out of business. While the mom-and-pop stores shuttered, Amazon flourished."

And of course, big business can endure short-term losses easier than even a well-financed small business.

Cramer's take is that the economy is screwed but not the stock market.

The CNBC story said, "In order to help small businesses make it to the other side of the pandemic, the federal government needs to pass another stimulus package, given the social distancing mandates that remain in place, he added. The American Bankruptcy Institute said Thursday that U.S. Chapter 11 bankruptcies in May ballooned by 48% compared to a year ago."

Cramer said, "That’s that pesky real world asserting itself, but the only big bankruptcy we’ve seen in the stock market is Hertz."

And Hertz already was hurting.

Cramer also said, "The companies that took the money just got a big break: they only need to spend 60% on their employees to get the loans forgiven, down from the original 75%. That’s important, as most small businesses fail because they can’t afford to pay the rent.

"But, in the end, the stimulus package probably won’t be enough, for one simple reason. It’s not going to work because of social distancing."

I know most readers realize covid-19 was overblown. Yes, it is a horrible disease that killed many an old person. But the threat never justified a national shutdown.

But politicians and their corporate allies feed on fear.

My wife's family recalls that in World War II there was a fear in West Virginia that German planes lost looking for Washington would drop their bombs on Grantsville, population 1,052. And so they participated in the nightly blackouts, too.

The only thing that has changed since then is Grantsville's population has been cut in half.

Fear is a powerful weapon. It just caused cops and National Guardsmen to bow before the marauding mob of riots and looters in city after city.

Corporate America is living off those fears. Why do you think there are so many Alone Together PSAs on?

The one thing I learned as a parent is children go by what you do and not what you say. In political blogging, that is what I try to do. They want to destroy the middle class by taking out mom-and-pop operations. I bought my last roll of toilet paper from Walmart. It is a few cents more at Poca Food Fair. So what?

11 comments:

  1. I'd wait, if I were you.

    Some will close forever, but a lot will be back. That's entrepreneurship.

    ReplyDelete
  2. Without access to capital, all the desire in the world won’t get these small business going again. Hopefully they can reopen. Their communities will support them for sure. My hope is that If they can’t get the capital, another entrepreneur will come along and fill the void.

    ReplyDelete
  3. In Maine restaurants were gearing up for opening on June 1st, buying food and rehiring waitstaff using loans and reserves. Then the governor pushed back the opening. This is why you do not allow arbitrary law, it inevitably allows the tyrant to play favorites and ruin capriciously. They should sue her personally and force her to resign.

    TarsTarkas

    ReplyDelete
  4. I told my barber this morning after he required me to wear a mask what I think of this BS. His female partner in the shop is scared to death. He said what does it hurt to wear a mask? I said because it accomplishes nothing but making nannies feel good. I also told him to think about the stupid rules restaurants have to abide by; many will be bankrupted. He's been in business for 40 years so the 2 month layoff didn't kill him. I suggested if this happened 5 years after he started it would have bankrupted him.

    ReplyDelete
  5. TERRIFIC post, Big D. I’d add one thing: NEVER sell yourself short. Did the ADHD Man in fact get briefed on your missive before his show yesterday? “The Shadow knows.” Hell, Limbaugh’s bigger than that fool. I keep telling you, give it some thought and prayer WHEN Mr. T invites you to join his 2nd Term admin...

    ReplyDelete
    Replies
    1. Hey zregime, wanted to thank you for mentioning in a comment during the past few days that you are voting for Folk in the WV Governor's race on Tuesday. I've been very busy the past few months and hadn't seen much on some of the candidates, but your comment made me do some research and learn about Folk. Because of that, I am going to vote for Folk too. Thanks for bringing his name to my attention. PS I always appreciate your comments on Don's blog. Blessings to you.
      TeaPartyGal

      Delete
  6. Who's the largest employer in America? Small business. Who's the biggest threat to the global elites? The American middle class. I hope like hell all the bounce-back news is true because it'll mean they failed once again to reverse 2016 and may fail again in 2020. To say the November election is vital is the mother of all
    understatements. - Gary B

    ReplyDelete
  7. Kulaks are an obstruction to collectivization. They must be destroyed.

    ReplyDelete
  8. Good leaders will not let the virus spread in the community, do not greatly affect the economy. periodic table

    ReplyDelete