Hello John and Doves,
This coronavirus
outbreak has brought not only health concerns, but
economic and financial concerns.
Your health is most
important - your number one concern. But don't
overlook the economic and financial damage this will cause
and is causing.
With the recent major
drops in the Stock Market, problems in the Debt Market,
etc., the Feds are becoming more and more concerned.
Something wicked this way comes.
"Fed to Inject
$1.5 Trillion in Bid to Prevent 'Unusual Disruptions' in
Markets. Move designed to prevent ominous trading
conditions stemming from the coronavirus outbreak..
The Federal Reserve said it would make vast sums of
short-term loans available on Wall Street and purchase
Treasury securities in a coronavirus-related response
aimed at preventing ominous trading conditions from
creating a sharper economic contraction...."
Fed
to Inject $1.5 Trillion in Bid to Prevent ‘Unusual
Disruptions’ in Markets - WSJ
While stocks are having massive sell offs resulting in
huge drops in stock prices, we should be seeing gold prices
spike. We aren't. The price of gold has
dropped. To some financial experts this means that
corporations/companies are going to 'cash' - they are
selling off their gold reserves...they see something coming
in their future that will interfere with their company's
ability to do business. Selling off the gold gives
them the cash they will need in a crisis.
"The coronavirus has the potential to foster a
major liquidity crisis....the system could be on
it's way to freezing up! Certain sectors of the
economy will without a doubt take it squarely on the
chin. Businesses involved in events or dependent on
people gathering or moving about are in peril. Also,
the disruption of production and deliveries will have a
massive effect on business. Many small businesses
simply do no have the financial resources to absorb losses
and weather this storm; the means they will fail. This
will create a large number of defaults on loans to lenders,
suppliers, workers, and landlords. Things such as taxes,
insurance, utilities, loan payments, and more. Those
businesses and people in the weakest condition will be
unable to borrow and this creates the possibility of a
domino effect starting that could ripple through the
financial system. It is difficult to argue this won't
develop into an adverse feedback loop. History shows
that banks have a way of failing us when we need them the
most and that is why liquidity is generally the
first casualty in a financial crisis. This
coupled with supply line disruptions and the reality if
payments are not made goods do not get shipped is most
problematic......
A major liquidity crisis could usher in a period that
will someday be referred to as "The Great Rest" where values
are shaken to their core. In this particular case, it
means that assets such as stocks could take it hard on the
chin and not recover for decades when adjusted for
inflation. The stock market surge in 2008 has
reinforced the myth that stocks always quickly recover,
however, Japan stands as evidence this is not true. With
liquidity on the wane and traders rather nervous, this
might be a bad time to try and catch a "falling knife" a
market axiom for trying to pick the bottom in a falling
market. Be careful out there, and remember
capital
preservation is job one!
The illusion that Covid-19 would be a nothing
burger is beginning to dissipate...
It is said that when 'liquidity drys up cash rapidly
becomes king'. And "Smart money" exists the
market before things get really ugly.
This coronavirus crisis could usher us right into the
Tribulation! Where a day's wages are needed to buy a
loaf of bread. People don't or can't work - there is no
money for food. If there are no loans, farmers can't
plant and harvest the fields. Famine results. If
people and tottering governments become desperate, wars
happen. It's a cascade effect of horrible
dimensions. Ushering in a man who can promise relief -
you can buy and sell again - the antichrist!
If the Rapture isn't in our immediate future - and I hope
it is! We might be living through this health/economic
disaster! We need to be careful and wise.
Remember: God is still on the throne!
Matthew 28:20 And surely I am with you always, even
to the end of the age."
Our hope is in Him. He is coming back for us!
Pray for the peace of Jerusalem!
Maranatha!
Chance