/biz/ - Business & Finance

holy fucking shit /smg/ during market hours is fucking awful. it's just a bunch of spam of whatever the current meme is (WTI oil now, apparently). it's like forsen-tier twitch chat for stocks.

>https://www.bloomberg.com//news/articles/2020-03-25/distressed-debt-balloons-to-almost-1-trillion-nears-2008-peak?srnd=markets-vp
>The amount of distressed debt in the U.S. has quadrupled in less than a week to nearly $1 trillion, reaching levels not seen since 2008 as the collapse of oil prices and fallout from the coronavirus shutters entire industries across the globe.

>In total, the tally has ballooned to $934 billion of U.S. corporate bonds that yield at least 10 percentage points above Treasuries and loans that trade for less than 80 cents on the dollar, according to data compiled by Bloomberg. That’s nearly double the amount from less than a week ago.

>The total is probably even higher, because the calculation excludes debt of small-to-medium sized companies whose loans trade rarely, if at all.

>The coronavirus pandemic has caused the worst sell-off since the global financial crisis and deepened stress in credit markets. Driven by some of the lowest oil prices since the early 2000s, the amount of distressed bonds has surged to the highest level since April 2009.

>“What we are seeing now is fast and violent,” unlike the gradual sell-off in the 2007 and 2008 crisis, said Phil Brendel, a senior distressed credit analyst at Bloomberg Intelligence. If the virus isn’t suppressed, even more distress is possible, according to Brendel. “The worst is yet to come,” he said.

oh no bros

why is the market crash such a problem? isn't the stock market more or less based mostly on hype/speculation, and everyone has been saying stocks are way overpriced/overbought/whatever you want to call it, for years now?

isn't this basically just stocks coming back down to earth, instead of going to hell? like, isn't this just stocks being way overpriced and returning to a reasonable price as the bubble bursts? is everyone just mad because muh boomers? but then, haven't boomers been enjoying 10 years of gains so this crash doesn't really hurt them too much and they're just gonna keep DCA'ing anyways?

i don't get it.

>>17458387
i guess i should rephrase that a bit since you misunderstand what im saying. if you work hard all your life, be a good citizen, and save all your life, if you all of a sudden lose your entire life savings at age 60+ because of an oopsie by society, the government will not say "oh sorry bro we fucked up, here is all your money back that's our bad we will fix this". no, you will just lose everything. and... that's it. imagine being old and all of your money vanishes, gone, poof. no one will save you from that. that's my point.

if the government fucks up big time, if even the whole world fucks up big time, no one will save you. you will just be fucked, period. the powers that be won't be the ones to say "yeah we fucked up, you don't actually lose everything". you just lose everything. no one will save you. get it? when you learn enough about the world to realize this fact, and are an adult, it's actually terrifying. when you realize you are well and truly alone in the world, and while living in society is nice, they will not save you in the event of a catastrophe. in fact they will probably save themselves, at the cost of you. they will throw you under the bus so the powers that be can save themselves. they do not have your best interests at heart, when the shit well and truly does hit the fan. no one will save you.

i feel like i shouldn't have to explain in detail why this is terrifying on an existential level, but here we are. you live in a society, but that society will throw you to the wolves if it means they can save themselves if shit goes tits up. "no one will save you" is the most succinct way i can sum it up. imagine living life that way.

>>745211
>tfw this could have happened to me but my parents fucked our lives with a divorce instead