We can already see how the left will try to make Coronavirus into Trump’s Katrina. Get ready for this to be intensely politicized as a black swan event like this is pretty much their only chance for 2020. They will use this to push universal health care and their talking point will be how much Americans have to pay to get tested for Coronavirus. I already see this talking point being pushed.
It is distasteful to politicize horrific situations like this but we must be prepared with a response. This virus makes a very compelling argument for strong borders and travel bans and we should strongly make that case.
The virus also points to the problem with globalization where our supply chains are dependent on China and shows that we need to keep strategic industries at home. The vast majority of our drugs are produced in China, which is a big problem right now. It is important for America to have a diversified supply chain that is not dependent on China and we want to make sure we keep production capacities for key industries at home for strategic reasons.
This situation is going to have an effect on 2020, let’s do our best to counter their propaganda efforts.
With companies already starting to shift manufacturing away from China, this Coronavirus event just greatly moved up the timeline. Companies would have taken a hit in production delays at some point when they moved, but now they already took the hit and might as well speed up relocation of production. Or at least diversify production and sourcing locations further.
I think it's also a situation where companies stuck fingers in their ears at the potential risks of putting all the eggs in one china manufacturing basket, because of the massive profits. But now it's too obvious an example of poorly diversified sourcing to ignore. Risk management red flags can no longer be swept under the table. This just greatly accelerated the manufacturing migration from china.
A ton of chinese residents are either seeking the koolaid, ignorant or afraid to say anything. I talk to a good amount of vendors for products within China and I get 3 responses nowadays.
I'm waiting till the cny tanks and make a killing, then quarantine any and all products.
A portion of factories are going to be sitting idle as buyers pull out, and the factories are going to be even more price competitive with selling their services. Otherwise they are burning cash with underutilization of their factories.
As a secondary effect, personally I hope for a nice global correction of the real estate market because I believe that to be one of the main things creating a larger wealth gap in the world right now.
Nothing wrong with making money, but inflation is insane right now, and a big part of it is real estate. Every dollar just doesn't go very far right now.