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Old 25th March 2020, 13:19   #136
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I'm not an economist, but I'm trying to understand from a Macro perspective if this bout of virus that has become a pandemic would see China emerge as a global super power? If so how?

Is there a direct proportion between the effect of this virus and China dominating the world economy. Could anyone please throw some light on this?
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Old 26th March 2020, 10:01   #137
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How things are looking for the services industry :
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Effects of Coronavirus on the economy-screenshot_20200326093310_duckduckgo.jpg  

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Old 26th March 2020, 14:03   #138
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Finance Minister press briefing in progress. So far, as is typical of our government, Middle Class gets the short end of the stick as always.
Minimum she could have announced is EMI moratorium for 3 months.

But NO. The middle class is taken for granted. They have to keep mum and pay taxes but are excluded in almost all social welfare scehemes.
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Old 26th March 2020, 14:09   #139
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Default Re: Effects of Coronavirus on the global economy

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Originally Posted by joe1980 View Post
I'm not an economist, but I'm trying to understand from a Macro perspective if this bout of virus that has become a pandemic would see China emerge as a global super power? If so how?

Is there a direct proportion between the effect of this virus and China dominating the world economy. Could anyone please throw some light on this?
I'm not an economist either but yesterday came across below news.

https://timesofindia.indiatimes.com/...w/74815219.cms

Quote:
MADRID: Spain has signed a multi-million-euro contract with China to acquire medical supplies to fight the coronavirus epidemic, health minister Salvador Illa said Wednesday. Worth some 432 million euros ($467 million), the deal will cover 550 million masks, 5.5 million rapid test kits, 950 respirators and 11 million pairs of gloves to address shortages in Spain.
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Old 26th March 2020, 14:11   #140
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Originally Posted by akhil_007 View Post
Finance Minister press briefing in progress. So far, as is typical of our government, Middle Class gets the short end of the stick as always.
Minimum she could have announced is EMI moratorium for 3 months.

But NO. The middle class is taken for granted. They have to keep mum and pay taxes but are excluded in almost all social welfare scehemes.
Be patient for a couple of days. This is already in progress.

https://economictimes.indiatimes.com...w/74819192.cms
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Old 26th March 2020, 14:21   #141
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Minimum she could have announced is EMI moratorium for 3 months.
Need to keep in mind that someone will have to pay, else we know the health of the banking sector. The government isn't going to make good this amount. Most borrowers with EMI should be with the formal sector and I don't think there is any talk of job cuts yet. Of course, some airlines have reduced pay.
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Old 26th March 2020, 14:23   #142
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Default Re: Effects of Coronavirus on the global economy

5 kg wheat or Rice and One Kg Daal for 3 months for BPL families- Garib kalyan package.

Rs 500 per month for certain class

Free gas cylinders under certain class- Ujjwala

Rs 2000 to farmer per qtr as per earlier decided Rs 6000 for full year.

People with EMI, Business owners - free holidays

Last edited by Turbanator : 26th March 2020 at 14:26.
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Old 26th March 2020, 15:23   #143
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Originally Posted by hothatchaway View Post
Need to keep in mind that someone will have to pay, else we know the health of the banking sector. The government isn't going to make good this amount. Most borrowers with EMI should be with the formal sector and I don't think there is any talk of job cuts yet. Of course, some airlines have reduced pay.
Please do not misunderstand. Its not about NOT paying emi. But provide 3 month of No-deduction. Ex: if it was a 5 year loan, the duration will now be 5 years 3 months(calendar dates).

Health of banking sector is not our mistake. They should ideally not socialize the loss by giving this reason.


Regarding job cuts in formal sector(non-IT), indicators are very evident. Employees are asked to utilize their leaves currently. If situation doesn't improve in next month or two, layoffs will start. Even though this might be anecdotal, it's not an outlier given the current situation
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Old 26th March 2020, 16:38   #144
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Originally Posted by akhil_007 View Post
So far, as is typical of our government, Middle Class gets the short end of the stick as always.
Quote:
Originally Posted by Turbanator View Post
5 kg wheat or Rice and One Kg Daal for 3 months for BPL families- Garib kalyan package.
Rs 500 per month for certain class
Free gas cylinders under certain class- Ujjwala
Rs 2000 to farmer per qtr as per earlier decided Rs 6000 for full year.

People with EMI, Business owners - free holidays
5kg wheat: ₹100
One kg Daal: ₹50
Additional pay: ₹500
Gas cylinder: ₹850

Separate for farmers: ₹700 per moth, out of the already allotted welfare, as advance.

Total welfare per household per month: 1500

Tell me, how much of your EMI would be covered with ₹1500? As a part of the middle class or a business owner, when in the foreseeable future will you not be able to afford this stuff?
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Old 26th March 2020, 18:24   #145
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Total welfare per household per month: 1500
It’s a welcome step if that helps. Though I seriously doubt if any one can live a life with this much.

Quote:
Tell me, how much of your EMI would be covered with ₹1500? As a part of the middle class or a business owner, when in the foreseeable future will you not be able to afford this stuff?
You maybe surprised how much relief some small things can bring to the monthly budget/ general mood. I am no expert and neither carry any political affiliations, the least they could have done was some symbolic gestures, say an option to pay reduced or nil EMI on an existing loan. People would have still paid the interest, just that they could have delayed the EMIs in case of loss of income.

Everyone has got an expense in proportion to their earnings, this is true for 99 % and more people. We as Indian society have always kept something for bad days but things have changed a lot in the past few years. Most of the monthly income goes to EMI/ Fixed expenses etc. With stock market, even the people who have invested in stocks or SIP will have troubles.

Small business owners have their shops locked but they still have to pay for rentals, maintenance bills and fixed charges like electricity/ phones/ internet. There was a small industrialists asking government not to levy minimum Electricity charge due to the higher load connection as they cannot run any machines. There will be many such examples.
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Old 26th March 2020, 19:57   #146
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5 kg wheat or Rice and One Kg Daal for 3 months for BPL families- Garib kalyan package.

People with EMI, Business owners - free holidays

The 3 month package is hinting to an extended lockdown beyond 21 days!

While they have announced things, how they will be implemented will be a different game altogether.
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Old 26th March 2020, 21:06   #147
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The US unemployment claims skyrocket to 32Lakh as of today, for comparison 7Lakh filed for unemployment during the 2008 financial crisis.
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Old 26th March 2020, 23:01   #148
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Originally Posted by akhil_007 View Post
Please do not misunderstand. Its not about NOT paying emi. But provide 3 month of No-deduction. Ex: if it was a 5 year loan, the duration will now be 5 years 3 months(calendar dates).
California just announced this and several major banks nationwide in the USA have provided 1 to 3 months waiver in payment of EMIs so you can resume paying after the crisis is over.

https://www.businessinsider.in/polic...h_social_share
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Old 27th March 2020, 00:41   #149
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Default Re: Effects of Coronavirus on the global economy

As usual worse hit are the small business owners. Automotive Dealers type businesses with similar manpower and turnover. No sale. No service. No revenue. Yet we have to support our employees. We cannot leave them in lurch at this time.
And no support for us. Paying between 6 to 10 lakhs for such businesses without a single paisa of revenue will be hard. On top of that interest charged for inventory which will just lie idle. Fixed amount of Bills for Telephone and Internet connectivity which are not going to be used. Cannot stop the phone numbers else would loose them.

Security services payment for an idle business. The business community will be hit hard. Especially small and medium businesses which are people owned and not corporate.
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Old 27th March 2020, 02:10   #150
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Originally Posted by Turbanator View Post
Itís a welcome step if that helps. Though I seriously doubt if any one can live a life with this much.
Quote:
Originally Posted by Turbanator View Post
You maybe surprised how much relief some small things can bring to the monthly budget/ general mood.


Quote:
Originally Posted by Turbanator View Post
There will be many such examples.
Yeah, we're all screwed. But they have to start with the low hanging fruit. Maybe they'll get to where they can alleviate some of our pains, maybe they'll run out before then, but you always start with the low hanging fruit. In this case: food security for a large chunk of an enormous population.
I don't think it's right for us to ask by making a comparison.

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Originally Posted by bluevolt View Post
The 3 month package is hinting to an extended lockdown beyond 21 days!
Not really, they figure that society will be impacted economically for at least three months with current lockdown timeline and situation. Which I think is quite optimistic.
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