The end?

Discussion in 'COVID-19 Forum' started by Bluejen84, Mar 14, 2020.

  1. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,381 1,254
    What happens if the business folds?

    The probability is that it will take far longer (with additional expenses) to find a new tenant.
     
    Posted: Mar 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #41
  2. fisicx

    fisicx It's Major Clanger! Staff Member

    32,407 9,581
    How about this radical idea...

    All those multi-billionaires use that money to support the less well off.

    There is loads of money available, it’s just all held by the 1%
     
    Posted: Mar 15, 2020 By: fisicx Member since: Sep 12, 2006
    #42
  3. The Byre

    The Byre UKBF Ace Free Member

    9,802 3,968
    Germany has announced that there will be unlimited state credit available to all businesses. Terms are yet to be announced.
     
    Posted: Mar 15, 2020 By: The Byre Member since: Aug 13, 2013
    #43
  4. fisicx

    fisicx It's Major Clanger! Staff Member

    32,407 9,581
    I agree, which is why a rent reduction may be more sensible than suspension.

    We could stop paying corporation tax, vat, NI. There are loads of ways to reduce the burden.
     
    Posted: Mar 15, 2020 By: fisicx Member since: Sep 12, 2006
    #44
  5. UrbanRetail

    UrbanRetail UKBF Regular Free Member

    249 76
    I think I'm in the minority in that, I welcome the demise of multinationals and these huge airlines. Good riddance I say.
     
    Posted: Mar 15, 2020 By: UrbanRetail Member since: Mar 3, 2012
    #45
  6. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,381 1,254
    It needs ALL of the above.

    There will be businesses with not a penny, cent, farthing, shekel going into their business account.
     
    Last edited: Mar 15, 2020
    Posted: Mar 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #46
  7. MY OFFICE IN CHINA

    MY OFFICE IN CHINA UKBF Legend Full Member

    5,381 1,254
    The bigger they are, the harder they fall . . . . .

    Unfortunately, there will be many businesses of all sizes, that will fold due to the impact of this virus.
     
    Posted: Mar 15, 2020 By: MY OFFICE IN CHINA Member since: Nov 16, 2011
    #47
  8. XombiCreative

    XombiCreative UKBF Regular Free Member

    119 33
    Posted: Mar 15, 2020 By: XombiCreative Member since: Dec 20, 2017
    #48
  9. fisicx

    fisicx It's Major Clanger! Staff Member

    32,407 9,581
    I’m assuming you don’t own a car, computer or phone. Don't wear clothes and only eat food from your own garden.

    without multinationals and huge airlines pretty much all trade will cease.
     
    Posted: Mar 15, 2020 By: fisicx Member since: Sep 12, 2006
    #49
  10. SillyBill

    SillyBill UKBF Regular Free Member

    148 60
    The Government debt level when we come out of this recession (and it will be) will be interesting. Western governments socialised the losses of the last recession to stave off the true extent of what the market wanted to do. Patently refused to allow the asset price bubble to burst, massively expanded their central bank balance sheets in doing so, dropped interest rates down to 300+ year lows (which they've been unable to reverse, quelle surprise) and ran deficits throughout an economic expansion to prop up the new normalised "zombie" economy. Solving a debt crisis with more debt.

    How they deal with this one will be telling. If it is massive and sustained quantitative easing/gilt/corporate bond buying it'll again be Wall Street over Main Street. And that will kick the can down the road further on the warm up act we had in 2008/2009. The helicopter money this time around should be directed to SMEs and individual citizens and the difference is they will spend it as they need it = economic activity. Not rampant inflation in stock markets/real estate prices as per last time. The problem they will have to deal with then which they've avoided thusfar is actual inflation in the "real economy". There has been almost none of the expected inflation in 15 years despite massive money printing given the vast majority of debt/currency made its way into the "financialised economy" i.e. asset bubbles. Print money (all government debt is printing in a debt based monetary system) to us plebs and inflation will be on the cards for the first time in a long while. I have mused privately for a while that I think the next recession will be a significant deflationary event followed by rampant inflation over the next economic cycle. Inflation is something central banks think they have tamed over the last 20 years but people with long memories (and lives) will know all too well they can't fight it when it rears its head. I am not sure if the Tories know what is coming but I think the loosening of the purse springs in the latest budget is a realisation that the stimulus this time around will be massive infrastructure spending in the real economy at and inflate the debt away.
     
    Posted: Mar 15, 2020 By: SillyBill Member since: Dec 11, 2019
    #50
  11. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,195 3,743
    You can only do that if there is a contractual clause to allow it.
     
    Posted: Mar 15, 2020 By: Newchodge Member since: Nov 8, 2012
    #51
  12. Newchodge

    Newchodge UKBF Big Shot Free Member

    14,195 3,743
    Did I post that in my sleep? :p
     
    Posted: Mar 15, 2020 By: Newchodge Member since: Nov 8, 2012
    #52
  13. Mr D

    Mr D UKBF Legend Free Member

    22,126 2,604
    You want to be given a boat? Or an apartment? Or how about some shares in royal mail?

    Billionaires often have wealth, not cash.
    Sure, they have an income stream. And probably considerable assets - its the value of the assets that generally make them billionaires.

    How much can you eat an asset?

    Oh and worldwide - odds are you are in the 1%!
     
    Posted: Mar 15, 2020 By: Mr D Member since: Feb 12, 2017
    #53
  14. Mr D

    Mr D UKBF Legend Free Member

    22,126 2,604
    You don't want cheap food, cheap goods, easy shopping, ability to go considerable distance on holiday?

    Don't think its the multinationals that will go under. Think the smaller ones with less reserves, less ability to raise funds, less ability to weather a storm.
     
    Posted: Mar 15, 2020 By: Mr D Member since: Feb 12, 2017
    #54
  15. DontAsk

    DontAsk UKBF Ace Free Member

    1,481 212
    So what would her plan have been had the tenant's business folded during normal times?
     
    Posted: Mar 15, 2020 By: DontAsk Member since: Jan 7, 2015
    #55
  16. Mr D

    Mr D UKBF Legend Free Member

    22,126 2,604
    Think of how bad things could have been if we didn't have all those years of 'austerity'.
    Much bigger debt, much bigger debt payments.
     
    Posted: Mar 15, 2020 By: Mr D Member since: Feb 12, 2017
    #56
  17. The Byre

    The Byre UKBF Ace Free Member

    9,802 3,968
    The debt bubble hanging over businesses and governments is enormous. World wide it is about $200 trillion - yes, trillion!

    Businesses built upon debt are going to either fail or become shadows of their former selves.

    Or as Joan Crawford said "Buckle-up Boys! It's going to be a bumpy ride!"
     
    Posted: Mar 15, 2020 By: The Byre Member since: Aug 13, 2013
    #57
  18. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,522 1,646
    Any particular rationale, or just feel like hating big business?
     
    Posted: Mar 15, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #58
  19. Mr D

    Mr D UKBF Legend Free Member

    22,126 2,604
    Debt isn't necessarily a bad thing for a business. Can help or cripple - timing matters as does how the money is used.
     
    Posted: Mar 15, 2020 By: Mr D Member since: Feb 12, 2017
    #59
  20. Mark T Jones

    Mark T Jones UKBF Big Shot Free Member

    4,522 1,646
    businesses with excessive or inappropriate debt will fail, as was ever the case. However in modal terms the huge level of failure will be in micro businesses (mostly one-man-bands) which are chugging along with no clear purpose no plan and, critically, no reserves, just paying their way month on month

    For a variety of reasons, including various government initiatives, these exist in infinitely greater numbers than in any previous recessionary period.
     
    Posted: Mar 15, 2020 By: Mark T Jones Member since: Nov 4, 2015
    #60