The exchanges show the true extent of the crisis

A dispute over Oil between Saudi Arabia and Russia the price of Oil at the weekend to crash – and the stock markets in the world. Because Russia did not want to

The exchanges show the true extent of the crisis

A dispute over Oil between Saudi Arabia and Russia the price of Oil at the weekend to crash – and the stock markets in the world. Because Russia did not want to participate in a restriction of the Oil production to support the price of Oil, have announced the Saudis, almost defiantly, to pump much more Oil out of the ground.

The quarrel, and its consequences are one example of many, such as the spread of the Coronavirus having an indirect effect. She was the one that triggered the collapse in the Oil price, which is why it came in first place for now escalated the dispute between Saudi Arabia and Russia.

Who speaks of Excesses in connection with the Virus, usually only to the direct consequences.

If people don't travel more, no more partying, no more going out and in their homes to hide, you will spend less money for goods and services. That alone, many companies are threatened. Worse still, if Employees fail and precursors is lacking and more expensive. So many bankruptcies threaten the world, and a collapse of the entire economic activity. On this Background, the reaction of the stock markets is not an Exaggeration – and not because of the many uncertainties that exist to the development of the disease.

Who speaks of Excesses in connection with the Virus, often thinks only of its direct consequences. Again and again the statement is heard, the disease was only a risk for the Old and for the most no risk. This view is not only cynical, it is also fundamentally wrong. Mainly because of the indirect consequences. And this is not only a big economic danger of collapsing stock markets and tensions in the international context.

If only a fraction of the population needs to be hospitalized, you can threaten the entire health care.

If countries, regions or individuals hoarding, for example, medical Material and medicines, is not only the Coronavirus is more deadly, but also other diseases, to cure the same Material is necessary. And if a rising fraction of the population needs to be hospitalized, you can threaten the entire health care. Also, the mortality increased in all diseases.

far-reaching measures on the containment of the contagions to be held, especially in the early stage of virus propagation is sometimes exaggerated. Here, too, the consequences are forgotten. Simple potential, expect and experience from China and Italy show the dramatic consequences not only for the health system, but for the whole together, if the Virus spreads unhindered, even if initially only very few are affected by it.

Created: 09.03.2020, 17:30 PM

Updated Date: 09 March 2020, 18:01

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