Tuesday, February 25, 2020

Steve’s Barking; The canary in the coal mine is Tesla

The Corona virus might be a lot worse the global economy then one believes.
Just think of how much is owed by corporations to banks and bond holders.
Think of corporations not being able to produce enough product to sell and meet its obligations.
Think also if workers aren’t able to work because factories and businesses are shut or at half capacity.
How are the buyers able to buy the product?
I look at Tesla. This company is a prime example of a company that has huge debt and must produce product( electric cars) in high volume and must have customers with the ability to buy their product.
There is a possibility that Tesla will be bankrupt in the near future scaring lenders and bond holders.
What about owners of it’s stock? What about owners of other stocks if it starts selling at less then ten dollars a share? Would there be a major stock panic?

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