This $116B loss is only by airlines. What about the industries supporting the airlines – the catering, car rental, accommodation, events, etc.? If you sum up everything from the other industries, the loss is stunning.
You can find many many articles telling you about layoffs, restructuring, loan default, etc. Take for example, this article below regarding Emirates laying of hundreds of Pilots & cabin crew.
Why then is the stock market rising? From its lowest point about 2 months ago, the stock market has risen about 20-30%. On the other hand, almost every country has announced that it is in recession. Why the disconnect?
I think it is because of free money being provided. Many people are leveraging with the intention to get quick capital gains in the stock market. This has caused introduced significant demand even for stocks that have filed chapter 11. Uninformed individuals find them “cheap” and have been chasing up their prices. This is a very dangerous situation – because banks will end up having bad debts. A spiral effect could bring world economies further down.
If you are an investor, watch out for fundamentals. You can’t decouple intrinsic value and reality.
