This world is decidedly particularly cynical. Last night I watched a report on Swiss café and restaurant owners in full collapse. The forced closure of their establishments is leading them straight to bankruptcy. This risks putting a good number of small independent businesses on the floor and with them their employees. Many sectors of the economy are affected in the same way, all over the world. However, after the first months of the pandemic, the stock market has paradoxically appreciated considerably. The rich have become even richer. And that is an understatement.
Since childhood, we have been told that we have to work to earn a living. However, we see that work and entrepreneurship are ultimately much riskier than the stock market. This is also one of the findings of my e-book. You invest all your savings in a small business, you borrow your retirement assets, you work hard to pay suppliers, your potential employees and in the best case scenario you barely manage to pay yourself a small salary. And in the end everything goes up in smoke because a civil servant somewhere decided that your business had to close. Or because a Chinese lab technician hadn't completely come down from his drunken night the night before.
At the same time, you have Pfizer announcing 90% of success with its vaccine, then Moderna a few days later as if by chance at 94%, and again the next day with Pfizer curiously correcting its figures to 95%. In a week, at this rate, we will have a vaccine that will show more than 100% of success. It's crazy what we do these days. Between us, without wanting to give in to conspiracy theories, it is still surprising that Moderna was introduced on the stock market just a year before the appearance of the virus in China. Chance does things well, for some.
COVID at least has the merit of reminding us that the one who owns the capital will always have the upper hand over the one who offers his labor. Marxist theories still have a bright future ahead of them.
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Eternity is long, especially towards the end.
It must be said that the person who owns the capital...of an oil company...or a hotel company...has had a bit of a rough time...
And when some billionaires have just liquidated their oil businesses... before?
Yes, it's true. So we can't imagine what it's like for its employees...!
For the hotel sector, it must be added that it is drowning in standards, obligations and other regulatory costs, while at the same time it is suffering from competition from AirBnB and others who benefit from conditions that are similar to a breach of equality or even unfair competition. In addition, it is a sector that must constantly invest and get into debt, and which has reached a breaking point. The damage, caused mainly by the unpreparedness and incompetence of the public authorities, will permanently destroy the sector.
As for oil, the movements are more "classic": fall in demand -> fall in price -> fall in prospecting and development of fields -> fall in production -> adjustment of the sector.
As soon as growth really starts up again, and in particular air transport, production will have to be restarted and this will not happen in 3 months. So a barrel at 50/60/70USD and profits on the rise. And the big players, by then, will have made good deals paid for on credit at a reduced rate.
Just Will!