WSQ Capital

Washington Square Capital Management

[More Perfect Union @MorePerfectUS]

EXCLUSIVE: Frito-Lay worker Brandon Ingram was severely electrocuted on the job, disabled and denied medical care.

Now Brandon, his wife, and children are being stalked and secretly filmed by company agents.

This is the most disturbing Frito-Lay story we’ve covered.

[Read Jackson Rising @JPHilllllll]

This is what two decades of “reform the police” looks like.

Via @stephensemler

[Dr. Samantha Hancox-Li @perdricof]

my crazy take is that you can't really understand american gender roles unless you understand that they're basically a reactionary backlash / trauma response to the events of world war 2

[WSQ Capital @wsqcapital]

“Our view remains the same as it was in early March. This is not a short-term pause, but rather the end of a business cycle. The size of the exogenous shock suggests to us that the damage will be extensive and could rival the 2008-2009 crisis. “

https://t.co/GqKhyl4EJB

[WSQ Capital @wsqcapital]

@business hear a lot of talk about stock buy-backs, not enough about drop off in 401k inflows when huge numbers of people are laid off.

[felix salmon @felixsalmon]

It's the market's job to absorb losses at a time like this. You're an investor in stocks and bonds, you're taking risks. And the risk of a pandemic is one of the risks you're taking. You're part of the world's stock of loss-absorbing capital. That's what it means to have wealth.

[WSQ Capital @wsqcapital]

Worse yet, there are real fears that COVID-19 could return once social isolation is relaxed.

Of all the people we’ve seen on the news, @elerianm is the one with the best handle on things. Most others are mouthing platitudes.
6/6

[WSQ Capital @wsqcapital]

@BloombergTV Technology @emilychangtv @romainebostick had a "global market strategist" on who made a series of rather unbelievable claims, eg. “We will have an earnings recession, not a GDP recession". This person has not looked at the numbers out of China.1/6

[WSQ Capital @wsqcapital]

For now, there appear to be two options:
- wide-scale social isolation
- universal, free testing (including tests for asymptomatic people, something that is currently unreliable), followed by social isolation for anyone who is contagious.

The impact is not short lived 5/6

[WSQ Capital @wsqcapital]

We do not know what the magnitude of the economic shock the US and global economies will suffer. It does appear though, that large and extensive are the operative words.

https://t.co/jRmJvB6M63

[WSQ Capital @wsqcapital]

Not sure how many businesses could survive and 75-80% drop in revenue.

[Mohamed A. El-Erian @elerianm]

Remember asked a month ago to comment on a multinational's contingency business planning.
The most extreme bad scenario had a 10% hit to revenues
Given the economics of sudden stops, I suggested 75-90%
Speaks to the understandable fact that most companies aren't prepared for this

[WSQ Capital @wsqcapital]

The last few weeks have been history-making for global stock markets, but today was especially notable.

https://t.co/ruLyjBN3O7

[Mohamed A. El-Erian @elerianm]

Thks @lisaabramowicz1
Illustration of #markets starting to wake up to the under-pricing of #LIQUIDITY RISKS.
Many over-stretched for yield, comforted by ample/predictable central bank liquidity.
"Liquid" products proliferated, including for inherently less liquid asset classes.

[Squawk Box @SquawkCNBC]

"We are going into a global recession," says @elerianm. "The trouble with economic sudden stop is it's not easy to restart an economy."

[WSQ Capital @wsqcapital]

“Perhaps the biggest fallout of Mr Trump’s address was what he did not say. His most glaring omission was any plan to increase America’s capacity to test for infections. “ 😳😳😳

[Financial Times @FT]

Donald Trump’s troubling coronavirus address https://t.co/Snx7PjqEXr

[Judd Legum @JuddLegum]

TRUMP TWO WEEKS AGO: "You have 15 people [in the US w/coronavirus], and the 15 within a couple of days is going to be down to close to zero"

TODAY: There are 1,039 confirmed cases of coronavirus in the United States

[WSQ Capital @wsqcapital]

However, a large segment of the US manufacturing and service sectors would be hobbled. This includes most entertainment, food service, travel, manufacturing and retail.

[WSQ Capital @wsqcapital]

Measures to contain the Coronavirus outbreak begin to impact the global economy.

https://t.co/iY1nSuY2Yo

[WSQ Capital @wsqcapital]

If the measures discussed by the CDC were to be implemented in the US, there would be a significant impact on economic activity and by extension corporate earnings. Millions of Americans can telecommute to work and continue to work through such “social isolation”.