Corona Crisis - Hertz files for bankruptcy today
Hi,
today in the news from the Corona crisis battlefield, the first news to pop up in my news tab was that Hertz filed for bankruptcy.
Well, Corona put the last nail on the coffin as the car rental industry was disrupted by the car sharing industry.
We will see some more of this in the next weeks and months. The whole industry as we know it is in a major change.
Corona will just make that the changes will come faster and for sure in another direction as we would have expected. The stock market is fully detached from the reality.
Why do I say that the stock market is detached? Because the money that is pumped into the economy to save it, it is put as a safe heaven into assets and not used as it is supposed to be used, as a launch measure for the economy. People that have money buy shares, gold and silver at the moment.
It was a surprise that Hertz is bankrupt? No, it only surprised me that they filed today for bankruptcy on the weekend. Maybe it was a move to calm people down as the markets will react only on Mondays on this news.
Which is the next big company that will fill for bankruptcy in your opinion? Here I would think an airline that will not get state money.
Ahhhhh. I had heard a couple weeks ago that Hertz was in deep. Here in the US there is a thing: Late Friday announcements of bad news. It's done to give the weekend for people to process it before reacting Monday.
That means that there are 500,000 more used cars on the market today than there were yesterday. Prices and volume were already WAY off. 40% of volume and somewhere near that on prices. The used car business is toasted here.
It'd be a good time for you to buy a C-6 Corvette. Hertz bought 5000 of them just recently....
And yes, the stock market seems completely detached. Record unemployment equals a stock market surge? What?
That would be a good way to park money in not an used C-6. I think it will be a good investment as an oldtimer when the prices drops now.
Yes, the state money issued for recovery is used on stocks now, which is insanity as it's best. Stay safe my friend!
Yes, I have seen they are selling all their Corvettes, but the discount is not that much as I expected it for cars used as rentals, where everyone wants to get the most out of them, for one or two days...