The Velocity of money is basically zero. And, as noted in the airline thread, the domino effect is now kicking in.

 

Not yet on the domino effect. We’re still assuming spending/consumption will lead the recovery. I think spending is going to be severely suppressed for the next 18+ months.

 

People are saving money at the highest levels since 1981, which makes me proud of my fellow BGPers in that metric. I’ve been preaching it since March.

 

Love the velocity of money comment. Every dollar put into bank accounts moves through the economy about 1.4 times. 1 dollar of pay spent directly moves through the economy about 5.5 times. So if nobody is spending, we’re running in place.

Warren Buffett just liquidated his airline stocks taking a roughly 3 billion dollar loss. Wow, I feel for anyone in the airline industry on Monday.

Warren Buffett just liquidated his airline stocks taking a roughly 3 billion dollar loss. Wow, I feel for anyone in the airline industry on Monday.

 

Wow, that is an indictment of our modus operandi.

Speaking of airlines, refunds for cancelled flights are few and far between. Only offering credit for future flights up to one year. We went through a travel company and that has been their response to us on our trip to Scotland that was supposed to take place at the beginning of April. Same goes for our hotels.

Speaking of airlines, refunds for cancelled flights are few and far between. Only offering credit for future flights up to one year. We went through a travel company and that has been their response to us on our trip to Scotland that was supposed to take place at the beginning of April. Same goes for our hotels.

 

Think that through, a "favored son" industry telling the minions to pound salt.

Speaking of airlines, refunds for cancelled flights are few and far between. Only offering credit for future flights up to one year. We went through a travel company and that has been their response to us on our trip to Scotland that was supposed to take place at the beginning of April. Same goes for our hotels.

 

Over this past weekend, we had some flights for early June cancelled by Allegiant. I thought I was going to have a big fight on my hands to get a refund so I checked into it a little. The Department of Transportation says that the Airlines have to give you a refund if that's what you request. After a long wait on hold I got to a customer service agent and there was no issue getting the refund back to my credit card. There are some exceptions for travel agencies but essentially you can ask them to ask for a refund for you.