FINANCIAL DECISIONS

Recently, I started studying again. I wanted to gain more knowledge in finance when y stumbled with a specialization in the big picture of finance. I wanted to take this course because of the actual status of the world. We are living in a time on which we don't know what the future will depart us, and this is scary because one of the biggest effects that the COVID-19 has created is an economic deceleration on a world wide scale. At first we have to understand that this is due to confinement and all the economic outcomes this has. This is one of the first financial decisions made by leaders within all countries. They had to evaluate what was better. To see which "stake holders" would benefit the most and which would suffer the most. This in order to understand that people might need to get quarantined in order to save life's, and in order to strengthen the medical capacity. This is an optimal decision that costs government a lot of money, but what about the economy? The working engine that provides for the people that is focused on creating value and preventing other problems? This is what is happening right now. Business around the world due to the lock down have been struggling to survive for the meantime, but it has been difficult. They have been forced to make huge decisions such as massive layovers, minimizing production in order to keep the company running, or even liquidating in order to fulfill the responsibilities they have with the stake holders. This has been an overall decision made by governments that has forced us to go through a though path, which will create a lot of unemployment and will cause a more profound recession to occur. This was due to the decisions that governments had to make. They had to choose to save life's in the short run and give a tremendous blow to a worldwide economy, knowing that the recovery time will be hard and long, with a lot of social implications, or to sacrifice a part of the population in order to preserve its economy. In order to keep generating value and avoid people starving to death. We still have to see which of both decisions was the best. Which approach was the mos beneficial. We have to see what will be de future development of the countries that have made their decisions and what their outcome will be.