‘Strategy is hard — but it’s worth the effort. Execution is hard, but if the strategy is wrong, at best, it’s not worth the effort.’
The savings rate, which is the percentage of personal income consumers save rather than spend, is at the highest it has been in years. The high savings rate is a reflection of the American peoples’ fear because they do not know the direction the economy is going to take.
Chesapeake has been using financial engineering for the last 8-9 years to try to solve their financial problems. They are approximately 9 billions dollars in debt, and they have to continue to pay interest payments on the long term bond debt as well as other debt that they hold.
COVID-19 has shown the fragile nature of the United States financial system, as well as other countries around the world.