The outbreak of the coronavirus leaves the global economy hamstrung – and one financier is blasting government response to it as «partly irrational panic and knee-jerk strategies». CVC's managing partner in Germany, Switzerland, and Austria, Alexander Dibelius, has a few controversial ideas of his own.

«Is it right that ten percent of the genuinely at-risk population are spared, but that 90 percent of the entire economy are extremely handicapped, with the possibly dramatic result that the basis for our prosperity is massively, sustainably eroded?,» Dibelius told Germany business outlet «Handelsblatt» (behind paywall, in German) on Tuesday.

Echoing Ex-Goldman Colleagues

Dibelius has orchestrated the buyouts of German perfume chain Douglas as well as that of Swiss luxury watchmaker Breitling since joining London-based CVC in 2015. An ex-partner at Goldman Sachs and McKinsey, he echoed worried comments from other Wall Streeters.

Those include his ex-boss at Goldman, Lloyd Blankfein, who fretted that people should return to work soon to spare an even worse economic fallout.

Extreme measures to flatten the virus “curve” is sensible-for a time-to stretch out the strain on health infrastructure. But crushing the economy, jobs and morale is also a health issue-and beyond. Within a very few weeks let those with a lower risk to the disease return to work.

— Lloyd Blankfein (@lloydblankfein) March 23, 2020

The 60-year-old Dibelius, who began his career as a surgeon, appeared to be an adherent of the herd immunity strategy. This involves allowing parts of society who would likely suffer mild illness from the virus to become immune.

«I'm more afraid of the collective shutdown of the economy and social welfare, conducted with nearly no discussion and with the argument of morality, than I am of the virus itself,» Dibelius said. «I'd rather have a flu than I would a broken economy.» 

«Final Implosion»

His comments were preceded by a subscriber's note from the Germany outlet acknowledging the remarks would be controversial, but that it was publishing them in the interest of public debate. Dibelius noted that the coronavirus pandemic hasn't taken more lives than seasonal flu typically does, but that it is apparently more contagious.

The response of central banks may be helpful now, «but we can't bail out our entire economy forever». «Who is going to pay for this in the long term, when everyone is sitting at home? That would be the final implosion,» he noted.