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NSNP: Market "crash"

Unknown unknowns.

At some point there will be good, reliable data about all that's happening. There will be a response that actually allows progress medically and financially and fiscally.

We don't know when those will come, where they will come from, or how long they'll be there.

Liquidity is now becoming an issue - not because of the markets or availability but because companies are accessing revolving credit facilities.

Good news out of China in that they are now in single digit new cases per day. So about 3 months from start to now. Pretty interesting article and insightful graphs:

timmermanreport.com

Lessons from Italy: How the US Can Respond to the Urgent Coronavirus Threat - TimmermanReport.com

As background: I am Italian-born, and was raised in Italy. My entire family works and lives there, mostly in Milan or nearby areas. I have been communicating with family members about the noval coronavirus for the last month. I have a PhD in Molecular Biology from Geneva, Switzerland, and I have...
timmermanreport.com timmermanreport.com

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Even Warren Buffet has said that this is a first for him - this type of market with these underlying conditions. What will happen cannot be predicted because we have never been here, or anyplace like here, in our lifetimes.
 
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NationalTitles17 said:
Until there is change in the response here the markets will continue to tank. Full stop.
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The reality - the economy has not even touched this yet. When people start to lose jobs, it will fall even further.

This is the first step down a set of stairs.
 
B1GTide said:
The reality - the economy has not even touched this yet. When people start to lose jobs, it will fall even further.

This is the first step down a set of stairs.
Click to expand...

The feds have to give a competent response to stop the slide. A real response that will make a real difference is the only solution to the financial side. The market will still be hurt severely but that's the only chance we have of stopping a freefall.
 
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B1GTide said:
This is really bad for America. Liquidity was not the problem. People are not going to borrow money when they don't know if they will have a job next week. But businesses will take advantage of low interest loans.
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One way it could be helpful for the average Joe is if the US Government moves in like Italy did, unilaterally suspending all mortgage payments.

Doubt we see that, but...
 
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crimsonaudio said:
One way it could be helpful for the average Joe is if the US Government moves in like Italy did, unilaterally suspending all mortgage payments.

Doubt we see that, but...
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Yeah, that aint happening with dump in office.
 
After flushing over a trillion dollars into the cash pool, there's no reason why mortgage (rent) and car payment cannot be put off for the short term. I'm gonna be super-****ed when / if I hear about someone losing their house over being sent home from work.
 
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crimsonaudio said:
After flushing over a trillion dollars into the cash pool, there's no reason why mortgage (rent) and car payment cannot be put off for the short term. I'm gonna be super-****ed when / if I hear about someone losing their house over being sent home from work.
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Started to say it earlier but will now: Add credit cards to the list. Payments can pick back up in a couple of months. The people need as much or more relief than corporations.
 
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BamaNation said:
A Strong reminder that this is the No Politics board. Don’t lose your posting privileges by forgetting where you are.
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This thread and the China COVID thread are ones that could easily be on the other board. Sorry if I forget the board that they are on. I don't work from the "Forums" view - I work from he "New Posts" view.
 
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Breaking News | 3/15/20 @ 5pm EDT :

finance.yahoo.com

Federal Reserve slashes rates to zero, restarts QE in emergency Sunday announcement

Federal Reserve makes announcement before markets open.
finance.yahoo.com finance.yahoo.com

www.wsj.com

Fed Cuts Rates to Near Zero and Will Relaunch Bond-Buying Program

The Federal Reserve lowered its benchmark interest rate to a range of 0% to 0.25% and said it would buy $700 billion in Treasury and mortgage-backed securities in an aggressive bid to prevent market disruptions from aggravating what is likely to be a severe slowdown from the coronavirus pandemic.
www.wsj.com www.wsj.com
 
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Highlights from the WSJ.com link above:

The Fed will buy at least $500 billion in Treasury securities and $200 billion in mortgage-backed securities over the coming months ...

The Fed said it was activating swap lines with five other central banks ....

... lowering the rate charged to banks for short-term emergency loans from its discount window to 0.25% from 1.75%.
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My initial thoughts:

1) Futures markets could go either direction on this.

2) Hopefully businesses needing help will use these funds to support employees and keep folks employed for next 60 days.

3) Hopefully banks will extend the credit lines that the Fed has just enabled them to keep open.

4) Hopefully other central bankers will not be stupid.
 
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My initial thoughts - this is a huge mistake for reasons that I can't say here.
 
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