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Fed cuts half point in emergency move amid spreading virus

bloomberg.com

121–130 of 499 posts

Re: Fed cuts half point in emergency move amid spreading virus

#121

We are burning all of our fuel to ensure we are running at record levels and when a real problem rears its head, we are going to be dry.

The fallout will either fall on a second term or during someone else's first term. Either way the administration doesn't care.

Re: Fed cuts half point in emergency move amid spreading virus

#122
post #93

From what I gather after spending more time than I'm willing to admit listening to every finance talking head out there, the consensus on the street seems to be that this will result in a temporary market recovery followed by the continued deterioration of stock prices given that fiscal or monetary* policy can't really affect the real economy in the near term* i.e. if the supply chain is indeed impacted due to COVID-…

The incubation period is not 25-30 days. The mean incubation period is 5-6 days, range 1-14 days. Source: Page 12, paragraph 2. https://www.who.int/docs/default-source/coronaviruse/who-chi...

According to this the range is 0-24 days with a median of 3 days. https://www.medrxiv.org/content/10.1101/2020.02.06.20020974v...

Re: Fed cuts half point in emergency move amid spreading virus

#124

Earlier quoted context omitted.

Because someone at the top with a limited grasp of economics but a great understanding of campaigning insisted on it.

The Fed is independent of the Executive except at appointment time.

Like the Judiciary is independent of the Executive and provides a check and balance to its power?

Re: Fed cuts half point in emergency move amid spreading virus

#125
post #110
post #51

For those saying the Fed is running out of ammunition, study what the Bank of Japan has done. It owns close to 80% of the Japanese ETF market currently, with no end to the expansion of balance sheet in sight. After buying long treasuries, it's not unreasonable to imagine the Fed buying stocks, either individual issues or ETFs. The President would be for it, and it would be hard to drum up any opposition to it in cong…

> For those saying the Fed is running out of ammunition, study what the Bank of Japan has done. Oh you mean the economy that has been stagnate for 20 years?

Bingo. We have a winner.

Re: Fed cuts half point in emergency move amid spreading virus

#126
post #51

For those saying the Fed is running out of ammunition, study what the Bank of Japan has done. It owns close to 80% of the Japanese ETF market currently, with no end to the expansion of balance sheet in sight. After buying long treasuries, it's not unreasonable to imagine the Fed buying stocks, either individual issues or ETFs. The President would be for it, and it would be hard to drum up any opposition to it in cong…

Bank of Japan had been achieving new heights of monetary policy year after year for the last 30 years with little impact on real economy.

Re: Fed cuts half point in emergency move amid spreading virus

#127
So every safety in our country and economy is now disabled, air and water regulations food regulations,taxes cut to flatline levels for industry, all in the name of profit. Now the monetary system is being tampered with further.

All reserves are gone. Imagine trying to climb out of this ditch if something really bad happened (like say a million people die).

Re: Fed cuts half point in emergency move amid spreading virus

#128
post #110

Earlier quoted context omitted.

> For those saying the Fed is running out of ammunition, study what the Bank of Japan has done. Oh you mean the economy that has been stagnate for 20 years?

If I were a Japanese retail investor in 1990 in his 30s, what would have been the best strategy? Just stay out of domestic markets and focus on areas with potential for growth?

> what would have been the best strategy?

Put your money into the USA.

Re: Fed cuts half point in emergency move amid spreading virus

#129

This is not solving the problem which is 1) the US is drastically behind in testing the population 2) it will not fix disrupted international supply chains 3) it will not fix liquidity crises at health insurers, hospitals, and life insurers and 4) it will not fix demand if people do not want to go shopping at any price because of non-financial concerns. I presume the Fed knows this, and what worse is this seems to be…

Hey now! SPY is up 0.01% at the news!

Re: Fed cuts half point in emergency move amid spreading virus

#130

This is not solving the problem which is 1) the US is drastically behind in testing the population 2) it will not fix disrupted international supply chains 3) it will not fix liquidity crises at health insurers, hospitals, and life insurers and 4) it will not fix demand if people do not want to go shopping at any price because of non-financial concerns. I presume the Fed knows this, and what worse is this seems to be…

People have faith in the Fed? You are right though, this is political to slow a market correction to where it actually should be. We just keep spinning more plates. What we really need if fiscal policy plans, not monetary. We have so many zombie companies that are on life support and we need to let them die but it won't happen with 0% rates.
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