171–180 of 499 posts
What short term behavior changes do emergency rate cuts cause to boost the economy? Are there capital projects that can get started in weeks, that were previously shelved because the rates were 0.5% too high, but are now viable? What sort of projects would these be?
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…
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” ~ Someone, supposedly Thomas Jefferson Edit: ~ "Thomas Jefferson" changed to "~ Someone…
* No documentation ties it to its putative originator.
* Its earliest known reference did not appear until long after the death of its supposed originator.
* Multiple sources are claimed for its origins.
* Contextual information indicates the words are of more recent origin than claimed. (deflation/inflation)
1. https://www.monticello.org/site/research-and-collections/pri...
2. https://www.snopes.com/fact-check/bank-shot-2/
One of the “Rules of Misquotation” outlined by Ralph Keyes in his 1992 book on that subject is that axiom that “Famous dead people make excellent commentators on current events.” Given the fear and uncertainty engendered by the current economic situation, and the disgruntlement expressed by many Americans at the thought of providing taxpayer-funded government bailouts to financial institutions and other large corporate entities (such as the auto industry), it was only a matter of time until someone trotted out a quotation (apocryphal or otherwise) from a respected, long-dead figure demonstrating that this whole economic mess was both predictable and inevitable. And one could hardly find a more hallowed figure in U.S. history than Thomas Jefferson to deliver this message, warning us from across the centuries that predatory banks and corporations would eventually impoverish us all. [snopes]
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?
GDP per capita doesn't look stagnant: https://tradingeconomics.com/japan/gdp-per-capita
Earlier quoted context omitted.
Prudent move? It's the only move. If it's either that or a recession, then they will do it, consequences be damned.
I disagree. You can maybe delay the inevitable correction, but it is going to come. And after the sugar rush of easy credit ends, the headache will be that much worse. Would it not be better to face some of that pain now?
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…
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.” ~ Someone, supposedly Thomas Jefferson Edit: ~ "Thomas Jefferson" changed to "~ Someone…
Why would this exact scenario regarding growth in the number of cases not play out in the US? The only difference is smaller population, but cities are dense here too.
However, unlike China, I don't think US and other countries will be able to quarantine entire cities.
They only hope IMHO is that the virus becomes less virulent with as summer approaches.
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?
GDP per capita doesn't look stagnant: https://tradingeconomics.com/japan/gdp-per-capita
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-…
> if the supply chain is indeed impacted Is there any question? 80% of the Chinese workforce has been sitting on the sidelines since mid-January. Production is just barely ramping up and I don't think we'll see full capacity until well into April, provided that COVID19 is truly contained/managed. Edit: not sure about the downvotes. Here's a source about Foxconn production: https://twitter.com/onlyyoontv/status/123485…
>The Fed also said in the statement that the “fundamentals of the U.S. economy remain strong.” So why cut the rate? Doesn't make any sense.
Political optics. Current POTUS's claim to success rests, in part, on a high performing financial sector. If the market tanks or stagnates, he no longer has that as a talking point.
If the market tanks, all the talking heads will just blame the upcoming election, and claim that markets and market makers are scared of a Democrat being elected. It doesn't change the talking points for the President at all, I imagine. He still claims the moral victory, if only he hadn't been undercut by those thieves on the other side.
That sort of thing is standard now. Claim success until you can't, then deny any involvement and blame someone else. That's politics, baby.
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-…