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Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program
Wingsrule
Posts: 2,983 ✭✭✭✭
Wow.
1
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Wingsrule
Posts: 2,983 ✭✭✭✭
Wingsrule
Posts: 2,983 ✭✭✭✭
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And I am guessing the sell off will continue..
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Holy crap Batman! Who expected that deep of a cut?! Go buy pink houses!
Truly the Fed just doesn’t get it. This is not fundamentally a financial problem and there are not many financial tools available to fix it. Sure, the Fed should be standing by with liquidity, but that’s about all they should be doing. If people are social distancing, QE is not going to fill the malls and restaurants and cruise ships...
only $700 billion?
x1000
Would be better to just transfer into that $$$ into each of our bank accounts so when this does pass we can spend it. BTW---that, along with the 1.5 trillion they announced on Thursday, is about $25k for a family of 4.
Politics can only be stronger than academics for so long.
Knowledge is the enemy of fear
Federal Reserve Actions to Support the Flow of Credit to Households and Businesses
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315b.htm
Coordinated Central Bank Action to Enhance the Provision of U.S. Dollar Liquidity
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315c.htm
Federal Reserve issues FOMC statement
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200315a.htm
despite the actions stock futures are limit down
(limit down would be a good band name)
Who woulda guessed the thriving economy was built on sand. LOL.
Good thing something more serious didn't occur.
Probably a good time for federal regulators to start doing some regulating.
Give Me Liberty or Give Me Debt
Fed = private banking cartel.
QE = debt created by private banking cartel to acquire assets at no cost to them.
Loan sharking at the highest level - debt payments to the banking cartel, paid by working people & companies that actually had to work for it.
I knew it would happen.
Futures markets down 5% with all of this intervention...
My employer and my wifes employer (large insurance/financial services companies) are having us work from home until further notice.
Must be scary for people in the service industry and other professions where they have to interact with the public. Hopefully this gets resolved quickly because this is actually hurting people who just want to go to work and get their paycheck...
Futures hit "limit down," frozen until 4 a.m. premarket trading. Funny how they don't have a limit up when it comes to stocks.
Will the VIX explode even higher?
Give Me Liberty or Give Me Debt
They do....and stocks actually were limit up on Friday morning.
https://www.marketwatch.com/story/dow-futures-soared-5-friday-and-triggered-limit-up-trading-rulesheres-how-that-works-2020-03-13
Knowledge is the enemy of fear
What people haven't talked about is that they cut "thousands of bank reserve rates to 0%. Is that correct or is that just CNBC being stupid?
https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html
"The Fed also cut reserve requirements for thousands of banks to zero."
Uhhhhh..wtf????????????
look for leaders to take/give themselves unprecedented power as they reach panic levels.
Give Me Liberty or Give Me Debt
The dividend cuts should start coming in the next week or so. XOM can’t afford a 10% div, F at 12% is unsustainable.
The Hotel Stock Market: You can check out anytime you want, but you can never leave.
The metals are getting murdered as well, but I'll tell you one thing: this is exactly the reason for holding physical metals and having a decent cash reserve.
Be careful out there. Tread lightly and think before you jump.
I knew it would happen.
FED finally broke the market.
Give Me Liberty or Give Me Debt
Down -2,711 points.
What's the next move, I wonder?
I knew it would happen.
Federal banking agencies encourage banks to use Federal Reserve discount window
https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200316a.htm
This is how fiat money is managed.
@cohodk said "Would be better to just transfer into that $$$ into each of our bank accounts so when this does pass we can spend it. BTW---that, along with the 1.5 trillion they announced on Thursday, is about $25k for a family of 4."
Agree, that is the fundamental point. In fact, a short term somewhat enhanced unemployment program coupled with Fed liquidity is all that is needed to keep things reasonably stable until the virus is under control.
$25K to be used only to pay down debt would be better for the long term. Otherwise, like a two week supply of TP, it's just a band aid.
Give Me Liberty or Give Me Debt
Today’s WSJ op-ed piece “financing an economic slowdown” is quite good.
One quote: “The Fed is deploying its tools from 2008, but this isn’t a bank solvency panic—at least not yet. This is a liquidity panic over how huge chunks of the U.S. economy will stay afloat while American commerce essentially stops.”
In any case, spending a bit of money now would be better than worrying about the national debt. The Fed’s ill suited interventions, however, make no sense at all.
When will we learn to quit depending on the FED to fix problems created by the FED?
Maybe letting it blow up is the best fix.
Give Me Liberty or Give Me Debt
I agree. As one example look at Boeing. Since 2013 they rewarded executives and shareholders with $100B in share buybacks, while borrowing to do so. Now they're looking for corporate welfare.
The Fed is not your friend. Pretty simple.
I knew it would happen.
Dead cat bounce tomorrow Tue..
Another couple weeks of losses it won't matter, my 401k will be gone then what?
The only stock that's up that I'm aware of is CLX.
Federal Reserve Board announces establishment of a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317a.htm
Gold is starting to run, now.
I knew it would happen.
Why would anyone VOLUNTARILY put their own money into a retirement account that they have NO control over? If one does not have the power to make the individual trades, one should at least have two options of moving the money around and one of those options should be out of the stock market. Otherwise the account is a sitting duck.
Give Me Liberty or Give Me Debt
DJIA up ~1100 during the white house conference today where we heard the next trillion dollar action outlined from the fed...
and watching it drop to 500+
The majority of retirement accounts have that ability, along with the ability to roll money into a “self-managed” account which is effectively a brokerage account within a 401k plan. You can also roll money over to another platform or brokerage if you don’t like the GUI.
ERISA rules are in place to prevent co-mingling of retirement funds with companies general accounts, so there really shouldn’t be an issue with any of that.
In the case of such accounts then it's their own fault if their retirement account took a big hit in the downturn. Buy and hold is one thing. Buy and close your eyes is another.
Give Me Liberty or Give Me Debt
"Five hundred billion here, five hundred billion there. You know, pretty soon you’re talking about real money..."
Give Me Liberty or Give Me Debt
Federal Reserve Board announces establishment of a Primary Dealer Credit Facility (PDCF) to support the credit needs of households and businesses
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200317b.htm
Yea... that only works with the so called precious metals complex...
Federal Reserve Board announces establishment of a Primary Dealer Credit Facility (PDCF) to support the credit needs of households and businesses
Get enough people dependent upon your debt and you can get them all to think and vote the way you want.
The Fed is not your friend.
I knew it would happen.
FED trying real hard to be gold's friend. Gold will wake up and realize this.
Give Me Liberty or Give Me Debt
Federal Reserve Board broadens program of support for the flow of credit to households and businesses by establishing a Money Market Mutual Fund Liquidity Facility (MMLF)
https://www.federalreserve.gov/newsevents/pressreleases/monetary20200318a.htm
Airlines spent billions of their cash on stock buybacks, now they want a bailout
Stock buybacks resulted in massive management bonuses
Give Me Liberty or Give Me Debt
Wonder how many Trump haters will send back their stimulus checks?
Wonder how many will want bigger checks?
I wonder if will see another stimulus as well
There are going to be a lot of people unemployed, particularly in the service industry. They and the businesses that employ them are going to be in dire straits, hopefully only temporary. Some of those smaller business will likely not recover. Hopefully we can help them get back on their feet. Bailing out faultless taxpaying victims is not the same as was bailing out greedy, careless banks.
Give Me Liberty or Give Me Debt
How fortunate all these entities don't have to exist on a budget like the average American has to.
When one is drowning one does not care who throws the life preserver.
I urge you to tune in to Greg Mannarino on youtube for his updates. We are pretty much screwed.
I knew it would happen.