Fed to pump in more than $1 trillion in dramatic ramping up of market intervention amid coronavirus meltdown

CNBC ^ | 3/12/20 | Jeff Cox

[Meatspace]

The Federal Reserve stepped into financial markets Thursday for the second day in a row and the third time this week, this time dramatically ramping up asset purchases amid the turmoil created by the coronavirus.

“These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak,” the New York Fed said in an early afternoon announcement amid a washout on Wall Street that was heading toward the worst day since 1987.

[cymbeline]

My guess is they’ll make that much available but hopefully not much of it will have to be used.

[Dacula]

WTF - Obama Orange?

[Old Yeller]

I’m guessing it won’t do a damn thing. When are people going to stop taking giant losses? Good grief.

[RummyChick]

not helping

everything getting crushed

my face mask stock hasnt gone negative yet

but oxy about to go positive..might be some news

[Dacula]

Record trade deficit and pumping\printing money to prop up the economy.

[RummyChick]

HedgeMind
@HedgeMind
·

$OXY Billionaire hedge fund activist, Carl Icahn, just disclosed his funds have purchased 66.05M shares:
at weighted avg. $14.58/sh for total cost $963M+.
and purchase prices are between $12.68 - $17.11 from 3/9 to 3/11.

Icahn raised his stake by 290%+ to 88.63M or 10% of O/S

[1Old Pro]

Smart money now buying on the panic.

[RummyChick]

gotta go see if I see this elsewhere

Adam Mancini liked
Mystery Trader
@MysteryTrader99
·
26m
“Mystery” Banks Trading desk losses >$300B+ .... that is why $500B emergency REPO was needed...

That is also why it was a drop in the bucket ....

[Meatspace]

“I’m guessing it won’t do a damn thing. When are people going to stop taking giant losses?”

Got to save the Bankers first, just as in 2008.

[gathersnomoss]

Not Shovel Ready 2.0

[lastchance]

The virus did not cause the turmoil. The engineered doomsday reaction to it has.

[Paladin2]

The Treasury and Fed seem to ineffective so far.

[RummyChick]

for the gold question

Holden Braithwaite
@mishegas
·
2h
Replying to
@S_Mikhailovich
and
@JanGold_
A Swiss friend on his conversation with a trading desk of a major Swiss bank - “there are massive margin calls & the customers are selling gold en masse to fund these margin calls.”

Once again speculative ‘leverage’ punishes the long term investor with unbridled instability

[Alberta's Child]

This "Wall Street bailout" is to ensure that banks have enough funds to cover their liabilities.

Would you prefer to have your bank bailed out, or your ATM to be empty?

[Attention Surplus Disorder]

Will be rapidly sold into.

[Alberta's Child]

How is a long-term investor punished by speculative transactions that cause short-term disruptions?

[Zhang Fei]

[One part of the announcement saw the Fed widen the scale for its $60 billion worth of money the Treasury purchases, which to now had been confined to short-term T-bills.

Under the new regime, the Fed will extend its purchases “across a range of maturities” to include bills, notes, Treasury Inflation-Protected Securities and other instruments. The central bank will begin purchasing coupon-bearing securities, something market participants have been clamoring for since late 2019.]

---

The bond market is locking up. The Fed is providing liquidity, as it should, to prevent the implosion of financial institutions that could kick off another Great Depression.

[Lizavetta]

The virus did not cause the turmoil. The engineered doomsday reaction to it has.

Agreed. As if I couldn't loathe the media more with their overly dramatic panic voices. This is so unnecessary and damaging to the economy.