Posted on 03/15/2020 2:12:17 PM PDT by billyboy15
The Federal Reserve, saying “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” cut interest rates to zero on Sunday and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus.
Facing highly disrupted financial markets, the Fed also slashed the rate of emergency lending at the discount window for banks by 125 bps to 0.25%, and lengthened the term of loans to 90 days.
The Fed also cut reserve requirement ratios for thousands of banks to zero. In addition, in a global coordinated move by centrals banks, the Fed said the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank took action to enhance dollar liquidity around the world through existing dollar swap arrangements.
The banks lowered the rate on these swap line loans and extended the period for such loans. Fed Chairman Jerome Powell is scheduled to hold a press conference via telephone at 6 pm eastern time. The actions by the Fed appeared to be the largest single day set of moves the bank had ever taken, mirroring in many ways its efforts during the financial crisis that were rolled out over several months.
The quantitative easing will take the form of $500 billion of treasuries and $200 billion of agency-backed mortgage securities. The Fed said the purchases will begin Monday with a $40 billion installment.
The Fed cut rates to a new range of 0% to 0.25% from 1% to 1.25% and said it would remain there “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”
(Excerpt) Read more at cnbc.com ...
Well, two birds....
They are terrified of the Market on Monday.
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I am, too...here’s from another thread.
Dow futures down 900...link here to watch all night..
https://www.cnbc.com/pre-markets/
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Well, that to me proves the Left and their billionaire shorting market manipulators are winning. No sports, hoarding, no eating out, everyone scared, including the smart Freepers...if we keep going on this, it will be like the solient green experiments where the rats started eating each other...once we hear of neighbors shooting each other, society will start breaking down, those armored vehicles the municipalities bought will be in the streets, and then governors and PDJT will order lockdown.
it will be - rates soon
Click your post, minus the 1 from the other. the 900 is a joke
can’t anybody do math anymore
23200 - 21800 is 1400
Whoever is behind this mess, needs to be brought to justice
You are going to bring a virus to justice?
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Ah, yes, the totally organic, random, nobody from nowhere virus.
The “reserve” currency (debtor notes), are now MBSs and CDOs, notice that gas prices (and everything else) bottomed out, and never kept decreasing, and before the “hoarding” speak
I don’t order hamburgers but I’m sure many kids do. McDonalds and others have worked hard to maintain price stability in their “dollar menu” items whereas the upper tier stuff has shot upwards price wise. The feature sandwiches are between $5 and $6 in my market. The basement level menu items have shrunk in size and weight while price stays fairly stable.
I agree with your analysis.
If you compare to say White Castle, where the sliders are nearly a buck each now, McD has held the line on price pretty well on that first tier burger.
can’t anybody do math anymore
23200 - 21800 is 1400...
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You are right now...I stole a post from other thread an hour ago, when it was 900.
“ Get ready for another round of inflation.”
Get ready for complete asset deflation across the board. Cash is king.
Not print money.
In case you don't understand how this works, the Federal Reserve purchases Treasury paper (e.g. Bonds) this time on the open market. Let's say they bought a bond that you were holding. They pay you with newly printed Federal Reserve Notes (really this just a computer entry on your bank account) and now you have money to spend that didn't exist before. The Fed holds the Treasury paper as "backing" as if it were gold, but really they are just I-O-MEs. Whenever the paper becomes due, the Treasury must pay back the Federal Reserve and that money ceases to exist. EXCEPT that the Treasury had to print up some new I-O-MEs they just "sold" directly to the FED which created new money just in time.
ML/NJ
Well - it's now showing the utter STUPIDITY of forcing the FED into low-interest rates when we had a great economy and a record-breaking stock market - so that we could push the DOW to new records. It was a stupid move and many of us tried to warn people. I bet they wish they had 2-3 more % to throw at this right about now.
NOW - we are out of interest rates bullets without going negative and the next stop is for the FED to buy stocks and throw Trillions of QE - which EVERYONE HERE was complaining about when Obama did it - but will praise when Trump does it - to save their precious 401k's - knowing we we NEVER EVER pay it back.
And gues what - we're never coming off of 0% - not ever - at least, not while Trump is president. This is the crash many have feared - or it is setting it up.
they had the numbers 23200 21800 900
Ok, thanks...if you need me to be stupid for you, so be it.
it’s not u it’s them doing the math
Actually in this deflation, 1. the prices rise, especially if there job stimulus. 2. Or they will stay the same with job loss.
Remember, these are Bundled CDOs
Keynes is dead.
Long live Keynes!
Print more money. Our grandkids will pay for it
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