Posted on 03/16/2020 6:41:56 AM PDT by Enlightened1
Stocks fell sharply on Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.
The S&P 500 dropped 8.14% shortly after the open, triggering a circuit breaker trading halt that will last for 15 minutes. The Dow Jones Industrial Average fell 9.7%, or 2,250 points. The Nasdaq Composite slid 6.1%.
Before the open, futures contracts tied to the major averages hit their limit down levels, meaning they could not trade below that threshold. Those limits are imposed by the CME Group to maintain orderly market behavior.
While the central banks actions may help ease the functioning of markets, many investors said they would ultimately want to see coronavirus cases peaking and falling in the U.S. before it was safe to take on risk and buy equities again.
The Fed blasted its monetary bazooka for sure, said Peter Boockvar, chief investment officer at Bleakley Advisory Group. This better work because I dont know what they have left and no amount of money raining from the sky will cure this virus. Only time and medicine will.
(Excerpt) Read more at cnbc.com ...
Thats good, youve got to protect yourself. Dont let anybody ride either, the future of your business could depend upon this. Voice of experience speaking, I had to shut down in 09.
Mortgage rates should drop too, right?
CNBC having a party
We’re going off the rails on a Crazy Train, eh
They already did.
Thanks for sharing this rational perspective.
Because of increased testing we’re going to see a sharp rise in the number of cases but hopefully our mitigation efforts will continue to pay off and keep the mortality rate down.
I had to close up in 2010. The recovery just took too long and I ran out of reserves. After 17 years it was just too much for my small business. This should be over pretty quickly as its 95% manufactured nonsense.
The worst thing about the GOP (at the national level) is their duplicitous lying. Before every election cycle they put on their conservative hat and promise to push our agenda but the day after the election is over they are right back to expanding the government and appeasing the Democrats.
Why is it always Republicans who are “reaching across the isle”? Becuase they have no principles.
Which is why a R majority didn’t get the votes to end RICO Body Mortgage care-Act.
Trump had to do what he could on his own, such as end the penal-ty, and install judges
Good Call ! That would be just like these creeps that hate the US and the President to wipe out only those gains and fix a date in the shepples minds. I'll be watching for that level as a Buy-In point!
The October surprise in March...
The President wanted the FED to make this move a while back and they are just getting around to it. President Trump has talked about refinancing the debt. Expect something on this in the not too distant future. Refinancing a big portion of the debt at near zero rates. 10 year at 1% and 30 year at 1.5% now. Would take a big chunk out of interest on the debt (budget wise). China and other countries seeing their bond values way up and economic challenges will likely cash those bonds in as well. The FED is also buying up a lot of the outstanding debt (around $1T). That essentially takes that interest payment off the table. That is because the FED gets the interest and then sends it back to the government minus a small fee.
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