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[Trojita]

https://www.wsj.com/articles/fed-to...nt-unusual-disruptions-in-markets-11584033537

The Federal Reserve said it would inject more than $1.5 trillion of temporary liquidity into Wall Street on Thursday and Friday to prevent ominous trading conditions from creating a sharper economic contraction.

“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 a statement on Thursday

The Fed said it had made the changes for short-term funding markets following instructions from Chairman Jerome Powell, who was in consultation with the rate-setting Federal Open Market Committee.

A deepening rout on Wall Street has fueled strains on financial-market plumbing, putting pressure on the central bank to intervene in a way not seen since the 2008 financial crisis.

“Financial markets are not functioning well, and the liquidity situation is evolving into something that necessitates a broader and stronger response by the Federal Reserve,” said Brian Sack, who ran the New York Fed’s markets desk from 2009 to 2012 and is now the director of economics at hedge-fund manager D.E. Shaw group.

The moves suggest the Fed is shifting toward implementing the type of long-term asset purchases it deployed during and after the 2008 financial crisis, first to restore market functioning and later to spur a faster recovery in employment and output

$ 1, 5 0 0 , 0 0 0 , 0 0 0 , 0 0 0 . 0 0

 

[SLoWMoTIoN]

LMAO

 

[Grinchy]

All because some idiot was eating bats.

 

[Trey]

All because some idiot was eating bats.

gonna be more of this in the short term to mid term, too.

 

[Mr Nash]

Looks like the stock market yawned at this news. Things briefly recovered (and I'm using that word charitably) up to only being around -4%, and then went right back down to -8% or so. At this point, it looks like the market views the Fed as being impotent. I wouldn't be surprised if Powell is gone in the not so distant future.

 

[TyphoonStruggle]

The Fed are fucking retarded

Asset prices were already inflated out the ass because of the Fed. There had to be a correction. Now they doubled down!

 

[off duty ninja]

What does this even mean? Printing money? I am really uneducated in the area of economics.

 

[Vicetrailia]

Funny how we can just create money at will.

We don't even need reserves (isn't this coming from the reserves)

 

[Trey]

Looks like the stock market yawned at this news. Things briefly recovered (and I'm using that word charitably) up to only being around -4%, and then went right back down to -8% or so. At this point, it looks like the market views the Fed as being impotent. I wouldn't be surprised if Powell is gone in the not so distant future.

people are panicking further because they don't understand why this happened, or they think it's an overreaction. any real effect this has will only be felt a month or more from now.

 

[Darkmakaimura]

All because some idiot was eating bats.

Ozzy better get checked out.

 

[Mr Nash]

The Fed are fucking retarded

Asset prices were already inflated out the ass because of the Fed. There had to be a correction. Now they doubled down!

The real doubling down will come when they start buying stocks directly. Regional fed governors have already floated balloons suggesting as much. The Bank of Japan has been doing this for years, so it's certainly within the realm of possibility.

Even if people instantly stopped worrying about COVID, I don't think the markets would calm down. There's still an oil price war going on. The Saudis want market domination, and the Russians want American shale industry bankrupt since those companies were built on a mountain of debt and them going under would reap havoc on US markets. The Russians are taking advantage of what's going on right now to cause as much damage to the US economy as they can.

 

[TyphoonStruggle]

Jerome Powell has a hammer as the Fed Chair. To Jerome Powell there is nothing that can’t be fixed with his hammer.

Jerome Powell: JUST PUMP MORE MONEY

 

[infinitys_7th]

This is a better idea than what Trump suggested with having negative interest rates. That shit is actually retarded and the dumbest thing he has suggested in his presidency.

"We have a recession, so let's make people do bank runs so they aren't charged for the banks holding their money!"

Even if the rest of the economy is fine outside the epidemic responses (it mostly is, as housing is booming) we still have a recession.

 

[Lrnex]

This is a better idea than what Trump suggested with having negative interest rates. That shit is actually retarded and the dumbest thing he has suggested in his presidency

This so much. People with extra cash have been getting railroaded into putting it all in equities for years due to low rates, now equities are blowing up and everyone is getting thrashed. It’s a shit situation but negative or zero rates are sure not going to help it.

 

[SLoWMoTIoN]

All because some idiot was eating bats.

You have any idea how crazy that actually is?

 

[infinitys_7th]

You have any idea how crazy actually is?

But. . .he's right. If China didn't love eating trash (as in literal garbage) like bat anus soup this would never have started.

Next zoonosis epidemic will come from them eating live baby rats.

 

[DunDunDunpachi]

No worries, we'll just have China buy up this debt too in order to legitimize their valueless renminbi, just like the last cash injection.

 

[Thaedolus]

Wait, which party is in power? I need to know whether or not this welfare is good or bad.

 

[brap]

But. . .he's right. If China didn't love eating trash (as in literal garbage) like bat anus soup this would never have started.

Next zoonosis epidemic will come from them eating live baby rats.

Yep

Man eats LIVE rats after dipping them in sauce with wine to wash it down

SICKENING footage shows a man eating live baby rats in China. The grinning diner picks up the wriggling rodents and dips them in sauce before munching them whole. He then washes them down with a gl…

www.thesun.co.uk

 

[DunDunDunpachi]

Wait, which party is in power? I need to know whether or not this welfare is good or bad.

Can it be both bad yet necessary, or are those mutually exclusive?

 

[Punished Miku]

So bailout 2.0? Someone with more knowledge of wall street, how does this all compare to 2008 so far?

 

[Thaedolus]

Can it be both bad yet necessary, or are those mutually exclusive?

Yes it can, and no they’re not.

 

[Amory]

that seems like.....a really bad idea

I mean I'm a moron so i definitely don't know. But that sounds like a dangerous policy that i'm not comfortable with donald trump having any influence over

 

[gatti-man]

So bailout 2.0? Someone with more knowledge of wall street, how does this all compare to 2008 so far?

Liquidity was drying up. As in no money at all for loans. That’s my understanding. All they did was provide liquidity for those markets. And it was needed unless we wanted a 1920s style crash.

people that think this is correction well already fell through correction territory a few days ago. We are well beyond that now.

 

[Azelover]

They're trying their best to keep the situation under control.

However, when the shit REALLY hits the fan, which it will eventually. It's gonna be EPIC!

 

[HarryKS]

What da fuck. Useless paper.

 

[keraj37]

What does this even mean? Printing money? I am really uneducated in the area of economics.

Not printing but simply tapping 1s and 0s into the computer. That is how money is created today after 70s.

Funny how we can just create money at will.

We don't even need reserves (isn't this coming from the reserves)

Yep.

that seems like.....a really bad idea

I mean I'm a moron so i definitely don't know. But that sounds like a dangerous policy that i'm not comfortable with donald trump having any influence over

This will bury US Dollar and inflate already enormous bubbles on Wall Street.

 

[godhandiscen]

Funny how we can just create money at will.

We don't even need reserves (isn't this coming from the reserves)

We have been printing money at will since the Obama legislation. Look up quantitative easing.
These measures are necessary because otherwise the valuation of companies will rot due to panic selling and there will be no jobs to go back to.

 

[off duty ninja]

Huh, if we really want to get rid of antiquated social constructs we should really move past money altogether. The fact that we allow our lives to be dictated by a completely fictional thing is crazy to me. I guess I am economically agnostic.

 

[TyphoonStruggle]

Wait, which party is in power? I need to know whether or not this welfare is good or bad.

The Fed is “non-partisan” and not accountable to voters.

The fact that you don’t know this is concerning.

 

[jshackles]

Feels like they could have spent the same amount of money to just pay off everyone's student loan debt and achieved a similar effect of keeping the economy liquid.

total student loan debt in the us - Google Search

 

[Cunth]

thats like 1 billion per person

 

[#Phonepunk#]

b-but how are they gonna pay for it?

this sounds like one of Bernie's crazy schemes. FREE STUFF is cool i guess if you are the stock market

 

[Azelover]

Wait, which party is in power? I need to know whether or not this welfare is good or bad.

For most of the things that really matter, there is no Democracy. And there hasn't been for a long time.

 

[n0razi]

So much for fiscal responsibility

 

[Master Of Illusion]

That money's gonna be gone by tomorrow.

Govt needs to learn to keep it and business separate (this includes letting businesses fail).

 

[SLoWMoTIoN]

b-but how are they gonna pay for it?

this sounds like one of Bernie's crazy schemes. FREE STUFF is cool i guess if you are the stock market

Print money we don't have.

 

[pennythoughts]

Print money we don't have.

they aren't printing money. they're punching more 0's into a computer.

 

[SLoWMoTIoN]

they aren't printing money. they're punching more 0's into a computer.

Same shit.

 

[008]

The real doubling down will come when they start buying stocks directly. Regional fed governors have already floated balloons suggesting as much..

They can’t

 

[Tesseract]

good

 

[Woo-Fu]

All because some idiot was eating bats.

Chicken of the cave!

On topic: I don't think a planned 1 trillion from the Fed is going to singlehandedly prop up the markets today.

The Fed is “non-partisan” and not accountable to voters.

The fact that you don’t know this is concerning.

Except the chair was nominated by the President(Donald Trump) and approved by the Senate(Republican majority). So probably not really non-partisan and subject to being replaced if he's seen as the main reason Trump is losing approval rating.

 

[TyphoonStruggle]

Except the chair was nominated by the President(Donald Trump) and approved by the Senate(Republican majority). So probably not really non-partisan and subject to being replaced if he's seen as the main reason Trump is losing approval rating.

Doesn’t matter how you feel. Powell was considered a centrist and stable pick for the job.

 

[EightBit Man]

Yeah, in those situations they can roll out so much money. But prior to the situation nothing can be done about the decaying infrastructure, the growing amount of homeless people in America's larger cities, the overall poverty and lack of community, lack of adequate healthcare, people's debt that they cannot get out of, etc.

Fucking scum. America was never free. You have always been mere peasants serving the ruling elite. The whole world could've lived prosperously and people could've had independent incomes ages ago with the technology we had. We've been sold lies, and we bought them.

 

[Woo-Fu]

Doesn’t matter how you feel. Powell was considered a centrist and stable pick for the job.

And it doesn't matter what his political views are(were), it matters where he is and how he got there, and how he remains there. That isn't a feeling about how Washington works, that's a fact. You failed to mention his stint as under-secretary of the treasury for George H.W. Bush. Hmm, think Bush was a Republican too but that might just be a feeling.

He's not appointed for life. It's a 4-year term.

 

[TyphoonStruggle]

And it doesn't matter what his political views are(were), it matters where he is and how he got there, and how he remains there. That isn't a feeling about how Washington works, that's a fact. You failed to mention his stint as under-secretary of the treasury for George H.W. Bush. Hmm, think Bush was a Republican too but that might just be a feeling.

He's not appointed for life. It's a 4-year term.

The fuck are you talking about? It says right there in the second paragraph that he was appointed Fed governor by Obama.

And he closely aligned with Yellen who was nominated Fed chair by Obama.

So... how he got there? By being a Republican who was nominated by a Democratic President working with the Democratic Fed chair and by being seen as a centrist by his colleagues.

How he remains there? Cause he’s already passed nomination he can only remove himself by resigning. He cannot be removed by the President.

 

[Chairman Tickles]

Pumping money into a sickly banking system BEFORE the effects of the virus and ongoing supply chain issues are even known or felt? Watkuldposblygorong

 

[EightBit Man]

uh, if we really want to get rid of antiquated social constructs we should really move past money altogether. The fact that we allow our lives to be dictated by a completely fictional thing is crazy to me.

 

[interactivemonodrama]

 

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