Here Comes the Recession

#604
#604
Well, seems Powell doesn't support negative interest rates or asset purchases after all to fight the virus. Coming next then: A check made directly to you from the Feds along with a note "Vote Trump"?

"President Donald Trump, who has relentlessly demanded Fed rate cuts and more rate cuts, said he was "very happy" with the terrific Fed decision. But while the Fed brought the big guns to the coronavirus bear market, it's using up its bullets.

Fed chief Jerome Powell said he doesn't think negative interest rates are "appropriate" for dealing with the coronavirus. He also won't seek authorization to buy more types of assets, such as stocks. As a result of Sunday's Fed action, the March 17-18 policy meeting will not happen."
 
#605
#605
Now gambling folding. What's next... hookers too?!?

"Parts of the Las Vegas Strip are going dark.
MGM Resorts International and Wynn Resorts will close their Las Vegas properties as of March 17 in light of the coronavirus pandemic.

Wynn Resorts (WYNN) indicated Sunday that it would close Wynn Las Vegas and Encore "as part of its continuing effort to reduce the spread of COVID-19 (coronavirus)."

The company said it expects the closures to be in effect for two weeks, beginning at 6 p.m. Tuesday, at which point the company will assess the situation."

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#606
#606
The market sees the world economy literally grinding to a halt due to illness, closures, and quarantines. Interest rates aren't going to address that. Providing liquidity may help stabilize things afterward, but it's not going to stop panic now. There's no end in sight for the viruses effects and that's what I think is driving it. Numbers of infected are expected to climb bigly now that testing will ramp up significantly. That is only going to make the panic and shutdowns worse.

In one week we went from fully functioning US life to school closures, college closures, professional sports cancelled completely, travel bans, restaurant/bar closures, city curfews, and bans on large groups of people.

Anyone honestly think only 2 weeks will make a significant enough difference to undo all of that?
 
#609
#609
Velo Vol said:
No but if testing ramps up as is promised, in two weeks we might have a better idea when the end is, which as you point out, is part of the problem.
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That I think would do more to calm the panic than anything else.

Here's my current concern. We're not discovering and testing for a virus in it's infant stages. It's got a 3 month head start. With us starting to increase testing now, numbers are just going to jump because there are sick people out there. We know that. Will the city/federal govts give the current actions a chance to have an effect or are they going to propose more economy killing measures just because they see the numbers of cases climbing and thinking nothing is slowing it's spread.

Like I said, we went from concern to shutting down all of the above in less than a week. With very few realistic numbers to go on.
 
#610
#610
TheDeeble said:
Will the city/federal govts give the current actions a chance to have an effect or are they going to propose more economy killing measures just because they see the numbers of cases climbing and thinking nothing is slowing it's spread.
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If you think an Italy-like scenario (i.e., bad) is plausible here, you really can't wait for the numbers. It'll be too late. You've got to close first and crunch numbers later.
 
#611
#611
Dow opens down 2,200.

"
Walking into the NYSE was like walking into a scene of the movie contagion
From CNN Business' Alison Kosik

At the usual metal detectors outside of one wall, I wasn’t greeted my the usual NYPD officer who know me by name. This morning, I was greeted by two people dressed in white lab coats and blue masks, and they asked me if I was going to be on the floor of the NYSE.
They handed me a form and ushered me to the lobby of the building where it was full of those wearing white lab coats and blue masks and gloves.
Again, they asked if I would be on the floor today. And I said, "Yes -- that’s where I do my live reports."
Suddenly I had a thermometer pressed against my forehead and I think the woman under her mask saw that I was startled. She said it’s going to be alright.
My temperature was normal and I was allowed to proceed to the CNN offices upstairs.
Welcome to the new normal at the NYSE."
 
#613
#613
Aged well.

ETPDLbdWoAcRHuS
 
#615
#615
Velo Vol said:
Aged well.

ETPDLbdWoAcRHuS
Click to expand...

The bigger issue here is that any reporting of anything negative, whether the press mentions Trump or not, is seen as some sort of conspiracy against Trump. Therefore, if anything positive happens, these same folks expect the news to come with an explicit endorsement of Trump's re-election bid.

The fact of a world wide pandemic is not a conspiracy against Trump.

Voters will usually give the benefit of the doubt to decisions made in a crisis, especially if the event is unprecedented.
 
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