Is the stock market going to tank?

[4matic]

^^^even 4% doesn’t get it going. Treasury futures up, rates will move back down.

2-30 could widen quite a bit

The posted rate on the liquid front month will go down but it might be a wide spread on the buy/sell.

[4matic]

Japanese Yen at two year high.

20% range in BTC (not that it means squat)

[4matic]

Powell, "Treasury market illiquid and impaired". "encourage banks to use the discount window"

That's strong words from Fed.

[Benny Profane]

I think they wanted to save the thirty year, but Trump thought it would goose equities for more stupid Twitter dick swinging.

[4matic]

Powell's voice is shaking on the call.

[Brock Landers]

Powell's voice is shaking on the call.

I was thinking the same thing. Hopefully what they’re doing on the liquidity and plumbing side works tomorrow morning. I think they did ok on the rates/ purchases and reserves side.

[shroom]

crazy that so much financial benefit is still centered around having a mortgage in the US, and the assumption they’re ubiquitous in the tax code. waiting on my landlord to pass on that rent relief so i can really get ahead. same fucking game on repeat; help those that are already whole and can’t manage risk. this country is silly.

[Stu Gotz]

The Fed did its part, now congress and the WH have to come out swinging. Predictions for GDP contractions of more than 5% in 2Q. Also, more than whispers that DB is teetering. This is going to interesting.

[4matic]

The Fed did its part, now congress and the WH have to come out swinging. Predictions for GDP contractions of more than 5% in 2Q. Also, more than whispers that DB is teetering. This is going to interesting.

I suppose wh could lift tariffs immediately. The tax cut kinda limits their ability to act.

[4matic]

ASX down 8%

[Benny Profane]

Futures are tanking probably because all Trump could do is talk about the Fed and markets. They're back at him with, no, we have this, you get you sorry ass fixed and attend to this pandemic in proper fashion.

[Harvey44]

Quite a few: 2011, 2016, 2018, 2020 at least 15%

2008 too.

[4matic]

10y opened at .63 down .32 from .95

[4matic]

Nikkei only down 1%. Could be a good sign.

Nikkei turned higher.

[rideit]

Decent analogy of Trump’s fiscal policy...

“ To put it in a cycling analogy Trump was burning matches racing ahead of a smoothly working peleton for photo ops of him leading the pack.He was not taking in food or water cause he was feeling good about the speed he was doing (best ever!). When the inevitable headwinds blow he will have no matches left to burn and the sag wagon is not an option on this ride, gonna be a long painful limp across the line. Who is the economic moron giving Trump these options without actually realising that the last option is usually the one Trump will choose? American carnage stopped on inauguration day.”

It’s not perfect, but I like it.

[muted]

To answer the OP: Yes. Yes it will.

Thanks guys, thread is over now.

[4matic]

10y yield is backing up fast. Still down but we’ll off the lows. Not sure whether that’s good or bad..

[Benny Profane]

Dow futures hit limit down. I want an autograph.

[Brock Landers]

10y yield is backing up fast. Still down but we’ll off the lows. Not sure whether that’s good or bad..

No idea. I’d say it’s better to have rates stable or moving up slowly as opposed to the alternative. But as a one day response to something the Fed did...who knows.

[rideit]

Has anyone photoshopped Trump’s signature onto one of those insane drops last week?

[MultiVerse]

The chart below shows the industry and consumer slowdown in China:



It's probably not entirely analogous but might provide some insight into what's at stake:

Air travel fell by 85%, car sales by 80%
Industrial capacity is only at 40% with addition declines of 10% or more expected
Home sales fell 50-100% (depending on city) in February
Lending has stalled despite authorities' efforts to keep households and businesses afloat
Employers are cutting wages
Only 60% of small businesses are back to work
Exports are in free fall as the coronavirus spreads to the rest of the world
These are just first order, we don't know what the second, third, ... , order effects will be

[Benny Profane]

Well, besides toilet paper and hand sanitizer, I'm guess that they arent getting much in the way of orders.

[Stu Gotz]

We need anticipatory leadership from the top, not Fed bullying and playing catch up. Every day it’s going to get worse. Much worse. We need trillions for small businesses and working people, RIGHT NOW. Personal balance sheets will be decimated in days. There is no time to waste.

[Mazderati]

^ Yes.

[iceman]

Well then we got a problem.