fxfox Posted March 24, 2020 Report Share Posted March 24, 2020 8 minutes ago, Jorma said: Feel is one thing. It ain't about feelings. If I remember correctly the market swoon dived another 30 or 40% after the FED announced QE back then. So there is hope for bears. Link to comment Share on other sites More sharing options...
Jorma Posted March 24, 2020 Report Share Posted March 24, 2020 Blackrock will manage purchases of bonds, and I presume bond derivatives since the Fed is going to buy bond ETF's, for the Fed. Link to comment Share on other sites More sharing options...
GregFokker Posted March 24, 2020 Report Share Posted March 24, 2020 Biggest one day rally since 1933, they're saying. Link to comment Share on other sites More sharing options...
itiswhatitis Posted March 24, 2020 Report Share Posted March 24, 2020 4 hours ago, fxfox said: It's an illusion. I’m glad the stock market is real. Link to comment Share on other sites More sharing options...
fxfox Posted March 24, 2020 Report Share Posted March 24, 2020 25 minutes ago, GregFokker said: Biggest one day rally since 1933, they're saying. Yep. 1933 aka THE low. Link to comment Share on other sites More sharing options...
DrStool Posted March 24, 2020 Author Report Share Posted March 24, 2020 There's a huge difference between now and 2009. The Fed started direct QE in March 2009. It worked immediately. It started direct QE this time in late September. It worked for a while but the bubble had become so brittle that it collapsed anyway. That was at the end of a 30 month bear market. Psychologically the players were ready.. This on just started. This one faces trillions in new Federal Debt. All other nations area also issuing massive amounts of debt to fund stimulus. So there's QE, and maybe it's starting to work on a delayed basis. Or maybe this is just another countertrend bear market rally, and this is October 30 1929, not March 1933. Which came AFTER the bank holiday. I don't know if this is the bottom or not, but I doubt it. Link to comment Share on other sites More sharing options...
SiP Posted March 24, 2020 Report Share Posted March 24, 2020 Taken together, the programs are considerably more aggressive and have been done in quicker fashion than what happened during the 2008-09 financial crisis. By the time it finishes, the Fed could take its balance sheet to as high as $10 trillion, one anal cyst estimates. https://www.cnbc.com/2020/03/23/fed-is-helping-the-markets-more-than-it-did-during-the-financial-crisis.html Link to comment Share on other sites More sharing options...
SiP Posted March 24, 2020 Report Share Posted March 24, 2020 For some perspective on just how fast the Fed is moving, it intends to purchase $625 billion this week alone. That’s more than the entire $600 billion second leg of quantitative easing that ran for eight months, from November 2010 to June 2011. Link to comment Share on other sites More sharing options...
SiP Posted March 24, 2020 Report Share Posted March 24, 2020 Hoping to escape coronavirus, city dwellers are fleeing to California's deserts and mountains https://www.msn.com/en-us/news/us/hoping-to-escape-coronavirus-city-dwellers-are-fleeing-to-californias-deserts-and-mountains/ar-BB11zHSz Link to comment Share on other sites More sharing options...
DrStool Posted March 24, 2020 Author Report Share Posted March 24, 2020 12 minutes ago, SiP said: For some perspective on just how fast the Fed is moving, it intends to purchase $625 billion this week alone. That’s more than the entire $600 billion second leg of quantitative easing that ran for eight months, from November 2010 to June 2011. That figure must include the alphabet soup shit, which has zero impact on the market. It just bails out hedge funds and asset backed paper issuers. Another disgraceful expansion of socialism for the rich and death for the poor. The end game will be that there's no one left to support those at the top. The structure of society will ultimately collapse and we'll enter another dark age. Link to comment Share on other sites More sharing options...
sandy beach Posted March 25, 2020 Report Share Posted March 25, 2020 End of the world or not I'm not going down without a fight! I'm not about to let a god damned depression ruin my day! All stool reserves are recalled to active duty. Link to comment Share on other sites More sharing options...
potatohead Posted March 25, 2020 Report Share Posted March 25, 2020 34 minutes ago, DrStool said: That figure must include the alphabet soup shit, which has zero impact on the market. It just bails out hedge funds and asset backed paper issuers. Another disgraceful expansion of socialism for the rich and death for the poor. The end game will be that there's no one left to support those at the top. The structure of society will ultimately collapse and we'll enter another dark age. But they tell us they are helping the households and businesses....... Link to comment Share on other sites More sharing options...
fxfox Posted March 25, 2020 Report Share Posted March 25, 2020 6 hours ago, DrStool said: There's a huge difference between now and 2009. The Fed started direct QE in March 2009. It worked immediately. It started direct QE this time in late September. It worked for a while but the bubble had become so brittle that it collapsed anyway. That was at the end of a 30 month bear market. Psychologically the players were ready.. This on just started. This one faces trillions in new Federal Debt. All other nations area also issuing massive amounts of debt to fund stimulus. So there's QE, and maybe it's starting to work on a delayed basis. Or maybe this is just another countertrend bear market rally, and this is October 30 1929, not March 1933. Which came AFTER the bank holiday. I don't know if this is the bottom or not, but I doubt it. Didn‘t the FED introduce some kind of QE in Oct/Nov 2008 or were that just those bailouts for some banks? March 2009 was in my view not after a 30 month long bear, I think it began in Jan 2008, but I get your point that the QE in Mar 09 came after a multi month downmove and that‘s completely different from that what we have right now. The question is why the did start QE again in Sep 19. I think if Trump would not have set the FED under such huge pressure in Dec 18 than there would not have been another QE. I ask myself how all that stimulus and all that debt can be funded without raising taxes, both corporate and personal taxes? All those countries will have to raise taxes, this will reduce private consumption. Taxes per capita will rise and that can‘t be good for the performance of stocks. Link to comment Share on other sites More sharing options...
fxfox Posted March 25, 2020 Report Share Posted March 25, 2020 6 hours ago, DrStool said: The end game will be that there's no one left to support those at the top. The structure of society will ultimately collapse and we'll enter another dark age. There was a time decades ago where CEO‘s knew that their workers have to earn enough so that they are aible to buy their produced stuff, like cars and such. That mindset is long gone. If not before, it began in earnest during Reagan‘s full assult on the union‘s. Link to comment Share on other sites More sharing options...
fxfox Posted March 25, 2020 Report Share Posted March 25, 2020 5 hours ago, potatohead said: But they tell us they are helping the households and businesses....... That means NO collateral? So basically free money? That would be the same like those NINJA loans which led us finally to 2008/09, right? Link to comment Share on other sites More sharing options...
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