03-15-2020, 07:42 PM
** 15-Mar-2020 World View: Federal Reserve press conference
I listened to the Federal Reserve press conference this evening
which, in tune with the times, was held over the phone rather
than in a meeting room.
Lowering the interest rate to 0-0.25% certainly did not achieve the
desired result of calming the markets. To the contrary, US stock
market futures are limit down and stopped trading, and Asian stocks
have been in free fall. The Bank of Japan will hold an emergency
meeting today (Monday) to decide what to do next.
I've been watching the CNBC commentary. The fact that CNBC is still
running live programming on the stock market rout, rather than the
usual Sunday night fare which I gather is usually reruns of old Shark
Tank shows, is by itself proof of high anxiety and chaos in the
financial world.
Steve Liesman made an interesting remark during his commentary. The
subject was follow-on fiscal policy. Powell said that Washington
should implement some fiscal policies to supplement the monetary
policies.
Liesman said that government medical policy is in conflict with
economic policy. Economic policy -- monetary and fiscal -- has the
goal of putting money in people's pockets so that they'll spend it and
the economy will grow. But medical policy is that people shouldn't be
out shopping or attending events, but should be staying quietly at
home to limit spreading of Covid-19. That's an angle I hadn't heard
before.
We're still waiting for an event that hasn't occurred yet but must
occur, as predicted by Generational Dynamics: A full-scale
generational panic leading to a global financial crisis. It might
occur on Monday, or it might not occur for weeks or months.
-- Federal Reserve cuts rates to zero and launches massive $700
billion quantitative easing program
https://www.cnbc.com/2020/03/15/federal-...ogram.html
(CNBC, 15-Mar-2020)
I listened to the Federal Reserve press conference this evening
which, in tune with the times, was held over the phone rather
than in a meeting room.
Lowering the interest rate to 0-0.25% certainly did not achieve the
desired result of calming the markets. To the contrary, US stock
market futures are limit down and stopped trading, and Asian stocks
have been in free fall. The Bank of Japan will hold an emergency
meeting today (Monday) to decide what to do next.
I've been watching the CNBC commentary. The fact that CNBC is still
running live programming on the stock market rout, rather than the
usual Sunday night fare which I gather is usually reruns of old Shark
Tank shows, is by itself proof of high anxiety and chaos in the
financial world.
Steve Liesman made an interesting remark during his commentary. The
subject was follow-on fiscal policy. Powell said that Washington
should implement some fiscal policies to supplement the monetary
policies.
Liesman said that government medical policy is in conflict with
economic policy. Economic policy -- monetary and fiscal -- has the
goal of putting money in people's pockets so that they'll spend it and
the economy will grow. But medical policy is that people shouldn't be
out shopping or attending events, but should be staying quietly at
home to limit spreading of Covid-19. That's an angle I hadn't heard
before.
We're still waiting for an event that hasn't occurred yet but must
occur, as predicted by Generational Dynamics: A full-scale
generational panic leading to a global financial crisis. It might
occur on Monday, or it might not occur for weeks or months.
-- Federal Reserve cuts rates to zero and launches massive $700
billion quantitative easing program
https://www.cnbc.com/2020/03/15/federal-...ogram.html
(CNBC, 15-Mar-2020)
