“I think we are actually at a point of encouraging risk-taking, and that should give us pause. Investors really do understand now that we will be there to prevent serious losses.“
-Current Federal Reserve Chairman Jerome Powell, Oct 2012 FOMC meeting.
An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s.
“We’re giving assistance cheques to 175 million Americans. 175 million Americans. It’s a humungous number.” -Larry Kudlow, Director of the United States National Economic Council.
Today, there are more digital dollars and credit than paper dollars (cash). If too many people want their money in physical cash, the banks can not deliver.
Kristalina Georgieva thinks so.
The Bureau of Labor and Statistics report for initial jobless claims shows a jump to 3,283,000 from 282,000
The wealth that past generations has saved has been consumed. We have eaten our seed corn.
“The Federal Open Market Committee (FOMC) will purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning…”
“We are looking at sending checks to Americans IMMEDIATELY. .. Now, and I mean now. In the next two weeks.” - US Treasury Secretary Steve Mnuchin
The Federal Reserve is printing money to bailout bad car loans, bad mortgages, and insolvent companies.
Cannabis is already legal. The police are just not enforcing the law.
It makes sense considering that less than 50% of Americans have $400 saved for an emergency.
The Fed put out two more announcements in support of QE infinity today.
The Federal Reserve has cut interest rates to near 0% and is printing $700 billion over coming months to buy treasuries and mortgages.
The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York: “The first such purchases will begin tomorrow, March 13, 2020. Today, March 12, 2020, the Desk will offer $500 billion in a three-month repo operation at 1:30 pm ET that will settle on March 13, 2020. Tomorrow, the Desk will further offer $500 billion in a three-month repo operation and $500 billion in a one-month repo operation for same day settlement.”
Oil, Stocks, and Interest Rates are all lower.
Stocks opened up and were stopped out down more than 7% after futures were halted overnight at a loss of 5%.
If you lent money to a country with the most debt in recorded history, would you charge historically low interest rates?
“In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent.“ FOMC 3/3/2020
“Other Central Banks are much more aggressive. The U.S. should have, for all of the right reasons, the lowest Rate.” -President Trump
“We will use our tools and act as appropriate to support the economy.“ -Chairman Powell.
