Stock Markets, Tariffs, Coronavirus

Great Debates
201

And it looks like futures markets agree with me: they no longer trust the fed, but what this really means is that they no longer trust that this mother fucking ape of a president knows what he doesn’t know and to keep his fingers off the controls of the economy.

I said it before, and yes, I will say it again: this country is headed for an economic dip. The question is, how bad will it be, and the answer to that question will depend on the response. Presidents have no control over a recession - in most cases they can’t be blamed for them. But they can be blamed for how they respond. The signs for this president and for this economy are ominous.

202

Congratulations to the GOP for giving America not just the Greatest of Recessions, not just the Greatest of Depressions, but also the current shitshow which will likely need a modifier greater than “Great”.

Ah! I got it!

#TheBiglyDepression

203

I will say that I am a bit surprised (stupid me) as to how quickly Trump ruined the economy. I figured 5 years, 6 at most.

He took 3.

204

Will the market close tomorrow below what it was on 1/19/2017? Hell, will it open below 1/19/2017?

205

Excellent video with a lot of common sense:

Yanis Varoufakis on the economic & political impact of the coronavirus

206

The Bigly Depression is coming. It may already be here.

For reference purposes, here is the state of the market on the last full day of the Obama Administration:

DJIA: 19,742
NASDAQ: 5,543
S&P 500: 22,263
Oil: 52.38
Gold: 1,206
Silver: 17.04

207

Thanks for the link! Common sense … but common sense is often lacking in today’s America. Yanis Varoufakis has a PhD in economics, has published books, has founded a political party (MeRa25 is part of the Democracy in Europe Movement 2025), and has served as Finance Minister.

208

Dow open 2,250 points lower. Down 9.71%. Trading immediately halted.

I’m not 100% on this, but this may be a speed record on halting trading. Last week we had a 4 minute gap between opening and halting, now I’m reading it was halted immediately upon opening.

209

BTW, since Friday, the Fed has injected $2.25 trillion into the markets via QE and RBMS supports, and frankly I don’t know enough about the Repo markets to confidently speak to them, but the injections into those, daily, have equaled our military budget. Yes, each day.

And it’s all vanishing.

210

Trading is resumed and it’s down over 2700.

211

Guys and gals, I think I’m just going to have to wait on that much-needed post 135 update. At least for the duration of the emergency.

212

This may be premature, but I, for one, would like to offer my congratulations to Herbert Hoover.

It took 90-odd years, buddy, but you’re likely no longer on the hook as the President who did the most damage to the American economy.

213

Trump is going to open his yap again this afternoon. I know there is a limit where they stop trading for the day. I wonder if we hit it during his speach.

214

We already hit it. And, if I recall correctly, that’s it for the day - no more circuit breakers.

215

Yeah, he’s great. Most trusted economist.

216

According to Barrons, there is another breaker if the market goes under a 13% decline.

https://www.barrons.com/articles/wall-street-is-bracing-for-another-day-of-big-losses-in-the-dow-51584362387

217

Thanks! I was looking for confirmation, but got called into a meeting.

Also, in a conference call which just ended, USAA… one of the larger insurance companies in America… is looking at going 100% work-from-home.

218

Apparently, the one I was thinking of was a 20% drop in the S&P500 then trading is shut down for the rest of the day.

219

Where are you seeing this? C-Span is saying it’s going to be the Vice President.

220

To the lie which is American capitalism, note that we are a mere 4 weeks from all-time market highs and now we have zero rates, $700B in QE, $500B in repos, and a $1.5 trillion RBMS injection…

… and it’s still not enough to save the system.