Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

CNBC ^ | 3/15/2020

[immadashell]

If you’re holding any bonds they should do quite well.

If interest rates go to zero selling out in the near future is not a bad idea.

[cp124]

This tells me the downturn will be worse than 911 and it will result in the swamp puppet, Slow Joe Biden, the presidency. The left told the media time to yell fire in the crowded theater and it worked. The swamp is making a comeback.

[TexasGunLover]

Here goes the Fed, monetizing 700 billion in government debt today. Just what the HELL??!

The only parallel from a market perspective and stoppage of the economy is the great depression. We're not facing it, we're in it. These actions, in any other situation would be terrible fiscal policy, at this time, are necessary and may not be enough.

[Trump Girl Kit Cat]

These rates should affect all loans for cars, homes, RV’s it might even bring CC rates down a notch!! I would expect CC companies to start offering 0% interest rates for certain periods of time with great credit scores!! I used to transfer debt from one card to another with offers like this!,,

[nascarnation]

Well if restaurants close, there’s gonna be a lot of food available from wholesale places that supply them. And likely pretty cheap.

[Paladin2]

“Asset prices have been inflated and our budgets haven’t been curtailed. “

Well, there’s that to consider. [Stocks are not an Asset? I suppose not if earnings are in the tank]

[BipolarBob]

No your 401k just went up.

So my airline and cruise line stocks are going back up? Hurray! I'm saved.

[Paladin2]

"you can only go to the well so many times."

Isn't that what they say Qom?

[TexasGunLover]

This tells me the downturn will be worse than 911

You're kidding right? The downturn has already happened... overseas trade was already gone because of the China trade war, BREXIT and as of late the virus.

With everyone sitting at home, we're definitely already looking at the worse downturn since the great depression and may parallel it, and it alone.

[little jeremiah]

If you or anyone else who understands all this and can explain the main import to, for example, a first grader, (ie me) I would appreciate.

[Trump Girl Kit Cat]

Restaurants survive on a very SMALL margin this is horrible mantvwill end up out of business!!

[Vermont Lt]

They should have done nothing.

Protect the people. Let the banks that have over leveraged themselves fail. Don’t lie to us. Two days ago there was a bunch of banker bragging about the systems liquidity. What happened to that?

Who is so highly leveraged they can’t handle a 2 quarter hit? If they can’t...they should fail.

Most large companies weather these storms every 5 to 7 years. The market has become overbought because the Fed kept rates at historical lows.

In my opinion, this is a waste of money.

[4Liberty]

There is too much debt out there. We can and should allow bad loans to be removed by calling them in. Looks like the Fed and Trump will keep printing money to cover banks with insolvent loans, and underfunded public pensions.

If we keep printing money, the inflation tax will be imposed on future generations. It also hurts bond holders who only get a fixed return- as price inflation will continue.

Printing money is a "wealth transfer" process. It makes financial intermediaries wealthy and lowers the cost for present borrowers, but impoverishes those who have saved, and those who will face price inflaton, later.

[cornfedcowboy]

I really wish the Govt would announce a plan to immediately help the folks whose incomes will be zero in a matter of days. Darn near everyone working in the restaurant industry lives paycheck to paycheck. They will be hurt the worst in the short term. And they will need some relief.

[eyeamok]

How exactly does Bailing Out Wall Street Investment Banks and Devaluing Our Money actually Help the Average American Taxpayer??

[Paladin2]

Trump has no shortage of peeps and institutions in his list.

In pretty sure the Fed management has been on his list for a while.

Perhaps as an Institution too. One would have to go back and scan his talk and writings over the last 40 years.

[Fury]

There is too much debt out there. We can and should allow bad loans to be removed by calling them in. Looks like the Fed and Trump will keep printing money to cover banks with insolvent loans, and underfunded public pensions. If we keep printing money, the inflation tax will be imposed on future generations. It also hurts bond holders who only get a fixed return- as price inflation will continue.

Is now the time to do that?

I agree with you - I just am not sure now is that time to let so many businesses fail all at once.

[Truthoverpower]

The looting of the treasury begins! It’s all good All of this focus on this silly little virus has just shown how competent President Trump is - and how he’s 📦 boxed the Democrats into a corner there’s no possible way they can oppose him on this There is no denying how presidential he’s being Biden looks tiny by comparison What can these two idiots the Communists in the corrupt politician possibly say tonight that they would do different? The answer is of course absolutely nothing We still have eight months to go until the actual election and we still have five months to go until the general election season even really starts More popcorn please!

[Red in Blue PA]

I got pick up from a local restaurant about an hour ago (it was empty) and they said business was down 90%.

[janetjanet998]

Tom Winter
@Tom_Winter
NEW: New York City has 329 cases of Coronavirus in total with 5 people dead in total, Mayor announces.