Black Monday

[bull....]

SSSooo with the USA Fed backing QE, then the stock market is a safe haven (even for small investors) !?

well its a confidence game isnt it , the fed trying to maintain confidence in the markets because they dont want a health crisis and a financial crisis all at once. so i guess us small fry are piggy backing on this. as for the long term time will tell when you look at the size of capitalisation of the markets i dont think the fed can print that much ? history shows in 1929 the biggest bankers got together and propped the stockmarket then too but in the months ahead it only stalled the down ward march. so time will tell. virus cure would negate all negatives i believe

[Leftfield]

Thanks Bull. Agree. We need to keep our eyes and our minds open for all eventualities.

[Balance]

well its a confidence game isnt it , the fed trying to maintain confidence in the markets because they dont want a health crisis and a financial crisis all at once. so i guess us small fry are piggy backing on this. as for the long term time will tell when you look at the size of capitalisation of the markets i dont think the fed can print that much ? history shows in 1929 the biggest bankers got together and propped the stockmarket then too but in the months ahead it only stalled the down ward march. so time will tell. virus cure would negate all negatives i believe

The banks collectively do not and will never have one thing - the ability of the Federal Reserve & Central Banks to print unlimited amount of money.

[bull....]

The banks collectively do not and will never have one thing - the ability of the Federal Reserve & Central Banks to print unlimited amount of money.

the size of the US stock market is 32 trillion , 32 trillion just for the stock market and the bond market is even bigger do you really believe they will print these sorts of figures? by the way the fed is actually scaling back its repo now which was the root cause of the run up in stock prices from october last year. Also stock buy backs wont support prices any longer as its polltically wrong to do that now. So one has to figure out if they believe your view of money printing for ever with the end result being the fed owns most of the financial markets and the disconnect between reality for business and stock prices becomes insane and ultimately tax payers foot the bill for business collapse or the view that the money printing and fed action is just to smooth out the bear and the natural business cycle will take its course.

[Balance]

the size of the US stock market is 32 trillion , 32 trillion just for the stock market and the bond market is even bigger do you really believe they will print these sorts of figures? by the way the fed is actually scaling back its repo now which was the root cause of the run up in stock prices from october last year. Also stock buy backs wont support prices any longer as its polltically wrong to do that now. So one has to figure out if they believe your view of money printing for ever with the end result being the fed owns most of the financial markets and the disconnect between reality for business and stock prices becomes insane and ultimately tax payers foot the bill for business collapse or the view that the money printing and fed action is just to smooth out the bear and the natural business cycle will take its course.

Here's your answer.

https://www.afr.com/markets/equity-m...0200324-p54d8x

Why the Fed went nuclear with QE Infinity

It took eight days for the Federal Reserve to go from QE of $US700 billion ($1.19 trillion) to unlimited buying of bonds to stave off an economic and financial crisis.

Mar 24, 2020

Forget the bazooka. The Federal Reserve has gone nuclear.

[arc]

Here's your answer.

https://www.afr.com/markets/equity-m...0200324-p54d8x

Why the Fed went nuclear with QE Infinity

It took eight days for the Federal Reserve to go from QE of $US700 billion ($1.19 trillion) to unlimited buying of bonds to stave off an economic and financial crisis.

Mar 24, 2020

Forget the bazooka. The Federal Reserve has gone nuclear.

Well, thats going to shoot capitalism in the head...

[Balance]

Well, thats going to shoot capitalism in the head...

We can not control what the Federal Reserve does - we can decide what to do however in response.

Stock markets are up two weeks in a row - ‘don’t fight the fed’!

[Entrep]

We can not control what the Federal Reserve does - we can decide what to do however in response.

Stock markets are up two weeks in a row - ‘don’t fight the fed’!

Or just stay out of the market and get see more data/see where this madness ends? Sounds like a serious case of fomo wouldn't you say?

[moka]

Here's your answer.

https://www.afr.com/markets/equity-m...0200324-p54d8x

Why the Fed went nuclear with QE Infinity

It took eight days for the Federal Reserve to go from QE of $US700 billion ($1.19 trillion) to unlimited buying of bonds to stave off an economic and financial crisis.

Mar 24, 2020

Forget the bazooka. The Federal Reserve has gone nuclear.

Thanks for posting the link Balance. Unfortunately I couldn't access it to find out why the Fed went nuclear with QE Infinity but another site says:

Now, the Fed went totally berserk just within one week from the QE1! It means two things.
First, the previous measures turned out to be ineffective. Told ya so! You cannot stop the health crisis with monetary policy.
Second, the pace and scale of the current crisis is shockingly fast.
But now, the economy is frozen

https://www.fxstreet.com/analysis/wi...d-202003261627

[Balance]

Thanks for posting the link Balance. Unfortunately I couldn't access it to find out why the Fed went nuclear with QE Infinity but another site says:

Now, the Fed went totally berserk just within one week from the QE1! It means two things.
First, the previous measures turned out to be ineffective. Told ya so! You cannot stop the health crisis with monetary policy.
Second, the pace and scale of the current crisis is shockingly fast.
But now, the economy is frozen

https://www.fxstreet.com/analysis/wi...d-202003261627

Article dated 26 March - probably one of the doomsday articles which contributed to markets falling like a stone.

Then, we have had outstanding gains in the last two weeks - so what are the markets telling us?