Black Monday

[sb9]

More stimulus from RBA...

The Reserve Bank of Australia (RBA) has cut its cash rate to just 0.1% from 0.25% and announced a series of other measures aimed at supporting job creation and the recovery of the Australian economy from the COVID-19 pandemic.
The RBA's actions, including quantitative easing through the purchase of up to A$100 billion of federal and state government bonds, include;

• a reduction in the cash rate target to 0.1%
• a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1%
• a reduction in the interest rate on new drawings under the Term Funding Facility for banks to 0.1%
• a reduction in the interest rate on Exchange Settlement balances to zero
• the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months.

https://www.interest.co.nz/news/107796/reserve-bank-australia-committed-doing-what-it-can-support-creation-jobs-cuts-cash-rate

[winner69]

More stimulus from RBA...

The Reserve Bank of Australia (RBA) has cut its cash rate to just 0.1% from 0.25% and announced a series of other measures aimed at supporting job creation and the recovery of the Australian economy from the COVID-19 pandemic.
The RBA's actions, including quantitative easing through the purchase of up to A$100 billion of federal and state government bonds, include;

• a reduction in the cash rate target to 0.1%
• a reduction in the target for the yield on the 3-year Australian Government bond to around 0.1%
• a reduction in the interest rate on new drawings under the Term Funding Facility for banks to 0.1%
• a reduction in the interest rate on Exchange Settlement balances to zero
• the purchase of $100 billion of government bonds of maturities of around 5 to 10 years over the next six months.

https://www.interest.co.nz/news/107796/reserve-bank-australia-committed-doing-what-it-can-support-creation-jobs-cuts-cash-rate

Love how its always said to be stimulus

Never seems to work

[Aaron]

Love how its always said to be stimulus

Never seems to work

Really, have you seen house prices and stock market indexes lately. Looks to be working just fine to me. Not sure what happens as we near 0% interest rates but on the plus side there is no limit to asset prices at negative interest rates.

[peat]

Really, have you seen house prices and stock market indexes lately. Looks to be working just fine to me. Not sure what happens as we near 0% interest rates but on the plus side there is no limit to asset prices at negative interest rates.

Love how its always said to be stimulus

Never seems to work

yes I struggled to see how winner was concluding failure
perhaps by working , he meant getting the standard metrics of an economy upwards, such as GDP, lower unemployment etc. Its hard to know what effect these measures have in those areas, as there is no control.

Or maybe what winner means is that they never say 'Oh look I did the stimulus, and its worked, and now I can remove the stimulus" . Oh thats right they did try that some years after the GFC and markets had a hissy and they got scared and caved.

[Hoop]

We are witnessing one so-called "stimulus" after another..
Hell..we are "stimulating" so hard and so often the rates are going lower and lower into the negatives and there is a flood of available money to boot..yet the economy remains lacklustre and there are asset bubbles bubbling up everywhere..Kinda looks to me the previous "stimuli" have failed to fix the problems...
Actually, adding up all these "stimuli" the result may equal a time bomb..

[bull....]

3200 area on the sp500 is the next support area needed to be tested. sept lows

held the 3200 area support zone and tracking back up at the moment. still in a bigger range at highs though.

[blackcap]

I am really surprised that the markets are up this big. It looks like Biden is going to win a narrow victory but the results are yet undecided. Uncertainly is normally not good for markets but this is a huge rocket taking off.

[Balance]

I am really surprised that the markets are up this big. It looks like Biden is going to win a narrow victory but the results are yet undecided. Uncertainly is normally not good for markets but this is a huge rocket taking off.

No mayhem in the street - big relief.

No change in the status quo in the Senate vs Congress - companies especially tech will continue to escape scrutiny and are free to milk consumers.

Central banks continue to be in control of very very easy money conditions.

[King1212]

I could see huge disappointment here..as many people here are expecting crash...n most are in cash..yet the market is keep getting up...so long people!

[blackcap]

No mayhem in the street - big relief.

No change in the status quo in the Senate vs Congress - companies especially tech will continue to escape scrutiny and are free to milk consumers.

Central banks continue to be in control of very very easy money conditions.

You are right about the Senate and Congress having no change. I suppose the markets like that. But its going to be a contested Presidential election and likely going to the courts with a bunch of re-counts. That creates uncertainty. Central banks ultimately will dictate and yes the easy money will keep equities rising.