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Fed Cuts Interest by .50 % Market Goes Down?

serfserf Member Posts: 9,217 ✭✭✭✭
edited March 2020 in Politics
 Yep, The Corona 19 Virus is The Black Swan for The Stock Market and The Fed's have spent all their ammo for the fake run up in market the last 10 years.Savers got very little while consumers got Chinese products and the voter got all the debt and the rich all the money!  
Of course now The Middle class will be severely affected as the layoffs begin in earnest from international corporations. It's the reverse trickle down theory they never mention in the economics class. It's the perfect black storm for the black swan.
                                                           serf
         https://www.cnbc.com/2020/03/03/fed-cuts-rates-by-half-a-percentage-point-to-combat-coronavirus-slowdown.html

At a news conference later, Chairman Jerome Powell said the Fed took action after officials saw the coronavirus was having a material impact on the economic outlook.

“The magnitude and persistence of the overall effect on the U.S. economy remain highly uncertain and the situation remains a fluid one,” he told reporters. “Against this background, the committee judged that the risks to the U.S. outlook have changed materially. In response, we have eased the stance of monetary policy to provide some more support to the economy.”

             https://www.wsj.com/articles/for-growing-numbers-of-struggling-u-s-cities-the-downturn-has-arrived-11583248603

                               Fallout from the coronavirus disease on the U.S. economy and city budgets is another potential setback. In the past week, New York City has held daily meetings of pension advisers, and California put out a warning to prospective municipal bond investors.

Over the 12 months ending in November, 28 metropolitan areas in the Midwest lost manufacturing jobs, according to the Bureau of Labor Statistics, including Detroit, Youngstown, Ohio, and Louisville, Ky.




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