What if you triple it? You don't think there will be inflation in consumer goods? Or that it completely takes price discovery out of the credit markets? Creating malinvestment/destroying savings/capital formation.
Potentially wreck the dollar?
We've never done this before so it is all a guess, but how can you pump that much $ into economies and have only minor changes?
At the very least if it works, the MMT people were always right.
Printing $ out of thin air is a luxury to have being the world reserve currency. The inflation threat is always there when they print too much. The Fed easy $ is the root of malinvestment for years. Just look at housing market/shale oil...etc...or Delta/United Airline. They have been using junk bonds to buyback shares, they're collapsing from the shutdown, they now get free $ from the Treasury/ and Fed is bailing out their junk bonds. Insanity.
This is MMT/Bernie Sanders dreamland. We only hope when it's all over, we're not going Zimbabwe.
This is MMT/Bernie Sanders dreamland. We only hope when it's all over, we're not going Zimbabwe.
Relief # 4: $500B - $700B more funding for small businesses and state bailouts expected to vote on Wed/Thu.
They know UE # will continue to rise, earnings will tank, the market can crash back down at any moment so they're willing to counter it with stimulus/bailout measures to the tune of printing about 1/2 T$ a week to keep the market functioning.
And whether we admit or not, PPP/stimulus checks...etc is the form of UBI (Universal Basic Income). They just stop calling it what it is because it has some socialism stigma tie to it. The fact is the US has officially gone socialism when the government imposed the mandatory lockdown.
They know UE # will continue to rise, earnings will tank, the market can crash back down at any moment so they're willing to counter it with stimulus/bailout measures to the tune of printing about 1/2 T$ a week to keep the market functioning.
And whether we admit or not, PPP/stimulus checks...etc is the form of UBI (Universal Basic Income). They just stop calling it what it is because it has some socialism stigma tie to it. The fact is the US has officially gone socialism when the government imposed the mandatory lockdown.
snoop its govt bailing out capitalism, aint the first time. Deficit to hit $3 trillion this year? Ah, remember the 2011 'debt ceiling crisis '? :missingte
after an INSANE week , what's instore for the capital markets ? well she is above her 8 ema. A close below not good. For the upside, as noted the 50 sma is the target : $289 on the SPY
line in the sand: 2714 on the ES. Big number for intra-day moves/support.........................EARNINGS this week, banks r up. Anything grossly disturbing may lead to a LONG red candle on the SPY..............WTI tryibg to re-claim her 8 ema, the fucker has life? Energy sector may continue its run
fun week comin' up
after an INSANE week , what's instore for the capital markets ? well she is above her 8 ema. A close below not good. For the upside, as noted the 50 sma is the target : $289 on the SPY
line in the sand: 2714 on the ES. Big number for intra-day moves/support.........................EARNINGS this week, banks r up. Anything grossly disturbing may lead to a LONG red candle on the SPY..............WTI tryibg to re-claim her 8 ema, the fucker has life? Energy sector may continue its run
fun week comin' up
snoop its govt bailing out capitalism, aint the first time. Deficit to hit $3 trillion this year? Ah, remember the 2011 'debt ceiling crisis '? :missingte
after an INSANE week , what's instore for the capital markets ? well she is above her 8 ema. A close below not good. For the upside, as noted the 50 sma is the target : $289 on the SPY
line in the sand: 2714 on the ES. Big number for intra-day moves/support.........................EARNINGS this week, banks r up. Anything grossly disturbing may lead to a LONG red candle on the SPY..............WTI tryibg to re-claim her 8 ema, the fucker has life? Energy sector may continue its run
fun week comin' up
hangin' on for dear life, lol. It was tested twice; on the futures overnight and during cash hours and formed a hammer on the 5 min....lets see the close.
what does Dimon have to say tomorrow? ...so huge. How can anyone hold overnight with bank earnings tomoorw morning?lol
gdx is threatenng to break a ceiling it hasnt been above since 2013. If it can she can run....like the wind
a week ago;
“We applaud and support the recent actions the U.S. Department of the Treasury and the Federal Reserve have taken to try to mitigate the economic impact of the COVID-19 turmoil,” Dimon wrote. “The Fed's overwhelming actions have already dramatically reduced the financial stress in the system, and there is still more they could do if they need to. For example, balance sheet expansion, additional lending facilities, and changes to capital and liquidity requirements are steps designed to ensure that more capital will flow through the system, which will ultimately allow us to help more families and small businesses. These actions would bolster the U.S. economy with no impact on safety, soundness or regulatory oversight.”
JPMorgan has stopped buying back stock, but doesn’t expect to cut its dividend. Dimon says the company has also run several stress test scenarios, including with variables such as the stock market dropping 50% and unemployment hitting 10%. Even in that scenario, the company’s revenue could drop 20%, but earnings would still be positive. In an “extremely adverse scenario,” which assumes a 35% drop in GDP and unemployment at 14% in the forth quarter of 2020, JPMorgan may consider cutting its dividend
..........
UE 14%?...better get people back to work ..............Mr Dimon is up tomorrow , and let's see if guidance deviates from last week's comments
Coronavirus job losses could total 47 million, unemployment rate may hit 32%, Fed estimates
“We applaud and support the recent actions the U.S. Department of the Treasury and the Federal Reserve have taken to try to mitigate the economic impact of the COVID-19 turmoil,” Dimon wrote. “The Fed's overwhelming actions have already dramatically reduced the financial stress in the system, and there is still more they could do if they need to. For example, balance sheet expansion, additional lending facilities, and changes to capital and liquidity requirements are steps designed to ensure that more capital will flow through the system, which will ultimately allow us to help more families and small businesses. These actions would bolster the U.S. economy with no impact on safety, soundness or regulatory oversight.”
JPMorgan has stopped buying back stock, but doesn’t expect to cut its dividend. Dimon says the company has also run several stress test scenarios, including with variables such as the stock market dropping 50% and unemployment hitting 10%. Even in that scenario, the company’s revenue could drop 20%, but earnings would still be positive. In an “extremely adverse scenario,” which assumes a 35% drop in GDP and unemployment at 14% in the forth quarter of 2020, JPMorgan may consider cutting its dividend
..........
UE 14%?...better get people back to work ..............Mr Dimon is up tomorrow , and let's see if guidance deviates from last week's comments
Coronavirus job losses could total 47 million, unemployment rate may hit 32%, Fed estimates
I don't know if I live long enough to see that. This crisis would strengthen the US dollar further. China always has a trust issue, Europe is barely hanging on. The British/Japs are doing okay, their global trade is not big enough to overtake the US $.
Jerome has more leeway than Bernanke to deal with the crisis. Everyone was shitting on Bernanke for bailing out 'too big too fail' banks. This is different. No one wants to see dead body to pile up at their doorsteps. The backlash is non-existent. The socialism is here to stay.
OIL testing previous low, spooking. IF $19 breaks? look out
ES big numbers- 2789 . Below it now, may have a test of it during cash hours , to be seen if it can reclaim
2714- bearish if it loses it, could see a retrace over time to the top of the previous box 2643 (OR the diagonal line from this retrace from the bottom )
big day for the USD, as fear spikes ...VIX MAY reclaim her 8 ema AND its 50 sma; bearish. Keep an eye
ES big numbers- 2789 . Below it now, may have a test of it during cash hours , to be seen if it can reclaim
2714- bearish if it loses it, could see a retrace over time to the top of the previous box 2643 (OR the diagonal line from this retrace from the bottom )
big day for the USD, as fear spikes ...VIX MAY reclaim her 8 ema AND its 50 sma; bearish. Keep an eye
