Robert Dohner, Senior Non-resident Fellow of The Atlantic Council, shared with us his observations on the recent market swing, #Fed's #MMLF and the US #stimuluspackage of $2 trillion dollars. mp.weixin.qq.com/s/C4HE1iudRsR0…
"This is a far-reaching crisis, and we are entering a global recession as deep as that during the 2008-2009 #GlobalFinancialCrisis, although with luck and good policy it may not last nearly so long. " Dohner said.
According to him, financial markets are also global, not simply in the fact that asset prices have fallen generally across countries, but also because liquidity strains in one market tend to draw funds from other markets.
large price fluctuations indicate markets are under stress, no longer have the depth and #liquidity to easily support desired actions of investors and reluctance of institutional market makers to bear the risk of being willing to buy or sell in the highly uncertain circumstances.
#Centralbanks are no longer “the only game in town” nor are they now the most important.
This is a time when governments must step up, particularly in the United States and in Europe – through direct aid to individuals, through support of public health – as well as through conventional fiscal spending.
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