Fed giving markets what it wants: Zero to be Hero & more (QE + swap lines to the usual suspect - BOJ, ECB, etc). Will help but will create distortions once more to bring us another crisis.
Don’t forget that this is a credit crunch & Fed flood markets w/ dollar is limited b/c
Don’t forget that this is a credit crunch & Fed flood markets w/ dollar is limited b/c
Central banks influence the supply of $ & can force market players to lend etc but in a liquidity scarce environment + weak earnings expectations + weak balance sheets, banks unlikely to want to lend to SMEs & shaky households. So? Those who have a lot will get more & vice versa
Just like that we're at zero (reserves at 10bps): the Fed also will be making direct loans to banks around the country so that hopefully they lend to small businesses & families.
No NIRP & no equity purchase for now. No EM swap line either.
No NIRP & no equity purchase for now. No EM swap line either.
Even with JPY at 106.88, Nikkei is still down, by a smudge & US futures fretting global shutdown despite free $$$ from the Fed.
Btw, we get China hard data today & it will tell us what the world will look like in March
Btw, we get China hard data today & it will tell us what the world will look like in March
Just so u know, best case scenario now is U-shaped recovery. By definition, it means more than a few quarters of contraction (V-shaped is just one sharp & short contraction)
RBA ready to purchase Australian government bonds & further policy measures on Thursday
AUD lower!!!
AUD lower!!!
AUD on track to offset foreigner stamp duty w/ the -12% quarter to date decline 😬👇🏻🦘🇦🇺🌏👌🏻
