Political Dog 101

Politics, News, Comments & Other Good Stuff....

Breaking!…Stock market opens 2/28/2020 with drop of 700 points so far….

By

The number is for as I type this at 9:45AM EST

The US Stock Market has dropped 3,500 points THIS WEEK….

The dropping is also been across financial markets around the planet…

The coronavirus panic that sent stock markets tumbling this week has triggered calls for the federal government to intervene, relying on traditional playbooks that the Federal Reserve, Congress and the White House have used in numerous previous crises.

This time, though, the usual approach might not work.

Typically, the Fed responds to economic trouble by lowering interest rates to make credit easier to obtain. It also can offer loans to banks via the “discount window” or buy large quantities of U.S. Treasury securities to offset any general tightening in financial conditions. Congress, meanwhile, can approve new spending or tax cuts to flood the economy with money.

But the best remedy for the coronavirus — which has sickened more than 83,000 people worldwide and killed nearly 3,000 — could lie beyond Washington’s immediate powers.

“Central banks don’t make vaccines,” said David Kotok, chairman of Cumberland Advisors.

Nonetheless, the Fed is facing calls to rescue the economy from an unforeseen shock….

More…

More during the day….

Recent Posts

Reader Interactions

Comments

  1. Dow Jones Industrial Average Index
    Index: DJI · February 28, 10:04 AM EST
    24,689.32
    ▼ 1,077.32 (4.18%)
    ▼ 4,317.44 (14.88%) since closing bell last Friday 21 February

  2. The theory that Trump is setting up Pence to blame for this as an excuse to drop him in favor of Nikki Haley is pretty savage.

    • Trump is savage.

      As to whether Trump is purposefully setting Pence up?While it sounds unlikely, we know Trump is always looking for scapegoats.

      He probably thinks that all this “could” be a problem and he needs someone to blame it all on.He and Pence don’t appear to be that close.

      So, plausible?Definitely.

      • If things go so sideways with the coronavirus that Trump needs to blame it on Pence and dump him from the ticket he’s likely already lost then anyway.

        Putting Nikki Haley on the ticket in that circumstance would be a Hail Mary

        • Haley is showing herself to be a pretty astute politician who ,while dutifully supporting Trump ,is also keeping some distance.

          For instance Trump is in Charleston for a hatefest tonight.

          Nikki is here too for some women’s conference, but has announced she won’t be at Trumps event.

          Hedging her bets?

          • Yeah, one wonders in such a circumstance if Haley would even want to join the ticket.

            Probably have “family reasons” not to.

  3. Like the true Republican he is Trump has an idea to address the economic waters muddied by Coronavirus–cutting the corporate tax rate.

    How that could have any effect on supply chain issues and shortages I don’t know.

    But there’s nothing Republicans won’t throw an upper class tax cut at to see if it works

  5. Mild 200-point recovery (not a rally) over the afternoon:

    Dow Jones Industrial Average Index
    Index: DJI · February 28, 3:58 PM EST
    25,264.69
    ▼ 501.95 (1.95%)
    ▼ 3742.07 (12.90%) since close of trading last Friday the 21st

    Your $40,000 DJI-indexed fund last week lost $5,160 since last Friday and is now worth $34,840.

  6. Small afternoon recovery continues:

    Dow Jones Industrial Average Index
    Index: DJI · February 28, 4:20 PM EST
    25,409.36
    ▼ 357.28 (1.39%)

Discover more from Political Dog 101

Subscribe now to keep reading and get access to the full archive.

Continue reading