The Stock Market IS NOT gonna stop it’s loses….
(Yesterday things went up a bit…But is only up 50 points as I type this))
It’s lost thousands of points in the last two weeks….
I’m no economist …
But I’m of the view that several things are happening ….
A reaction to China closing down its exports in people’s minds…
The virus fears…
Trump’s China and world trade actions….
Travel restrictions …
Bernie Sanders leading the Democrats….
Donald Trump’s inability to deal with anything except himself…
And his people worried about HIM not anything else
Whatever?
There was a recession lurking and it’s STILL hanging around…
Investor’s ARE jumpy….
And all this cost’s money….
“The coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the [Fed] decided today to lower the target range for the federal funds rate by 1/2 percentage point,” the Fed wrote in a statement.
The Fed’s action reduces the U.S. interest rate to just below 1.25 percent, down from 1.75 percent. Fed Chair Jerome Powell plans to hold a news conference at 11 a.m. on Tuesday to discuss the rare move.
Stocks initially surged on the news, but the Dow Jones industrial average then slide back into negative territory, a reminder of how volatile the situation remains as everyone from doctors to Wall Street traders are trying to get a handle on how much more the coronavirus will spread and how widespread the damage will be.
The last time the Fed made a move like this was after investment bank Lehman Brothers went bankrupt and the global banking system was at risk. The Fed has tried to downplay the risks now — even calling the U.S. economy “strong” in its statement Tuesday — but analysts remain on edge….
The Market has dived back down erasing yesterday’s gains….
-572 points this moment…
Great minds think alike!
Rick Santelli CNBC says consumer prices for imports will be going UP….
Dow Jones Industrial Average Index
Index: DJI · March 3, 4:17 PM EST
25,917.41
▼ 785.91 (2.94%)
▼-2,043.39 (-7.31%) since Monday, Feb. 24
Market closes up 1,100 in approval of Joe Biden’s Super Tuesday
Here’s the deal, folks, Joe just cured the Coronadisease!