Well, I guess you weren't trading when the Lehman and Bear Stearns went belly up. That was scary. Anyway, don't wet your pants just yet. It can only get scarier from here on out.
How can it not get scarier? Wasn't the fed fund rate at like 6-7 % when the 2008 bomb hit? They had rates they could cut and stimulus to provide. What do we have left now? The rate is now exactly what it was during most of Obama's term in office, as we were recovering.
During the 2000 crash and 2008 financial crisis business’s were fully operating and injections by the fed helped. This time, business is closed as is the supply chain amd demand is retrenching despite people having money. People are scared and ceo’s have absolutely no visibility. How lower rates will compel people to go out and spend money or business invest in capital despite there being a true health crisis is beyond me. Rates are now zero for all intents and purposes and the fed really cant do much else. If the market keeps dropping what will the fed do ???? How can you wrap your arms around an epidemic we know nothing about and have no idea how bad it can get. Even with the financial crisis you can analyze a balance sheet and assets to see how bad things could actually get and lowering rates would work. This is different. The Trump rally will be completely wiped out. There will be a bottom but i am thinking we take out some more lows first.
I was thinking about this recently. How comical will it be when just 2 months ago, Trump was all "JOBS JOBS JOBS" and "Stock market at highest point in history, you're welcome, enjoy!", but possibly very soon the stock market will be lower than when he was elected? Haha. How will he eat that crow?
This guy doesnt understand that things can come out of left field and crash the market. Further, Trump talked about the stock market WAY TOO MUCH and he overtly got involved with the fed which as a president is unheard of. That was a huge mistake and Powell shouldmof resigned. I do not blame Powell for this. The true problem is the corona virus merely exposed a great vulnerability in the market and thats more of the reason its crashing. This was a fed induced bull market and it was up artificially and bound to crash. You just never knew when. This was a classic game of musical chairs. I am not a credit market expert but i suspect there will be big time problems from that end as well. A surprise weekend fed fund rates reduction to zero screams to the market that the fed is scared to death.
None of this is Trumps fault. Every market on the planet is dropping like a rock due to this over hyped panic.
It is not that the drop is his fault...It is that he took credit for the meteoric rise, but will not accept ANY responsibility for any of the drop. According to him, the rise was all his doing, but the drop had nothing to do with him. Um, like how he canned the health pandemic team over a year ago, turned a blind eye to the spreading covid-19 issue...(Anyone remember the sudden late January/ early Feburary drop in the market and then sudden bounce back, even as we started getting reports of infections first hitting out shores? Hmm!) *shrugs* All water under the bridge now, since we all have the darn thing. Just like how every year everyone gets the stupid rhinovirus, but nobody whines about it the way they do about this Covid thing.
Your posts on this thread are highly irrational. Go back and read them in a year. I'm looking at a virus that is being effectively controlled in Canada and resulted in ONE death so far. And some Americans like you are losing their shit about it only 2-3 weeks after totally dismissing it as a threat.