Financial Crisis 2020

jack_christie

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Most of the tools used in 2008 to ease financial crash were deployed and the markets went down. Volatility remains a record highs.

U.S. Stock Futures Stay Volatile After Worst Rout Since 1987

S&P 500 plunged most since 1987, Dow fell almost 3,000 points

U.S. stock swung between sizable gains and losses in a choppy opening following the biggest rout in American equities since 1987, as volatility continued to grip financial markets with the coronavirus upending daily life across the country.

In an escalation of the worst turmoil since the 2008 financial crisis, stock markets suffered further sharp losses on Monday despite dramatic action taken by the US central bank late on Sunday in an attempt to limit the economic impact of the coronavirus pandemic.
https://www.bloomberg.com/news/arti...ing-after-worst-rout-since-87?srnd=markets-vp

https://www.bbc.com/news/business-51903195

https://www.theguardian.com/busines...interest-rate-cut-willie-walsh-ba-coronavirus

Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout

Oil’s spectacular collapse deepened as widening global efforts to fight the spread of the coronavirus looked set to trigger the most severe contraction in annual demand in history.

Global benchmark Brent crude fell more than 12.5% after Saudi Aramco’s chief financial officer said the company is “very comfortable” with oil at $30 a barrel. Demand for fuels is falling off a cliff as a result of global restrictions to prevent the spread of virus, with gasoline futures reaching their weakest level since at least 2005.
https://www.bloomberg.com/news/arti...d-cuts-rates-travel-bans-grow?srnd=markets-vp

Stock Market Volatility Tops Financial Crisis With VIX at Record

“In 2008, you pretty much knew it was banking system breaking down, but didn’t know exactly how, and now it’s everything breaking down and how that spills over,” said Steve Sosnick, chief strategist at Interactive Brokers. “The latter is worse, I’d argue -- this is dislocating everything.”
https://www.bloomberg.com/news/arti...ial-crisis-with-vix-at-record?srnd=markets-vp

US goes to almost zero and launches huge stimulus programme

The US has cut interest rates to almost zero and launched a $700bn stimulus programme in a bid to protect the economy from the effect of coronavirus.

It is part of a co-ordinated action announced on Sunday in the UK, Japan, eurozone, Canada, and Switzerland.
https://www.bbc.com/news/business-51901998
 

MWF

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They used to say about financial markets, when the USA sneezes the rest of the world catches a cold.

These days, if China coughs we're all up shit creek without a paddle in a barbed-wire canoe.
 

Dr_Grip

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It is trivial that if we shut down a nation for a quarter it's economy will "shrink" by 25%. This is an extraordinary measure that can only be handled by throwing the liberal free market economy out of the window for a moment, like Boris Johnson for example did with providing 80% of the last paycheck for people whose employment got paused due to corona, echoing similar measures that traditionally have been in place in central and northern Europe.

The main goal for each government, each national economy, has to be to keep as many people as possible in (suspended) employment and solvent so once Corona crisis is over, a significant portion of them still has the spending power to catch up on what they missed out during the lockdown, leading to a quick ("V-Shape") recovery like we've seen after SARS/MERS.

On the other hand, with 30% or more of the populace out of a job and on the dole, one might look at an "L-Shape" - the economy staying at the bottom because there's no spending power left in the populace to kickstart it.
 

jack_christie

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“I’m a little bit more worried than what the consensus of economists out there is right now,” Allianz’s Mohamed El-Erian said this morning

U.S. economy could contract up to 14% in 2020 due to coronavirus crisis



Paycheck Protection Program (PPP)
 

jack_christie

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“What’s needed is not another version of PPP. Again, good intent but it’s the wrong medicine,” the billionaire former Starbucks CEO said on “Squawk Box.” Rather, Schultz said he believes the government needs to create a robust program to serve as a “bridge to a vaccine.” The price tag may be around $1 trillion, he said. “It’s large. I understand it.”
 

jack_christie

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Billionaire Bill Ackman explains how he pulled off a deal described as 'the single best trade of all time'

Ackman, the billionaire hedge-fund investor, turned a relatively modest $27 million position into a prize-winning $2.6 billion in March when the market tanked as the virus spread.

https://markets.businessinsider.com...ingle-best-all-time-podcast-2020-5-1029155100


Who’s Profiting From the Coronavirus Crisis?

Amid an economic catastrophe, a few billionaires are still winning.
https://www.nytimes.com/2020/04/29/opinion/coronavirus-hedge-funds.html?mod=article_inline
 

Momentum57

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Texas back in business? Barely, y'all, as malls, restaurants empty

This illustrates how the reopening plot is economic suicide. Nobody is going to go buy pants at malls. The plot to reopen is prioritizing retail and restaurants. Both will fail as a majority don't want the risk. Thus retail and restaurants will go bankrupt. This will cause banks to have a credit crunch. The banks will limit credit lines of office driven companies which leads to layoffs
 
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Momentum57

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^ to be fair we always knew this was coming for retailers. Hotels and hospitality will follow (I have alot of Bonvoy points I'll lose)

Though my concern is the retail sector lost more people than coal mines PRIOR to this but they got jack shit in way of retraining and job placement programs that the government had wisely passed to help those former coal employees.

With what were seeing with layoffs I can hear the cries of lazy and millennial crybabies already when the workforce begins asking questions of their government.
 
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