No citations?.....just questions?....with no basis? We can all ask questions all night long....Explain why the Fed had to start printing money in Sept. 2019 before the virus was ever around. Why was liquidity a problem? How was the corporate bond market at that time?
2% is not growth....that barely maintains the status quo.....Obama’s 2009 Recovery Act Kicked Off Over 10 Years Of Economic Growth
Check post #39No citations?.....just questions?....with no basis? We can all ask questions all night long....
2% is not growth....that barely maintains the status quo.....
Hmmmmm....wonder if this had anything to do with it:Check post #39
And read
The Fed has been injecting hundreds of billions into markets since September's rate crisis. Here's why it might not be enough to calm lending conditions. | Markets Insider
The Federal Reserve has been injecting capital into the financial system for weeks to calm money markets. But the actions are prompting worry among analysts, portfolio managers, and even Democratic primary candidates.
The central bank is looking to boosting liquidity after the short-term funding rate spiked to 10% from 2% overnight in mid-September. The rate dictates how expensive it is for banks to access quick capital, and the unexpected jump symbolizes volatility in the usually-stable lending market.
The spike prompted the Fed to start injecting capital through overnight market repurchase agreement operations - also known as "repos" - on September 17. The Fed also began monthly purchases of $60 billion in Treasury bills on October 15 to keep its key interest rate within an intended range.
The Fed - What Happened in Money Markets in September 2019?
Strains in money markets in September seem to have originated from routine market events, including a corporate tax payment date and Treasury coupon settlement. The outsized and unexpected moves in money market rates were likely amplified by a number of factors. First, these events occurred against a backdrop of increased Treasury outstanding and reduced reserve balances. Reserves were at a multi-year low, which reduced liquidity, while Treasuries outstanding were at an all-time high, which led to increased borrowing demand. Second, borrowing demand in the repo market proved to be highly inelastic, which along with the persistence of trading relationships in the triparty segment, led cash borrowers to pay up significantly to secure the funding they needed. Lastly, on the lending side, uncertainty about cash flows and market conditions was a factor contributing to the reluctance of lenders to increase their lending in response to higher rates. For banks, this reluctance may have been exacerbated by frictions due to supervisory and regulatory factors, including their internal risk management practices, which may have prevented them from lending their excess funds to take advantage of higher rates. These factors appeared to have contributed to acute pressures on money market rates in September. Ongoing analysis may help us better understand how pressures emerged and spread across different money markets.
You mean till the pandemic brought it to a halt, right?
Obama Wins The Gold For Worst Economic Recovery Ever
https://www.investors.com/politics/commentary/obama-recovery-is-worst-in-postwar-history/
7 Facts That Show Obama’s Economic Recovery Has Been AWFUL
.....and etc and etc.......
Hmmmmm....wonder if this had anything to do with it:
Fed hikes interest rates, sets three increases for 2019
.....and how does fed rates affect liquidity?.....
Liquidity Is the Lever That Controls Your Finances
Basics of Liquidity
High liquidity occurs when there an institution, business, or individual has enough assets to meet financial obligations. Low or tight liquidity is when cash is tied up in non-liquid assets, or when interest rates are high, since this makes it expensive to take out loans.1 (my bolding)
High liquidity also means there's a lot of capital. Capital is the difference between assets and liabilities. It measures the financial cushion available to an institution to absorb losses. Assets include both highly liquid assets, such as cash and credit, and non-liquid assets, including stocks, real estate, and high-interest loans.
As evidenced by the global financial crisis of 2008, banks historically fail when they lack liquidity, capital, or both. This is because banks can't remain solvent when they don't have enough liquidity to meet financial obligations or enough capital to absorb losses. For this reason, the Federal Reserve has tried to boost liquidity and capital at banks since the global financial crisis.
Sorry, that title is claimed (and verified) to belong to Obama.....spin it as you will....Apparently, rather than having the "best economy in history," as Trump has repeatedly tried to claim, he is merely a part of the "Worst economic recovery ever."
Don't watch the news much?
Now I go to Kroger's and there is a sign that says 'masks required'.....
That is pure speculation on your part. We are a different culture than those other countries where their governments exert far more control over their citizens than we do.....one size DOES NOT fit all.
You do understand that fed rate increases do take some time to filter down to the economy, right? The impact is not immediate (unless you confuse the market for the economy) which tends to have a knee jerk reaction to things.uh-huh, I know some about liquidity.
Your linked article from March 2018 talks about expected rate increases in 2019.
Did the Fed actually increase interest rates this year? nope
Did you not bother to listen to the interview?Did you miss the instructions of the last three months? Of course, if you were listening to the POTUS, I can understand your feigned confusion.
Did you not bother to listen to the interview?
Some time but the increases were not that huge. In fact, the rates were really low in 2018 even with some increase.You do understand that fed rate increases do take some time to filter down to the economy, right? The impact is not immediate (unless you confuse the market for the economy) which tends to have a knee jerk reaction to things.
Yew, we are. The people of Canada dependsAre we that much different, than say, Canada?
Dr. Fauci Made the Coronavirus Pandemic Worse by Lying About MasksI did. And I am well aware of the CDC's (and Fauci's) position in March. At the time, community spread was not thought to be widespread yet in the United States. There was a lot of other information that was unknown at that time, including the fact that up to a third of infected people can spread the virus unknowingly. So when r. Fauci states in his lead sentence:
"The masks are important for someone who is infected to prevent them from infecting someone else"
...he did so in the context in March. It's also a fact there was critical shortage of N-95 mask and people were starting to buy up the supply.
The CDC changed it's position by the beginning of April....yet, we continue to hear Facui said...as if people can't comprehend the advice will change as knowledge increases...
As I said.....spin it as you will.....I wouldn't want to deny Trump the credit for which he is due.
Yep, it sure did. What else would you expect when a significant part of your economy is shut down?....Roses and champagne?U.S. suffered worst quarterly contraction on record
Canada shares 5,250 miles of border with the US and its citizens are allowed to take international flights into the European Union - Americans not so much!Are we that much different, than say, Canada?
The ppe problem was cause by China buying the world supply before anyone knew what was going on. It also did not help that China was the primary maker of masks etc.Eventually they got PPE and vents after Trump finally used the Defense Production act.
Remember?
View attachment 282061
Nurses are wearing garbage bags as they battle coronavirus: ‘It’s like something out of the Twlight Zone’
Kay, a nurse at The Brooklyn Hospital who did not want to give her last name for fear of reprisals from relatives of patients who are not allowed to visit their loved ones, told CBS reporter David Begnaud, who was covered in a hazmat decontamination suit and large face shield. “It’s like something out of the Twilight Zone. I don’t think any of us going through it will ever be the same.”That was in mid April.
“I’d like a mask like yours,” she said. “We should all have masks like yours, and that white suit you have on? What do I have on? What is this?” Begnaud said it looked like she was wearing a garbage bag. Kay replied, "It is a garbage bag.” Another nurse wearing the same kind of transparent trash bag said she took time off with symptoms of coronavirus, and came back to work after recovering.
Why Is There Still a PPE Shortage?
Back in April, after weeks of doctors, nurses, and other health-care workers wearing trash bags for gowns and using takeout containers as face masks, President Trump declared victory over the personal-protective-equipment (PPE) shortage. Complaints about a lack of supplies, he said, were “fake news.” And by May, Trump said masks, gowns, gloves, and other necessities were in “tremendous supply to almost all places.”
Now it’s July, coronavirus cases are surging across the country, hospitals are reaching capacity in hot spots, and complaints about a lack of PPE continue. Four months after it became clear that the U.S. would need an unprecedented amount of medical equipment to see its way through the pandemic, it is still not available.
I think it was going to happen no matter what but not this bad before Covid19. The Fed started printing money last September in order to increase liquidity so that big banks could lend to smaller banks (the repo market it is called, if I have that right).
The economy was being propped up for quite a while, but it was showing problems before Covid19 showed up.
What I fear is that the economy crashes more, and because of all the money printed,
currencies will devalue and inflation will be bad - like in the 70s.
Some friends on Facebook were commenting about having a hard time finding some canning supplies - which reminded me of the 70s and a shortage we had at that time because folks were trying to garden and can more. They were trying to do this, but it is hard without the supplies:
But one needs the way to preserve the food. It was a problem in the 70s and it is a worry if supplies are short. I hope it doesn't all come from China.