16/03/2020
Fed has made 2nd adjustment again. This has significantly shown that Dow Jones has break 20,000pts since 2017. The last crisis was hovering within 15,000 pts. Over the 3 years @2020, it has reached peak at 29,800pts, this has shown the fundamental support are weak, there are huge financial bubble thus US has to quickly cushion the fall otherwise US economy will melt down immediately as shown in 2 times of the trading halt that happens a week ago.
Without China's import requirement, US market is so fragile.
"Now a flu can kill the world market!"
As compared to China, US has raised its 2nd panic button much faster and can the country sustain Zero interest loan a long period? Free Money? Covid 19 shall stay till the vaccine is out and it may last till end of 2020 or even longer.
This disease dont kill as fast as compared to the fear in people. Businesses will be killed faster.
We personally do not think Fed moves is less effective as it indirectly present the country's weakness and are there any other policy that they can assist the local businesses instead of just cutting interest rate?
For your information,China's central bank, the People's Bank of China (PBOC), has implemented several policy measures aimed at providing monetary stimulus:
On February 3, 2020, the PBOC expanded reverse repo operations by $174 billion. This means that the central bank extended the amount of loans to keep money markets (markets for very short term loans) stable and allow banks to have more cash on hand. It added another $71 billion on February 4.
The PBOC also cut the one-year medium-term lending facility rate (the rate at which it lends to banks) by 0.10% on Feb. 16.
It followed this up by cutting its one-year and five-year prime rates (the rate at which banks lend to the most credit-worthy corporations) by 0.10% and 0.05%, respectively.
The PBOC lowered bank reserve requirements on March 13, freeing up about $79 billion to be lent out.
China has yet to implement massive fiscal stimulus, as it did in 2008 during the global financial crisis or again in 2015 to fight slowing growth. However, the Chinese government has asked banks to extend the terms of business loans and commercial landlords to reduce rents
WASHINGTON: Faced with a growing economic shutdown amid the global new coronavirus pandemic, the Federal Reserve on Sunday (Mar 15) announced ...
