Skip to main content

Reply to "Coronavirus now poses “very high” risk at global level -WHO"

Baseman posted:
Katahar posted:
Baseman posted:

Trump will stabilize the US and the world.

How? By forcing the FED to lowering intetest rates?

How does lowering rates fixes COVD-19?

Yes, does not fix the virus problem but compensates for lower EPS growth due to the slowdown.  It will bring back some liquidity which has left. Furthermore, the 10 year collapsing so short term could come down and avoid inversion.

Bai, your economic credentials are now seriously under question.
Bond markets already expect a cut in US interest rates, but rates are already below 1% in much of the western world. Cheaper money doesn’t help an otherwise strong US manufacturer that only needs a bespoke component that is stuck in a closed Chinese factory.
Liquidity means absolutely nothing when you can't get your parts, customers willing or unable to travel, or get people to buy your goods out of fear of contracting the virus.
Central banks can counter financial dislocations but are unable to restart economic activity as they don’t reach the underlying disruption. The Corona beer is a case in point.

 

Mr.T
Last edited by Mr.T
×
×
×
×
×
×