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It’s Not Enough. It’s Just Not Enough.
There's a general sense among market participants, economists and analysts that no matter what policymakers and politicians do, it's not going to be enough.
The White House and Steve Mnuchin are gunning for a $1 trillion stimulus plan to help cushion the blow to the US economy from the increasingly draconian containment efforts aimed at slowing the spread of the coronavirus.
Mnuchin on Tuesday said the plan includes cash handouts to Americans. Checks would be mailed within two weeks he told a
The government can not create ventilators, hospital beds, masks, a vaccine, etc. out of thin air. That is what is needed.
It can create money which it could use for those things.
Yes, money helps — but even money can not get these supplies by the end of this week.
Yes, sadly we can’t “create ventilators, hospital beds, masks, a vaccine, etc. out of thin air.” But we can prevent all the millions of newly unemployed from losing their homes, and make sure they and their kids don’t go hungry.
Mr. H, I am a huge fan of your writings and insights.
Can you or anyone here give suggestions of some recommended books to more clearly understand the inner workings of Monetary Policy, Investment Banking etc. and other language and strategies that you frequently reference? I follow everything for the most part but about 5%-10% of the trader lingo flies over my head.
You could start by looking up macroeconomics on Wikipedia. If you find the summary and related entries there intuitive you can get a hold of a book on macro theory (preferably a text book) and teach yourself the basics (including monetary policy).
Investment banking is a little less conducive to being self-taught. You could, of course, enroll in a school ( of some sort) and study finance for a number of years.
I doubt, however, that you are really after a granular understanding of the subject. More likely you merely seek to understand the quantitative finance terms used by investment strategists whom Heisenberg frequently cites. My own understanding of ‘quant’ is superficial at best. I started my own brief foray into mathematical modeling with the Black—Scholes model in days of yore. Suffice to say, I am entirely unsuitable to guide anyone in the subject.
At any rate, here are a couple of links from Investopedia:
https://www.investopedia.com/terms/d/delta.asp
https://www.investopedia.com/terms/g/gamma.asp
https://www.investopedia.com/terms/d/deltahedging.asp
Having violated all our own rules and seemingly no weapons left …we resort to the end all .. Throw the money (fish , meat , whatever ) at the Wolves ( word of your choice for Human equivalent) who are circled all around and pray they are pacified long enough for the miracle .
The alternative is being dragged by ( your choice of words ..again ) through an Economic Cycle….God Forbid…!!! LOL…
Sudden brainflash. Airlines could fill all seats if they simply drop the oxygen masks?
Wrong in so many ways. O2 systems provide about 10 minutes of O2, or just enough time for them to descend to lower more breathable altitudes. Also, the masks in the back just provide extra O2 not 100% of you needs. That means you take in a bunch of cabin air mixed with it on very breath. Then there is the exhaust after every breath that goes out into the cabin and of course lastly it would take forever to clean and replace each mask because there aren’t enough extra in the world to just change them out.
Snarky comments aside the FRB is trying to stop a gigantic run on the international banking system. They are trying but so far no matter what they do, the forces in the market have at least as much power. Just announced a plan to loan dealers against securities, stocks and investment grade bonds for 90 days. They are not doing that out of the goodness of their hearts. There is a forest fire out of control and the shorts are consuming the market for the moment…
The Fed will do $1 trillion a day in overnight repo offerings this week.
$500 billion in the morning and $500 billion in the afternoon.
Statement Regarding Repurchase Operations
March 17, 2020
https://www.newyorkfed.org/markets/opolicy/operating_policy_200317a
Leverage much? The banksters, hedgies, and shadow banksters learned nothing from the GFC.
If the shorts are “consuming” the market, why not simply ban short selling? Seems like a much easier solution than all this other stuff.
H-Man, the CAT5’s are landing and it is turning into a humanitarian crisis. The good news. Our administration, after wearing blinders for a prolonged period of time, is finally getting off the dime. The bad news. We have no idea what the bad news will be and the market is clueless. This is looks more like a guillotine rather than a falling knife.
For some reason the financial catastrophe part of all this reminds me of a Gary Larson cartoon wherein a big bull frog is telling a horror story to some youngins: “And as the net sloooooowly lifted him from the water, the voice kept whispering, ‘I want your legs….I want your legs.’ “
Has anybody noticed that the number of cases reported from China has not budged from about 80,890 for over a week? Something is rotten over there.
Hmmm. Maybe, just maybe…they have successfully contained the outbreak? Unlike the US and the clown that is in charge of it.
Things are actually under control here in China. Most companies have already resumed office working. Stay-in order are being lifted across the country.
Acute summary of the very market sentiment at the moment. Fear and panic are a black hole now