‘The Headlines Continue To Shock’: Week Begins With More Record Stock Losses, Eye-Popping Bond Moves
There was no respite for global equities on Monday, as stocks plunged in Australia and South Korea, while falling a record 13% in India, as the world grapples with the realization that most major economies are recession bound amid partial or complete lockdowns associated with efforts to contain an invisible biological threat.
New Delhi locked down all districts and nonessential businesses in Mumbai are closed through the end of the month. Only groceries and banks are exempt. The rupee fell to a
Well, vol is still ruling: you just finish writing an article, click on the post button and voilà , the markets have already reverted completely (FED again), and will probably revert again by end of trading day.
will revert more than one time by the end of trading day.
The Fed is covering all bets no matter how bad. Markets will go wild over the prospect of a(nother) lost decade, followed by secular stagnation at best. Scary.
The problem with printing USD (Kelton style) is that the government sends money to people who need it to pay bills- the money gets spent – but then that money flows up the chain, so to speak, into the pockets of the “still wealthy” and the money stops circulating. However, better than not printing.
The check and balance on USD printing by USA are FX rates. So as long as other major economies are printing, USA should be able to retain status as “world reserve currency”. USA does not ever want to lose that status ( imho).