FlashCrash risk extremely high for tomorrow (Friday) t.co/kKkHbahtGh
— M/I_Investments (@MI_Investments) February 27, 2020
A BILLION people worldwide are living under travel restrictions due to this spreading pandemic and we’re just getting started….
No vaccine for a year + highly virulent strain
Volatility is going to be with us for months. Daily. pic.twitter.com/R0RrSwrl96
— M/I_Investments (@MI_Investments) February 27, 2020
The Fed build a mountain of snow (debt/bubble) this big for years thinking it can control things when it avalanches.
One snowflake you can't control (Covid-19) unwinds years of bad policy. #Hubris #Truth@RobSKaplan @marydalyecon @EricRosengren @RaphaelBostic @neelkashkari pic.twitter.com/tE4H2wQCTA
— M/I_Investments (@MI_Investments) February 27, 2020
Rosenberg: ‘High Odds Bet’ the Coronavirus Will Cause a Global Recession
“I think very strongly that it probably is going to cause not just a recession, a global recession,” the chief economist and strategist at Rosenberg Research and Associates told BNN Bloomberg Thursday.
either bounce here we this is a 1987 type event so worth a shot here imo pic.twitter.com/iwDr5lbHhT
— hks55 (@hks55) February 28, 2020
Dow: months of gains wiped out in a week #RISK
-128
-227
-1,031
-879
-123
-1,193H/T @Mikes_Charts pic.twitter.com/ZZAtUhGnbv
— M/I_Investments (@MI_Investments) February 27, 2020
Coronavirus Paralyzes Global Credit Market As New Issuance Crashes To Zero
As Bloomberg points out, the $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus spreads panic across company boardrooms.
While hardly a surprise with US equity markets suffering one of their worst selloffs since the great depression, Wall Street banks recorded their third straight day without any high-grade bond offerings, an unheard of event – especially in this day and age of ravenous yield apetite – outside of holiday and seasonal slowdowns. Across the Atlantic, European debt bankers had their first day of 2020 without a deal on Wednesday. And bond issuance in Asia, where the virus first emerged, has also slowed to a trickle.
Fed Is Losing Its Credibility to Coronavirus – Bloomberg
The central bank is failing to act in the face of a threat to world growth, and for no good reason.
The public thinks this is about the virus but the actual mechanism that’s causing this is the daily upward pressure on the repo market interest rate and massive inversion happening down the yield curve which cuts off credit based economic activity in the economy AND markets
— hks55 (@hks55) February 27, 2020
We are now in the worst stock market drop since financial crisis in 2008.
You know what comes next?
Credit markets freeze up…
Builders go bankrupt…
Housing market collapses.
Enjoy the ride.
They have to do an emergency rate cut. Longer they wait harder it’ll be to recover. Stock market goes down consumer sentiment goes down, consumer sentiment goes down consumer spending goes down, consumer spending goes down gdp goes down, gdp goes down deficit goes …..up. A lot
— hks55 (@hks55) February 27, 2020
Nomura is slashing its 2020 forecasts across industry sectors (a good reminder that the economic fallout from coronavirus is likely to be a supply *and* demand shock). pic.twitter.com/ySIbFlCcSx
— Tracy Alloway (@tracyalloway) February 27, 2020
It's amazing how ex-Fed people say the opposite of Fed policy, once they leave.
p.s. if the Fed cuts rates now, it will backfire b/c it shows desperation and wasted use of the few remaining bullets left@RobSKaplan @neelkashkari @EricRosengren @marydalyecon @RaphaelBostic t.co/skw1nogc2A
— M/I_Investments (@MI_Investments) February 27, 2020
"Dr. Anthony S. Fauci, one of the country’s leading experts on viruses and the director of the National Institute of Allergy and Infections Diseases, told associates that the White House had instructed him not to say anything else without clearance."#covid19 t.co/J8k8L4CWzC
— Carl Quintanilla (@carlquintanilla) February 27, 2020