"Don't fight central banks"… Until it stops working.
Global money supply vs MSCI World pic.twitter.com/WOFwLQYLsK
— Daniel Lacalle (@dlacalle_IA) March 4, 2020
The slide in US 10y bond yields below 1% suggests the Fed has lost control and deflationary stagnation awaits. Alexander Hamilton’s creations are now in uncharted territory. https://t.co/lghEtThX9A pic.twitter.com/BpGfLdQcfq
— Holger Zschaepitz (@Schuldensuehner) March 4, 2020
One of the main reasons why rate cuts won't be enough. Central banks may struggle to find a plaster big enough to cover the virus wound 👇 https://t.co/5SfvfZz88d
— Ole S Hansen (@Ole_S_Hansen) March 4, 2020
Ran into the CEO of one of the world’s biggest investment firms tonight who told me:
Stocks could go down by “another single-digit percentage points”
10 year could go “to 75 basis points”
Did the Fed panic? “No, but was a week too early. Market wanted more on the fiscal side”
— Scott Wapner (@ScottWapnerCNBC) March 4, 2020
WTF @BradHuston https://t.co/b2i0iDTlUs
— A.Urban (@AlessioUrban) March 3, 2020
"…the Fed conducted what came to be known as “asymmetric monetary policy”, whereby they supported markets when they plunged but failed to damp them down when they were prone to bubbles." 🤨@RobSKaplan @EricRosengren @neelkashkari @marydalyecon pic.twitter.com/rHTipnQGHd
— M/I_Investments (@MI_Investments) March 4, 2020
Markets are sending conflicting signals, with S&P 500 down yesterday (white), but futures are up today & EM currencies (orange) are rising. Which signal to trust? We don't have wide-spread testing for COVID-19 yet. Until we do, I doubt risk can rally in sustained manner… pic.twitter.com/DEM6F23V5Y
— Robin Brooks (@RobinBrooksIIF) March 4, 2020
Fed says coronavirus was not main reason for rate cutes.
This temporary slowdown… https://t.co/ccyX2Fh6WD
— GregTheAnalyst (@Analyst_G) March 4, 2020