FED emergency rate cut!

ToxicBunny

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Pidgeons coming home to roost if things pan out the same way they did in 2008...
 

akescpt

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Pidgeons coming home to roost if things pan out the same way they did in 2008...
i think i saw somewhere the recent drops were second only to 2008 drops...

where have they screwed up now again? weird cos people been lauding the s&p gains recently...surely they must have had headwinds around these issues...
 

Gtx Gaming

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Fed has announced they printing unlimited amount of money, they going full retard!

The Federal Reserve on Monday announced it would purchase an unlimited amount of Treasurys and mortgage-backed securities in order to support the financial market. The Fed said it would buy assets "in the amounts needed" to support smooth market functioning and effective transmission of monetary policy
 
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F1 Fan

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I don't understand how this works. How does the US basically just print and pump money in the economy? Like how does that not devalue the USD.
 

Gtx Gaming

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I don't understand how this works. How does the US basically just print and pump money in the economy? Like how does that not devalue the USD.
They are reserve currency and oil has to be settled in usd, so there always demand for usd. Now there is less demand for oil atm so this might backfire later on them when the markets come back to normal.
 

SoldierMan

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I don't understand how this works. How does the US basically just print and pump money in the economy? Like how does that not devalue the USD.
Yeah imagine we all could do it, we wouldn't have to worry... seems only the special few are allowed otherwise the world says in the corner for you naughty boy. I'm being facetious of course, but basically the US is the reserve currency of the world so it has that ability.

But having said that many are surprised at just how much they have gotten away with, when will the printing party end? Surely they can't just go on forever... Many countries it seems have had enough with the US and it's mighty Dollar and are putting in place measures that will one day see the end of it's supremacy. Time will tell.
 
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saturnz

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Yeah imagine we all could do it, we wouldn't have to worry... seems only the special few are allowed otherwise the world says in the corner for you naughty boy. I'm being facetious of course, but basically the US is the reserve currency of the world so it has that ability.

But having said that many are surprised at just how much they have gotten away with, when will the printing part end? Surely they can't just go on forever... Many countries it seems have had enough with the US and it's mighty Dollar and are putting in place measures that will one day see the end of it's supremacy. Time will tell.
the FED is definitely losing its influence and quite quickly if you look at the volume of money "printing" these days

interest rates are close to zero and will probably go negative at some point

as companies which are on the verge of failure are bailed out with artificially low interest rates, the can is simply kicked further down the road as these zombie companies are allowed to continue their inefficient allocation of resources
 

Snyper564

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the FED is definitely losing its influence and quite quickly if you look at the volume of money "printing" these days

interest rates are close to zero and will probably go negative at some point

as companies which are on the verge of failure are bailed out with artificially low interest rates, the can is simply kicked further down the road as these zombie companies are allowed to continue their inefficient allocation of resources
gotta love those 2xTrillion platinum coins :p
 

SoldierMan

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Just heard on First Move that the Dow recovered by 20% recently. Not bad, though could very easily lose it again.. Weeeeee it's like a roller-coaster ride, up and down we go.
 

krycor

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They are reserve currency and oil has to be settled in usd, so there always demand for usd. Now there is less demand for oil atm so this might backfire later on them when the markets come back to normal.
The combo with low oil price and low demand is like a double whammy.. if this goes on for two quarters i doubt the US will simply get away.. i expect a Japan like devaluation is on the horizon and the trade system will be moved away from dollar base.. Trump did say, America 1st.. well they can trade with themselves with their dollars..
 
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