Grim Economic Outlook Grips Markets as Stocks Plummet

Stocks dropped even as central banks tried to prop up economies, indicating the tactics that helped in past financial crises might not work against a global pandemic.

Comments: 236

  1. I am currently living in Bogota, Colombia. The government has reported 30 odd cases across the country with 13 or so here in Bogota. Almost all returning from Europe. But all foreigners and nationals arriving here must self quarantine for 14 days. Yesterday, Colombia deported 4 foreigners. A young 30 something Spanish couple and a 60 year old French couple - their hotels reported their ”jail break” to the authorities. Within hours, they were apprehended and promptly deported. A daughter of a friend studying in Barcelona came back home as schools there are now closed. She promptly went into a 24 day quarantine along with her mother at home. Schools are not closed yet - but its a question of when and not if. At my country club, we just hosted a 37th edition of club golf championship. But the celebratory dinner and cocktail hours were cancelled. The club is reporting almost 100 % cancellations of birthday, barmitzwah parties etc. The local currency - often supported by oil prices - has now crashed - losing some 30% value in less than 2 weeks. I think the lockdown is coming here - but perhaps not so severe as in Europe.

  2. @Neil Sounds like Columbia is doing exactly the right thing: slowing the spread of the virus, flattening the peak, and saving lives. Best done before there is widespread community spread.

  3. Beyond people staying put, taking care, and hopefully staying virus-free, my biggest hope for this week would be that the world stock exchanges would follow suit and simply close for two weeks (or until the infection rate crests in a majority of the market countries). With the ever-evolving minute-by-minute uncertainties and the (truly) wicked problems that are emerging as life and work is reshuffled, it does not make sense that the markets can rationally price investments. Let the world governments try to stabilize the situation (i. e., "pack the wounds" as the US did late last week and on Sunday with the rate cut) and then close the markets. And, in response to the recommendations in the Sunday NYT Business section - it is difficult *not* to be emotional when so much emotion is "build-in" to the market movements at a time like this-evident even as administration and health officials speak in real time about the virus. An unemotional "stay-the-course" approach if fine if we could trust the helmsman to be similarly rational.

  4. @A.E. umm - no. Given that the prior measures of presidential competency, like making sense, taking responsibility, and not lying, are out the window - this is the only score that donny himself accepts as valid. So let the red shine brightly in the night that's coming.

  5. @A.E. During the 1987 market crash, the Hong Kong stock market closed for about a week (as I recall) in an attempt to ride out the storm and protect some of its exposed members. Nonetheless the HK stock market suffered major losses upon reopening despite the extra time to digest the situation. Investor can get very anxious over bad news, which will be exacerbated when they don't have access to the market.

  6. @A.E. many people who are lucky enough to have stock must sell to get cash to live in this situation. Even from their retirement savings. It is not just fear, but this, that explains why the gains disproportionately accrue to the wealth when the market recovers.

  7. more likely the markets are falling again because the fed is indicating fear of the upcoming infection spread. traders need cues, and that was a big one. in the end, the market will recover, again, offering up real buying opportunities. I'm ready.

  8. @Steve Borsher I'm more worried about surviving this killer virus than buying opportunities.

  9. @Steve Borsher In other words, like the 2008 Recession, everybody across the board loses about 30-35% of their accrued net worth, but the wealthiest 2% gain 95% of the growth afterwards. Just once, I wish the rich lost the biggest share and got back the tiniest fraction. Then perhaps they might actually understand how the rest of us have to live.

  10. @JustJeff , if you have $10B and you loose $3.5B, how bad will you feel? Still have $6.5B. Oh, forgot, the 6th home in Aspen might have to be sold for $3,000,000, only at a $100,000 gain.

  11. As difficult as this is to do, people really need to calm down. The extreme market shifts and chaos are driven by fear. All the closures and self-quarantines should be seen as a very good thing - after all, these extreme steps are our best bet to stopping the virus. And yes, if we all do our part we can do this. And when all is over and done, we all need to make sure that those who need our help to keep food on the table and a roof over their heads get it. That is why we live in societies: to help each other. So, just calm down. Radio stations - put that Taylor Swift song on repeat, please.

  12. Nope. Investors aren’t selling off out of irrational fear. They see lower demand driven by a REAL VIRUS and understand a deep recession us coming - thanks to the Human Stain (et al).

  13. @T I would really like to know how much of the market lurching is being driven by software trading programs. Anybody?

  14. @TrumpTheStain (the Abomination) Sorry, I didn't intend on coming across as glib; of course the virus is VERY real. That being said, the tough measures being taken - closures, social distancing, etc. - are making a difference. I think some media attention on that would help to ease the DEGREE of fear (and yes, it is rational fear). Stay safe, all.

  15. Again. Extremely loud and extremely clear, Wall Street is saying that it has lost its confidence in Donald Trump both as a man and as a president. Trump is done.

  16. @Opinioned! Wall Street isn't tanking because of Trump, take a deep breath.

  17. @Devin Smith Wall Street isn't tanking because of Trump. It's tanking because of Trump's lack of leadership.

  18. @Steve-O Isn't that the same thing? His lack of leadership is not because of someone or something else. Your logic doesn't hold.

  19. The fear we can already smell in the market today is not irrational. It is entirely rational.

  20. @Rod Sorry, but fear is always irrational. If it doesn't rise to panic, one can learn caution.

  21. @Jon S. But who is making money in the stock market is the key question? Certainly not the average investor. It's the big guys such as banks, brokerage houses, investment bankers, and the short sellers!

  22. @Jon S. No it isn't. That's new age hog wash. If I'm standing in front of a salivating grizzly bear, I'm going to be afraid of the reality of what's in front of me. But yes, what we do with that fear is either rational or irrational.

  23. You can make a lot of money in these types of markets if you know what you’re doing

  24. @BJ And if you have sufficient capital to do so, which 98% of the population does not. Try harder.

  25. @BJ First wrap your mind around this. About 60% of US citizens do not even have 500 dollars for an emergency.

  26. @Homebase I know right and I do have 500 dollars but how far does that really go. Gas 2.83 a gallon. Car payment? Car insurance? if you have them. Cell phone 87.56 per month. Internet access (email forms government websites, banking) 56.00 . Electric 107.13 per month. Rent of half a NYC apartment 1981.00 is 990.00 (which is real good if it's not a hole in wall.) I haven't even gotten to eating yet. None of the above is a yacht or a Fendi bracelet these are the basics that millions of Americans are struggling with everyday! SO yeah thanks Trump.

  27. The market is behaving rationally. If the US govt in the person of the President cannot give any concrete financial relief to the populace and is doing nothing apart from telling people to calm down then the market will continue to fall. At a certain point even vested interests in the US will realise that spending by the population is dependent on the population being able to pay bills. No job, no payment of bills. No customers, no payment of bills. The only thing that can break the cycle is the govt giving money to people to help pay their bills whether it be in the form of cash payments as the Australian govt has just done, mortgage relief or other concrete forms of relief to those who need it now. Even the Germans have abandoned their balanced budget fetish faced with the reality of what is coming. Only Donald Trump and at least 40 Republicans refuse to look at the iceberg in front of the ship. The market recognises the helmsman is going to alter course too late and the passengers are jumping off. Trump and Christine Lagarde need to panic and panic now. It's not a time for calming down, it's a time for action and realism.

  28. @David. But Trump has panicked. Proof? He's started tweeting about Hillary's emails again. That's part of the reason the market has panicked.

  29. @David I heartily agree. But this administration regards Keynesian economics as blasphemy. Watch as they give billions to corporations who lay off thousands.

  30. These are the times when stocks of rock solid companies go from shaky, inexperienced hands to hardened, experienced hands for scraps. Don't forget, for every seller there has to be a buyer. The buyers are fund managers and 1 % er families, the sellers are the Joe Averages, who are panicking right now. World-wide, all the right steps are taken to contain this epidemic. In less than a month these steps will lead to a sharp fall in newly infected. Next winter, there will be several vaccines available and COVID19 a distant memory for most. And some people will be a lot wealthier.

  31. @Oliver Vaccines? By next winter, pretty much every human on the planet will be naturally immune... or no longer with us.

  32. I don't get the point of the cheap money thing. The tax cut was supposed to re-patriate vats of money for investment. It was spent otherwise. Why would a second round of vats of money to the upper-tiers for investment do so this time? Wouldn't direct investment in new things--functional train travel & transport, infrastructure repair, etc. be more effective in juicing the employment that allows for consumption?

  33. @Seethegrey Gee, they could put money in things we need right now, like health care infrastructure, emergency medical and nursing training, domestic manufacture of medical supplies, etc.

  34. I fear we are missing the actual purpose of all this, which is to fatten the already very corpulent fatcats. Planned economies are looking better and better these days. Shall we try once more, but this time with democracy, Eastern Europeans?

  35. @Bohemian Sarah This “adjustment” is a kind of government planning in the economy, except that it is occurring with no thought because it comes from Trump, who understands nothing.

  36. In 2008 the 'stock' market and the property market were poised for a long overdue much needed correction. Narrow minded political leadership with vested interests intervened with taxpayers money to keep institutionalized corruption afloat. The glib rationale was that "banks were too big to fail". Inevitably Mother Nature has shown she disagrees and she taking no prisoners.

  37. I'm trying to imagine how the airlines are going to spin this into a way to gouge us all after the virus is contained, like they did with fuel surcharges that never went away after the price of gas dropped and baggage fees that keep going up.

  38. Disinfecting fees

  39. @SXM Right on!

  40. Remember the old adage "If your only tool is a hammer then every problem looks like a nail." At this point Trump's only tool will not work, and he is devoid of alternatives. He is failing badly. As soon as he can he will return to his xenophobic blame and spewing of toxic waste-both kinds. Despite Trump - science and expertise has made a comeback ---albeit late. Deprived of his adoring fans to prop him up he seems like a character in a Greek tragedy. The last act should include rounding up his "Make America Great Again" paraphernalia and turning it over to Biden for his campaign slogan.

  41. @AP Greek tragedy. Perfect. He used to have a MAGA-hat wearing Greek chorus standing behind him at his rallies, all wearing smile masks. Now they've been replaced by a Greek chorus of scientists wearing frowns. They stand stone-faced in response to the very same "jokes" at which his adoring fans would have roared. The American people in the middle of a pandemic. Tough crowd for a clown.

  42. This is a great time to buy. One day, this will be over and anyone who takes advantage of it will have a nicer 401 later on.

  43. The bottom of the Great Depression was a great time to buy.

  44. @Randy L. You said the same thing last week....

  45. @Randy L. If you can hold on to your job.

  46. Lowering interest rates just won't cut it. The only thing at this point which will restore some stability to markets is a frank, sober and statistically based quantitative assessment of the Corona Pandemic. Someone with credibility, certainly not Trump or Pence, needs to step forward with a clear prediction of contagion rates, when they will peak and an estimate of mortality. The models are imperfect but they exist. People will understand that they are flawed and will be adjusted as more data become available. They will provide a time-frame for an end to the pandemic. Based on my own reading of the China data, we in the US are months away from a peak in the contagion rates and deaths might range to the tens of thousands. The American people will respond to social distancing more positively if they know how many lives could be saved by their modified behavior. Uncertainty is driving the markets right now, and we need to reduce that uncertainty with reality even if the short-term news is troubling.

  47. @Brian Barrett Exactly right. We need to address the health of the country, not the health of the stock market. Our leadership has it backwards, as usual.

  48. Of course Wall Street is going to tumble. Investors––sorry, speculators––are bound to panic when they see that the President is in panic mode, and the Fed, too. They will also be aware that the measures taken by Trump and Powell are precisely the wrong measures for this situation. Interest rates were already at a historic low and have been for more than ten years now. And what have those extremely low interest rates achieved? Precisely nothing, except impoverish savers and drive stock prices artificially high. They have helped create the bubble that has been Wall Street for a very long time. Investors know that stocks and shares have been way overpriced. Now, because of the coronavirus, they are having a reality check. As for even more quantitative easing, well that’s just funny money. We’ve had ten-plus years now of injecting funny money into the system. It has done nothing useful for the world economy except make the rich, richer still.

  49. @Mark Alexander Well said. US Govt debt is somewhere are 23 trillion. Zero Pct interest rates. If I were a mortgage lender, I'd start repossessing assets from that client. Never a real balanced budget. Always just printing more funny money while the peons get their houses taken away for missing payments. Like you said, reality check time.

  50. @Mark Alexander Very correct. Thank you.

  51. @JoeC Thanks very much! This focussing on the stock market only is so out of kilter. The stock market is but one aspect of the economy. Traditionally, the value of shares went up to reflect the increasing value of the companies those shares represented. When the company produced more, manufactured more, made bigger profits, the share value went up. These days, hedge fund managers are manipulating the prices of shares; and we all know what hedge fund managers are: speculators. They gamble with other people's money to make a killing. The whole system has become warped and twisted.

  52. Trump says that he is now "happy" that the Fed finally cut the rates to nothing. I know that some consider it old-fashioned, but if I choose to save money in the bank (imagine that!), then I think that I should get something in return, since the banks are profiting from the use of my savings for their investments.

  53. @NYReader. Remember, Trump is a debtor. Low interest rates are in his best interest.

  54. Trump's hand is behind this: He has been pushing the Fed to lower interest rates and now that they have reduced them to 0% investors are scared that they are out of bullets. But it seems that Trump has been spending his time productively, focusing his attention on whether to pardon Michael Flynn...

  55. @Dan88 Trump's businesses are overloaded with debt and lowered interest rates benefit him personally. He has never acted in anyone's behalf but his own. While the economy crashes he still sees only what he needs. But when he's finally out of office, will Russia and Saudi Arabia bail him out? That's his biggest fear, that he's propped up by so many who will have no problem hanging him out to dry.

  56. I was at a local supermarket last night. All I could find that I could "live on" was a substantial quantity of canned black olives. So, after reading this this morning, I'm glad I bought nearly $200 of olives (and some other junk) rather than get zero interest in an investment that doesn't pay.

  57. When the virus gets into a bank’s trading room, that’ll be most interesting. Traders for broker dealers can’t work from home so what’ll they do?

  58. Experience shows that the financial crisis will end at some point. It is painful to watch one’s net worth shrink by the hour but you must be resolute with a strong stomach.There will be light at the end of this long financial tunnel. Good luck to all. More importantly stay healthy.

  59. It's increasingly apparent that, unless there's a dramatic change in the trajectory, the coronavirus is going to be a catalyst for unprecedented social upheaval on a global scale.

  60. @TB Wall Street doesn’t represent the world. It’ll be okay. The societies that have a strong safety net will be healthier and bounce back sooner. The problem in the US is there is no safety net or it is monomial. It is possible this may end US hegemony in the dollar if Europe can provide a safer refuge.

  61. @Mathias Europe will be the first to go. This will be the end of the monstrosity that is the EU, whose response to the coronavirus has already made a mockery of the "Union" part of the "European Union", and the stress test has barely begun.

  62. @TB Not in China. I always considered the USA having a rather high potential for violent unrest.

  63. Already the airlines are laying off? They had a boom economy for years. Did they save nothing for a rainy day? And once again they will be bailed out by the government while we are all left to fend for ourselves. It’ll be TARP 2.0. And they’ll get away with it.

  64. @Mike L The airline boards and major shareholders must sacrifice one of their five homes and insist that there be a freeze on layoffs during this pandemic. Workers shouldn’t be punished because of coronavirus!

  65. Meantime, there’s not a peep about repealing the grossly unfair 10k SALT cap.

  66. perhaps this demonstrates what keeps the economic engine running. it is not the corporations but us, the consumers. no spending, no fuel to keep the businesses running, and no profits. of course this could be a boom for investors hedge fund, AKA betters, if they have betted against some companies to fail.

  67. I admit to poor knowledge about things financial but it seems to me that the markets are like elderly Victorian ladies who swoon over the least little thing. We just have to wait until it gets over itself. Would it be helpful to close the markets for a few days to let people chill? And for Dame Dow to have a glass of sherry and recover? Again, my knowledge of financials would fit in a thimble. Though when 45 got elected I did move about half of my retirement into very low risk situation with the idea that when he was out, I would tip toe back. Those accounts have not dipped but didn’t make a killing either. I likened it to putting money in the mattress.

  68. In moments like these, it's not about policy, it's about leadership. No amount of policy will make up for a lack of leadership. In fact, the attempt to substitute the former for the latter usually ends up doing more harm than good.

  69. There is no bread on the shelves or milk in the refrigerator cases at super markets. Forget the Federal Reserve, we cannot eat an interest rate soufflé. Department of Agriculture is far more an important arm of government to look upon.

  70. And rest assured that they will restock, or the fangs of the dairy lobby will quickly fasten upon the nearest senatorial arm. Cows have to be milked twice a day. It’s like 9/11 — eventually the supply chain restabilizes.

  71. @Suburban Cowboy ref the times article of a day or two ago, there is food, stores are stocking up like crazy but unable to match the hoarding buyers speed. The Dept of Ag has nothing extra to do.

  72. @Suburban Cowboy Where have you been? The republicans have deliberately destroyed the USDA. Take a minute and do a little research. You think what they've done to the CDC and the teams that were in place to handle disease threats was cold, check out how they are leaving us vulnerable to food problems.

  73. We are heading into a global recession, at best, and a global depression is possible. Remember that the market is not the economy. The economy can go on if the market tanks, but if the economy falters the market will too. And the economy is taking a hit. Many restaurants that are forced to close will not reopen. Many retail stores will be forced out of business as everyone turns to online shopping. As companies discover that teleworking is practical an office space glut is inevitable. Travel and tourism will suffer for years. And when people get into a panic mode they save rather than spend or invest. Will things recover? Yes. When? Who knows.

  74. We've required large chunks of the world's interdependent economy to simply stop functioning for an undetermined amount of time, so naturally this is what one would expect. My question isn't whether we can weather this storm relatively unscathed and intact. It is why everyone keeps talking about if there will be a recession, when seemingly the most logical outcome would be a major depression.

  75. I was excited to learn about this new rate cut. Reached out to my mortgage broker to ask about refinancing, and was ultimately not surprised to hear that the cut was *not for you and me*. It’s for the banks. Our mortgage rates actually went up last week. As per usual, government is only looking out for big business.

  76. 'the rates acfually went up because there were so many [goshdarn] refis to process, no incentive there!'-- the big lie

  77. This is a result of the shift from viewing the market as a place to own a piece of the economic engine to a philosophy of looking for quick gains. This follows from the changing view in business to the idea that the thing that matters most is the next quarterly report, not the long term stability of the company. And, while quarterly reports should matter, so should the long term viability of the company. Focusing heavily on near term profits helped cause the problems at Boeing. The Coronavirus is a problem, but is it worse than the Spanish Flu in 1918 & 1919? And look at how poorly the US economy performed after that pandemic. Oops, sorry, the economy seems to have done pretty well through most of the 1920s. And towards the end of that decade, businesses turned to looking more at their stock prices and the next quarterly profit statement and missed the building oversupply that was the underlying problem that precipitated the 1929 stock market crash. While all we have to go on is early counts, it looks like the Coronavirus is not a deadly as the Spanish Flu. There will still be lots of people looking to buy TVs, cars, washing machines, etc. after the virus fades. In fact, there will probably be pent up demand. Meanwhile, with loads of folks self isolating, Amazon (with its streaming service), Netflix, You Tube, and such should be in a pretty good place. But, of course, Chicken Little is running amok right now.

  78. Yeah with any luck we can look forward to a resurgence of the roaring 20s. Because that time was classically known for its equality, great hats, and an economy that definitely hasn’t changed in any way in 100 years.

  79. I have no wish to return to either the politics or economy of the 20s. I picked then because that was the last major pandemic we went through and the difference between how most approached the market then and now. Most of the Dow Jones companies will be here after the pandemic is behind us. The same with most of the S&P 500 companies. But what has happened in the market in the last few years bears more resemblance to the late 1920s, when “everyone” was buying on margin, hoping to make a killing. If things continue going South after the pandemic recedes, which is looking more and more likely, it will be because of the focus on short term gains at the expense of long term viability.

  80. This is the four major selloff in my lifetime ('87, '99, '08, now) Do not sell stocks. Sit tight. This will pass and markets will recover.

  81. @John I sold all my stock when Trump lit the fuse with Iran. I thought the man is bonkers and a risk to the world economy. I only got the incidence wrong not the baseline. Happy to buy back the same stock at a 50% discount after summer.

  82. Interest rate cuts will not arrest the virus. The big dummy in the WH needs to understand until he takes action like the Chinese & S Koreans to lock everything down, the markets will continue to plunge.

  83. Reducing interest rates was counter productive at best and will turn into destructive policy. What is going to happen when things start to normalize? We can't raise interest rates without hurting the markets as they recover. God forbid we have a financial crisis. The primary controlling tool has been eliminated!!

  84. To listen to Trump and Fox News in these days is a recipe for disaster. Get your news from CNN, MSNBC or other truly trusted media outlets, if you care for the health of the nation!

  85. @Nicholas - Regarding Fox News, Bill Maher said on his show last Friday - "I realized I am running low on toilet paper. Too bad Fox News doesn't have a printed version I can use when my supply runs out."

  86. We can at long last definitively say: “American IS NOW Great Again”!!!!! In keeping with that wonderful pre-Teddy Roosevelt / pre- income tax 19th century spirit of lax governmental oversight and laissez-faire capitalism, might I suggest this period be hereby proudly named: “The Panic of 2020” Has a nice spot-on ring to it don’t you think?

  87. Let the good times roll !

  88. Great! ZERO interest rates !!!! Might as well not invest in anything. Why does Trump lead everything he leads straight into the ground?

  89. If the most inept and corrupt president in history were to resign today, the markets would immediately rebound.

  90. In other words: Now's a great time to go remortgage your house to pay for your hospital bills from the corona virus.

  91. I don’t think any of us enjoy being able to say, “told you so,” but, we told you so. “You” being Wall Street investors. Wealthy Wall Street investors and “business” types supported Trump for one reason, and one reason only, tax cuts/deregulation. We told them that Trump was not good for business, and that his lack of stability and knowledge were monumental risks to the economy and to Americans’ wellbeing. Investors ignored those warnings. And now, nearly 4 years of stock market equity have been wiped out in 2 weeks. All because Trump failed to respond appropriately to a crisis, which is exactly what we said was going to happen back in 2015-2016. We TOLD you all this. And you ignored us. And now everyone is suffering the consequences.

  92. @Austin Ouellette This morning, I happened to see a TED Talk by Bill Gates from four years ago. The topic was the coming real threat, which Gates correctly noted is a virus. And here we are today. The world was unprepared for it then. Obama took a couple small steps, which Trump of course dismantled. It’s time to move a few tens of billions from the Pentagon and set the CDC and WHO to work. Stealth fighters, border walls, and another Glock at home are quite futile measures to oppose a microorganism.

  93. @T It’s not like it was hard to predict. A person didn’t have to be a computer genius with a trillion dollar fortune to see it coming. A 10 year old with basic common sense could see it coming. But those sweet, sweet tax cuts...

  94. They may vote red when it comes to their own personal enrichment and greed, but when incompetence threatens their green, they show where their true devotion lies.

  95. Take Cuomo's lead on shutting down public venues and close the exchanges. Blame it on the virus and not wanting to risk IT workers who must be on site to maintain the electronic routing of orders. That will buy some time for markets to take a breather and digest the Fed's action rather than perpetuating the 24 hour cycle of bad news and selling. Please spare me the diatribe of keeping markets open at all costs.

  96. Wait - it's 9:03 and trading is stopped already?

  97. Have no fear, the King of Bankruptcy is in charge.

  98. My fellow Americans, never fear. Jared Kushner will soon tackle this market stuff next. See? Don’t you feel reassured already?

  99. @Opinioned! He already brought peace to the Middle East and solved the opioid crisis. At least we are no longer hearing about these things.

  100. Cabinet: Use the 25th Amendment now. Save Wall Street if not the American people.

  101. Of course Wall Street is going to tumble. Investors––sorry, speculators––are bound to panic when they see that the President is in panic mode, and the Fed, too. They will also be aware that the measures taken by Trump and Powell are precisely the wrong measures for this situation. Interest rates were already at a historic low and have been for more than ten years now. And what have those extremely low interest rates achieved? Precisely nothing, except impoverish savers and drive stock prices artificially high. They have helped create the bubble that has been Wall Street for a very long time. Investors know that stocks and shares have been way overpriced. Now, because of the coronavirus, they are having a reality check. As for even more quantitative easing, well that’s just funny money. We’ve had ten-plus years now of injecting funny money into the system. It has done nothing useful for the world economy except make the rich, richer still. We are being led by fools! And we, too, are fools for tolerating it!

  102. This is just the start of the next great wealth extraction . The Fed in the past four days gave Wall Street Banks 2.2 trillion dollars. That is $7150 dollars for every man woman and child in the USA. They plan to give multiple trillions more in the form of interest free loans. The Banks take a billion dollar interest free loan and being banks the make it nine billion 9/1 leverage is all they are allowed now. They dont even move the money, they leave it in the Fed bank were they are given 2-3% interest on it. It would be simpler to just take truck loads of tax payer money and dump it on the front yards of the richest people on the planet but that would look crooked. Wake up. This system is rigged. Your children's futures are being stolen right in front of you and not one march. Not one general strike.

  103. @gene Marches and strikes are not a very good solution at this point in time. Marches will gather people together and further spread the virus. People are being laid off from jobs because of the virus so a strike is also counterproductive due to the virus. Later perhaps, but the virus is in control at the moment.

  104. Shame on all the governments that used a bad flu season to seize control of the economy by forcing the shut down of educational institutions and small businesses. This easy slide into fascism is the real problem, not a new strain of common cold.

  105. @C While it can be considered a strain of the common cold, it is one that nobody is immune too. at least 80% of us have some level of immunity to it. that changes the infection curve drastically

  106. @C I truly hope you knocked on wood when you wrote that. Best wishes to you and your loved ones, as this highly virulent disease continues to race throughout the world at a time when we have no treatments or vaccines for it.

  107. @C The common cold does not kill people. In Italy, 368 people died in ONE day.

  108. Starbucks closing stores is one positive side to this crisis

  109. What? The stock market is still falling? How is that possible? I mean, it's almost like people don't believe that an interest rate cut will keep the virus from spreading. Crazy.

  110. The stable genius should resign.

  111. "I’ve Been Rich, and I’ve Been Poor. Rich Is Better." --- Frequently ascribed to the writer Beatrice Kaufman.

  112. If nearly 90% of the wealth is held by 10% of the population. Who is making all this drastic moves? Can we have some news on who is pulling their money out? You never hear anyone tell 401k owners to pull their money. Nor do most people know how or what to do in this situation.

  113. Perhaps HG Wells was right. Globalization may be today’s Martian Fighting Machines from the War of The Worlds. All brought down by microbes.

  114. can we try bottom up economy instead of trickle down for once?

  115. By logical extension from the Trump-centric comments here, the market collapses in Europe must reflect no confidence in Merkel and Macron.

  116. Wall Street makes $ billions by short-selling the market, while we come down hard on people price-gouging hand sanitizers.

  117. Two wrongs don't make a right, but the point you highlight is a good one.

  118. I'm not saying the Fed cut is a bad thing. However, it does NOTHING to deal with the pandemic, including the complete and total lack of leadership in the White House. That's what happens who you elected a "stable genius" as president.

  119. I wish we had some Leadership, but I think we will just get more political cover, finger-pointing, and deflection.

  120. @Maurice Robson Fortunately we have been getting decent leadership from our governors, at least the Democratic ones.

  121. Stock future markets tank is a way for the Wall Street to push government providing more benefits to the markets. Wall Street knows perfectly that China has restarted the engine of production and growth. Pretty soon the world economy will be back despite our own slowing down a bit due to Covid-19. President Trump could do a better job to handle the Covid-19 crisis. Like everyone else, we underestimate the severity of the disease. But with the recent moves by the government, we should be in much better position to weather the storm. Have faith. If China can do it, we can, too.

  122. Since September, the Fed has pumped nine TRILLION dollars into Wall St. Mnuchin is stll saying "this is not like 2008." No, it's worse, because the markets are continuing to fall. To quote Casey Stengel:"You look up and down the bench and you have to say to yourself, 'Can't anybody here play this game?'"

  123. "How's your 401k looking?" -DJT

  124. @Monsp. My 401 is in the tank, thank you, Donald. Worse yet, it is what I have depended on, in part, to live on. I'm no different than most of my fellow retirees who were able to put aside some of their earnings while still working. Many others were unable to save at all. Now we are all in the tank.

  125. Since it's all being blown away, erased, why dont we all just do what Devin Nunes urges: go out, hit the crowded restaurants and bars, ignore the CDC. Just another media hoax, right Dev?

  126. The front page intro to this article erroneously states "The Federal Reserve’s emergency move to cut interest rates to near zero was reminiscent of its actions during the financial crisis in 2008." That's an incorrect statement because in 2008 the Fed enacted a financial response to a financial crisis, a move that helped address the underlying cause of market instability at the time. This rate cut will have zero impact on the current underlying cause of market instability -- the novel coronavirus. Can't really fault the Fed. As they say, when your only tool is a hammer every problem resembles a nail.

  127. The only path forward begins with a wall-to-wall cleansing at the White House. There is no doubt that a series of tragic decisions to deregulate and "save money" contributed to this mess and the people have clearly shown that they have zero faith in trump and his gang to pull us out. Indeed, everything he says and everything they has the obvious effect of throwing dynamite in the fire. Force trump out and you begin the road to recovery.

  128. Wasn’t trump preening just last Friday that his speech in the Rose Garden resulted in a significant market gain— a whopping 2000 points, if I remember correctly? So the obvious solution to today’s market free-fall is another trump speech. But it needs to be from the Rose Garden again since his previous speech, delivered from the Oval Office, sent the markets into a nose-dive. Setting is everything, as all reality TV stars know.

  129. An easy way to make the entire world's markets rebound is for Trump to step down and disappear forever. Not only would the markets rebound but there would be massive celebrations and perhaps some new designated holidays.

  130. @Remember Attention America: When you go to vote on Tuesday, November 20, 2020, just think of what 4 more years of Trump will be like!

  131. @Majortrout Biden Harris......Four years of Biden and eight years of Harris. That will be a period of real government. Trump and Sanders are both going to be gone. Biden has slayed one demagogue and he is going to go after the next. He looked so presidential in that blue suit at the debate. Sanders looked like he slept in his suit. We need gravitas and class in the presidency. All candidates call on Wall Street for leadership after getting elected from Clinton to Bush to Obama to Trump to Biden. So criticizing that is just not fair.

  132. Job one: self-isolate, try to enjoy the biggest snowed-in experience of your life, and refocus on self-care and limiting news consumption. As for calming the markets, here’s a little advice from your friendly neighborhood pinko: Part of the COVID-19 task force communications should include evidence-based reports on every positive development. When cases drop in Lombardia and Emilio-Romagna, let us know. When the hundreds of modeling studies being done on the Chinese data show a path forward, let us know. Highlight European countries that are outperforming others on slowing the virus. This will not only temper the markets a bit, it will dampen the fatalistic hopelessness behind the worst social behavior. I wish dearly my American native land had the sober, calm, serious leaders that are the norm here in Europe. Their speeches are more informative, calming and credible. Not everything has to be razzmatazz or sloganeering, puh-leez! No wonder everybody’s hysterical.

  133. @Bohemian Sarah you are right! but nothing gets more clicks and viewership than hyperboles. sigh.

  134. Another bank bailout that does absolutely nothing for people struggling to find basic goods.

  135. @Monsp "well, if you haven't sold by now, it's too late. Might as well ride it out to the bottom for the next 6-12 months and hope to catch up in ten years time.

  136. @Glenn Your reply indicates that @Monsp's comment went directly over your head. Based on your response, it would appear that you are so entrenched in the idiom that the "stock market is the economy", that you have failed to understand the concept of basic human needs. It is not all about trading stocks.

  137. The markets started their downward trajectories in earnest after the Saudis announced their significant oil production increases, causing oil prices to fall by roughly 30%. Now a few awkward questions: 1. The Saudis obviously knew announcing their new production targets will lead to a significant market correction. Did they share that information prior to the announcement with anyone or any organization in the US, so they can make a few easy billion dollars by shorting the markets? 2. The Saudis sovereign wealth fund - called The Public Investment Fund (PIF) - is one of the largest sovereign wealth funds in the world with estimated total assets of $300 billion. Does anyone know the extent of the PIF market "shorts", just before that announcement? 3. Undoubtedly the Saudis will reduce their oil production some time in future, causing the market to rise again. But before that, their PIF will start to buy back its shorted stocks. Do we know if the PIF was the fund that started to buy aggressively last Friday, when Mr. Trump declared a national emergency? 4. Can the Saudis time their future production cut and the resulting market rise to help Mr. Trump's re-election? 5. What would be the U.S. Securities and Exchange Commission (SEC) role, if it is proven that the PIF is manipulating the US market? 6. Has the PIF activities been limited to the US markets or has it been also active in other markets, especially those that have participation of many oil companies (Canada)?

  138. @Eddie B. "5. What would be the U.S. Securities and Exchange Commission (SEC) role, if it is proven that the PIF is manipulating the US market?" What ever Trump tells them. And before they even talk to Trump, the members (all Wall Street related) will whisper it to their old buddies.

  139. As Trump, Kushner, Mnuchin and pals looked for ways to profit from sick Americans, precious time past. As they tried to wheel and deal away a German's companies expertise, more here were sickened. Trump played golf and shook hands and touched microphones and tweeted as his pals attempted to find solutions that would make them money. Cruz decided to stay home while getting paid, more than likely to kick back and short sell with some of the others. Nunes now encourages the public to go to restaurants and we might assume he has steakhouse stock. Ivanka has sequestered herself as everyone needs a facial and massage at this time of stress. Children languish in cages on the border so hopefully DeVos can still pull a profit. People line up at gun stores so contemplate locking up your toilet paper. The farmers have been abandoned. Flint still has poison to drink. The climate has been ignored but don't give up as it will all magically go away. And this is AMERICA. LOCK HIM UP.

  140. @lulu roche people before money, We not Me!

  141. @lulu, you've covered the lot. I haven't even seen a recent report on the children in "storage" at the border because of everything else, but if this spreads there, it will be horrendous. This is the most cynical and avaricious group ever to "govern" in DC, all utterly unconcerned with any but their own kind. And Trump concerned literally only with himself and his progeny.

  142. @cheryl And to make it worse -- all of Trump's sycophantic supporters, including senators, highly educated wealthy people, and more --- think he's doing a great job! How do we still have around 40-50% believing that?! It's mind-boggling. Never underestimate the power of racism, ignorance, [fill in the blanks].

  143. There is a silver lining - he’ll be gone by November. I just wish he didn’t take all our money with him. Who knew?

  144. @Linda Conn I did.

  145. @Linda Conn He won't be gone until January. Unless either Congress or the corona virus does its job.

  146. Pan-human solidarity should be the proper institutionalized response to the two existential threats of our troubling times, the Coronavirus pandemic and the climate emergency. Instead the Trump regime, infested with virulent nationalism, tries to acquire use of a developing vaccine for America only and basically denies the reality of life-threatening climate change. Its collapse cannot come soon enough.

  147. “The Trump Virus” is going to be very severe because the president delayed action. He now OWNS it...!!!

  148. The trump economy seems to be “falling” right into place.

  149. How about this as a one-time stimulus: a one timer of Andrew Yang's plan of $10k to every citizen. Maybe we exclude those who made over 100x the federal poverty line last year? We need to help people, not corporations.

  150. Greg Mankiw says send every American a check for 1000$ NOW. If you want to keep corporate debt stable you need people spending money yesterday. Bailout the people and you bailout the corporations too.

  151. @Brendan : in the recession around 2007-2008, then POTUS gave out a $1600 per family stimulus check….how quickly everyone has forgotten that! Because it did nothing. It wasn't enough to pull anyone out of financial hardship -- it was just enough to party hearty. It was estimated that most of that stimulus went to buying the then-new flat screen HDTVs -- I had many neighbors who did that. (I myself used the money to pay my SKY HIGH real estate taxes!). And HDTVs are all made in China. So it was a great stimulus for CHINA. People need jobs and relief from debt -- right now, free coronavirus testing!!!! -- and a guaranteed they won't be laid off, lose health insurance from work -- won't be dunned for credit cards or rent while the pandemic is ongoing -- just checks for cash will get wasted. What part of we "we are already $23 TRILLION in debt" do you not get?

  152. The good news is that quarantine-like behavior worldwide should be lower in carbon footprint than before it.

  153. The stock market is just about where Obama left off. Thanks, Trump. For nothing. Your leadership is a shining beacon for the world to ignore.

  154. @Paul Presnail Wrong! As printed in Quora by John Brand, BA Economics, California State University, Fullerton (2013) updated January 5, 2019 " When Obama took office the market was at 7,949 ... Horrible financial times, thanks to the Bush Administration. My words. When he left after 8 years in office it was at 19,827, roughly a 150% gain. Trump would have to be at 49,369 if he stayed in office for 8 years to equal Obama's as it relates to the stock market and the Dow Jones industrial average."

  155. @smf : if the stock market were at 50,000….it would be a disaster, inflation and high prices. It would be bloated and inflated beyond belief. You can't compare someone like Obama who gets to start from the nadir of a recession -- and takes credit for the NATURAL recovery -- with a President who starts out with a fairly high stock market and STILL manages to see increases. Also: no matter which POTUS you like or hate…the President HIMSELF has no power over the stock market (or even over the Federal Reserve Bank). The stock market especially responds today to vast international markets and money that moves all over the world. No one politician can control it, for good or bad.

  156. As this pandemic deepens and affects millions of Americans and billions around the globe, Trump continues to lie, obfuscate, misinform and misconstrue. He's obviously looking for a way to personally profit from this catastrophe, as evidenced by his strong-arming the German vaccine company. Trump's evil approach to this crisis is as virulent and pernicious as the coronavirus itself. Article 25 time, America! Step up and make it happen!!

  157. everything trump has ever done points to being a tool of vlad and the russian oligarchs. is anyone really surprised he's driving us off the cliff?

  158. If stable markets are what we seek, lock Donald Trump in a small room until November. Just about everything will improve.

  159. @Tom Beyond November. For years.

  160. @Tom Do so without his phone or a computer, please.

  161. i wouldn't be suprised if DJT asked his aides this question. "is it possible could they stop trading until the virus is gone??"

  162. Shame that the tax cuts and cheap money has all been funnelled to juice up the stock market and Trumps ego. Crumbling infrastructure and second rate social services can only get worse. The virus is not Trumps fault but the huge thin skinned bubble is and the virus is pointy and sharp.

  163. The virus and the resulting collapse of the stock market cannot be directly blamed on Trump (but everything else can including his response to it). It would be ironic if this does him in. It is fitting though. He faux great economy is a fraud but the people went for it, just like now, they will blame him for it although is not not directly his fault. Instant karma.

  164. @Paul I disagree. We had a couple of months to prepare for this pandemic and not only was nothing done, but he lied to the people about it. Even before any pandemic appeared he had cut funding to the CDC and other health organizations and jobs in 2018, wonder where all the money went? So between the misinformation and lack of resources he is responsible. When we were seeing what was going on in China and how it began to spread we should have been preparing. Interesting how well South Korea was on top of it with early testing and were able to keep their numbers down.

  165. @smf thank you for your reply. I carefully worded my post. The direct virus and the resulting immediate market crash cannot be blamed on him. Everything else, including what you say can. We are splitting hairs.

  166. @smf : come on! people are STILL lining up to go out to bars and restaurants -- and only stopped when Governors and Mayors shut businesses down! People still rent washing hands or doing basic hygiene! People are hoarding hand sanitizer and keeping it from the sick and needy -- and hoarding masses of toilet paper, even though it is not in short supply nor related to the virus or hygiene against the virus. Anything anyone would have said two or three months ago, would have been roundly ignored. In fact, we had a LOT of info from the news about the Chinese and the coronavirus but did nothing. The President has no control over a world wide pandemic. He does not determine policy in China, South Korea, ITALY or Europe, and they are all suffering.

  167. Sometimes it’s not about money - sometimes it’s about lives!

  168. When you’re the president, it’s ALWAYS about lives.

  169. @MIMA: Not for POTUS. All that matters is himself.

  170. Trump’s last act, his swan song, is the same as those acts that preceded. A draining of money from others’ purses. The losses to casino and other ventures who lent to Trump in earlier decades pales to the collective financial damage as president he has wreaked upon Joe Six Pack and Sally Text Book et al.

  171. Send cash to everyone with a limited income they will quickly put it all back into the economy.

  172. @Bunbury That's what Bernie suggested. It's good advice.

  173. ...or 'why Republican tax cuts are welfare for the rich.'

  174. @Bunbury Remember Andrew Yang!

  175. I can't believe the people around him didn't tell Trump this was what was going to happen - and from the photos I've seen of Powell, I'm sure he told him that. But Trump is the stable genius who is the only one who can fix anything but takes no responsibility for anything. How can we get rid of him right now? How can we get people like the fed to just tell him NO!

  176. @Brookhawk "Powell, I'm sure he told him that" Powell, or anyone around Trump don't tell Trump anything. They are cringing stooges who do his bidding, even at Bunker time.

  177. This is what happens when a weak man at the top is allowed to appoint weaker people beneath him; Mnuchin, DeVos, Barr....the list is long. To think his “tough” base doesn’t see how weak he is is perplexing.

  178. Wall St doesn’t trust this administration. That is what is being communicated. Trump and Pence think their words mean something — Wall St is telling them otherwise. Trump is going to tank this economy like he has his casinos. His cabinet, the house and the senate should force him out.

  179. @MM Ha ha, good one. Mitch McConnell attended a fundraiser over the weekend rather than work on a package to help those being hurt. He knows full well only Wall Street and airlines will be bailed out. He's also maneuvering to get judges to retire to continue stuffing the bench with ultra conservative judges, do much for stalling in election year, many incompetent but ideologues. The Republican congress has no interest in forcing Trump out, most will profit massively from this pandemic. Most are multi millionaires with ongoing salary and no need to come to work, calling it self quarantine, no doubt code for calling donors in exchange for more tax cuts, loosening regulations and conservative judges. They know their time is limited and like bank robbers in a vault they have to grab what they can before the police arrive.

  180. Financial markets tumble! In spite of, or because of, the Fed's cuts to interest rates? If Donald Trump advocated for these cuts Chairman Powell should have fought against them. Has everyone forgotten what happened last week when the Fed lowered rates? On the other hand, Congress can affect the Economy in a positive way by stimulating the economy, by working on plans to get everyone back to work as soon as possible, at real jobs with real people repairing roads and bridges, building solar and wind energy farms, etc. etc. No more silly Republican-Trumpian tax breaks for successful corporations! But Federal spending to really boost jobs for real people. We need more than Reagan-era Trickle Down. We need a tsunami of government spending to combat the effects of the Covid-19 pandemic. Mitch McConnell has as Majority leader of the Senate, real power to do much more than the Fed to do this right. But will he just be the corporate toady as he has been for the past several years of his tenure?

  181. I see that Trump and Powell's slashing of interest rates and injecting funny money into the system is working a treat. The Dow Jones is down 2,753 even as I write this. Well done!

  182. Beginning to wonder if the media is ginning up too much overreaction to the endemic uncertainty. This drop is a wild overreaction to a temporary halt in business. Only a small percent of people are at risk - those over 60 with multiple chronic diseases, and they first have to catch it. Business fundamentals have not changed - just the short-term outlook with no one buying much of anything. But that all becomes pent-up demand.

  183. @Fourteen14 Our economy is heavily dependent on consumer spending which is plummeting. If one assumes the market always knows and does what is best (which has certainly been the position of those currently in power), then the drop is completely appropriate. Those who live by the sword must die by the sword . . .

  184. @Fourteen14, from a market point of view, if business closes down for one month, as is currently expected, then business loses one twelfth of the profits for the year. Many businesses work on small margins and won't survive. It may be an overreaction - which would mean a good time for you to buy stocks - but not a wild overreaction.

  185. @Bill This is an extraordinary time but it's temporary. The media is acting like this's the Black Plague and they're making lots of money doing that - but it is more like a very bad flu, which killed 61,000 in the US 2018 season. C19 won't get near that number. People have lost perspective and seem primed for hysteria. I believe we've gone overboard and it's mostly media driven - has far less to do with Trump than the media wants us to believe. It's the fear that's most contagious, not the virus. Losing a month of revenue is very bad but the variable costs are also gone, just the overhead remains. We are about two weeks into a six-week business hiatus. At least that's what the China data says. Business will return and loans won't get called. It's entirely different than a business with permanent trouble due to a bad strategic decision or sea change in their market. Which is to say this is a buying opportunity. The relevant question is where is the bottom?

  186. What's point of this stock market? Why is it not possible to either close it altogether or substantially curb the activity, especially short selling? If everything else can be slowed to hibernation why is this completely lunatic situation with the market allowed to continue? It is totally obvious that at this time business activity or planning make little sense and hence it is better to just temporarily close it.

  187. It’s not just Trump’s ignorance and incompetence (heavily seasoned with megalomania), but the entire Republican Party that we have to thanks for the abysmal handling of pandemic. Years and years of stymied investment in an available and robust healthcare system (Medicaid denials eviscerating rural health, attempts to disinvest in medical research, scuttling NSC pandemic preparedness—the list goes on and on—by the Republicans who only work for the wealthy are responsible. The is no doubt. Except for the fact free. We need to wish each other well.

  188. Why aren't the world's billionaires stepping in and shoring up the markets? But the 1% is protecting the 1%. Big surprise.

  189. @FivebyFive "Why aren't the world's billionaires stepping in and shoring up the markets?" Um, the 1% mostly got out in the first week and are currently short in the market and racking it up. They will start to rescue the market after it hits bottom. The other 99%, broke again, will then again mostly vote for for the 1% candidate in future elections.

  190. This is really getting serious. Trump better call in Jared Kushner to take over. Jared could call his brother-in-law for expert advice from his internet friends. The one thing we can be sure of is that the mega-wealthy will come through just fine, while the little people get crushed.

  191. @Madeline Conant They are not fine, they all drank the Koolaid.

  192. Can someone tell me why the stock exchanges are even open? I can understand why banks and money markets are. People and businesses still need to pay bills, collect money, pay employees and pay vendors. The ceaseless task of balancing liabilities and accounts receivable continues but one ask.... Is the daily market volatility a true reflection of value or is the usual ingredient of emotion simply being amplified to dangerous levels. And are computer algorithms playing an outsized role?

  193. @Woodson Dart. Yes, the demise of market makers in individual stocks and the shift to high speed arbitrage trading between multiple stock exchanges amplifies market movements both up and down.

  194. Why not close these markets for 60 days until this situation is more under control?

  195. @Robert Weisbrod Maybe it would be better to just be seen getting the situation under control... Markets respond to strong leadership; unfortunately, that's exactly what we're missing in the White House.

  196. R.I.P. Capitalism. The time value of money is wiped out. The "Dual Mandate" Congress assigned to the Federal Reserve Bank demonstrates fundamental misunderstanding of conservation laws.

  197. By his own yardstick, Trump as failed us again. Time for Trump to resign.

  198. @Armis Richardsonm: Unfortunately there is no way this egomaniac will resign. He needs to be voted out since the Senate refused to impeach him.

  199. When the economy was recovered from 2008, we should have done more moderate, progressive tax cuts and invested more money in everyday people, as economists recommended, instead of giving corporations and rich people a landfall so they could buy back their own stocks and declare record profits! Now we are already running a terrible deficit while families still struggle to get by, and the same corporations who benefited most from the tax cuts are asking for more cuts and, potentially, bail out money. GOP leadership at its finest.

  200. I’m so tired of hearing about the stock market. What is like to hear more about is how Trump’s grand private-public partnership is going.

  201. The one focused on increasing testing, or the public-private partnership that was supposed to rehabilitate our infrastructure after he failed to deliver on a one trillion dollar plan?

  202. Obama’s administration inherited a recession AND immediately got hit with H1N1. Didn’t stop the massive growth over the following years.

  203. @DH: The Republicans never owned up to the ineffectuality of the tax cuts they demanded in Obama's stimulus bill.

  204. People are dying, and the major concern of the 1% and Trump is that the stock market is tumbling. It should have tumbled further during the recession, and maybe the root problem of the imbalance of wealth accumulation and privilege in our country would have been addressed. Instead, the banks are back to shenanigans similar to the ones that caused us to bail them out then, and advice from GOP leaders like Nunes from California are urging people to go out to restaurants instead of the grocery store to save the low wage workers. Meanwhile, the rich and uber rich are insulating themselves in their enclaves here and abroad. How many yachts do you suppose are sailing the oceans right now so that their owner don't have to be exposed to the commoners? Personally, i believe that MAYBE if things get really bad here, we might have a small chance of rebuilding our national foundation on the values that are enshrined in the Constitution, and MAYBE we have learned from our darkest hours how to travel a better road.

  205. I hear you on the inequality, but let’s stop fetishizing our founding fathers and the constitution. Remember the 3/5 compromise?

  206. @Mountain Dragonfly: Slavery is enshrined in the Constitution. We the shareholders of USA, Inc. are not equally represented at the federal level.

  207. @DH I DID say "better road".

  208. "“If the public stops spending then the economy will go into a recession, and frankly, the market’s steep losses are saying that day isn’t just coming, it is now,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in an email on Monday." And there is the crux of it: this is not about interest rates, it is not about tax cuts, it is about consumer spending, which is reduced because of fears of the virus. Containing the virus quickly will lift the quarantines and get business back to normal. Containing the virus quickly will prevent our medical system from being overwhelmed, and bring back consumer confidence in our institutions. Only containing the virus will stave off major (short term) damage to our economy.

  209. It will be interesting to see what the US does. Right now, the issue is a huge drop in demand as consumers cancel travel plans and many other things. Later this may turn into a supply problem, but we have to get through the next year first. In the US, Republicans are strongly committed to address only the supply side. Throwing wads of cash at big airline companies is not going to make them order new planes in order to have them sit idle. Maybe you can teach an old dog new tricks, but usually it takes a while.

  210. Put a moratorium on short selling, immediately!

  211. In a capitalist society, that is precisely what not to do. As the Rolling Stones' line in "Sympathy for the Devil" goes, "You can't always get what you want, (but) you get what you need". For the NYSE (and other large markets), this is a very good analogy of "water seeking it's own level".

  212. Republicans want to live in the past so much they are about to get their wish: Wake up tomorrow, October 30, 1929

  213. We saw the criminal activity last Friday afternoon. This is the result of a classical pump and dump. If anyone else did this, they would get a visit from the SEC and the FBI.

  214. The simple fact is if Obama was President going through this, You all would be praising his measures. Your duplicity and hypocrisy are frightening. And is your problem is with Trumps leadership what do you have? Biden and Sanders, even more frightening.

  215. No president would have handled this crisis perfectly. But no other president would have been calling this a hoax just a week ago.

  216. @MiguelM Trump said that it will go down from twelve people to zero and disappear. Comments like this do not inspire confidence or reflect the gravity of the situation. People are dying because of Trump’s ineptitude and you expect praise.

  217. What's really frightening are people like with your head in the sand, blind to the reckless incompetence of this man who downplayed the crisis from day one, disbanded the pandemic unit in 2018, and rejected test kits from the W.H.O.

  218. Trump’s presidency was based upon two things: dismantling President Obama’s legacy while inflating his own ego and enriching himself and his family. Vote 2020 to put an end to this madness.

  219. @Molly Bloom - And on those two fronts his reign has been a smashing success. Let's not allow the smashing to continue for another four years please.

  220. Donald Trump needs to be forced out of office. There is no confidence in his administration.

  221. This is what it looks like when there is a crisis and the president of the United States has the gravitas of a Roomba.

  222. Alright but my Roomba has some attitude. It’s really persistent about trying to vacuum around my feet.

  223. I trust my Roomba much more than DJT. It does what was advertised, on time, consistently and reliably—without narcissistic tweeting. It also seems mercifully to have absolutely no penchant for mendacity.

  224. @A Nobody: At least a Roomba cleans up after itself and doesn't leave a mess in its wake.

  225. The morally and ethically bankrupt Trump is bankrupting the United States.

  226. 2020 hindsight will take on a whole new meaning after this passes.

  227. The FED cannot stop the negative aspect of the coronavirus. They can only do so much. The current administration is run by a person with so much ego, hubris, and lack of common business sense that he cannot see he is in over head. Lack of good leadership has created broad chaos. It’s like a giant semi-truck skidding down the road headed straight for a huge concrete wall, jackknifing all over the place because the man behind the wheel, a new inexperienced driver has no idea how to deal with all the gears and shifting necessary to get the truck to slow down and back on smooth pavement. It is time for new leadership at the helm. The current group is in way over their heads. Someone other than the current administration if it isn’t to late please step in and take charge if that is possible. The rest of us can only vote, I guess.

  228. Trump is conducting the band playing "Nearer My God To Thee" as we rapidly approach the iceberg.

  229. @Kevin Rothstein Brilliant analogy.

  230. @Kevin Rothstein 45 does not know Christian Hymns. He likes Pop Culture. He more likely is singing "Don't Worry. Be Happy" while playing golf in a thunderstorm!

  231. So much for that Thursday bump in the markets post-Oval Office talk on Wednesday.

  232. Here is an idea. How about all the CEO's, and Congress suspend their salaries for the next 5 years to take on the burden created by poor management in this Administration. Whatever the Senate agrees on will impact the middle class in a negative way. The American people will take on more national debt and receive less benefits. The large business will get additional tax breaks. I won't be surprise if it drops to 2% and be permanent tax breaks. The talk is about the bailout of the airlines, hospitality industry and service industries, which I understand, but it will be the middle class that will bail them out. This is a travesty. The middle class did not create this problem but they will be the ones to pay for it.

  233. A recession is two quarters of negative GDP growth. We are most likely in a recession today. March will drag 1st quarter growth into negative territory. And business closures to promote social distancing are just beginning in the U.S., so the 2nd quarter will likely be even worse.

  234. Will Trump sign this market dip like he signed the upturn on Friday? He takes no responsibility.

  235. Trump is treating this as an economic crisis. It is not. It is a medical crisis that affects the economy. Fix the medical crisis!