The coronavirus rescue bill leverages the Fed by $4 trillion to head off a credit crisis–you think it might be serious? Look at the credit card market
Besides the $2.2 billion that the Coronavirus rescue bill allocated to checks to individuals, etc. it also created $4 trillion for the Federal Reserve. Why does the Fed need that much? Because the coronavirus recession threatens a full-blown credit crises
For a while it looked like bullish investors and traders would manage to pull the market even into the close. That would have been quite a positive feat after a huge 3-ay rally and going into a weekend. At 3:27 p.m.New York time today the Standard & Poor's 500 was down only 0.18% at 2615.58 after being down 3.35% at 12:07 p.m. But then a late wave of selling kicked in and took the S&P 500 back down to 2541.47 at the close, a drop of 3.37% on the day. A few thoughts on the day's action:
Pardon me if I have to believe, on the basis of past stock market history and from current data, that this Bear Market isn't done with us a mere one-month from the mid-February highs.
Market shrugs off 3.28 million jump in new claims as $2.2 trillion coronavirus rescue bill moves toward House vote tomorrow
Today Treasury Secretary Steve Mnuchin said the surge in Americans filing for unemployment benefits is “not relevant.” Mnuchin told CNBC, “The president is protecting those people.” For the week ended March 21, initial claims for unemployment soared to a record 3.28 million. Last week, the week that ended on March 14, initial claims for unemployment had climbed to 281,000 from 211,000 in the prior week. For a day, at least, the financial markets agreed.