Federal Reserve slashes interest rates to zero as part of wide-ranging emergency intervention

https://www.cnbc.com/2020/03/15/gol...onomic-growth-as-the-coronavirus-spreads.html
Goldman Sachs on Sunday downgraded its outlook for the economy in the first two quarters of 2020 as the coronavirus zaps all growth from the U.S.

Jan Hatzius, Goldman’s chief economist, lowered his first-quarter GDP growth forecast to zero from 0.7%. The economist also sees a 5% contraction in the second quarter.


“We expect US economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals,” Hatzius said in a note to clients Sunday.
 
gmal said:
https://www.cnbc.com/2020/03/15/gol...onomic-growth-as-the-coronavirus-spreads.html
Goldman Sachs on Sunday downgraded its outlook for the economy in the first two quarters of 2020 as the coronavirus zaps all growth from the U.S.

Jan Hatzius, Goldman’s chief economist, lowered his first-quarter GDP growth forecast to zero from 0.7%. The economist also sees a 5% contraction in the second quarter.


“We expect US economic activity to contract sharply in the remainder of March and throughout April as virus fears lead consumers and businesses to continue to cut back on spending such as travel, entertainment, and restaurant meals,” Hatzius said in a note to clients Sunday.
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I was promised 4,5, even 6% GDP growth? Was promised winning?
 
gmal said:
Zero from US, negative from China, probably negative from Europe as well. Not very good news
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So the banks will be paying me for taking out the loan, right? But no, I soon realize it isn't across the board rate cut and A-holes don't play by the rules. :vomit:
 
https://seekingalpha.com/news/3551830-sell-sell-sell-s-and-p-trough-2000-goldman

"Sell! Sell! Sell! was the story of this week’s 9% plunge in stock prices as the longest bull-market in history ended just days after its 11th anniversary. This week, the most frequently asked question from investors was 'what is the floor for stocks?'" Goldman analyst David Kostin writes in a note over the weekend. "Precision is difficult in a volatile market... A combination of tools suggests the S&P 500 could trough around 2000 (26% below the current level and 41% below the all-time high). But event-driven bear markets are usually followed by sharp rebounds, and we still expect S&P 500 will end 2020 at 3200, 18% above today.

"The swiftness of the bear market has unsettled many young market participants," he says.

"The lesson of prior event-driven bear markets is that financial devastation ultimately allows a new bull market to be born.

"Analysts have been slow to incorporate the negative impact of the coronavirus pandemic on company EPS estimates," he writes. "Analysts are constrained by the uncertainty of the outlook and the dearth of management guidance, but eventual downward revisions will be catalysts for lower stock prices."
 
gmal said:
https://seekingalpha.com/news/3551830-sell-sell-sell-s-and-p-trough-2000-goldman

"Sell! Sell! Sell! was the story of this week’s 9% plunge in stock prices as the longest bull-market in history ended just days after its 11th anniversary. This week, the most frequently asked question from investors was 'what is the floor for stocks?'" Goldman analyst David Kostin writes in a note over the weekend. "Precision is difficult in a volatile market... A combination of tools suggests the S&P 500 could trough around 2000 (26% below the current level and 41% below the all-time high). But event-driven bear markets are usually followed by sharp rebounds, and we still expect S&P 500 will end 2020 at 3200, 18% above today.

"The swiftness of the bear market has unsettled many young market participants," he says.

"The lesson of prior event-driven bear markets is that financial devastation ultimately allows a new bull market to be born.

"Analysts have been slow to incorporate the negative impact of the coronavirus pandemic on company EPS estimates," he writes. "Analysts are constrained by the uncertainty of the outlook and the dearth of management guidance, but eventual downward revisions will be catalysts for lower stock prices."
More...
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