The Fed has to now ignore the stock market

NY_HOOD · Mar 16, 2020

when i say ignore, i mean let the markets fall naturally and they will stabilize naturally. I do understand some intervention obviously but they now need to let nature take its course or else they will only make matters worse than they currently are.
This reminds me of a failing business owner that keeps taking out loans on a business that has no future and no chance of making it. Glow in the dark shoe laces come to mind.

nooby_mcnoob · Mar 16, 2020

They are in the business of making matters worse than they are. In fact, Nassim Taleb is a Fed supporter because otherwise he can't make billions every ten years.

SanMiguel · Mar 16, 2020

Not going to. They'll be buying treasuries for a while

RedDuke · Mar 16, 2020

Forget about treasuries. Unless fall
Stops, rules will be changed to allow Fed buy equities outright.

tsfx · Mar 16, 2020

RedDuke said:
Forget about treasuries. Unless fall
Stops, rules will be changed to allow Fed buy equities outright.

That's not advisable. Recall swiss central bank flooring eurchf at 1.200 back 2015 if i remember correctly.

Dumb money hoping for a free lunch to ride the CB wave will ruin any intervention (in mature western economies anyway).

FED is actually doing the right thing, tight dollar funds need to be loosened when everyone is outright retarded. This is about buying time to witness improvements in the virus story. You are all too stock index oreiented. This isn't at all about propping or putting a floor in the stock market, if it drops further it drops further. Tightness needs to be loosened AS WELL AS looseness needs to be tightened, that's what the Fed is for.

tommcginnis · Mar 16, 2020

First, I really don't understand the FED hate that pervades ET posts all the time. I don't get it. They have two aims -- *mandates* -- and they consistently address them better than perhaps any other governmental agency aside from the armed services.

Second, regarding this weekend drop: I'm sure that 100 years from now, a "TOP SECRET" folder will become public, showing tiny little trumPidiot hand-prints all over this action. Why do I think that? The silence from The Orange House. The FED drops that much, and Stable Genius has nothing to say?!?!? No way.

(But when I'm not dreaming up Vast Right-wing Conspiracy Theories, I think about the effect of airlines, bars&restaurants, hotels, schools of all levels -- and all the other social-gathering industries and their facilitators (gasoline stations, ticket printers, disposable plate makers, linens manufacture and laundry, etc etc etc) -- and then I think about removing all of that revenue from the next S&P500 earnings estimates..... and then thinking about a p/e for the remnants.)

And then 2400 looks kinda generous, no?

murray t turtle · Mar 16, 2020

SanMiguel said:
Not going to. They'll be buying treasuries for a while

%%
Looks like you are right. NOT a prediction.
Japanese Fed buys ETFs.......[Personal ;they may have been buying SDOW, some were.............................................................................................. LOL]Some selling SDOW + related now, mid morning/9;50 CST

dozu888 · Mar 16, 2020

tommcginnis said:
First, I really don't understand the FED hate that pervades ET posts all the time. I don't get it. They have two aims -- *mandates* -- and they consistently address them better than perhaps any other governmental agency aside from the armed services.

Second, regarding this weekend drop: I'm sure that 100 years from now, a "TOP SECRET" folder will become public, showing tiny little trumPidiot hand-prints all over this action. Why do I think that? The silence from The Orange House. The FED drops that much, and Stable Genius has nothing to say?!?!? No way.

(But when I'm not dreaming up Vast Right-wing Conspiracy Theories, I think about the effect of airlines, bars&restaurants, hotels, schools of all levels -- and all the other social-gathering industries and their facilitators (gasoline stations, ticket printers, disposable plate makers, linens manufacture and laundry, etc etc etc) -- and then I think about removing all of that revenue from the next S&P500 earnings estimates..... and then thinking about a p/e for the remnants.)

And then 2400 looks kinda generous, no?

people are morons, the 100 IQ crowd pointing fingers at some of the most intelligent economists in the world.

I have sat in a meeting with Cleveland Fed president Loretta Mester.... these people are extremely smart with the best understanding of the economy you can ask for.

morons keep going gold stand abolish the fed blah blah.... morons don't understand we have tried that before.... gold failed hundreds of years ago, savings and loans crisis already happened once.

if you don't have central bank we end up with massive bank failures with no food on the shelves... that's what the morons are asking for.

dozu888 · Mar 16, 2020

tommcginnis said:
First, I really don't understand the FED hate that pervades ET posts all the time. I don't get it. They have two aims -- *mandates* -- and they consistently address them better than perhaps any other governmental agency aside from the armed services.

Second, regarding this weekend drop: I'm sure that 100 years from now, a "TOP SECRET" folder will become public, showing tiny little trumPidiot hand-prints all over this action. Why do I think that? The silence from The Orange House. The FED drops that much, and Stable Genius has nothing to say?!?!? No way.

(But when I'm not dreaming up Vast Right-wing Conspiracy Theories, I think about the effect of airlines, bars&restaurants, hotels, schools of all levels -- and all the other social-gathering industries and their facilitators (gasoline stations, ticket printers, disposable plate makers, linens manufacture and laundry, etc etc etc) -- and then I think about removing all of that revenue from the next S&P500 earnings estimates..... and then thinking about a p/e for the remnants.)

And then 2400 looks kinda generous, no?

I just made a post in my thread.... China has like -14% GDP for the quarter... its no biggie really.

https://www.elitetrader.com/et/threads/china-numbers-out.341681/page-2

murray t turtle · Mar 16, 2020

dozu888 said:
people are morons, the 100 IQ crowd pointing fingers at some of the most intelligent economists in the world.
I have sat in a meeting with Cleveland Fed president Loretta Mester.... these people are extremely smart with the best understanding of the economy you can ask for.

morons keep going gold stand abolish the fed blah blah.... morons don't understand we have tried that before.... gold failed hundreds of years ago, savings and loans crisis already happened once.

if you don't have central bank we end up with massive bank failures with no food on the shelves... that's what the morons are asking for.

%%
Good points;
not that food supply is dependant on the FED.
Some grocery stores in debt can be. I remember as a kid working @ Red Food Store. People tended to buy big, around 1st of month+ before a snowstorm. Same old patterns...……………………………………………………………………...