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The Fed’s Baffling Response to the Coronavirus Explained

Originally published at http://www.commondreams.org/views/2020/03/11/feds-baffling-response-coronavirus-explained

Man, I’m glad that I never majored in Finance in college.

This is not related to this story but I need to make more people aware of this because it’s going to spread
Sad news:

Truthdig Staff Announces Work Stoppage

ttps://www.truthdig.com/articles/truthdig-staff-announces-work-stoppage/
(snip)
To reiterate, we are not striking because we want to harm Truthdig or anyone at the publication. Quite the opposite: We are striking because we care deeply about the website and are committed to its long-term health. We hope to receive a response in a timely fashion and that this work stoppage will be short-lived.

Sincerely,

Chris Hedges

Kasia Anderson

Jacob Sugarman

Natasha Hakimi Zapata

Eunice Wong

Ilana Novick

Mr. Fish

Paul Street

Lee Camp

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Terrible. TruthDig is a needed resource.

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This is an excellent article about how to contain the 2008 banking crisis. But with the global swap market now at $600T, the shadow banking system probably around $100T, and risk concentrated in the clearing houses, a chain reaction could overwhelm any federal response. This would not be a haircut, but a beheading. Sorry, I have no idea what a politically acceptable solution looks like. Nationalize the big banks if you like that, but it will not do the trick. Plus, would Secretary of the Treasury Jamie Dimon shepherd this? Steve Mnuchin?

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I just saw this on Mr Fish’s site “clowncrack”
I guess the rank and file over at Truthdig would like things like 2 weeks of vacation, paid holidays and sick time, parental leave, and decent working conditions.
The horror! The horror.

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It’s like listening to a song you can’t get out of your head.
Lower interest rates. Cause bubbles. Bubbles burst. Lower interest rates again. Then demand a bail out or you’ll crash the economy.
Second verse same as the first.

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There’s more to it than that. Sheer is being pushed out. They are objecting to that also

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Always love Ellen Brown’s approach but only understand half of it. It sounds like our system is one big ponzi scheme?

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Baffled!??

Thank you, I am not baffled anymore.

From the link:

“The contracts, none of which were evidently seen or approved by Scheer, also ask workers to surrender most of their labor and civil rights in apparent violation of the state of California’s labor laws.”

The “waiver” to be signed in return for a one-off signing bonus cover just about every legal labor right and releases every stockholder etc. from any and all complaints. For me that reads like a Mitt Romney style take-over to destroy functionality in order to establish totalitarian control right down to your short-hairs.

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four hours after your post:

"The Federal Reserve Bank of New York announced Wednesday that it would increase its lending in short-term funding markets in an attempt to calm investors’ fears as the coronavirus wreaks havoc in the financial markets

In a statement, the regional Fed bank said it would increase its daily overnight repurchase agreement (repo) operations to at least $175 billion for the next month. That is an increase from the $150 billion announced Monday.

In addition, the bank said “the Desk will also offer three one-month term repo operations, with the first operation occurring on Thursday, March 12, 2020. The amount offered for each of these three operations will be at least $50 billion.”

These operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures. The New York Fed also said these moves “should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”

I missed the decimal point on the TV screen and had thought it was 505 billion dollars. But, the panic may calm down - or not.

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Ellen, you rebel, you!!

I had thought we could teach our school children to save money by having their own individual accounts at post offices.

Illinois is first in line to borrow a few trillion dollars at 1.5% for infrastructure from the Federal Reserve. Likely, most of the loot will end up in downtown Chicago and Dubai.

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All I just read was more good reasons to vote for Bernie Sanders. Too bad it’s too late.

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Not. These are band-aids by the Fed.

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You are correct.
The answer is NOT.

Suggest another 1,800 dollar drop for the Dow index.
And we all start using the term ‘dollar’ instead of ‘points’ for these minor indicators of our vast economy.

Additionally, the Fed has permission and ability to purchase state bonds that could be used for genuine infrastructure projects - and not just shovel ready. May be up to 2 trillion dollars. Does not have to be issued all on the same day.

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The Casino Economy…The private FED always bailing out the biggest gamblers…and the rich just keep on enriching themselves…

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Sounds like one of the major 6 Comm Corps are taking over Truthdig. I have trouble going there because their ads always jam up my laptop. I prefer reading articles like this one here at CD rather than there at TD.

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It’s never too late to do the right thing. Sanders and “Not me, Us.” still needs an ever-growing base of citizens in action to pressure Congress and the other 2 branches to do the right thing, too. (Any of them who survive this latest bioweapon leak…Mother Earth may be culling the most hard-headed, swell-headed, and foolhardy of that bunch…)

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