Chain Reaction

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

 

[CrusaderFrank]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their functions as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holding in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

Thanks, Obama!

 

[MeBelle]

Stuff it.

Where did you steal the OP you posted from?

 

[CrusaderFrank]

Stuff it.

Where did you steal the OP you posted from?

Carl Ichan

 

[Mikeoxenormous]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holding in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

Why didnt the brown turd, Oblummer's admin make those kits back when he was in office? I mean he had 8 years to develop it right? Oh yeah, he was too busy partying in the White House with Rag Head Muzzies and Hollyweird elites, instead of being serious about FUTURE outbreaks of deadly virus's coming out of China....Your fucking statement is so retarded, but hey, i expect that from you.

 

[debbiedowner]

Oh boy trumpkins above the stock market is coming back yep it's only down a little over 10% when was over 11% at one time this morning.

 

[debbiedowner]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holding in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

Why didnt the brown turd, Oblummer's admin make those kits back when he was in office? I mean he had 8 years to develop it right? Oh yeah, he was too busy partying in the White House with Rag Head Muzzies and Hollyweird elites, instead of being serious about FUTURE outbreaks of deadly virus's coming out of China....Your fucking statement is so retarded, but hey, i expect that from you.

Yep let's blame someone else for test kits for a new virus, what a fucking dunce.

 

[progressive hunter]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

 

[g5000]

The interest rate banks pay you for your savings account is going to be shit for many more years to come.

Think about it. I just got a 2.65% interest rate from a credit union.

They obviously won't be able to pay their savers much interest if they are going to make any profit. The margin between the rate they lend money and the rate they pay their savers is running out of room!

 

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Actually, our government was offered existing test kits and turned them down. For no known reason.

As a result, we are six weeks behind the rest of the world.

I'm sorry your partisan blinders are keeping you from seeing reality, and forcing you to literally live in denial.

 

[g5000]

It is a simple fact that the US has been extremely slow at rolling out testing for the coronavirus.

This means we have no actual idea how many infected people we have. This means the virus is uncontrolled.

The numbers are going to soar.

You can deny that and look the fool, or you can accept these facts.

 

[progressive hunter]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Actually, our government was offered existing test kits and turned them down. For no known reason.

As a result, we are six weeks behind the rest of the world.

I'm sorry your partisan blinders are keeping you from seeing reality, and forcing you to literally live in denial.

then you should have said that instead of lying,,,

 

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holding in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

Why didnt the brown turd, Oblummer's admin make those kits back when he was in office? I mean he had 8 years to develop it right? Oh yeah, he was too busy partying in the White House with Rag Head Muzzies and Hollyweird elites, instead of being serious about FUTURE outbreaks of deadly virus's coming out of China....Your fucking statement is so retarded, but hey, i expect that from you.

Yep let's blame someone else for test kits for a new virus, what a fucking dunce.

South Korea was testing 200,000 people a day while our President was blowing off the seriousness of this pandemic.

So this "test kits for a new virus" excuse is a hoax. Other countries are way ahead of us in their testing.

We blew it. Simple fact. Sorry.

 

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Actually, our government was offered existing test kits and turned them down. For no known reason.

As a result, we are six weeks behind the rest of the world.

I'm sorry your partisan blinders are keeping you from seeing reality, and forcing you to literally live in denial.

then you should have said that instead of lying,,,

I did not lie.

It is the truth that our government has been extremely slow in rolling out test kits. Slower than many other nations.

Our government STILL does not have test kits on the street in sufficient numbers.

 

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Our government is responsible for coordinating the response to a pandemic.

So far, they have fallen on their face.

 

[progressive hunter]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Actually, our government was offered existing test kits and turned them down. For no known reason.

As a result, we are six weeks behind the rest of the world.

I'm sorry your partisan blinders are keeping you from seeing reality, and forcing you to literally live in denial.

then you should have said that instead of lying,,,

I did not lie.

It is the truth that our government has been extremely slow in rolling out test kits. Slower than many other nations.

Our government STILL does not have test kits on the street in sufficient numbers.

well nancy should have thought about that instead of trying to get free abortions,,,

 

[progressive hunter]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Our government is responsible for coordinating the response to a pandemic.

So far, they have fallen on their face.

they dont run the hospitals,,,its their job to get test kits,,,

 

[g5000]

Our president takes credit for just about everything positive which happens on the planet. If he could, he would take credit for the sun rising.

But when asked if he takes any responsibility for the bungling of the response to this pandemic, he said, "No, I do not take any responsibility."

Harry "The Buck Stops Here" Truman is rolling in his grave.

Not longer after claiming no responsibility, Trump sent Lou Dobbs at Fox News an autographed picture of the surge in the Dow which occurred during his Friday presser.

That sums up your President perfectly. "I do not take any responsibility...except when I do."

 

[g5000]

Some of this post is going to be a little complicated, but some of it will explain what impact current events are going to have on you personally.

First, our government has been extremely slow in rolling out test kits for Covid-19. This is not a partisan opinion, it is a statement of fact.

As test kits do finally hit the streets in large numbers, we are going to see the identification of infected people skyrocket. The number is going to soar.

When the numbers start to soar, governors are going to feel even more compelled to take drastic action. Many states will probably keep their schools closed for the rest of the school year. So prepare for that. And think about the ripple effects of that.

Restaurants and bars will be shuttered, and so forth. This is going to have a serious impact on the economy since the bulk of our GDP depends on consumerism.

That's Main Street.

There is more impact on your life coming, but I first have to explain what is happening on Wall Street and how that will affect you as well.

The subprime bubble back in the day was greatly fueled by low interest rates at the behest of the Federal Reserve.

When the bubble burst, the Fed lowered interest rates even more in order to bail out Wall Street.

This has caused an even bigger bubble in corporate debt. Huge. You don't even want to think about it, trust me.

But the biggest side effect of the Fed's low interest rates has been massive speculation by hedge funds and other investors.

Why? Because when interest rates are low, bonds from blue chip companies pay extremely low interest to investors. So to make any big money, you have to take gigantic risks at economies of scale.

And that is precisely what has been going on.

In order to achieve this, hedge funds have to borrow money and then make big bets. And they leverage the shit out of themselves.

To borrow money, you have to have collateral. When you take out a mortgage, your house is your collateral. If you default, the bank takes your house.

A hedge fund uses stocks and bonds as collateral.

And now we come to the crash of recent weeks.

As stocks have crashed in value, that means their function as collateral has collapsed. The banks which have lent money to the hedge funds want to make sure that if the hedge funds collapse, they get their money back. That means they are calling on the hedge funds to put up more collateral to cover the loss in stock values.

This is a "margin call".

So in the past couple weeks, the hedge funds have been trying to sell their bond holdings in order to come up with some cash for their margin calls.

Well, what happens when everyone tries to sell something at the same time? Remember the subprime bubble? Everybody tried to sell their houses at the same time, and prices collapsed.

The same thing was happening in the bond market. What hedge funds were asking was higher than what buyers were offering. A gap, or "spread", opened up. This was rapidly leading to a liquidity crisis.

A lot of companies use the repo market to pay the salaries of their employees. If cash froze up, millions of Americans would suddenly find they weren't getting paid.

So the Fed stepped in and provided half a trillion dollars of liquidity, with a promise of another trillion more.

Okay, fine. Except it wasn't. The stock market kept diving, which caused bigger margin calls. This was turning into a downward spiral.

So now the Fed is dropping borrowing costs to zero. Those who need cash for margin calls can borrow the cash they need for almost nothing.

The Fed is actually exacerbating the situation by making interest rates so low that speculators will have to make even riskier bets at even greater economies of scale to earn returns on their investments.

What does this have to do with you, other than watching your 401(k) melt down?

Well, some of you are going to lose your jobs. If your company heavily depends on consumers, you might want to prepare for that. If you work for a grocery store, you are probably going to do just fine, though. Grocery stores are hiring.

Also, with the Fed interest rate at 0.25, you are going to be punished for saving money. It won't be worth saving, and for all we know the Fed is going to go negative, and then you literally will be punished for saving money.

On the bright side, if you have a mortgage on any property you plan to be holding onto for the foreseeable future, you should seriously think about refinancing. I just refinanced some property for 2.65%.

This will be a way to cut back on your household expenditures at a time you are probably going to need to.

Your credit union will probably offer the best rate.

There is going to be a lot of chaos for a while longer.

well since your first sentence was nothing but a complete lie I wont bother with the rest of it,,,

the government doesnt make test kits,,,

Our government is responsible for coordinating the response to a pandemic.

So far, they have fallen on their face.

they dont run the hospitals,,,its their job to get test kits,,,

It is the government's job to get those test kits to the hospitals.

 

[g5000]

I wonder if Trump is sending Dobbs an autographed picture of the Dow's crash this morning.

"I take no responsibility!"