General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThis stock market sell-off is scarier than 2008
Investors are in full-blown panic mode about the coronavirus. And while I hate to be the bearer of bad news, people shouldn't count on the Federal Reserve or other central banks to save the day.
Yes, the Fed can do lots of things to help soothe frayed nerves when stocks are in free fall, but there is little that the Fed or President Trump and Congress, for that matter can do to solve this biological crisis for the markets and the economy.
I covered the Great Recession in 2008 and 2009. That was a terrifying time but this seems a lot scarier.
Former Fed chair Ben Bernanke and George W. Bush's Treasury Secretary Hank Paulson were able to use various "bazookas," like the TARP bailout for big banks and the rescue packages for the auto industry, to ultimately stop the 2008 financial crisis.
https://www.msn.com/en-us/money/markets/this-stock-market-sell-off-is-scarier-than-2008/ar-BB10xvYG?li=BBnb7Kz
bearsfootball516
(6,377 posts)The Dow *only* fell 350 on Friday. I wouldnt be surprised to see another couple days of small falls, before it starts going positive again.
Well see.
Demsrule86
(68,667 posts)the toilet.
ooky
(8,929 posts)into the last hour of trading. I left for a few minutes and came back to see it had closed at 350.
I was like, wtf? Did the Fed run in and start buying for cosmetic purposes in the last 15 minutes?
samnsara
(17,635 posts)..money is a safe place. Our stocks have gone crazy. Right now is a good time to buy stuff on sale.
OnDoutside
(19,970 posts)prolong that uncertainty because he is blocking a proper response to the virus.
D_Master81
(1,822 posts)Stock sell offs are actually very attractive to me. But for those approaching retirement age these times are probably really scary. But for those younger theres gonna be some stuff selling under priced soon.
wishstar
(5,271 posts)As in 2008/2009 it could take several months to reach the bottom if business losses and layoffs start occurring as the virus spreads and businesses and individuals have problems paying their debts. There are extremely high levels of debt already. Interest rate cuts will have limited benefit since rates are already low.
Market bottom could eventually fall to levels of 3 years ago if we move into recession.
duforsure
(11,885 posts)Trump being in charge is inciting those in the markets to sell off driving the markets down. They just don't trust anything he says, and for very good reasons.