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I got worried when Kai Ryssdal opened Marketplace last Thursday with, "this is the scary part." For those not familiar, he's a voice of extreme moderation and c

I got worried when Kai Ryssdal opened Marketplace last Thursday with, "this is the scary part." For those not familiar, he's a voice of extreme moderation and calm regardless of what happened that day or week in the markets. I think what we're seeing is the market trying to price in the complete halt of the worlds' economies for an unspecified length of time. Monetary policy doesn't cure coronavirus, and until we see the end of the health crisis I don't think we'll see the floor of this ongoing crash.

realusername 7y ago
That's also my opinion, monetary policies have no effect because this isn't a financial crisis, it's an existential crisis because economies needs to stop with a lot of uncertainty, no amount of money can solve that.
- jmisavage 7y ago
  This rate cut is just feeding into fears.
nemo44x 7y ago
I think a lot of people are trying to get out before the markets as closed and impossible to liquidate if needed.
the_snooze 7y ago
>Monetary policy doesn't cure coronavirus, and until we see the end of the health crisis I don't think we'll see the floor of this ongoing crash. There's a Planet Money that talks about the virus and the economic response to it. The main takeaway is that it's completely misguided to think about economics now. The underlying problem is a public health crisis. One of people interviewed in that episode likened the administration's response to wringing out your shirt as a storm is rolling in, when in fact we should be seeking shelter to stay dry. https://www.npr.org/2020/03/13/815677688/episode-979-medicine-for-the-economy https://www.npr.org/2020/03/13/815677688/episode-979-medicin...