The Dow Jones Industrial Average fell by 2,800 points on Monday, in spite of massive intervention conducted by the Federal Reserve to prop up the markets.
Trading needed to be halted temporarily due to the slide due to fears an economic crash could ensue. Stocks such as Boeing, Tesla, Travelers, Home Depot and McDonalds were all hit particularly hard during today’s sell-off.
This occurred after the Federal Reserve announced on Sunday that the borrowing range would be set between 0 percent and 0.25 percent, which they hoped would ease coronavirus-related fears from investors. Their inflationary plotting failed to stem the damage, but they will not be turning back despite their incredible failure.
The Fed’s Open Market Committee has announced that the rates will stay at these levels “until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.” They claimed they were taking this action because “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States.”
Financial analysts are making excuses for the Fed’s reckless and ultimately futile actions.
“Desperate times call for desperate measures, and the Fed is doing just that in an effort to keep credit markets functioning and prevent the type of starving of credit that nearly toppled the global economy into a depression in 2008,” said Greg McBride, chief financial analyst at Bankrate.com. “The Fed needed to act now, before the open of Asian markets in just a few hours.”
President Donald Trump has announced that he is “very happy” with the Fed for initiating their intervention and has “instructed” Treasury Secretary Steven Mnunchin to take further drastic measures to bailout the economy.
Liberal leaders are also begging for more authoritarian government, using the coronavirus as an excuse to push for more illicit state power.
“Let me say it very bluntly,” New York City Mayor Bill de Blasio said. “Federal government, at least the last few days, has started to come alive and do something, but we are so far behind. … If the federal government doesn’t realize this is the equivalent of a war already, there is no way that states and localities can make all the adjustments we need to.”
“The only hope is that the federal government actually wakes up and realizes we’re in a war and takes over the situation and determines how we can actually get through this,” he added. “We have never seen anything like this.”
“Look, the projections — this may not peak until the latter part of April or May. So we have informed the superintendents, while we have closed schools for three weeks, that the odds are that this is going to go on a lot longer. And it would not surprise me at all if schools did not open again this year,” Ohio Governor Mike DeWine said.
The worst damage that may result from the coronavirus may be long-lasting ruin to the global economy, caused by a Fed gone mad with power ruining the dollar and prosperity with its profligate policies.