Tom Iceland's Blog - Posts Tagged "ecb"
Economic Update April 2020
The global central banks controlled by the socialist alliance have intensified the financial markets’ collapse: The volatile economic trends started in March 2020 when the unsustainable market peaks succumbed to the distress from the coronavirus pandemic and OPEC-Russia oil price war in the first quarter. As the financial markets collapsed the Federal Reserve (Fed) was impotent to do much about it, yet took panicked actions ( i.e. ZIRP, $700 billion QE) that at first intensified the sell-off for most of March, then turned into a mini-rally in April when the Fed announced that, in addition to overnight money markets, it will bail out the major debt markets (i.e. high-yield “junk”, municipal and investment grade bonds).
The erroneous actions taken by the Fed, in concert with other major global central banks, are only compounding the unsustainability of the financial markets that will correct sharply when the first quarter earnings season brings its expected dismal outlook for the remainder of 2020.
The erroneous actions taken by the Fed, in concert with other major global central banks, are only compounding the unsustainability of the financial markets that will correct sharply when the first quarter earnings season brings its expected dismal outlook for the remainder of 2020.
