And so it begins (again)…
Markets had a rough day yesterday, with the Dow dropping over 700 points on news that in several states coronavirus is flaring up like a bad case of herpes. The S&P dropped 2.59% and even the Nasdaq fell 2.19% as California and Florida announced the highest rates of new cases of coronavirus in their respective states since this whole fiasco began.
What does it mean? Well, nobody knows. And that's the issue. *Volatility has entered the chat*
But CT, NY, and NJ aren't taking any chances...
Yesterday afternoon the tri-states posted travel restrictions, requiring people who hail from "troubled areas" to quarantine for 14 days. My how the tables have tuned, Florida.
Anything to get excited about?
You mean other than the fact that murder hornets turned out to be a bust?
Well, your crazy aunt who doesn't trust "big brother" could end up on the right side of history, after all... assuming she didn't trade her stockpile of gold bullion for bitcoin.
Yesterday the price of the precious metal hit $1.8k it's highest in 8 years. Spoiler: investors pile into gold when sh*t is hitting the fan.
The bottom line...
So, how is the Patron Saint of Quantitative Easing (read: Jay Powell) going to save us this time? He's already done it...
You see, the US central bank went nuclear on 'rona boi, making $2.3T available to buoy the US economy. But so far, it's only distributed $143B (note: the Small Business Administration has loaned out most of the Payroll Protection Program cash) and its Main Street Lending Program hasn't even made a single loan yet. Not exactly living up to its potential.
So why haven't companies and municipalities taken advantage of Jay's money printer? Well, there are a few reasons...
Some of the programs (we see you Main Street Lending Program) have been difficult to implement. And others, like the municipal facilities, just don't make a lot of sense as they're more of a bandaid than a long-term solution.
Not to mention many companies MacGyvered their own rescue packages before Uncle Sam could save the day (because capitalism), plus the economy recovered much more quickly than Jerry Interest Rates and the gang originally expected.
The good news? Jay Powell has got his finger on the trigger and he already typed in the cheat code for unlimited ammo.
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