Igår kväll (Söndag) meddelade USAs centralbank (Fed) att dom sänkte sin styrränta drastikt till 0% och att dom genomför massiva tillgångsköp. Man kommunicerade även att dom inte har för avsikt att införa negativ ränta, vilket gör att räntan nu är så låg som den kan bli.
Det kan framstå som svårbegripligt att börsen dyker efter att Fed har meddelat sina stimulans åtgärder, men det beror på en felsyn. Tanken är att räntesänkningar skall få folk att låna och spendera mer, men det är inte räntan som avgör huruvida folk skuldsätter sig mer. A&O för om folk skall öka sin skuldsättning är om man har en optimistisk eller negativ framtidssyn.
The Federal Reserve will return to its origin and it will do what it was originally designed to do. They will lend now on commercial paper rather than just government. As everyone knows, this has been my strongest recommendation and criticism of Quantitative Easing. The Fed was originally designed to create Elastic Money buying corporate paper to prevent a recession and job losses. . .
Injecting cash into the banks FAILED because the banks lacked the confidence to lend money. They turned and placed money at the Fed in Excess Reserves. Not that that bottomed in September 2019 with the Repo Crisis and is back on the rise again as banks are not lending.
Lowering rates FAILED because people will not borrow if they lack confidence in the future, Hence, Europe and Japan have destroyed their government bond markets and now they talk about nationalizing companies and eliminating paper money while seizing cryptocurrencies. They have no monetary power left in the central bank. All they can do now is turn draconian and seal the fate of their economic future.
The Fed will take a different path and lend directly to corporations because the bankers will hoard the cash and NEVER help the economy. This has been my #1 recommendation to save the economy and the central bank.
(www.armstrongeconomics.com - federal-reserve-to-return-to-its-original-design)
Det kan framstå som svårbegripligt att börsen dyker efter att Fed har meddelat sina stimulans åtgärder, men det beror på en felsyn. Tanken är att räntesänkningar skall få folk att låna och spendera mer, men det är inte räntan som avgör huruvida folk skuldsätter sig mer. A&O för om folk skall öka sin skuldsättning är om man har en optimistisk eller negativ framtidssyn.
The Federal Reserve will return to its origin and it will do what it was originally designed to do. They will lend now on commercial paper rather than just government. As everyone knows, this has been my strongest recommendation and criticism of Quantitative Easing. The Fed was originally designed to create Elastic Money buying corporate paper to prevent a recession and job losses. . .
Injecting cash into the banks FAILED because the banks lacked the confidence to lend money. They turned and placed money at the Fed in Excess Reserves. Not that that bottomed in September 2019 with the Repo Crisis and is back on the rise again as banks are not lending.
Lowering rates FAILED because people will not borrow if they lack confidence in the future, Hence, Europe and Japan have destroyed their government bond markets and now they talk about nationalizing companies and eliminating paper money while seizing cryptocurrencies. They have no monetary power left in the central bank. All they can do now is turn draconian and seal the fate of their economic future.
The Fed will take a different path and lend directly to corporations because the bankers will hoard the cash and NEVER help the economy. This has been my #1 recommendation to save the economy and the central bank.
(www.armstrongeconomics.com - federal-reserve-to-return-to-its-original-design)
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