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A comment on Federal Reserve slashes interest rates to zero. Parent comment

Re:Federal Reserve slashes interest rates to zero by bcrosby95 on Sunday March 15, 2020 @08:11PM (#22588216)
It's foolish because it's literally impossible to avoid a heavy recession or depression when people are told to stay inside and do nothing.

The odds of this action working out well now are slim to none. Then when it's actually needed they will have to do it again. You'll end up with the same non recovery recovery where people are barely getting by but certain asset classes are inflated to the moon.

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Re:Federal Reserve slashes interest rates to zero by dcftoapv on Sunday March 15, 2020 @10:05PM (#22589030)
No, it's not foolish. We need to keep markets liquid to avoid a lending crisis. That's why the fed announced asset purchases. They don't do them all at once. They buy steadily over a period of time to help keep prices stable. That's very important.

They had to do rate cuts now because it takes a long, long time for them to work (measured in years rather than months). That was a preventative measure, not a band-aid.

Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies.

We should be far more worried about (the lack of) policy responses from DC. DC has no idea wtf they're doing, and it shows.

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Re:Federal Reserve slashes interest rates to zero by amznthrowaway5 on Monday March 16, 2020 @03:58AM (#22590877)
> Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies.

Isn't that the same thing we were told in 2008?

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Re:Federal Reserve slashes interest rates to zero by dnautics on Monday March 16, 2020 @02:28PM (#22595727)
> Look, guys, I promise you the fed knows wtf they're doing. These guys live and breath to be ready to respond to these type of emergencies.

There's no possible way this could go wrong.

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Re:Federal Reserve slashes interest rates to zero by dcftoapv on Tuesday March 17, 2020 @05:08AM (#22603062)
Given the guy that I just responded to called liquidity injections foolish, you should want to take your chances with the fed.

If the fed hadn't announced that action last night then the hell that would have rained down on Monday would have gone down in history with Lehman and Black Monday.

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