Orange Meltdown, Con't

The Dow cratered after Trump's insane speech last night, going limit down in the first 30 minutes of trading for the second time in a week and losing ten percent in one day.

Amid heightened market turmoil, the New York Federal Reserve stepped in midday Thursday and announced a major asset purchase program, offering $500 billion in three-month repo operations, an additional $500 billion in one-month operations and another at least $220 billion in operations with durations of two weeks or fewer. The New York Fed also said its securities purchases would be along a range of maturities, to match the composition of the Treasury market.

The major infusion of liquidity comes as The World Health Organization officially designated the coronavirus outbreak a pandemic on Wednesday, as the virus spread across more than 100 countries and infected well over 100,000 individuals.

Growing alarm about the severity of the pathogen — and the economic toll — has sent markets into a tailspin. Weeks of panic-driven selling has dragged blue-chip stocks into bear market territory at a breathtaking pace, of less than a month from peak to trough.

In a televised address, Trump said he was planning to suspend travel from certain areas of Europe to the U.S. for the next 30 days. He also announced plans for $50 billion of low interest loans to affected businesses and suggested a delay in the April 15 tax filing deadline.

However, the speech sparked widespread confusion — and failed to mollify panic-stricken investors. Major benchmarks sank deeper into correction territory at the open, triggering a circuit-breaker during the regular session shortly after 9:30 a.m. ET.

 
The Fed repo operation did nothing.  Stocks still crashed 10% by the end of the day. We're heading back into 2008 territory with almost all of the guardrails removed, and nothing changes the fact Donald Trump is still in charge during a global pandemic and has no idea what to do.

Stock market indicies have lost 28% in one month.

There is no reason to believe they will recover anytime soon.

Trump can no longer lie his way out of this.

The Trump Crash is here.

Buckle up.