HIDDEN IN THE DETAILS: The Market Downturn is Being Blamed on Fears of Coronavirus But Several Experts Claim It’s Due to Actions By the Fed

In 2018 Jerome Powell and the Fed destroyed the hottest stock market and economic growth in US history costing the country trillions and blunting the growth rate.

It was a greater market decline than during the 9-11 attacks.

Fed chairman Jerome Powell is either a complete idiot and failure or a compromised political operative.

He should have shown some integrity and resigned over a year ago.

The markets downturn this week is blamed on coronavirus fears but it may be just as much related to actions by the Fed, per the analysis of experts in the financial sector.

The Markets took a dive this week but even with the worst four days in DOW history, the markets remain up more than 40% since the 2016 election. 

This week’s economic downturn was almost invisible when looking at the DOW historically:

The cause of the downturn was universally claimed as related to the coronavirus.  But some say the FED is to blame for the market downturn. 

For one, the Fed has reached an all-time high for Treasury holdings which are offset by repo lendings:

The Fed claims that “Repos” are used to manage the Fed Funds rate:

Repurchase agreements (also known as repos) are conducted only with primary dealers; reverse repurchase agreements (also known as reverse repos) are conducted with both primary dealers and with an expanded set of reverse repo counterparties that includes banks, government-sponsored enterprises, and money market funds.

Repo and reverse repo operations were used prior to the financial crisis to adjust the supply of reserve balances and keep the federal funds rate around the target level established by the FOMC. At that time, repo operations were typically conducted daily to fine-tune the supply of reserves in the system.

But what the Fed is doing with Repos now is eerily similar to what they did in 2008:

One expert claims the market downturn is entirely related to the Fed and its actions with Repos. 

The Fed was just waiting for the opportunity to do what it did in 2008 again:

Let’s face it, the Fed is political and they hate Trump and America.

It they have to tear apart the economy and the markets to get rid of Trump they will do it.  They already did in 2008.

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Joe Hoft is a Radio Host at TNTRadio.live, Author, Former International Corporate Executive in Hong Kong for a Decade, and a Contributor at TGP since 2016. Joe is the author of five books, including his new bestseller, "The Steal: Volume II - The Impossible Occurs" which addresses the stolen 2020 Election and provides an inventory of issues that prove that the 2020 Election was uncertifiable and never should have been certified for Joe Biden.

You can email Joe Hoft here, and read more of Joe Hoft's articles here.


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