Qatar Airways says it will be surprised if travel demand returns to pre-pandemic levels before 2023-24

FED TO START BUYING JUNK CORPORATE BONDS FROM ZOMBIE COMPANIES

In violation of free market mechanics where dubious firms go bankrupt during a recession,the Fed is now printing money to buy junk corporate bonds and the ETFS that track these junk bonds.

To make things worse,the Fed is outsourcing the bond buying scheme to Blackrock,the world's largest asset management firm with 7.43 trillion USD of assets under management.Blackrock has several bond funds and its obvious they will use the Fed money to buy their own bond funds making even larger profits for Blackrock.Seriously.More billions for billionaires



Imagine if Opus Dei started buying corporate bonds.Should Patrick Njoroge do that?

Global stocks rout after Fed chairman Jerome Powell comments

Jerome's comments were at least realistic.There will be no immediate recovery or what US investors call V shaped recovery.Until a covid-19 vaccine which is possibly 12-18 months away is developed (considering that there has never been any successful vaccine developed for other coronaviruses strains) or viable anti-viral drug is availed,the threat of Covid-19 remains a significant global health and economic threat.

US stock market is living up to the 3 phases of stock market action during a recession ie

1)Liquidation Phase-An event eg Covid-19 or real estate burst in 2008 or October 1929 crash results in mass panic and steep violent sell off.The liquidation phase occurred in March 2020 where the S&P 500 recorded its fastest decline in history

2)Hope Phase-Fed intervenes and prints a mammoth amount of dollars to buy asset classes and stock and other asset markets stage a dead cat bounce.April 2020 saw the largest rally of US stocks since the 1931 hope phase of the great depression as Fed injected trillions to purchase all asset classes.People assume the worst is over and buy back stocks in this false rally

3)Bankruptcy phase-Reality finally dawns on investors that the recession will last longer than expected.Bankruptcies especially of small and medium enterprises that did not benefit from Fed money printing bailouts start to go under.Retailers and restaurant chains in the US have already started to file for bankruptcy then the real crisis begins and stocks stage a long drawn out decline just like the 1931 hope phase collapsed into a decade long depression in the 1930s





US markets maybe approaching the end of the hope phase and the beginning of the bankruptcy phase though stocks could still rally as Fed money printing is a exceptionally powerful manipulative engine.It remains to be seen when the real phase 3 crisis will begin

Tell opus Dei to start stocking up on gold