More and more Western governments seem to be running out of resources to cope with the economic crisis caused by the Coronavirus. So far using multi-million dollar incentive packages that can prevent the collapse of national companies, and that thousands of people become unemployed.
The main expected effect of these packages is to generate greater investor confidence in the market. Preventing them from leaving the financial markets, selling their assets at any price and leading to the collapse of the international economy.
However, so far these measures appear to have been unsuccessful. Well, after today the Federal Reserve, better known as the FED, guaranteed unlimited liquidity to the market, through an aggressive program of repurchase of Treasury bonds. Financial markets have continued to free fall.
So it appears that the Fed's unlimited liquidity offer would not be enough, as Anthony Pompliano put it through his Twiiter account:
“The Fed announced unlimited liquidity this morning and the markets have continued to drop today. Think about this for a minute. "
All this creates additional difficulty in a situation that is already quite complicated in itself. Well, if the measures taken by governments, such as the FED, to stop the financial collapse, they are not reaching investors with sufficient force.
It seems that the world is heading, without anything to stop it, to an economic crisis like we have not experienced until now. Something that will certainly affect the cryptocurrency market, but above all, it will affect all of us as individuals.
It's crazy times. People don't release what is happening but cutting GDP by 50% is not off the cards.