Interventionism Run Amok
Dear Rundown Reader,
“I’m angry, quite honestly,” says our contributor today.
“Shutting down entire states because of the coronavirus is just ridiculous. There are other factors that should be considered alongside public health.
“What about the economy? We have towering unemployment, a cratering stock market and businesses that will likely go under. For what? So we can extend the repercussions of a virus longer?
“I say let nature take its course instead of bubble wrapping everyone and locking them in their homes. If enough people become infected with coronavirus — and some 96 to 98% will survive — we’ll develop herd immunity against this virus that will protect us in the future.
“Look, I’m close to 60, and I lost a lot of money I was counting on for retirement. Plus, I work for a small engineering firm, so I’m wondering if I’ll still have a job when this coronavirus madness is over.
“I’m totally frustrated with the government’s response to this (federal and state), and wondering if I’ll ever recover.”
We hear you. There’s a lot of fear out there. And if you share our reader’s sentiment — or not — we want to hear from you too.
Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Friday, Mar. 27, 2020
A Prediction No One Wanted To Come True
So it’s happened. A subject we first broached at The Rundown in Sept. 2019…. negative interest-rate bonds.
CNBC reports: “Yields on both the 1-month and 3-month Treasury bills dipped below zero Wednesday, a week and a half after the Federal Reserve cuts its benchmark rate to near zero and as investors have flocked to the safety of fixed income amid general market turmoil.
“The one-month traded at minus-0.053% while the three-month was at minus-0.033%.”
Negative interest-rate bonds have been a thing in Europe for years… and acclaimed libertarian Ron Paul said they’d be coming to America — eventually.
“$17 trillion worth of bonds [are] in negative interest rates. It’s never existed before… We have the biggest bubble in the history of mankind,” he said.
“We will join the rest of them and go to total negative rates in hopes that that will be the solution,” Paul predicted.
But don’t expect the Fed’s intervention to work: “Every time you lower interest rates below market levels and create new credit, that’s a bubble.”
CNBC said at the time: “According to Paul, central banks which drastically lower interest rates destroy the pricing mechanism in financial markets.”
Paul said at the time he didn’t know when the bubble would burst — or what would pressure it — but we think a global pandemic fits the bill.
Market Rundown for Friday, Mar. 27, 2020
The S&P 500 Index is down almost 100 points to 2,534.
Oil’s down 5.6% to $21.34 for a barrel of WTI.
Gold’s lost $17.10 per ounce to $1,643.
Bitcoin is down $159.27 to $6,604.48.
Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.
Take it easy. We’ll talk more Monday.
For the Rundown,