{"id":51865,"date":"2020-03-20T15:47:05","date_gmt":"2020-03-20T20:47:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51865"},"modified":"2020-03-20T15:47:08","modified_gmt":"2020-03-20T20:47:08","slug":"stocks-suffer-worst-week-since-lehman-despite-biggest-fed-bailout-ever","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51865","title":{"rendered":"Stocks Suffer Worst Week Since Lehman Despite Biggest Fed Bailout Ever"},"content":{"rendered":"\n

Stocks Suffer Worst Week Since Lehman Despite Biggest Fed Bailout Ever<\/a><\/h3>\n\n\n\n

This has been the sharpest market selloff in history…<\/strong><\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

This was the worst week since Lehman (and worst 4 weeks since Nov 1929)<\/strong> for The Dow Jones Industrial Average…(Dow was down 18% during the Lehman week and 17.35% this week)<\/strong><\/p>\n\n\n\n

\"\"\/
Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

Despite The Fed gushing a stunning $307 billion into the markets – almost double its previous biggest liquidity injection<\/strong>\u00a0(in March 2009)…<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Maybe it was the ‘stock’ and not the ‘flow’ after all…<\/p>\n\n\n\n

\"\"\/
Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

Stocks still have a long way to go to erase all the delusion<\/strong> (compared to actual profits)…<\/p>\n\n\n\n

\"\"\/
Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

And if you think stocks already fell too much, think again… <\/strong>Total market cap to GDP is just now retesting the peak of the housing bubble levels!<\/p>\n\n\n\n

\"\"\/
Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

As @TaviCosta notes, “This puts into perspective… We truly were at absurd valuations.”<\/strong><\/em><\/p>\n\n\n\n

Never Forget!!<\/p>\n\n\n\n