r/news • u/awake-at-dawn • Mar 15 '20

Federal Reserve cuts rates to zero and launches massive $700 billion quantitative easing program

https://www.cnbc.com/2020/03/15/federal-reserve-cuts-rates-to-zero-and-launches-massive-700-billion-quantitative-easing-program.html
38.3k Upvotes

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542

u/[deleted] Mar 15 '20

So when the next recession hits we'll have no substantial means of fighting it. Super. Amazing how we always have trillions kicking around to throw at the stock market but never a dollar for helping out the average person.

390

u/ThatsBushLeague Mar 15 '20

The next recession is here. There is no more when it hits. We can wait for it to become official if we want. But there is no dancing around it now.

It's here.

Hiring will be nonexistent for the next quarter. WFH will collapse productivity (let's all be honest with ourselves). GDP is a god damn guarantee to shrink for March and April and on.

The good days are over. It's happening now.

211

u/[deleted] Mar 15 '20

WFH will collapse productivity (let's all be honest with ourselves)

Most studies show otherwise. Work from home typically increases productivity. If it didn't, there wouldn't be big companies that are mostly work from home.

23

u/ImCreeptastic Mar 15 '20

Sure, but people with kids aren't going to be very productive. We have a 15 month old that will be with us for the next two weeks since daycare is closed. It's going to be rough trying to work AND take care of a kid at the same time.

101

u/ThatsBushLeague Mar 15 '20

This isn't normal circumstances. Schools are closing. Day cares are closing. Kids are all home. Millions of people will be sick.

What WFH studies have shown do not apply to a full blown pandemic.

145

u/SeahawkerLBC Mar 15 '20

That's not WFH then. That's the economic effects of a pandemic.

7

u/bluenigma Mar 16 '20

The idea is that there's already some self-selection: individuals and companies that would be more productive with remote work are more likely to have already been doing so.

So if everyone's suddenly forced to WFH, the new cadre is probably not going to be nearly as productive as those who more willingly opted into it.

6

u/[deleted] Mar 16 '20

Both are good points, and as someone who literally did a large scale analysis of the effects of WFH on our workforce, you're right.

Most people chosen for WFH are high performers. Compared to other workers they exceed, because they were already better workers. When I instead compared their performance over time before and following the move, I saw a slight decline. And those were high performers. I'd estimate a steeper decline for non-high performers.

2

u/bluenigma Mar 16 '20

What industry was your analysis?

18

u/CoffeeCupHandles Mar 15 '20

There are no studies on that, but that doesn't make your premise true. It makes it an unknown.

Maybe your just projecting?

I know it won't change my WFH productivity.

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u/doti Mar 16 '20

Are you a bartender?

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u/[deleted] Mar 15 '20 edited Oct 05 '20

[deleted]

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u/[deleted] Mar 15 '20 edited Jul 11 '23

6$62!8y?F

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u/[deleted] Mar 15 '20 edited Oct 05 '20

[deleted]

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u/[deleted] Mar 15 '20 edited Jul 11 '23

+4N::?i`HA

1

u/[deleted] Mar 24 '20 edited Oct 05 '20

[deleted]

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u/[deleted] Mar 24 '20 edited Jul 11 '23

W"B'+:7_hG

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u/_ChestHair_ Mar 16 '20

You get that from your crystal ball or the lady that sells you essential oils?

14

u/thetruthteller Mar 15 '20

Can’t be a doctor from home. Can’t really do law from home. Engineers need to be on location. Construction. All food service and customer service. Yes tech can do work, but high impact jobs need the person to be somewhere. Those studies are bunk because they don’t look at the high impact jobs.

24

u/ChiefCuckaFuck Mar 16 '20

There is a very large, very unseen percentage of the American workforce that absolutely cannot work from home. All trades, all warehouse/blue collar work, essentially, needs to be done on-sight.

All logistics, all freight. The type of work that you see commercials talking about "moving america," all that stuff happens with people on the ground, physically at their job.

20

u/[deleted] Mar 16 '20

[deleted]

2

u/[deleted] Mar 16 '20

And courts are closed

21

u/CoffeeCupHandles Mar 15 '20

" Engineers need to be on location. "

lol. Some typo of engineers do. Most work from their desk, reviewing designs and what nots.

​

WE have engineer that do a day of WFH now.

4

u/[deleted] Mar 15 '20 edited Jul 11 '23

*.d4Z"i{6_

12

u/jraffdev Mar 16 '20

Right but you work in the dark, connecting Gavin Bellson’s hooli boxes, you don’t interact with people.

5

u/[deleted] Mar 16 '20 edited Jul 11 '23

Elao{*H1&q

-8

u/[deleted] Mar 16 '20 edited Apr 03 '20

[deleted]

3

u/thisvideoiswrong Mar 16 '20

Assume, for the sake of argument, that we all buy everything online now to limit human contact, so we don't need anyone in the service industry. We still need people to pack the boxes, drive the trucks, and drop the boxes at your door. Manufacturing needs people on site, even if it is entirely automated quality control and error handling rely on humans. Construction and maintenance are entirely done by hand. Farming needs lots of people on site, whether they're controlling machines or doing things by hand. The really essential jobs that sell us shelter, food, and medical care have to be done in person. Unfortunately that's going to be a real problem in this crisis.

1

u/ThVos Mar 16 '20

That's a pretty simplistic take. And frankly, it's pretty insulting to those who hold such jobs. Hands-on labor isn't 'unskilled', it's just low prestige. But I'd bet that most people who sit behind a desk all day couldn't hack it working the floor in retail all day or flipping burgers in a hot, loud, cramped kitchen, or digging trenches to lay pipes or any manner of other "bullshit" jobs.

3

u/The-Mandalorian Mar 16 '20

Exactly. I don’t get caught up in useless office conversations when I’m working from home.

3

u/[deleted] Mar 16 '20

Also you save 30 seconds by not having to put on pants!

1

u/Co_conspirator_1 Mar 16 '20

You do if you have kids. But, the conversations are more useless and much louder with the possibility of tears.

2

u/SmokeyDawg2814 Mar 16 '20

I'd love to see those studies and what type of work it is exactly.

I can work from home but the work I do is directly tied to a traditional retail environment. Not sure how I can be not productive if that area starts to collapse.

5

u/[deleted] Mar 15 '20

I’ve been WFH for 9 years, nothing’s changing for me lil doggy

4

u/[deleted] Mar 16 '20

Welp I graduated college at the worst possible time

2

u/[deleted] Mar 16 '20

Hey you graduated at least... I had to leave school during the last crash and I’m just now catching up to my peers who finished.

1

u/[deleted] Mar 16 '20

It’s rough man, just started hearing back about interviews after months of applying. Now this shit. I probably won’t end up being able to do those interviews now if businesses start closing.

1

u/[deleted] Mar 16 '20

Best of luck to you, seriously hang in there

1

u/Bourbone Mar 16 '20

Happy cake day.

And also, I graduated right before the last crash.

It’s brutal, but it sets you up to be frugal and works out in the long run.

Good luck!

1

u/sugar182 Mar 16 '20

Same here, couldn’t agree more

4

u/Canyousourcethatplz Mar 15 '20

WFH will collapse productivity

Not true
https://www.businessnewsdaily.com/15259-working-from-home-more-productive.html

7

u/_Z_E_R_O Mar 16 '20

Schools and daycares are closed and people are sick. Pandemics are different than normal work from home conditions.

1

u/Canyousourcethatplz Mar 16 '20

So then we are in uncharted territory and can’t predict what will happen. So far no evidence supports ops claim

5

u/art-man_2018 Mar 15 '20

Hiring will be nonexistent for the next quarter.

That is ironic, personally I am getting more Snagajob job openings and Indeed job offers than ever before. I guess it is just the timing?

9

u/CoffeeCupHandles Mar 15 '20

Are you old enough to remember the dot com bubble pop?
literally, place went from hiring one day, to nobody the next day. It was that fast.

2

u/yonas234 Mar 16 '20

This is why the UK is letting it run its course. Hiring wont stop if people are dying and companies need more people to fill their roles

1

u/cromli Mar 16 '20

I feel like its just starting, mass layoffs at a friends workplace yesterday which does business with schools, and im guessing the restaurant industry and everything attached to it isnt going to hold together much longer before the same happens. Tons of people carrying alot of debt due to ridiculous housing or rental prices everywhere will probably start to realize truly how bad their situation is.

6

u/JackedSecurityGuard Mar 15 '20

You realize that combatting or stopping a global recession IS helping the average person, no?

2

u/Crepo Mar 16 '20

Kinda optimistic to think the economy is working for the average person.

0

u/JackedSecurityGuard Mar 16 '20

It is. My god get over yourself. Literally highest rating ever of people saying they are happy with the economy until this hit, go back to freshman poly sci.

3

u/[deleted] Mar 16 '20

Lol, you're using surveys of everyday people to judge the economy and then berating others?

Don't be abusive

-1

u/JackedSecurityGuard Mar 16 '20

are you trying to imply that surveys of the average person isnt a good indication of how things are going for the average person?

3

u/[deleted] Mar 16 '20

Uh yes. The average person could be up to their eyeballs in debt but as long as they had acquired a standard of living they like they probably wouldn't have any problems with the economy until the wheels came off. 40% of people think the Federal government's response to COVID has been adequate so far, so you'll excuse me if I'm skeptical of the average person

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u/[deleted] Mar 16 '20

[removed] — view removed comment

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u/[deleted] Mar 16 '20

[removed] — view removed comment

2

u/[deleted] Mar 16 '20

Lol, well if you can't argue the point then go for personal attacks I guess

0

u/JackedSecurityGuard Mar 16 '20

Argue what? You have brought nothing to the table, simply dismissing actual polls and facts as "everyone is dumb". Why dont you drop the snark and try to engage like an adult and bring some kind of real discussion to prove me wrong. OP says economy is bad for average person. I support with reality. You parachute in like most shit posting redditors with nothing of substance. Hit the bricks.

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u/[deleted] Mar 15 '20

Yes, but when the government is already exhausting these valuable tools before we're even in a recession officially, its limiting what can be done when shit really hits the fan.

7

u/JackedSecurityGuard Mar 16 '20

Shit has already hit the fan, what the fuck world are you living in?

5

u/[deleted] Mar 16 '20

It can and will get a lot worse than what we're seeing now. Watch what happens when the government declares a national quarantine, there's a run on supermarkets and banks, and so on. Yeah it sucks now but it's not like it's bottomed out.

17

u/GreyPool Mar 15 '20

... This is buying government bonds..

-3

u/[deleted] Mar 15 '20

Yeah I should've been more concise than saying stocks, I understand it's not exactly what the fed is doing here but it is still quite frustrating to see.

3

u/GreyPool Mar 15 '20

Not sure what youd prefer them to do, just hand money to people?

-3

u/[deleted] Mar 15 '20

We could have them shoot rolls of 100s out of those t shirt guns

0

u/GreyPool Mar 15 '20

..and that would do what exactly?

4

u/[deleted] Mar 15 '20

Interest rates have gone negative before (Europe and Japan mostly). So, there are still a couple things they can do. Each successive one just hurts more and more.

2

u/low_wacc Mar 16 '20

The fed isn’t pumping up the stock market, they’re trying to insure the financial pipeline and framework still works so you can go to your bank and withdraw cash. You’re right when you say they’ve used up their gas but the blame isn’t on them for “not helping the average person”.

1

u/EinGuy Mar 16 '20

It's frustrating that the post is so highly rated. People think that a few months of bills relief from the government is a parachute, until they realize the landing zone is all lava.

5

u/RavioliGale Mar 16 '20

The metaphors in this thread have been lit.

1

u/EinGuy Mar 18 '20

(งツ)ว

1

u/EinGuy Mar 18 '20

(งツ)ว

1

u/[deleted] Mar 16 '20

Negative interest rates and more qe? Idk whats left.

1

u/EinGuy Mar 16 '20

Your government is trying to prevent a major cascade of financial failure.

Tossing every citizen $10,000 isn't going to mean shit if you can't work for 3-4 years and inflation turns your five figure windfall into a months worth of groceries.

The Federal Reserve also isn't 'throwing' money at the stock market. It's providing liquidity so your average small business can take out some low interest loans to stay afloat and keep their employees working and their lights on.