> no matter how much money you throw at the problem, the market is going to respond with another steep sell-off
There are two problems. A public-health problem, which is killing people. And a quarantine effects problem, which is putting people out of work.
Throwing money at the latter works. It keeps unemployed bartenders paying rent. That keeps them in their homes and their landlords from defaulting.
As the first problem evolves, however, it makes the second worse. That means we don't know how much support is enough. Until we know how bad the first problem is, the second's effects will remain poorly constrained. That turns every public action, with respect to either the first problem or second, into a cause for panic for the markets. (It doesn't help that the quality of communication around these actions has been poor.)
At the same time, everyone who can get liquidity is taking it. That's stressing the notoriously-chaotic credit market. This is a problem entirely manageable through throw-money-at-it central banking solutions.
There are two problems. A public-health problem, which is killing people. And a quarantine effects problem, which is putting people out of work.
Throwing money at the latter works. It keeps unemployed bartenders paying rent. That keeps them in their homes and their landlords from defaulting.
As the first problem evolves, however, it makes the second worse. That means we don't know how much support is enough. Until we know how bad the first problem is, the second's effects will remain poorly constrained. That turns every public action, with respect to either the first problem or second, into a cause for panic for the markets. (It doesn't help that the quality of communication around these actions has been poor.)
At the same time, everyone who can get liquidity is taking it. That's stressing the notoriously-chaotic credit market. This is a problem entirely manageable through throw-money-at-it central banking solutions.