Markets aren't healed by the President's speech or the Fed's $1.5T stimulus medicine

Like Advil for Strep throat... On Wednesday, the President announced a new travel ban and proposed $50B of new loans for small and medium businesses struggling from the effects of the Coronavirus. Then yesterday America's Central bank announced something 30x bigger — $1.5T of fresh loans for financial institutions that need it. Markets seemingly rejected the stimulus pill, hammering stocks down another 10% Thursday — that's the Dow's worst day since 1987.

• The Fed's goal is to ease the symptoms of coronavirus-plunged markets (we're in a bear market now) and to increase borrowing & spending.
• But that's exactly the problem: The market's downfall is just a symptom of the underlying illness, which is coronavirus. This is like the gov prescribing $1.5T worth of Advil for an illness that can only be cured through antivirals — treating a symptom (fever), not the cause (virus).
• Government spending and credit relief worked in '08 and '09 when the economy was actually sick from a credit crisis. This time seems to be different.

Pouring money into a party no one wants to attend... The fundamental issue is that people aren't spending money — the spread of COVID-19 is keeping the world at home, which is like economic paralysis. The stimulus pill isn't enough to get people to a party they think is dangerous... the only thing we think will actually help: containing the spread of coronavirus ASAP.