European stock exchanges also fall • TA 35 plunged by 4.33% • Leading Israeli indices lost about 30% over the past month

• Markets painted red in New York // Photo: IP

A red and turbulent trading day passed Monday in markets around the world and in Tel Aviv. After 3:00 pm, the TA 35 trade was automatically cut off by more than 8% plunging. Subsequent recovery was recorded when TA 35 closed down 4.33% and TA 125 fell 4.68%. These two indices are complementary A 30% decline over the past month.

It appears that the US central bank (Fed) measures announced this morning were the exact opposite of what was expected. The Fed dramatically lowered interest rates to around 0% and announced further steps to improve credit to the market, but as investors responded by increasing the supply that led to the landslide and halting trading In the futures.

After a few days before the stock exchanges soared when President Trump announced an emergency accompanying a $ 50 billion allocation to compensate the Corona casualties, it is perfectly clear what they expect. Credit is an essential condition of the market, and without it, it will simply collapse, but investors' expectations are for "living money", not credit. What was good in 2008, when the crisis was in the credit field, is that it is now a very large loss of public revenue, this public - employers and dealers, no longer wanting loans, but financial compensation.

The US Central Bank had to take another significant step in the credit field and allocated half a trillion dollars to the repo market - a short-term credit financing that was routinely closed between the banks, without the intervention of the central banks. This market became a bottleneck of the economy as credit levels soared. Double-digit, despite the zero interest rate environment, also announced in the Bank of Israel his intention to intervene in this market.

Late in the evening, Israel's clock, New York's leading indices lost more than 12%. The day before, the administration announced the closure of cafes, restaurants and conferences and added to the plight of the business world. Germany's Dex Index fell 5.3%; The Potsci London index lost 4% and the Kak 40 in Paris lost 5.75%. The US is expecting government assistance packages - the flow of funds into the market. Measures will need to be measured, unlike the Fed's drastic measure that has put investors under pressure and loss of control.