Some charts for perspective

The rate of the sell-off is fast, but not necessary the worst experience (yet). Immediate government intervention has the potential to blunt it.

The big difference here is not the panic, it’s that (1) Dodd-Frank eliminated market features that could have muted sell-off pressures, and (2) we have mostly electronic / algorithmic trading now. Once the bots decide to dump, they dump instantly. We really probably should get rid of circuit breakers in this era, because right now they are only thresholds to sell into. Perversely incentivizing panic.

Unclear whether these are all just furloughed employees in a time of uncertainty, but current policies are so destructive.

This is a major fear sign. People are paying the US Treasury to hold their money short term.

This doesn’t require an explanation:

This is what an institutional bank run looks like. Even if you moved all your money to cash before this hit, the dysfunction is still there. It’s affecting EVERYTHING:

This is going to be a sharp, but hopefully not long, economic contraction:

Only two weeks ago, we had the strongest economy in US history. That’s how fast draconian government policies can change everything.

Everything is broken in the financial world right now, even worse than the Great Financial Crisis:

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