This would be hilarious if it wasn't an actual real present-day dystopian nightmare that we were dealing with.
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
Fed will inject $1.5 TRILLION into financial markets
- Thread starter Deleted member 18944
- Start date
Apparently some people on CNBC were saying that this exact scenario may happen. Instead of helicoptering money to the market, the government might helicopter money directly to people instead.
Not lending out too much money is the responsible thing for them to do in this situation. Unlike the 2008 crash, the banks didn't create this mess. They're handling it as they should.
It's not. Not the stock market part, at least.
Yeah except they won't because Republicans control the Senate and White House
Gonna make it look real good for.... I dunno a few weeks tops??
I was referring to this administration and the general self dealing of the rich.
Anyone arguing against full-on, no questions asked M4A in the US deserves all the ridicule in the world.
Stimulus checks are a much better option than touching payroll taxes.
Short-term loans to banks and buying their treasuries to sell back in a few months. Basically just injecting liquidity into the financial sector so that life can continue on as normal (or as normal as possible) for the rest of us on the ground.
So if I'm understanding the process correctly, the Fed is essentially lending money to banks and the bonds lent to them by the government are used as collateral. It will then be paid back. So the Fed is essentially buying the government's own debt for a time?
Never, ever want to hear again how we can't afford solving the student debt crisis or healthcare. Ever.
not really collateral. they're just straight up buying the assets. the vast majority of the country's debt is owned by us whether it's through US investors, the fed, the government, etc.
It's not the same thing as money spent on healthcare or forgiving student loan debt, no. It is an example of how vast economies like the US can leverage monetary policy towards short or long-term investment that will help the economy. Eliminating student debt is essentially just massive economic stimulus for the populace with loans.
You can read the thread to see why you're still going to need to hear about that.
Not saying we shouldn't do it. But this is not the same thing.
Did you miss my next post where I said exactly that? Lol, I know what the fucking Fed does, I'm well aware how Fed market injections work, and I'm well aware that they have no control over things like student debt or healthcare.
I'm not sure why you think this situation has anything to do with our ability to pay for those programs then.
Like I already said, it's an example of leveraging monetary policy to stabilize or stimulate the economy. Handwringing about 'our ability to pay' has always been bullshit.
It hasn't though, that money still has to come from somewhere. Figuring out how to pay for those programs is the biggest hurdle to getting them passed. The fed can't just print the money to pay for M4A every year without causing hyperinflation.
Good thing I never said that the fed should just print money then? Wtf are you even talking about?
The hurdles to getting them passed are largely ideological, not monetary. All of the proposals contain tax increases and other forms of revenue generation.
I took that as what you meant because otherwise I legitimately don't understand the connection to what the fed is doing here.
I know the proposals contain tax increases. I don't know what that has to do with an independent central bank adding more liquidity to financial markets.
You made an assumption based on nothing. I already said there isn't a direct connection between the Fed stabilizing the economy with short term loans to aid liquidity in the market and these policies, outside of a broad level example of the state leveraging monetary policy to provide economic stability. You then jumped on my post as if I said there was a direct connection between the Fed and these policies...which I clearly didn't.
You can keep quoting me with assumptions based on nothing if you want but it's not going to get us anywhere.
You posted "Never, ever want to hear again how we can't afford solving the student debt crisis or healthcare. Ever." in a thread about the fed taking this action. If you didn't intend to communicate a connection, why did you post that in this thread?
Because people have been discussing those very subjects for like 11 pages in this thread...
...mostly by people who didn't understand how the fed works or what this action actually did. Which is why I replied to you in the first place. There's been a ton of ignorance in here today.
Right, I was getting irritated by how much back and forth there was over these issues. I find the 'we can't afford it' arguments very, very stupid. It's a problem of priorities, not funds.
Also this action by the Fed isn't enough, we need actual stimulus given to people or else the economy is going to suffer. Not the Fed's role obviously but things are going to get real ugly without the paid sick leave and other forms of stimulus given by the state.
I mostly agree, though in M4A's case I think it's probably a mix of both. I just think continuing to talk about that stuff in this thread probably isn't helping people wrap their heads around monetary vs. fiscal policy. As you said, those programs really are unrelated to the fed.
Fair enough, there are plenty of misconceptions about what the Fed does as is.
