Do they print more money to do this or move around money that already exists?
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Fed will inject $1.5 TRILLION into financial markets
- Thread starter Deleted member 18944
- Start date
Problem with stimulus at this point is that it's just temporary relief to the market that keeps companies afloat for a while. It still wont help the economy much as people will stop spending because of the virus. That's why the stocks will probably keep falling for while.
I said it before I like Bernie's policies. I dislike the man.
He is a stubborn old coot and the epitome of perfection being the enemy of good.
Don't worry it will come back, we just have to believe in the power of the free market.
All praises to the market! The market is one, the market is all!
Cool, he should still speak about this at the debate because the issues are more important than your personal feelings.
it's basically them adding some zeroes in a computer. in this case also they're buying back bonds that are already held by financial institutions
There isn't much of a difference from the perspective of the fed.
There is no additional hard-cash going into circulation if that's what you're asking.
People won't stop spending because of the virus people will stop spending becaue the lost their jobs due to corporations reacting to the stock market drops.
It also demonstrates how thankless of a job being the head of the Fed is.
How is the leverage situation these days btw? I know there were calls to reduce ratios again, but I haven't followed it all that closely.
Imagine how much more this would do for the economy, let alone the well being of millions in this country.
Fuck Trump. It can never be said enough.
This is my big problem, the hypothetical liquidity problem has a specific cause but instead of providing guidance and governance that will calm the markets they are promising a 1.5T injection as if they've just accepted that things are going to get so much worse. Which is a pretty clear signal to move your investments, which compounds the hypothetical problem.
I don't really know, I know the corporate debt thing had been worrying some people. This is going to be way harder to tackle than a normal financial crisis or asset bubble induced recession because the gigantic nature of the slowdown is going to have all sorts of unpredictable side effects.
While this is technically true, it is also an understandable reaction when there are so many legitimate grievances that urgently require financing and then you read about a sum this large that's being given out so quickly. It's missguided but understandable.
Fed is basically the World Central Bank, it is lender of last resort to the world, Eurodollars everywhere. When banks abroad need dollars where do they go? They certainly can't go to their Centeral Banks when a crises hits, Fed does it all at this point. Global lender of last resort if you need dollars.
Lawmakers actually have nothing to do with it, fed is independent. Actually, scratch that, this probably has something to do with Trump.
Why do that when you can make jokes?
I mean, at least talk shit while disseminating appropriate information.
It's not just QE though, if that makes you feel better.
It's not money just being printed.
This is going to be wildly off-topic but I can't help it.
I just remember when the student loan debt threads crop up, and users with stocks and shit would constantly mock, veneer, or have outright hostility towards inidebted students for having high loans, 'not being responsible', or straw-manning people with debt being losers with meme basket weaving majors.
Yet here we are. The federal government somehow made up $1.5 trillion dollars to pump into stocks. Yet, nobody is question 'how are we going to pay for it?'
Burn this fucking system to the ground.
I just remember when the student loan debt threads crop up, and users with stocks and shit would constantly mock, veneer, or have outright hostility towards inidebted students for having high loans, 'not being responsible', or straw-manning people with debt being losers with meme basket weaving majors.
Yet here we are. The federal government somehow made up $1.5 trillion dollars to pump into stocks. Yet, nobody is question 'how are we going to pay for it?'
Burn this fucking system to the ground.
So you want to look back in a year and you'd be happy about a deeper recession than necessary and perfectly good companies (like hotels that would otherwise be full) go out of business due to a freak/black swan pandemic that will pass in 6months? Not due to business cycles or lack of demand etc? And you'd be happy about that?
Fuck You.
Regardless of whether people misunderstand what the Fed does or how it operates, I am preeeettty sure the larger problem people have with a move like this is just how fast a part of our government is willing to move in order to inject money into the markets, when there have been so many pressing issues over the years and decades that are still unresolved. It is frustrating as hell to see how fast the government moves on the market and nothing else. I think that's what upsets most of us.
I'm not saying that the Fed isn't within their mandate to make this move, I'm speaking more broadly about our government.
Yea, in many cases it's arguably worse. It'll probably end up creating an asset price bubble.
That's why I said that. And theory they're supposed to work separately, but....
Ah America. The country where socialism is a bad word unless it's got "Corporate" in front of it.