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Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

cnbc.com

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Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#21

Post by dev-ns8 »

jaywalk wrote: post #20
dev-ns8 wrote: post #17

Speculation on my part as I still don’t fully grok repo markets and only have a vague sense of how the treasuries market impacts equities but I’ll continue. I see some people saying this should alleviate some of the losses incurred by the recent market crash. I however, don’t see how that is the case. To me this seems like a move from the fed to make sure we don’t enter into a liquidity crisis which doesn’t necessari…

Like you said, this is to make sure we don't enter a liquidity crisis. The market will stay down for a while, but this will allow businesses to weather the storm instead of going under.

I agree. I think I'll be adding to my shorts here. I'd still be very interested in hearing a real experts opinion on what this QE move does to inflation.

Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#22

Post by bigbob2 »

rankam wrote: post #16
glofish wrote: post #2

If you print $100 in your basement it is counterfeiting, punishable with 25 years in prison. If you print 1 trillion as a banker it is called" "a bold initiative to calm market tumult".

Counterfeiting is creating something that is fake, but presenting as real. Counterfeiting has nothing to do with quantitative easing and you shouldn't conflate them.

What is the justification for considering one to be fake and the other real?

Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#24

Post by indigochill »

lisper wrote: post #19
aliswe wrote: post #10

Not saying that fiat money is necessarily a good idea, and not clamping down on gold standard currency, or anything, but the article doesn't say that the money would be printed. If I'm not mistaken. If what the mostly conspiratpry documentaries say is true, then the Fed lends "the state" money (at interest) which is then needed to be paid back. That would mean that the Fed probably has money reserves on its own.

I think you may have some basic misunderstandings of how money works in today's world. All money is debt, which is to say, it's a ledger entry that gives the holder a claim on future productivity. Whether that ledger entry is purely electronic or rendered onto a physical artifact (a coin or a bank note) is irrelevant. At the end of the day it's all just bookkeeping. The national debt is the money supply. The key to n…

>the actual value of goods and services in the economy is shrinking

On this point, are you referring to goods that already exist but are in less demand (thus less value)? Or that fewer goods are being produced, thus the total value of goods (supposing we assign some arbitrary value per good) is less?

Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#25

Post by RobRivera »

glofish wrote: post #2

If you print $100 in your basement it is counterfeiting, punishable with 25 years in prison. If you print 1 trillion as a banker it is called" "a bold initiative to calm market tumult".

This is a misrepresentation of the complexities of financial services, monetary, and fiscal policy.

Say what you will about the carelessness of risk-taking, shortterm thinking of the banks, but please don't misrepresent reality

Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#26

Post by virmundi »

bigbob2 wrote: post #22
rankam wrote: post #16

Earlier quoted context omitted.

Counterfeiting is creating something that is fake, but presenting as real. Counterfeiting has nothing to do with quantitative easing and you shouldn't conflate them.

What is the justification for considering one to be fake and the other real?

The government is considered the sole producer of currency. As such they are the hallmark of valid money. Anyone in the basement is creating a knock off.

Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets

#30

Post by taiwanboy »

newyankee wrote: post #27

What can a retail investor really do ? Is this even a free market. Cannot even do passive investing safely enough.

This is to help an otherwise very healthy US economy (low unemployment rate, solid gdp growth, income increases) from being taken down by an one time external, expiring event and panic that flows from it.

What is the point not supporting crucial companies in the stock market? Are you really better off if target or chevron or Hilton goes under? And tons of people have no jobs and there no access to staples?

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