How much more effective would it be to put this purchasing power toward simply combating the virus? Probably a lot...
Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
31–40 of 367 posts
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#32What 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?
Unfortunately the US economy isn't very healthy - it's over-leveraged on debt and has been artificially propped up by cash injections into the market. In actuality this recession may be caused by corvid-19 but it was ready to go at the first serious economic hiccup.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#33That smells a lot like panic move and I am not sure it will move the needle much. Economy will severly shrink no matter what Fed do.
It's not a panic move at all.
It's a required reassurance to investors and companies to prevent actual panic moves (i.e. complete market crash).
I agree that the economy will shrink nonetheless, but there's a difference between a small recession and a full blown depression.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#34What can a retail investor really do ? Is this even a free market. Cannot even do passive investing safely enough.
For better or worse there has never been a time in recorded history with a “free market”. Money is simply a “social technology”(1). The goal of money ultimately is to promote stability and freedom (1).
In this case, the Fed is using Quantitative Easing (QE) to promote stability within the market. This should have a network affect throughout global markets. Hopefully this will stop the bleeding.
Regardless, buy buy buy.
(1) https://www.google.com/amp/s/www.nytimes.com/2014/04/13/book...
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#35"inject 1.5t" by that do they mean a 1.5t panic bailout for wall street? how can we find 1.5t in the budget but no money for universal healthcare, student loan forgiveness, ubi etc.
The markets wouldn't be so important if there were a safety net.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#36How much more effective would it be to put this purchasing power toward simply combating the virus? Probably a lot...
The Fed doesn't have that power though, nor should they. That's up to congress to decide
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#37What 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?
I've seen this argument by investors, but what's going to change?
The virus isn't going to magically get better overnight one day. It doesn't expire. This is either going to be EXTREMELY bad in the short run or very bad over a long period of time. Either way, the economy is either going to be hurt very badly all at once or slowly deteriorate as countries have to stay quarantined. (Something that the US may have to do soon.)
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#38Yet another bailout for wall street. Why couldn't these investors stop buying starbucks every day and save up like the rest of us?
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#39"inject 1.5t" by that do they mean a 1.5t panic bailout for wall street? how can we find 1.5t in the budget but no money for universal healthcare, student loan forgiveness, ubi etc. The markets wouldn't be so important if there were a safety net.
Not all dollars are created equally
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#40How much more effective would it be to put this purchasing power toward simply combating the virus? Probably a lot...
I wish the Fed would give the $ back to the American people and let them decide what to do with it. The growth would be slower but it would be more genuine. This would help those most affected and would help to weed out bad actors. But I am not the Chairman...