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Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
151–160 of 367 posts
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#152"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.
While good long term health is nice, no one wants to be on the receiving end of mass hysteria when individuals find out they can't withdraw their money.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#153Earlier quoted context omitted.
The Fed isn't printing 1.5 trillion greenbacks and handing out fat sacks on Wall St. They are providing short-term loans to increase the amount of money in circulation (liquidity). The intent is to increase the total amount of trading occurring so that the market can return to equilibrium sooner than later. The Fed wants to prevent firms from not making trades solely for lack of liquidity in the market. edit: "from m…
>> They are providing short-term loans If I want to give my friend a loan, I need to earn that money first by working hard. FED does not conduct any profitable activity that would earn them any money, they DO PRINT that money from thin air.
If you want to compare apple to oranges, then you would need to be able to print money from thin air in order to be consistent in your metaphor where you are the Federal Reserve and your friend is a cohort of "financial institutions providing high-quality collateral" in exchange.
Personal finance and monetary policy are not similar even though they both involve money. Money in your bank account is not the same as money in the Federal Reserve or even money printed at a mint.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#154[deleted]
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#155Earlier quoted context omitted.
>But if there were ever a time for us not to be partisan and tribal, it's now. You say that like both parties are trying to deny testing and are refusing to provide the social safety net for workers to stay home when they're sick. This is very much not a "both sides" discussion. This is: the GOP needs to stop trying to pretend like nothing is wrong and actually DO SOMETHING to prevent this from becoming an even bigge…
I think what gdubs was trying to get across is that sure, there are problems, people to blame, etc. but now is not the time. We have to get our act together and handle the situation. We can't have petty fighting betweeen parties. Now is the time to unite and act. We can fight, argue and point fingers once this is all behind us.
Now is the time for leadership. If leadership is lacking, we don't star singing Kumbaya and offering platitudes about "unity" in the face of malpractice, we loudly and firmly demand better leadership.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#156As the joke goes, a trillion here a trillion there and pretty soon you're talking about some real money! But in seriousness, the next week is a critical time in the world. I remember sitting in an airport when news of Lehman Brothers collapse was flashing on the TV screens. I'm reminded of that time. We learned later about how Hank Paulson got down on one knee and begged Nancy Pelosi to go along with is plan to save…
>But if there were ever a time for us not to be partisan and tribal, it's now. You say that like both parties are trying to deny testing and are refusing to provide the social safety net for workers to stay home when they're sick. This is very much not a "both sides" discussion. This is: the GOP needs to stop trying to pretend like nothing is wrong and actually DO SOMETHING to prevent this from becoming an even bigge…
I think you allowed yourself to become overwhelmed with emotions. Both groups, and that is despite news that some of their own are infected, are playing games.
It is silly to pretend it is just GOP.
edit: spelling
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#157Guys this is low-level plumbing work to keep the market moving. If they DIDNT do this, then people wouldn't be able to make trades, and that would cause trust to be lost in the system, and that would be really bad. Someone correct me if I'm wrong, but I believe this money is for what are effectively loans that will get paid back in a very short amount of time.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#158"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.
Just a reminder, "bailout" is loans, not gifts. US government got it's 2008 bailout money back with interest.
If we're getting in to the weeds on the ebb and flow of money to and from the government, universal healthcare saves the government money rather than costing it money.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#159"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.
these are overnight loans that are intended to allow normal overnight financing to continue even if the markets siezed up because everybody is so panicked nobody wants to let loose of their cash.
Yes, this means the Fed is very very worried about the state of the market, it means they think it's at risk of stopping normal operation. Maybe not ongoing crisis but they're worried about crisis in the near future.
The fact that the stock market circuit breaker has been hit a grand total of once before, back when it used a different set of rules and was easier to hit, and then we've hit it twice in a week is pretty fucking bad news, if that sets the backstory for you at all.
Re: Fed to inject $1.5T to prevent ‘unusual disruptions’ in markets
#160"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.
>inject 1.5t" by that do they mean a 1.5t panic bailout for wall street?
Banking clients are demanding more liquid assets (ie cash) than banks have access to, so they are swapping treasuries for cash from the Fed.
It's not like this is banking profits; would you rather the bank fail and you or your business or your employer lose everything you had there? Because that is also an option.