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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

#301

Post by natch »

Can someone do an ELI5 on this?

Questions:

Is this the same as printing money?

Long or medium term, could this lead to inflation?

Where is this money injected into? “The economy” is too vague. Who specifically gets it or gets access to it? Why them and not others?

Ridiculous question but wondering what the rules are based on: Can a DAO get some of it?

Could the money (or liquidity) instead be targeted differently, either say as a one-shot stimulus given to individual taxpayers or as a short-term sample of UBI? or alternatively toward some beneficial area such as the sustainable energy sector?

Are insiders and old boys networks pocketing a windfall here?

Are they going to sabotage my long awaited opportunity to buy low?

Need a refresher on basic macroeconomics I guess.

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

#302

Post by jonahbenton »

asickness231 wrote: post #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.

This is debt, not equity.

The "budget" is equity.

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

#303

Post by jonahbenton »

cryptica wrote: post #267
lbotos wrote: post #201

Earlier quoted context omitted.

> the Fed is injecting new fiat money into the economy and it's going straight into the pockets of rich financial institutions which add no value whatsoever to the economy or society. Financial institutions control who gets levered money (loans). They provide a huge value to an economy and society in a fractional reserve banking system. You are upset about the Fed, when you should be upset about the government who co…

I don't agree that bank loans add any value to our modern fiat-based economy. It's possible that loans may have added economic value when money was based on a limited resource such as gold, but that economy was an entirely different beast from what we have today. Fiat is not simply a switch that one can flick off and on without anticipating negative flow-on effects; and yet that's exactly how governments have treated…

No. There are all kinds of discontinuities in money but this narrative is just an exhibition of ignorance.

Even when "money backed by gold" was a slightly less completely inaccurate fiction than it is now, what people "knew" to be money was many, many, many different things, depending on where they were and what they did for work.

Stories like this are like religious narratives, and "money backed by gold" is like the story of the angry god allegedly giving tablets to some dude. It is at BEST an allegory but yall go and read it like it happened.

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

#304

Post by undersuit »

malandrew wrote: post #286
undersuit wrote: post #237

Earlier quoted context omitted.

I downvoted because I disagree with the way they are arguing. The gp's(grandposter) comment uses the word companies. Which companies? Well we're talking about the US and health care so it has gotta be the health insurance companies? No, the bill Lamar disagreed with was to make employer's provide sick time to their employees. Also, pp(parentposter) is what I use. OP is reserved for poster of the content.

"Companies" in my comment refers to the 32.5 million businesses in the US since the proposal is that employers pay sick leave. I'm not sure why you're referring to health insurance companies. Yes they have employees that may need sick leave, but they are not the only ones.

I'm mentioned health insurance companies because I wasn't aware of the details of the bill that was rejected today by Lamar until after reading your comment when I educated myself by reading a more detailed source. While reading your comment I assumed you meant health insurance companies paying as that was the recent Trump kerfluffle from his speech last night and in addition if we're talking about US and health I'm putting money on our health insurance system being mentioned.

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

#305

Post by tandr »

6gvONxR4sf7o wrote: post #188
ipnon wrote: post #59

Earlier 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…

How short term are these loans?

Overnight, I think

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

#306

Post by AncientTree »

lend000 wrote: post #55

In times of panic, remember that in the worst likely scenario, this virus will slow consumer spending, increase demand for hospitals, stagnate productivity for about 12 months, and kill about 0.4% of the world's population (using Spanish flu infection patterns for reference, which infected ~25% of the world population). At that point, there will be sufficient herd immunity (and likely effective treatments or vaccines…

Agreed, we need to just push onwards and all will be back to normal in 12 months.

The facts remain that children, young adults, adults and even elderly without comorbidities will survive. Deaths are still restricted to those with existing health problems, particularly the elderly.

From an economic perspective, this is the perfect pandemic. We should maintain all schooling and social activities to spread the virus as far and rapidly as possible, to gain herd immunity as quickly as possible. The vulnerable can self-isolate.

The savings in pensions and long-term healthcare for the elderly, as well as a reduction in housing prices owing to the deceased estates, will promote an economic boom that may even - in the long term - offset the short terms costs we are facing right now.

You can imagine a situation where the USA has survived the virus and gained mass immunity, with 5% of its elderly population perishing along the way, giving the USA a long-term advantage due to lower payroll taxes, versus Europe who shut down early, have continual flareups due to lack of herd immunity, and continue with a heavy taxation burden due to elderly losses of only 0.5%.

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

#307

Post by 8bitsrule »

zaptheimpaler wrote: post #241
tw04 wrote: post #69

Earlier 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…

Slight tangent, but the excessive focus on tests is misguided. The tests give us more data but make little difference unless they are used to rapidly trace outbreaks and quarantine entire areas, which just has not happened. And with something this viral, its only a matter of time before it spreads everywhere. The focus needs to be on slowing the spread and treatment. The treatment is about supporting the body while i…

Whatever we -have- got, we use to identify and isolate, to flatten the curve. Test priority for healthcare workers.

"Containment is making sure all the cases are identified, controlled, and isolated. It’s what Singapore, Hong Kong, Japan or Taiwan are doing so well: They very quickly limit people coming in, identify the sick, immediately isolate them, use heavy protective gear to protect their health workers, track all their contacts, quarantine them…"

https://medium.com/@tomaspueyo/coronavirus-act-today-or-peop...

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

#308

Post by postalrat »

catacombs wrote: post #183

Amazing how this relief just materializes. Student loan debt in the United States, a financial catastrophe waiting to happen, is at about $1.5 trillion.

Apparently college students wait till after they pay off their debts to vote.

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

#309

Post by ceejayoz »

chrisco255 wrote: post #295
ceejayoz wrote: post #260

Earlier quoted context omitted.

> That means their infection rate is nearly 10x higher than the U.S. No, it probably doesn't. It probably reflects the fact that we're not finding folks, because we're not testing enough. Ohio's (Republican, incidentally) governor, for example, is stating that their five confirmed cases likely indicate 100,000 undetected in the community so far: https://twitter.com/GovMikeDeWine/status/1238177953126604801

Look, we can only debate about confirmed cases. You can speculate as to whether there are more or less undetected in one country or another but that's just going to be a bunch of hypothetical posturing leading nowhere.

A country 1/7 our size has done 25x the testing.

If you don't think that affects how our numbers net out, I'm not sure we can have a rational discussion beyond here.

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

#310

Post by fragmede »

aaomidi wrote: post #123
altec3 wrote: post #104

Earlier quoted context omitted.

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.

They're literally blocking COVID emergency budget bills getting passed in the Senate This is time to fall in line or be thrown out of your job.

At least one bill is being blocked because it doesn't have language prohibiting the money to be used for abortion. The money would be used to fight Covid-19 pandemic, but for some reason, it's critical that the money in no way go to abortion.

https://www.salon.com/2020/03/12/gop-delays-coronavirus-bill...

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