Earlier quoted context omitted.
New Fed programs have been stood up in the last month that directly buy corporate debt.
That’s a Fed program. Fed != Treasury. What does this have to do with the Treasury?
I think he mis-spoke by typing the Treasury.
Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
61–70 of 153 posts
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#62Earlier quoted context omitted.
https://brrr.money
Is the song that plays on this website commonly known? The only other time I've heard it is in the video that the New Zealand mass shooter recorded, and it makes me uncomfortable that it's the same song if it is indeed not common.
Not super well-known, but it has been used in a few dozen Youtube videos (mostly based on Japanese manga or Pokemon).
I believe the song - artist is: Gas Gas Gas - Manuel
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#63Earlier quoted context omitted.
GDP is per year. Analogous to a person making $100k/yr with a $110k mortgage. Edit: Although perhaps not that analogous because is this even technically "debt"?
The analogy has always been strained, since national debt just doesn’t work like personal debt. Also, when you can borrow at sub-inflation rates, there’s rarely an incentive to stop.
It's the Bank of Japan who decide the borrowing rates, so, not problem in that regard.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#64One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…
However this saves us from inflation, since the money circulates among the wealthy and corporations rather than among the common person.
it doesn't save us from inflation, it just changes the path it takes. Rich people buy stuff too, which employee us peasants. But by the time us peasants see the money, its already inflated so we don't get the benefits.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#65One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…
You're not giving the whole picture if you don't mention that IBM's market cap has seen very significant decline over that time period. IBM has been producing insane cash-flow over this period and their strategy was to pay out dividends/buybacks rather than to invest in new markets Is IBM even getting bailout money? What does IBM have to do with the bailouts?
IBM may or may not be a good example, but I think the overall critique holds here.
Stock buy backs weren't a thing until a SEC rule change in the 80's, this is a relatively new phenomenon and not intrinsic to a functioning market.
Home Depot could have given their employees massive raises with the amount they've spent on buybacks (15 billion in buybacks in February 2019 alone). With ~400,000 employees, that could be a $37,500 bonus to every employee for the year...
The scale of that is breathtaking - and instead of spreading the love around, it goes to the shareholders and C level alone.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#66Why are the feds able to inject so much money into the system these days without much push back? While during the 2008 Crisis Hank Paulson had such difficulty with getting 700 billion injected?
> Why are the feds able to inject so much money into the system these days without much push back? While during the 2008 Crisis Hank Paulson had such difficulty with getting 700 billion injected?
Hank Paulson was the Secretary of the Treasury. Both the Fed and the Treasury have the power to create money, but in different ways (and the side-effects of each method are different).
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#67Why are the feds able to inject so much money into the system these days without much push back? While during the 2008 Crisis Hank Paulson had such difficulty with getting 700 billion injected?
It didn't crash the first time. Let's do it again /s
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#68Earlier quoted context omitted.
https://brrr.money
Is the song that plays on this website commonly known? The only other time I've heard it is in the video that the New Zealand mass shooter recorded, and it makes me uncomfortable that it's the same song if it is indeed not common.
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#69This is one of two last-resorts mechanisms by which the U.S. will maintain its hegemony. It may suck, but it is way better than the alternative.
Why is printing money a bad thing at this point in time? I see two strong reasons that printing money is the right move: 1) Wealth inequality is high relative to recent history. Printing money is a very effective way to even some of that out. Possibly the only form of 'wealth tax' that can actually be executed successfully. 2) The US debt / GDP fraction is still relatively low compared to many other countries.
> The US debt / GDP fraction is still relatively low compared to many other countries.
Is the relative ratio a good way to evaluate it? Does it mean anything to talk about the debt:GDP ratio in isolation?
Re: Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record
#70One interesting fact I learned the other day: IBM did 140 billion in stock buy backs in the last decade. They have a 100 Billion dollar market cap. I think that is a bit of what we have going on right now. A system propped up by injected cash, which works for now because everyone plays along. Most of this injected money goes into the pockets of the rich, who are the ones holding the assets that the FED is bailing out…
> IBM did 140 billion in stock buy backs in the last decade. And? What is the alternative, and is it any better? > IBM has effectively been dead money for the last decade. They’re up 20%, including dividends, versus 315% for the tech index (XLK). IBM currently has a market cap of ~$100 billion, so when people hear they spent $45 billion on buybacks while their share price went down 38%, people get angry. I get it, it…
If IBM invested the money into actual research and product development - that would mean the money still enters the economy via the workers doing the research and development. I feel like this point isn't emphasised well enough in the quote above - and I wonder if the "anti buyback crowd" would have anything to say against that.