How can Wall Street be so healthy when Main Street isn’t?
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Re: How can Wall Street be so healthy when Main Street isn’t?
#2Personal take: A subset of "Main Street" is unhealthy not the entire country. Most things are not closed anymore and the stock market is propped up by tech stocks that saw little slow down due to COVID.
It's weird situation because I'd be willing to bet that the people who own stocks are simply not the one that have been laid off.
Re: How can Wall Street be so healthy when Main Street isn’t?
#3Easy Congress put on bandannas and robbed the tax payers of about $18,000 each.
Congress then turned around and gave taxpayers $1,200 each, of their own money, that total amount can be doubled that to account for the temporary unemployment benefits increase. The rest of the taxpayer money went to the FED so they will guarantee the prices of shit stock...the market can't lower because as many rich CEOs and investors cash out their shit stock the FED is there to buy at these artificial prices.
Its not healthy obviously, its just another in a long line of scams on taxpayers who paid for the golden parachutes and will be left holding the bag. There is about $4.2T the FED has to buy stock at artificial prices so it will be sometime before this bubble pops.
Re: How can Wall Street be so healthy when Main Street isn’t?
#4Personal take: A subset of "Main Street" is unhealthy not the entire country. Most things are not closed anymore and the stock market is propped up by tech stocks that saw little slow down due to COVID. It's weird situation because I'd be willing to bet that the people who own stocks are simply not the one that have been laid off.
And if all businesses are hit by hard economic times, should all stocks go down? Wouldn't that mean that people are selling stocks and not buying other stocks?
I don't think modern investors just don't-buy-stocks unless they need the money for something else. They invest in something. And if everything is doing poorly, that means the market doesn't change.
Re: How can Wall Street be so healthy when Main Street isn’t?
#5Where else are you gonna put your money? Stable governments are paying ~0 or negative interest.
I'm actually asking, right now I'm just paying off debt but would be curious what people think. If I didn't have the debt I'd probably buy equities (index fund, etc.) like everoyne else.
Re: How can Wall Street be so healthy when Main Street isn’t?
#6So many ways to approach that question. One might be, look at the shape of a graph of S&P 500 over the last 4 decades or so, vs the shape of wages adjusted for inflation.
At this point, assuming one can tell you much about the other requires justification.
Re: How can Wall Street be so healthy when Main Street isn’t?
#7Personal take: A subset of "Main Street" is unhealthy not the entire country. Most things are not closed anymore and the stock market is propped up by tech stocks that saw little slow down due to COVID. It's weird situation because I'd be willing to bet that the people who own stocks are simply not the one that have been laid off.
And if all businesses are hit by hard economic times, should all stocks go down? Wouldn't that mean that people are selling stocks and not buying other stocks? I don't think modern investors just don't-buy-stocks unless they need the money for something else. They invest in something . And if everything is doing poorly, that means the market doesn't change.
They either keep the money as cash, so that they can buy stocks when the market gets even lower, or they buy alternatives like gold.
Re: How can Wall Street be so healthy when Main Street isn’t?
#8[deleted]
Re: How can Wall Street be so healthy when Main Street isn’t?
#9Federal Reserve balance sheet:
https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
The simplified version is that when the Fed wants to inject money/liquidity it buys assets (exchanging new "money" for the asset) in the open market. These operations are done within the financial system. The idea is that banks next loan the money to non-financial businesses which in turn stimulates economic activity. But that last part isn't happening, the injected liquidity is remaining within the financial system where it is being used to bid up the prices of existing financial assets rather than being used to create new ones.
Re: How can Wall Street be so healthy when Main Street isn’t?
#10Fed invents money. It has to go somewhere. It goes into stocks. Someday it stops and so do stocks. Your grandchildren eventually pay it off somehow.