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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

#81

Post by scrumbledober »

lbotos wrote: post #76
Frondo wrote: post #65

Earlier quoted context omitted.

The Fed does not set the budget, and is independent of the three branches of government, that's true, but... > The Federal Reserve System is an independent government institution that has private aspects. The System is not a private organization and does not operate for the purpose of making a profit. From https://en.wikipedia.org/wiki/Structure_of_the_Federal_Reser...

Uh what? Fed = Monetary policy == Make sure money can flow "appropriately" Government = Fiscal Policy == "Who gets money" I don't know how your quote is relevant at all.

the part where it says the fed is a government institution...

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

#82

Post by vkou »

rcar wrote: post #50
strstr wrote: post #41

Earlier quoted context omitted.

Often this type of action is not the government spending that level of money with nothing in return. Generally it is buying an asset it intends to sell later (often at a profit).

For sure. People still get up in arms about the 2008 bank bailout without realizing that it ended up resulting in a $121B profit to the government: https://projects.propublica.org/bailout/

When taking inflation and the time value of money into account, it was a loss.

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

#84

Post by dhosek »

munk-a wrote: post #61
vijaybritto wrote: post #18

Nobody is asking anything about funds now. But so many seems to be angry about healthcare for all. A universal health care can survive this pandemic and also others. This is unbelievable

But don't worry! Joe Biden has guaranteed he'd veto such an act even if it got through the house and senate.

Not according to his latest statement.

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

#85

Post by ryandvm »

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.

Because the people that pay for campaigns already have healthcare. The more money you allow into politics, the more politics is about money.

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

#86

Post by munk-a »

bwooceli wrote: post #78
munk-a wrote: post #61

Earlier quoted context omitted.

But don't worry! Joe Biden has guaranteed he'd veto such an act even if it got through the house and senate.

this is a very disingenuous read of that interview.

Just to note, the full interview transcript is here[1] and the reply to

> It comes to your desk. Do you veto it?

he replied with

> I would veto anything that delays providing the security and the certainty of healthcare being available now. If they got that through in by some miracle or there`s an epiphany that occurred and some miracle occurred that said, OK, it`s passed. Then you got to look at the cost.

Unlike on hackernews politician's statements shouldn't be read charitably and in the best light possible because not saying "no" is a clear signal to a lot of the folks listening to the interview. I think reading it in the light of "yes" is fair, but he at least waffled a lot more than was warranted.

1. http://www.msnbc.com/transcripts/the-last-word/2020-03-09

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

#87

Post by taiwanboy »

munk-a wrote: post #77
taiwanboy wrote: post #70

Earlier quoted context omitted.

Folks. Companies listed on the stock market hire average folks who need the money to provide for their spouses and kids. Companies that provide staples to you like food and gas and transportation and medical supplies. These are the companies you are actively shorting. Think about that. This isn’t the same as 2008.

Company's welfare is somewhat connected to their stock price, but it's a really weak relation. The stock market is mostly a gambling simulator that runs beside the economy as it's own little micro-economy - this doesn't make it worthless but it does make this sort of a statement ring really hollow.

These days companies are VERY tied to quarterly EPS guidance and stock prices. Layoffs and adjustments closely follows that as well.

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

#88

Post by hastes »

Really love how people are on Twitter and other outlets blaming this action on Trump already when it literally has absolutely nothing to do with him and he has opposed almost all action the Fed has taken so far. Social media and the hive mind read the title and not the information mentality is really getting tiring for me..

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

#89

Post by oarabbus_ »

JustSomeNobody wrote: post #80

Wait for it. Next week stock buybacks will be all over the news. I bet AT&T will be leading the charge.

Next week the coronavirus cases and death tolls will be 2-3x what they are today. Little chance of a V-shaped recovery. We are a long way from the bottom.

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

#90

Post by whateveracct »

munk-a wrote: post #77
taiwanboy wrote: post #70

Earlier quoted context omitted.

Folks. Companies listed on the stock market hire average folks who need the money to provide for their spouses and kids. Companies that provide staples to you like food and gas and transportation and medical supplies. These are the companies you are actively shorting. Think about that. This isn’t the same as 2008.

Company's welfare is somewhat connected to their stock price, but it's a really weak relation. The stock market is mostly a gambling simulator that runs beside the economy as it's own little micro-economy - this doesn't make it worthless but it does make this sort of a statement ring really hollow.

It's like fantasy basketball vs real basketball
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