Federal Reserve pledges asset purchases with no limit to support markets
1–10 of 368 posts
Re: Federal Reserve pledges asset purchases with no limit to support markets
#2Hope this works
Re: Federal Reserve pledges asset purchases with no limit to support markets
#3Unlimited money cheat activated
Re: Federal Reserve pledges asset purchases with no limit to support markets
#4So the Federal Reserve is admitting to a Martingale strategy. Interestingly they’re the one entity on the planet that can pull it off at scale.
Re: Federal Reserve pledges asset purchases with no limit to support markets
#5Let's add another floor to the house of cards!
Re: Federal Reserve pledges asset purchases with no limit to support markets
#6Awful policy. The fed needed to hold off on this and the previous rate cut until Congress finally passed a useful bill. Powell had all the power to force Congress to act and he's blown it again.
Re: Federal Reserve pledges asset purchases with no limit to support markets
#7How does injecting money solve a problem that’s not caused by lack of money? This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities.
People aren’t going to stores, restaurants, and airlines because of SARS-CoV-2, not a lack of credit or money.
Printing money isn’t going to create customers for businesses effected by this pandemic.
Re: Federal Reserve pledges asset purchases with no limit to support markets
#8Is the fed going to buy up the BBB- debt from firms about to be downgraded?
Re: Federal Reserve pledges asset purchases with no limit to support markets
#9Keep in mind they're only able to buy US treasuries and mortgage backed securities. If Congress changes the rules to allow the Fed to purchase stocks, we'll be in for some very interesting times. It could be that we get an economy of zombie companies, or valuations soar beyond what we've come to expect as normal. In any case, this is unprecedented and in my opinion not the right move. They're sacrificing our future in order to inflate stock prices now so that the current president can get re-elected.
Re: Federal Reserve pledges asset purchases with no limit to support markets
#10How does injecting money solve a problem that’s not caused by lack of money? This market downturn isn’t a lack of liquidity, or a lack of money, or toxic assets like the mortgage backed securities. People aren’t going to stores, restaurants, and airlines because of SARS-CoV-2, not a lack of credit or money. Printing money isn’t going to create customers for businesses effected by this pandemic.
I guess the idea is to keep companies solvent so they'll still be there when the quarantine restrictions are lifted.