4 ms·
Well injecting this money will definitely not help if it is the case of people hoarding money. Also how come they cannot inject this money directly to citizens
by DethNinja 7y ago
Well injecting this money will definitely not help if it is the case of people hoarding money.
Also how come they cannot inject this money directly to citizens instead of large companies? Sure, inflation might be larger but what guarantees are there that injecting money to large companies won’t create inflation later down the road.
- jonahbenton 7y agoCitizens are not assets.
- Red_Leaves_Flyy 7y agoJeff bezos, and countless others before him, have consistently proven this false.
- aaronblohowiak 7y agoMonetary policy is harder to change in the current environment / would have “detrimental” effects for the trade war.
- Consultant32452 7y agoThe traditional way to inject money directly to citizens is the government hiring them to do work. Sometimes this is public works, sometimes this is hiring people who join the military. I have no idea what the govt job numbers look like, but I do know we're debt spending at incredible rates.
- Mikeb85 7y agoWhen interest rates are this low it doesn't make sense to not borrow money...
- raducu 7y agoEspecially if you buy high-yield bonds with those borrowed money knowing the rating agencies are a joke and the people issuing the bonds hold the central banks hostage, lest their default tanks the economy. Or use the money to buy back stocks, knowing that all your privileged buddies are doing the same, and if central banks would dare to raise interest rates you wouldn't be able to repay those loans, again holding the economy hostage with your scheme.
- stazz1 7y agoWow, "holding the economy hostage," i think you nailed it on the head.
- deleted 7y ago[deleted]
- nightski 7y agoBecause citizens generally are not interested in an overnight loan? This repo funding is repaid the next day.
- raducu 7y ago"overnight" -- yeah, right, as if you cannot make another, and another "overnight" loan in perpetuity if you are a big player.
- deleted 7y ago[deleted]