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I kind of think that the Fed will not let this go too far in the middle of an election year, particularly given Trump. But yeah, the market was clearly overexte
by cm2187 7y ago
I kind of think that the Fed will not let this go too far in the middle of an election year, particularly given Trump. But yeah, the market was clearly overextended, and stock price growth was accelerating.
- hn_throwaway_99 7y agoThe multi-trillion dollar question, though, is whether the Fed actually has much ability to help much with the current situation. Flooding the economy with cash probably isn't going to make people want to book a cruise anytime soon.
- jurassic 7y agoIt's really not up to the Fed; they had an emergency rate cut last week and it was just a minor blip on the overall downward slide. This is a demand-driven crisis, not a liquidity crisis or credit crunch like 2008. Monetary policy isn't going to get you very far this time.
- cm2187 7y agoNo the Fed can push asset prices through QE