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I honestly don't think this is going to work. Markets and investors are notoriously greedy and have a very short memory. This infusion will lift the market for
by tmpynews 7y ago
I honestly don't think this is going to work. Markets and investors are notoriously greedy and have a very short memory. This infusion will lift the market for a day (if at all) and institutions will make money and the next day the news cycle will take over and the selling will continue. We are in the early phases of negative news so not sure effective this will be.
- daxfohl 7y agoNo idea how you get downvoted. Market has already sold off the gains from the stimulus. Lasted a few minutes. Not very well spent money IMO.
- chasd00 7y agoit's not a stimulus it's loans to prevent a liquidity crisis and the credit markets from freezing up. It was the credit markets in 2008 that nearly killed the world economy. They dwarf the stock market.
- daxfohl 7y agoStill, given the market was like Meh, seems like nobody thought it was very useful. That said, yeah I see how you are right. Lots of businesses run month to month. When they run out of cash they go bankrupt. Once enough companies do so, the economy takes much longer to recover.
- 6gvONxR4sf7o 7y agoMaybe keeping the market from doing something much worse than "meh" was the point, and this was a success?
- dageshi 7y agoI doubt they expect it to "lift" the market in a meaningful way, they're just trying to smooth out some of the volatility. Having lived through the 2007/8 financial crash, yeah... market declines happen, not the end of the world when they do.