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Instead of pivoting to support the needs of Americans, we're shoveling money into massive corporations. Obviously it's not the American labourer who needs help.

Instead of pivoting to support the needs of Americans, we're shoveling money into massive corporations. Obviously it's not the American labourer who needs help. No, it's the shareholders and execs who run big companies. I love this country!

H8crilA 7y ago
When even the investment grade (look up LQD; was recently bailed out by the Fed) gets beaten up like that you know that your money isn't safe anywhere. Not in any money market fund, not in your bank, not in any CD, not as "cash" in your brokerage account. I bet that most financial institutions are technically insolvent right now (or at least were, a week or two ago). Also, there's only so much the Fed can do, it really is just a bank that deals exclusively with other large players by sending pieces of paper around (or these days - data packets). That's it. The rest is up to the Congress, the Fed has already printed the money for them, and will surely print more if needed. Ultimately it's a medical emergency, not a financial one. It's up to the doctors and people in charge to help fix this mess. The "money people" are merely dancing to the spectacle.
- samspenc 7y ago
  So I was piqued by your post, and actually looked it up. It looks like the bond / credit market in the US is just under $40 trillion [1], and the value of the US stock market is $37.69 trillion [2]. So they look pretty close? [1] https://en.wikipedia.org/wiki/Bond_market https://en.wikipedia.org/wiki/Bond_market [2] https://siblisresearch.com/data/us-stock-market-value/ https://siblisresearch.com/data/us-stock-market-value/
  - H8crilA 7y ago
    Sign of the times (of overpriced stocks). It is much larger most of the time for most countries. Also, credit is not all securitized into bonds. But yeah right now the US stock market is ridiculously large, you're right. https://www.google.com/amp/s/www.fool.com/amp/knowledge-center/5-bond-market-facts-you-need-to-know.aspx https://www.google.com/amp/s/www.fool.com/amp/knowledge-cent... https://gfmasset.com/2015/02/size-stock-market-vs-bond-market/ https://gfmasset.com/2015/02/size-stock-market-vs-bond-marke... https://www.sifma.org/resources/research/fact-book/ https://www.sifma.org/resources/research/fact-book/
kevin_thibedeau 7y ago
Too bad we dumped trillions on 20 years of perpetual war.
- deleted 7y ago
  [deleted]
ccktlmazeltov 7y ago
This is truly insane, the most impacted people are the ones who are living paycheck to paycheck, and leading small businesses. Yet, the only thing the government cares about is SP500. This truly shows how corrupt the establishment is.
- H8crilA 7y ago
  This is a common misconception. The Fed doesn't care about the S&P500 (the president does, though, judging by his tweets ...). You may be projecting because you care about it. Fed cares about the credit market, not the stock market. It's amazing how many people don't even know that the credit market is much bigger than the stock market. Since these days everything is an ETF you can look up $LQD (investment grade corporate bonds) and $HYG (low grade/junk corporate bonds) to see "what's really going on". You can also look up spreads for each rating grade on FRED.

H8crilA 7y ago

When even the investment grade (look up LQD; was recently bailed out by the Fed) gets beaten up like that you know that your money isn't safe anywhere. Not in any money market fund, not in your bank, not in any CD, not as "cash" in your brokerage account. I bet that most financial institutions are technically insolvent right now (or at least were, a week or two ago). Also, there's only so much the Fed can do, it really is just a bank that deals exclusively with other large players by sending pieces of paper around (or these days - data packets). That's it. The rest is up to the Congress, the Fed has already printed the money for them, and will surely print more if needed. Ultimately it's a medical emergency, not a financial one. It's up to the doctors and people in charge to help fix this mess. The "money people" are merely dancing to the spectacle.

samspenc 7y ago
So I was piqued by your post, and actually looked it up. It looks like the bond / credit market in the US is just under $40 trillion [1], and the value of the US stock market is $37.69 trillion [2]. So they look pretty close? [1] https://en.wikipedia.org/wiki/Bond_market https://en.wikipedia.org/wiki/Bond_market [2] https://siblisresearch.com/data/us-stock-market-value/ https://siblisresearch.com/data/us-stock-market-value/
- H8crilA 7y ago
  Sign of the times (of overpriced stocks). It is much larger most of the time for most countries. Also, credit is not all securitized into bonds. But yeah right now the US stock market is ridiculously large, you're right. https://www.google.com/amp/s/www.fool.com/amp/knowledge-center/5-bond-market-facts-you-need-to-know.aspx https://www.google.com/amp/s/www.fool.com/amp/knowledge-cent... https://gfmasset.com/2015/02/size-stock-market-vs-bond-market/ https://gfmasset.com/2015/02/size-stock-market-vs-bond-marke... https://www.sifma.org/resources/research/fact-book/ https://www.sifma.org/resources/research/fact-book/

kevin_thibedeau 7y ago

Too bad we dumped trillions on 20 years of perpetual war.

deleted 7y ago
[deleted]

ccktlmazeltov 7y ago

This is truly insane, the most impacted people are the ones who are living paycheck to paycheck, and leading small businesses. Yet, the only thing the government cares about is SP500. This truly shows how corrupt the establishment is.

H8crilA 7y ago
This is a common misconception. The Fed doesn't care about the S&P500 (the president does, though, judging by his tweets ...). You may be projecting because you care about it. Fed cares about the credit market, not the stock market. It's amazing how many people don't even know that the credit market is much bigger than the stock market. Since these days everything is an ETF you can look up $LQD (investment grade corporate bonds) and $HYG (low grade/junk corporate bonds) to see "what's really going on". You can also look up spreads for each rating grade on FRED.