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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 a

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/

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/