4 ms·
Example of the catch of the FED buying financial assets, it increases their value: Before 1 Google stock was worth 1 Tesla car. After 1 Google stock is worth 2
by tumetab1 6y ago
Example of the catch of the FED buying financial assets, it increases their value:
Before 1 Google stock was worth 1 Tesla car. After 1 Google stock is worth 2 Tesla cars.
The purchasing power of those who hold financial assets is increasing while for those who don't own financial assets stays the same.