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If the Fed does this right the truly massive spending will be when businesses reopen and will place money directly into consumers' wallets to restart demand. O
by rfreytag 6y ago
If the Fed does this right the truly massive spending will be when businesses reopen and will place money directly into consumers' wallets to restart demand. Otherwise businesses will have nothing to be open for and layoffs will continue and the downward spiral will steepen.
It will be difficult to time the reduction of business subsidies as consumer demand gets supported. Get it wrong and business feel no price pressure as Fed money overpowers the market signal of resource misallocation while consumers lack the ability to pay 'old' prices or change the goods and services they desire.
- dividedbyzero 6y agoThe way this is heading, and given that that point is probably, realistically, quite far out – I guess there the very real possibility that a lot of people will find themselves homeless and/or greatly and permanently impoverished in the US. I fully agree with you, but even if they get that exactly right, lots of markets will probably have pretty much disappeared and lots of companies won't have a chance to make it. This feels like with all the pessimist views pretty much everyone might still underestimate the sheer size of the tsunami that is rolling in.