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I am also suspicious of the market disconnect from the broader economy, but I wonder what the Fed is up to. They have announced they are going to purchase corpo
by generalpass 6y ago
I am also suspicious of the market disconnect from the broader economy, but I wonder what the Fed is up to. They have announced they are going to purchase corporate debt, among many other things. In the last recession, they didn't report everything they put money into and it took an act of Congress to get a limited report of their otherwise unreported activities.
- _curious_ 6y agoTotally second this notion as there is no actual transparency into the market so no-one (save for maybe a select few insiders) actually know whatsup. Anyone who claims to know things (beyond an idea, theory, or speculation) about the equities market at large whether on HN or anywhere is outing themselves as full of it. This underlying opacity cannot be ignored for flies in the face of all the 'already priced in' arguments and 'rational actor' notions.
- Nasrudith 6y agoThe official rationale is bank stability and credit requirements needing a certain minimum amount of liquid cash by law and it is collateraled loans. (Although corporate bonds as collateral is a concerning escalation as either needing to take them as they were out of free treasury bonds or worse given needlessly.) Do you know what sort of things were otherwise unreported?
- samsonradu 6y agoI'm also a bit suspicious (apolitically) about the current administration's 'attention' to the stock market. It's uncommon to see presidents tweeting all-time highs every week and it wouldn't surprise me if in a few years from now we found out some shady propping up had been going on.