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Yes, and there are even commenters in this thread whom openly admit the fed 'backstop' is a factor in their decision to play equities. This market is highly ma
by _curious_ 6y ago
Yes, and there are even commenters in this thread whom openly admit the fed 'backstop' is a factor in their decision to play equities.
This market is highly manipulated and disconnected from reality on many levels - that's overtly obvious and intentional maneuvering via fed and pres. Only this pump and dump scheme isn't perpetuated by some shady OTC penny stock hype stunt.
When the equity bubble does burst (not if, but when) it will be very painful and unfortunately not just for those who are directly exposed but the collateral damage of all the free money will adversely affect those who are not day trading on the golf course, instead sold their clubs just to put food on the plate.
- MiroF 6y ago> This market is highly manipulated and disconnected from reality on many levels I feel like this presumes some "baseline" market that never really existed. The Fed has a dual mandate - they will and should engage in whatever sort of outlandish monetary policy is necessary to achieve that mandate. > When the equity bubble does burst (not if, but when) Absurd that so many people think they can make predictions like these.
- xoxoy 6y agoThe dual mandate is full employment and price stability. Neither has to do with the stock market.
- MiroF 6y agoBut the market reacts to action by the fed, for obvious reasons. That doesn't mean the market is "manipulated" any more than finding a cure for coronavirus would be "manipulating" the market when it jumps in response to the news.