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The Fed made it very clear that they will put as much money as needed to prop the stock market. They are even buying ETFs, which is one step short from buying s
by coliveira 6y ago
The Fed made it very clear that they will put as much money as needed to prop the stock market. They are even buying ETFs, which is one step short from buying stocks directly in the open market. That's why people holding stock feels confident while the economy is burning.
- anonu 6y agoThey are buying fixed income ETFs which is basically corporate debt. This is very very different than buying equity. Certainly buying corporate debt is a bit stretching the Fed mandate but going to equities would arguably be illegal.
- coliveira 6y agoAs I said, they're just one step short of buying equities. They're throwing money at investment companies and buying corporate debt, this can have no other result than inflating the stock market.