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The Fed pushed a ton of money in a very inefficient manner. If congress approved another round of direct stimulus and bolstered the unemployment programs, peop
by TAForObvReasons 6y ago
The Fed pushed a ton of money in a very inefficient manner. If congress approved another round of direct stimulus and bolstered the unemployment programs, people who are now struggling would have funds to make ends meet and could stimulate the economy.
Instead, by purchasing large amounts of junk bonds, the Fed basically backstopped Wall Street, leading to the all-time highs in the stock market indices. The stock market completely decoupled from the economic reality on main street
- kmonsen 6y agoI just posted the same as you. Just a minor comment, I do not believe this is inefficient, but their target is not the economy but the rich. There is no way an economist does not know what you said.
- TAForObvReasons 6y agoIt's arguably inefficient from the perspective of the dual mandate (price stability and maximum sustainable employment), but what the fed did would be efficient under the view that employment is too high to be sustainable.
- vkou 6y agoThat makes sense on a macro-economic level, but is an absolutely insane policy in a country with so few safety nets.
- deleted 6y ago[deleted]
- the-dude 6y agoIsn't this true since the GFC? ( 2008 ) I had friends 'in the market' who felt the rebounds after 9/11 were suspect already.