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One thing I don’t understand is this DCF rate is essentially decided by the government. It seems weird to me that all the government needs to do make the stock
by thewarrior 6y ago
One thing I don’t understand is this DCF rate is essentially decided by the government. It seems weird to me that all the government needs to do make the stock holders richer is to drop interest rates to near zero. That seems like creating wealth out of nothing.
- mehrdada 6y agoIt creates money out of nothing, which is distinct from wealth.
- jungturk 6y agoIsn't the asset wealth being created at the expense of interest income from cash holdings (e.g. savings accounts and the like)?
- jas282 6y agoThe Federal Reserve, while chartered by the US Government, is not a Government organ. It's really a bank, and it's owned by it's member banks.