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Most likely to do with this: https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1 A bunch of money gets dispensed, mostly to the rich c
by bufferoverflow 6y ago
Most likely to do with this:
https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1
A bunch of money gets dispensed, mostly to the rich corporations. Instead of helping their employees they dump it into stocks of quality companies.
- kortilla 6y agoThat doesn’t make sense. If it just went to rich corporations, it wouldn’t have gone into Tesla, which is considered massively overvalued by all of these traditional companies.
- garmaine 6y agoSome of it did. But that's missing what he's saying. The Fed injected a shit-ton of money into the economy last year, mostly through PPP forgivable loans. This money was supposed to go to the most vulnerable small businesses, but we now know it largely went to the big guys. They used the money to pay for salaries, as per the requirements of the "loan," but that offset money which they would have used for salaries, which instead got funneled into savings and largely put onto the market. What stocks did people buy last year with this money? TSLA, AAPL, etc. There was also a large amount of stimulus checks and unemployment bonuses that went to the same destination. Hence RobinHood having a record year. That's unrelated and somewhat contrary to the feds-bailing-out-big-business narrative though.