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Imagine you have a money printing machine. And the more people you have to turn the cranks on that money printing machine, the more money you'll make. Then ima
by 300bps 4y ago
Imagine you have a money printing machine. And the more people you have to turn the cranks on that money printing machine, the more money you'll make.
Then imagine the Federal Reserve comes along and says, "How would you like a bunch of almost free money?"
The logical thing to do would be to get a bunch of that almost free money and then hire people to crank the heck out of that money printing machine. So that's what they did.
And then the Federal Reserve says, "Party's Over!" and stops giving out the almost-free money. You lay off the bottom performing x% of your entire workforce.
Almost Free Money Party Starts
https://www.cnbc.com/2020/06/29/the-fed-is-buying-some-of-the-biggest-companies-bonds-raising-questions-over-why.html https://www.cnbc.com/2020/06/29/the-fed-is-buying-some-of-th...
Almost Free Money Party Ends
https://www.bloomberg.com/news/articles/2022-03-09/fed-s-biggest-ever-bond-buying-binge-is-drawing-to-a-close https://www.bloomberg.com/news/articles/2022-03-09/fed-s-big...