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However, when share prices go backwards, governments start stimulating the economy, lowering interest rates, spending and increasing debt. Asset prices rise ag
by kristianp 2y ago
However, when share prices go backwards, governments start stimulating the economy, lowering interest rates, spending and increasing debt. Asset prices rise again and debt, both government and private continues to increase.
- rrrrrrrrrrrryan 2y agoWell in a downturn debt usually gets cycled from private holdings to public holdings. After the economy rights itself, governments should be eager to unwind their positions, but this doesn't always happen. The Fed has been doing some quantitative tightening for a while, and if we're now entering a proper recession, we'll soon get to see if they reloaded enough bullets.