At the end of this we may have been able to eliminate all student and medical debt, reduced the amount of hungry students, provided a real boost to the working poor, and other much needed infrastructure improvements with the amount of money we are lobbing at the markets.
Yes, but if the rich people only make $100million each this year instead of $200million, then they will definitely get discouraged and give up on capitalism altogether, which will wipe humanity from the universe permanently.
So not only does the market know the FED will bail them out no matter what. Now they've removed all reserve requirements for member banks.
So no matter how much chicanery, fraud, and losses they pile up they're covered. But when it comes to average Americans well we can all get fuuucked. This is America.
banks are getting a free pass for mismanagement while min wage employees are getting fucked in the corn hole for not overcoming a lack of generational wealth before they were asked to support themselves.
What's it solve, though? Doesn't seem to make a difference. Instead of this, the money should still be directed to healthcare at this time, even if it doesn't fall back to the Fed. Now isn't the time to focus on the market, one that's supposed to be "free" anyway. If it's so free, let it crumble.
So you lend money to the sick and ask them to repay back tomorrow? This is so retarded lol
It solves for companies that have liquidity issues. That means cash, say they have a loan repayment due but no cash because no one is spending on their products and services, what happens is they pawn off their bonds in return for cash so they can make said repayments. Maybe tomorrow they get cashflow from somewhere, who knows, they then return the cash and the Fed returns their collateral.
This is specially important when you’ve got margin calls that you have to pay immediately. It’s to solve cashflow issues and keep firms solvent.
The Fed doesn’t work like that. They don’t say oh hey let’s buy Tesla this week and invest in Housing next. Market is down let’s build some hospitals. No
It’s so banks have liquidity so they can lend to small businesses and people trying to stay afloat. 2008 was so bad because liquidity stopped. Companies had no money to function at all. Meaning all that food that has to be restocked at the super markets doesn’t happen with out the company being able to borrow to pay their work force. This loans get paid back after you buy food.
If they don’t constantly pump repo what little business there is left is 100% gone and then you rely 100% of you life on the government. You want that?
Volkswagens1Owns the sexy firefighter calendar, also Mr. March1 week ago
We don’t need healthcare. Never have. Never will. America is so damn healthy. Nothing could phase us.
Remember that electing Bernie Sanders would ruin all these wonderful companies. Yet they are getting trillions of our money and have had a wonderful 3 years and cannot survive a couple weeks? This means they are not that amazing and WE THE PEOPLE do have power as one.
Well I learned this week that we cannot depend on the Democrats to do it. The Bill is just lacking. Politics is the same as the companies leveraging this virus to gain market share. The Bill is needed, but the ability for a company with over 500 to not have to do it is horrible. Then they loophole that allows a small business to be exempt if they have under 50 employees is harsh. We see them brag about accomplishments that really just help a few. My Governor got praise for protecting renters, home owners. Yet the reporters are not saying that those protections are an option. My business is halted, people have not paid their invoices but you can bet your ass that I will be paying rent in a couple weeks. My landlord can't afford to live without it. I would assume she would evict and the Governors order allow for that option. It is almost worse saying those things because you can bet some people just hear they do not have to pay their rent. They won't and it will be an issue.
I do have a savings account. I have one credit card that is secured in case I need to go where a card is required. I lost everything in 08-10 so I have been the poor. No one helped me, lost my home, American Express Centurion card shut off and threatened with debtor jail over the last 10 years. I am totally aware that the bottom will fall out and no one is going to help the middle or lower class. I was kind of wealthy and no one helped me. Shit the poorer I got the more social distance people took with me.
What I do have is love. Love for my family and neighbors. If you need something let me know. I do not have much but know people not the Goverment will help us get through this.
These are short term collateralized loans. The fed digitally creates the money, pumps it into the system, and then destroys it when it’s paid back. Not one dime comes out of the treasury.
In other words, this move in no way effects any bailout for the us.
Okay, that's a good argument for fiscal policy. That's not what the Fed can do, it's not within their power. What they can do is trade 500 billion dollars in cash for 500 billion dollars in Treasury securities.
That's not how this works they are short term loans the government gets interest on. It costs nothing. Just stops banks and credit markets from seizing up. Basically banks are afraid lend to each other because they are afraid the counter party will go under. So the Fed is giving them the loans so they don't have to worry and can operate normally.
I completely get where you are coming from. Liquidity is important to the whole economy. What we need to worry about is bailing out individual businesses. After the last tax cut tons of corperations started buying back their own shares of company stock. Which also coincided with executives selling tons of stock. So companies executives got rich buy having their own companies buy their shares of stock back. Now we are in a crisis and these same companies won't have as much cash on hand because they spent it on stock and the execs that got rich are going to say they need a bailout because their business is vital to the economy.
And guess what they can go get fucked just like the rest of us. The airlines spent 97% of free cash flow buying their own stock to inflate asset values. Let them go bankrupt the damage to the economy be damned or just fucking nationalize them. This shit is ridiculous at this point. This is absolutely corporate socialism. I garuntee its exactly the same across corporate America.
exactly my sentiments. Why do large corporations get bailouts when they are unable to sustain business during a recession? Isn't that what our economic model is all about - if you can't survive, you die?
>The federal reserve is very much an independent central bank.
Was. It was independent.
Trump doesn't respect institutions and hates the idea that they'd be independent. It doesn't matter whether it is the DoJ or the Fed, he has broken those barriers.
In 2008 the United States Congress passed—and then-President George W. Bush signed—the Economic Stimulus Act of 2008, a $152 billion stimulus designed to help stave off a recession. The bill primarily consisted of $600 tax rebates to low and middle income Americans.
Honestly that wiki page is pretty sparse and it's missing a bunch of info, but it at least mentioned the tax breaks.
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