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Will the Fed save Americans, again?

mogley98mogley98 Member Posts: 17,610 ✭✭✭✭
No one knows exactly what the markets will do.
 I think most people agree that the current situation is at least in part fueled by easy money, low cost credit, and Federal stimulus.
I tend to think foreign investment due to negative rates elsewhere and all the IRA and 401K money that has to go somewhere is also fueling the market. Even if stocks are pricey compared to the past with no where else for money to go maybe the norm.
Look at Hertz it hasn't made any money for several years before the pandemic, and is on its death bed but people were running the stock up. Hertz had to be confused and tried selling a billion dollars in new stock before the SEC stepped in! LOL

Everybody is in the market making a mint, people are assuming you can't lose. I have no data to show it but I would even assume with such low rates buyers may even be heavily leveraged to extend their profits.

Does all this obligate the Fed to come to the rescue again if and when the bottom were to drop out? I mean they rescued all those mortgages in 2008, Savings and Loans in years prior, and trillions for Corona Virus.
It seems regardless of fundamentals or actual business value everything keeps gaining. Perhaps the deeper you are in the better off you are. Imagine if they wipe out college debt how pizzed the people who paid theirs will be, similarly when Mortgages got a break those who paid their had to be a little miffed. If Uncle Sam bails out the IRA and 401Ks if they take a hit anyone not in the market would also stand to "lose out" on the freebie recovery.
Me I am too old, too poor and too scared to invest in anything but low debt, dividend paying boring blue chips and even those seem to be at lofty valuations.
Why don't we go to school and work on the weekends and take the week off!

Comments

  • spasmcreeksrunspasmcreeksrun Member Posts: 1,589 ✭✭✭
    how the hell do you save America by upping the debt by trillions ???????? i wouldn't up my debt by thousands
  • US Military GuyUS Military Guy Member Posts: 3,242 ✭✭✭
  • select-fireselect-fire Member Posts: 62,768 ✭✭✭✭
    Going to be a lot of sad folks this Oct. when the market tanks starting 4th quarter.
  • BobJudyBobJudy Member Posts: 2,140 ✭✭✭✭
    how the hell do you save America by upping the debt by trillions ???????? i wouldn't up my debt by thousands
    I wouldn't increase mine either. Unlike the government we don't have taxpayers to pay off our debt. If the dems get in power they will take a lot more of what you and I have and brag about less deficit. They don't believe we have a spending problem just a revenue problem. By taxing us into poverty they will eliminate what little is left of the middle class. Bob
  • mogley98mogley98 Member Posts: 17,610 ✭✭✭✭
    "Again"?

    They have bailed out Americans a number of times so yes Again
    Why don't we go to school and work on the weekends and take the week off!
  • mogley98mogley98 Member Posts: 17,610 ✭✭✭✭
    Going to be a lot of sad folks this Oct. when the market tanks starting 4th quarter.

    What makes you think that will happen?


    Why don't we go to school and work on the weekends and take the week off!
  • mogley98mogley98 Member Posts: 17,610 ✭✭✭✭
    Most of the Socialist enclaves are 50% Tax or higher we will most likely end up there.
    Why don't we go to school and work on the weekends and take the week off!
  • select-fireselect-fire Member Posts: 62,768 ✭✭✭✭
    mogley98 said:
    Going to be a lot of sad folks this Oct. when the market tanks starting 4th quarter.

    What makes you think that will happen?


    Before Election Day 2020 you could see a collapse giving the Dems the clear advantage to get elected. Another round of virus or an intentional swing in stocks .

  • chiefrchiefr Member Posts: 10,992 ✭✭✭✭
    mogley98 said:
    Going to be a lot of sad folks this Oct. when the market tanks starting 4th quarter.

    What makes you think that will happen?


    Before Election Day 2020 you could see a collapse giving the Dems the clear advantage to get elected. Another round of virus or an intentional swing in stocks .

    Happened before in history, when the Bolshevics and Mao came in power.  All debt was declared forgiven by dictatorial edict.
    Debt forgiveness goes back to the ancient Romans and Greeks. 

    Debt forgiveness usually comes at a price.....loss of markets, capitalism, freedom. Communists and socialists did not have to raise taxes. They just seized private property and states entire means of production. DEMOCRATs have a similar plan if they gain power. 
  • brier-49brier-49 Member Posts: 6,327 ✭✭✭
    The Fed is the main reason for most of Americas problem

  • Smitty500magSmitty500mag Member Posts: 12,894 ✭✭✭✭
    edited June 24
    Biden gave us the answer years ago. All we have to do is spend our way out of debt. I don't see the problem. Uncle Joe knows how to do it. And if that don't work just go out on your back porch and shoot your shotgun up in the air a couple of times. I think? Or was that for something else?? 
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