"Fed to Start Buying Stocks"?

Discussion in 'Political Opinions & Beliefs' started by bringiton, Mar 31, 2020.

  1. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    How, exactly, would taking less from working people create a "full blown largest depression"
     
    squidward likes this.
  2. squidward

    squidward Banned

    Joined:
    Jan 23, 2009
    Messages:
    35,889
    Likes Received:
    8,758
    Trophy Points:
    113
    I guess this poster will be sending her stimulus check back, to help prevent a "full blown largest depression"
     
    Doofenshmirtz likes this.
  3. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    Ha! Just write "Not my president" and return to sender!
     
    squidward likes this.
  4. dairyair

    dairyair Well-Known Member

    Joined:
    Dec 20, 2010
    Messages:
    50,204
    Likes Received:
    7,025
    Trophy Points:
    113
    We may find out shortly.
    $2.2T bailout. NOt taking less from people, giving them free money.

    Why take less if one is just going to give them free money to avoid a full blown recession?
     
  5. dairyair

    dairyair Well-Known Member

    Joined:
    Dec 20, 2010
    Messages:
    50,204
    Likes Received:
    7,025
    Trophy Points:
    113
    My. Look at all the new socialists. Loving gov't free money.
     
  6. squidward

    squidward Banned

    Joined:
    Jan 23, 2009
    Messages:
    35,889
    Likes Received:
    8,758
    Trophy Points:
    113
    I'm not getting any.
    She swings,....... she misses
     
  7. dairyair

    dairyair Well-Known Member

    Joined:
    Dec 20, 2010
    Messages:
    50,204
    Likes Received:
    7,025
    Trophy Points:
    113
    illegal immigrant are you, ma'am?
    Or a dependent on someone else's taxes, miss.
     
  8. squidward

    squidward Banned

    Joined:
    Jan 23, 2009
    Messages:
    35,889
    Likes Received:
    8,758
    Trophy Points:
    113
    My income disqualifies me ;-)
     
  9. modernpaladin

    modernpaladin Well-Known Member Donor

    Joined:
    Apr 23, 2017
    Messages:
    13,448
    Likes Received:
    9,014
    Trophy Points:
    113
    Gender:
    Male
    As I understand it, the Fed is essentially financing the purchase of these stock for the Treasury. So, essentially, FedGov takes ownership of them. Which is also known as nationalizing them...

    It also may mean the Fed is actually Federal now. The word is that Fed is being merged with Treasury. Thats the only way this thing is legal.
     
  10. squidward

    squidward Banned

    Joined:
    Jan 23, 2009
    Messages:
    35,889
    Likes Received:
    8,758
    Trophy Points:
    113
    That's not legal either.
    The FED can't even lend to the treasury directly. It does so via the gov's primary bond dealers, of which there are six and are large wall street banks. They sell treasuries to each other, collect commissions for the sale, then the FED gives them cash and takes the bonds off their books and puts them on the FED's books. The FED has been buying complete tranches of bonds that were auctioned by the treasury just days prior.
    It has been doing this since fall. The bond dealers are making a killing in commissions courtesy of the taxpayers, for doing nothing
     
    bringiton likes this.
  11. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    There is no such thing as free money. Any dollar the government doesn't forcefully confiscate will be spent, saved, or invested. The least responsible tax payer is still better than the most responsible politician!
     
  12. dairyair

    dairyair Well-Known Member

    Joined:
    Dec 20, 2010
    Messages:
    50,204
    Likes Received:
    7,025
    Trophy Points:
    113
    Of course there is.
    $2.2T. It's free.
    Prove it is NOT.
     
  13. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    Easy. Where did they get the money?
     
    RodB likes this.
  14. RodB

    RodB Well-Known Member Past Donor

    Joined:
    Apr 29, 2015
    Messages:
    11,884
    Likes Received:
    5,252
    Trophy Points:
    113
    Gender:
    Male
    Probably borrow it from China and Japan!
     
    Doofenshmirtz likes this.
  15. dairyair

    dairyair Well-Known Member

    Joined:
    Dec 20, 2010
    Messages:
    50,204
    Likes Received:
    7,025
    Trophy Points:
    113
    They didn't.
    They just gave it.

    Where do you think they got the money?
     
  16. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    They stole it from my grand kids.
     
  17. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    4,909
    Likes Received:
    330
    Trophy Points:
    83
    Yeah, grossly overpaying the super-duper uber-rich for their bubble assets is a sweet way to blame "nationalization" for the resulting fascist kleptocracy.
     
  18. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    4,909
    Likes Received:
    330
    Trophy Points:
    83
    They created it.
     
    modernpaladin likes this.
  19. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    4,909
    Likes Received:
    330
    Trophy Points:
    83
    You don't understand how a monetary sovereign works. Google MMT and start reading.
     
  20. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    You mean like magic?
     
  21. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    4,909
    Likes Received:
    330
    Trophy Points:
    83
    I mean like accounting entries. Private commercial banks create money as liabilities in return for new loan assets. The Fed is doing it in return for the super-duper uber-rich's stocks and bonds. The only difference is that the stocks and bonds are existing assets, not new ones, so their previous owners get the dough.
     
    Last edited: Apr 9, 2020
  22. Doofenshmirtz

    Doofenshmirtz Well-Known Member Donor

    Joined:
    Jan 21, 2016
    Messages:
    11,056
    Likes Received:
    6,976
    Trophy Points:
    113
    Oh, so they borrowed it. Where are they going to get the money to pay it back? Are you buying treasury bonds?
     
  23. bringiton

    bringiton Well-Known Member

    Joined:
    Mar 11, 2016
    Messages:
    4,909
    Likes Received:
    330
    Trophy Points:
    83
    <sigh> Can't you read? They didn't borrow it. They created it. No one else had it before they did. I'm not sure there is any clearer or simpler way to explain that to you.
    THEY ALREADY CREATED IT.
    No, because the Fed is going to crash them with high interest rates before selling them back to the super-duper uber-rich.
     
  24. modernpaladin

    modernpaladin Well-Known Member Donor

    Joined:
    Apr 23, 2017
    Messages:
    13,448
    Likes Received:
    9,014
    Trophy Points:
    113
    Gender:
    Male
    Like a Xerox.

    Its a 'tax credit advance.' We'll be paying it back via inflation.
     
    Last edited: Apr 9, 2020
    Doofenshmirtz likes this.
  25. modernpaladin

    modernpaladin Well-Known Member Donor

    Joined:
    Apr 23, 2017
    Messages:
    13,448
    Likes Received:
    9,014
    Trophy Points:
    113
    Gender:
    Male
    It could also be called socialization. There isn't a meaningful difference...
     
    Doofenshmirtz likes this.

Share This Page