The part were I'm talking about the Fed lowering interest rates and you respond to my question with a list of things that the Fed doesn't do. You don't have to actually type the word f-e-d. You just have to jump into the conversation and continue with the same language.
Dropping rates to zero just didn't seem like it would be helpful to the economy. I feel like the Admin is confusing the Dow with the economy. I didn't game an Econ 101 class, but seems to me that low interest rates don't mean squat if businesses can't pay back loans or dont have cash flow.
I'm calm, the way the government handled this it literally made one of the best stock market opportunities in history to anyone paying attention. The virus doesn't scare me, the markets don't scare me but the willful ignorance of people is horrifying.
I’ll tell you why they did it. To make sure banks stay liquid and can meet the cash requirements of their clients. Liquidity is what keeps the economy going, if the overnight window hadn't gone to zero that could’ve caused a slew of more problems, including some of which we saw in 08-09.
I took your question to mean what can the government as a whole do to stem the economic downturn, so I listed what could be done by congress and the treasury as a whole, in addition to the monetary policy steps taken by the fed already.
Create an account or login to comment
You must be a member in order to leave a comment
Create account
Create an account on our community. It's easy!
Log in
Already have an account? Log in here.
