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/biz/ - Business & Finance


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18190497 No.18190497 [Reply] [Original]

Bros, I need help understanding how the broader picture works here. In 2008 the Fed owned 600 billion worth of securities, in 2014 that number went up to 4.4 trillion. With all of this money printer go brrrrr bullshit because of the virus, the stock market could see an even larger percentage propped up directly by the Fed. How is the not just gommunism with extra steps? Is all of the "growth" we've seen the last 12 years just bullshit pulled out of the Feds as trying to prop up a doomed economy or am I missing something here?
Theoretically, the Fed could go bankrupt if Q1 reports hit the market hard enough right?

>> No.18190548

>>18190497
You were right up until the Fed going bankrupt. They can never go bankrupt, they spend money into existence. You just get terrible quasi-state companies that aren't subject to competive pressure and one class of people that works for wages, and another that exists just by owning assets.

>> No.18190554

>How is the not just gommunism with extra steps?
Because were not entitled to free college and healthcare and a 40 hour work week

>> No.18190558

Bobo - yes
Mumu - no
objectively - no one knows

>> No.18190576

>>18190548
>one class of people that works for wages, and another that exists just by owning assets.

>> No.18190608

>>18190548
So plummetting stocks just cause more inflation as QE continues? At some point this has to become completely unstable though, surely you can't just keep wages stagnated and force prices up. Is there no "break" point at which QE would just collapse the country?

>> No.18190613
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18190613

*2000

>> No.18190676
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18190676

Stocks will not buy you more gold than in 2000. Gold is money. Dollar is dollar.

>> No.18190770

>>18190613
I don't understand, is this showing that gold no longer goes up with the economy which means the dollar is devalued?

>> No.18190830

>>18190608
america's collapse has already been priced in. Buy now!

>> No.18190874

>>18190608
That's what I am leaning towards, but they've kept it afloat this long. I'm starting to think I'm the fool for betting against the trend.

Maybe everyone will wake up from the shared delusion but I doubt it. The wealth effect is real.

>>18190770
it just shows that when denominated in dollars, there is growth, but when denominated in gold, there is not.

>> No.18190910
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18190910

It's corporate welfare. The fed's mandate is to: "maximize employment, stabilize prices, and moderate long-term interest rates". They've done a good job of maximizing employment - there's enough money to go around to employ people in bullshit jobs. I suppose that could be considered "communist" in a sense, since their money does end up in the hands of everyday people, it just goes thru a corporate sieve first. Interest rates have been stable. The downside is obviously skyrocketing asset prices (homes, stonks), which is where people have gotten poorer. I actually don't think their 2008 actions have made life worse for the average amerifat. No one's starving in the US. There are opportunities for most people to buy stonks, and sometimes homes. People are too busy slaving away to foment social unrest.

As far as what the last 10 years would look like without their cheap money? I think austerity policies would have been worse. Look at europe.

I'm not sure how the fed goes bankrupt. They can buy as much garbage as they want. They'll simply lose credibility.

2020+ is a brave new world with new rules

>> No.18190961

>>18190770
It shows that if you sell sp500 stocks you can't buy as much gold as you would have in 2000.
Same amount of sp500 stocks converted to gold, different years.
Tech companies crushed US economy.

>> No.18190993

>>18190874
What is the downside to QE at this point? Seems like you just keep pumping every time the stock market goes bear. It will keep companies afloat in the near future but, long term profits will slump as the middle class and the poor have less and less buying power which in-turn leads to more QE. It's just a short term money making scheme that will end badly for all parties involved except the wealthy who keep their companies afloat through QE. I wonder if rather than a major happening causing an obvious and substantial collapse we will just gradually decline into Brazil tier favelas and endless revolutions.

>> No.18191016

>>18190497
>the Fed could go bankrupt
It litterally can't.
What will likely happen tho is that the dollars that thye loan to the government will lose the value.

>How is the not just gommunism with extra steps?
It's not.
You have money and private property.
This is either socialism, or national socialism economics.
Like, we have fiat money, a mixed economy.. This is what the Nazis did economically.
Just leave the social side alone, the rest is already here.

>>18190676
As is Bitcoin.

>> No.18191052
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18191052

>>18190993

With infinite QE we'll have a zombie economy that looks more like Japan's that Brazil

>> No.18191103

>>18190910
>>18191052
Not really familiar with Japan's economy, figured they were pretty similar to the US. Living expenses are insane there, no? 60 hour work weeks to pay rent, work based culture etc. Sounds like hell, was it caused by what we're doing right now?

>> No.18191163
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18191163

>>18190497
We alrdy are living in a communisto-bolcheviko-noahido-talmudic nightmare where few jewish families basically own the new world order.
Glad you finally opened your eyes fren, enjoy the awful ride.

>> No.18191178

>>18190993
Poorfags are happy because their stocks and home values go up as well. They're focused on the nominal amount rather than the real value of the asset.

>> No.18191197

>>18191052
Yee-claw

>> No.18191200

>>18190497
>Did the American Economy Die in 2008?
Its died MANY times, the 1930's was the true death, but then on the third day it was resurrected, but unlike JC, it did not die for the past & future sins (debts). They continue on.

>> No.18191275

>>18191103

no growth, high COL, negative interest rates, zombie companies that would die if not for nationalization of the stock market (bank of japan, the fed analogue, owns most of the stock), lots of old people bc no one wants to have kids. i suspect that could be because there are too many people there tho.

after their market crashed they tried to pump it with the central bank buying most stonks. its been on life support since 89. does this look normal to you? https://www.macrotrends.net/2593/nikkei-225-index-historical-chart-data

>> No.18191331

>>18190497
America is USSR tier now.
Capitalism died after the great depression.

>> No.18191378
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18191378

>>18191275
Holy shit, that's fuckin spooky, complete stagnation. Why are people so complacent and not rioting in the streets?

>> No.18191416

>>18191378
people almost never riot unless they are starving.

>> No.18191425

>>18191275
Also, why is it that our market continued to go up since 2008 if we were nationalizing companies at a higher rate? Shouldn't we have stagnated like the Nikkei?

>> No.18191473

>>18191425
The US economy is completely distorted, just like in the Soviet Union.
Much of what people see on economic charts is an illusion.

>> No.18191524

>>18191378
cuz japanese are trained to be obedient little cucks. usa isn’t far off either. more and more pussy government boot lickers with each generation.

>> No.18191608
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18191608

>>18191524
sounds like you need to go clean your room goy

>> No.18191708

>>18191052
yee-claw

>> No.18191818

>>18191425

we never nationalized any companies. the federal reserve never bought anything on the open market, though that's going to change for the bond market.

>> No.18191916

Is America the ultimate bull trap?