Quote:
Originally Posted by tophcfa
We will never know where the real bottom of the market is unless the Fed stops artificially supporting it by pumping unprecidented amounts of liquidity into it. A real market is supported by underlying economic fundamentals, not the Fed. There seems to be a very large disconnect between Main St. and Wall St.
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Clearly there are a number of people contributing to this thread that know a hell of a lot more than I do about economics but you have identified the root case of what I think is going to eventually have a devastating impact on this economy and stock market when bill comes due. I have been concerned about the reckless election year stimulus spending for this virus and wondered why with this level of added debt, unemployment skyrocketing at never before seen rate, and people dying from the virus that the stock market is recovering at record rate. The answer is the same reason bank CD's have been paying 1% for years and will continue to do so unless economy crashes altogether. Since 2008 Fed has been enabling and seemingly encouraging congress's complete disregard for national debt. This is not about market fundamentals.Thank you for letting me add my two cents.