A v-shaped recovery is increasingly unlikely.
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Half of Americans have literally no connection to the stock market.
No pension, no 401k, no stocks, no bonds.
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At this point, separate. Was a time when the two were correlated. But it is like any betting system; when folks start acting based on the metric, it changes the measurements.
I hate to be a buzzkill, but I foresee widespread bankruptcy of small businesses & small property owners. The buyers will be these rich people & conglomerates who have the capital to snap up bargains.
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It’s time for the dems to get in board with modern monetary theory. It’s likely the only way we’ll be able to get through this without gutting social programs.
MMT or austerity. Take your pick.
Now I lay me down to sleep,
I pray to Trump my wealth to keep,
If minorities should die before I wake,
Too bad!
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Yes, I’ve heard that…what a load of fertilizer! In fact, I don’t think it’s ever been true. It was a convenient hypocrisy used to beat upon Democrats/Liberals when Democrats/Liberals were in power.
I can recall Republicans saying we were burdening our children with an unsupportable amount of debt. Remember that deficit clock that listed how much the deficit was growing numerically? Where is that now? ‘If a conservative’s lips are moving, watch whose pockets their hands are picking.’ is my watchword.
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We are all going to “L”.
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It’s a real Jim Dandy!
The Fed’s saddle-ʼem-with-more-debt approach is premised on a sharp and rapid recovery.
Oh, sounds like a smart bet to make; donnie has promised such a recovery, and it’s always smart to rely on his promises.
Not that how this bet turns out will matter to the set of Americans who actually, well, matter - as the article goes on to point out, the investor class will be well guarded regardless of which way this goes. And the rest of us can suck an egg.
Well, at least the starving masses will have the greatest president ever to comfort them while they starve. And 33-43% of them will apparently be happy with that trade-off.
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thanks for this excellent explainer.
Up until now, I did not understand why the stock market was “rallying”. I was only marginally aware that the Fed was going to buy non-government debt – and completely unaware that it would buy junk-grade debt. This piece lays out why the US economy is going down the toilet, while the economic Potemkin Village of the stock market is doing just fine
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Massive inequality, millions suddenly finding themselves with tons of spare time, and a host of PE companies with more (flammable) assets than there are grains of sand on every beach around every star.
I think we’ve seen this movie before.
And this is supposed to be a shock?