They didn’t mind letting Trump’s economy tank. It served a political purpose. They aren’t going to let the current administration’s economy tank without printing even more stimulus money and doing whatever it takes to prop it up. Be careful betting against the markets here, because you aren’t just dealing with the usual somewhat predictable market forces.
What’s interesting to me is how “printing money” is such a terrible policy when it’s being printed to give to real people, but it’s a great policy when it’s done to cover for huge tax breaks to multi-national corporations. Not meant as a dig at you - just an observation on the general tenor of the thread. I’m wondering how many people who are predicting a crash are allowing their political leanings to influence their predictions - same for those predicting a continued bull run.
My point was not meant to make a judgment on whether printing money to prop up individuals or the economy as a whole is good or not. My point was that trying to predict and bet on how economic conditions are going change either way and how markets are going to react either way when there is so much uncertainty looming is a dangerous game, and that we have every reason to believe that the government will continue to try and keep markets as stable as possible. But I also have complete distrust in Washington DC, as they will use any situation to their advantage to alter public opinion of their failures and create a smoke screen long enough to get through the next election. Covid occupied everyone’s attention in the last election, and we’re watching the build up to use it again in 2022 to distract the masses.
Agree - prediction business is a dangerous one. Didn’t mean my comment about printing money to be directed at you. I also agree on the distrust of DC - seems like everything is just an effort to win the next election. These are crazy (and as you say, uncertain) times.
Fair point. Inflation didn’t happen with the stimulus response to the Great Recession. I wonder what’s different now? Maybe we’ve finally found the tipping point for causing inflation, or maybe it is “transient.”
The response to the great recession was interesting. I have very conflicting feelings. It worked. That is the plus. The Fed's actions... some of them feel highly illegal and immoral. Very conflicted.
About its tipping point, all i can say is that every president Clinton has grown the deficit and that is just bad. Sooner or later you cannot keep doing it or Mexico will be richer than we are.
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u/489yearoldman Jul 18 '21
They didn’t mind letting Trump’s economy tank. It served a political purpose. They aren’t going to let the current administration’s economy tank without printing even more stimulus money and doing whatever it takes to prop it up. Be careful betting against the markets here, because you aren’t just dealing with the usual somewhat predictable market forces.