Do u think stock market will crash again in 2020?
Its clearly not reflecting economic status
36-40, M
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The fed has set interest rates so low they are near zero. That encourages reckless bubbles and binges of borrowing. This near interest-free lending is encouraging non-financial companies to go deeper and deeper into riskier debt ($6.8 trillion and surging).
Fed Chairman, Jerome H. Powell, has chosen to instill "confidence" in the stock markets and credit markets by injecting trillions of dollars into the financial system to reassure the Wall Street speculators that the Covid-19 pandemic won't crash the money markets into chaos and bankruptcies.
[i]The Financial Services Modernization Act of 1999[/i], signed into law by President Bill Clinton in November 1999, repealed large parts of the Glass-Steagall Act, which had separated commercial and investment banking since 1933. That was very unwise and led to the 2008 sub-prime mortgage crash.
Congress has backed away from imposing any meaningful oversight and regulation of the financial industry. The Wall Street swindlers, hedge fund managers, and other rascals were bailed out in 2008-9 for the huge mess they created with credit default swaps, CDO's and other chicanery, with no accountability. It worked out so well for them, they are sure to pull another financial flim-flam scheme in the not too distant future.
Fed Chairman, Jerome H. Powell, has chosen to instill "confidence" in the stock markets and credit markets by injecting trillions of dollars into the financial system to reassure the Wall Street speculators that the Covid-19 pandemic won't crash the money markets into chaos and bankruptcies.
[i]The Financial Services Modernization Act of 1999[/i], signed into law by President Bill Clinton in November 1999, repealed large parts of the Glass-Steagall Act, which had separated commercial and investment banking since 1933. That was very unwise and led to the 2008 sub-prime mortgage crash.
Congress has backed away from imposing any meaningful oversight and regulation of the financial industry. The Wall Street swindlers, hedge fund managers, and other rascals were bailed out in 2008-9 for the huge mess they created with credit default swaps, CDO's and other chicanery, with no accountability. It worked out so well for them, they are sure to pull another financial flim-flam scheme in the not too distant future.
Firstnlastlove · 36-40, M
@badminton agreed sir!
whowasthatmaskedman · 70-79, M
@badminton Essentailly, what you just said is that the American financial sysyem is now running on empty and printing monopoly money. which only works in the game. Up to now most places have been going along with the game. But we both know the cracks are appearing.