Fed Is The New Market - Rolling Stone Flashcards

1
Q

Without the central bank flooding money into the market, what percentage of value would stock market lose?

JP Morgan analyst told investors “ we expect S&P 500 to rebound as long as _________ are sustained.

A

30%

Monetary measures.

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2
Q

The Cares act is a __________ of american capitalism.

It retains the ______ of the market yet protects the _______ _______.

For the investor class, what is written out of the capitalist bargain?

Which central bank governor created this strategy (when) and what is it now called?

A

Radical rethink

Cruelties. Investor class.

Failure.

Alan Greenspan in 87 and the Greenspan put.

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3
Q

What is the Greenspan put?

These liquidity injections lead to investors putting their money where? Why is money diverted to these asset classes?

When these asset bubbles burst, policy makers thought it was laughable to bail who out? But decided to provide big businesses with loans and take what off their balance sheets?

A

The idea that the central bank will bail out market participants indulging in risky behavior.

Risky stocks, commodities and housing because low interest rates hurt savers.

The people

Bad investments.

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4
Q

The democrats argue that the CARES act is different from the bailout in 09 , why? Why is this attitude wrong and due to what loophole?

Who is deemed the market now?

This crisis showed us that which groups of people are the real drivers of the economy? But we haven’t seen the fed bail them out by spending on what types of packages? This choice is an example of the fact that what ideology still traverses economic policy making in the US?

A

Because the money is going to the people and only 500 billion is technically going to big businesses.

The 400 billion for a SPV to backstop more loans from the FED, which can be levered up to 4 trillion.

The federal reserve.

Low waged workers such as grocery clerks, delivery drivers, at home health aids.

Universal healthcare, sick leave, jobs programs.

Trickle down economics.

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5
Q

Currently, due to actions by the fed, record projections are being made for the stock market. However, there are no projections for ____ _____.

A

The people.

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