Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

i keep hearing how the Federal Reserve "keeps providing stimulus to the markets"....how does it do that exactly?

and how often? like today the stock market was really down, and then suddenly it is going back up again, and i have noticed this happen on a number of days that looked like they were going to be disasters, but i was wondering, why people just repeat like parrots "the Fed has investors backs"....what does that mean really? how do they do it? how often?

3 Answers

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  • 1 month ago
    Favorite Answer

    It does that by printing more paper money and loaning it out to people. It provides a temporary stimulus in other words it fools people into believing that they are financially okay for a couple of more days but the truth is the truth we are so far in debt we are headed at great speed toward a collision with the ground! And there is no way to stop it! with every single stimulus and freebie that is giving out the entire United States accelerates the speed at which we are approaching a death collision. When they put out a freebie or a stimulus it makes everything okay for a few days. And then you'll notice things go back to looking bad. so they throw out another freebie or another stimulus. And the time between looking good and going back to realizing you're in trouble is shorter each and every time haven't you noticed that.

    The time is going to come very shortly when people wake up and realize my money is totally valueless! Haven't you noticed that the price in McDonald's and Burger King has risen by $2.50 in just the last couple of months. Haven't you noticed that the price of silver has tripled in just the last couple of months that means that your American dollar has lost two-thirds of its value! We are a runaway train heading at breakneck speed to a death collision! 

  • Fred G
    Lv 4
    1 month ago

    I agree with the first answer.. Much of the excess created out of thin air end money ends up in the US stock market. From countries around the world too.. Eventually this is going to bite everyone big time.. It's a house of cards..

  • Lv 7
    1 month ago

    i think the Fed is just letting its biggest member banks create money and invest directly into the stock market at their own whim

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