Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

could the stock market realistically be crashing, but at the same time new Fed. "stimulus" money is being pumped in keeping more level?

Update:

how does this work exactly? and when did it become blatantly clear to people that this was happening? is the Fed. even buying stocks on the stock market directly now?  could it be crashing, for example this morning due to no deal on stimulus, but because the FED is pumping billions of dollars into falling stock prices, it is remaining level and even rallying a bit? is this what has been happening ALL YEAR maybe?

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  • 1 month ago
    Favorite Answer

    Certainly possible.

    Just as it is possible that the Fed's $4.5 Trillion of Quantitative Easing was the real reason we even had a recovery during the Obama years.

  • 1 month ago

    No.  Because "crashing" means for the prices to be dropping.  If they are being kept level, that means they are not "crashing".

    It is realistically possible that it would be crashing if the Fed wasn't doing what it is doing -- but that would still mean that it is not crashing because of what the Fed is doing.

  • 1 month ago

    The "Fed" DOES NOT and CANNOT buy socks

  • Anonymous
    1 month ago

    The fed is not buying billions of stocks.

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  • 1 month ago

    The stock market is up 50% since Trump took office that doesn't seem like crashing to me.

  • 1 month ago

    The explanation I like is that the stock market is about investing in the near future.  Investors are putting their money in the stock market because they know it will do a lot better when the pandemic is over.  Unemployment will still be high, but unemployment has not been a leading economic indicator for some time now.  Neither, apparently, is the growth of the national debt.

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