Fed Considers Buying Stocks

[Russlenat]

this is just crazy and it is only a matter of time before the whole house of cards comes crashing down.

Yes it is crazy!
But it will happen,one way or the other!
The ECB is also takling about that option! I mean they are already buying corporate bonds! Who gives a damn that they are creating competitve advantages to certain companies with that kind of action?!
Jesus let it rain some brain please!!

They are buying the corporate bonds. But if they buy the stocks, that will big problems in the sotck market.

[Shady]

Never would imagine this to be a bad idea, but the reality of all this would surely spark curiosity on the effectiveness of this whole scenario.

In all honesty there tends to be success to pull around the economy, although currently the US is trying to compete with other global markets to withstand the participation worldwide.

At least they're trying, like with all American politics let's hope this works.

[OgNasty]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

[BobK71]

Never would imagine this to be a bad idea, but the reality of all this would surely spark curiosity on the effectiveness of this whole scenario.

In all honesty there tends to be success to pull around the economy, although currently the US is trying to compete with other global markets to withstand the participation worldwide.

At least they're trying, like with all American politics let's hope this works.

In terms of 'helping' the economy, the elites really have one trick: issue and prop up paper assets.

The problem with doing more and more of this is that the economy will become increasingly centrally planned rather than market-based.

Even if there is no political or market rebellion, or market crashes due to badly managed fragility, this would eventually (if allowed to run too long) create a neo-feudal society.

[BobK71]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

That SOMA holding looks like a bond portfolio.  More than 95% of the net earnings from the holding is interest...

The Swiss National Bank has purchased US equities.  I don't think the Fed has, yet.

[aesma]

Here's a funny thought. Will you all be happy if the Federal Reserve declares that Bitcoin might be a good investment and announce that they are buying and will be holding for the long term?

What would it mean for Bitcoin and the Bitcoin economy if "money can literally be printed" into the Bitcoin market now?

Well, Bitcoin can't be printed, that's the thing. Dollars, and stock, can be. Bitcoin has to be mined, and has a hard limit.

[Yakamoto]

Never would imagine this to be a bad idea, but the reality of all this would surely spark curiosity on the effectiveness of this whole scenario.

In all honesty there tends to be success to pull around the economy, although currently the US is trying to compete with other global markets to withstand the participation worldwide.

At least they're trying, like with all American politics let's hope this works.

This would do basically next to nothing to help the economy, and would likely just be a net negative over the longer term. If the fed starts to buy stocks they're doing so to keep the stock market from collapsing, meaning that the economy is bad and it likely will remain bad until it finally gets to cycle through. This also artificially adds even more money to the economy, however it is less detrimental than direct monetary inflation (hypothetically).

[Russlenat]

Here's a funny thought. Will you all be happy if the Federal Reserve declares that Bitcoin might be a good investment and announce that they are buying and will be holding for the long term?

What would it mean for Bitcoin and the Bitcoin economy if "money can literally be printed" into the Bitcoin market now?

Well, Bitcoin can't be printed, that's the thing. Dollars, and stock, can be. Bitcoin has to be mined, and has a hard limit.

That is right. That means the bitcoin price will rise again and again against the fiat or the stock markets.

[Shiroslullaby]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

That's actually really interesting, I didn't know that information was available.

I would be interested to know your (OGNasty) or anyone elses opinion on the Fed buying stock.
Is this a necessary diversification of investments, a desperate attempt at stabilization, or something else?

[Pattberry]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

so why do they keep on purchasing huge assets and equities ,what is the core purpose,what ever it is it belong to the nation since they are purchasing it with tax payers money

[pitham1]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

That's actually really interesting, I didn't know that information was available.

I would be interested to know your (OGNasty) or anyone elses opinion on the Fed buying stock.
Is this a necessary diversification of investments, a desperate attempt at stabilization, or something else?

Maximising returns (through diversification) is not an objective of the Fed.
They would be looking at maintaining a stable environment, conducive for growth.

[groll]

Here's a funny thought. Will you all be happy if the Federal Reserve declares that Bitcoin might be a good investment and announce that they are buying and will be holding for the long term?

What would it mean for Bitcoin and the Bitcoin economy if "money can literally be printed" into the Bitcoin market now?

Haha thats totally funny but you have pointed out a huge possibility that will happen if in case dollar regression or dollar will fall face defeat and fall down. Bitcoin may replace dollar it is possible, if not one fiat currency will replace dollar in its throne. But possibly before the regression the FED will buy bitcoins and other digital currencies to be safe from whats going to happen.

[Lintel]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

That's actually really interesting, I didn't know that information was available.

I would be interested to know your (OGNasty) or anyone elses opinion on the Fed buying stock.
Is this a necessary diversification of investments, a desperate attempt at stabilization, or something else?

Maximising returns (through diversification) is not an objective of the Fed.
They would be looking at maintaining a stable environment, conducive for growth.

That is right. The Fed just want to keep the balance in the system and people still have confidence in dollar.

[BobK71]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

That's actually really interesting, I didn't know that information was available.

I would be interested to know your (OGNasty) or anyone elses opinion on the Fed buying stock.
Is this a necessary diversification of investments, a desperate attempt at stabilization, or something else?

As I wrote above, this link doesn't show the Fed has already bought stocks.

What we have is not capitalism but socialism.  It is a 'financial' and not 'economic' type of socialism as in the old USSR.  Only money and other financial assets are controlled by the state (and their allies the banks.)  This makes it possible for the system to pretend to be capitalist, since most people don't understand money, and top economists don't want to look at things the right way.

When this system is strong, the deception works well, as most of the economy, on the surface, works under free supply and demand.  When this system has grown weak (as now,) the elites are forced to tear off the deception and expose its core socialist nature.  If the alternative is market collapse, they would rather make the system more obviously socialist.

This is the core nature of the modern world.

[South Park]

Here's a funny thought. Will you all be happy if the Federal Reserve declares that Bitcoin might be a good investment and announce that they are buying and will be holding for the long term?

What would it mean for Bitcoin and the Bitcoin economy if "money can literally be printed" into the Bitcoin market now?

Unless the Federal Reserve started in the mining business or had access to quantum computing and could mine all the coins immediately then there’s no risk of turning the printing machine in bitcoin

[The Sceptical Chymist]

This isn't exactly new news here.  There was talk years ago of plowing Social Security funds into the stock market--can you imagine the kind of havoc that would wreak when the market crashes?  Government ought to stay away from the stock market.  Unfortunately the US likes to bail out bankers and Wall Street shitheads, thereby destroying the concept of 'free market'.  They're insane.  And you wait if Trump gets elected.  We be screwed, baby.

[MingLee]

Considers buying stocks?  You realize even in their unaudited published numbers they claim to have purchased more than 4 trillion in equities...

https://www.federalreserve.gov/monetarypolicy/bsd-federal-reserve-banks-financial-information-201608.htm

Many believe the real number is >20 trillion dollars...

Knowing the US government, they'll have bought anything and everything to keep businesses (meaning corporations) afloat and get them through tough times. Corporate bonds or not, it's a bad thing for a lot of people. Noticeable signs of a weakening economy and something for economists to keep their eyes on.

[Goms]

I have been hearing for so long that the economy is about to crash, yet we manage to keep afloat. I'm betting we will survive whatever comes.

[South Park]

This isn't exactly new news here.  There was talk years ago of plowing Social Security funds into the stock market--can you imagine the kind of havoc that would wreak when the market crashes?  Government ought to stay away from the stock market.  Unfortunately the US likes to bail out bankers and Wall Street shitheads, thereby destroying the concept of 'free market'.  They're insane.  And you wait if Trump gets elected.  We be screwed, baby.

It is not that the U.S. government likes to rescue bankers and Wall Street, they must save them because they are one and the same, so when they lose a lot of money in the wall street casino the government must save them with public money.

[tee-rex]

The Fed criminals may want to reconsider their decision now and instead of buying stocks rather think about emigrating somewhere in their entirety. Though I don't think they will be welcomed anywhere.