Read this from Atrios, then join be below for a chat:
I got nothin’
I suppose I really don’t. It’s a horrible situation and even the supposed “good guys” at the federal level, who don’t run things entirely but who aren’t entirely powerless, have shown no signs of having any sense of the catastrophe that is unfolding. “No one” panics unless stonks are tanking, and the Fed is making sure that doesn’t happen.As long as “the market” is happy, rich people are happy, “everybody” is happy.
Ok, up to a point.
The Fed has a couple of tools in its toolbox. It can slash interest rates down to zero thereby allowing companies to borrow money for free (and use that money for (a) building factories and employing people…or (b) dividends!! Huzzah!). The Fed could also print money. Thereby forcing Jeff Bezos to build a bigger money warehouse.
Anyway, the Fed’s hocus-pocus can only keep the DJIA happy for so long because eventually the listed companies will have to sell something of value to actual customers who are both (a) not dead, and (b) not broke. Both “a” and “b” need to be in place for any actual value to be built in the markets. Everything else is just accounting.
It is just a matter of time until we get to see Larry Kudlow have an on screen, spastic, frothing at the mouth, breakdown.